ERO Reliability Risk Priorities Report. Peter Brandien, Reliability Issues Steering Committee Chair WECC Reliability Workshop March 21, 2018

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1 ERO Reliability Risk Priorities Report Peter Brandien, Reliability Issues Steering Committee Chair WECC Reliability Workshop March 21, 2018

2 Reliability Issues Steering Committee (RISC) Background 2

3 RISC Charter Advisory committee that: Provides front-end, high-level leadership on strategic issues important to bulk power system (BPS) reliability; Offers high-level stakeholder leadership engagement; Advises the NERC Board of Trustees (Board), standing committees, staff, regulators, Regional Entities, and stakeholders to establish a common understanding of the scope, priority, and goals for the development of solutions; and Provides framework for steering, developing, formalizing, and organizing recommendations to help NERC and the industry effectively focus their resources. 3

4 RISC Reports The RISC has issued five reports, the first being issued in 2013 All reports are available at following link: o Reports rely on and extend the comprehensive initial assessment and corresponding recommendations made to the NERC Board in February 2013 Current RISC reports are titled ERO Reliability Risk Priorities Report 4

5 Current RISC Members Peter Brandien Mark Ahlstrom Tim Eckel Jeffrey Cook Mark Rothleder Donald Holdsworth Charles King Katherine Prewitt Mark McCulla Nelson Peeler Woody Rickerson Chris Root Chris Shepherd Brian Allen Slocum Carol Chinn Dave Osburn Herb Schrayshuen Patricia Metro Lisa Carrington Andrew Gallo David Zwergel Brian Evans-Mongeon Mike Walker ISO New England NextEra Energy Resources, LLC SaskPower Bonneville Power Administration CAISO Public Service Enterprise Group Kansas City Power & Light Company Southern Company Entergy Duke Energy ERCOT Vermont Electric Power Company NAES Corporation ITC Holdings Florida Municipal Power Agency Oklahoma Municipal Power Authority Self NRECA Arizona Public Service Co. Austin Energy MISO Utility Services Inc. NERC 5

6 2018 ERO Reliability Risk Priorities Report 6

7 RISC Process Report strategically defines and prioritizes inherent risks to the reliable operation of the BPS The level of risk may vary from region to region Supports ERO Enterprise strategic and operational planning Key inputs RISC subject matter expertise o NERC Standing Committees (OC, PC, CIPC, SC & CCC) are members of the RISC Reliability Leadership Summit FERC Technical Conference Pulse point interviews Review of a number of NERC technical studies Department of Energy grid study Feedback on report drafts from industry and Regional Entity leadership 7

8 RISC Key Observations The RISC s key observations regarding emerging risks Fast pace of changing resource mix Energy and communication sectors interdependence Increased complexity of the power system automated controls Complexity of cyber threats and determination of threat adversaries Workforce skills needed to implement the new control facilities Increased demands for coordination among policy makers and regulatory authorities 8

9 Risk Profiles Report groups the BPS reliability risks into nine risk profiles: 1. Changing Resource Mix 2. BPS Planning 3. Resource Adequacy 4. Increasing Complexity in Protection and Control Systems 5. Human Performance and Skilled Workforce 6. Loss of Situational Awareness 7. Physical Security Vulnerabilities 8. Extreme Natural Events 9. Cybersecurity Vulnerabilities 9

10 Risk Profiles and Recommendations Each year the RISC looks to improve the formulation and focus of the BPS risks 2018 report maintained the nine risk profiles from the previous report Shift in the risk profile for Asset Management and Maintenance to Increasing Complexity in Protection and Control Systems Includes recommended actions to mitigate the risks Final report narrowed recommendations from the initial draft Reduced 99 recommendations to 53 Removed overlapping recommendations and those captured in ongoing activities 10

11 Risk Groupings Risk profiles categorized by likelihood and impact RISC recommended higher likelihood, higher impact profiles be given highest priority All risk profiles warrant attention regardless of categorization 11

12 Risk Mapping 12

13 Themes and Takeaways from Profiles Learning from events and the sharing of information and practices E-ISAC, NERC Alerts, event analysis processes, and peer reviews Resilience and recovery Efforts and resources expended on resilience and recovery can address a wide range of risks Adequate data visibility Distributed Energy Resources (DER) data for system operators and planners; how the data will be exchanged; frequency of the data updates; and security and confidentiality measures for protecting necessary data Accurate models Natural gas deliverability and other co-dependencies Becoming more dependent on other sectors such as telecommunications 13

14 Next Steps Accepted by the NERC Board on February 8, 2018 Next Reliability Leadership Summit Q1/Q Next report to Board August

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