Standards. Howard Gugel, Director of Standards Board of Trustees Meeting May 5, 2016

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1 Standards Howard Gugel, Director of Standards Board of Trustees Meeting May 5, 2016

2 Real-time Monitoring and Analysis Reliability Benefits Ensure entities have capabilities for maintaining high quality real-time data and analysis for reliable system operations Improve operator awareness of real-time system operating conditions Address FERC Order No. 693 directives Action Adopt IRO Reliability Coordinator Real-time Reliability Monitoring and Analysis Capabilities Adopt TOP Real-time Reliability Monitoring and Analysis Capabilities 2

3 Remedial Action Schemes Reliability Benefits Establishes continent-wide requirements for Remedial Action Schemes (RAS) Retires three fill-in-the-blank standards Action Adopt Reliability Standard PRC Remedial Action Schemes 3

4 Definition of Special Protection System Reliability Benefits Aligns the definition of Special Protection System (SPS) with the FERCapproved RAS definition SPS definition will eventually be retired Action Adopt the revised definition of Special Protection System (SPS) 4

5 NPCC Disturbance Monitoring Background Review of continent-wide Disturbance Monitoring Standard in NPCC Regional requirements covered PRC Action Retire PRC-002-NPCC-01 Disturbance Monitoring 5

6 Time Error Correction Background Final ballot December 2015 approved retiring BAL Coordination with NAESB to retire corresponding standard Communication outside industry Operating Committee developing guideline Action Information only 6

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8 Seasonal Assessments Delegated Authority to NERC Management Holly Hawkins, Associate General Counsel Board of Trustees Meeting May 5, 2016

9 Background NERC Rules of Procedure, Section 803: NERC to produce three annual reliability assessment reports subject to review and approval for publication by the NERC Board of Trustees These reports include: o Summer Reliability Assessment Report o Winter Reliability Assessment Report o Annual 10-year Long-Term Assessment Report 2

10 Background Short-Term Special Assessments will explore emerging reliability issues in short-term to align with NERC s Strategic Plan Seasonal deterministic assessments will continue, including: Resource Adequacy analysis for upcoming summer and winter Peer reviews among NERC stakeholders to encourage information-sharing and lessons-learned The format for seasonal assessments will be streamlined, providing higher value to targeted readers 3

11 Action NERC management requesting that the Board of Trustees delegate authority to NERC s Chief Executive Officer to authorize publication of seasonal assessments The Board of Trustees would continue to approve the publication of the annual Long-Term Reliability Assessment and the special assessments 4

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13 Right-of-Way Assurance Project Results Valerie Agnew, Senior Director, Compliance Assurance Board of Trustees Meeting May 5, 2016

14 2010: Reliability Risk Discovered Conductor-to-ground fault caused a line outage Entity performed a system-wide assessment Significant differences in field conditions versus design Impact on Facility Ratings NERC confirmed similar findings with other entities 2

15 FAC Alert (updated 11/30/2010) Level 2 Alert: Consideration of Actual Field Conditions in Determination of Facility Ratings Perform assessments within three year timeframe Prioritize circuits by high, medium and low Remediate discrepancies in one year Extension requests to be submitted to Regional Entity 3

16 Industry Response 21,545 Bulk Electric System (BES) circuits surveyed 6,074 circuits with one or more discrepancies (28%) 59,210 discrepancies identified Majority of the remediation work is complete 4

17 FAC Alert Update (as of Jan 2016) 5

18 FAC Alert Update (as of Jan 2016) 6

19 FAC Alert Update (as of Jan 2016) 7

20 ROW Assurance Project ERO Enterprise Strategic Plan , Metric 3, Measure 6: Right-of-Way Clearances Complete site visits to assure that entities with high priority line discrepancies completed remediation Provide good utility practices and cost-effective programs developed by entities to sustain adequate conductor clearances 8

21 Site Visit Results Validation Review Excellent preparation and documentation Validation 100% successful No concerns that work was not completed Conclusion: High confidence (95%) that remediation completed 9

22 Site Visit Results Good Utility Practices Increased awareness of ROW clearance issues Good examples of enhanced work practices Maintaining Transmission Line Ratings Consistent with As-built Conditions, Good Utility Practices (Dec 2015) As-built verification after line construction / maintenance Manage ROW encroachments Enhanced periodic line patrols Increased clearance buffer (safety margins) Organized corporate management Survey frequency strategy 10

23 FAC Alert Conclusions ERO and industry collaborated to mitigate a significant risk Major investment by industry to preserve reliability Baseline of ratings accuracy re-established Efforts underway to maintain progress into the future Renewed focus on ROW management Improvements in accuracy of ratings 11

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25 Emerging ERO Programs: Advanced Analytics and Modeling Mark Lauby, Senior Vice President and Chief Reliability Officer Board of Trustees Meeting May 5, 2016

26 Case and Model Quality Dynamic Load Modeling Model Notifications Power Plant Model Verification (PPMV) Frequency Response and Inertia Study Inter-Area Oscillation Study Advanced Analytics and Modeling: Areas of Focus 2

27 Case and Model Quality

28 Case and Model Quality Reasonableness of the data for individual element models that comprise the powerflow and dynamics cases Phase 1 Case Quality Metric Assessment published Dec 2015 Focused mostly on power flow data Automation scripts shared with industry MMWG selectively adopted Phase 1 Metrics in Procedure Manual Phase 2 Case Quality Metric Assessment targeted for Dec 2016 Additional power flow and dynamic parameters Power flow: circulating VARs and currents for parallel transformers Dynamics: generator air gap saturation and inertia constants 4

29 Purpose and Objective Dynamic Load Modeling Improve load models to represent their impacts and contributions to the stability of the system Dynamic Load Modeling and FIDVR Workshop in 2015 NERC Load Modeling Task Force kicked off, coordinating with Regional load modeling groups Broad group of specialists planners, software vendors, load behavior experts, and system modelers Support use of Composite Load Model Deliverables and Timeline Reliability Guidelines in 2016 Technical Reference Documents in

30 Feedback Track Model Notification Periodic Review of Model Notifications Model Notification Approval/Analysis and Posting Process 6 Model Builders & OEM Model Notifications Approved by System Analysis Modeling Subcommittee

31 Feedback Track Model Notification Periodic Review of Model Notifications GOs Model Notification Approval/Analysis and Posting Process 7 BAs/ PCs Depending on the Notification Model Builders & OEM TOs/ TPs Model Notifications Approved by System Analysis Modeling Subcommittee

32 Power Plant Model Verification Purpose and Objectives PMU recorded system response compared with simulated response Unit not off-line to validate model Address MOD-026 & MOD-027 Measurement of unit performance during disturbances can be used to verify simulation models Deliverables and Timeline: Guideline in 4 th Quarter Substation Point of Interconnection V I Measurement Data Simulation Data Power Plant G Record: - POI bus voltage - POI bus frequency - Power plant MWs and MVARs G 8

33 Purpose and Objectives Frequency Response and Inertia Study Sufficient primary frequency response and inertia to assure reliability Study effects on interconnections: o High penetrations of Variable Energy Resources (VERs) o Clean Power Plan (CPP) retirements Analysis Scenarios and Study Business as Usual Case, Constrained Interstate Trading, High Renewables, Nuclear Retirements Study impacts on Eastern Interconnection (EI) Timeline Technical Report in Q

34 Inter-Area Oscillation Analysis Purpose and Objectives Sustained oscillations are a sign of a weak system Identify inter-area modes in each of the interconnections Understand modal characteristics using PMU data from major grid events Collaborate with Reliability Coordinators for data and key findings Deliverables and Timeline Report summarizing Western, Texas, and Eastern Interconnections Technical Reports in Q3 of

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36 Background slides

37 System Dynamic Character is Changing Rapid penetration of new loads Retirement/displacement of conventional generation Variable energy resources Rapid penetration of electronically-coupled resources Essential Reliability Services Reduced inertia Frequency Reponses Voltage Support System controls and protection coordination Modeling and simulation constraints Increasing interface with distribution-centric resources 13

38 Objectives Advance ERO s analytical engineering capabilities Perform forensic analysis of significant system disturbances Conduct interconnection-wide analyses Subject-matter expertise to support standards and guidelines Industry leadership on advanced system studies and modeling 14

39 Strategic Goals 1. Improve power system models and modeling cases 2. Understand changing grid characteristics, behaviors and performance through advanced analysis 3. Provide superior technical analysis and engineering support for ERO initiatives 15

40 Implementation Approach: 1-Model Improvement Assess and improve power system models and practices PMU-based power plant and system model verification Dynamic load modeling Power plant model verification Hybrid planning-operations models Provide feedback loop to ensure high model quality and fidelity Review industry practices, available analysis Leverage on available studies to identify benefits Develop notifications for model use 16

41 Power Plant Model Verification (PPMV) Objectives Support industry with MOD-026 and MOD-027 modeling standards Improve power plant models using disturbance-based approaches Minimize need for offline testing for re-verification of models Deliverables & Timeline Reliability Guideline on PPMV (Q3 2016) Pilot project for developing materials for MOD standards (Q2 2017) Substation Power Plant Point of Interconnection V I G Record: - POI bus voltage - POI bus frequency - Power plant MWs and MVARs G 17

42 Dynamic Load Modeling Objectives Drive development & advancement of dynamic load models o Supporting advancement of composite load model Provide technical materials and guidance on modeling practices Create and support the NERC Load Modeling Task Force (LMTF) Deliverables & Timeline Reliability Guidelines and Technical Reference Documents (2016 & 2017) Improved models and uniformity across software platforms (2017) 18

43 Implementation Approach: 2- Power System Analysis Perform advanced engineering analysis to understand changing grid characteristics, behaviors and performance Frequency Response and Inertia trends for critical contingencies in each interconnection under future resource mixes Inter-Area Oscillation Mode shape, frequency, and damping margin needed for the largest damping change in each interconnection Voltage and reactive support Minimum dynamic reactive support needed for voltage excursions Short circuit strength Grid strength indicators 19

44 Frequency Response & Inertia Analysis Objective & Purpose Study effects on interconnection primary frequency response o High penetrations of Variable Energy Resources (VERs) o Clean Power Plan (CPP) retirements Analysis Scenarios Business as Usual Case, Constrained Interstate Trading, High Renewables, Nuclear Retirements Perform Frequency Response Study Benchmark Eastern Interconnect (EI) model Modify plant governor and load controller model Timeline Q for Technical Reports 20

45 Inter-Area Oscillation Analysis Purpose Identify under what scenario/conditions oscillation is sign of a weak system and find the fix Objectives Better understand inter-area modes in each of the interconnections Identify modal characteristics using PMU data from major grid events Use Reliability Coordinator(RC) collaboration for Special Reliability Assessment Deliverables Report summarizing modes in the, Western, ERCOT, and Eastern Interconnection Detailed report of analysis from study Timeline Tentatively Q for Technical Reports 21

46 Implementation Approach: 3-Technical Support and Outreach Provide technical expertise, research, and insights Technical References, Reliability Guidelines, whitepapers Technical support for Reliability Standards Transition insights from engineering analysis to actionable industry guidance Partner with research and academic institutions 22

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48 E-ISAC Update Marcus Sachs, Senior VP & Chief Security Officer Board of Trustees May 5,

49 Summary of Q Sharing and reporting 286 E-ISAC staff posts to the portal 47 member responses to the portal items 40 additional posts to the portal from members 106 calls to the E-ISAC hotline 641 new portal accounts Products Monthly reports and webinars on the first Tuesday of each month Weekly reports every Monday afternoon Daily reports started in January 2016 First annual report published in January Monthly CRISP executive reports 2

50 Alerts and Reports Level 2 (Recommendation) NERC Alert Issued in response to the December 2015 cyber attacks in Ukraine Covered recommendations developed after an onsite visit in January Public report (Analysis of Cyber Attack on the Ukrainian Power Grid) published in March Design Basis Threat (DBT) Report First DBT for the electricity sector Helps asset owners understand physical threat tactics, techniques, and procedures that would most likely be used by a typical threat group Lowers costs of physical protections 3

51 Alerts and Reports GridEx III Reports Public report and two restricted reports Covers lessons learned and recommendations from the distributed play and executive tabletop portions of the exercise 4

52 Ukraine Event December 23, 2015 Published initial findings report on January 4, 2016 Participated in on-site visit in January Issued Level 2 (Recommendation) NERC Alert on February 9 Published a public report, Analysis of Cyber Attack on the Ukrainian Power Grid Released to E-ISAC members on March 18 Released to general public on March 21 Provided detailed briefings to CIPC and other venues Supported DHS and ICS-CERT briefings and webinars Developing multi-day onsite training and awareness sessions 5

53 E-ISAC Staffing and Support Staffing Twenty (20) employees plus two contractors in the Washington, DC office Physical security analysis positions open; recruiting under way Member services manager (ESCC recommendation) recruiting under way Technology Staff domain moved Portal-to-platform project initiated 6

54 Member Executive Committee 2016 Work Plan approved at the March MEC meeting Publish a How-To Guide ( Understanding Your E-ISAC ) Develop E-ISAC Products and Services List Define E-ISAC Role in Classified Briefings Establish User Communities Develop Strawmen for E-ISAC Reports Pilot Automated Information Sharing (Platform) Initiate Improvements to the Portal Develop Plan to Evaluate 24/7 Watch and Notification Capability Conduct Site Pen Testing All items on track ( green ) at end of Q1 7

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