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North American Electric Reliability
Corporation History and
Developments
Rhaiza Villafranca
Reliability Assessment Performance Analysis
Technical Analyst
GRIDSCHOOL, Institute of Public Utilities, Richmond Virginia
December 8-9, 2009
2
What is NERC?
FERC has designated the North American Electric Reliability Corporation (NERC) as the “Electric Reliability Organization” (ERO) for the United States.
33
Electric Power: Players, Drivers, Etc.
RELIABILITY POLICITALREALITIES &OBJECTIVES
$ - FINANCEENVIRONMENT
REGULATORS
SOCIALCONCERNS
ENGINEERINGFEASIBILITY
POWERINDUSTRY
NATIONALSECURITY
CONSUMERS
4
Fully Functioning ERO
Develop strong reliability standards
Strictly enforce compliance
Independent Reliability Assessment
Evaluate Past Performance & Root Cause Analysis
Promote excellence in planning and operations
Promote continuous improvement through analysis of events and “Lessons Learned”
Training, education, and certification of personnel
Real-time situation awareness
5
Primary Functions
Mission: Ensure the reliability of the Bulk Power system (BPS)
Assess the BPS operations & future reliability
Collaboratively Set Standards for BPS Performance
Enforce requirements of these Standards
Collaborate with the government
Train and certify operators
6
Evolution of Electricity Competition
1978 – PURPA introduced competition
1991 – DOE National Energy Strategy
• Allow independent power producers
• Encourage open access to transmission
1992 – EPAct
• NERC action plan for the future
1996 – FERC Orders on Open Access
• Put NERC on a course to become a self-regulatory reliability organization and ERO
7
Regulation of Electricity
FERC
• Promoted wholesale competition, Order No. 888
• Entrants of ISOs and RTOs
States
• Adequate, safe, reliable service
• Rates for retail power sales, T&D rates
• Facility certification and siting
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About NERC: VitalsAbout NERC: Vitals
Independent non-profit corporation headquartered in Princeton, NJ
Second office in Washington, DC
NERC has over 112 employees
• Engineers, auditors, system operators, analysts, trainers, accountants, policy specialists, lawyers, and administrative assistants
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Delegated functions
• Compliance
• Regional standards
• Organization registration
• Reliability assessment
Regional consistency is key
• Transparency
• Predictability
• Uniform outcomes
About NERC: 8 Regional EntitiesAbout NERC: 8 Regional Entities
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NERC Reliability Coordinators
CMRC -California Mexico Reliability CoordinatorERCOT - ERCOT ISOFRCC -Florida Power & LightTE - Hydro Quebec, TransEnergieICTE - Independent Coordinator Transmission – EntergyISNE - ISO New England Inc.MISO - Midwest ISONBSO – New Brunswick System OperatorNYIS - New York Independent System OperatorONT - Ontario - Independent Electricity System OperatorPNSC - Pacific Northwest Reliability CoordinatorPJM - PJM InterconnectionRDRC - Rocky Desert Reliability CoordinatorSPC - Saskatchewan Power Corporation – SOCO - Southern Company Services, Inc.SWPP - Southwest Power PoolTVA - Tennessee Valley AuthorityVACS - VACAR-South
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RTO/ISOs (chart from IRC Council)
RTOs: MISO, ISO-NE, PJM, SPPISOs: AESO, CAISO, ERCOT, IESO, NYISO, NBSO
ISOs and RTOs
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Self Regulation Means…Self Regulation Means…
Regulation
• Mandatory compliance with standards
• Penalties for standards violations
Self – Industry Stakeholders …
• Develop standards
• Elect independent board
• Approve changes to bylaws
Audited
• Independent review of actions, first by board and then by FERC
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Program Areas
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Standards Development
Compliance Enforcement
Compliance Operations
Reliability Assessments and Performance Analysis
Critical Infrastructure Protection
Engineering and Operations
Situational Awareness
Training, Education, and Personnel Certification
Program Areas (Revised Acc. To Gerry’s letter)
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Monitoring and Standards Implementation
94 NERC standards mandatory in the U.S.
• 24 pending
54 actively monitored
• Transitional phase in of CIP standards per implementation plan
Regional Entities perform compliance monitoring activities on behalf of NERC (with NERC oversight)
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Compliance Monitoring and Enforcement Program (CMEP) Consistency and uniformity of CMEP
implementation• RSAWs (Reliability Standards Audit Worksheets)
• Standardized CMEP process documents
Self-Reporting Form
Self-Certification Form
Mitigation Plan submittal forms
• Formal direction and guidance
e.g. Process Directives• NERC training
Auditor, CVI , & CIP training
• Audits of RE conformance to and performance of the Uniform CMEP
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Reliability Assessment 2009 Findings
NERC Annual Completes A Long-Term Reliability Assessment for a 10-year period
For example, in 2009 analysis included:
• Monitor reserve margins
• Monitor performance of demand response
• Assess the natural gas supply/delivery and impacts
• Monitor transmission siting and planning delays
• Assess the challenges of technology demands for integration of variable generation
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2009 Emerging Issues
Economic Recession– Demand Uncertainty
Transmission Siting
Energy Storage
Workforce Issues
Cyber Security
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2009 Emerging & Standing Issues
Emerging Issues Risk Evolution:
Consequence
Lik
elih
oo
d
High
HighLow
Greenhouse Gas Regulations
Cyber Security
Transmission Siting
Variable Generation
Issues
Reactive Power
Energy Storage
Economy Issues
1-5 Years6-10 Years
Workforce Issues
Smart Grid & AMI
Like
liho
od
ConsequenceLowerLower
HigherHigher
HigherHigher
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Standing Issues (Ongoing work)
Variable Generation Integration
Greenhouse Gas Initiatives
Reactive Power
Smart Grid and AMI
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Critical Infrastructure Protection
Cyber-security
Determine High-Impact, Low-Frequency Events and risks involved
NERC Secure Alert System in deployment
Modification of Reliability Standards for CIP
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NERC’s Sample of Task Forces
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New Renewable Capacity
2018 Variable Generation Capacity
1. 2,000 MW of Solar Generation
(Includes Existing, Future, and Conceptual Generation Resources
2,000 MW of Solar Generation
Less than 2,000 MW of Wind Generation2,000 MW of Wind GenerationLess than 2,000 MW of Solar Generation
12,392 MW
18,125 MW
46,268 MW
62,041 MW
49,039 MW 45,700 MW
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IVGTF – Integration of Variable Generation Task Force
Areas of Further Study & Effort
High levels of variable generation will require significant transmission additions and reinforcements. Barriers to transmission development should be addressed
Additional flexible resources, such as demand response, plug-in hybrid electric vehicles, and energy storage may help balance steep “ramps”
Improved measurement, forecasting, and modeling of variable generation output is needed
2010 All Electric Chevrolet VoltCourtesy of General Motors
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Areas of Further Study & Effortcontinued
More comprehensive planning approaches and operational practices are needed, including probabilistic planning approaches
In aggregate, variable generation connected at the distribution level (i.e. local wind generation and rooftop solar panels) may impact bulk power system reliability
Deploying complementary types of variable generation (e.g. wind and solar), leveraging fuel diversity over large geographic regions, and advanced control technologies show promise in managing unique operating characteristics
Greater access to larger pools of generation and demand may facilitate the large-scale integration of variable resources
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RMWG - Reliability Metrics Working Group
Scope
• Identify reliability indicator trends over a period of time
• Assessing metrics through continuous communication and data validation from regions
• Informing the industry and the public of lessons learned
• Develop a performance metric to benchmark
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Smart Grid – Everybody has a vision…
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SGTF - Smart Grid Task Force Objectives
Identify the technologies and its contribution to reliability of BPS
Determine the implications of cyber security and protection implications on critical infrastructure
Determine the standards in effect
Provide recommendations
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Summary
NERC’s History and Developments
Regulatory Engagement FERC & DOE
8 Regional Entities/ Interconnections/ ISOs & RTOs
Program Areas: Standards, CMEP, RAPA, and CIP
Task Forces: IVGTF, RMWG, and SGTF
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Question & Answer