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Standards

Howard Gugel, Director of StandardsBoard of Trustees MeetingMay 5, 2016

RELIABILITY | ACCOUNTABILITY2

• 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-018-1 Reliability Coordinator Real-time Reliability Monitoring

and Analysis Capabilities Adopt TOP-010-1 Real-time Reliability Monitoring and Analysis Capabilities

Real-time Monitoring and Analysis


• Reliability Benefits Establishes continent-wide requirements for Remedial Action Schemes

(RAS) Retires three fill-in-the-blank standards

• Action Adopt Reliability Standard PRC-012-2 - Remedial Action Schemes

Remedial Action Schemes


• Reliability Benefits Aligns the definition of Special Protection System (SPS) with the FERC-

approved RAS definition SPS definition will eventually be retired

• Action Adopt the revised definition of Special Protection System (SPS)

Definition of Special Protection System


• Background Review of continent-wide Disturbance Monitoring Standard in NPCC Regional requirements covered PRC-002-2

• Action Retire PRC-002-NPCC-01 – Disturbance Monitoring

NPCC Disturbance Monitoring


• Background Final ballot December 2015 approved retiring BAL-004-0 Coordination with NAESB to retire corresponding standard Communication outside industry Operating Committee developing guideline

• Action Information only

Time Error Correction


Seasonal Assessments Delegated Authority to NERC Management

Holly Hawkins, Associate General CounselBoard of Trustees MeetingMay 5, 2016

2 RELIABILITY | ACCOUNTABILITY

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 Reporto Winter Reliability Assessment Reporto Annual 10-year Long-Term Assessment Report


Background

• Short-Term Special Assessments will explore emerging reliability issues in short-term to align with NERC’s 2016-2019 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


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


Right-of-Way Assurance Project Results

Valerie Agnew, Senior Director, Compliance AssuranceBoard of Trustees MeetingMay 5, 2016


• 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

2010: Reliability Risk Discovered


• 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

FAC Alert (updated 11/30/2010)


• 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

Industry Response


FAC Alert Update (as of Jan 2016)






• ERO Enterprise Strategic Plan 2015-2018, 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

ROW Assurance Project


• Excellent preparation and documentation• Validation 100% successful No concerns that work was not completed Conclusion: High confidence (95%) that remediation completed

Site Visit Results – Validation Review


• 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) http://www.nerc.com/pa/rrm/bpsa/Pages/Facility-Ratings-Alert.aspx 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

Site Visit Results – Good Utility Practices

http://www.nerc.com/pa/rrm/bpsa/Pages/Facility-Ratings-Alert.aspx


• 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

FAC Alert Conclusions


Emerging ERO Programs:

Advanced Analytics and Modeling

Mark Lauby, Senior Vice President and Chief Reliability Officer

Board of Trustees Meeting

May 5, 2016


• 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


59.8

59.85

59.9

59.95

60

60.05

0 10 20 30 40 50 60

Case and Model Quality


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


Dynamic Load Modeling

• Purpose and Objective• 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 2017


Model NotificationFe

ed

bac

k Tr

ack

Model Builders & OEM

Model NotificationsApproved by

System Analysis Modeling

Subcommittee

Model NotificationApproval/Analysis and

Posting Process

Periodic Review of Model Notifications


Model NotificationFe

ed

bac

k Tr

ack

Depending on the

Notification

GOs

TOs/ TPs

BAs/ PCs

Model Builders & OEM

Model NotificationsApproved by

System Analysis Modeling

Subcommittee

Model NotificationApproval/Analysis and

Posting Process

Periodic Review of Model Notifications


Power Plant Model Verification

G

Record: - POI bus voltage- POI bus frequency- Power plant MWs and MVARs

Point of Interconnection

V I

Power Plant

G

Substation

• 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 4th Quarter

Measurement DataSimulation Data


Frequency Response and Inertia Study

• Purpose and Objectives 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 Q4 2016


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 2017


Background slides


• 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

System Dynamic Character is Changing


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


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


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


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)

G

Record: - POI bus voltage- POI bus frequency- Power plant MWs and MVARs

Point of Interconnection

V I

Power Plant

G

Substation


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)


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


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• Q4 2016 for Technical Reports


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 Q3 2017 for Technical Reports


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


1

E-ISAC Update

Marcus Sachs, Senior VP & Chief Security OfficerBoard of TrusteesMay 5, 2016

2

• 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

Summary of Q1 2016

3

• 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

Alerts and Reports

4

• 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

Alerts and Reports

5

• 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

Ukraine Event December 23, 2015

6

• 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 email domain moved from @nerc.net to @eisac.com Portal-to-platform project initiated

E-ISAC Staffing and Support

7

• 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

Member Executive Committee

8

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