NERC 102: Standards Process

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NERC 102 Standards Process

• Gerry Adamski
• Vice-President and Director of Standards
• October 1, 2009

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Agenda

• About NERC
• Governing Process Documents
• Key Roles in Standards Process
• Standards Development Process
• Reliability Standards Development Plan
• Current Activities

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About NERC

• The electric industrys self-regulatory
  organization for reliability
• Balances the interests of all stakeholders
• Represents industry consensus
• Independently acts in the best interest of
  reliability
• International charter lending government
  support and oversight to SRO activities, ensuring
  that the best interests of society-at-large are
  represented
• Federally recognized Electric Reliability
  Organization in the U.S.
• Agreements in place with several Canadian
  provinces and developing these agreements in
  others

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About NERC Mission
To ensure the reliability of the North American
bulk power system

• Develop enforce reliability standards
• Assess current and future reliability
• Analyze system events recommend improved
  practices
• Encourage active participation by all
  stakeholders
• Pursue mandatory standards in all areas of the
  interconnection

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Governing Process Documents

• ERO Rules of Procedure Section 300
• Rules by which the ERO will conduct its business
• Reliability Standards Development Procedure -
  Version 6.1
• Defines the characteristics of a reliability
  standard of the North American Electric
  Reliability Corporation (NERC)
• Establishes the process for
• Development of consensus for approval
• Revision
• Reaffirmation, and
• Withdrawal of such standards

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Key Roles in Standards Process
Board of Trustees
Regulators
Stakeholders
Ballot Body
Standards Committee
StandardsStaff
Ballot Pools
Drafting Teams
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Registered Ballot Body (RBB)

• To vote on standards projects, each stakeholder
  must be a RBB member.
• To be an RBB member you must
• Qualify for one of the 10 stakeholder segments
  that are approved by the Board of Trustees
• Register with NERC as potential ballot
  participants in the voting on standards

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Registered Ballot Body (RBB)

• Stakeholder interests balanced across 10 segments
• More than 700 participants in RBB
• RBB comprised of organizations, except segment 8
  (small electricity user)
• Open membership subject to segment criteria
• Entity may register for all applicable segments
• Affiliates may register only once in a segment

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Standards Committee

• Elected by industry stakeholders from the 10
  industry segments, which comprises the registered
  ballot body (RBB)
• Each segment elects two representatives to serve
  on the committee
• Each representative serves for a two-year term
• No term limits
• The Standards Committee reports to the NERC Board

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Activities

• Manage standards development
• Manage the standards process
• Review effectiveness of ballot process
• Coordinate with compliance program
• Coordinate with NAESB
• Coordinate with NERC Board, Regulators, and
  Stakeholders

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Current Membership
2009-10 Jason Shaver Terry Bilke Ron Parsons John
Martinsen Mike Gildea Robert Walker John
Anderson Brendan Kirby Diane Barney Steve Rueckert
2008-09 Scott Henry Ben Li Raj Rana Allen
Mosher Tom Bradish Steve Beuning Bob Nelson Jim
Stanton Lou Ann Westerfield Linda Campbell

• Segment
• 1 Transmission
• 2 RTOs/ISOs
• 3 LSEs
• 4 TDU
• 5 Generators
• 6 Marketers
• 7 Large Customers
• 8 Small Customers
• 9 Regulators
• 10RROs and REs

Canada David Kiguel
Chair Vice-chair
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Subcommittees

• Process Subcommittee
• Maintains documents that support the standards
  development process and recommends improvements
• Communications and Planning Subcommittee
• Find opportunities to provide information about
  standards to end-users.
• Find opportunities to collect information from
  stakeholders on issues to be addressed by
  standards.

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Drafting Teams

• SAR drafting teams
• Appointed by the Standards Committee, as needed,
  to assist requester with SAR development and
  response to comments
• Standard drafting teams
• Appointed to draft new or refined standards
• Considerations
• Necessary expertise and competencies
• Balanced and inclusive perspectives
• Efficient use of industry resources

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Stakeholders

• Stakeholder Segments
• Elect representative members, via the RBB, to the
  Standards Committee
• Serve on drafting teams that develop new or
  refine existing standards
• Ensure regulatory directives are addressed
• Provide subject matter expertise and comments on
  all draft standards

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NERC Staff

• Serve as coordinators for drafting teams
• Provides staff support, documentation, and
  communication for Standards Committee and
  stakeholder actions on standards development
• Files standards for approval with FERC and
  Canadian regulatory authorities
• Manages documentation and communication on the
  Web page
• NAESB Coordination
• Regional Reliability Standards Coordination
• Provide input to NERC Board

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Regulatory Staff

• Observes/participates in drafting team and
  standards development activities as desired
• Provides clarity to directives
• Offers observations on consistency of drafting
  team approach to directives
• Treated like other observer to team activities

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Standards Development Process
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ANSI Accreditation

• NERC process accredited by American National
  Standards Institute (ANSI)
• ANSI principles
• Open
• Inclusive
• Fair
• Balanced
• Minimum duration comment period
• Requires five-year mandatory review

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Standards Development Process
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Standard Approval

• Initial ballot and recirculation ballot
• Recirculation required if one or more negative
  votes with comments is submitted on first ballot
• Quorum is 75 of ballot pool
• Stakeholder approval requires gt 2/3 weighted
  average of segments
• Board adoption
• Regulatory approval

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Standards Development Plan
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Standards Development Plan

• Dynamic management tool
• Communicates vision
• Guides and coordinates reliability standards
  development
• Provides benchmarks for assessing progress

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Reliability Standards Where Are We Headed?

• Near-term Improve What We Have . . .
• Does the standard have a reliability-related
  purpose best met by a standard?
• Does the requirement belong in this standard?
• Does the requirement have the right
  applicability?
• Is the requirement effective efficient?
• Do the compliance elements support reliability?
• Can the standard be made more clear?

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Reliability Standards Where Are We Headed?

• Longer term . . .
• Close gaps in existing topics
• Identify objective performance metrics
• Add requirements to support industry advances
• Wind and solar generation integration
• Demand side resources
• Phasor Measurement Units
• Voltage and Reactive Control
• Smart Grid

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Current 2009-2011 OrganizationReliability
Standards Development Plan

• Three Volumes
• Volume I provides program overview
• Volume II outlines plans for continent-wide
  standards
• 39 total continent-wide projects involving over
  120 standards
• 8 projects in 2006
• 14 projects in 2007
• 6 projects in 2008
• 5 projects in 2009
• 5 projects in 2010
• 1 project in 2011
• Volume III outlines plans for regional standards
• 51 total regional standards in regional projects
• 19 regional standards
• Plus 32 regional standards to support 4
  continent-wide standards

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Preview of Reliability Standards Development
Plan 2010-2012

• Volume II outlines plans for continent-wide
  standards
• 35 total continent-wide projects involving over
  120 standards
• 2006 4 projects
• 2007 12 projects
• 2008 4 projects
• 2009 8 projects
• 2010 6 projects (Results-Based Standards)
• 2012 1 project (Physical Protection)
• Volume III outlines plans for regional standards
• 42 total regional standards in regional projects
• 10 regional standards
• Plus 32 regional standards to support 4
  continent-wide standards

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Current Activities
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Regulatory Status of Reliability Standards

• US Mandatory and enforceable
• Nova Scotia MOU in place none mandatory and
  enforceable
• New Brunswick MOU in place mandatory and
  enforceable
• Quebec MOU in place none mandatory and
  enforceable
• Ontario MOU in place mandatory and enforceable
• Manitoba Agreement in place for mandatory and
  enforceable standards for Manitoba Hydro only
• Saskatchewan MOU in place mandatory and
  enforceable standards for SaskPower only
• Alberta Recognizes NERC as ERO has approved
  several standards as mandatory and enforceable
• British Columbia Mandatory and enforceable
• National Energy Board MOU in place none
  mandatory and enforceable

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Current Development Activity

• Continent-wide
• 30 standards projects
• 12 formal interpretations
• Nearing Completion
• Project 2006-02 Assess Transmission Future Needs
• Project 2006-04 Backup Facilities
• Project 2007-01 Underfrequency Load Shedding
• Regional
• Monitoring Regional Standards in Support of
  Continent-wide Standards

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Request for Stakeholder Participation

• Current Ballot
• Interpretation of CIP-006-1, R1.1 (through
  10/12/09)
• Interpretation of CIP-001-1, R2 (through 10/9/09)
• Open for Comment
• Functional Model Version 5 (through 10/26/09)
• Project 2006-2 Assess Transmission Future Needs
  (through 10/16/09)
• Project 2007-6 System Protection Coordination
  (through 10/26/09)
• Project 2007-7 Vegetation Management (through
  10/24/09)
• Standards Under Development link
• http//www.nerc.com/filez/standards/Reliability_S
  tandards_Under_Development.html

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Three-Year Assessment - Standards

• Focus development on areas with greatest impact
  on reliability
• Accelerate the Reliability Standards Development
  Process
• Promote participation by smaller entities
• Clarify role of FERC and NERC staff
• Better align functions with current industry
  structures
• Provide clear measures
• Enhance stakeholder communications
• Expedite completion of fill-in-the-blank
  standards

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Questions?

• Maureen Long, Standards Process Manager
• Maureen.long_at_nerc.net
• Gerry Adamski, Vice President, Director of
  Standards
• Gerry.Adamski_at_nerc.net
• Scott Henry, Standards Committee Chair
• rshenry_at_duke-energy.com

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