Status Report on Compliance Activities In NERC, NPCC and the ERO

1
Status Report on Compliance Activities In NERC,
NPCC and the ERO

• 2006 NERC, NPCC and New England Compliance
  Workshop
• April 5, 2006

2
Introduction

• Entity Registration
• Functional Model
• Development of Compliance Elements
• Violation Risk Factors
• Sanction Guidelines
• Transition to ERO

3
Entity Registration

• 2006 Registration
• Entities Responsible for Compliance
• Expanded Number of Registered Entities
• Review of Initial Registration
• NERC Needs to Develop Consistent Registration
  Guidelines

4
Functional Model

• Development of Version 3
• Post for Industry Comment
• Review and Revise Entity Definitions

5
Development of Compliance Elements

• Newly Developed Process
• Separate from Standards Development Process
• Compliance Monitoring Responsibility, Compliance
  Monitoring Period, Reset Period, Data Retention,
  Additional Compliance Information, Levels of Non-
  Compliance
• Development of Missing Compliance Elements
  (Version Zero)

6
Violation Risk Factors

• High, Medium or Lower Impact on Bulk Power System
  Reliability Relative Ranking
• Assigned to Each Requirement
• Initial SAR
• Definitions for High, Medium and Lower
• Recommended Designations to be Posted for Comment

7
Sanction Guidelines

• Proposed in ERO Application
• Applicable to ERO Standards and Regional
  Standards
• Monetary Sanctions
• Sanctions Related to Various Factors Including
  Violation Risk Factor

8
Transition to ERO

• Structural Changes to NPCC Organization
• RRO and Cross Border Regional Entity (CBRE)
• NPCC Compliance Program Revisions

9
Proposed Regional Structure
FERC and Canadian Regulatory Authorities
States and Provinces
ERO
Region
Cross- Border RE
RRO
Compliance and Enforcement as per specific
International Memorandum of Understanding
10
Regional Structure

• Cross Border Regional Entity (CBRE)
• Develop Regional Standards
• Assess and Enforce Compliance
• Register Functional Model Entities
• Regional Reliability Organization (RRO)
• Develop Regional Criteria
• Assess and Enforce Regional Criteria
• Coordinate Planning and Operations
• Reliability Assessment
• Other Member Services

11
Standards and Criteria

• ERO Reliability Standards (w/ Regional
  Differences)
• Regional Reliability Standards
• Regionally - Specific Reliability Criteria

12
Future Work

• Complete Regional Criteria mapping
• Define Regional Standards and Identify Regional
  Differences
• Develop Regional Standards Development Process
• Develop CBRE Compliance Program
• Review RRO Criteria Development Process
• Review RRO Compliance Program