Transcript Document
1 Protecting Grid Reliability 2 NERC Regions 3 NERC’s History ● Formed in 1968 as a VOLUNTARY organization to promote reliability of bulk power systems throughout North America ● Members are 10 Regional Councils –Canadian utilities are members of three Regional Councils ● NERC sets reliability standards for the high voltage electric grids ● Standards MANDATORY but not ENFORCEABLE 4 Beginnings of Change ● Apr ‘96 – FERC Orders Open Access ● More players, more transactions: a 100-fold ● ● ● ● 5 increase over last 5 years Transmission everywhere highly loaded Economic pressure to bend reliability rules Violations of rules going unpunished Reliability of grids at risk Self-Regulated Reliability Org. ● Sufficient authority to enforce compliance. ● Recognition needed as a self-regulatory organization (SRO) by government bodies in Canada, the U.S. and Mexico. ● Authority to collect funds to support its SRO function. ● Use NASD as a model. 6 Mission and Functions ● Develop and enforce reliability standards for high voltage grids in North America ● Assess and report on supply adequacy ● International scope and perspective ● Only organization with this responsibility for North America 7 Regional Relationships ● Regional organizations essential part of implementation and enforcement function. ● Strong positive working relations and shared responsibilities with regional organizations, including evolving ISOs and RTOs. ● Delegation agreements between NAERO and each regional organization. 8 Industry Participation & Excellence ● Voluntary participation by technical personnel is indispensable. ● Encourage voluntary efforts of the industry’s best technical experts. ● Ensure “balanced” representation on all NERC committees. ● Government regulators and other agencies encouraged to participate. 9 Public Participation ● Transparency, openness and accessibility essential to success. ● Maximize participation among members and the public. ● Board and Committee meetings open to the public. ● Minutes of all meetings made public. ● Independent review every 5 years. 10 Operating Committee 100 MW 7:00 7:20 7:40 ● Develop Operating Standards Ensure security or short-term reliability of interconnected transmission grids 11 8:00 NERC Operating Manual B A C D 1 Non Firm Network Non Firm Weekly E 2 Non Firm Monthly Non Firm Hourly F Contract path North American Electric Reliability Council www.nerc.com/~/oc/opermanl.html 12 Planning Committee ● Develop Planning Standards Ensure future reliability of interconnected transmission grids ● Assess and report on long-term adequacy 13 Compliance Enforcement Program ● Separate and independent from Standing Committees ● Three key functions: Compliance review process Enforcement process (including a penalty structure) System Operator Certification Process 14 NERC Organization ● Board of Trustees Nine independent members NERC President ● Standing Committees Broad Sector representation Subcommittees Working Groups Task Forces 15 Board of Trustees Stakeholders Operating Operating Committee Committee CIP Committee Staff Planning Committee Communications Network 14 RC 3 RC 16 1 RC BLACKOUT 2003 – August 14 ~ 4:15 PM EDT August 13 – 8:29 PM ~ 20 hours BEFORE Ottawa August 14 – 8:14 PM ~ 4 hours AFTER Montreal Montreal Toronto Detroit Buffalo Boston Boston New York City & Long Island New York City & Long Island Cleveland Columbus 17 Defense Meteorological Satellite Program Images, courtesy of the United States Air Force Weather Agency Questions ??? 18 19 20 Legislation Needed in U.S. ● FERC jurisdiction over reliability in U.S. ● Designate new ERO to set and enforce reliability standards in the U.S. ● Approve delegation to regional entities ● Define role for States ● Coordination with RTOs ● Coordination with Canada and Mexico ● Antitrust protection 21 International Arrangements ● Industry SRO develops standards to apply throughout North America ● Government role to approve standards, hear appeals ● International framework to assure coordination between U.S., Canada, and Mexico ● Avoid dominance by FERC 22 The Right Path = NAERO ● Legislation (U.S.) to provide grant of authority ● Similar grants from Canadian governments ● Industry SRO with an independent board can do the best job ● Emphasis on openness and due process ● Everyone plays by the same rules ● Send best people to do their best job 23 Issues Ahead… ● Adequacy and Performance ● Coordination & Control Activities ● Infrastructure Security ● Monitoring, Assessing, & Enforcement ● Congestion Management ● Data Interchange ● Send best people to do their best job 24