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COMPLIANCE 101 Module One. Module 1: WECC History & Roles.

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Presentation on theme: "COMPLIANCE 101 Module One. Module 1: WECC History & Roles."— Presentation transcript:

1 COMPLIANCE 101 Module One

2 Module 1: WECC History & Roles

3 3 The Western Electricity Coordinating Council (WECC) is a non-profit corporation that exists to assure a reliable bulk electric system in the geographic area of the Western Interconnection. This area includes all or parts of the 14 western United States, two Canadian provinces, and the northern portion of Baja California, Mexico. WECC Profile

4 4 Incorporated in 2002 Predecessor, WSCC formed in 1967 Largest geographic area of the eight Regional Entities o Entire Western Interconnection (1.8 million square miles) - includes all or part of 14 U.S. states, 2 Canadian provinces and a portion of Baja California Norte, Mexico Non-Governmental Industry participants join together to promote system reliability Member-driven (401 members divided into 7 membership classes) WECC History

5 5 WECC Coverage Service Area 1.8 million square miles 126,285 miles of transmission Population of 78 million


7 7 Members o 401  Grid owners, operators, users  Stakeholders  State and Provincial Board of Directors o 32 members o Committees  Board  Member WECC Organization

8 8 Reliability coordination o Operate two Reliability Coordination Offices (Vancouver Wa. and Loveland Co.) that provide situational awareness and real-time supervision of the entire Western Interconnection WECC Services

9 9 Transmission expansion planning o Management of a comprehensive planning database o Provide coordination of sub-regional planning processes o Analyses and modeling Studies o Model the system and perform studies under a variety of scenarios to set operating policies and limits Market-operations interface o Ensure that competitive power markets do not negatively impact reliability WECC Services

10 10 Loads and Resources Assessments o Perform annual assessment of 10-year loads and resources o Maintain 10-year coordinated plan of system growth o Provide information to NERC for summer and winter assessments of the reliability and adequacy of the bulk-power system Operator training o Provide training sessions for operators, schedulers and dispatchers WREGIS o Hosts the Western Renewable Energy Generation Information System, which creates and tracks renewable energy certificates WECC Services

11 11 Delegation Agreement o Perform functions delegated to WECC as a Regional Entity under Delegation Agreement with NERC, including regulating entities subject to mandatory Reliability Standards WECC Services

12 12 Mandatory Reliability Regulation Northeast Blackout of 2003 –10 Million people in Ontario, Canada –45 million people in eight U.S. states

13 13


15 15 Task Force Report ● Final report of the U.S.-Canada Power System Outage Task Force on the 2003 blackout concluded: the single most important recommendation for preventing future blackouts, and reducing the scope of those that occur, is for the U.S. government to make reliability standards mandatory and enforceable.

16 Task Force Findings Inadequate System Understanding Inadequate Situational Awareness Inadequate Tree Trimming Inadequate Reliability Center Diagnostic Support

17 Congressional Action Energy Policy Act of 2005 On August 8, 2005, the Energy Policy Act of 2005 (EPAct 2005) was signed into law. “Section 215” Section 215 of the EPAct 2005 directed FERC to certify an Electric Reliability Organization (ERO) and develop procedures for establishing, approving and enforcing electric reliability standards.

18 18 Authority for Compliance Monitoring ●FERC Order 672 (Implementing Rule 18 CFR 39) –Responsibility and oversight assigned to FERC –FERC designated NERC as Electric Reliability Organization –NERC has delegation agreement with WECC and seven other regions

19 Implementing Section 215 SECTION 215 Creates Electrical Reliability Organization (ERO) FERC names NERC as ERO Regional Entities NERC selects 8 regional entities WECC is selected for Western Interconnection Delegation Agreement NERC and WECC sign agreements WECC oversight begins in Western Interconnection

20 Development of Mandatory Reliability Standards Critical Infrastructure Protection (CIP) standards become mandatory and enforceable December 2009 (FERC Order 706) Operations and Planning (O&P) Standards become mandatory and enforceable June17, 2007 (FERC Order 693)

21 21 Order 693 & Order 706 Standards Order 693 (Operations and Planning) includes: –Resource and Demand Balancing (BAL) –Emergency Preparedness & Operations (EOP) –Facilities Design, Connection & Mtnce. (FAC) –Protection and Control (PRC) Order 706 (CIP) includes: –Critical Cyber Asset Identification –Personnel & Training –Electronic Security Perimeters

22 22 Registers Entities o Register users, owners, operators according to function Monitors Compliance with Standards o Monitor compliance by users, owners and operators of the bulk power system in the United States Enforces Compliance o Violation mitigation and settlement negotiation o Representation of WECC in any hearing or appeal process Administration o Audit coordination o Reporting systems WECC Compliance

23 NERC Registration & Certification

24 24 Registration Registered Functions determine applicable standards

25 25 Compliance Monitoring Activities Onsite Audit Offsite Audit Self Reports Self Certifications Spot Checks Compliance Violation Investigations Complaints

26 26 Enforcement Activities If a violation is identified, due process includes –Notice of Alleged Violation and Penalty or Sanction –Registered Entity Response –Request for Settlement or Hearing –NERC Approval –FERC Approval

27 27 Enforcement Activities Mitigation of Violations –Prompt mitigation of violations and of risk to BES is important –Mitigation is not an “admission of guilt” –WECC reviews mitigation plans and accepts, rejects or requests revisions –WECC reviews completion of mitigation activities

28 28 Outreach Compliance User Groups/ Critical Infrastructure Compliance User Groups Open WebEX - Monthly Targeted Training –CIP 101 –WebCDMS and EFT –E-learning Modules –Compliance 101

29 29 Reference Documents Compliance Monitoring and Enforcement Program (CMEP) & WECC’s annual plan Delegation Agreement Rules of Procedure NERC Standards and WECC Regional Standards NERC Guidance, Bulletins, Directives and Compliance Application Notices (CANs) FERC Orders

30 Constance B. White Vice President of Compliance Questions?

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