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NERC Policies Introduction

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1 NERC Policies Introduction
It probably won’t be on the test, but let’s take a few minutes to review a brief history of the North American Electric Reliabilitly Council.


3 What is NERC? Northeast U.S. blackout of 1965
Electric Power Reliability Act of 1967 Ten regional councils Organizational objectives Define and measure reliability Influence and interpret legislation regarding the power industry Study interregional connections There were several electric utility organizations around the country before NERC but their efforts were not as well coordinated as the work that NERC does today. The event that is most responsible for the organization that we know as NERC was the 1965 blackout of the northeastern U. S. and southeastern Ontario, Canada. As a result of the blackout, the U. S. government ordered a formal investigation of the event. The Federal Power Commission, now known as the Federal Energy Regulatory Commission, made several recommendations as a result of the investigation including the Electric Power Reliability Act of One recommendation was the formation of a national council on power coordination. The resulting organization was named the National Electric Reliability Council. In 1981, the name was changed to the North American Electric Reliability Council in recognition of Canadian membership but the acronym remained the same.

NERC is “owned” by its ten regional councils. ECAR WSCC MAIN SPP SERC ERCOT FRCC

5 NERC Organization Board of Trustees Engineering Committee
Operating Committee The activities of NERC are directed by its Board of Trustees. The technical activities of NERC are carried out by the Engineering Committee and the Operating Committee. The committees and their subgroups are comprised of managerial and technical representatives from the Regional Councils and from electric industry ownership segments, and end-use customers as appropriate.

6 NERC Operating Committee
Mission To promote the reliability of the electricity supply for North America, To establish Policies, To monitor compliance, To provide a forum for dealing with issues. The are several pages in the NERC Operating Manual detailing operating committee organization and procedures.

7 NERC Standards Development
Players Standards Committee Operating Committee Engineering Committee Subgroup Due Process Appeals Committee Technical Appeals Committee NERC standards include NERC Operating Standards and Requirements and Planning Standards and associated measurements for determining compliance. Standards Committee. The NERC Operating Committee (OC) or Engineering Committee (EC). Subgroup. A subcommittee, working group, or task force of the OC or EC, usually where NERC Standards are drafted and posted for review. Due Process Appeals Committee. The committee that receives comments from those who believe that the “due process” procedure was not properly followed during the development of a Standard. The Due Process Appeals Committee consists of three Board representatives selected by the Board Executive Committee to serve a term of one year. Not more than one representative of the various electric industry sector, Canada, and end-use customer representatives may serve at the same time on the Due Process Appeals Committee. The NERC Vice President shall be the staff coordinator for the Due Process Appeals Committee. Technical Appeals Committee. The committee that receives comments from those who believe that the “due process” was not properly followed during the development of a Standard. The Appeals Committee consists of the vice chairs of the Operating Committee, Engineering Committee, and Board, the NERC Vice President, and the appellant party.

8 Standards Development Process
1. Request to revise or develop standard 2. Assignment to subgroup 3. Drafting phase and Internet announcement 4. Draft standard posted for comment 5. Subgroup deliberates on comments 6. Draft standard submitted to Standards Committee 7. Standards Committee votes on recommendation to Board 8. Appeals processes 9. Board approves 10. Standard implementation or further appeals

9 Waivers to NERC Operating Policies
Instances when an entity cannot comply with a NERC Operating Policy Requested from the Operating Committee Waiver request must include an alternative plan Temporary The OC expects instances when an entity will not be able to comply with an operating policy.

10 Waivers in Effect Scheduling Agent Financial Inadvertent Settlement
Alliance RTO Midwest ISO Southwest Power Pool GridSouth Financial Inadvertent Settlement Control Performance Standard 2 ERCOT For this version of the Operating Manual, there are 3 waivers in effect. ERCOT waiver Single control area Asynchronously connected to the other interconnections Creates no inadvertent flows

11 Personnel Subcommittee
Responsible for support materials Promotes sharing of knowledge Periodically reviews NERC Operating Policies pertaining to System Operator training and certification and recommends revisions Establishes policies and standards for NERC System Operator Certification Serves as the interim governance body for the NERC System Operator Certification Program

12 Introduction to the Operating Policies
NERC Doctrine Policies -- Place responsibility for operating reliability on the Control Areas Standards -- Requirements that are measurable and may be audited with surveys Requirements -- Describe the obligations of a Control Area Guides -- Operating practices to be considered NERC by-laws require mandatory compliance with Standards and Requirements.

13 Interconnections Eastern The largest interconnection
DC ties to the Western and ERCOT interconnections Western Interconnection 2nd largest interconnection DC ties to the Eastern Interconnection ERCOT


15 Control Area An electrical system bounded by interconnection (tie-line) metering and telemetry Two requirements: Directly controls its generation to balance its actual and scheduled interchange Helps regulate and stabilize the Interconnection’s alternating-current frequency

16 Control Area Obligations
Interchange balance Interconnection frequency

17 Interchange Balance Control Areas are connected by tie lines.
Tie Line metering Control Area calculates net actual interchange Control controls actual interchange and contributes to frequency regulation with AGC Control Area is obligated to attempt to match is net actual and net scheduled interchange


19 Generation & Load Balancing
Control Area A tie line flow = = 100 MW 150 MW 50 MW Control Area D Control Area C Control Area E Control Area B

20 Interconnection Frequency
Automatic Generation Control (AGC) Generator governors

21 Compliance Control Areas are obligated to adhere to all NERC Operating Requirements and Standards. Control Areas are approved and certified by the NERC Performance Subcommittee and the appropriate Region.

22 Control Area Reporting
Inadvertent Interchange Accounting Control Performance Surveys Area Interchange Error Surveys Frequency Response Characteristic Surveys Frequency Bias Settings Allowable Limit of Average Deviation Survey

23 Security Coordinators
Established in 1996 Established the requirements for sharing of data and information about the “health” of the Interconnection Established the Interregional Security Network for each Interconnection Required every Region, subregion, or interregional coordinating group to establish a Security Coordinator Required that each Region develop a security plan Rely on common operating terminology, criteria and standards

24 Operating Policy Layout

25 NERC Operating Policy Terms
Several pages of terms and definitions are located in the Operating Manual

26 Confirmation as a Control Area
To be recognized as a NERC-Certified CONTROL AREA, the entity must be reviewed by the REGIONAL COUNCIL in which the entity is a member and and confirmed that it meets the requirements of the specified Criteria.

27 Control Area Criteria Generation Metering Communications
Transmission Arrangements System Operators E-tag Services Performance Surveys Back-up Control Center Coordination System Restoration Compliance with NERC Operating Policies and Standards

28 Security Coordinator Standards of Conduct

29 Security Coordinator Standards of Conduct
Independent of employees/persons who engage in retail or wholesale merchant functions Abide by rules governing employee conduct Written procedures publicly available and provided to all Security Coordinator employees

30 Questions?

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