1. 1 NERC Update WECC OC Meeting June 19, 2009

2. 2 Two Items Variable Generation Reliability Reports

3. 3 IVGTF WECC Members Chairman – Warren Frost – AESO John Kehler – AESO Abraham Ellis – PNM Clyde Loutan - CAISO

4. 4 IVGTF Accommodating High Levels of Variable Generation Report www.nerc.com/files/IVGTF_Report_041609.pdf Three Task Groups –Industry Experts –Avoid duplications –North American wide involvement

5. 5 Variable Generation Forecasting Forecasts in multiple time frames Niche applications such as severe weather forecasting Integrate forecasting into real-time operations Goal Incorporating forecasting techniques into day-to-day operational planning and real- time operations routines

6. 6 Variable Generation Forecasting Time line Begin 2 nd Quarter 2009 End 2 nd Quarter 2010

7. 7 Flexibility Faster ramping and less physically constrained generation Greater and faster access to flexible generation in other BAs Goal BAs must have sufficient communications for monitoring and sending dispatch instruction to variable resources

8. 8 Flexibility Time line Begin 2 nd Quarter 2009 End 1st Quarter 2010

9. 9 Control System operators must have the ability to control power flow from generation resources for reliability reasons –Power management of Variable Resources: Automatic Generation Control Dispatch of the flexible resources Goal #1 Impact of securing ancillary services through larger BAs or participation in wider-area balancing management on bulk power system reliability must be investigated

10. 10 Control Goal #1 Time line Begin 2 nd Quarter 2009 End 1st Quarter 2010

11. 11 Control Goal #2 Goal #2 Operators would benefit from a reference manual which describes the changes required to plan and operate the bulk power and distribution systems to accommodate large amounts of variable generation Time line Begin 2 nd Quarter 2009 End 1st Quarter 2010

12. 12 Control Goal #3 Goal #3 Operating practices, procedures and tools will need to be enhance and modified Time line Begin 2 nd Quarter 2009 End 2 nd Quarter 2011

13. 13 Volunteers Contact Mark G. Lauby Director, Reliability Assessments and Performance Analysis North American Electric Reliability Corporation 116-390 Village Blvd. Princeton, NJ 08540 D: 609.524.7077 F: 609.452.8060 C: 609.651.9420

14. Automated Reliability Reports (ARR)

15. 15 Automated Reliability Reports (ARR) Background Reliability Reports Objective and Value Data Sources, Communications, Reports Objectives and Content Reports Layout and Typical Charts ARR Research and Development Timeframe Presentation Summary Automated Reliability Reports (ARR) Presentation Overview

16. 16 Background, Objectives, Value and Target Interconnections

17. 17 August, 2008 – Consortium for Electric Reliability Technical Solutions (CERTS) provided a briefing on the concept of Automated Reliability Reports (ARR) at the Interconnection level using historical data to Staff and Management of DOE, FERC and NERC. There was consensus on the need and value for ARR. January, 2009 – DOE and FERC agreed to fund the necessary research and prototype development for ARR March, 2009 - FERC hosted a Stakeholders meeting to review the functional specification proposed by CERTS-EPG. After agreeing on some functional changes, research and development started and NERC agreed to host the ARR system for the first three years of production April, May 2009 – ARR objectives and functionality will be presented by FERC-CERTS during NERC Resources Subcommittee and Reliability Coordinators Working Group meetings requesting feedback ARR Project Background

18. 18 ARR Reliability Reports Objective and Value The ARR in its first phase will automatically provide for different timeframes historical summaries of NERC interconnections load-generation resource adequacy, control and reliability metrics performance data, facts, figures and charts that are available from NERC archived data. The reports will provide a starting point for: Compare the reliability state of three NERC Interconnections Identify key trends on interconnections reliability performance Identify, track and quantify current or surfacing reliability issues such as declining frequency response, and hours 5 to 7 and 22 and 23 load-generation adequacy and control Assess reliability performance relative to industry establish standards and statistical base control thresholds where applicable Assess current load-generation reliability performance standards adequacy and need for re-tuning or new standards Assess future impact of high penetration of renewable resources on wide-area reliability

19. 19 ARR Reliability Reports Target Interconnections Eastern, Western and ERCOT Interconnections

20. 20 Data Sources, Data Communications, Architecture and Reports Objectives and Contents

21. 21 ARR Data Sources and Data Communications

22. 22 ARR Reports Objectives and Content

23. 23 Reports Layout Sample and Typical Charts for Monthly Report

24. 24 Monthly Report Pages 1-2 Layout – March, 2009

25. 25 ARR Monthly Report Typical Performance Plots Comparative Reliability Performance TablesMonthly Small Low-Frequency Events Performance Metrics Industry Defined Performance Metrics Statistical Defined

26. 26 Schedule for Research and Development and Summary

27. 27 August 2008 Briefing for DOE, FERC and NERC on Reliability Reports Concept January 2009 DOE-FERC Funding Approved March 2009 Research and Development Started July 2009 Field Test August 2009 Delivery Future Integration of Grid Resources Adequacy Reliability Reports ARR Research and Development Timeframe

28. 28 CERTS Formed in 1999 Research, develop, and disseminate new methods, tools, and technologies to protect and enhance the reliability of the U.S. Electric power system Reliability Adequacy Tools System Security Tools Advanced Measurements and Controls North American SynchroPhasor Initiative www.certs.lbl.gov Short demo on the tool –Resource Adequacy –Intelligent Alarm for Frequency Response During Events –Inadvertent Application