1. 1 New York State Reliability Council …….. Promoting Electric System Reliability in New York State Presentation to the MEUA Annual Meeting - 2000 September 19-21, 2000 Richard J. Bolbrock, P.E. Chairman - New York State Reliability Council

2. 2 NYSRC Mission To Promote and Preserve the Reliability of Electric Service on the Bulk Power System in New York State

3. 3 General Responsibilities Establish and maintain Reliability Rules for use by the NYISO and all entities engaging in electric power transactions on the Bulk Power System Along with NPCC and the ISO, monitor compliance with the Reliability Rules Establish State-Wide Installed Capacity Requirements consistent with NPCC Standards

4. 4 NYSRC Executive Committee Reliability Rules Subcommittee Reliability Compliance Monitoring Subcommittee ICAP Working Group NYSRC Organizational Structure

5. 5 7 - Affiliated Members from the Transmission Providers 1 - Member from the Electric Suppliers 1 - Member from the Municipalities 1 - Member from the Large Customers 3 - Non-Affiliated Members 3 - Observers ISO PSC NPCC NYSRC Membership

6. 6 NYSRC Responsibility Topics NYSRC Rule Development NYSRC Compliance Monitoring NYCA ICAP Requirements

7. 7 NYSRC Rule Development 1. Elements of NYSRC Rules 2. Process for Updating NYSRC Rules 3. Rule Development Program for 2000

8. 8 Elements of the NYSRC Rules NERC Standards NPCC Standards Local Reliability Rules Other more restrictive or stringent criteria than NPCC Standards, recognizing special NYS system characteristics or reliability needs

9. Procedure for Reviewing, Developing, Modifying, and Disseminating NYSRC Reliability Rules NYSRC Rule Change Request EC Assigns to RRS RRS Recommendation to Accept or Reject Rule Change Notification EC Action Notify MPs Implement Rule Dispute Resolution Post Notify FERC & PSC Final New or Modified Rule To RRS for Revision RRS Final Draft Rule Post RRS 1st Draft Rule ISO Reviews Rule (Agrees with Rule) (Disagrees with Rule) (Return) (Reject Rule Change) (Accept Rule Change) RRS Reviews Comments (Approve) (45 Day Comment Period) Post Request ISOMPs EC Action 1 2 3 4 5 6 7 8

10. 10 Rule Development Program for 2000 Preparing new NYSRC Rules Merging NERC/NPCC Standards into NYSRC Rules

11. 11 NYSRC Compliance Monitoring 1. NYSRC Compliance Review Process 2. 2000 NY Reliability Compliance Program [2000 NYRCP]

12. 12 Compliance Review Process Develop reporting procedures Collect data, documentation, and assessments to demonstrate compliance Evaluate compliance Report conclusions regarding full compliance or levels of non-compliance

13. 13 Types of NYSRC Rule Assessments

14. 14 Compliance Review - Type A NYSRC Rule: NPCC Criteria Responsible Reporting Entity: ISO Compliance Monitoring Entity: NPCC Oversight Review Entity: NYSRC Examples: Transmission System Performance (3.2.1-3.2.6) NERC/NPCC Pilot Program Standards ISO Prepares Compliance Report NYSRC Provides Oversight Review and Comments to ISO NPCC Monitors ISO Compliance 1 2 3

15. 15 Compliance Review - Type B NYSRC Rule: NPCC Criteria Responsible Reporting Entity: MPs Compliance Monitoring Entity: ISO Oversight Review Entity: NYSRC/NPCC Examples: NERC/NPCC Pilot Program Standards MPs Prepares Compliance Report NYSRC Provides Oversight Review and Comments to ISO NPCC Provides Oversight Review ISO Monitors MP Compliance 1 2 3 4

16. 16 Compliance Review - Type C NYSRC Rule: Not Covered by NPCC/NERC Criteria Responsible Reporting Entity: ISO Compliance Monitoring Entity: NYSRC Examples: Locational ICAP Responsibility (3.1.2) Restoration Procedures (4.1.6) DMNC Testing Procedure (3.1.3.1) ISO Prepares Compliance Report NYSRC Monitors ISO Compliance 1 2

17. 17 Compliance Review - Type D NYSRC Rule: Not Covered by NPCC/NERC Criteria Responsible Reporting Entity: MPs Compliance Monitoring Entity: ISO Oversight Review Entity: NYSRC Rule Examples: Local Rules LSE Capacity Responsibility (3.1.4) DMNC Testing - Test Results (3.1.3.1) MPs Prepare Compliance Report ISO Monitors MP Compliance NYSRC Provides Oversight Review 1 2 3

18. 18 Summary 2000 NY Reliability Compliance Program (NYRCP) Assessments

19. 19 2000 NYRCP Summary

20. 20 2000 NYRCP Objectives To Monitor Compliance with NYSRC Rules To Test Effectiveness of the Compliance Review Process and Procedures To Assess Communication between NYSRC, NYISO, Market Participants, and NPCC Concerning Reliability Assurance

21. 21 NYCA IRM Requirements NYSRC Study Process Study Assumptions Multi-Area Reliability Model NYCA Results IRM - 18% NYISO Study LSE IRM Requirements Locational Capacity Requirements ISONE Ontario PJM H-Q 11 NYCA Zones

22. 22 New York Model NYISO/NYSRC Relationship NY State Reliability Council (NYSRC) Independent System Operator (NYISO) Dispute Resolution Reliability Rules / Criteria Compliance Data

23. 23 NYSRC Relationship to NYISO NYSRC and the NYISO will function as two separate and distinct entities but work cooperatively NYSRC defines the reliability rules for operating the system NYISO responsible for short term reliability of NYS power system NYSRC and NYISO will both participate at NPCC and NERC/NAERO NYSRC assesses and monitors NYISO's compliance with reliability rules

24. 24 NYSRC Relationship to NYISO Cont’d NYISO provides NYSRC with data, reports, and assistance NYISO provides reports to NYSRC describing performance of NYS Power System NYSRC reviews and approves triennial reviews and other reliability reports prepared by the NYISO for submittal to NPCC/NERC

25. 25 Functional Relationships Between NYSRC & NYISO

26. 26 Functional Relationships Between NYSRC & NYISO

27. 27 Functional Relationships Between NYSRC & NYISO