Electric Reliability and the Clean Power Plan Branden Sudduth Director, Reliability Planning W ESTERN E LECTRICITY C OORDINATING C OUNCIL

WECC History and Background 2 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Energy Policy Act 2005 FERC Authority under Section 215 – Mandatory Reliability Standards – Compliance Monitoring and Enforcement – Civil Penalties and Sanctions NERC approved as Electric Reliability Organization (ERO) Eight Regional Entities including WECC delegated to implement standards and compliance Northeast Blackout August 14, 2003 ~50 million people $6 billion

WECC Roles in the Industry 3 W ESTERN E LECTRICITY C OORDINATING C OUNCIL What we do: o Compliance Monitoring and Enforcement o Standards Development o WREGIS (REC tracking) Reliability Planning and Performance Analysis What we do not do: o Site, permit, or build transmission o Operate transmission o Cost allocation o “Pick winners” WECC’s mission is to promote and foster a reliable and efficient bulk electric system

EPA Clean Power Plan Impetus: President’s Climate Action Plan instructed EPA to reduce CO₂ emissions EPA Authority: Section 111(d) of Clean Air Act – Identified existing affected electric generating units (EGUs) – 30% reduction in CO₂ by 2030 relative to 2005 levels Approach: EPA set state specific 2030 emission rate goals, allowing for flexibility in compliance 4 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Varying State Emission Rate Goals Block 1 Block 2 Block 3 Block 4

WECC Focus – EPA Clean Power Plan Our intent: Provide unbiased and objective information that can be used by state officials, public utility commissioners, utilities, and other interested stakeholders to understand the potential impacts of the proposed rule (and resulting plans) Our focus: Identifying potential reliability impacts and supporting regional collaboration – No compliance obligations – Will not recommend specific compliance plan(s) Stakeholders are a critical part of WECC’s efforts

EPA CPP- Potential Reliability Challenges Changes to interconnected system – Changing load shapes and resource mix – Adequacy of resources to offset potential retirements – System stability and resiliency to disturbances Responsiveness and flexibility of system to maintain reliability 7 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Reliability Challenges of a Changing System Old Paradigm: High load situations are the most stressful New Paradigm: New stressed conditions could be driven by the resource mix Hot Summer Day Load (MW) 24 hours Peak hour has worried us most Cool, Sunny, and Windy Spring Day Load (MW) 24 hours What about this situation? Non-VG Wind Solar Non-VG Wind Solar As a percentage of total load, there is less spinning mass on the system in the “new paradigm”

Potential Reliability Implications of 111(d) Grid-planning challenges – – Changes to resource mix – Increased penetration of renewables (utility scale & DG resources) – Transmission adequacy – Timely Replacement of aging generators Operational effects – – Viable replacements of baseload resources – Timely natural gas deliverability and security 9 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

WECC Role in 111(d) Analyses 10 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Phase 1 Western States develop options Identify compliance strategies Phase 2 Partner with states – regional solution(s) Coordinate with WIEB/CNEE, others Phase 3 Engage with WECC – Reliability Assessments

WECC Approach to Addressing Key Reliability Issues Evaluate reliability impacts only Partner with WIEB, CNEE and key entities Engage WECC membership and other stakeholders 11 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

12 Branden Sudduth Director, Reliability Planning Tel: Thank you