1. Reliability Subcommittee Report Vishal C. Patel Chair – Reliability Subcommittee March 2014

2. 2 Approval Item: o Merger of LRS and RPEWG Informational Item: o Inclusion of non-BES elements as part of the BES o BES Notification and Exception Process Overview

3. 3 Current Structure Planning Coordination Committee Loads & Resources Subcommittee (LRS) Reliability Subcommittee (RS) Technical Studies Subcommittee (TSS) Reliability Performance Evaluation Work Group (RPEWG)

4. 4 Motion: Planning Coordination Committee (PCC) approves retirement of the LRS charter and merger into the RPEWG (new WG name TBD) The LRS charter states that the LRS shall advise and make recommendations on the status of and analysis of resource adequacy in the Western Interconnection. The work products for this function are: o Reliability assessments, including the NERC Long-Term Reliability Assessment o Seasonal assessments o WECC Power Supply Assessment Recent changes in NERC procedures have reduced LRS involvement to an advisory role. This has impacted the activities of the LRS membership. Furthermore, because of changes to NERC standards and WECC criteria, guidelines, and business practices the Reliability Performance Evaluation Work Group (RPEWG) has also seen a reduction in its activities. Merger of the LRS and RPEWG

5. 5 With the dissolution of the LRS the remaining activities will be incorporated with the activities of the RPEWG form a new work group (name TBD). The benefits of creating a combined group are: o Focus on reliability: The LRS analysis on resource adequacy and work with the reliability assessments will be coupled with RPEWGs work on Reliability Performance allowing for a more complete picture and focus on Bulk Electric System reliability. o Reliability subcommittee oversight: Vetting of reliability assessments by the Reliability Subcommittee. o Consolidation of resources: Combination of the LRS and RPEWG will allow for better use of membership and WECC staff resources o Consolidation of data: LRS staff works with NERC GADS, TADS, and DADS data. This type of data has historically been analyzed in the RPEWG. o Probabilistic Studies: LRS group produces NERC probabilistic studies, and the RPEWG/RS is also exploring probabilistic studies allowing a better use of resources. Please also note that a review of all WECC committees and groups will be performed in 2015. The new hybrid LRS/RPEWG will be part of that review. Merger of the LRS and RPEWG

6. 6 LRS incorporated into RPEWG Planning Coordination Committee RS TSSLRS RPEWG

7. 7 An assignment was given to the Reliability Subcommittee at the October 2013 PCC Steering Committee meeting to develop criteria or procedures where consideration is given for inclusion of non-BES elements as part of the BES. This is in response to Recommendation 17 of the Arizona-Southern California Outages on September 8, 2011. RS has been developing a document which is intended to serve as a guideline to industry and WECC staff for making inclusion decisions. RS will be holding a meeting dedicated to discussing this on April 10 here in SLC. Draft reasons for inclusion included for informational purposes on following slides: Inclusion of non-BES elements as part of the BES

8. 8 If an entity identifies non-BES element(s) upon which BES operation depends, then those elements should be considered for inclusion as part of the BES. The situations for consideration should include but are not limited to: o Non-BES elements identified as a significant contributing causal factor in an event analysis report (e.g. disturbance report). o Non-BES elements that are part of a monitored Facility or a major transfer path. o Non-BES elements identified as part of a black-start cranking path or a Nuclear Plant Off-Site Power Supply. Reasons for Consideration of Facilities for Inclusion

9. 9 If the outage of a BES element causes a change in flow on the non-BES elements to be more than 10% of the non-BES element continuous rating, then it can be considered as a candidate for further evaluation to include the element as part of the BES. The evaluation should include but is not limited to the following: o The effects of not requiring the element to comply with requirements assigned to BES Elements in the NERC Reliability Standards. o The role of the non-BES element in the reliable operation of the system, based on operating experience during normal and emergency conditions as supported by data, studies, or event analyses. o Any unique characteristics of the non-BES element in relation to the electrical characteristics of the system and its topology. o The extent to which the non-BES element is necessary for the reliable operation of the system, such as transfer capability, system stability, or voltage control. o The extent to which the non-BES element affects the System Operating Limit (SOL) or Interconnection Reliability Operating Limit (IROL) of a major transfer path or a monitored Facility. o The Time Horizon for the study, the system conditions and the ability to address the contingency. Reasons for Consideration of Facilities for Inclusion

10. 10 If the outage of a sub-100 kV connected generator or plant causes flow on any BES element to be more than the largest of 20 MW or 10% of the BES element continuous rating, then its impact is considered as a candidate for further evaluation to include the element as part of the BES. The evaluation should include but is not limited to the following. o The aggregate effect of including the Element within a portion of the BES (e.g., where multiple resources considered individually are not necessary for the Reliable Operation of the system, but in aggregate the resources are necessary). o The extent to which the resource is relied on for, or has a commitment related to, capacity requirements. o Ancillary services provided by the resource(s). o Whether the resource(s) is relied on to support an established SOL or IROL, to provide reactive support during BES contingencies, or to control BES voltages during normal operations. o The extent to which generation resource supports system inertia and frequency response. Reasons for Consideration of Facilities for Inclusion

11. 11 If the outage of a non-BES element causes change in flow on any BES system to be more than the largest of 20 MW or 10% of the BES element continuous rating, then it can be considered as a candidate for further evaluation to include the element as part of the BES. The evaluation should include but is not limited to the following. o The role of the non-BES Element(s) in the reliable operation of the system, based on operating experience during normal and emergency conditions as supported by data, studies, or event analyses. o The extent to which the outage of the non-BES element affects the System Operating Limit (SOL) or Interconnection Reliability Operating Limit (IROL) of a major transfer path or a monitored Facility. Reasons for Consideration of Facilities for Inclusion

12. 12 NERC recently posted the revised definition and related exception processes to their webpage Revised BES Definition becomes effective July 1, 2014 More info found at: http://www.nerc.com/pa/RAPA/Pages/BES. aspx BES Notification and Exception Process

13. Vishal Patel 909-274-1635 vishal.patel@sce.com Questions Or Concerns?