1. Integration of Variable Generation Task Force (IVGTF) Mark Lauby Manager, Reliability Assessments mark.lauby@nerc.net

2. About NERC  The electric industry’s “self-regulatory organization” for reliability Balances the interests of all stakeholders Represents industry consensus Independently acts in the best interest of reliability International “charter” lending government support and oversight to SRO activities, ensuring that the best interests of society-at-large are represented  Federally recognized “Electric Reliability Organization” in the U.S.  Agreements in place with several Canadian provinces and developing these agreements in others

3. About NERC: Mission  Develop & enforce reliability standards  Assess current and future reliability  Analyze system events & recommend improved practices  Encourage active participation by all stakeholders  Pursue mandatory standards in all areas of the interconnection To ensure the reliability of the North American bulk power system

4. 2007 LTRA Report  Operational challenges must be resolved  Transmission needed to support renewable development “Clean Energy Superhighway”  NERC to monitor federal carbon legislation for impact on reliability Integration of Wind & Solar Resources Require Special Considerations in Planning, Design, & Operation

5. NERC’s Actions  Evaluate operational requirements  Recommend standards.  Develop a consistent approach for rating variable resources Available capacity at time of system peak  Developed Integration of Variable Generation Task Force

6. Engaging Industry Experts  Integration must support a reliable bulk power system  Variable Resources affect planning/operations  Reviewed by the Operating & Planning Committees in December 2007  Integration of Variable Generation Task Force

7.  The Task Force will prepare A concepts document that includes the philosophical and technical considerations for integrating variable resources Specific recommendations for practices and requirements, including reliability standards, that cover the planning, operations planning, and real-time operating timeframes.  The document will include: Planning timeframe issues, such as contribution to reserve margins and modeling requirements to test system reliability, Operational Planning and Real-time operating timeframe issues, including Interconnection frequency, and primary and secondary generation control Review NERC Standards for any gaps Conclusions and recommendations. IVGTF Scope

8.  Bulk power system reliability must be maintained, regardless of the generation mix  All generation must contribute to overall bulk power system reliability  Standards and criteria established must be fair, transparent and performance-based  Planners and operators must understand the challenges presented by large scale integration of variable generation  Wind and other variable generation must effectively integrate into planning and operations practices to ensure reliability  New Planning/operating tool requirements will be described in terms of bulk power system reliability performance IVGTF Guiding Principles

9.  Characteristics of Variable Generation  Planning and Technical Impacts  System Operations  Other and Future Considerations  NERC Standard Review  Conclusions & Recommendations  Glossary IVGTF Outline of White Paper

10.  High Industry Interest 45 Nominations received  Liaisons being built with Industry Groups American Wind Energy Association (AWEA) Canadian Wind Energy Association (CanWEA) Utility Wind Integration Group (UWIG) Solar Energy Industries Association (SEIA) IEEE-PES EPRI U.S. Department of Energy Union for the Co-ordination of Transmission of Electricity (UCTE) IVGTF Status

11. IVGTF Status: Work Plan ItemGoalLead2008 Milestones Conf. CallReview Report outline & assignmentsLaubyFebruary OC/PCStatus ReportFrost & LaubyMarch MeetingReview assignments first draftsTask ForceMarch MeetingReview Second draftsTask ForceMay OC/PCStatus Report & preliminary findingsFrost & LaubyJune MeetingReview Final Draft ReportLaubyAugust OC/PC  Present Final Draft Report  Capacity Method Recommendations Frost & LaubySeptember Meeting Review OC/PC Comments & develop Final Report Task ForceAugust OC/PC Present Final Report and recommendations Frost & LaubyDecember Meeting/ Workshop Open Meeting to Present resultsTask ForceJanuary, 2009

12. Thank You