Standards Development: Update to IMO Regulatory Standing Committee

1
Standards Development Update to IMO
Regulatory Standing Committee
May 14, 2003
2
Purpose Today

• To inform you of recent developments in
  reliability and business practice standards
  having potential impact on stakeholders

3
The standards development landscape

• Standards development is driven by the changes to
  industry framework.
• Major developmental activity in industry
  framework and structure (FERC, ISOs/RTOs) and
  reliability and business practice standards (NERC
  and NAESB)
• Scale of planned standards development is
  unprecedented - substantial pressure on
  resources

4
Reliability standards

• What Standards specify performance outcomes and
  processes impacting grid reliability
• Importance IMO is committed to comply with
  industry standards
• Organizations NERC and NPCC
• Status
• Major redevelopment of NERC standards
• IMO, OPG and Hydro One are involved
• Others will be impacted (information and
  procedures)

5
NERC overview

• Open Balanced balloting - ANSI certified
• Committees 8 numerous sub-committees
• Active SARs 15 2 approved for drafting
• RRCs (NPCC et al) are likely to get a role in
  certification and compliance of NERC standards
• IMO, OPG and Hydro One involved
• FERC will mandate for U.S. NERC will enforce
  compliance

6
Business practice standards

• What Standards specify parameters for commercial
  wholesale electricity transactions
• Importance Ontario not committed to compliance
  but adoption in US will make it attractive to
  comply
• Organizations NAESB Wholesale Electricity
  Quadrant (WEQ) also ESC and OSC
• Status
• Major development of NAESB standards
• IMO, OPG and Hydro One are involved
• Others may be impacted (information and
  procedures)

7
NAESB overview

• Open Balanced balloting - ANSI certified
• ISOs/RTOs dont have an explicit segment and have
  chosen not to be part of the transmission
  segment. May have a advisory role
• Committees Board WEQ Executive 3 operating
  committees many sub-committees
• Active Requests for Standards 2
• FERC, not NAESB, will likely enforce compliance

8
ISO/RTO Council overview

• Membership the 8 ISOs/RTOs (CEOs)
• Committees Working Group (ad hoc) Standards
  Review Committee (SRC) IT.
• Addresses policies in concert with FERC -
  influences standards but doesnt develop them.
• Forum for sharing/joint action re software,
  processes, and participation in NAESB/NERC
  matters.

9
Boundaries and relationships

• MOU signed by NERC, NAESB and the ISO/RTO Council
  defines boundaries and process of
  inter-organization coordination
• Proposed standards are directed to the
  appropriate party by the tripartite Joint
  Implementation Committee (JIC)
• JIC directs policy matters to ISO/RTO Council
  reliability standards matters to NERC and
  business practice standards to NAESB
• Dispute resolution review of annual plans

10
Boundaries and relationships

11
NERC Functional Model

12
ISSUE Who is to be the Transmission Operator
within the NERC Functional Model?

• ISSUE
• A single entity or class of entities should be
  assigned
• However, the current functional definition
  involves two IMO (local reliability) and Ontario
  transmitters (switching)
• The IMO believes it must be the Transmission
  Operator
• Manage switching off-line via Licence and
  Operating Agreements

13
On the Radar

• NERC - Cyber Security standard
• NERC - MISO/PJM congestion management
  coordination
• NAESB - Inadvertent Exchange standard
• NAESB - standard trading day
• NAESB - standards to resolve seams issues
• ISO Council - SRC and JIC participation

14
Abbreviations

• NERC North American Electric Reliability Council
• FERC Federal Energy Regulatory Commission
• NAESB North American Energy Standards Board
• NPCC Northeast Power Coordinating Council
• ANSI American National Standards Institute
• RRC Regional Reliability Council
• ESC Electronic Scheduling Collaborative
• OSC OASIS Standards Collaborative
• SAR Standard Authorization Request (NERC)

15
Reference websites

• NERC.com
• NERC News (monthly email)
• NERC Bulletin Board (developments on website)
• NERC Standards Development Bulletin - May 2003
  http//www.nerc.com/filez/standards/standards-bul
  letin.htm
• NAESB.org
• NPCC.org
• IMO?

16
Appendix
17
NERC draft plan (p 33 of ftp//www.nerc.com/pub/s
ys/all_updl/sac/jic/jic0303a.pdf)

Balance Resources and Demand ---- SAR completed
1st Qtr 2003 2nd Qtr 2003 Monitor and Assess
Short-term Trans Reliability SAR completed
Operate Within Limits ---- 2nd Qtr 2003 2nd Qtr
2003 Determine Facility Ratings, Operating
Limits and Transfer Capabilities 1st Qtr 2003 3rd
Qtr 2003 4th Qtr 2003 Coordinate Interchange 1st
Qtr 2003 3rd Qtr 2003 4th Qtr 2003 Certification
of Reliability Authority 2nd Qtr 2003 4th Qtr
2003 4th Qtr 2003 Certification of Balancing
Authority 2nd Qtr 2003 4th Qtr 2003 4th Qtr
2003 Certification of Interchange Authority 2nd
Qtr 2003 4th Qtr 2003 4th Qtr 2003 Certification
of Transmission Operator 2nd Qtr 2003 4th Qtr
2003 4th Qtr 2003 Revise Reliability Standards
Process Manual Step 2 1st Qtr 2003 1st Qtr 2003
2nd Qtr 2003 Coordinate Operations 2nd Qtr 2003
4th Qtr 2003 1st Qtr 2004 Prepare for and Respond
to Abnormal or Emergency Conditions 1st Qtr 2004
2nd Qtr 2004 3rd Qtr 2004 Prepare for and Respond
to Blackout or Island Conditions 1st Qtr 2004 2nd
Qtr 2004 3rd Qtr 2004 Monitor and Analyze
Disturbances, Events, and Conditions 1st Qtr 2004
2nd Qtr 2004 4th Qtr 2004 Assess Transmission
Future Needs and Develop Transmission Plans 2nd
Qtr 2004 3rd Qtr 2004 1st Qtr 2005 Design,
Install and Coordinate Control and Protection
Systems 2nd Qtr 2004 3rd Qtr 2004 1st Qtr
2005 Define (Physical) Connection Requirements
2nd Qtr 2004 3rd Qtr 2004 1st Qtr 2005
18
NAESB draft plan (2003 02 18 http//www.naesb.org
/pdf/weq_annual_plan.pdf)

1. Develop business practices and standards as
   needed to complement reliability standards.
2. Develop Business Practice Standards for OASIS and
   Electronic Scheduling
3. Develop Standards and Model Business Practices in
   Support of a Standard Market
4. Develop Business Practices and Standards to
   Improve the Current Operation of the Wholesale
   Electric Market
5. Develop standardized contracts SAR to extend
   funds transfer agreement submitted to JIC
6. Develop standards for Inadvertent Interchange
   Payback Practice. SAR submitted to JIC
7. Develop business processes related to FERCs
   forthcoming generation interconnection orders

19
NERC SARs submitted to March 19
http//www.nerc.com/filez/sar-approved.html

• ansmission Future Needs and Develop Transmission
  Plans
• Assess Transmission Future Needs and Develop
  Transmission Plans
• Balance Resources and Demand (approved for
  drafting)
• Certification of the Balancing Authority Function
• Certification of the Interchange Authority
  Function
• Certification of the Reliability Authority
  Function
• Certification of the Transmission Operator
  Function
• Coordinate Interchange
• Coordinate Operations
• Define (Physical) Connection Requirements
• Design, Install, and Coordinate Control and
  Protection System
• Determine Facility Ratings, Operating Limits, and
  Transfer Capabilities
• Monitor and Analyze Disturbances, Events, and
  Conditions
• Monitor and Assess Short-term Reliability -
  Operate Within Transmission System Limits
  (approved for drafting)
• Prepare for and Respond to Abnormal or Emergency
  Conditions
• Prepare for and Respond to Blackout or Island
  Conditions
• Reliability Standards Process Manual - Revisions