Meeting Minutes Operating Committee September 13 14, 2016

Transcription

1 Meeting Minutes Operating Committee September 13 14, Hyatt Regency Phoenix Phoenix, Arizona A regular meeting of the NERC Operating Committee (OC) was held on September 13 14,, in Phoenix, Arizona. The meeting agenda and the attendance list are affixed as Exhibits A and B, respectively; and individual statements and minority opinions as Exhibits C and D, respectively. The meeting presentations are posted in a separate file at OC Presentations. OC Chair Jim Case convened the meeting at 1:00 p.m. MST. Secretary Larry Kezele announced that a quorum was present, read the Notice of Public Meeting and referred the committee to the NERC Antitrust Compliance Guidelines. Chair s Opening Remarks Chair Case welcomed the OC to Phoenix and noted that the OC has another full agenda of material to consider and debate. He drew the OC s attention to the following agenda items: 1. Reliability Guideline: Situational Awareness for the System Operator 2. Reliability Guideline: Inadvertent Interchange 3. Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards 4. Reliability Guideline: Frequency Response Sharing Meeting Highlights 1. Appointed Jerry Rust (Regional Entity Sector), Tom Irvine (Federal/Provincial Sector), Doug Hils (IOU Sector), Keith Carman (Cooperative Sector) and Leonard Kula (ISO/RTO Sector) to serve on the OC s Nominating Subcommittee. Appointed Jerry Rust to chair the Nominating Subcommittee. 2. Approved the election of Mr. Brandien to the OC Executive Committee. The members of the Executive Committee are Chair Jim Case, Vice Chair Linke, Doug Peterchuck (State/Municipal Sector), Gerry Beckerle (IOU Sector), Keith Carman (Cooperative Sector) and Peter Brandien (ISO/RTO Sector). 3. Accepted the Operating Reliability Subcommittee motion that the Reliability Coordinators continue to develop and maintain Reliability Plans. The ORS recommends that the current OC Guideline for Approving Regional and Reliability Coordinator Reliability Plans be updated by the ORS to reflect the ORS expectations around Reliability Plans, such as removing RROs from the process, retaining ORS endorsement of Reliability Plan changes, removing the periodic review requirement, and including criteria for what plan changes need to be brought to the ORS. The ORS agrees that reliability plans could include multiple RCs, if preferred. 4. Tabled ORS Motion 2 (see Presentation 5.b) pending further discussion internally within NERC. 5. Approved the revised Event Analysis Process for a 45-day public posting. 6. Approved archiving the Reliability Guideline: System Operator Communications Current Industry Practices. 7. Approved posting the draft Reliability Guideline: Situational Awareness for the System Operator for a 45-day public comment period. 8. Approved posting the draft Reliability Guideline: Inadvertent Interchange for a 45-day public comment period. 9. Approved posting the draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards for a 45-day public comment period. 10. Approved Version 4 of the Time Monitoring Reference Document. 11. Approved conducting a multiyear, voluntary generator survey, based on no more than several real-time events per year, in the Eastern, Western and Quebec Interconnections, to measure individual generator performance. 12. Approved the OC Strategic Plan. 13. Approved the disposition of the Eastern Interconnection unaccounted for inadvertent interchange as proposed by the Resources Subcommittee.

2 5. Version 4 of the Time Monitoring Reference Document Consent Agenda By consent, the committee approved the minutes of the June 7 8, meeting and the appointment of Paul Kure (RF) and Maggie Peacock (WECC) as chair and vice chair, respectively, of the Performance Analysis Subcommittee. Chair s Remarks Chair Case thanked Pierre Paquet (Hydro Quebec TransEnergie), Todd Lucas (Southern Company), Richard Kinas (Orlando Utilities Commission) and David Souder (PJM) for their support of and membership on the OC. He welcomed Doug Hils (Duke Energy), Sidney Jackson (Rochester Public Utilities (Minnesota), Stephane Desbiens (Hydro Quebec TransEnergie), Allen Schriver (NextEra Energy Florida Power and Light), Connie Davis (DPU Cleveland Public Power) and Peter Brandien (ISO New England) to the committee. Chair Case also provided a brief overview of the August 10, Member Representatives Committee meeting and the August 11, Board of Trustees meeting. The OC s report to the Board of Trustees was included in the agenda packet for this meeting. OC Action Item Review Vice Chair Linke reviewed the list of action items and reported that several have been completed or are on the agenda for this meeting. The revised action item list is attached as Exhibit E. Nominating Subcommittee Jerry Rust, chair of the Nominating Subcommittee, reported that the annual election resulted in two vacancies on the subcommittee. Mr. Rust recommended the appointment of Keith Carman and Doug Hils to the Nominating Subcommittee. By unanimous consent, Chair Case appointed Keith Carman and Doug Hils to serve on the OC s Nominating Subcommittee. The members of the Nominating Subcommittee are Jerry Rust (Regional Entity Sector), Tom Irvine (Federal/Provincial Sector), Doug Hils (IOU Sector), Keith Carman (Cooperative Sector) and Leonard Kula (ISO/RTO Sector). Chair Case appointed Jerry Rust to chair the Nominating Subcommittee. OC Executive Committee Election Jerry Rust, chair of the Nominating Subcommittee, reported that the annual election resulted in a vacancy on the OC s Executive Committee. Furthermore, he reported that the Nominating Subcommittee recommends the election of Peter Brandien to the Executive Committee and moved to approve the election of Mr. Brandien to the OC Executive Committee. The committee approved the motion. The members of the Executive Committee are Chair Jim Case, Vice Chair Lloyd Linke, Doug Peterchuck (State/Municipal Sector), Gerry Beckerle (IOU Sector), Keith Carman (Cooperative Sector) and Peter Brandien (ISO/RTO Sector). Operating Committee Minutes September 13-14, 2

3 Operating Reliability Subcommittee (ORS) Status Report ORS Chair Eric Senkowicz summarized the subcommittee s status report, which was included in the OC agenda packet (Presentation 5.b). At its September meeting the ORS approved the NPCC Regional Reliability Plan and the Reliability Plan for the SERC Southeastern Subregion Reliability Coordinator. He noted that at the June OC meeting Chair Case tasked the ORS with conducting a further review the need for reliability plans in light of the new requirements stated in IRO-014 and to report its recommendation to the OC at its September meeting. Chair Senkowicz reported that the subcommittee had an extensive discussion related to the continued development of reliability plans and passed two motions which support their continued development. Motion 1: The ORS recommends to the OC that the Reliability Coordinators continue to develop and maintain Reliability Plans. The ORS recommends that the current NERC Guideline for Approving Regional and Reliability Coordinator Reliability Plans be updated by the ORS to reflect the ORS expectations around Reliability Plans, such as removing RROs from the process, retaining ORS endorsement of Reliability Plan changes, removing the periodic review requirement, and including criteria for what plan changes need to be brought to the ORS. The ORS agrees that reliability plans could include multiple RCs, if preferred. Motion 2: The ORS recommends to the OC that the OC recommend to NERC that the NERC Certification process be enhanced to ensure adequate transparency (including OC endorsement of significant changes) and oversight of significant changes that could impact reliability on external systems. The formal mechanism for neighboring entities to raise issues of significant impacts due to changes in RC/BA footprints or other substantive changes in RC/BA areas will be removed with the new NERC IRO standards. The standard requirement being retired enabled the OC to withhold approval if neighboring system impacts were not properly addressed. The ORS recommends that the NERC certification process evaluate broader impacts of such changes to the BES earlier in the process to allow for time for entities to coordinate and resolve potential issues that may require special operating procedures be developed or facilities upgraded. NERC could delay or withhold certification if credible neighboring entity concerns are not addressed. Jerry Rust moved to accept ORS Motion 1 as recorded above. The committee approved the motion. Following discussion of ORS Motion 2, Jerry Rust moved to table ORS Motion 2 pending further discussion internally within NERC. The OC expects a report back from NERC Staff at its December meeting. Chair Senkowicz also updated the OC on the following ORS activities: 1. Gas/Electric Coordination Guideline A guideline outline was presented and a request was made by Chair Case to forward the guideline outline to the OC for further input. 2. The ORS to review the continued need for its Data Exchange Working Group and the Telecommunications Working Group. 3. Continued review of the Electric System Restoration Reference Document. 4. Implementation of the Net Actual Interchange and Net Scheduled Interchange tool. Operating Committee Minutes September 13-14, 3

4 Resources Subcommittee (RS) Status Report RS Chair Troy Blalock provided an overview of subcommittee s status report. He noted that RS vice chair John Tolo has decided to step down and that The RS and NERC Staff conducted two Standard BAL Implementation Workshops. Event Analysis Subcommittee (EAS) Status Report EAS Chair Hassan Hamdar summarized the subcommittee s status report. The EAS conducted a Winter Weather Readiness Webinar on September 1,. Chair Hamdar also reviewed proposed changes to the Event Analysis Process and reviewed a Justification for the Event Category 1g and 3a Changes for ERCOT. Jerry Rust moved to approve the revised Event Analysis Process for a 45-day public posting. The committee approved the motion. Personnel Subcommittee (PS) Status Report Lauri Jones, chair of the PS, noted that the subcommittee has started a major project to draft Version 4.4 of the Continuing Education Program Manual. She also stated that the PS recommends archiving the Reliability Guideline: System Operator Communications Current Industry Practices since COM (Operating Personnel Communications Protocols) now addresses the principles addressed in the guideline. Jeff Harrison moved to approve archiving the Reliability Guideline: System Operator Communications Current Industry Practices. The committee approved the motion. Reliability Assessment Subcommittee (RAS) Status Report Amir Najafzadeh, NERC Staff, provided an overview of RAS activities (Presentation 5.f). The RAS is developing the /17 Winter Reliability Assessment and the Long Term Reliability Assessment. The RAS is also working with the Essential Reliability Services Working Group to develop Measure 6 (Ramping). Short-Term Special Assessment: Single Points of Disruption on Natural Gas Infrastructure Amir Najafzadeh, NERC Staff, addressed the scope and drivers of this short-term special assessment (Presentation 5.f.ii). Drivers for the study include: 1) generation impacted by fuel supply interruption such as pipeline segment outages, 2) Aliso Canyon outage affecting generation capacity and 3) and the Argonne National Laboratory analysis of critical or significant underground natural gas storage, pipelines and liquefied natural gas. Mr. Najafzadeh outlined the four phases of development of this special assessment. The final phase, Phase 4, will provide actionable recommendations. The special assessment is expected to be completed by late spring The OC raised concerns about the release of Critical Energy Infrastructure Information (CEII). Mr. Najafzadeh sought OC representatives to serve on the Assessment s Technical Advisory Committee. Todd Lucas, Doug Hils, Jerry Rust, Steve Ashbaker, Robert Blohm and Peter Brandien volunteered to serve on the Technical Advisory Committee. Operating Committee Minutes September 13-14, 4

5 July WECC Update on Aliso Canyon Steve Ashbaker, WECC Staff, provided an update on Aliso Canyon (Presentation 5.f.i). In October 2015 a gas leak was detected in well SS-25 at the Aliso Canyon natural gas storage facility. Aliso Canyon is a critical component of the natural gas system in Southern California and directly serves 17 generating plants (9,800 MW of capacity). Since drawdown of the facility, no gas has been used from Aliso Canyon to date. During the summer of the BES was operated reliably despite numerous fires and line outages in Southern California. Mr. Ashbaker also briefed the committee on expected /17 winter operations without Aliso Canyon and the status of well testing at Aliso Canyon. Essential Reliability Services Working Group (ERSWG) and Distributed Energy Resources Task Force (DERTF) Todd Lucas, co-chair of the ERSWG, reported that the ERSWG deliverables for include: 1) assisting in the development of approved measures and 2) developing a whitepaper on the methodology for Essential Reliability Services measures sufficiency guidelines (Presentation 5.g). The Sufficiency Guideline whitepaper is expected to be presented to the OC for acceptance at its December meeting. Rich Hydzik, chair of the DERTF, reported that the DERTF deliverables for include: 1) identifying and assessing distributed energy resource impacts and 2) developing a DERTF final report by year end. The DERTF final report is expected to be presented to the OC for acceptance at its December meeting. Chair Hydzik also provided an update on the August 2-3, DER Workshop. There were over 175 registrants. Four panels discussed 1) aligning the definition, 2) observability and controls, 3) load and generation modeling, and 4) voltage and frequency performance. ERSWG Measure 6 - Ramping Troy Blalock provided an overview of the Resources Subcommittee s efforts to develop ERS Measure 6 (Ramping) using CPS1 exceedance data (Presentation 5.g.ii). ERSWG Measure 7 Reactive Capability on the System Paul Kure, chair of the Performance Analysis Subcommittee, provided a summary of the PAS s efforts to develop ERS Measure 7 (Reactive Capability on the System) using a proof-of-concept data collection methodology (Presentation 5.g.iii). SOL and IROL Monitoring Tool Leads to Unnecessary Manual Load Shedding Stephane Desbiens and Maxime Nadeau (Hydro Quebec TransEnergie) briefed the OC on an event that occurred on the Hydro Quebec TransEnergie system when a shunt reactor at La Verendrye substation, which is connected to a high voltage transmission line, was de-energized for voltage control (Presentation 7.c). When the shunt reactor was de-energized, a fault occurred in the shunt reactor breaker, which resulted in tripping of the high voltage transmission line. This sequence of events resulted in two IROL exceedances. HQT system operators implemented emergency operation control actions to restore the interface flows below the IROLs. These control actions included: 1) starting 400 MW of gas turbines, 2) curtailment of 1,000 MW of interchange transactions, 3) importing 1,000 MW of emergency energy and 4) reducing voltage in the south region. Operating Committee Minutes September 13-14, 5

6 Within 23 minutes, the interface flow was under the IROL, but still above the SOL. However, the system operator still thought he was exceeding the IROL, since he was confused from his interpretation of the operator displays. Therefore, 28 minutes after the event the system operator initiated 1,990 MW of manual load shed to restore the system within the 30 minute IROL criteria. The high voltage transmission line was restored to service 37 after the event and all load was restored 35 minutes after it was shed. HQT experienced a similar event on December 4, HQT analyzed all the EMS monitoring tools to determine if SOLs and IROLs are clearly differentiated and determined that the SOL/IROL exceedance time display was misleading and the system operators were managing emergency situations with a static control actions list in which the operator had to identify by himself the control actions to apply. As a result of this analysis, HQT upgraded the timer display to make it more ergonomic and make sure the IROLs and SOLs are more clearly differentiated and created a new tool for system operators that would help them quickly select the required control actions according to the type of exceedance. Mr. Nadeau provided an overview of the revised system operator displays and the new limit exceedance management tool. In summary, lessons learned from this event include: 1. Adequately differentiate the SOL and IROL limits in the EMS displays and the control room timer display for SOL/IROL exceedances. 2. Improve system operator simulation type training to add more stressful conditions in order to enhance their situational awareness and response during emergency operations. 3. Review on a regular basis the system operators understanding of the SOL and IROL limits and the emergency operation control actions permitted. Reliability Issues Steering Committee (RISC) Vice Chair Lloyd Linke reported that, as requested, the OC provided input on the Risk Profiles. The RISC will conduct a webinar on September 21, to further discuss the Risk Profiles and develop recommendations. Reliability Guideline: Situational Awareness for the System Operator Lauri Jones, chair of a task team to develop a reliability guideline that addresses system operator situational awareness, provided an overview of the draft Reliability Guideline: Situational Awareness for the System Operator. The OC discussed whether the guideline should be retitled to become a reference document. Ralph Rufrano moved to approve posting the draft Reliability Guideline: Situational Awareness for the System Operator for a 45-day public comment period. The committee approved the motion. Final Status Update on the BAL Field Trial Glenn Stephens, chair of the BAL Standard Drafting Team, reported that the BAL field trial started in the Eastern Interconnection in July 2005 (Presentation 7.d). This was followed by ERCOT in December 2009, Quebec in September 2010 and by balancing authorities in the Western Interconnection Operating Committee Minutes September 13-14, 6

7 in March Mr. Stephens discussed the shortfalls of CPS2 metric that led to the development of the Balancing Authority ACE Limit (BAAL) metric. Some of the conclusions drawn from the field trial were 1) BAAL requirement focuses on frequency control for the Interconnection, the correlation between CPS1 and BAAL always drives corrective actions to support frequency, and 3) the standard drafting team has not been able to establish any direct correlation between BAAL and any adverse impacts on frequency error. Adjourn and Reconvene The committee adjourned at 5:15 p.m. MST and reconvened the following morning at 8:00 a.m. MST. Joint Planning and Operating Committee Meeting James Merlo, NERC Staff, reported that NERC in planning on conducting a joint session of the Planning and Operating Committees during their December meetings. Current plans are to hold this joint session from 10:00 a.m. to 12:00 p.m. on December 13,. The joint session will allow the committees to discuss agenda items of mutual interest to both committees, for example the ERSWG report, the DERTF report, and the schedule for the State of Reliability report. The schedule change will mean that the OC s Executive Committee will have to be rescheduled to occur earlier in the morning on December 13. Draft Reliability Guideline: Inadvertent Interchange Jerry Rust provided an overview of the draft Reliability Guideline: Inadvertent Interchange (Presentation 7.e). Gerry Beckerle moved to approve posting the draft Reliability Guideline: Inadvertent Interchange for a 45-day public comment period. The committee approved the motion. Draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards Jerry Rust provided an overview of the draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards (Presentation 7.h). Gerry Beckerle moved to approve posting the draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards for a 45-day public comment period. The committee approved the motion. Generator Response to Frequency Change Due to Variable Generation Mike Hull, Salt River Project, provided an overview of a two unit frequency event that occurred on March 3, (Presentation 7.q). On March 3 two 500 kv transmission lines in the Northwest tripped, which resulted in the initiation of a remedial action scheme that dropped 1,500 MW of generation. System frequency dropped to Hz. Unit 2 was off-line at the Navajo Generating Station (NGS) for major overhaul. Units 1 and 3 were at approximately half-load and tripped offline while attempting to respond to the frequency drop. Units 1 and 3 attempted to boost frequency by rapidly increasing output. Unit 1 responded by increasing output by 42 MW in 12.3 seconds and Unit 2 increased its output by 35 MW in 12.4 seconds. Both units tripped offline due to low boiler furnace pressure. Slide 11 of Mr. Hull s presentation identifies several corrective actions that Salt River Project is pursuing as a result of this event. Proposal to Create a Disbursed Generation Resources Task Force (DGRTF) Darrel Richardson, NERC Staff, contrasted the expectations of the DERTF and the proposed DGRTF and provided a definition of DGR and DER (Presentation 7.f). The DGRTF would be considered an advisory group Operating Committee Minutes September 13-14, 7

8 to the OC and would not become active until the work of the DERTF is completed. The primary task of the DGRTF would be to ensure that the standards development process accounts for DGRs. Mr. Richardson expects to bring a proposed DGRTF scope to the OC at its December meeting for approval. The OC suggested that OC identify any gaps between the ongoing work of the ERSWG and the DERTF before moving forward with the creation of the proposed DGRTF. The OC suggested that it would identify any gaps between the ongoing work of the ERSWG and the DERTF before moving forward with the creation of the proposed DGRTF. Generating Availability Data System (GADS) Changes to Wind Data Request Instructions Donna Pratt, NERC Staff, reported that the Planning Committee approved minor revisions to the Wind Data Reporting Instructions (Presentation 7.g), which avoids having to issue a revised Section 1600 data request. Ms. Pratt provided a summary of the proposed revisions. Draft Time Monitoring Reference Document Troy Blalock, chair of the RS, provided an overview of proposed revisions to the Time Monitoring Reference Document (Presentation 7.j). He also provided a brief summary of the comments received during the 45- day public posting of the reference document. The comment period ended on September 5,. One issue that was raised by commenters was the use of the schedule offset methodology. The team that reviewed the comments decided to keep this methodology in the reference document. He reported that the Resources Subcommittee recommends OC approval of the revised reference document. Following a brief discussion, which focused primarily on the use of the schedule offset methodology, Jerry Rust moved to approve Version 4 of the Time Monitoring Reference Document. Robert Blohm presented a methodology developed with Howard Illian as to why the schedule offset method of manual time error corrections contravenes BAAL and CPS (Presentation 7.j.i). During his presentation, Mr. Blohm stated that schedule offset removes the BAAL from where it belongs and imposes a BAAL where it doesn t belong. In response, some OC members noted that the reliability standards are very clear on the calculation of BAAL and CPS. Use of schedule offset or frequency offset is immaterial. In addition, it was noted that some balancing authorities use the schedule offset methodology. Following this discussion, Peter Brandien moved to call the question. The committee approved the motion. The committee then approved the original motion. Draft Reliability Guideline: Frequency Response Sharing Troy Blalock, chair of the RS, reported the RS approved a draft Reliability Guideline: Frequency Response Sharing for the OC s consideration, however, NERC Staff has expressed some concern with the document. Therefore, he asked that the OC provide the RS with comments on the guideline. The OC suggested that this reliability guideline be dovetailed with the existing Operating Reserve Management guideline. Chair Case asked Chair Blalock to provide a status report at the OC s December meeting. Frequency Response Initiative Proposed Survey Troy Blalock, chair of the RS, noted that frequency response is essential to the reliability of the Interconnections, is essential for system restoration, and is essential for compliance with the BAL reliability Operating Committee Minutes September 13-14, 8

9 standards (Presentation 7.l). For these reasons, the RS developed the Reliability Guideline: Primary Frequency Control. Chair Blalock suggested that every BES Generator, with some exceptions (e.g. nuclear), should have a working governor and be set in accordance with the Frequency Response Guideline for system reliability and system restoration and provide primary frequency response between Pmin and Pmax. The next step in the frequency response initiative is to conduct periodic generator surveys based on selected events over multiple years to measure generator individual performance in the Western, Eastern and Quebec Interconnections. The survey would be voluntary. Webinars would by conducted in advance of the surveys to advise generator operators of the survey requirements. Chair Blalock reported that the North American Generator Forum supports this activity. Jerry Rust moved to approve conducting a multiyear, voluntary generator survey, based on no more than several real-time events per year, in the Eastern, Western and Quebec Interconnections, to measure individual generator performance. James Merlo, NERC Staff, reported that the OC needs to communicate to industry what is expected to be accomplished by this survey. The committee approved the motion. Operating Reliability Subcommittee s Recommendation Related to the Disposition of the Data Exchange Working Group (DEWG) Eric Senkowicz, chair of the ORS, reported that at its September meeting the ORS discussed the disposition of the DEWG. The ORS asked the DEWG to review its scope document and to report to the subcommittee its activities that need to continue going forward. The ORS and the DEWG will continue their review of the DEWG scope at the November ORS meeting. Chair Senkowicz expects to be able to present a recommendation to the OC at its December meeting. OC Strategic Plan and Charter Revisions Jerry Rust provided a summary of proposed revisions to the OC s strategic plan and charter (Presentation 7.n). Task team members were Todd Lucas, Keith Carman, Vice Chair Linke and Jerry Rust. Topics addressed in Mr. Rust s presentation included: 1) OC Charter, 2) OC Strategic Plan and Goals, 3) Tracking change form documentation and 4) Use of the terms endorse, accept and approve. With regard to the use of terms, the task team recommends no action on the establishment of definitions for the use of certain terms. The task team noted that in many instances it would be unwieldly to prepare a tracked change document for presentation to the OC. Therefore, the decision as to whether to develop a tracked change document will, for the most part, be left to the document development team. Mr. Rust reviewed suggested revisions to the OC strategic plan and goals. The team recommended revisions to Goals 1 through 4 and the addition of Goal 5. Kevin Conway moved to approve the OC Strategic Plan. The committee approved the motion. Mr. Rust reviewed proposed revisions to the OC Charter and suggested that the OC further consider the proposed revisions at its December meeting. Patricia Poli asked if NERC could review the current definition of the State Government sector. James Merlo, NERC Staff, will review the definition with NERC Legal. Operating Committee Minutes September 13-14, 9

10 Functional Model Advisory Group (FMAG) Jerry Rust reported that the recent posting of the Functional Model for industry comment resulted in the receipt of a few hundred pages of comments. In addition, the Standards Committee extended the comment period to 45 days from the original 30 days. Therefore, the FMAG does not have a final product to present to the OC for acceptance. The FMAG may request time on the OC s December agenda to provide an update. Eastern Interconnection Unaccounted Inadvertent Interchange Troy Blalock, chair of the RS, noted that on May 11, the RS sent a letter to all Eastern Interconnection balancing authorities to seek volunteers to participate in an unaccounted for Inadvertent Interchange trueup (Presentation 7.o). All balancing authorities have responded to this request to participate. Chair Blalock presented the completed survey results to the OC and noted that the RS recommends to the OC the approval of the balance changes for the balancing authority s inadvertent interchange balance reflected in his presentation. David Zwergel moved that the OC approves the disposition of the Eastern Interconnection unaccounted for inadvertent interchange as proposed by the Resources Subcommittee. The committee approved the motion. Midyear Review of OC and Subcommittee Work Vice Chair Linke provided a status report of the OC s accomplishments and those of its subcommittees to date in addressing the many items identified in the work plan. Chair Case reminded the committee s Executive Committee and subcommittee leadership that in the near future he will be scheduling a meeting to develop next year s work plan. NERC Data Repository for Generator Survey Data Troy Blalock, chair of the RS, reported that he has provided NERC all of the generator data collected during the Eastern Interconnection Frequency Response Initiative. It is expected that NERC will post the data to website where it can be used by members of the Resources Subcommittee and other NERC Staff to perform data analysis. Lessons Learned During Recent Flooding in Entergy Service Area Chair Case provided an overview of the recent flooding in the New Orleans and Baton Rouge portions of the Entergy service area (Presentation 7.b). There was over 24 inches of accumulated rainfall in some areas. Approximately 85,000 homes were flooded and many rivers crested at new records. Entergy files an Emergency Plan with the Louisiana Public Service Commission each year and one section of that plan is specifically dedicated to a Flood Plan. Entergy conducts drills for catastrophic events, including flooding. Chair Case provided an overview of flood damages to Entergy s facilities and equipment and presented examples of how Entergy protected its facilities (e.g. stackable Tiger Dams were used in some locations to protect essential substations from floodwaters). Finally, Chair Case highlighted the challenges Entergy experienced during the restoration phase and reflected on lessons learned. Operating Committee Minutes September 13-14, 10

11 Frequency Response Annual Analysis (FRAA) Ryan Quint, NERC Staff, summarized the Frequency Response Annual Analysis (Presentation 7.p). Interconnection Frequency Response Obligation (IFRO) is the minimum frequency response necessary for the Interconnection to avoid triggering first stage UFLS for defined benchmark events. The calculated IFROs in the FRAA closely match the 2015 FRAA. Mr. Quint reviewed the Recommendations presented in this year s analysis, perhaps the most significant of which is that the IFRO values for Operating Year 2017 should remain the same as those calculated in the 2015 FRAA for use during Operating Year. Mr. Quint reported that the Resources Subcommittee approved the FRAA on August 25, and that he is seeking OC acceptance of the FRAA. The Secretary reported that the OC lost quorum to approve a motion. Chair Case directed that the Mr. Quint s presentation be sent to the OC along with the FRAA and that the Secretary conduct an ballot. Next Meeting The next meeting of the Operating Committee will be on December 13 14, in Atlanta, Georgia. Adjourn There being no further business before the Operating Committee, Chair Case adjourned the meeting on Wednesday, September 14, at 12:01 p.m. MST. Larry Kezele Larry Kezele Secretary Operating Committee Minutes September 13-14, 11

12 Exhibit A Agenda Operating Committee September 13, 1:00 5:00 p.m. (MST) September 14, 8:00 a.m. Noon (MST) Hyatt Regency Phoenix 122 North Second Street Phoenix, Arizona Introductions and Chair s Opening Remarks NERC Antitrust Compliance Guidelines and Public Announcement Agenda 1. Administrative Secretary a. Arrangements i. Safety Briefing and Identification of Exits (Hyatt Regency Staff) b. Announcement of Quorum c. Background Information i. 30TOC Membership ( 2018)* ii. OC Roster* iii. 30T32T32T30TUOC Organizational ChartU30T30T32T32T iv. 30T32T32T30TOC Charter30T30T32T32T v. Parliamentary Procedures* vi. 30T32T32T30TParticipant Conduct Policy30T30T32T32T d. Future Meetings 0T0T0T0T Meeting Dates 0T0T0T0Time 0T0T0T0TDecember 13, 0T0T0T0TDecember 14, 0T0T0T0T2017 Meeting Dates 0T0T0T0Time 0T0T0T0TMarch 7, T0T0T0TMarch 8, T0T0T0TJune 6, T0T0T0TJune 7, 201 0T0T0T0TSeptember 12, T0T0T0TSeptember 13, T0T0T0T1:00 to 0T0T0T0T8:00 a.m. 0T0T0T0TLocation 5:00 p.m. (Eastern) to Noon (Eastern) 0T0T0T0T1:00 to 0T0T0T0T8:00 a.m. 0T0T0T0T1:00 to 0T0T0T0T8:00 a.m. 0T0T0T0T1:00 to 0T0T0T0T8:00 a.m. 0T0T0T0TLocation 5:00 p.m. to Noon 5:00 p.m. to Noon 5:00 p.m. to Noon 0T0T0T0THotel 0T0T0T0TAtlanta, GA 0T0T0T0THotel 0T0TBD 0T0TBD 0T0TBD 0T0TRitz Carlton Buckhead 0T0TBD 0T0T0T0TBD 0T0T0T0TBD

13 2. Consent Agenda Chair Case a. June 7 8, Draft OC Meeting Minutes* Action: Approve Background: None Presentation: Duration: 5 minutes No Objective: Approve consent agenda. b. Appointment of Performance Analysis Subcommittee Officers Background Items: June 7 8, Draft OC Meeting Minutes Action: Approve Objective: The PAS recommends the appointment of Paul Kure, RF, as PAS chair and Maggie Peacock, WECC, as PAS vice chair. Background: In accordance with the PAS scope, the subcommittee chair and vice chair are appointed by the chairs of the Planning and Operating Committees for one two year term. Presentation: No Duration: 5 minutes Background Items: None 3. Chair s Remarks a. Welcome to new OC Members i. Doug Hils Duke Energy (Investor Owned Utility Sector) ii. Sidney Jackson Rochester Public Utilities (Minnesota) (State/Municipal Utility Sector) iii. Stephane Desbiens Hydro Quebec TransEnergie (Federal/Provincial Sector) iv. Allen Schriver NextEra Energy Florida Power and Light (Merchant Electricity Generator Sector) v. Connie Davis DPU Cleveland Public Power (Small End Use Electricity Customer Sector) vi. Peter Brandien ISO New England (ISO/RTO Sector) b. Report on August 10, Member Representatives Committee Meeting and the August 11, Board of Trustees Meeting* 4. OC Action Items Review* Vice Chair Linke Action: None Objective: Review and discuss open action items from prior OC meetings. OC Strategic Plan Goal: This is an administrative item. Background: The OC Action Item list will be reviewed near the beginning of each OC meeting, with the intent to reach prompt resolution. Presentation: Duration: 10 minutes Background Items: Revised OC Action Item List No 5. Subcommittee Status Reports a. Nominating Subcommittee Chair Jerry Rust Agenda Operating Committee Meeting September 13 14, 2

14 Action: Approve Objective: Elect OC members to serve on its Nominating Subcommittee OC Strategic Plan Guiding Principle: This is an administrative item. Action Item Number: None Background: The OC s Annual Election created a vacancy on its Nominating Subcommittee. The OC will conduct an election to fill the vacancy. Presentation: Duration: 5 minutes Background Items: None No i. OC Executive Committee Election Jerry Rust Action: Approve Objective: Elect OC members to serve on its Executive Committee OC Strategic Plan Guiding Principle: This is an administrative item. Action Item Number: None Background: The OC s Annual Election created a vacancy on its Executive Committee. The OC will conduct an election to fill the vacancy. Presentation: Duration: 5 minutes Background Items: None No b. Operating Reliability Subcommittee* Chair Eric Senkowicz c. Resources Subcommittee* Chair Troy Blalock d. Event Analysis Subcommittee* Chair Hassan Hamdar i. Revised ERO Event Analysis Process* Chair Hassan Hamdar Action: Approve Objective: Review, discuss and approve, for a 45 day posting, revisions to the ERO Event Analysis Process. OC Strategic Plan Guiding Principle: Continually strive for excellence in event analysis (EA), emerging cause code trending, and information sharing. Action Item Number: None Background: The EAS drafted a revised EAP redline and a justification letter for the suggested changes to Category 1g and 3a of the ERO Event Analysis Process. The justification letter provides the explanation for the changes to the ERO Event Analysis Process categories 1g and 3a requested by the ERCOT region. The EAS has reviewed the need and justification and agrees that the change is appropriate. The EAS is seeking approval from the Operating Committee to post a revised ERO Event Analysis Process that incorporates the changes described below for a 45 day industry comment period. If there is no negative industry response to the change, the EAS will move forward and request approval of the revised ERO Event Analysis Process at the December Operating Committee meeting with an effective date on January 1, Presentation: Yes Duration: 10 minutes Background Items: 1. Revised ERO Event Analysis Process (red line) Agenda Operating Committee Meeting September 13 14, 3

15 2. Justification for Event Category 1g and 3a Changes for ERCOT e. Personnel Subcommittee* Chair Lauri Jones f. Reliability Assessment Subcommittee Phil Fedora, NPCC i. July WECC Update on Aliso Canyon Steve Ashbaker, WECC ii. Short Term Special Assessment: Single Points of Disruption on Natural Gas Infrastructure Amir Najafzadeh, Senior Engineer, Reliability Assessment Action: None Objective: Review and discuss a draft scope for this Short Term Special Assessment and form an advisory group to support development of the assessment. OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications. Action Item Number: None Background: The North American Bulk Power System is undergoing an unprecedented change in the composition of the resource mix. An over reliance on one fuel type can have severe effects as a result of one single point of disruption. This assessment will underscore the potential reliability impacts associated with single points of failure, such as pipeline outages, an over reliance on LNG that could be hampered by transport concerns, or another similar storage outage such as Aliso Canyon. Presentation: Duration: 15 minutes Yes Background Items: Draft Short Term Special Assessment Scope g. Essential Reliability Services Working Group Co Chair Todd Lucas i. Distributed Energy Resources Task Force Chair Rich Hydzik ii. ERSWG Measure 6 (Ramping) Troy Blalock, RS Chair iii. ERSWG Measure 7 (Reactive Capability on the System) Paul Kure, PAS Chair 6. Reliability Issues Steering Committee Status Report Vice Chair Linke 7. Committee Matters a. Reliability Guideline: Situational Awareness for the System Operator* Lauri Jones Action: Approve Objective: Review, discuss and approve for a 45 day public comment period a draft Reliability Guideline: Situational Awareness for the System Operator. OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications. Action Item Number: Agenda Operating Committee Meeting September 13 14, 4

16 Background: At its September 2015 meeting, the OC assigned a task team, chaired by Lauri Jones, with representatives from the ORS and the EAS to develop a strawman guidance document. Ms. Jones will provide an overview of the team s final draft Reliability Guideline: Situational Awareness for the System Operator for the OC s consideration to post for a 45 day public comment period. Presentation: Yes Duration: 15 minutes Background Items: Draft Reliability Guideline: Situational Awareness for the System Operator b. Lessons Learned During Recent Flooding in Entergy Service Area Chair Case Action: None Objective: Chair Case will provide an overview of Entergy s efforts to minimize BES damage due to a 500 year rain event in its service territory. OC Strategic Plan Guiding Principle: Continually strive for excellence in event analysis (EA), emerging cause code trending, and information sharing. Action Item Number: None Background: Chair Case will illustrate actions taken by Entergy to minimize BES damage to its system during an unpreceded extreme weather event called a monsoon depression. This a rare flooding event that was caused by an unusual meteorological phenomenon. According to the NOAA Weather Prediction Center: The best description of this system is that of a sheared inland tropical depression or a monsoon depression. Presentation: Yes Duration: 10 minutes Background Items: None c. SOL and IROL Monitoring Tool Leads to Unnecessary Manual Load Shedding Maxime Nadeau, Hydro Quebec TransEnergie Action: None Objective: Mr. Nadeau will provide an overview an HQT event impacting the SCADA system and the actions and lessons learned from the event. OC Strategic Plan Guiding Principle: Continually strive for excellence in event analysis (EA), emerging cause code trending, and information sharing. Action Item Number: None Background: Mr. Nadeau will be sharing his observations of a SCADA failure event and the trouble shooting and lessons learned from the event. Presentation: Duration: 30 minutes Background Items: None Yes d. Final Status Update on the BAL Field Trial Glenn Stephens, Chair of the BAL Standard Drafting Team Action: None Objective: Review and discuss the final status update on the BAL Field Trial. OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other Agenda Operating Committee Meeting September 13 14, 5

17 operational compliance clarifications. Action Item Number: Background: The BARC SDT provided an overview of the field trial at the June 2014 and September 2014 OC meetings and developed a Preliminary Report. The NERC Board of Trustees approved BAL and the standard was filed at FERC on April 4, The BARC SDT expects the field trial to remain in place until its FERC approved compliance enforcement date, after which a final status update on the BAL field trail will be provided to the OC. BAL became effective on July 1,. Presentation: Duration: 15 minutes Background Items: None Yes e. Draft Reliability Guideline: Inadvertent Interchange* Jerry Rust Action: Approve Objective: Review, discuss and approve for posting for a 45 day comment period. OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications. Action Item Number: Background: At its December 2015 meeting, the OC approved the development of an Inadvertent Interchange Reliability Guideline by the Project Standard Drafting Team and the Resources Subcommittee. Presentation: No Duration: 15 minutes Background Items: Draft Reliability Guideline: Inadvertent Interchange f. Proposal to Create a Disbursed Generation Resources Task Force Darrel Richardson, Senior Standards Developer Action: None Objective: Review and discuss the creation of a Disbursed Generation Resources Task Force, which would report to the OC. OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues. Action Item Number: None Background: The OC will be briefed on a proposal to create a Disbursed Generation Resources Task Force. It is expected that a scope for the DRGTF would be presented to the OC for approval at its December meeting. Presentation: Duration: 15 minutes Background Items: None Yes g. Generating Availability Data System (GADS) Changes to Wind Data Request Instructions Donna Pratt, Senior Performance Analysis Advisor Action: None Objective: Review and discuss GADS changes to the Wind Data Request Instructions. Agenda Operating Committee Meeting September 13 14, 6

18 OC Strategic Plan Guiding Principle: Maintain the structure, processes and relationships with other NERC standing committees, and foster relationships with other forums, to achieve high levels of reliability for the BES. Action Item Number: None Background: While this is an approval item on the Planning Committee s agenda, this topic is being presented to the OC for information purposes only. Presentation: Duration: 10 minutes Background Items: None Yes h. Draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards* Jerry Rust Action: Approve Objective: Review, discuss and approve for posting for a 45 day comment period. OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications. Action Item Number: Background: At its December 2015 meeting, the OC approved the development of a Reporting ACE Reliability Guideline by the Project Standard Drafting Team and the Resources Subcommittee. Presentation: No Duration: 15 minutes Background Items: Draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards i. Western Electricity Coordinating Council Mike Moon, Vice President Compliance Action: None Objective: Mr. Moon will update the OC on WECC activities related to 1) event analysis and compliance, 2) risk assessment, and 3) collaboration between the Regional Entity and the entities. OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues. Action Item Number: Background: None Presentation: Yes Duration: 25 minutes Background Items: None j. Draft Time Monitoring Reference Document Troy Blalock, RS Chair Action: Approve Objective: Review, discuss, and approve the draft Time Monitoring Reference Document. OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications. Agenda Operating Committee Meeting September 13 14, 7

19 Action Item Number: Background: At its June meeting, the OC approved a motion that Version 4 of the Time Monitoring Reference Document be posted to the OC for comments through June 30,. The Resources Subcommittee and Operating Reliability Subcommittee will work with the BAL 004 drafting team to incorporate comments. On July 21, the draft Time Monitoring Reference Document was posted for a 45 day public comment period. The comment period ended on September 5. RS developed the draft Time Monitoring Reference Document, which specifies how manual Time Error Corrections (MTEC) are to be implemented if needed to resolve issues and outlines procedural responsibilities assigned to the time monitor. Presentation: Duration: 20 minutes Background Items: 32T32TDraft Time Monitoring Reference Yes Document32T32T k. Draft Reliability Guideline: Frequency Response Sharing* Troy Blalock, RS Chair Action: Approve Objective: Review, discuss and approve for posting for a 45 day comment period. OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications. Action Item Number: None Background: The Resources Subcommittee developed and approved, by ballot, the draft Reliability Guideline: Frequency Response Sharing. The RS is requesting OC approval to post the draft Reliabiltiy Guideline for a 45 day comment period. Presentation: Duration: 15 minutes Yes Background Items: Draft Reliability Guideline: Frequency Response Sharing l. Frequency Response Initiative Proposed Survey Troy Blalock, RS Chair Action: Approve Objective: Review, discuss and approve a Generator Data Survey. OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues. Action Item Number: None Background: At the July RS meeting, RS Chair Blalock presented an update on the Frequency Response Initiative. The update included a presentation given by Chair Blalock at the NAGF Primary Frequency Response Workshop and the Standard BAL Implementation Workshop. The RS discussed a proposed survey to collect generator data during selected frequency events to allow for analysis of Interconnection frequency response modeling. Following this discussion, the RS approved a motion that it recommend to the OC, and potentially to the Planning Committee, the approval of a generator data survey to be coordinated by Interconnection over multiple years to assess generator primary frequency response. Further this effort will involve outreach to the generators, with coordination with NAGF, to support the existing generation fleet to provide the capability of providing primary frequency response. Agenda Operating Committee Meeting September 13 14, 8

20 In addition to OC approval of the proposed survey, NERC Executive Management will also need to review and approve the proposed survey. Presentation: Duration: 10 minutes Background Items: None Yes m. Operating Reliability Subcommittee s Recommendation Related to the Disposition of the Data Exchange Working Group Eric Senkowicz, ORS Chair Action: Approve Objective: Review, discuss and approve the ORS s recommendation related to the disposition of the Data Exchange Working Group and the Telecommunications Working Group. OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues. Action Item Number: None Background: At its February meeting, ORS Chair Senkowicz tasked reliability coordinator subcommittee members with contacting their Data Exchange Working Group members to determine the continued need for the DEWG and the TWG. If the DEWG should remain in existence, should it continue to report to the ORS or should it report to another organization such as the Eastern Interconnection Data Sharing Network? Presentation: Duration: 10 minutes Background Items: None No n. OC Strategic Plan and Charter Revisions* Jerry Rust Action: Approve Objective: Review, discuss and approve proposed revisions to the OC Strategic Plan and the OC Charter. OC Strategic Plan Guiding Principle: This is an administrative item. Action Item Number: Background: At its March meeting, Chair Case tasked Jerry Rust (chair), Keith Carman, Lloyd Linke and Todd Lucas with reviewing and updating the OC strategic plan and Charter. Presentation: Duration: 15 minutes No Background Items: 1. Draft OC Strategic Plan (Red line) 2. Draft 2020 OC Strategic Plan (Clean) 3. Revised Draft of the OC Charter (Red line) o. Eastern Interconnection Unaccounted Inadvertent Interchange Troy Blalock, RS Chair Action: Approve Objective: Review, discuss and approve a RS recommendation that addresses the accumulated EI Unaccounted for Inadvertent Interchange. OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues. Action Item Number: None Agenda Operating Committee Meeting September 13 14, 9

21 Background: The unaccounted for Inadvertent Interchange true up is the result of Inadvertent Interchange in the Eastern Interconnection accumulating to a non zero amount. This happened due to a number of errors that have occurred over many years and, at this point, can no longer be traced back to their origins. The unaccounted for Inadvertent balances are the following: On Peak: 45,410 MWHrs Off Peak: 100,647 MWHrs Total: 55,239 MWHrs In order to achieve a Interconnection net zero Inadvertent balance, the Resources Subcommittee asked BAs if they would like to participate in an Inadvertent true up. The true up would consist of allocating Inadvertent amongst the participating BAs in the opposite direction of the above balances. The unaccounted for Inadvertent balances will be spread among the interested BAs based on their individual biases. Each BA had the opportunity to participate in the true up to a MWh amount specified in the BA participation survey. Allocations will be made on individual biases and not exceeding the values listed in the survey per the BA. At its July meeting, the RS approved the following motion for consideration by the OC: RS recommends to the OC approval of the below balance changes for the BA s inadvertent balance indicated below. Presentation: Yes Duration: 10 minutes Background Items: None p. Frequency Response Annual Analysis* Ryan Quint, Senior Engineer, System Analysis Agenda Operating Committee Meeting September 13 14, 10