March 11, 2020, 8:00 a.m. to 2:00 p.m. - WECC Board Meeting... · 2020-03-05 · WECC Board of Directors Meeting Agenda Salt Lake City, Utah Webinar Link | Dial-in Number: 1-415-655-0003,

WECC Board of Directors

Meeting Agenda

Salt Lake City, Utah

Webinar Link | Dial-in Number: 1-415-655-0003, Attendee Access Code: 800 687 872

March 11, 2020, 8:00 a.m. to 2:00 p.m.

1. Welcome, Call to Order, Introductions—Kris Hafner

2. Review WECC Antitrust Policy—Steven Goodwill

WECC Antitrust Policy.

3. Approve Agenda

4. Consent Agenda

Approval Item: Minutes of December 4, 2019 Meeting

Approval Item: Governance Committee Charter

Approval Item: Operating Committee Charter

Approval Item: Joint Guidance Committee Charter

Approval Item: Member Advisory Committee Charter

Approval Item: Location for 2021 Annual Meeting

5. Review of December 4 and January 22 Closed Sessions—Kris Hafner

6. NERC CEO Remarks—James Robb

7. Independence Principles—Kris Hafner

8. Remarks and Reports

WECC President and CEO—Melanie Frye

Reliability and Security Oversight—Steven Goodwill

Member Advisory Committee—Russ Noble

Western Interconnection Regional Advisory Body—Jordan White

Open Session Board Meeting Book - Agenda

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https://wecc.webex.com/wecc/j.php?MTID=meaf8900077e56a9e62fde790dfcb2336

https://www.wecc.biz/_layouts/15/WopiFrame.aspx?sourcedoc=/Corporate/Antitrust%20Policy.pdf&action=default&DefaultItemOpen=1

Board Meeting Agenda March 11, 2020

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9. Public Comment

10. Reliability Workshop: Key Themes—Branden Sudduth

11. Board Committee Reports

Section 4.9 Review Committee—Ric Campbell

Finance and Audit Committee—Joe McArthur

Standards Committee—Jim Avery

Approval Item: WECC Regional Variance to PRC-006-3

Governance Committee—Gary Leidich

Human Resources and Compensation Committee—Richard Woodward

Nominating Committee—Shelley Longmuir

12. Technical Committee Reports

Joint Guidance Committee—Branden Sudduth

Market Interface Committee—Layne Brown

Reliability Assessment Committee—Dave Angell

Operating Committee—Bert Peters

13. Review of New Action Items

14. Review Upcoming Meetings

June 16-17, 2020 ...............................................................................Salt Lake City, UT

September 10-11, 2020 ....................................................................Henderson, NV

December 8-9, 2020 .........................................................................Salt Lake City, UT

15. Closed Session

16. Adjourn

Open Session Board Meeting Book - Agenda

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Board of Directors Meeting

Approval Item

Consent Agenda

March 11, 2020

155 North 400 West | Suite 200 | Salt Lake City, Utah 84103www.wecc.org

Background

The consent agenda for this meeting consists of:

Meeting Minutes from December 4, 2019WECC’s technical editor, the CEO, and the corporate secretary have reviewed the draft minutes. They have been distributed to each director; corrections and suggestions have been incorporated. A copy of the minutes follows.

Charter of the Governance Committee (GC)The GC is expected to approve revisions to its charter at its meeting on March 10, 2020. A redline version follows.

Charter of the Operating Committee (OC)The OC approved revisions to its charter at its meeting on February 21, 2020. A redline version follows.

Charter of the Joint Guidance Committee (JGC)The JGC approved revisions to its charter at its meeting on December 3, 2019. A redline version follows.

Charter of the Member Advisory Committee (MAC)The MAC approved revisions to its charter at its meeting on December 3, 2019. A large number of formatting changes makes attaching a redline version impractical. What accompanies this sheet is a memo explaining the changes and a clean version.

The Location of the 2021 Annual Member MeetingThe Board of Directors is responsible for setting the location of the Annual Member Meetingand has directed that the meeting be held at various places in the interconnection to increase stakeholder access to WECC. Based on meeting history, costs, and availability, staff recommends that the 2021 Annual Meeting be held in Newport Beach, California.

Recommendation

Staff believes that each of these items is non-controversial and appropriate for this consent agenda.

Open Session Board Meeting Book - Consent Agenda

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Board of Directors

DRAFT Meeting Minutes

December 4, 2019


1. Welcome, Call to Order, Introductions

Kris Hafner, WECC Board of Directors (Board) Chair, called the meeting to order at 8:00 a.m. on December 4, 2019. All directors were present. A list of attendees is attached as Exhibit A. Ms. Hafner asked attendees to introduce themselves.

2. Review WECC Antitrust Policy

Steve Goodwill, Corporate Secretary, read aloud the WECC Antitrust Policy statement. The meeting agenda included a link to the posted policy.

3. Resolution of Appreciation

Ian McKay moved the following resolution, which was approved unanimously with Mike Core abstaining.

Whereas, Mike Core has served on the WECC Board of Directors since 2014 as an Independent Director, displaying a level of diligence, expertise, and collegiality that has been instrumental in the development of WECC as an independent social welfare organization; and,

Whereas, Mr. Core has served with distinction as the chair of the Governance Committee, the chair of the Standards Committee, and as a valued member of the Nominating Committee, the Compliance Hearing Body, the Finance and Audit Committee, and the Human Resources and Compensation Committee; and,

Whereas, Mr. Core has devoted years of service to our industry, including 12 years as president and CEO of Big Rivers Electric Corporation, chair of East Central Area Reliability, a member of the NERC Stakeholder Committee, and executive positions at Indiana and Ohio electric co-op organizations.

Now therefore be it resolved, That the WECC Board of Directors, on behalf of the stakeholders of the Western Interconnection, extends its sincere gratitude to Mr. Core for his years of conscientious service toward the reliability and security of the Western Interconnection’s bulk power system.

Be it finally resolved, That this resolution—adopted unanimously by the undersigned Directors this 4th day of December 2019—be included in the minutes of this Board.


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Board Meeting Minutes—December 4, 2019

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Mike Core spoke of his experience in the industry and his appreciation for WECC and those with whom he has worked.

4. Approve Agenda

Ms. Hafner introduced the proposed meeting agenda.

On a motion by Richard Woodward, the Board approved the agenda.

5. Review and Approve Previous Meeting Minutes

Ms. Hafner introduced the minutes from the September 11, 2019, meeting.

On a motion by Mr. Core, the Board approved the September 11, 2019, minutes.

6. Review of Previous Closed Sessions

Ms. Hafner reported that, in a closed session on September 11, the Board heard reports on enterprise risk management and data security and discussed compliance monitoring and enforcement matters.

7. Remarks and Reports

a. CEO Report*

Melanie Frye, WECC CEO, noted that the reliability coordination (RC) transition was completed and, effective December 3rd, Peak Reliability had ceased RC operations. She recognized various WECC staff members for their work on this important issue and the staff of Peak Reliability for its solid work.

Ms. Frye gave a presentation reviewing WECC’s cultural transformation, activities, and scorecard. She also addressed WECC’s view of California’s public safety shutoffs and the GridEx security exercise. In response to a Director’s question about meeting staffing challenges, Ms. Frye reviewed WECC’s efforts to be an employer of choice.

b. Reliability and Security Oversight*

David Godfrey, VP of Reliability and Security Oversight, and Mr. Goodwill, VP of Enforcement, reviewed WECC efforts to improve compliance through training, outreach, culture building, and tailored compliance monitoring. They also reviewed

* Report was accompanied by slides. The slides are kept with the minutes book for this meeting in the office of the Corporate Secretary.


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WECC’s processing metrics and the trends around critical information protection violation reporting.

Directors asked questions about the drivers and processing of the violation backlog, benchmarks and targets for processing violations, the usefulness of processing metrics, and the efficacy of the risk-based approach.

c. Member Advisory Committee

Russell Noble, Chair of the Member Advisory Committee (MAC), reviewed how the MAC has decided to handle its leadership, and how it plans to engage on reliability issues, member communication, and the Section 4.9 review. He described MAC’s interest in the Net Energy for Load assessment calculation.

d. Western Interconnection Regional Advisory Body

Maury Galbraith, Executive Director of the Western Interstate Energy Board, was joined by Jordan White, Western Interconnection Regional Advisory Body (WIRAB) Vice Chair. He reviewed WIRAB interactions with FERC and the Department of Energy and noted disagreement between the results of NERC and other studies. Board members discussed the differences between studies and study approaches.

e. Western Interconnection Compliance Forum

Pablo Oñate, Western Interconnection Compliance Forum (WICF) Chair, reviewed the most recent meetings and reported on attendee feedback and website engagement statistics. Mr. Oñate previewed an upcoming workshop in Portland and noted that a new chair will be appointed before the next meeting of the Board. In response to a question about his expectation of violation processing time, Mr. Oñate said that he was glad WECC takes the time to thoughtfully process violations.

8. Public Comment

Ms. Hafner opened the meeting to comment. Fred Heutte, Northwest Energy Coalition commended WECC for the success of the reliability coordination transition.

9. ERO Enterprise Long-Term Strategy*

Ms. Frye reviewed the background on this item and reported that NERC has asked that the regional entities acknowledge that the strategy is changing. The Board discussed the difference



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between an “endorsement” and an “acknowledgement” and Ms. Hafner shared the regional entities’ thinking on this matter.

On a motion by Ms. Frye, the Board unanimously approved the following resolution:

Resolved, that the WECC Board of Directors, understanding that the draft ERO Enterprise Long-Term Strategy will be presented to the NERC Board of Trustees (BOT) for approval on December 14, 2019, hereby recognizes that document as a fruitful collaboration by NERC and the Regional Entities and acknowledges that it will serve as a valuable input to the WECC strategic planning process.

10. Cold Weather Event Report*

Tim Reynolds, WECC staff, and Heather Polzin, FERC staff, gave a presentation on an event that occurred in the Eastern Interconnection in January 2018. They lead a discussion on implications for the Western Interconnection and answered questions from Board members about gas supply, seasonal ratings, and standards changes arising from the event.

11. Reliability Coordination*

Branden Sudduth, VP of Reliability Planning and Performance Analysis, recognized the work accomplished by the industry and members of the WECC staff. He briefly reviewed the transition activities over the past year and previewed next steps. Mr. Sudduth reported that RC updates will continue under the Operating Committee.

12. Interconnection Resource Adequacy*

Matthew Elkins, WECC staff, previewed a new resource adequacy dashboard WECC is developing. Board members asked questions about interaction with policy makers, peak hours, and after-the-fact testing of predictions.

13. Board Committee Reports

a. Section 4.9 Work Group

Ric Campbell, Section 4.9 Committee Chair, reviewed the committee’s work since its formation and introduced the issues statements to be approved at this meeting.

On a motion by Mr. Campbell, the Board unanimously approved the following:



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Resolved, that the WECC Board of Directors (Board), acting on the recommendation of the Section 4.9 Review Committee at the meeting of the Board on December 4, 2019, approves the Review Issues Statements as presented and attached.

More information is attached as Exhibit B.

b. WECC Standards Committee*

James Avery, WECC Standards Committee Chair, introduced the items for Board approval at this meeting. Steve Rueckert, WECC staff, reviewed the balloting results of the proposed criteria.

On a motion by Mr. Avery, the Board unanimously approved the following:

Resolved, that the WECC Board of Directors (Board), acting on the recommendation of the WECC Standards Committee at the meeting of the Board on December 4, 2019, approves WECC Regional Criterion INT-011-WECC-CRT-4 as presented and attached.

More information is attached as Exhibit C.


Resolved, that the WECC Board of Directors (Board), acting on the recommendation of the WECC Standards Committee at the meeting of the Board on December 4, 2019, approves WECC Regional Criterion INT-018-WECC-CRT-2 as presented and attached.

More information is attached as Exhibit D.


Resolved, that the WECC Board of Directors (Board), acting on the recommendation of the WECC Standards Committee (WSC) at the meeting of the Board on December 4, 2019, approves the WSC Charter as presented and attached.

More information is attached as Exhibit E.

c. Human Resources and Compensation Committee

Richard Woodward, Human Resources and Compensation Committee (HRCC) Chair, reviewed the open and closed sessions that preceded this meeting.



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d. Nominating Committee

Shelley Longmuir, Nominating Committee Chair, reported that the committee has formed and will have its first meeting in January.

e. Finance and Audit Committee

Joe McArthur, Finance and Audit Committee Chair, reviewed the recent committee meeting and reported that WECC is projected to end the year about a million dollars under budget. The primary drivers of the result are better-than-expected investment performance and employee vacancies.

14. Technical Committee Reports

a. Joint Guidance Committee*

Branden Sudduth, Joint Guidance Committee (JGC) Co-Chair, reported that the committee has met all its goals for the year. He reviewed proposed changes to the JGC Charter and previewed the upcoming reliability workshop and development of near-term priorities.

b. Reliability Assessment Committee*

Dave Angell, Reliability Assessment Committee (RAC) Chair, reviewed proposed changes to the RAC structure and explained the rationale for those changes. Mr. McKay noted that the charter of the RAC is unclear about whether the committee has authority to reorganize its subgroups and suggested that this be changed.

On a motion by Mr. McKay, the Board unanimously voted to waive the 21-day posting requirement to allow consideration of a change to the RAC Charter.

On a motion by Mr. McKay, the Board unanimously approved the following:

Resolved, that the WECC Board of Directors, having reviewed the report of the Reliability Assessment Committee (RAC), understanding the desire of the RAC to improve its operations through reorganization, and aware that it is unclear whether, as currently chartered, the RAC has the authority to organize itself, hereby grants the RAC the authority to create and disband its subcommittees, work groups, and task forces as it sees fit, and directs WECC staff to revise the RAC Charter accordingly.



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Mr. Angell reviewed other RAC activities and answered Director questions about the status of scheduled studies, futures studies, and the relationship between studies and the changing environment.

c. Operating Committee*

Bert Peterson, Operating Committee Chair, reviewed the committee goals and reported that the Reliability Coordination Forum will be disbanded and future updates on reliability coordination functions will occur in the Operating Committee.

d. Market Interface Committee*

Robert Follini, Market Interface Committee Chair, reviewed the October meeting of the committee.

15. Review of New Action Items

No new action items were made at this meeting.

16. Upcoming Meetings

March 11, 2020...........................................................................................Salt Lake City, UT

June 17, 2020 ..............................................................................................Salt Lake City, UT

September 11, 2020 ...................................................................................Henderson, NV

17. Closed Session

Ms. Hafner requested a motion to go into closed session to discuss confidential and personnel matters.

On a motion by Mr. Campbell, the Board unanimously voted to go into closed session.

18. Adjourn

Ms. Hafner adjourned the meeting without objection at 2:30 p.m.


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Exhibit A: Attendance List

Members in Attendance

James Avery, Ric Campbell, Mike Core, Melanie Frye, Kris Hafner, Gary Leidich, Shelley Longmuir, Ian McKay, Joe McArthur, Richard Woodward

Others in Attendance

Chris Albrecht ................................................................................................................................................ WECC

Brenda Ambrosi ....................................................................................................................................... BC Hydro

Grace Anderson ..................................................................................... California Public Utilities Commission

David Angell ....................................................................................................................................... Idaho Power

Ruben Arredondo .......................................................................................................................................... WECC

Steve Ashbaker .............................................................................................................................................. WECC

Eric Baran ...................................................................................................................................................... WIRAB

Michele Beck ................................................................................................... Utah Office of Consumer Services

Julie Booth ....................................................................................................................................................... WECC

Duncan Brown ................................................................................................................................................ NAES

Alan Bull .......................................................................................................................................................... NAES

Dana Cabbell .............................................................................................................. Southern California Edison

Kevin Cordoza ................................................................................................ Eugene Water and Electric Board

Maria Denton ...............................................................................................................................Salt River Project

Matthew Elkins .............................................................................................................................................. WECC

Brian Evans-Mongeon .................................................................................................................... Utility Services

Dick Ferreira ................................................................................ Transmission Agency of Northern California

Robert Follini .................................................................................................................................................. Avista

Maury Galbraith .......................................................................................................................................... WIRAB

David Godfrey ............................................................................................................................................... WECC

Steven Goodwill ............................................................................................................................................. WECC

Maude Grantham-Richards .................................. Tri-State Generation and Transmission Association, Inc.

Ray Grippo ........................................................................................................................ Pacific Gas and Electric


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Matthew Harward ............................................................................................................. Southwest Power Pool

Fred Heutte ............................................................................................................... Northwest Energy Coalition

Brittany Huggins ........................................................................................................................................... WECC

Rich Hydzik .................................................................................................................................................... Avista

CJ Ingersoll .......................................................................................................... Gridforce Energy Management

Linda Jacobson-Quinn ................................................................................. Farmington Electric Utility Service

Lorissa Jones ................................................................................................... Bonneville Power Administration

Lise Jordan ......................................................................................................................... Pacific Gas and Electric

Krista Kisch........................................................................................................................................ Arevia Power

Jillian Lessner ................................................................................................................................................. WECC

Thad LeVar ....................................................................................................... Utah Public Service Commission

Chris Luras ................................................................................................................................................ Navigant

Andy Meyers .................................................................................................. Bonneville Power Administration

Susan Morris..................................................................................................................................................... FERC

Robert Mullin ....................................................................................................................................... RTO Insider

Megan Naylor ................................................................................................................................................ WECC

Robert Nelson .......................................................................................................... Montana Consumer Counsel

Russell Noble...................................................................................................................................... Cowlitz PUD

Colt Norrish ............................................................................................................................................. PacifiCorp

Pablo Oñate ..................................................................................................................................... El Paso Electric

Bert Peters ........................................................................................................................... Arizona Public Service

Kwin Peterson ................................................................................................................................................ WECC

Heather Polzin ................................................................................................................................................. FERC

Tim Reynolds ................................................................................................................................................. WECC

Dena Richins ................................................................................................................................................... WECC

Steve Rueckert ................................................................................................................................................ WECC

Wynne Schweitzer ......................................................................................................................................... WECC

Jim Shetler ............................................................................................... Balancing Area of Northern California


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Branden Sudduth ........................................................................................................................................... WECC

Brian Theaker ......................................................................................................................... Middle River Power

Chifong Thomas .................................................................................................................................... Smartwires

Shauna Tran........................................................................................................................... Puget Sound Energy

Richard Vine ..................................................................................................................................... California ISO

Bobbi Welch ..................................................................................................................................................... MISO

Jordan White .................................................................................................... Utah Public Service Commission

Diana Wilson .................................................................................................... Alberta Electric System Operator

Jeanine Wilson................................................................................................................................................ WECC


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EXHIBIT B

Section 4.9 Review Committee

Recommended Issues Statements

November 11, 2019

155 North 400 West | Suite 200 | Salt Lake City, Utah 84103 www.wecc.org

1. Stakeholder Engagement Model

WECC has a long history of collaboration with members and staff working together to promote and improve reliability of the Western Interconnection. These working partnerships have primarily been in the form of technical standing committees. Over time, many subcommittees and work groups have been formed to address problems and issues as they have arisen. More recently, participation on the standing committees has waned as work has moved to the standards committee, the Reliability Coordinator, or has been performed at NERC.

This review will take a focused look at the process for engaging members and other stakeholders in the collaborative work of WECC. Could WECC and member companies operate more efficiently and effectively if the standing structure of current committees were replaced by a task force model with subject matter experts engaged on specific tasks rather than being members of a standing committee? Are there other models that may enable WECC to optimize stakeholder engagement? What lessons have we learned from the creation of the RAC? How well does the current structure address emerging risks and threats to reliability? Is the current structure nimble enough to address immediate concerns as they arise? Should the sheer number of committees, subcommittees, and task forces be evaluated for the possibility of elimination or consolidation?

2. Strategic Planning Process

The WECC strategic planning process has been evolving since the last Section 4.9 review. In the 2015 Section 4.9 Report, one recommendation proposed a strategic, three-year operating planning process to encourage strong working partnerships between the Standing Committees, TEPPC, and the MAC. In 2016, the WECC Board of Directors developed a Strategic Direction Outline which included five strategic focus areas. Also, during this year, a 2017-2020 Operating Plan was developed. In 2017, the ERO Enterprise Framework was finalized, the WECC Strategic and Operating Planning Process was developed, and the 2018-2020 Operating Plan was revised to align with the ERO Enterprise Operating Plan. In 2019, NERC has revisited is ERO Enterprise Long-Term Strategy, eliminating the three-year operating plan.

The electric industry continues to experience a rapidly changing environment. The level of variable generation in the resource mix and the increased use of digital control technologies present new risks to the reliability and security of the electric grid. Additional risks and threats will undoubtedly continue to emerge. With the ERO Enterprise revising its long-term strategy, how will these changes impact WECC? How can WECC improve and streamline its strategic planning process? How can WECC


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4.9 Review Issues Statements

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continue to align with the ERO Enterprise Long-Term Strategy, while reflecting the uniqueness of the West? What are the long-term focus areas? How does WECC ensure member and stakeholder involvement in the strategic planning process? Is the biennial Western Reliability Summit a useful method to gather input for the strategic plan? How long should the strategic planning horizon be?


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EXHIBIT C

WECC Criterion

INT-011-WECC-CRT-4


Introduction

Title: Ten-Minute Recallable e-Tag Functionality

Number: INT-011-WECC-CRT-4

Purpose: To define the use of 10-minute recallable e-Tags as Operating Reserve—Supplemental (ORS)

Applicability: This document applies only to those entities whose market rules allow for 10-minute recallable transactions.

4.1. Functional Entities:

4.1.1. Any NAESB1 Registered Entity (NRE)2, such as a Purchasing-Selling Entity, Load-Serving Entity, Generating-Serving Entity, or Balancing Authority, that creates an e-Tag by submitting an RFI.

4.1.2. Balancing Authority

Effective Date: The first day of the first quarter following WECC Board of Director approval.

1 North American Energy Standards Board 2 The term “NRE” refers to entities registered in the NAESB Electronic Industry Registry (EIR).


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INT-011-WECC-CRT-4 Ten-Minute Recallable e-Tag Functionality

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Requirements and Measures

Each NRE (Tag Author) submitting a Request for Interchange (RFI) for 10-minute recallable transactions for ORS shall specify each of the following:

1) Transaction type option set to “recallable”;

2) Both the source point and sink point are located within the Western Interconnection;

3) Energy product type option in the first segment of the market path set to “C-RE.”

WM1. Each NRE (Tag Author) submitting an RFI for 10-minute recallable transactions for ORS will have evidence that it specified in that request each of the items required in WR1.

Each NRE and each Source Balancing Authority activating 10-minute recallable transactions for ORS shall decrease the market level profile through an adjustment to the electronic tag to include each of the following characteristics:

1) A start time that is no earlier than 10 minutes prior to the submittal time.

2) A default start time ramp duration of zero minutes.

WM2. Each NRE and each Source Balancing Authority submitting an adjustment to a 10-minute recallable transaction for ORS will have evidence that it submitted a downward e-Tag market level profile adjustment for that activation and that the e-Tag included each of the characteristics required in WR2.

Each Source Balancing Authority and each Sink Balancing Authority receiving a market level profile adjustment request for a 10-minute recallable transaction shall approve the request.

WM3. Each Source Balancing Authority and each Sink Balancing Authority receiving a market level profile adjustment request for a 10-minute recallable transaction will have evidence that, upon receipt of a downward e-Tag market profile adjustment for 10-minute recallable transactions, it approved the request as required in WR3.

Where an entity has not received a request per WR3, a written statement to that effect is sufficient to show adherence.


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Version History

Version Date Action Change Tracking

1 March 6, 2008 Approved by the Operating Committee

Initial

1 August 31, 2009 Converting current approved Business Practice (INT-BPS-011-1) into new Regional Criterion format—no other changes are being submitted

No other change

2 September 5, 2012 WECC Board of Directors changed designation from “CRT” to “RBP.”

Designation change

2 March 13, 2013 WECC Board of Directors Approved

Developed as WECC-0079. Redraft as part of the INT Rewrite Project

2 June 25, 2014 WECC Board of Directors changed designation from “RBP” to “CRT.”

Designation change

3 June 24, 2015 WECC Board of Directors Approved

Developed as WECC-0110. Align the INT with BAL-002-WECC-2, Contingency Reserve

3 April 1, 2016 Errata Converted to new template 3.1 June 18, 2019 Errata Converted to newest template

Version Table for Version 3 changed from “No change” to “Errata” for uniformity.

4 TBD In Version 4: 1) the title was shortened, 2) “BAM” was replaced with NAESB NRE throughout, 3) footnotes were added to explain NAESB and NRE, 4) “in the first segment of the market path” was added to WR1.3., 5) syntax was clarified in WR2, 6) “BA” was replaced with “Balancing Authority” as needed, 7) “downward” was deleted in WR3/WM3 and replaced with “market level profile”, 8) a “Use of Capitalized Terms” section was added to the Rationale section.

WECC receives data used in its analyses from a wide variety of sources. WECC strives to source its data from reliable entities and undertakes reasonable efforts to validate the accuracy of the data used. WECC believes the data contained herein and used in its analyses is accurate and reliable. However, WECC disclaims any and all representations, guarantees, warranties, and liability for the information contained herein and any use thereof. Persons who use and rely on the information contained herein do so at their own risk.


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Attachments

Not used.


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Rationale

A Rationale section is optional. If Rationale Boxes were used during the development of this project, the content of those boxes appears below.

Use of Capitalized Terms

Detailed specifications for creation and treatment of requests for interchange are addressed by NAESB within the e-Tag specification or its successor. This document recognizes the following proper nouns used by NAESB and does not address the definition of those terms:

• e-Tag • Tag Author • Generating-Serving Entity

WR1 instructs each NRE (Tag Author) on information required to indicate that the RFI is a 10-minute recallable transaction for ORS.

WR2 recognizes that the NRE (Tag Author) or the Source Balancing Authority may request an adjustment to the market level profile of a 10-minute recallable transaction for ORS.

WR3 ensures that the adjustments to 10-minute recallable transactions are approved.


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EXHIBIT D

WECC Criterion

INT-018-WECC-CRT-2


Introduction

Title: Western Interconnection (WI) e-Tag Energy Product Codes

Number: INT-018-WECC-CRT-2

Purpose: To identify specific e-Tag product codes used in the WI

Applicability:

4.1. Functional Entities:

4.1.1. Any NAESB1 Registered Entity (NRE)2 that creates an e-Tag by submitting a Request for Interchange (RFI) (such as a Purchasing-Selling Entity, Load-Serving Entity, Generating-Serving Entity, or Balancing Authority).

Effective Date: The first day of the first quarter following WECC Board of Director approval.

1 North American Energy Standards Board 2 The term “NRE” refers to entities registered in the NAESB Electronic Industry Registry (EIR).


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INT-018-WECC-CRT-2 WI e-Tag Energy Product Codes

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Requirements and Measures

Each NRE (Tag Author) submitting an electronic tag (e-Tag) within the WI shall use one of the following energy product codes in the first segment of the market path to describe the energy transaction type, as defined in the WECC Glossary of Terms and Naming Conventions (WECC Glossary).

• G-F: Firm Energy • G-NF: Non-firm Energy • G-FC: Firm Contingent • G-FP: Firm Provisional Energy • G-F1: Hourly Firm Energy • G-EX: Exchange of Firm Energy • C-SP: Capacity for Spinning Reserve • C-NS: Capacity for Non-Spinning Reserve • C-RE: Capacity Associated with Energy Recallable for Reserves

WM1. Each NRE (Tag Author) that authors an e-Tag within the WI will have evidence that it used the energy product codes in the first segment of the market path to describe the energy transaction type, as defined in the WECC Glossary.


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Version History

Version Date Action Change Tracking

0 August 3, 2007 Initial version Initial version 0 November 16, 2007 Market Interface

Committee Approved Initial version

0 December 6, 2007 WECC Board of Directors Approved

Initial version

0 January 22, 2008 Naming convention changed from INT-BPS—WECC-004-0 to INT-BPS-018-0.

No substantive change

0 September 5, 2012 WECC Board of Directors changed designation from “CRT” to “RBP”

Designation change

0 June 25, 2014 WECC Board of Directors changed designation from “RBP” to “CRT”

Designation change

1 September 18, 2014 WECC Board of Directors Approved

Developed as WECC-0106. Defined terms moved to the glossary. Language updated to Version 1 styles. The word “accurately” was removed from WECC Requirement WR1. To be effective the first day of the second quarter after approval.

1.1 March 10, 2015 Errata “WECC Glossary for Criteria and WECC Regional Business Practices and Naming Convention” corrected to “WECC Glossary for Terms and Naming Conventions.”

1.2 January 28, 2016 Errata The phrase “WECC Glossary for Terms and Naming Conventions” changed to “WECC Glossary of Terms and Naming Conventions” to match the name of the glossary. (emphasis added) The letter “W” was added in front of R1 in the Measure for WECC Requirement WR1. The designation will change from INT-018-WECC-CRT-1.1 to INT-018-WECC-CRT-1.2.

1.2 April 1, 2016 No Change Converted to new template 1.3 June 18, 2019 Errata Converted to newest template

In Measure M1, “shall” was changed to “will.” 2 TBD In Version 2, 1) titles were shortened, 2) the “NRE” entity

replaced the BAM and a descriptive footnote added, 3) WR1/WM1 syntax was clarified, 4) WR2 syntax was clarified, 5) descriptive narratives were added to the Rationale section to include, (a) “Use of Capitalized Terms from the NAESB Glossary”, (b) Use of Capitalized Terms from the WECC Glossary” and (c) “Applicable Entity” in the Rationale section.

WECC receives data used in its analyses from a wide variety of sources. WECC strives to source its data from reliable entities and undertakes reasonable efforts to validate the accuracy of the data used. WECC believes the data contained herein


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and used in its analyses is accurate and reliable. However, WECC disclaims any and all representations, guarantees, warranties, and liability for the information contained herein and any use thereof. Persons who use and rely on the information contained herein do so at their own risk.


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Attachments

Not used.


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Rationale

A Rationale section is optional. If Rationale Boxes were used during the development of this project, the content of those boxes appears below.

Use of Capitalized Terms from the NAESB Glossary

Detailed specifications for creation and treatment of requests for interchange are addressed by NAESB within the e-Tag specification or its successor. This document recognizes the following proper nouns used by NAESB and does not address the definition of those terms:

• e-Tag • Tag Author

Use of Capitalized Terms from the WECC Glossary

As approved September 18, 2014, the definition for Capacity Non-Spinning Reserve and Capacity Spinning Reserve both use the capitalized term “On Demand.” Version 3 of this criterion corrected the use to lower case as the term is not defined. As approved September 18, 2014, the definition for Firm Energy used the capitalized NAESB term “Seller.” Version 3 of this criterion corrected “Seller” to lower case.

Applicable Entity

Adoption of the NRE aligns this document with other WECC Criterion.3

3 See INT-008-WECC-CRT-3, Treatment of Dynamic Transfer Request for Interchange and INT-003-WECC-CRT-3, Interchange Prescheduling Calendar


26

EXHIBIT E

WECC Standards Committee

Charter


Establishment and Authority

The WECC Standards Committee (WSC) is a Standing Committee established by the WECC Board of Directors (Board).

Purpose and Responsibilities

The purpose of the WSC is to oversee the implementation of the WECC Reliability Standards Development Procedures (Procedures) pursuant to this Board-approved charter.1

The WSC will—

1. Maintain and administer the Procedures, including:

a. Due process,

b. Balloting,

c. Annual review of the WECC Glossary of Terms and Naming Conventions, and

d. Meeting the quality control attributes of FERC Order 672.

2. Administer each Standard Authorization Request (SAR) to ensure the requested project:

a. Is within WECC’s authority to develop;

b. Is appropriate for development by WECC; and that it

c. Remains within the scope of the SAR, as may be changed by the WSC.

3. Monitor and manage drafting teams, including:

a. Team selection, and

b. Provision of general oversight and guidance to include a description and explanation of the project to be drafted, and time prioritization where needed.

4. Monitor and manage the development of projects created per the Procedures, including prioritization.

5. Perform other duties assigned by the Board.

1 The Procedures require approval by the Board, NERC, and FERC.


27

WSC Charter

2

Committee Composition and Governance

1. Membership

a. The WSC will be composed of one representative from each of the WECC Standards Voting Segments (SVS) as defined in the Procedures, plus one member of the Board assigned by the Board chair to serve as the WSC chair.

b. Eligibility

i. An individual is eligible to serve on the WSC if that individual:

1) Meets the membership eligibility criteria in the Segment Qualifications Guidelines and Segment definitions in the NERC Rules of Procedure, Appendix 3D, Registered Ballot Body Criteria, as amended from time to time, and

2) Agrees to place reliability of the Western Interconnection ahead of personal or corporate interests.

ii. No individual, firm, or affiliate will serve in more than one SVS at a time. The Director of Standards has authority to make the final determination on the question of affiliation.

c. Balloting

i. A request for WSC SVS nominations must be announced and remain open for no less than 14 days. Self-nominations are permitted. Each nominee’s eligibility will be verified under the direction of the Director of Standards.

ii. At the closing of the nomination period, notice of ballot will be dispatched announcing the ballot window and providing balloting instructions. The ballot window will remain open for:

1) No less than 14 days or until the sum of the ballots cast becomes outcome determinant, and

2) No more than 30 days.

iii. To be eligible to vote, an individual:

1) Must be registered in the WECC Ballot Body, and

2) May cast a vote in all SVSs in which the individual is registered.

Only one vote may be cast per entity per SVS.

iv. The nominee with the most votes in an SVS is elected as the representative for that SVS. If there is only one nominee for an SVS, balloting is waived, and the nominee is deemed elected.


28

WSC Charter

3

v. In the event of a tie ballot, the WSC chair will cast the deciding vote.

vi. The names of elected representatives will be given to the Board for informational purposes.

d. Terms of Service

i. Normal Term of Service

1) Will be two years.

2) Will be staggered so only half the terms expire coincidentally.

3) Will begin and end at the closing of the WECC Annual meeting.

ii. Interim Term of Service

1) The WSC chair may decide not to fill an interim vacancy, in which case the vacancy would be filled during the next normal term of service.

iii. Removal

1) The WECC Board may remove a WSC member upon a joint finding by the WSC chair and the Board chair that the member’s conduct on the WSC is inconsistent with membership eligibility.

2. Leadership

a. The Board chair will assign a Board member to serve as the WSC chair.

b. The WSC chair will manage the committee and its meetings.

c. The WSC will elect a vice chair to perform the duties of the chair in the chair’s absence or in case of a vacancy in the office of chair.

d. WECC Standards staff will serve as the steering committee assisting with meeting agendas and action recommendations.

3. Meetings

a. The WSC will determine the procedures for its meetings.

b. A quorum for meetings will be a majority of the WSC’s current membership. A meeting quorum is determined by a count of those present in person and present by other real-time interactive communication media. Once a quorum is established it remains in place until the meeting is adjourned. If an SVS position is vacant, the number needed to establish a quorum is reduced accordingly.

c. Action taken by the WSC requires a majority vote of those members present.

d. WSC meetings may be in person or by conference call, as determined by the chair.


29

WSC Charter

4

e. The chair (or designee) will cause notice to be given through the Standards Email List of the time and place of all meetings and will cause notice of all meetings to be posted on the WECC website. Notice will be given no less than three days before each meeting.

f. An agenda, including the items for which action may be taken, will be included with the notice.

g. Any person who wants notice of WSC meetings may notify the WECC Standards staff or WECC administrative support.

h. All meetings of the WSC under this section are open to the public, except that the chair of the WSC may call for a closed session—according to the Board Policy on Closed Sessions for Member Groups—to discuss confidential or non-public information, to receive attorney-client communications, or to discuss pending or anticipated litigation.

4. Actions without a Meeting

a. The WSC may act by ballot without holding a meeting as described above in Section 3— Meetings.

b. A ballot to approve an action without a meeting (AWM) may be taken by any method the chair deems appropriate.

c. A quorum is required, except that the WSC member need not be present in person or present by real-time interactive communication media.

d. An action without a meeting may be convened at the request of the chair or any three SVS representatives.

e. WECC will distribute notice of the proposed AWM to the Standard Email List and the WSC members, stating the nature of the business to be undertaken.

f. Notice of the AWM will be given no less than three days in advance of the requested action.

g. Results of the AWM will be distributed to the WSC members no less than five days after the close of the AWM.

h. A report of all actions taken will be made at the next regularly scheduled WSC meeting.

Proxies

Each WSC member is authorized to designate a proxy for purposes of quorum and action items to be addressed by the WSC.

To assign a proxy, the assigning WSC member must notify WECC Standards staff and provide:

1. The reason for the request,


30

WSC Charter

5

2. The name of the proxy representative, and

3. The SVS represented.

The proxy will adhere to the voting member’s expectations and responsibilities as described in this charter.

A WSC member cannot serve as a proxy for another WSC member.

Reporting

The WSC will report to the Board on its activities and any recommendations.

The WSC will annually review each subcommittee, task force, or work group that reports to the WSC to determine whether that group is still necessary or should be dissolved.

Review and Changes to the Charter

The WSC will annually review this charter and recommend any changes to the Board.

Approved by the WECC Board of Directors: Pending Board Approval December 4, 2019.


31

Governance Committee

Charter



The Governance Committee (GC) is a Board committee established under Section 8.3 of the WECC Bylaws, approved by the Board on June 19, 2018. This cCharter shall governs the committee with regard toregarding its duties and responsibilities.


The purpose of the GC is to help the WECC Board of Directors (Board) be highly effective and the entire organization to be well-governed.

The committee’s primary duties and responsibilities are as follows:

1. Oversee implementation and amendment of the Bylaws.

2. Periodically review the WECC’s Standards of Conduct (Bylaws Appendices A and B) and recommend changes to the Board.

3. Perform a thorough assessment, every five years, of whether WECC is fulfilling its purposes (Bylaws, Section 4.9).

4.3. Interface with the Western Interconnection Regional Advisory Body (WIRAB) on governance matters.

5.4. Interface with the Member Advisory Committee on governance matters.

6.5. Annually review the Responsibility and Accountability Matrix to determine if any changes are required.

7.6. Manage any documents under its purview consistent with the WECC Document Categorization Policy and update documents for which the committee is responsible.

8.7. Assure that all Board-approved documents and charters are regularly reviewed to ensure that they are up -to -date and relevant. In this task the GC is assisted by the cCorporate sSecretary who will provide an annual report on the status of these reviews.

9.8. Perform such other functions pertinent to governance as may be delegated by the Board.

10.9. Discuss education and development opportunities for Board members as informed by the annual self-evaluations by Board Committees and the Board of their respective bodies.

Commented [PK1]: For the last two 4.9 review cycles, this task has been taken up by a task force or committee. Do we want to keep this responsibility in the GC charter?


32

GC Charter

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11.10. Make recommendations to assist the Board in making decisions under sections 6.5.2 (removal of Directors) and 6.7.3 (appointment of temporary Directors).


1. Membership

a. The GC shall will be composed of not fewer than three members of the Board, appointed by the chair of the Board in consultation with the Board.

b. Each member of the GC shall will serve until a successor is appointed, unless the member resigns or is removed by the Board. If a vacancy occurs at any time, the Board chair may fill that vacancyit may be filled by the chair of the Board.

c. No member of the GC shall willmay participate as a GC member at any time that the GC may consider any recommendation to the Board that would directly affect the continued service of that Director as a member of the Board of Directors. The Board chair may appoint a temporary alternate member to serve on the GC in place of any Director who is recused from participation under this paragraph.

2. Leadership

a. The chair of the Board, in consultation with the Board and with consideration of a Director’s interest and expertise, shall will appoint one GC member to serve as the committee chair. The GC chair shall appoint a secretary who need not be a Director or a committee member. The secretary shall prepare minutesThe chair will assign a committee member or a member of the WECC staff member to prepare GC meeting minutes minutes of GC meetings for legal review followed by the committee’s approval.

b. The GC chair shall will manage the GC and its meetings.

c. The GC chair may appoint a steering committee to address specific assignments as necessary.

3. Meetings

a. The GC shall will meet a minimum of twice per year and as often as required to carry out its responsibilities. Meetings shall will be held in accordance with the WECC Meeting Policy and may be in person or by telephone or /web conference as determined by the chair.

b. The GC shall will determine the procedures for its meetings, except.:

i. A quorum for meetings shall must beis a majority of members of the committee.

ii. Action taken by the GC shall requires a majority of assigned GC members.

iii. GC members may not vote by proxy or absentee ballot.

Commented [PK2]: This conforms more closely with practice and the language currently used in other charters.


33

GC Charter

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c. The GC chair shall will provide (or cause to be provided) email notice of the time and place of all meetings to each member of the GC and to the Board, no later than three days prior tobefore the meeting. An agenda of the items for which action may be taken shall will be made available at that time. Notice of meetings and the agenda shall will also be posted on the WECC website.

d. The GC may meet in closed session to discuss the recommended appointment of any person to the Board pursuant to section 6.7.3 of the Bylaws or to a committee, subcommittee, work group, or task force; the removal of a Director from the Board pursuant to section 6.5.2 of the Bylaws; or the nomination of Board officers. The GC chair may also call for a closed session of the GC when necessary to protect the confidentiality of proprietarysensitive or confidential information or to receive attorney-client communications. The GC chair shall will permit members of the Boardany Director, except those Directors who are conflicted in accordance with sections 7.6.1.1. of the Bylaws or where the GC determines that a Director would have a perceived or actual conflict of interest, to monitor such closed sessions.

e. whenever the sensitive information to be discussed is or will be available to the entire Board. The GC chair will provide (or cause to be provided) email notice of the time and place of all closed session meetings to each member of the GC and to the Board, no later than three days before the meeting, or upon as much notice as is reasonable under the circumstances, as approved in writing by a quorum of the committee. This notice will include an agenda of the items for which action may be taken.

d.

The GC shall will report to the Board on its activities and any recommendations for Board action.


The GC shall will review this charter annuallyon an annual basis and recommend any changes to the Board following consultation with WECC legal counsel. Modifications to this charter shall must be approved by the Board.

Approved by the WECC Board of Directors: December 5, 2018

Commented [AC3]: Steve has suggested that this could be the chair.


34

OCOperating Committee

Charter



The Operating Committee (OC) was established by the Board of Directors (Board).

Purpose/Responsibilities

The purpose of the OC is to advise and make recommendations to the WECC CEO and Board on matters pertainingrelevant to maintaining reliability through the operation and security of the Western Interconnection.

The OC shallwill:

1. Develop guidelines, reports, and papers to address emerging issues and industry concerns related to system operations, such as cyber and physical security for critical infrastructure, data exchange, and control systems, as required to promote and enhance the reliability of the Western Interconnection.

2. Support WECC in the following delegated functions:

a. Reliability Assessments and Performance Analysis

b. Event Analysis and Reliability Improvement

c. Situational Awareness and Infrastructure Security

3. Identify, collect and disseminate best practices within WECC that enhance coordinated system operations and promote reliable operations.

4. Perform other tasks as appointed by the Board and Joint Guidance Committee as permitted by the WECC Bylaws.


1. Membership

a. The OC shallwill be composed of one member and one alternate representing each WECC member organization.

b. Members shallwill be designated by their organization’s WECC Member Representative.

c. Members shallwill serve until removed they resign, or a successor has been named.


35

OC Charter

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d. Members shallwill be appointed by notice to the chair (or designee), but member appointments cannot occur within 48 hours of a meeting.

e. At any meeting, each WECC member organization and/or individual will have only one vote per decisionEach WECC member organization and/or individual will have only one vote for proposed actions at any meeting.

2. Leadership

a. The Board shallwill appoint one of the OC members to serve as the chair.

b. The Board shallwill appoint one of the OC members to serve as the vice chair.

c. The chair and vice chair shallwill each hold office for a term of one year, until they resign, ora successor chair or vice chair is duly appointed. The chair and vice chair may serve multiple terms.

d. The chair shallwill manage the committee and its meetings.

e. The vice chair shallwill perform the duties of the chair in the chair’s absence or in case of a vacancy in the office of chair.

f. The chair shallwill assign a committee member or WECC staff member to prepare minutes of OC meetings for the committee’s approval.

g. The committee chair may appoint a steering committee, which may include the vice chair, and subcommittee chairs; and may include the immediate past chair or other members. The Steering Committee shallwill assist with meeting agendas, action recommendations, and presentation of proposals and such other actions as it deems appropriate to the committee.

h. The OC may establish subcommittees, work groups, and task forces to carry out duties and responsibilities within the scope of the committee.

3. Meetings

a. The OC shallwill meet at least two times per year, or more often provided it meet as often as required to carry out its responsibilities. Meetings will be held according to the WECC Meeting Policy.

b. A quorum for meetings shallwill be 15 members.

c. Action taken by the OC shallwill require a majority vote of the members present (in person or remotely). Voting may be by any means the chair determines appropriate. OC members may not vote by proxy or absentee ballot.

d. OC meetings may be in person, by webinar, or by conference call, as determined by the chair.


36

OC Charter

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e. The chair (or designee) shallwill give notice by email to each member of the OC of the time and place of all meetings, and shallwill post notice of all meetings on the WECC website. Notice shallwill be given no less than 21 days prior to each meeting.

f. An agenda, containing and the items for which action may be taken, shallwill be provided no less than 21 days prior to each meeting. included with the notice.

g. Any person who wants notice of OC meetings may notify the chair by email. The chair (or designee) shallwill then email a copy of the notice and agenda of future meetings to that person when the notice and agenda are given to the committee members.

Reporting

The OC shallwill report to the Board on its activities and any recommendations.

The OC shallwill annually review each subcommittee, task force, or work group that reports to the OCto determine whether that group is still necessary or should be dissolved.


The OC shallwill review this charter annually and recommend any changes to the Board.

Approved by the Board: March 611, 201920

Last approve by the OC: February 21, 2020


37

Joint Guidance Committee

Charter


Establishment

The Joint Guidance Committee (JGC) was established by and reports to the WECC Board of Directors (Board).


The purposes of the JGC are to:

1. Ensure alignment of priorities and work plans of the Market Interface Committee (MIC), Operating Committee (OC), and Reliability Assessment Committee (RAC) (collectively the Standing Committees) with the strategic intent and priorities approved by the Board;

2. Identify reliability assurance issues that require cross-functional or cross-committee strategies to address them;

3. Ensure overall communication and collaboration among the Standing Committees; and

4. Perform other duties as assigned by the Board or the WECC CEO.

The JGC shallwill:

1. Work in coordination with WECC management to align the priorities and work plans of the Standing Committees with WECC Board-approved strategic priorities.

2. Address identified cross-functional reliability issues—for example, by coordinating committee responses, making appropriate work assignments, and creating cross-functional task forces.

3. Give input to the Board and CEO on strategic direction—for example, priorities defined through the WECC strategic and multi-year planning processes.

4. Ensure communications among the above committees.

5. Arrange joint sessions of the above committees as needed.

6. Plan, host, and ensure attendance of the chairs and vice chairs of the above committees and their subcommittees at the WECC Committee Leadership Training.

7. Ensure that new members of the above committees receive the WECC orientation materials within 30 days of their new assignment.


38

JGC Charter

2


1. Membership

a. The JGC shallwill be composed of one member and one alternate from the leadership of each of the following:

i. MIC,

ii. OC,

iii. RAC, and

iv. Member Advisory Committee (MAC).

b. The chair of each of the above committees shallwill appoint that committee’s JGC memberand alternate and their respective terms.

c. Members shallwill be acknowledged by the co-chairs (or designee).

d. The JGC shallwill also include a WECC executive, appointed by the WECC CEO, as a member a WECC executive appointed by the WECC CEO.

2. Leadership

a. The co-chair model of the JGC shallwill include as one co-chair, the member from one of the standing committees following the rotation order: MIC, OC, RAC, MAC, unless otherwise approved by the JGC representatives.

b. The WECC executive member shallwill serve as the other co-chair.

c. The co-chairs shallwill each hold office for a term of one year, or until a successor co-chair has been duly appointed.

d. The co-chairs shallwill manage the committee and its meetings.

e. The co-chairs shallwill assign a committee member or WECC staff member to prepare minutes of JGC meetings for the committee’s approval.

3. Meetings

a. The JGC shallwill meet at least three times per year. Meetings will be held according to the WECC Meeting Policy.

b. A quorum for meetings shallwill be a majority of committee members.

c. Action taken by the JGC shallwill require a majority vote of the members present. Voting may be by any means the chair determines appropriate. JGC members may not vote by proxy or absentee ballot.


39

JGC Charter

3

d. JGC meetings may be in person, by webinar, or by conference call, as determined by the co-chair.

e. The chair (or designee) shallwill give notice by email to each member of the JGC of the time and place of all meetings, and shallwill post notice of all meetings on the WECC website. Notice shallwill be given at least five days before each meeting.

f. An agenda, containing the items for which action may be taken, shallwill be included with the notice.

g. Any person who wants notice of JGC meetings may notify the chair by email. The chair (or designee) shallwill then email a copy of the notice and agenda of future meetings to that person when the committee members receive the notice and agenda are given to the committee members.

Reporting

The JGC shallwill report to the Board on its activities and any recommendations.

The JGC shallwill annually review each subcommittee, task force, or work group that directly or indirectly reports to the JGC to determine whether that group is still necessary or should be dissolved.


The JGC shallwill review this charter annually and recommend any changes to the Board.

Approved by the Board: June 19, 2019

Reviewed by the JGC: December 3, 2019


40

To: Member Advisory CommitteeFrom: Michele BeckDate: November 20, 2019Re: Summary of MAC Charter Redline and Proposed Motions

This memo accompanies the MAC Charter redlined document for MAC member consideration in advance of the December 3, 2019, meeting. FYI, WECC staff did a complete review and edit from a technical writing perspective and WECC legal did not identify any concerns.

Proposed Substantive Changes to the MAC Charter:

∑ New section in between current section 7 and 8 to address electronic voting in limited circumstances.

∑ Section 6.1 changes the measure of non-participation.∑ Minor change to 7.2.1 and deletion of 7.1.1.2 to reflect current processes.∑ New references to committee liaison process (new 8.5) & nomination of MAC leadership (3.4.)∑ Section 8.1 clarifies that the MAC creates subcommittees/work groups by majority vote.

Proposed Stylistic Changes:

∑ All edits not mentioned above are non-substantive.∑ WECC staff evaluated and updated for consistency and appropriateness the use of the words

shall, will, must, and may (among other technical edits.)∑ Current Section 5 will be moved in between current sections 2 and 3 because it defines terms

used in section 4 and elsewhere. This change will be made after the review of this redline for ease of reading and review. The numbering throughout will also be corrected and updated throughout the document.

Other Matters:

∑ A revised version of the previously approved “Role of a MAC Liaison to Other WECC Committees,” now titled “MAC Liaisons to Other WECC Committees” will be posted for your review and potential approval. The only changes are a new title, new formatting, and a new introductory section that specifies to which committees MAC will have liaisons. This change simplifies the ongoing relationship between the MAC Charter and the liaison document. In the future, any changes to the liaison process or the affected committees will only require approval of an updated document rather than changes to the charter.

∑ Since I did not receive strong input from MAC members regarding implementing term limits or removing authorization for sub-classes, this draft contains no changes on those issues.


41

Member Advisory Committee

Charter



The WECC Member Advisory Committee (MAC) was established in accordance with Subsection 8.1 of the WECC Bylaws.*


The purpose of the MAC is stated in Subsection 8.1 of the bylaws.

MAC responsibilities include those specified in Subsections 4.9 and 8.1 of the WECC Bylaws and the following:

Give timely updates and communications to, and get feedback from, the membership on issues facing WECC to inform and influence the WECC Board of Directors (Board) in its decisions about those issues.

Develop a work plan that includes issues identified by the Board and the MAC. Clearly communicate the work plan to the Board and the membership, and implement it to ensure enough time is given to inform and influence WECC decisions.

Work with the Board to develop and implement the agenda for the Annual Member Meeting.

MAC members have a duty to represent the interests of their member class, subclass, or international jurisdiction. All MAC members must keep regular contact with the members of their member class, subclass, or jurisdiction as issues are considered by the MAC, and must make reasonable, good-faith efforts to present and discuss both majority and minority opinions from their jurisdiction or member class on matters before the MAC.


Membership

The MAC will be composed of representative members as described in Part 8.1.1 of the bylaws.

Selection of Class and International Jurisdiction MAC Members

Selection of MAC members will be such that no WECC member may have more than one member representative serving as a MAC member at the same time. A MAC member may fill only one member position. Other nomination and election procedures beyond those contained

* https://www.wecc.org/Corporate/WECC%20Bylaws.pdf


42

https://www.wecc.org/Corporate/WECC%20Bylaws.pdf

MAC Charter

2

in this charter may be proposed for an international jurisdiction, class, or subclass. Depending on approval by the WECC general counsel for their submission to the affected WECC members, other procedures may be implemented by majority vote of the members of an international jurisdiction, class, or subclass.

Class MAC Members

a. At the Annual Member Meeting, each member class will elect representative class members for the MAC. Each class may divide into two or three subclasses to elect each class’s MAC members.

b. Each WECC member class will have three MAC members. Each class MAC member will serve a three-year term. Terms must be staggered so that, in each class, only one MAC member’s term ends each year.

c. A member class or subclass may establish term limits for MAC class members as determined by the electing class or subclass.

d. Each class will determine the need for diversity (regarding, for example, geographic and stakeholder issues) within that class, which may lead to the establishment of subclasses. A class may divide into two or three subclasses. Each class must establish or discontinue its subclasses, if any, by majority vote of the members in the class.

e. Only members of each class or subclass may nominate and vote on candidates for election as MAC member representatives for their respective class or subclass.

f. A class or subclass candidate need not be a member of the class or subclass, nor an employee of a class or subclass member.

g. A quorum of a majority of the members of a class or subclass must be represented to elect a MAC member for the class or subclass; election will be by simple majority of votes cast.

h. If there are more candidates for election than positions to fill, ballots will allow voters to list the candidates in order of preference so their wishes may be honored in case a runoff is needed. Ballots must be counted in the first ballot based on the top choice, or the top two or three choices, if more than one seat is being filled. In any runoff election, ballots must be counted based on the highest preferences indicated for the candidates who remain in the runoff election.

International Jurisdiction MAC Members

a. Alberta, British Columbia, and Mexico (“international jurisdiction”) must each have a representative MAC member.


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MAC Charter

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b. An international jurisdiction representative MAC member will serve until removal, resignation, or a vacancy is recognized as provided in this charter.

c. Each international jurisdiction may establish, through majority vote of its WECC members, its selection processes, replacement processes, or both for its representative MAC member. An international jurisdiction may change its selection processes, replacement processes, or both by majority vote of its WECC members. Each international jurisdiction will provide to the MAC chair and WECC’s corporate secretary a copy of its MAC member selection and replacement processes to the extent it establishes processes that are different from the current process that requires each of the entities of the independent system operator operating as the Alberta Electric System Operator, for Alberta, and British Columbia Hydro and Power Authority, for British Columbia to designate a MAC member from their respective organizations. Until Alberta and British Columbia WECC members have established their selection and replacement processes, these international jurisdictions will continue to have representative MAC members selected by the independent system operator operating as Alberta Electric System Operator for Alberta, and British Columbia Hydro and Power Authority for British Columbia.

d. Having an international jurisdiction MAC member for each international jurisdiction does not restrict WECC members from Alberta, British Columbia, or Mexico from participating in the activities of their WECC member classes or subclasses, including taking part in their class or subclass MAC member elections. However, no international jurisdiction representative may be employed by a WECC member that also employs a MAC member class or subclass representative.

Member Vacancy by Resignation, Removal, or Nonparticipation

Any MAC member may resign from their position at any time by giving written notice to the MAC chair. This notice is effective on the date it is given to the MAC chair. A MAC member’s nonparticipation in MAC meetings for a period of four consecutive meetings may be considered a vacancy. The MAC chair will decide whether to recognize a vacancy due to nonparticipation.

The MAC, international jurisdiction, member class, or subclass may remove a MAC member before completion of the MAC member’s term of office as follows:

a. The MAC may remove any MAC member for gross negligence; gross misconduct; violation of local, state, provincial, or federal law; or gross failure to carry out the duties of a MAC member. Removal will only occur after the affirmative vote of at least two-thirds of the MAC members.


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MAC Charter

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b. A majority of members from any international jurisdiction, class, or subclass may remove one of their MAC members by submitting in writing their request to the MAC chair and WECC’s chief executive officer.

The MAC member’s position will be deemed vacant and the vacancy filled according to Section 2c below.

c. In keeping with Selection of Class and International Jurisdiction MAC Members, Section 2b, members from an international jurisdiction may establish a different process from that provided in Section 3 below to address resignation, removal, nonparticipation, or vacancy, but such process will not infringe on the ability of a majority of members from that international jurisdiction to remove their MAC member representative.

Whenever a MAC vacancy occurs, the MAC chair will:

d. Consult with the members of the affected international jurisdiction, class, or subclass for the appointment of an interim MAC member to fill the vacancy as may be required to meet the MAC quorum requirements. The appointee will serve until an election or the process as established by the international jurisdiction members selects a replacement for the rest of the vacated term. Any interim appointment must come from members of the same international jurisdiction, class, or subclass from which the vacancy arose.

e. Promptly conduct a special election for the class, subclass, or international jurisdiction—as applicable—from which the vacancy arose, allowing a reasonable period to select candidates and to organize such an election.

f. If a special election chooses a replacement class or subclass MAC member no more than 14 months before the end of the vacated term filled by the special election, the MAC member chosen by the special election will fill the rest of the vacated term and the following regular three-year term as the MAC member representative for the electing class or subclass.

Leadership

The MAC chair will manage the committee and its meetings.

The MAC vice chair will perform the duties of the MAC chair in the chair’s absence or in case of a vacancy in the office of the chair.

During a MAC meeting conducting official business, each MAC member represents one vote while present in person as defined in Meetings, Section 7.


45

MAC Charter

5

At the Annual Member Meeting, after incoming MAC members are duly elected, the MAC will elect the MAC chair and MAC vice chair from the MAC members following the guidelines in the “Process for Selecting MAC Leadership.” The chair and vice chair must be from different classes; must be from different WECC members; and both must not be from related WECC member affiliates (as that relationship is used in Subsection 4.5 of the WECC Bylaws). The MAC chair and vice chair will serve one-year terms, measured from the Annual Member Meeting to the next Annual Member Meeting. In case the chair or vice chair resigns or is removed, the MAC members will, at their next regular or special meeting, whichever is sooner, elect a new MAC chair or MAC vice chair to serve during the rest of the term.

An international jurisdiction MAC member may serve as chair or vice chair if the class association of the international jurisdiction MAC member applies to class and affiliate representation restrictions in Leadership, Section 4.

WECC staff performs the secretarial duties for the MAC, including preparing meeting minutes for MAC approval.

Meetings

All regular business must occur at duly noticed meetings. The MAC will meet in person not less than two times per year, including once in conjunction with the Annual Member Meeting.

a. The MAC will establish a written regular meeting schedule, which:

i. Includes time and venue,

ii. Is available to the WECC members, Directors, and the public through posting on the WECC website.

b. An initial notice and any subsequent notice of change for the time and place of any regular meeting will be distributed, which may be by email or similar, to all MAC members and WECC Directors, and be posted on the WECC website at least 10 calendar days before the day on which the meeting is held.

Required documents will be posted to the WECC website at least 10 calendar days before regular meetings. Required documents are:

a. The agenda of business to be conducted, including those matters on which a vote may be taken, and

b. All documents proposed to be approved by the MAC at the meeting.

Whenever the MAC chair finds (or upon request to the MAC chair from any five MAC members) that there is urgent business needing MAC consideration or action before the next


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MAC Charter

6

regularly scheduled meeting, a special meeting will be called within at least three-business-day notice to all MAC members and WECC Directors, which notice may be by email or similar. WECC website posting of the notice for the meeting with required and supporting documents will occur at least one business day before the special meeting.

A MAC quorum must be established before official business can be conducted. Quorum must be a majority of MAC members being present, including at least one MAC member from each member class and one international jurisdiction MAC member, not including subclass designations.

A meeting failing quorum may proceed with general discussion and status reports. However, the chair must postpone any agenda items proposed for approval. Official business may begin at any time upon achieving quorum.

A decision of the MAC must be by a simple majority vote of those committee members present in person unless otherwise required in this charter or the Bylaws.

All MAC members may participate in any meeting of the MAC electronically or by telephone, or by any other means that enables simultaneous discussion. Every MAC member participating in a meeting in this way will be deemed present in person at the meeting.

Except as provided elsewhere in this charter, all regular and special meetings of the MAC will be open to observation by any WECC member, Director, or any member of the public.

If a quorum exists at a meeting, a MAC open meeting may close and reconvene in closed session after an affirmative vote of two-thirds of the MAC members present in the following instances:

a. To receive and discuss confidential attorney-client-privileged information from WECC’s counsel; or

b. To receive and discuss any other information that is privileged, confidential, proprietary, trade secret, or protected from public disclosure by law.

Closed sessions of the MAC may not be attended by a MAC member under the following circumstances:

a. When the qualification or performance of the MAC member is being discussed;

b. When the MAC member is employed by an entity that is or is likely to become a party to the litigation or legal issue being discussed; or


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MAC Charter

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c. When the MAC chair determines that the MAC member would have a conflict of interest by becoming privy to the privileged or confidential information that is to be presented to or discussed by the MAC in closed session.

Any member of the Board may attend a closed session of the MAC unless the topic considered by the MAC concerns the Director.

Before adjourning to a closed session, the MAC chair will announce the purpose of the closed session in a way that gives the public an understanding of the general subject matter to be discussed, but that does not reveal privileged, confidential, or sensitive personal information. The closed session will be limited in scope to the publicly stated purpose of the closed session. After the closed session has ended, the MAC chair will give the public a general description of the business conducted during the closed session without breaching the confidentiality of the information used in the session.

All MAC members and any others present at a closed session must maintain the confidentiality of the information, discussions, and decisions made in closed session. Unless otherwise required, all MAC members and closed-session attendees must complete a confidentiality agreement provided by WECC’s general counsel. The MAC chair must appoint a secretary for the closed session to take minutes of the closed session, which will be delivered to the WECC corporate secretary. The corporate secretary or delegate will keep minutes of the closed session confidential.

MAC member activities will be self-funded by WECC members with respect to labor and travel expenses unless otherwise provided by policy or the Bylaws.

Electronic Voting

The chair may initiate an electronic vote for the MAC if:

a. The issue has been discussed at least once in a MAC meeting.

b. The resolution to be voted on is drafted as a “yes-or-no” vote.

WECC staff will conduct the electronic vote as follows:

a. Notify all MAC members, by email or similar, at least seven calendar days before the vote will be taken with the resolution to be voted on, all relevant background documents, and the timeline for the vote.

b. Upon objection of five or more MAC members within seven calendar days of the notice, the electronic vote will not be conducted.

c. Allow at least three business days for MAC members to vote.

d. Send one reminder, if necessary, to try to reach a quorum in the vote.


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MAC Charter

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The requirements for quorum must be met for the vote to be valid.

MAC Subcommittees, Work Groups, and Liaisons

The MAC may create, by majority vote, subcommittees and work groups as necessary to carry out its business affairs. The MAC chair may appoint one or more MAC members or other people to participate in MAC subcommittees or work groups as full voting members or as non-voting advisory members.

Subcommittees will have no definite disbandment requirement and will address recurring business affairs that need MAC action. The MAC will approve a charter defining the purpose and other direction as the MAC sees fit.

Work groups of the MAC disband after completing assigned specific tasks as documented in the MAC meeting minutes.

Except as provided in Section 6.4.3 of the bylaws, all subcommittee and work group meetings will be open to observation by any WECC member, Director, or member of the public, with the following limitations:

a. Meeting schedules will be posted on the WECC website with as much notice as practical.

b. Any public participation will be decided by the subcommittee or work group chair.

c. The ability of a MAC subcommittee to meet in closed session must be established in advance and contained in the charter approved by the MAC. The subcommittee charter will mandate that each closed meeting be approved in advance by the MAC. All closed meetings will follow charter requirements for a closed meeting.

d. The ability of a MAC work group to meet in closed session will be established by resolution in advance during a MAC meeting. The resolution will require the meeting to follow charter requirements for a closed meeting.

The MAC chair will appoint MAC member liaisons to other committees following the requirements of the “MAC Liaisons to Other WECC Committees.” The liaisons will perform the duties described in that document.

Nominating Committee

The MAC will select four voting, and two non-voting liaison members for the Nominating Committee following Section 6.4.1 of the bylaws and these provisions:

a. Each member class and the international jurisdiction MAC members will elect their respective Nominating Committee members. The MAC chair will notify the Board chair of the selections.

b. MAC members of the Nominating Committee must not be from the same member class.


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MAC Charter

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c. Among Classes 1, 2, and 3, the class represented on the Nominating Committee as a non-voting liaison will rotate each year in numerical order, repeating at Class 1 following Class 3.

Reporting

The MAC will report to the Board as described in Section 8.1.2 of the WECC Bylaws.

The MAC chair or designee will attend the Board’s meetings to provide advice, clarification, or responses to Directors’ questions. The Board and MAC chairs will develop guiding principles and procedures as necessary to ensure open, effective, and efficient dialogue between the MAC and Board. The Board and MAC chairs may amend those guiding principles and procedures.


The MAC will review this charter annually and recommend any changes to the Board.

Approved by the WECC Board of Directors:


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RELIABILITY | RESILIENCE | SECURITY

James B. Robb President and Chief Executive Officer James B. Robb assumed the role of president and chief executive officer of NERC in April 2018. Mr. Robb oversees NERC’s mission of assuring the reliability and security of the North American bulk power system. As president and CEO, Mr. Robb directs key programs affecting more than 1,400 bulk power system owners, operators, and users, including mandatory NERC Reliability Standards, compliance monitoring, enforcement, situational awareness, event and risk analysis, reliability assessments and forecasting, cyber and physical security, and government relations. Mr. Robb also oversees the operations of the Regional Entities who support the reliability mission across North America. From 2014 to 2018, Mr. Robb served as president and CEO of the Western Electricity Coordinating Council (WECC) where he was responsible for the strategic direction and leadership of all of WECC’s activities. Mr. Robb has more than 30 years of experience in the energy sector as an engineer, a consultant, and a senior executive. Prior to becoming WECC’s CEO in 2014, he held three major leadership roles in the industry at Northeast Utilities (now Eversource Energy) as senior vice president of Enterprise Planning and Development; at Reliant Energy (now part of NRG Energy) where he served as senior vice president of Retail Marketing for the competitive retail business in Texas and the Northeast; and at McKinsey & Company where he was a partner and the leader of the West Coast’s Energy and Natural Resource Practice. During his 15-year career at McKinsey, he worked closely with prominent electric power companies in California, western Canada, the Pacific Northwest, and the Rocky Mountain states, as well as with some of the region’s largest energy consumers. Mr. Robb earned a bachelor’s degree in Chemical Engineering from Purdue University in Indiana and a master’s degree in Business Administration from the Wharton School of Business at the University of Pennsylvania, Philadelphia, PA.

Open Session Board Meeting Book - NERC CEO Remarks

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CEO Report

March 11, 2020

Melanie M. FryePresident and CEO

Open Session Board Meeting Book - Remarks and Reports

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WECCß Why—Electricity is an integral

part of the fabric of modern life. WECC strengthens that fabric to preserve and improve society's future.

ß Vision—A reliable and secure bulk power system in the Western Interconnection.

ß Mission—To effectively and efficiently mitigate risks to the reliability and security of the Western Interconnection's Bulk Power System.

ß Invented Future

2

Our DeclarationsERO Enterprise

We commit to:ß Work together as one team and

honor each of our roles.ß Listen, actively support ERO

Enterprise activities, and eliminate unnecessary duplication of work.

ß Collaborate in developing clear and consistent guidance across the ERO Enterprise.

ß Be an information, knowledge, and resource sharing ERO Enterprise.

ß Develop and share harmonized messages across the ERO Enterprise communications.

ß We support innovation and initiative and the sharing of best practices across the ERO Enterprise.


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3

Outreach Update

ß Registered Entity

ïBANCïBC HydroïIdaho PowerïSouthern

California Edison

ïWEIL

ß State, Provincial, &

PolicyïBCUC

ß Regulatory & ERO

ïFERC Commissioners

ïFERC OER leadership

ïNERC BoardïERO EC

ß Industry & Other

ïPanel—Grid Needs of the Future

ïPanel—Models to Inform Planning for the Future

ïNWPP—Stakeholder Advisory Group


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ß January• Compliance Open Mic Webinar (257 pp)

ß February• Reliability Workshop (80 in-person, 20 webinar)• Grid Fundamentals (45 pp, oversold by five)

ß March• Compliance Open Mic Webinar • Reliability and Security Workshop (current

registration: 320 in-person, 37 webinar)

4

Training and Education


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ß Generator Resource Adequacy Forecast tool and associated outreach

ß Energy Storage Task Forceß Underfrequency Load Shedding Plan

effectiveness review ß Inverter-based resource modeling

improvement plan

5

Reliability Topic Updates


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British Columbiaß BCUC approved the 2020 Implementation Plan for BC, which includes compliance

audits of eight entities to be performed by WECC

ß BCUC issued Order R-30-19 approving the first compliance violation Notice of Penalty within BC

Albertaß MSA and WECC agreed that WECC will continue to conduct risk assessment reviews

of Alberta entities in 2020

Mexicoß Continuing discussions with CRE on the draft Services Contract for 2020

ß Conducted a compliance audit in Mexico in October 2019. The next audit will be in 2022

ß Working with CENACE on future outreach designed for entities in Mexico

6

International Update


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7

2020 Scorecard Legend

The goal has been fully achieved

The goal has been partially achieved and is on track for 2020 completion

The goal is behind schedule or is at risk of not being completed in 2020

The goal will not be completed in 2020


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Impact Measures

Objective Metrics 2020 Target Status

“What we want to accomplish” “How it is measured” Green – Yellow – Red

Reduce the risk to the reliability and security of the Bulk Power System (BPS) in the Western Interconnection

Trend of the reliability and security index

Performance drivers are understood and addressed by WECC programs

8


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9

Index Components


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Program Measures

10



Standards Development Risk-responsiveness of standards and requirements

Complete the Standards website dashboard

Risk-informed CMEP Reduction of entity’s residual risk

Increased effectiveness of internal controls program, tailor compliance monitoring, reduce likelihood of noncompliance, reduce processing time for PNCs by 50%, triage process that provides risk assessment and assigns the correct processing path, communication to entity

Reliability Assessments Key decisions informed by WECC models & assessments

Identify near- and long-term reliability and develop recommendations, complete 2030 ADS by June 30, develop 2 disturbance validation cases using information from RCs

Performance Analysis Recommendations delivered to industry that address vulnerability trends

Incorporate performance metrics and key takeaways into State of the Interconnection

Situation Awareness and Event Analysis

Improved system operations

Assurance visits, develop risk-base approach for future work, develop SA dashboard


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Program Measures continued

11



Training and Education Engaged Participation Implement CRM, use data to determine touch points and topics for outreach, enhance event format to increase adult learning

Communication and Outreach WECC’s strategy and near-term priorities are supported by stakeholders

Develop annual calendar for outreach, share major analytical work with stakeholders


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Capacity Measures



Management Expenditures are within delegated parameters

Actuals less than or equal to 27.76 million (FERC-approved statutory budget)

Leadership Leadership principles are widely used

Outcomes from 2019 breakthrough projects implemented, change reliability and security conversations in the Western Interconnection to reduction of known and future risks, instead of just being compliant

Operational Bench strength is present for critical roles

Implement knowledge transfer plans to maintain critical knowledge and skills, strengthen WECC’s HR function, create employee development plans

Adaptive Ability to take on emergent work Develop relationships with state PUCs and Energy offices by visiting at least eight PUCs, build out external affairs functions to enable identification of emerging policy issues

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Contact:Melanie [email protected]

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Reliability and Security OversightReport to the WECC Board of Directors

Steven Goodwill, Senior Vice President of Reliability and Security Oversight, General Counsel and Secretary

March 11, 2020


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Reliability and Security Oversight Report to the Board—March 11, 2020

2

Introduction

This report provides information about WECC’s Reliability and Security Oversight activities. Thisreport reflects changes in format and layout from previous versions. The purpose of the changes is threefold: first, to better highlight important activities and how they align with and support corporate goals; second, to reduce redundant information; and, third, to be consistent with other WECC reports.

CMEP Priorities

WECC has named four priorities for the Compliance Monitoring and Enforcement Program (CMEP). These priorities support and are informed by WECC’s corporate goals.

Activities for 2020 are divided into objectives aligned with each CMEP priority. WECC will track the status of these activities quarterly through this report. WECC may augment these activities and objectives during the year as it begins new areas of work.

CMEP Priority 2020 Objectives

1. Known and Future Risks ∑ Evaluate entity inherent risk early in the oversight process

∑ Ensure oversight planning is responsive to changes in entity risk profiles

2. Tailored Monitoring ∑ Build a nimble, long-term monitoring strategy∑ Expand monitoring activities to match risks with the

right tools

3. Culture of Reliability and Security ∑ Work with entities to strengthen internal controls that address priority risks

∑ Help entities fix gaps and overlaps in functional relationships

4. Enforcement Processing ∑ Refine enforcement process based on risk∑ Increase communication with entities during

enforcement process

1. Known and Future Risks

Evaluate entity inherent risk early in the oversight process

Since the introduction of the risk-based CMEP, oversight of an entity has been driven by the entity’s Inherent Risk Assessment (IRA) and Compliance Oversight Plan (COP). Delaying development of a


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COP after registration can limit WECC’s understanding of the entity’s risks and reduce the effectiveness and timeliness of monitoring.

To address this, WECC will apply a new process in 2020 to collect information to evaluate inherent risk at registration that will match the entity with initial monitoring activities.

Key Activities

∑ Develop an intake process for initial oversight planning at registration by Q3 2020.∑ Apply the process to newly registered entities by Q4 2020.

Ensure oversight planning responds to changes in entity risk profiles

WECC’s review of COPs has been tied to the audit cycle. This limits WECC’s ability to see changes in regional and entity-level risks between audits and for entities that are not regularly audited. Also, as WECC separates these COP reviews from the audit schedule, there must be a process to ensure monitoring activities are prompt and focused on priorities as entity risk profiles change.

During 2019, WECC began developing a process to identify changes in operational risk that could trigger revisions to an entity’s COP. WECC will complete and employ this process in 2020. This process will identify changes that may affect oversight, monitor where and when these changes occur, and recommend appropriate changes to oversight plans equal to the risk.

Key Activities

∑ As risks change, develop and apply a new process to re-evaluate COPs by Q4 2020.

2. Tailored Monitoring

Build a nimble, long-term monitoring strategy

WECC began evaluating audit planning processes in 2019 to better manage resource constraints and build organizational agility while focusing efforts on the highest risks to reliability and security. As the ERO Enterprise moves to new, uniform processes, this effort increases efficiency and makes sure monitoring schedules and scopes are tailored to entity-specific and regional risks.

In 2020, WECC will apply these refinements to identify monitoring scopes and schedules further in advance, refine scopes to allow more time and depth for high-risk requirements, customize the length of engagements depending on the scope, and monitor more frequently for high-risk entities and requirements.

To enhance long-term strategic planning, WECC will develop a framework that establishes how risks are identified and matched to monitoring tools. The framework will be used to build annual schedules, forecast resource needs, and plan education and outreach.


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Key Activities

∑ Introduce new strategies for determining frequency, duration, and scope in developing the 2021 audit schedule by Q2 2020.

∑ Produce a five-year monitoring framework by Q4 2020.

Expand monitoring activities to match risks with the right tools

Making effective use of WECC’s monitoring tools helps manage resource constraints and buildsorganizational agility while focusing efforts on the highest risks to reliability and security. Matching each risk with the proper tool helps ensure oversight is prompt and effective. For example, spot-checks and investigations focus on high-priority risks that need to be addressed immediately. Through these tools, WECC monitors entities with known risks or shortly after a significant event.

In 2020, WECC will expand guided self-certification. Guided self-certification focuses on helping entities conduct internal compliance reviews. This lets WECC monitor many entities in a relatively short time without straining resources. Guided self-certification allows entities to identify issues early—possibly years before an audit—and can provide a large amount of information useful for developing guidance and lessons learned.

WECC will start guided self-certification in 2020 for two risks for which many entities may have deficient internal audit practices: facility ratings (FAC-008-3) and supply-chain risk management (CIP-013-1). More activities may be conducted depending on the outcomes of these reviews and WECC’s monitoring priorities.

Key Activities

∑ Conduct guided self-certification for facility ratings by Q2 2020.∑ Conduct guided self-certification for supply-chain risk management by Q4 2020.

3. Culture of Reliability and Security

Work with entities to strengthen internal controls that address priority risks

The number of reported potential noncompliance (PNC) is increasing, reflecting an opportunity for WECC to work with entities to strengthen controls for detection and prevention. WECC evaluates and tests entities’ internal controls as part of monitoring engagements according to standard auditing practices. With the retirement of the Internal Controls Evaluation program, there is an opportunity for WECC to help entities examine control design and application during audits.

Along with assessment of internal controls at audit, WECC provides education and outreach to help entities build quality internal controls programs. In 2019, WECC formed an internal controls practices group as a platform for entities to discuss best practices and lessons learned for high-priority risks and


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requirements. WECC also started publishing high-level risks associated with the failure of compliance requirements.

In 2020, WECC will continue the practice group efforts and failure-point guidance begun in 2019. Also, WECC will continue to move the focus of audit activities to known and future risks, rather than just looking for compliance.

Key Activities

∑ Hold two internal controls practices group meetings by Q4 2020.∑ Incorporate new breadth and depth on controls in audit approaches by Q4 2020.

Help entities fix gaps and overlaps in functional relationships

In 2019, WECC took several opportunities to close gaps in functional mapping information. These opportunities included teaching the value and intent of mapping activities, helping entities develop implementation plans to use newly added functions, and working directly with unmapped entities. WECC will keep working on mapping activities to ensure there are no gaps or overlaps in functional responsibility.

Through these activities, WECC has identified several gaps in relationship mapping. In 2020, WECC will reach out to the entities involved to close these gaps. Also, WECC will establish a process to perform functional mapping at registration to reduce the chances of critical gaps developing in the future.

Key Activities

∑ Resolve the most substantial gaps in functional mapping by Q3 2020.∑ Perform functional mapping at registration by Q4 2020.

4. Enforcement Processing

Refine enforcement process based on risk

The number of self-reports increased for the fourth consecutive year in 2019, driven by enduring challenges with time-based, zero-defect, or phased-implementation requirements. At the same time, WECC has greatly increased the rigor of enforcement processing and mitigation expectations to reduce reliability and security risks. These factors have resulted in a fivefold increase in the PNC inventory since the 2016 introduction of CIP v5.

In 2020, WECC will transform its enforcement processes to achieve improved processing efficiencies while keeping analytical rigor and ensuring proper mitigation of reliability and security risks. A critical part of this overhaul will be a new triage process to find the proper processing track for each PNC.


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Key Activities

∑ Introduce refined enforcement processes by Q1 2020.∑ Apply triage process by Q1 2020.∑ Review and revise process throughout 2020.

Increase communication with entities during enforcement process

An unintended consequence of long processing times has been delays between processing states for some PNCs. This has hurt entities’ ability to see the status of their PNCs as they wait for the next step in enforcement. This presents an opportunity for WECC to provide greater transparency to entities during the process.

In 2020, WECC will apply a process to track the frequency of communication with entities at state changes or at least every 30 days.

Key Activities

∑ Apply process for regular communication with entities by Q1 2020.

Program Updates

Oversight Activities by NERC

In Q4 2019, WECC participated in the FERC and NERC Annual Find, Fix, Track and Report (FFT) and Compliance Exception Survey. The purpose of the survey is to evaluate the effectiveness and efficiency of the FFT and Compliance Exception programs and to assess Regional Entity adherence to guidelines and regulations. NERC is reviewing the survey and will provide feedback later in 2020.

CORES

NERC launched the Centralized Organization Registration ERO System (CORES) in June 2019, and WECC began using the system in Q4 2019. Efforts in the quarter focused on integrating CORES with existing processes and identifying how to improve its value. Rollout for entities in the United States will continue more fully in 2020, in coordination with the release of the Align platform.

Align

The ERO Enterprise plans to roll out the Align platform later in 2020. The platform will improve and standardize compliance monitoring and enforcement processes between NERC and the Regional Entities. This will make CMEP activities more effective and efficient across the ERO Enterprise.


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British Columbia

Under the administration agreement with the British Columbia Utilities Commission (BCUC), WECC acts as the BCUC’s administrator to carry out registration reviews and compliance activities relating to the BC Mandatory Reliability Standards (MRS) Program.

In November 2019, the BCUC approved the implementation plan submitted by WECC for 2020, which includes audits of eight entities during the year. During the quarter, for the first time, the BCUC issued an order for a Notice of Penalty, which was for the violation of four CIP standards. The redacted Notice of Penalty is a public document and is posted on the BCUC’s website.

Alberta

Under the services agreement with the Alberta Market Surveillance Administrator (MSA), WECC acts as the compliance monitor for certain activities related to Alberta Reliability Standards (ARS) specific to the Alberta Electric System Operator (AESO).

Development of the 2020 implementation plan for WECC’s activities in the province took place in Q4 2019. The MSA approves the implementation plan each January.

In 2019, at the request of the MSA, WECC began piloting risk assessment activities for other entities in Alberta. The MSA and WECC agreed to continue these reviews in 2020.

Mexico

Under the annual services contract between Comisión Reguladora de Energía (CRE) and WECC, WECC carries out compliance activities related to mandatory compliance. WECC is working with CRE on the contract for 2020. In the meantime, WECC continues to carry out activities in Baja California Norte to support grid reliability and security.

WECC conducted an audit in Mexico in September 2019; the next will be in 2022. WECC providesoutreach, where valuable, to CRE and government entities responsible for the reliability of the Mexican national electric grid. WECC is also working with Centro Nacional de Control de Energía (CENACE), an entity in Mexico, to provide outreach designed specifically for entities.


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8

CMEP Metrics

PNC Inventory

Self-reports increased for the fourth consecutive year in 2019. In part, the increase reflects improving detective controls and—given that most of these PNCs are minimal risk—is not necessarily a reliability concern.

The number of PNCs processed by WECC in 2019 increased 35% over 2018. However, due to this continued influx of new PNCs, the inventory increased 16%.

Processing Times

Due to a long-term imbalance in the inflow and outflow rates of PNCs, median processing time increased 30% during 2019. Reducing processing times is a key CMEP objective, with a goal of 50% reduction by the end of the year. During 2020, WECC will revise enforcement activities to ensure smooth processing of minimal-risk issues while allocating time and resources for proper mitigation and enforcement of higher-risk issues.

PNC Inventory

PNC Processing TimeOne-Year Rolling Median


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Mitigation Completion

Mitigation is complete and verified for half of open PNCs.1 Mitigation of a PNC involves—

∑ Submission of a plan to correct noncompliance and prevent recurrence;

∑ Acceptance of the plan by WECC;∑ Submission of certification that the

plan is complete; and∑ WECC verification of completion.

Mitigation goes beyond remediation—the return to compliance. Entities remediate within a median of 11 days after discovering an issue. The focus of mitigation is generally on preventive controls.

Entity Discovery of Noncompliance

Although WECC has seen strong improvements in detective controls, long delays between when noncompliance begins and discovery by the entity remain common. The proportion of self-reported PNCs discovered by the entity within 90 days of when noncompliance began remained steady, but low, in 2019, indicating continued opportunity for outreach to help entities detect and remediate noncompliance.

1 Including minimal-risk Compliance Exceptions for which WECC opted not to verify completion.

Mitigation Status

PNCs Discovered Within 90 DaysOne-Year Rolling Proportion


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Most-Reported Requirements

The top twelve most-reported requirements, representing nearly half of PNCs, are all time-based, zero-defect, or phased-implementation. The ERO Enterprise has named seven of these requirements as areas of focus in the 2020 CMEP IP.2 Outreach, including the Reliability and Security Workshop, and monitoring on these issues will help reduce reliability and security risks from noncompliance.

Most-Reported Requirements

2 Management of Access and Access Controls: CIP-004-6 R4. and R5., CIP-006-6 R1., CIP-007-6 R2., CIP-010-2 R1. Gaps in Program Execution: CIP-002-5.1a R1., PRC-005-6 R3.


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Description of Most-Reported Requirements

Requirement Description

CIP-004-6 R5. Access revocation

CIP-004-6 R4. Access management programs

CIP-007-6 R2. Security patch management

CIP-010-2 R1. Configuration monitoring

PRC-005-6 R3. Protection system maintenance intervals

CIP-004-6 R2. Cybersecurity training programs

CIP-006-6 R2. Visitor control programs

CIP-006-6 R1. Physical security plan activities

CIP-007-6 R5. System access control

CIP-004-6 R3. Personnel risk assessment programs

CIP-010-2 R3. Vulnerability assessments

CIP-002-5.1a R1. BES Cyber System identification


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Reliability and Security Oversight Report

Board of Directors Meeting

March 11, 2020


Steve GoodwillSr. Vice President

Reliability and Security Oversight, General Counsel

and Secretary


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ß One team under one executiveß Violation processing changeß Tailored monitoring ß Focus on internal controlsß Regular communication with entities

2

R&S Oversight Going Forward


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ß Facility Ratings• Purpose of the Standard: To ensure that Facility

Ratings used in the reliable planning and operation of the BES are determined based on technically sound principles. A Facility Rating is essential for the determination of System Operating Limits.

3

FAC-008


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4

FAC-008

ß Widespread discrepancies between documented ratings vs. actual Element/Facility ratings

ß 10 entities with mitigation in process, accounting for 40% of BES transmission miles in the West• 6 entities now mitigated = another 10%

ß 15% of applicable entities audited since 2016; 2/3 have had self-certification

ß New in 2020: Guided self-certification to reach entities not yet audited


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Contact:Steve GoodwillSr. Vice PresidentReliability and Security Oversight, General Counsel and Secretary


80

Member Advisory Committee (MAC)Report to the WECC Board of Directors

Russell Noble, MAC Chair

March 11, 2020


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MAC Report to the Board—March 11, 2020

2

Strategic Purpose

The Member Advisory Committee (MAC) advises the Board of Directors (Board) on any matters the Board requests the committee to evaluate or consider, and advises the Board on policy, business planning, and budgetary matters as the committee deems appropriate.

WECC Board Action Items

The MAC is requesting Board approval of the revised MAC Charter at its March 11, 2020, meeting.

Current Year Goals

∑ Change of Leadership Approach;∑ Engage More in Reliability; ∑ Improve Class Communications;∑ Engage in Section 4.9 Review; and∑ Lead Net Energy for Load (NEL) Task Force.

Major Accomplishments and Planned Activities

1. Annual Workshop

The MAC discussed strategic direction and member engagement at WECC to gather current MAC thinking and give input to the Section 4.9 Review. The following are a few important items from the workshop and presentation.

Strategic Direction

WECC’s Strengths—

∑ Compliance Monitoring and Enforcement Program (CMEP), studies assessing reliability, event analysis, and short-term risk studies;

∑ Integration with ERO Enterprise and communication with registered entities; and∑ Smooth and predictable audit process.

WECC’s Vulnerabilities—

∑ Informing policy makers of the reliability implications of energy policies;∑ Working with utilities to solve problems; and∑ Reducing the study and reporting periods in which to identify issues and emphasizing

useful steps.


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https://www.wecc.org/_layouts/15/WopiFrame.aspx?sourcedoc=/Administrative/2019-12-MAC-annual-workshop-notes.pdf&action=default&DefaultItemOpen=1

https://www.wecc.org/_layouts/15/WopiFrame.aspx?sourcedoc=/Administrative/2020-01-29-2019-annual-workshop-summary.pptx&action=default&DefaultItemOpen=1


3

Mitigation Strategies—

∑ Develop a communication plan to reach out to and educate policymakers on the reliability implications of aggressive carbon-free legislation; WECC needs to lead the conversation to find appealing solutions for the Western Interconnection.

Member Engagement

Problem Question—

∑ How can members measure the benefits they receive from their employees’ participation in WECC activities?

Observations—

∑ WECC is dependent on member and stakeholder participation and subject matter expertise.

∑ There is a continued decline in participation in WECC activities; this seems to be a problem throughout the ERO Enterprise.

Mitigation Strategies—

∑ Find out what members and stakeholders want from WECC. Then create educational or practical outputs that are valuable to members and stakeholders.

2. Assessment of Risk Priorities

In preparation for the Reliability Workshop on February 20, the MAC discussed its perspectives on the NERC 2019 ERO Reliability Risk Priorities Report. The MAC agreed with all the risks in each of the four risk profiles identified in the report. However, due to the number of Remedial Action Schemes (RAS) in the West, the MAC believes that the RAS need to be re-examined keeping in mind the increase in and variability of wind and solar. Also, due to the increase in extreme natural events and regulatory drivers in the West that are leading to the shutdown of grid components in advance of predicted extreme natural events, the MAC encourages WECC to work with regulators and policymakers to highlight the serious reliability repercussions and try to find better solutions. The MAC also believes regulators and policymakers have overlooked the distribution system’s importance to the Bulk Power System (BPS); the distribution system’s importance to reliability must be explained to them. The West needs to consider and coordinate reliability programs for the distribution system with the BPS since reliability standards do not address distribution system threats.

3. Resource Adequacy

Every year, NERC develops its Long-Term Reliability Assessment (LTRA) The LTRA serves as a comprehensive, reliability-focused perspective on the 10-year outlook for the BPS that informs


83

https://www.nerc.com/comm/RISC/Related%20Files%20DL/RISC%20ERO%20Priorities%20Report_Board_Accpeted_November_5_2019.pdf#search=2019%20ERO%20Reliability%20Risk%20Priorities%20Report


4

industry planners and operators, regulators, and policymakers of potential risks. At the MAC’s January meeting, NERC staff presented the LTRA, which indicated that, except for ERCOT and Ontario, there is enough generation supply. The MAC discussed counterpoints to the LTRA of potentially under-reporting intermittent resources; understating resources, noting that there may be a separation from state and provincial statutes; and underestimating reliability risks due to a lack of foresight. WECC staff offered to continue the conversation of resource adequacy at the March meeting, in which the MAC will give guidance as to what will help advance the conversation. Since this is an important report, and the draft 2020 LTRA Schedule is available, the MAC encourages WECC to ask its stakeholders to actively participate in the LTRA process as far as reviewing and commenting on the WECC part of the LTRA.

This may help WECC show its value to its members and stakeholders.

4. WECC Information Sharing Policy and Information Reporting Policy

The MAC asked WECC staff to give its reasons and rationale for changing the policies and encouraged WECC to involve the Standing Committees. To promote transparency, the MAC asked WECC to consider going back to its previous comment submission platform in which stakeholders could submit comments directly to the WECC website and see all submitted comments. WECC received this feedback and will accept comments until the policies are posted for approval in June.


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https://www.wecc.org/_layouts/15/WopiFrame.aspx?sourcedoc=/Administrative/08a%202019LTRA.pptx&action=default&DefaultItemOpen=1

https://www.wecc.org/_layouts/15/WopiFrame.aspx?sourcedoc=/Administrative/08b%20LTRA%20Counterpoint%20ver%203%20final.pptx&action=default&DefaultItemOpen=1


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MAC Membership

∑ Class 1o Cherilyn Randall (Bonneville Power Administration)o Dana Cabbell (Southern California Edison)o Thomas French (Pacific Gas and Electric)

∑ Class 2o Russ Noble (Cowlitz Public Utility District #1)o Richard “Dick” Ferreira (Transmission Agency of Northern California)o Linda Jacobson-Quinn (Farmington Electric Utility System)

∑ Class 3o Duncan Browno Brian Evans-Mongeon (Utility Services, Inc.)o Brian Theaker (Middle River Power)

∑ Class 4o Michele Beck (Utah Office of Consumer Services)o Fred Heutte (Northwest Energy Coalition)o Robert Nelson (Montana Consumer Counsel)

∑ Class 5o Grace Anderson (California Energy Commission)o Thad LeVar (Public Service Commission of Utah)o Kara Fornstrom (Wyoming Public Utilities Commission)

∑ International Representationo Brenda Ambrosi (BC Hydro)o Diana Wilson (Alberta Electric System Operator)o Ernesto Olivas (Comisión Federal de Electricidad)


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Member Advisory Committee

March 11, 2020

Russell NobleMAC Chair


86

ß Held December 4, 2019ß Focused on:• Strategic Direction• Member Engagement

2

MAC Annual Workshop


87

ß Strengths• CMEP; studies assessing reliability, event analysis, and short-term risk

• Integration with ERO Enterprise and communication with registered entities

• Smooth, consistent audit process

ß Vulnerabilities• Informing policy makers of the implications of energy policies

• Working with utilities to solve problems

• Reducing the periods in which to identify issues and emphasizing useful steps

ß Mitigation Strategies• Develop plan to educate policymakers on implications of aggressive carbon-free

legislation; WECC should lead conversation, find appealing solutions for the Western Interconnection

3

Strategic Direction


88

ß Problem Question• How can members measure the benefits of their employees’

participation in WECC activities?

ß Observations• WECC depends on member and stakeholder participation, and subject

matter expertise.

• Participation in WECC activities is declining; this seems to be problem throughout the ERO Enterprise.

ß Mitigation Strategies• Find out what members and stakeholders want from WECC. Then

create educational or practical outputs that are valuable to members and stakeholders.

4

Member Engagement


89

• BPS Planning

• Resource Adequacy and Performance

• Increased Complexity in Protection and Control Systems

• Situational Awareness Challenges

• Human Performance and Skilled Workforce

• Changing Resource Mix

ï All are important to the West

ï WECC has more RAS and significant changes in resource mix

Grid Transformation

• Extreme Natural Events, Widespread Impact

ï GMD

• Other Extreme Natural Events

ï Government regulatory drivers working against reliability

ï Should WECC work with industry to find better response?

Extreme Natural Events

5

Assessment of Risk Priorities


90

6


• Physical

• Cyber

• Electromagnetic Pulse

ï Consider topography

Security Risks

• Communications

• Water/Wastewater

• Oil

• Natural Gas

• Electrical Distribution

ï Essential to mix; important to West

ï Infrastructure should be highlighted

Critical Infrastructure Interdependencies


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ß Appears right for WECC’s needsß Might consider “managing” wind and fire risks and impacts

7


1. Changing Resource Mix

2. BPS Planning

3. Resource Adequacy and Performance

4. Increasingly Complex Protection and Control Systems

5. Human Performance and Skilled Workforce

6. Loss of Situational Awareness

7. Extreme Natural Events

8. Physical Security Vulnerabilities

9. Cybersecurity Vulnerabilities

10. Critical Infrastructure Interdependencies

MANAGE

MANAGE

MANAGE

MONITOR

MONITOR

MANAGE

MONITOR

MONITOR

MANAGE

MANAGE


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ß NERC 2019 Long-Term Reliability Assessment (LTRA)• NERC presentation

◦ Enough generation supply except for ERCOT and Ontario

• MAC counterpoints◦ Potential under-reporting of intermittent resources,

understating resources, and underestimating risks due to lack of forethought

• WECC to join conversation in March and get Pacific Northwest perspective

8

Resource Adequacy


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ß Policies posted in Decemberß Suggestions:• Include drivers and rationale in summary

document• Outreach to committees• Transparent comment submission platform

9

Information Sharing & Reporting Policies


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Contact:Russell NobleMAC [email protected]

10


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March 11, 2020, Board of Directors Meeting

Information Item

Reliability Workshop—Main Themes


Background

WECC’s Strategic and Operating Planning Process outlines how WECC gathers the input it uses to develop the strategic and planning documents addressed in its Business Plan Model. As Figure 1 shows, WECC gets input from advisory bodies like the Member Advisory Committee (MAC) and the Western Interconnection Regional Advisory Body (WIRAB) to help form its Near-Term Priorities.

Figure 1—WECC Business Plan Model

On February 20, WECC hosted the 2020 Reliability Workshop in conjunction with the Standing Committee meetings. The workshop allowed the MAC, WIRAB, and the Standing Committees to consider the NERC Reliability Issues Steering Committee (RISC) Report, with a focus on the Western Interconnection. It also gave attendees an opportunity to provide input on other reliability issues in the West.

The workshop presentations covered WECC’s Strategic Planning Process, the RISC Report, the Standing Committee’s activities on current Near-Term Priorities, and the MAC’s and WIRAB’s recommendations about reliability risk priorities for the Western Interconnection. After the presentations, attendees took part in tabletop discussions. Those discussions will help form the new recommended Near-Term Priorities, which will be explored further at the Board Workshop on May 5.

Open Session Board Meeting Book - Reliability Workshop: Key Themes

96

Reliability WorkshopKey Themes

March 11, 2020

Branden SudduthVP Reliability Planning &

Performance Analysis


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ß 109 total attendees from 66 organizations• 72 in person• 37 webinar

ß Attendees from MIC, OC, RAC, MAC, WIEB, WIRAB, NERC, FERC, and WSC

ß 11 groups in the room ß 1 webinar group

2

Attendance


98

ß NERC Reliability Issues Steering Committee Report

ß WIRAB Recommended Prioritiesß MAC Recommendationsß How current Near-Term Priorities are being

addressed by Standing Committees

3

Presentations


99

ß Representation of inverter-based resourcesß Impacts of the changing resource mixß Expansion of RC and market service

providersß Clarify roles in BPS planning

4

2019–2020 Near-Term Priorities


100

ß Resource adequacy ß Reliability impacts of the changing market

structureß Extreme natural events (primarily focused on

wildfires)ß Cybersecurityß Informing policymakersß Knowledge transfer

5

Common Discussions


101

6

WECC Priorities

Reliability Issues

Monitor

Initiate & Study

Participate & Support

Let others take the lead (NERC, DOE, EPRI, etc.), but participate and communicate results

Stay abreast of the issue, but let others take the lead

WECC Priority Initiative—Issue has a unique effect on or importance to the Western Interconnection, or WECC can be make a material contribution


102

Reliability Workshop

(Feb 20)

Draft Near-Term Priorities

Developed (Feb 20–May 5)

Board Workshop

(May 5)

Near-Term Priorities

Updated and Posted for

Stakeholder Comment (May 5–22)

Board Approval of Near-Term Priorities (June 17)

Committee Work Plans

Updated (Fall)

7

Timeline


103

Contact:Branden SudduthVP, Reliability Planning and Performance [email protected]

8


104

Section 4.9 Review Committee (4.9RC)Report to the WECC Board of Directors

Ric Campbell, 4.9RC Chair

March 11, 2020

Open Session Board Meeting Book - Board Committee Reports

105

4.9RC Report to the Board—March 11, 2020

2

Strategic Purpose

The Section 4.9 Review Committee exists to review, under the direction of the Board of Directors (Board), the structure and governance of the organization required by Section 4.9 of the WECC Bylaws.


The committee is not requesting action from the Board at this time.


Since the December 2019 meeting of the Board, the committee has comprised two work groups to produce recommendations for committee consideration, feedback, and approval. Those work groups have produced preliminary recommendations that the committee considered at a meeting on March 10 in Salt Lake City. The chair will give an oral report on these at the Board meeting on March 11.

The work groups are:

1. Stakeholder Engagement Work Group

This workgroup consists of Margaret Albright, Bonneville Power Administration; Eric Baran, Western Interconnection Regional Advisory Body (WIRAB); Ric Campbell, Board; Robert Follini, Avista; and Linda Jacobson-Quinn, Farmington; with Steve Goodwill of WECC as chair.

2. Strategic Planning Process Work Group

This workgroup consists of Duncan Brown, Member Advisory Committee representative; Lisa Milanes, California ISO; Jennifer Rogers, Western Area Power Administration (WAPA); Holly Taylor, WIRAB; and Richard Woodward, Board; with Jillian Lessner of WECC as chair.

Both groups are holding regular open meetings and posting working documents on the WECC website.

The work groups will take feedback from the 4.9RC meeting on March 10 and revise and refine their recommendations. Recommendations will be posted for comment, approved by the 4.9RC, and brought to the Board for approval in June.


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https://www.wecc.org/BOD/Pages/S49RC.aspx

https://www.wecc.org/BOD/Pages/S49RC.aspx

Finance and Audit Committee (FAC)Report to the WECC Board of Directors

Oral Report

Joe McArthur, FAC Chair

March 11, 2020


107

WECC Standards Committee (WSC)Report to the WECC Board of Directors

James Avery, WSC Chair

Steve Rueckert, Director of Standards

March 11, 2020


108

WSC Report to the Board—March 11, 2020

2

Highlights

∑ The WSC seeks Board approval of a revised WECC Regional Variance—page 1.∑ NERC extends the compliance waiver for BAL-002-WECC-2a, Requirement R2—page 3.

Strategic Purpose

The WSC oversees the implementation of the WECC Reliability Standards Development Procedures (Procedures).

The WSC will—

1. Maintain and administer the Procedures, including:a. Due process,b. Balloting,c. Annual review of the WECC Glossary of Terms and Naming Conventions, and d. Meeting the quality control attributes of FERC Order 672.

2. Administer each Standard Authorization Request (SAR) to ensure the project is—a. Within WECC’s authority to develop,b. Appropriate for development by WECC, and c. Within the scope of the SAR, as may be changed by the WSC.

3. Monitor and manage drafting team activities, including:a. Team selection, andb. Provision of general oversight and guidance to include a description and explanation of the

project to be drafted and time prioritization where needed.4. Monitor and manage the projects created under the Procedures, including prioritization.5. Perform other duties assigned by the Board.


In keeping with its charter, the WSC seeks Board approval of a revised WECC Regional Variance to NERC Reliability Standard PRC-006-3. The Procedures require each document to be reviewed at least once every five years. The revisions to this variance are a result of this review.

Approve WECC Regional Variance to NERC PRC-006-3, Automatic Underfrequency Load Shedding.

The proposed revisions to the variance are—


109


3

1. An update to the preamble of the Regional Variance to clarify that Requirements R14 and R15 of NERC PRC-006-3 do not apply to entities in the Western Interconnection;

2. A revision clarifying that “Planning Coordinator” (PC), as used in the variance, is specific to those PCs providing PC services to entities in the Western Interconnection, regardless of where the PC is located; and

3. A revision that clarifies syntax, adopts NERC’s most current drafting conventions, and updates the Violation Severity Level table.

Clean and redlined versions of the revised variance are included in the Board packet. A complete copy of the NERC Reliability Standard with the WECC Regional Variance is not included in the Board packet. They will be included in the NERC Reliability Standard once they are approved by the WECC Board.

The ballot to approve the proposed revisions to the variance achieved a 97.4% quorum and resulted in a weighted sector approval of 100%.

Current Year Goals

∑ Keep the WECC Standards Development Process moving forward by overseeing the drafting teams.

∑ Act on requests and recommendations from the drafting teams.∑ Review the WSC Charter and WECC Procedures to revise and improve them.


1. January 13, 2020—NERC extends compliance waiver

On March 29, 2017, NERC approved WECC’s request for a temporary waiver of BAL-002-WECC-2a, Requirement 2, to registered entities in the Western Interconnection who participatein the field test to assess the reliability impacts of the retirement of BAL-002-WECC-2a, Requirement R2. The approved waiver was for two years and ended May 1, 2019. On March 22, 2019, WECC submitted a request to extend the compliance waiver for another year. This was done so that WECC did not have to start enforcing the requirement during the time in which the WSC was working to complete the WECC ballot, prepare the materials to send to NERC for consideration, and NERC’s filing with FERC. On September 6, 2019, NERC filed a joint petition to approve the proposed Regional Reliability Standard BAL-002-WECC-3, which reflects the retirement of Requirement R2.

It was unclear whether FERC would act on the filing before the compliance waiver ended on April 30, 2020. WECC requested another one-year extension of the compliance waiver on January 12, 2020. On January 13, 2020, NERC approved the extension through April 30, 2021. If


110


4

FERC approves BAL-002-WECC-3 before the conclusion of the one-year extension, the compliance waiver will be terminated because the compliance obligation will be gone. If FERC does not approve BAL-002-WECC-3, the compliance waiver will be terminated at that time and the compliance obligation will resume.

2. January 22, 2020—Standards Briefing

The Procedures call for a Standards Briefing before balloting any document developed under the Procedures. The drafting team chair for Project WECC-0138, PRC-006 WECC Regional Variance, several drafting team members, and WECC Standards staff were available to answer stakeholder questions. There were no concerns raised during the call.

3. March 10, 2020—WSC Meeting

The WSC met to approve forwarding the variance described above to the Board for approval. The WSC also anticipates addressing a request for approval of at least one new Standards Authorization Request.


111

WECC Standards Committee

March 11, 2020

James AveryWSC Chair


112

ß Review initiated by the five-year review requirement

ß Revisions—• Clarified PRC-006-3, R14 and R15 do not apply in

the Western Interconnection◦ Covered in the Regional Variance

• Clarified applicability• Updated syntax and drafting conventions• Updated Violation Severity Level table

2

Approve Variance to PRC-006-3


113

ß Strong support from commenters during development

ß 97.4% quorumß 100% weighted approval

3

Approve Variance to PRC-006-3


114

Contact:Steve [email protected]

4


115

March 11, 2020, Board of Directors Meeting

Approval Item

WECC Regional Variance to PRC-006-3, Automatic Underfrequency Load Shedding


Board Resolution

Resolved, that the WECC Board of Directors, acting upon the recommendation of the WECC Standards Committee (WSC) at the meeting of the Board on March 11, 2020, hereby approves the WECC Regional Variance to NERC Reliability Standard PRC-006-3, Automatic Underfrequency Load Shedding, as presented and attached.

Background

Clean and redline versions of the proposed Regional Variance are attached to this document.

The WECC Reliability Standards Development Procedures call for a five-year review of all documents developed under the Procedures. The proposed revisions to this WECC Regional Variance are a result of that review.

The review resulted in these proposed revisions:

∑ Clarification that Requirements R14 and R15 of PRC-006-3 do not apply to entities in the Western Interconnection (WI). The reliability substance of these requirements is addressed by the Regional Variance.

∑ Clarification that “Planning Coordinator” (PC), as used in the Regional Variance, is specific to those PCs providing PC service(s) to entities within the WI, regardless of where the PC is located.

∑ Syntax and drafting convention updates.∑ Revisions to the Violation Severity Level table for the Regional Variance.

The Ballot Pool approved the project with a 97.4% quorum and a 100% weighted approval. Complete ballot results are attached to this document.

The Ballot Pool consisted of 38 members. Thirty-three voted affirmatively. No negative votes were cast, there were four abstentions, and one Ballot Pool member did not vote.

If the WECC Board approves this Regional Variance, it will go to the NERC Board of Trustees (BOT) for consideration at the NERC BOT meeting in May.

Recommendation

The WSC chair recommends approval of the Regional Variance.


116

Board Policy Recommendation

2

Issues and Risks

If the proposed Regional Variance is not approved, the applicability of the variance and compliance with the requirements will be ambiguous.


117

Final Ballot Results

WECC-0138 PRC-006-3


Ballot Name: WECC-0138 PRC-006-3, Automatic Underfrequency Load Shedding, five-year Review of Regional Variance

Overview: This project: 1) updates the preamble of the Regional Variance (RV) to indicate Requirements R14 and R15 of the underlying standard do not apply to entities in the Western Interconnection, 2) clarifies that Planning Coordinator (PC), as used in the RV, is specific to those PCs providing PC service(s) to entities within the Western Interconnection, regardless of where the PC is located, and 3) clarifies syntax, adopts NERC’s most current drafting conventions, and updates the Violation Severity Level table.

Ballot Pool Open: 01/07/2020 Ballot Pool Closed: 01/21/2020

Ballot Opened: 01/23/2020 Ballot Closed: 02/26/2020

Total Ballot Pool: 38 Total Votes: 36

Quorum: 97.4% Weighted Votes: 100%

Ballot Results: Pass

Voting Sectors

Total in Ballot Pool

In-Pool Affiliates Excluded

Votes Non-

AbstainSector Weight

Yes Votes

Weighted Segment

VoteNo

Votes Abstain

Total Votes for Quorum

Did Not Vote

Transmission Owners 10 9 0.9 9 90.0% 0 1 10 0Regional Transmission

Organizations (RTO) and Independent System Operators (ISO) 1 1 0.1 1 10.0% 0 0 1 0Load-Serving Entities (LSE) 8 7 0.7 7 70.0% 0 1 8 0Transmission Dependent Utilities (TDU) 2 2 0.2 2 20.0% 0 0 2 0Electric Generators 8 7 0.7 7 70.0% 0 1 8 0Electricity Brokers, Aggregators, and Marketers 9 7 0.7 7 70.0% 0 1 8 1Large Electricity End Users 0 0 0 0 0.0% 0 0 0 0Small Electricity Users 0 0 0 0 0.0% 0 0 0 0Federal, State, Provincial Regulatory, other Gov. Entities 0 0 0 0 0.0% 0 0 0 0Regional Entities 0 0 0 0 0.0% 0 0 0 0Totals 38 0 33 3.3 33 100.0% 0 4 37 1


118


2

Title Company Sector Vote Comments Created By

WECC-0138 Tacoma Power Load-Serving Entities (LSE)

Yes 0 Twila Hofer

WECC-0138 Tacoma Power Electric Generators

Yes 0 Twila Hofer

WECC-0138 Tacoma Power Transmission Owners

Yes 0 Twila Hofer

WECC-0138 Tacoma Power Transmission Dependent Utilities (TDU)

Yes 0 Twila Hofer

WECC-0138 Tacoma Power Electricity Brokers, Aggregators, and Marketers

Yes 0 Twila Hofer

WECC-0138 Salt River Project

Electric Generators

Yes 0 Kevin Nielsen

WECC-0138 Southwest Power Pool

Regional Transmission Organizations (RTO) and Independent System Operators (ISO)

Yes 0 Alan Wahlstrom

WECC-0138 PacifiCorp Transmission Owners

Abstain Abstaining from this vote

Suzanne Brignone


119


3


WECC-0138 PacifiCorp Electric Generators


Suzanne Brignone

WECC-0138 PacifiCorp Load-Serving Entities (LSE)


Suzanne Brignone

WECC-0138 PacifiCorp Electricity Brokers, Aggregators, and Marketers


Suzanne Brignone

WECC-0138 Southern California Edison Company

Load-Serving Entities (LSE)

Yes 0 Romel Aquino

WECC-0138 Public Utility District No. 1 of Chelan County

Transmission Owners

Yes 0 Ginette Lacasse

WECC-0138 Bonneville Power Administration

Transmission Owners

Yes 0 Kammy Rogers-Holliday

WECC-0138 Gerry Huitt Electric Generators

Yes 0 Donovan Crane

WECC-0138 Arizona Public Service Company


Yes 0 Vivian Vo


Electricity Brokers, Aggregators, andMarketers

Yes 0 Chinedu Ochonogor


Electric Generators

Yes 0 Kelsi Rigby


Transmission Owners

Yes 0 Michelle Amarantos


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4


WECC-0138 Public Service Company of Colorado (Xcel Energy)

Transmission Owners

Yes 0 Donovan Crane

WECC-0138 Sacramento Municipal Utility District

Electric Generators

Yes 0 Joe Tarantino


Transmission Dependent Utilities (TDU)

Yes 0 Joe Tarantino


Transmission Owners

Yes 0 Joe Tarantino



Yes 0 Joe Tarantino


Electricity Brokers, Aggregators, and Marketers

Yes 0 Joe Tarantino

WECC-0138 Balancing Authority of Northern California

Transmission Owners

Yes 0 Joe Tarantino

WECC-0138 Balancing Authority of Northern California


Yes 0 Joe Tarantino

WECC-0138 Platte River Power Authority

Electric Generators

Yes 0 Tyson Archie



Yes 0 Wade Kiess


121


5



Transmission Owners

Yes 0 Matthew Thompson



Yes 0 Sabrina Martz


Electric Generators

Yes 0 Meaghan Connell



Yes 0 Ken Lanehome



Yes 0 Andrew Meyers



Yes 0 Joyce Gundry

WECC-0138 Western Area Power Administration


Yes 0 Rosemary Jones

WECC-0138 Western Area Power Administration

Transmission Owners

Yes 0 Sean Erikson

WECC-0138 Salt River Project


0 0 Bobby Olsen


122

Standard PRC-006-3 — Automatic Underfrequency Load Shedding

Developed as WECC-0138 Page 1 of 14

A. Introduction: Formatting will be updated.

B. Requirements and Measures: Comments/requests for changes to Section B are outside the scope of this project and will not be addressed. Only the WECC Regional Variance is offered for comment.

C. Compliance: The Compliance section may be updated to NERC’s most recent verbiage, after consultation with NERC.

D. Regional Variances: Only the WECC Regional Variance is within the scope of this project.

D.B. Regional Variance for the Western Electricity Coordinating Council

The following Interconnection-wide Regional Variance (RV) variance shall be applicable in the Western Interconnection Electricity Coordinating Council (WECC) and replaces, in their entirety, Requirements R1 through R5, and R111 through R15., R2, R3, R4, R5, R11, R12, and R13.

As used in the RV, Planning Coordinator is specific to those Planning Coordinators providing Planning Coordinator service(s) to entities within the Western Interconnection, regardless of where the Planning Coordinator is located.

D.B.1. Each Planning Coordinator shall participate in a joint regional review with the other Planning Coordinators in the WECC Regional Entity area that develops and documents criteria, including consideration of historical events and system studies, to select portions of the Bulk Electric System (BES) that may form islands. [VRF: Medium][Time Horizon: Long-term Planning]

M.D.B.1. Each Planning Coordinator will shall have evidence such as reports, or other documentation of its criteria, developed as part of the joint regional review with other Planning Coordinators in the WECC Regional Entity area to select portions of the Bulk Electric System that may form islands including how system studies and historical events were considered to develop the criteria per Requirement D.B.1.

D.B.2. Each Planning Coordinator shall identify one or more islands from the regional review (per D.B.1) to serve as a basis for designing a Western Interconnection-

1 Posting 1 was originally posted stating “…Requirements R1 through R5 and R12 through R15.” (Emphasis added.) The typographical error was discovered and corrected on January 22, 2020. The correction was noted during the January 22, 2020, Standards Briefing and augmented by an email to the Standards Email List prior to the opening of the ballot on January 23, 2020. The correction was addressed by the WECC Standards Committee (WSC) during its March 2020 meeting.


123



wide region-wide coordinated UFLS program including: [VRF: Medium][Time Horizon: Long-term Planning]

D.B.2.1. Those islands selected by applying the criteria in Requirement D.B.1, and

D.B.2.2. Any portions of the BES designed to detach from the Western Interconnection (planned islands) as a result of the operation of a relay scheme or Remedial Action Scheme. Special Protection System.

M.D.B.2. Each Planning Coordinator will shall have evidence such as reports, memorandums, e-mails, or other documentation supporting its identification of an island(s), from the regional review (per D.B.1), as a basis for designing a Western Interconnection-wide region-wide coordinated UFLS program meeting that meet the criteria in Requirement D.B.2 Parts D.B.2.1 and D.B.2.2.

D.B.3. Each Planning Coordinator shall adopt a UFLS program, coordinated across the Western Interconnection, WECC Regional Entity area, including notification of and a schedule for implementation by UFLS entities within its area, that meets the following performance characteristics in simulations of underfrequency conditions resulting from an imbalance scenario, where an imbalance = [(load — actual generation output) / (load)], of up to 25 percent within the identified island(s). [VRF: High][Time Horizon: Long-term Planning]

D.B.3.1. Frequency shall remain above the Underfrequency Performance Characteristic curve in PRC-006-3 - Attachment 1, either for 60 seconds or until a steady-state condition between 59.3 Hz and 60.7 Hz is reached, and

D.B.3.2. Frequency shall remain below the Overfrequency Performance Characteristic curve in PRC-006-3 - Attachment 1, either for 60 seconds or until a steady-state condition between 59.3 Hz and 60.7 Hz is reached, and

D.B.3.3. Volts per Hz (V/Hz) shall not exceed 1.18 per unit for longer than two seconds cumulatively per simulated event, and shall not exceed 1.10 per unit for longer than 45 seconds cumulatively per simulated event at each generator bus and generator step-up transformer high-side bus associated with each of the following:

D.B.3.3.1. Individual generating units greater than 20 MVA (gross nameplate rating) directly connected to the BES

D.B.3.3.2. Generating plants/facilities greater than 75 MVA (gross aggregate nameplate rating) directly connected to the BES


124



D.B.3.3.3. Facilities consisting of one or more units connected to the BES at a common bus with total generation above 75 MVA gross nameplate rating.

M.D.B.3. Each Planning Coordinator will shall have evidence such as reports, memorandums, e-mails, program plans, or other documentation of its adoption of a UFLS program, coordinated across the Western Interconnection, WECC Regional Entity area, including the notification of the UFLS entities of theimplementation schedule meeting , that meet the criteria in Requirement D.B.3 Parts D.B.3.1 through D.B.3.3.

D.B.4. Each Planning Coordinator shall participate in and document a coordinated UFLS design assessment with the other Planning Coordinators in the Western Interconnection WECC Regional Entity area at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2. The simulation shall model each of the following: [VRF: High][Time Horizon: Long-term Planning]

D.B.4.1. Underfrequency trip settings of individual generating units greater than 20 MVA (gross nameplate rating) directly connected to the BES that trip above the Generator Underfrequency Trip Modeling curve in PRC-006-3 - Attachment 1.

D.B.4.2. Underfrequency trip settings of generating plants/facilities greater than 75 MVA (gross aggregate nameplate rating) directly connected to the BES that trip above the Generator Underfrequency Trip Modeling curve in PRC-006-3 - Attachment 1.

D.B.4.3. Underfrequency trip settings of any facility consisting of one or more units connected to the BES at a common bus with total generation above 75 MVA (gross nameplate rating) that trip above the Generator Underfrequency Trip Modeling curve in PRC-006-3 -Attachment 1.

D.B.4.4. Overfrequency trip settings of individual generating units greater than 20 MVA (gross nameplate rating) directly connected to the BES that trip below the Generator Overfrequency Trip Modeling curve in PRC-006-3 — Attachment 1.

D.B.4.5. Overfrequency trip settings of generating plants/facilities greater than 75 MVA (gross aggregate nameplate rating) directly connected to the BES that trip below the Generator Overfrequency Trip Modeling curve in PRC-006-3 — Attachment 1.

D.B.4.6. Overfrequency trip settings of any facility consisting of one or more units connected to the BES at a common bus with total generation


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above 75 MVA (gross nameplate rating) that trip below the Generator Overfrequency Trip Modeling curve in PRC-006-3 —Attachment 1.

D.B.4.7. Any automatic Load restoration that impacts frequency stabilization and operates within the duration of the simulations run for the assessment.

M.D.B.4. Each Planning Coordinator will shall have dated evidence such as reports, dynamic simulation models and results, or other dated documentation of its participation in a coordinated UFLS design assessment with the other Planning Coordinators in the WECC Regional Entity area that demonstrating that es it meets Requirement D.B.4 Parts D.B.4.1 through D.B.4.7.

D.B.5. through D.B.10. Reserved

D.B.11. Each Planning Coordinator, in whose area a BES islanding event results in system frequency excursions below the initializing set points of the UFLS program, shall participate in and document a coordinated event assessment with all affected Planning Coordinators to conduct and document an assessment of the event within one year of event actuation to evaluate: [VRF: Medium][Time Horizon: Operations Assessment]

D.B.11.1. The performance of the UFLS equipment,

D.B.11.2 The effectiveness of the UFLS program

M.D.B.11. Each Planning Coordinator will shall have dated evidence such as reports, data gathered from an historical event, or other dated documentation to show that it participated in a coordinated event assessment of the performance of the UFLS equipment and the effectiveness of the UFLS program per Requirement D.B.11.

D.B.12. Each Planning Coordinator, in whose islanding event assessment (per D.B.11) UFLS program deficiencies are identified, shall participate in and document a coordinated UFLS design assessment of the UFLS program with all the other Planning Coordinators in the Western Interconnection WECC Regional Entity area to consider the identified deficiencies within two years of event actuation. [VRF: Medium][Time Horizon: Operations Assessment]

M.D.B.12. Each Planning Coordinator will shall have dated evidence such as reports, data gathered from an historical event, or other dated documentation to show that it participated in a UFLS design assessment per Requirements D.B.12 and D.B.4 if UFLS program deficiencies are identified in D.B.11.


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THE VSL TABLE WILL BE UPDATED AT THE END OF THE PROJECT, IF NEEDED.

D #SL Moderate VSL High VSL Severe VSL

D.B.1 N/A The Planning Coordinator participated in a joint regional review with the other Planning Coordinators in the WECC Regional Entity area that developed and documented criteria but failed to include the consideration of historical events, to select portions of the BES, including interconnected portions of the BES in adjacent Planning Coordinator areas, that may form islands

OR

The Planning Coordinator participated in a joint regional review with the other Planning Coordinators in the WECC Regional Entity area that developed and documented criteria but failed to include the consideration of system studies, to select portions of the BES, including interconnected

The Planning Coordinator participated in a joint regional review with the other Planning Coordinators in the WECC Regional Entity area that developed and documented criteria but failed to include the consideration of historical events and system studies, to select portions of the BES, including interconnected portions of the BES in adjacent Planning Coordinator areas, that may form islands

The Planning Coordinator failed to participate in a joint regional review with the other Planning Coordinators in the WECC Regional Entity area that developed and documented criteria to select portions of the BES, including interconnected portions of the BES in adjacent Planning Coordinator areas that may form islands


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portions of the BES in adjacent Planning Coordinator areas, that may form islands

D.B.2 N/A N/A The Planning Coordinator identified an island(s) from the regional review to serve as a basis for designing its UFLS program but failed to include one (1) of the parts as specified in Requirement D.B.2, Parts D.B.2.1 or D.B.2.2

The Planning Coordinator identified an island(s) from the regional review to serve as a basis for designing its UFLS program but failed to include all of the parts as specified in Requirement D.B.2, Parts D.B.2.1 or D.B.2.2

OR

The Planning Coordinator failed to identify any island(s) from the regional review to serve as a basis for designing its UFLS program.

D.B.3 N/A The Planning Coordinator adopted a UFLS program, coordinated across the Western Interconnection across the WECC Regional Entity area that included notification of and a schedule for implementation by

The Planning Coordinator adopted a UFLS program, coordinated across the Western Interconnection WECC Regional Entity

The Planning Coordinator adopted a UFLS program, coordinated across the Western Interconnection WECC Regional Entity area that included notification of and a schedule for implementation by UFLS entities within its area, but failed to meet all


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UFLS entities within its area, but failed to meet one (1) of the performance characteristic in Requirement D.B.3, Parts D.B.3.1, D.B.3.2, or D.B.3.3 in simulations of underfrequency conditions

area that included notification of and a schedule for implementation by UFLS entities within its area, but failed to meet two (2) of the performance characteristic in Requirement D.B.3, Parts D.B.3.1, D.B.3.2, or D.B.3.3 in simulations of underfrequency conditions

the performance characteristic in Requirement D.B.3, Parts D.B.3.1, D.B.3.2, and D.B.3.3 in simulations of underfrequency conditions

OR

The Planning Coordinator failed to adopt a UFLS program, coordinated across the Western Interconnection WECC Regional Entity area, including notification of and a schedule for implementation by UFLS entities within its area.

D.B.4 The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western

The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection in the WECC Regional Entity area at least once every five years that determines through dynamic simulation

The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western

The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection in the WECC Regional Entity area at least once every five years that determines through dynamic simulation whether the UFLS


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Interconnection in the WECC Regional Entity area at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2 but the simulation failed to include one (1) of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.

whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2 but the simulation failed to include two (2) of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.

Interconnection in the WECC Regional Entity area at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2 but the simulation failed to include three (3) of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.

program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2 but the simulation failed to include four (4) or more of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.

OR

The Planning Coordinator failed to participate in and document a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection in the WECC Regional Entity area at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2


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D.B.11 The Planning Coordinator, inwhose area a BES islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event and evaluated the parts as specified in

The Planning Coordinator, in whose area a BES islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event and evaluated the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2 within a time greater than 13 months but less than or equal to 14 months of actuation.

The Planning Coordinator, in whose area a BES islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding eventand evaluated the parts as specified in Requirement D.B.11, Parts D.B.11.1 and

The Planning Coordinator, in whose area a BES islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event and evaluated the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2 within a time greater than 15 months of actuation.

OR

The Planning Coordinator, in whose area an islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, failed to participate in and document a coordinated event


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Requirement D.B.11, Parts D.B.11.1 and D.B.11.2 within a time greater than one year but less than or equal to 13 months of actuation.

D.B.11.2 within a time greater than 14 months but less than or equal to 15 months of actuation.

OR

The Planning Coordinator, in whose area an islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the

assessment with all Planning Coordinators whose areas or portion of whose areas were also included in the same island event and evaluate the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2.

OR

The Planning Coordinator, in whose area an islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event within one year of event actuation but failed to evaluate all of the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2.


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same islanding event within one year of event actuation but failed to evaluate one (1) of the parts as specified in Requirement D.B.11, Parts D.B.11.1 or D.B.11.2.

D.B.12 N/A The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, participated in and documented a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across the Western Interconnection in the WECC Regional Entity area to consider the identified deficiencies in greater than two years but less

The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, participated in and documented a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across

The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, participated in and documented a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across the Western Interconnection in the WECC Regional Entity area to consider the identified deficiencies in greater than 26 months of event actuation.

OR


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than or equal to 25 months of event actuation.

the Western Interconnection in the WECC Regional Entity area to consider the identified deficiencies in greater than 25 months but less than or equal to 26 months of event actuation.

The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, failed to participate in and document a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across the Western Interconnection in the WECC Regional Entity area to consider the identified deficiencies


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Page 13 of 14

E. Associated Documents

Version History: To be updated at the end of the project.

Version Date Action Change Tracking0 April 1, 2005 Effective Date New1 May 25, 2010 Completed revision, merging and

updating PRC-006-0, PRC-007-0 and PRC-009-0.

1 November 4, 2010 Adopted by the Board of Trustees

1 May 7, 2012 FERC Order issued approving PRC-006-1 (approval becomes effective July 10, 2012)

1 November 9, 2012 FERC Letter Order issued accepting the modification of the VRF in R5 from (Medium to High) and the modification of the VSL language in R8.

2 November 13, 2014 Adopted by the Board of Trustees Revisions made under Project 2008-02: Undervoltage Load Shedding (UVLS) &Underfrequency Load Shedding (UFLS) to address directive issued in FERC Order No. 763.

Revisions to existingRequirement R9 andR10 and addition ofnew RequirementR15.

3 August 10, 2017 Adopted by the NERC Board of Trustees

Revisions to the Regional Variance for the Quebec Interconnection.

4 TBD Adopted by NERC Board of Trustees In Version 4: 1) Requirements R14 and R15 were added to the list of


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Page 14 of 14

Requirements not applicable to the Western Interconnection (WI), 2) use of “Planning Coordinator” (PC) wasmade specific to PCs providing services within the WI, regardless of where the PC is located, and 3) non-substantive changes were made conforming the document and styles to the newest NERC conventions and templates.


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Standard PRC-006-3—Automatic Underfrequency Load Shedding


A. Introduction: Formatting will be updated.

B. Requirements and Measures: Comments/requests for changes to Section B are outside the scope of this project and will not be addressed. Only the WECC Regional Variance is offered for comment.

C. Compliance: The Compliance section may be updated to NERC’s most recent verbiage after consultation with NERC.

D. Regional Variances: Only the WECC Regional Variance is within the scope of this project.

D.B. Regional Variance for the Western Electricity Coordinating Council

The following Interconnection-wide Regional Variance (RV) shall be applicable in the Western Interconnection and replaces, in their entirety, Requirements R1 through R5,and R111 through R15.

As used in the RV, Planning Coordinator is specific to those Planning Coordinators providing Planning Coordinator service(s) to entities within the Western Interconnection, regardless of where the Planning Coordinator is located.

D.B.1. Each Planning Coordinator shall participate in a joint regional review with the other Planning Coordinators that develops and documents criteria, including consideration of historical events and system studies, to select portions of the Bulk Electric System (BES) that may form islands. [VRF: Medium][Time Horizon: Long-term Planning]

M.D.B.1. Each Planning Coordinator will have evidence such as reports, or other documentation of its criteria, developed as part of the joint regional review with other Planning Coordinators to select portions of the Bulk Electric System that may form islands, including how system studies and historical events were considered, to develop the criteria per Requirement D.B.1.

D.B.2. Each Planning Coordinator shall identify one or more islands from the regional review (per D.B.1) to serve as a basis for designing a Western Interconnection-wide coordinated UFLS program, including: [VRF: Medium][Time Horizon: Long-term Planning]

1 Posting 1 was originally posted stating “…Requirements R1 through R5 and R12 through R15.” (Emphasis added.) The typographical error was discovered and corrected on January 22, 2020. The correction was noted during the January 22, 2020, Standards Briefing and augmented by an email to the Standards Email List prior to the opening of the ballot on January 23, 2020. The correction was addressed by the WECC Standards Committee (WSC) during its March 2020 meeting.


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D.B.2.1. Those islands selected by applying the criteria in Requirement D.B.1, and

D.B.2.2. Any portions of the BES designed to detach from the Western Interconnection (planned islands) as a result of the operation of a relay scheme or Remedial Action Scheme.

M.D.B.2. Each Planning Coordinator will have evidence such as reports, memorandums, emails, or other documentation supporting its identification of an island(s), from the regional review (per D.B.1), as a basis for designing a Western Interconnection-wide coordinated UFLS program meeting the criteria in Requirement D.B.2 Parts D.B.2.1 and D.B.2.2.

D.B.3. Each Planning Coordinator shall adopt a UFLS program, coordinated across the Western Interconnection, including notification of and a schedule for implementation by UFLS entities within its area, that meets the following performance characteristics in simulations of underfrequency conditions resulting from an imbalance scenario, where an imbalance = [(load—actual generation output) / (load)], of up to 25 percent within the identified island(s). [VRF: High][Time Horizon: Long-term Planning]

D.B.3.1. Frequency shall remain above the Underfrequency Performance Characteristic curve in PRC-006-3—Attachment 1, either for 60 seconds or until a steady-state condition between 59.3 Hz and 60.7 Hz is reached, and

D.B.3.2. Frequency shall remain below the Overfrequency Performance Characteristic curve in PRC-006-3—Attachment 1, either for 60 seconds or until a steady-state condition between 59.3 Hz and 60.7 Hz is reached, and

D.B.3.3. Volts per Hz (V/Hz) shall not exceed 1.18 per unit for longer than two seconds cumulatively per simulated event, and shall not exceed 1.10 per unit for longer than 45 seconds cumulatively per simulated event at each generator bus and generator step-up transformer high-side bus associated with each of the following:

D.B.3.3.1. Individual generating units greater than 20 MVA (gross nameplate rating) directly connected to the BES,

D.B.3.3.2. Generating plants/facilities greater than 75 MVA (gross aggregate nameplate rating) directly connected to the BES, and

D.B.3.3.3. Facilities consisting of one or more units connected to the BES at a common bus with total generation above 75 MVA gross nameplate rating.


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M.D.B.3. Each Planning Coordinator will have evidence such as reports, memorandums, emails, program plans, or other documentation of its adoption of a UFLS program, coordinated across the Western Interconnection, including the notification of the UFLS entities of the implementation schedule meeting the criteria in Requirement D.B.3 Parts D.B.3.1 through D.B.3.3.

D.B.4. Each Planning Coordinator shall participate in and document a coordinated UFLS design assessment with the other Planning Coordinators in the Western Interconnection at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2. The simulation shall model each of the following: [VRF: High][Time Horizon: Long-term Planning]

D.B.4.1. Underfrequency trip settings of individual generating units greater than 20 MVA (gross nameplate rating) directly connected to the BES that trip above the Generator Underfrequency Trip Modeling curve in PRC-006-3—Attachment 1;

D.B.4.2. Underfrequency trip settings of generating plants/facilities greater than 75 MVA (gross aggregate nameplate rating) directly connected to the BES that trip above the Generator Underfrequency Trip Modeling curve in PRC-006-3—Attachment 1;

D.B.4.3. Underfrequency trip settings of any facility consisting of one or more units connected to the BES at a common bus with total generation above 75 MVA (gross nameplate rating) that trip above the Generator Underfrequency Trip Modeling curve in PRC-006-3—Attachment 1;

D.B.4.4. Overfrequency trip settings of individual generating units greater than 20 MVA (gross nameplate rating) directly connected to the BES that trip below the Generator Overfrequency Trip Modeling curve in PRC-006-3—Attachment 1;

D.B.4.5. Overfrequency trip settings of generating plants/facilities greater than 75 MVA (gross aggregate nameplate rating) directly connected to the BES that trip below the Generator Overfrequency Trip Modeling curve in PRC-006-3—Attachment 1;

D.B.4.6. Overfrequency trip settings of any facility consisting of one or more units connected to the BES at a common bus with total generation above 75 MVA (gross nameplate rating) that trip below the Generator Overfrequency Trip Modeling curve in PRC-006-3—Attachment 1; and


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D.B.4.7. Any automatic Load restoration that impacts frequency stabilization and operates within the duration of the simulations run for the assessment.

M.D.B.4. Each Planning Coordinator will have dated evidence such as reports, dynamic simulation models and results, or other dated documentation of its participation in a coordinated UFLS design assessment with the other Planning Coordinators in the WECC Regional Entity area that demonstrating that it meets Requirement D.B.4 Parts D.B.4.1 through D.B.4.7.

D.B.5. through D.B.10. Reserved

D.B.11. Each Planning Coordinator, in whose area a BES islanding event results in system frequency excursions below the initializing set points of the UFLS program, shall participate in and document a coordinated event assessment with all affected Planning Coordinators to conduct and document an assessment of the event within one year of event actuation to evaluate: [VRF: Medium][Time Horizon: Operations Assessment]

D.B.11.1. The performance of the UFLS equipment, and

D.B.11.2 The effectiveness of the UFLS program.

M.D.B.11. Each Planning Coordinator will have dated evidence such as reports, data gathered from a historical event, or other dated documentation to show that it participated in a coordinated event assessment of the performance of the UFLS equipment and the effectiveness of the UFLS program per Requirement D.B.11.

D.B.12. Each Planning Coordinator, in whose islanding event assessment (per D.B.11) UFLS program deficiencies are identified, shall participate in and document a coordinated UFLS design assessment of the UFLS program with all other Planning Coordinators in the Western Interconnection to consider the identified deficiencies within two years of event actuation. [VRF: Medium][Time Horizon: Operations Assessment]

M.D.B.12. Each Planning Coordinator will have dated evidence such as reports, data gathered from a historical event, or other dated documentation to show that it participated in a UFLS design assessment per Requirements D.B.12 and D.B.4 if UFLS program deficiencies are identified in D.B.11.


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D.B.1 N/A The Planning Coordinator participated in a joint regional review with the other Planning Coordinators that developed and documented criteria, but failed to include the consideration of historical events, to select portions of the BES, including interconnected portions of the BES in adjacent Planning Coordinator areas, that may form islands;

OR

The Planning Coordinator participated in a joint regional review with the other Planning Coordinators that developed and documented criteria, but failed to include the consideration of system studies to select portions of the BES, including interconnected portions of the BES in adjacent Planning

The Planning Coordinator participated in a joint regional review with the other Planning Coordinators that developed and documented criteria,but failed to include the consideration of historical events and system studies to select portions of the BES, including interconnected portions of the BES in adjacent Planning Coordinator areas, that may form islands.

The Planning Coordinator failed to participate in a joint regional review with the other Planning Coordinators that developed and documented criteria to select portions of the BES, including interconnected portions of the BES in adjacent Planning Coordinator areas that may form islands


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Coordinator areas, that may form islands.

D.B.2 N/A N/A The Planning Coordinator identified an island(s) from the regional review to serve as a basis for designing its UFLS program but failed to include one of the parts as specified in Requirement D.B.2, Parts D.B.2.1 or D.B.2.2.

The Planning Coordinator identified an island(s) from the regional review to serve as a basis for designing its UFLS program but failed to include all the parts as specified in Requirement D.B.2, Parts D.B.2.1 or D.B.2.2;

OR

The Planning Coordinator failed to identify any island(s) from the regional review to serve as a basis for designing its UFLS program.

D.B.3 N/A The Planning Coordinator adopted a UFLS program, coordinated across the Western Interconnection, that included notification of and a schedule for implementation by UFLS entities within its area, but failed to meet one (1) of the performance

The Planning Coordinator adopted a UFLS program, coordinated across the Western Interconnection, that included notification of and a schedule for

The Planning Coordinator adopted a UFLS program, coordinated across the Western Interconnection that included notification of and a schedule for implementation by UFLS entities within its area, but failed to meet all the performance characteristic in Requirement D.B.3,


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characteristic in Requirement D.B.3, Parts D.B.3.1, D.B.3.2, or D.B.3.3 in simulations of underfrequency conditions.

implementation by UFLS entities within its area, but failed to meet two (2) of the performance characteristic in Requirement D.B.3, Parts D.B.3.1, D.B.3.2, or D.B.3.3 in simulations of underfrequency conditions.

Parts D.B.3.1, D.B.3.2, and D.B.3.3 in simulations of underfrequency conditions;

OR

The Planning Coordinator failed to adopt a UFLS program, coordinated across the Western Interconnection, including notification of and a schedule for implementation by UFLS entities within its area.

D.B.4 The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection at least once every five years that

The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in

The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection at least once every five years that

The Planning Coordinator participated in and documented a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2, but


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determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2,but the simulation failed to include one of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.

Requirement D.B.2, but the simulation failed to include two of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.

determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2,but the simulation failed to include three of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.

the simulation failed to include four or more of the items as specified in Requirement D.B.4, Parts D.B.4.1 through D.B.4.7.;

OR

The Planning Coordinator failed to participate in and document a coordinated UFLS assessment with the other Planning Coordinators across the Western Interconnection at least once every five years that determines through dynamic simulation whether the UFLS program design meets the performance characteristics in Requirement D.B.3 for each island identified in Requirement D.B.2.

D.B.11 The Planning Coordinator, in whose area a BES islanding event resulting in system frequency

The Planning Coordinator, in whose area a BES islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented

The Planning Coordinator, in whose area a BES islanding event resulting in system frequency excursions

The Planning Coordinator, in whose area a BES islanding event resultingin system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated


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excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event and evaluated the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2 within a time greater than one year but less than or equal to 13

a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event and evaluated the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2 within a time greater than 13 months but less than or equal to 14 months of actuation.

below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding eventand evaluated the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2 within a time greater than 14 months but less than or equal to 15 months of actuation;

OR

event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event and evaluated the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2 within a time greater than 15 months of actuation;

OR

The Planning Coordinator, in whose area an islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, failed to participate in and document a coordinated event assessment with all Planning Coordinators whose areas or portion of whose areas were also included in the same island event and evaluate the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2.;

OR


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months of actuation.

The Planning Coordinator, in whose area an islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event within one year of event actuation but failed to evaluate one of the parts as specified in Requirement D.B.11,

The Planning Coordinator, in whose area an islanding event resulting in system frequency excursions below the initializing set points of the UFLS program, participated in and documented a coordinated event assessment with all Planning Coordinators whose areas or portions of whose areas were also included in the same islanding event within one year of event actuation but failed to evaluate all the parts as specified in Requirement D.B.11, Parts D.B.11.1 and D.B.11.2.


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Parts D.B.11.1 or D.B.11.2.

D.B.12 N/A The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, participated in and documented a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across the Western Interconnection to consider the identified deficiencies in greater than two years but less than or equal to 25 months of event actuation.

The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, participated in and documented a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across the Western Interconnection to consider the identified deficiencies in greater than 25 months but less than or equal to 26

The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, participated in and documented a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across the WesternInterconnection to consider the identified deficiencies in greater than 26 months of event actuation;

OR

The Planning Coordinator, in which UFLS program deficiencies were identified per Requirement D.B.11, failed to participate in and document a coordinated UFLS design assessment of the coordinated UFLS program with the other Planning Coordinators across


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months of event actuation.

the Western Interconnection to consider the identified deficiencies.


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E. Associated Documents

Version History: To be updated at the end of the project.

Version Date Action Change Tracking0 April 1, 2005 Effective Date New1 May 25, 2010 Completed revision, merging and

updating PRC-006-0, PRC-007-0,and PRC-009-0.

1 November 4, 2010 Adopted by the Board of Trustees.

1 May 7, 2012 FERC Order issued approving PRC-006-1 (approval becomes effective July 10, 2012).

1 November 9, 2012 FERC Letter Order issued accepting the modification of the VRF in R5 from (Medium to High) and the modification of the VSL language in R8.

2 November 13, 2014 Adopted by the Board of Trustees. Revisions made under Project 2008-02: Undervoltage Load Shedding (UVLS) & Underfrequency Load Shedding (UFLS) to address directive issued in FERC Order No. 763.

Revisions to existingRequirement R9 and R10 and addition of new Requirement R15.

3 August 10, 2017 Adopted by the NERC Board of Trustees.

Revisions to the Regional Variance for the Quebec Interconnection.

4 TBD Adopted by NERC Board of Trustees.

In Version 4: 1) Requirements R14 and R15 were added to the list of Requirements not applicable to the Western Interconnection (WI), 2)


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use of “Planning Coordinator” (PC) was made specific to PCs providing services within the WI, regardless of where the PC is located,and 3) non-substantive changes were made conforming the document and styles to the newest NERC conventions and templates.


150

Governance Committee (GC)Report to the WECC Board of Directors

Oral Report

Gary Leidich, GC Chair

March 11, 2020


151

Human Resources and Compensation Committee (HRCC)Report to the WECC Board of Directors

Oral Report

Richard Woodward, HRCC Chair

March 11, 2020


152

Nominating Committee (NC)Report to the WECC Board of Directors

Oral Report

Shelley Longmuir, NC Chair

March 11, 2020


153

Joint Guidance Committee (JGC)Report to the WECC Board of Directors

Branden Sudduth and Robert Follini, JGC Co-Chairs

March 11, 2020

Open Session Board Meeting Book - Technical Committee Reports

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JGC Report to the Board—March 11, 2020

2

Strategic Purpose

The JGC—

1. Ensures alignment of priorities and work plans of the Market Interface Committee (MIC), Operating Committee (OC), and Reliability Assessment Committee (RAC), collectively the Standing Committees, with the strategic intent and priorities approved by the Board of Directors (Board);

2. Identifies reliability assurance issues that require cross-functional or cross-committee strategies to address;

3. Ensures overall communication and collaboration among the Standing Committees; and4. Performs other duties as assigned by the Board or the WECC CEO.


The JGC is asking the Board to approve the revised JGC Charter. The substantive change was addingthe Member Advisory Committee (MAC) representative into the co-chair rotation.

Current Year Goals

∑ Develop the method for revision and drafting of committee work plans, including the display options;

∑ Plan and execute the joint sessions of the Standing Committees and committee leadership training;

∑ Maintain coordination between the Standing Committees, MAC, and WECC leadership; ∑ Execute directives from the Section 4.9 Review pertaining to the Standing Committees; and∑ Develop collaborative action plans to address emerging reliability risks.


1. Charter Revision

The JGC revised its charter to include the MAC representative in the co-chair rotation. This change began after the last co-chair rotation and the addition of the MAC representative as a voting member of the committee.

2. Reliability Workshop

The Reliability Workshop was held on February 20, 2020, with attendees from the three Standing Committees and the MAC. The input received at the workshop will inform theNear-Term Priorities update.


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JGC Report to the Board—March 11, 2020

3

3. Work Plan Revisions

The JGC will begin revising the format of the Standing Committee three-year work plans. The revision is meant to make using and sharing the work plans easier.


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Joint Guidance Committee

March 11, 2020

Branden SudduthJGC Co-Chair


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ß Develop method to revise and draft committee work plans, including the display options

ß Plan and execute joint sessions of Standing Committees and committee leadership training

ß Maintain coordination between Standing Committees, MAC, and WECC leadership

ß Execute directives from the Section 4.9 Review concerning Standing Committees

ß Develop collaborative action plans to address emerging reliability risks

2

2020 Goals


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ß Charter revisions• Added MAC member into co-chair rotation

ß Reliability Workshop to update the Near-Term Priorities• Held February 20 with Standing Committee

meetings• Discussion of NERC RISC Risk Profiles

3

Accomplishments


159

ß Standing Committee Work Plan Revisions• Easier to update• Easier to share and present• Incorporate any direction from Section 4.9 Review

Strategic Planning Process Work Group

ß Joint Standing Committee meeting• Discuss common topics in July

4

Planned Activities


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Contact:Branden Sudduth [email protected]

Robert Follini [email protected]

5


161

Market Interface Committee (MIC)Report to the WECC Board of Directors

Robert Follini, MIC Chair

March 11, 2020


162

MIC Report to the Board—March 11, 2020

2

Strategic Purpose

The MIC advises and makes recommendations to the WECC Board of Directors (Board) on the development of consistent market interface practices and compatible commercial practices in the Western Interconnection. Market interface involves all interactions among market entities and entities responsible for reliable grid operation related to transmission service and physical delivery. Commercial practices include the products and processes involved in trading electricity, and the interaction among market entities that does not affect or require assistance from entities responsible for reliable grid operation.


There are no Board action items for this update.


∑ The MIC last met in person on February 19 for the first meeting during 2020.∑ The next in-person meeting is scheduled for July 14 in Salt Lake City, Utah.∑ The MIC is working on a paper to document a qualitative assessment of the reliability

implications related to the California Independent System Operator’s (CAISO) proposed day-ahead market services (DAMS) it will offer to energy imbalance market (EIM) participants. The paper was discussed at the last MIC meeting and is expected to be finalized in the second quarter of 2020.

1. Three-Year Work Plan

All outstanding 2019 Work Plan items were completed or are on schedule.

The MIC leadership team continues to discuss, with the Joint Guidance Committee (JGC), the work plan topics spanning multiple standing committees. The JGC is helping coordinate these overlapping topics to ensure the most efficient use of committee time and resources.

2. MIC and ISAS Leadership Team

The chair and vice chair of the MIC are appointed to serve one-year leadership terms, with the vice-chair becoming the chair the following year. The term begins in October, and identifying future candidates to fill the vice chair position is an ongoing process. During the last MIC meeting, the committee asked for candidates for vice chair with the intent to fill the position at the next MIC meeting in June.

At the meeting in January, the Interchange Scheduling and Accounting Subcommittee (ISAS)appointed a new vice chair, John Faulkerson from Portland General Electric. Leadership for that subcommittee is in place for the upcoming cycle.


163

MIC Report to the Board—March 11, 2020

3

3. Reliability Workshop

The WECC Standing Committees took part in the Reliability Workshop, at which potential risks to reliability were discussed. The next version of the WECC Near-Term Priorities will include the topics discussed.

4. ISAS Prescheduling Calendar

In the January meeting, ISAS members approved the Prescheduling Calendar for 2021. The calendar establishes how power will be scheduled around NERC holidays. Also, the calendar included a Schedulers Meeting to be held in May. This meeting is an opportunity for staff members to meet with their peers to stay up to date on what happens in the power industry and to receive Continuing Education hours to maintain NERC certification.

5. MIC EIM Risk Paper

The MIC work plan includes an item to assess the potential reliability impacts of expanding the Western EIM to include DAMS. The work group consists of MIC leadership, MIC members, and FERC staff. The work group has made significant progress identifying potential benefits and risks, and most of the report has been completed. The work group presented a detailed presentation of the report to the MIC members and is awaiting initial feedback. The report is scheduled for completion and submission to the Board at its meeting in June.


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MIC Report to the WECC Board of

Directors

March 11, 2020

Layne BrownWECC Staff


165

ß Met in person on February 19, 2020ß Topics covered—

• Western Energy Imbalance Service (WEIS)

• CAISO EIM extended day-ahead market

• Western resource retirements

• EIM Survey Results Report

ß Market Expansion Assessment Work Group• Status of the project

• Assumptions

• Risks and benefits

• Solicited feedback from MIC members

2

MIC Report


166

ß ISAS• Danielle Smith of CAISO, new ISAS chair • John Faulkerson of PGE, new ISAS vice chair• MIC Approved Updated ISAS Charter• Continues to track transition of RC tools

◦ WIT◦ ECC

3

MIC Report


167

2020–2022 MIC Work Plan Update

4

MIC Report


168

Contact:Robert FolliniMIC [email protected]

5


169

Reliability Assessment Committee (RAC)Report to the WECC Board of Directors

Dave Angell, RAC Chair

March 11, 2020


170

RAC Report to the Board—March 11, 2020

2

Highlights

∑ 2019 RAC Study Program completion—page 2.∑ 2030 Anchor Data Set (ADS) Development—page 3.∑ RAC Improvement Plan—page 3.∑ BPS Planning Roles Project—page 4.

Strategic Purpose

The RAC provides coordinated reliability assessments of the Western Interconnection’s bulk electric system (BES) over the planning horizon and gives related advice and recommendations to the WECC CEO and Board of Directors (Board).


The RAC is not requesting Board approval for any items during its meeting on March 11.

Current Year Goals

∑ Facilitate a collaborative project to define planning roles and responsibilities for the bulk power system (BPS) in the Western Interconnection;

∑ Make RAC improvements based on the recommendations in the final version of the proposal;∑ Set the scope, complete, and report on assessments of priority for potential reliability risks to

the BPS;∑ Create the 2030 ADS; and∑ Complete ongoing work within the purview of the RAC.


1. 2019 RAC Study Program Completion

In 2019, the RAC completed work on six priority reliability assessments:

∑ The most-likely Year 10 future;∑ Impacts of significant electrification;∑ Resilience in response to a major natural disaster;∑ Reliability impacts of a disruption to the El Paso Natural Gas pipeline;∑ Reliability impacts of changes to system inertia; and∑ Reliability impacts of WECC’s future scenarios.

The task forces responsible for completing these assessments presented results at the RAC Studies Subcommittee (StS) meeting on January 15–16. The StS approved the final report of the


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3

El Paso Natural Gas Pipeline Disruption assessment on January 16 and the other final reports on February 13. Final reports are posted on the WECC website.

The important findings of some of the assessments—

∑ The Western Interconnection continues to be resilient in the future in most of the assessments modeled in the 2019 Study Program.

∑ A natural gas disruption of the El Paso pipeline results in reliability issues in the desert Southwest when approximately 8,000 MW of generation is unavailable due to low fuel availability. This was a lower threshold of generation loss than the ~23,000 MW identified in the 2018 Gas-Electric study.

∑ The extreme case examined for loss of system inertia modeled the retirement of all remaining coal in 2028 and replaced it with renewable resources. System reliability was maintained in the high-load scenario studied.

∑ Most assessments showed challenges in using all available renewable resources in 2028 and beyond due to either transmission constraints, the inability to dispatch renewable resources, or both.

∑ Many of the assessments showed significant changes in inter-regional flows compared to historic patterns.

2. 2030 ADS Development

WECC and stakeholders began developing the 2030 ADS. WECC posted the power flow component of the 2030 ADS, the “2030 Heavy Summer 1” case, on its website on October 28, 2019. WECC staff and stakeholders are developing the 2030 ADS production cost model (PCM) case, which is scheduled to be complete by June 30.

3. RAC Improvement Plan

In response to a survey of stakeholders concerning the effectiveness of the RAC, the RAC Governing Body created the “RAC Improvement Plan” in 2019, with several proposed changes to the structure and operation of the RAC. The RAC Governing Body revised the proposal afterreviews from the RAC, subcommittees, work groups, and task forces; and after written comments from stakeholders. The RAC approved the changes on February 19 and will be enacting changes over the next several months. Figure 1 shows the revised RAC structure.


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4

Figure 1 New RAC Structure

Among the work to be done is creating charters for the new groups formed through the restructuring. The RAC also will revise its charter and bring it to the Board for consideration at its meeting on June 16.

4. BPS Planning Roles Project

In 2018, the Board of Directors established four Near-Term Priorities for WECC, one of which was to:

Improve coordination by clarifying the roles, responsibilities, and relationships among WECC, the Regional Planning Groups, International Planning Groups, Planning Coordinators, Transmission Planners, and other stakeholders.

To do this, the RAC will create a task force to guide this work in 2020. The RAC is confirming the membership of the task force and setting the project scope with a goal of reporting results to the Board at its September 8 meeting.

Risks to Success

There are no identified risks to success.


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Reliability Assessment Committee

March 11, 2020

Dave AngellRAC Chair


174

Most Likely Year 10 Future

Significant Electrification

Resilience to a Major Natural

Disaster

Disruption to El Paso Natural Gas Pipeline

Impacts of Changes to BES

Inertia

WECC Scenarios

2

2019 RAC Study Program


175

ß The Western Interconnection remains resilient in most assessments in the 2019 Study Program

ß Disrupting ~8,000 MW of generation in Desert Southwest causes reliability issues • Lower threshold than the ~23,000 MW identified in 2018 Gas-Electric study

ß System was reliable in high-load scenario when all coal in 2028 was replaced with renewables

ß Most assessments showed challenges in using all available renewable resources in 2028 and beyond • Transmission constraints

• Lack of to dispatch generation

ß Many assessments showed significant changes in inter-regional flows

3

Overall Observations


176

4

RAC Improvements


177

Contact:Dave [email protected](208) 859-2012

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178

Operating Committee (OC)Report to the WECC Board of Directors

Bert Peters, OC Chair

March 11, 2020


179

OC Report to the Board—March 11, 2020

2

Highlights

∑ WECC and the OC hosted a Reliability Coordinator (RC) Forum webinar on December 11, 2019. ∑ The OC Steering Committee met on January 9.∑ The Operating Committee (OC) met on February 20–21.∑ OC goals.∑ Participation in the Section 4.9 Review Stakeholder Engagement Work Group (SEWG).

Strategic Purpose

The OC advises and makes recommendations to the WECC CEO and Board of Directors (Board) on matters relevant to maintaining reliability through the operation and security of the Western Interconnection.


The OC will request approval of its updated charter.

Current Year Goals

∑ Continue monitoring and identifying possible reliability implications of invertor-basedresources (IBR) and mitigation measures:o The Remedial Action Scheme Reliability Subcommittee (RASRS) evaluates the impacts of

IBR on RAS effectiveness;o The Relay Work Group (RWG) evaluates impacts of IBR on protections systems; ando WECC and applicable stakeholders establish an ad hoc group to assess the integration and

performance of energy storage resources. This ad hoc group will develop a guideline with recommendations and best practices associated with various energy storage resources.

∑ Evaluate the review of the OC’s organizational structure and support assignments and recommendations from the SEWG.

∑ Maximize sharing of operating data, system data, and insights from the events analysis process through presentations and developing lessons learned.

∑ Monitor the operations of the RCs in the Western Interconnection with periodic updates from each RC at the OC meetings.

∑ Monitor market expansion of Southwest Power Pool (SPP) and California Independent System Operator (CAISO) to identify reliability benefits or possible risks.

∑ Track implementation of the April and May 2018 Inverter-Based Resource Event reports.∑ Work with the Market Interface Committee (MIC) to track the completion of the

recommendations from the Mid-C Price Spike Event report.


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OC Report to the Board—March 11, 2020

3


1. WECC RC ForumWECC staff and the OC hosted the final RC Forum on December 11. The plan is to have a standing agenda item for each OC meeting in which the RCs will provide an update and respond to questions from the OC members.

2. February 20–21, 2020, OC meetingThe OC approved the following items at the meeting:

∑ OC Charter; and∑ Generator Operator Work Group Winter Preparation Guideline.

3. OC Three-Year Work PlanThe RWG established a task force to evaluate the impacts of inverter-based resources on protection systems. It plans to have a report ready for the July OC meeting. The Event and Performance Analysis Subcommittee (EPAS) plans to roll out its survey in late February to applicable entities. The survey will address the recommendations from the April and May 2018 IBR event reports. The EPAS will provide an update of the survey responses at the July OCmeeting. RASRS completed its task as part of the OC’s three-year work plan to evaluate the impacts that the changing resource mix has on RAS effectiveness. There were comments received during the posting period for OC approval that the RASRS needs to consider and incorporate into the document. Subsequently, the OC postponed acting on this document until the July meeting.

4. 2020 Section 4.9 ReviewMargaret Albright, Bonneville Power Administration (BPA), and Rich Hydzik, Avista Corp., gave an update on the SEWG and the Strategic Planning Process Workgroup (SPWG). The OC and its subgroups have provided information to the SEWG about their current work, ongoingwork, and work they are planning for the near future.

5. Energy Storage Task ForcesThe OC and WECC staff will work with stakeholder SMEs and form an advisory group to develop a guideline with best practices and lessons learned regarding the integration of EnergyStorage Resources. During the discussion at the February OC meeting, it was determined that the task force should include representatives from the Reliability Assessment Committee (RAC). Staff will work with the RAC chair to determine who those representatives will be. Staff will began organizing the task force in early March.


181

Operating Committee

March 11, 2020

Bert PetersOC Chair


182

ß WECC and the OC hosted an RC Forum webinar on December 11, 2019

ß The OC Steering Committee met on January 9, 2020• Reviewed the OC Goals and Three-Year Work

Plan

ß The OC met on February 20–21, 2020ß Participation in the Section 4.9 Review SEWG

2

Highlights


183

ß Approved updated OC Charter

ß Approved GOWG Winter Preparation Guideline

ß RWG established a task force to evaluate impacts of IBR on protection systems (report ready for July OC meeting)

ß EPAS initiated survey addressing April and May 2018 IBR event recommendations

3

Accomplishments


184

ß Continue monitoring operations of the RCs and potential seams issues

ß Monitor replacement of generation resources in the interconnection and their impact on BPS reliability

ß Support the Section 4.9 Review SEWG

ß Work with staff to create an energy storage task force

ß RASRS IBR and RAS effectiveness paper will be finalized by the July OC meeting

4

Planned Activities


185

Contact:Bert [email protected]

5


186

Assessing Future Risks to Reliability

Summary—Board Technical Session

March 10, 2020


About This Session

The Board Technical Session will showcase the results of the 2019 Reliability Assessment Committee (RAC) Study Program. The assessments covered a wide range of emerging and existing issues—from high electrification to the gas-electric interface—and their implications for future bulk electric system (BES) reliability. The 2019 study program was the first time the RAC developed its program aroundpotential reliability risks. The 2028 Anchor Data Set (ADS) is the starting point for each of the assessments and it was altered to create the many assumptions used to evaluate each of the study topics.

The 2019 priority assessments evaluated potential reliability risks associated with—

∑ The base ADS;∑ Changes to system inertia;∑ High electrification;∑ BES resilience in response to an extreme natural disaster (i.e., Northern California Wildfire);∑ Disruption of the El Paso Natural Gas pipeline; and∑ WECC’s long-term scenarios.

This technical session will give an overview of how the RAC prioritized the assessment topics, how itperformed the assessments, and what the assessments revealed. It will then cover future study work, including how policy drives changes in the system.

Technical Session Participants

Peter Mackin, Studies Subcommittee Chair. Peter joined GridBright as Vice President of Power System Studies in January 2019 and was previously employed at Utility System Efficiencies, Inc. (USE). Peter earned a Master of Science in electrical engineering from Montana State University andhas over 35 years of experience in power system planning and computer application development. He is also a member of the RAC Governing Body.

Enoch Davies, System Stability Planning Department Manager. Enoch has been with WECC for 15 years. He graduated from the University of Utah with a Bachelor of Science in electrical engineering. While at WECC, Enoch earned a Master of Engineering in electrical engineering from the University of Idaho and became a professional engineer in the state of Utah.

Open Session Board Meeting Book - Technical Session Overview

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Technical Session—BPS Planning Roles

2

Byron Woertz, System Adequacy Planning Department Manager. Byron has 40 years of experience in the electric industry having worked in reliability planning, project management, general management, and client relations with Pacific Gas and Electric, the California ISO, and WECC. Byron holds a bachelor’s degree in chemical engineering from U.C. Berkeley, an MBA from Cal State Sacramento, and a project management credential from Project Management International.

Victoria Ravenscroft, Senior Policy and External Affairs Manager. Victoria has been with WECC for seven years, previously managing the Events Analysis and Situation Awareness, and Performance Analysis departments. Before her time at WECC, Victoria worked in the policy field on both Western and international energy issues. Victoria holds a Juris Doctorate from University of Colorado Law School.

Open Session Board Meeting Book - Technical Session Overview

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