116-390 Village Blvd. Princeton, NJ 08540

609.452.8060 | www.nerc.com

Minutes Planning Committee June 9, 2009 | 1 p.m. – 5 p.m. June 10, 2009 | 8 a.m. – noon

Marriott Toronto Airport Toronto, ON M9W 1J5

Planning Committee (PC) Chair Scott M. Helyer presided over this meeting of the NERC PC. The meeting notice, agenda, and list of attendees are attached as Exhibits A, B, and C respectively. Meeting materials and presentations may be found in separate files at http://www.nerc.com/filez/pcmin.html. Administrative Matters

Quorum: Of the PC’s 28 total voting member positions, the PC has six vacancies: merchant electricity generator (1), electricity marketer (1), transmission dependent utility (2), and large end-use customer (2), leaving 22 voting members.1 The meeting quorum (⅔ of 22, or 15, rounded up) was exceeded by the 17 voting members or their proxies who attended. The following proxies attended the meeting for absent PC voting members: Paul McCurley for Jay Farrington (cooperative), John Ciufo for Naren Pattani (federal/provincial), Ian Grant for Tim Ponseti (federal/provincial) and Guy Zito for Phillip Fedora (RRO-NPCC). Israel Melendez (electricity marketer), Mary Healey (small end-use electricity customer), Glenn Ross (small end-use electricity customer), Philip Riley (state government), and Erik Saltmarsh (state government) did not attend the meeting or send a proxy.

Antitrust Compliance Guidelines: Secretary John Seelke reviewed the NERC Antitrust Compliance Guidelines.

Approval of Agenda: Two items in the PC agenda were modified:

1. Item 3.b., a presentation by David Whiteley on the Eastern Interconnection Planning Initiative, will be addressed in a future meeting; and

2. Item 4.d, the PC charter change, was noted as an “approval” item in the main agenda, but listed as “discussion” on the first page. It should have been listed as “approval” on the first page.

1 The RRO sector has two votes for its eight-member sector.

Planning Committee Minutes June 9-10, 2009

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With those changes, on a motion by Perry Stowe, the PC approved the agenda for the June 9 – 10, 2009 PC Meeting. The committee also granted Mr. Helyer the flexibility to reorder agenda items if he felt it appropriate.

Approval of March 17 – 18, 2009 PC Meeting Minutes: There were no corrections to the draft minutes, and on a motion by Ron Mazur, the PC approved the minutes of the March 17 – 18, 2009 PC Meeting. The final minutes appear at: http://www.nerc.com/filez/pcmin.html.

Future meetings: The next Planning Committee meeting will be held on September 15 – 16, 2009, in Dallas, TX. This meeting will include a joint meeting with the Operating Committee (OC) and the Critical Infrastructure Protection Committee (CIPC) (instead of a WebEx) on September 15 from 9 a.m. through noon.

Chairman’s Remarks

Highlights of the May 5, 2009 Member Representatives Committee (MRC) and May 6, 2009 Board of Trustees (BOT) Meeting: Mr. Helyer said that the MRC and board focused on the three-year NERC performance assessment required by Section 215 of the Federal Power Act and associated FERC rules. Vice Chair Tom Burgess led the development of the PC’s comments, which are posted on the PC’s Web site under “related files.”

Information Only

Reliability Fundamentals Working Group (RFWG): Stephen Lee and Peter Brandien, RFWG co-chairs, appeared before the PC, requesting that subgroups provide PC subgroup reports and technical papers for possible use in the Reliability Concepts document. Documents developed by PC subgroups for the Reliability Concepts document would be maintained by the subgroup that developed them. Mr. Helyer directed all PC subgroup chairs to send potential documents as well as ideas for the Reliability Concepts document to John Seelke for collection and forwarding to the RFWG.

Committee Matters

Election of PC Officers for 2009 – 2011: Mr. Helyer opened nominations for PC chair. Paul McCurley nominated Tom Burgess for PC chair. Stuart Nelson’s motion to close nominations for PC chair passed, and Mr. Burgess was elected chair by acclamation. Mr. Helyer then opened nominations for PC vice chair. Ed Pfeiffer nominated Jeff Mitchell for PC vice chair. Ralph Rufrano’s motion to close nominations for PC vice chair passed, and Mr. Mitchell was elected vice chair by acclamation. Mr. Seelke presented Mr. Helyer with a plaque for his distinguished service as chair for the last four years. Mr. Helyer thanked the committee for its support and hard work during his service as chair, and those respects were reciprocated by the members.

PC Committee Elections: As described in the agenda, nominations for vacant positions with terms from 2009 – 2011 for the PC and OC will remain

Planning Committee Minutes June 9-10, 2009

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open through June 12. Elected members will be seated at the September 2009 meeting.

PC Subgroup Structures: The committee expressed the desire to retain the current PC subgroup structures. It was noted by Mark Kuras, Reliability Assessment Subcommittee (RAS) vice chair and Data Coordination Subcommittee (DCS) vice chair, that those two subcommittees are not organized on a committee-defined sector basis. Mr. Seelke will discuss what actions, if any, need to be taken to retain the present subgroup structures defined in subgroup scopes with David Cook, NERC’s general counsel.

PC Charter Change: On a motion by Ralph Rufrano, the committee approved the proposed charter change that addresses the replacement of members between annual elections.

PC Three-Year Work Plan: The committee discussed the proposed three-year work plan. Mr. Helyer questioned why the G&T Reliability Planning Models Task Force (GTRPMTF) was listed as “other group” for activities 82 and 84 for which the Resource Issues Subcommittee (RIS) has the lead. Mr. Seelke explained that those activities were closely related to the development of a reliability assessment methodology assigned to the GTRPMTF. Mr. Helyer directed Mr. Seelke to incorporate any work plan updates for the GTRPMTF which were approved at this meeting as well as work plans for the recently formed DCS and the Loss-of Load Expectation Working Group (LOLEWG). Dan Woodfin pointed out that activity 30 had no group assigned to it. Mr. Seelke corrected the omission and activity 30 was assigned to the Transmission Issues Subcommittee (TIS). Mr. Helyer noted that activities of the recently formed DCS and the LOLEWG should be added when they are available. With that change, Stuart Nelson’s motion to approve the work plan passed. John Ciufo suggested that a column be added to describe the current status of each activity. This column would be updated prior to each meeting by each subgroup, and the work plan and the status of activities would be available for discussion at each future PC meeting. Mr. Seelke agreed to make that change. The approved work plan is posted on the PC’s Web site under “related files.”

Smart Grid: Bob Cummings and Mark Lauby gave a presentation on “smart grid” and recommended the formation of a Smart Grid Task Force. The committee passed a motion by Paul McCurley for the PC Executive Committee to decide how to proceed, including the development of a scope (with a draft scope to be provided to PC members for comment) and coordination with OC and CIPC.

Subgroup Reports

Reliability Assessment Subcommittee (RAS) and its subgroups (Load Forecasting Working Group (LFWG) and Reliability Assessment Guidebook Task Force (RAGTF): Vice Chair Mark Kuras provided a status report on the activities of RAS, the LFWG, and the RAGTF. The committee discussed the

Planning Committee Minutes June 9-10, 2009

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proposed 14 emerging issues presented by RAS and included in the agenda. RAS recommended that the committees approved these issues for risk assessment and inclusion in the 2009 Long-Term Reliability Assessment (LTRA). On a motion by Ralph Rufrano, the committee approved the 14 emerging issues for subsequent risk assessment by the committee, with the requirement that issues that are already being addressed by a committee subgroup not be labeled as “emerging issues” and that the 2009 LTRA material addressing such issues provide summaries only, with references to existing committee subgroup work. On a separate motion by Stuart Nelson, the committee approved the revised scopes of the RAS and the RAGTF.

Reliability Metrics Working Group (RMWG): Chair Herb Schrayshuen gave the working group’s report. On a motion by Perry Stowe, the committee approved the proposed revised RMWG scope. On a motion by Ralph Rufrano, the committee authorized the committee officers to request to the appropriate parties that the term “dashboard” be removed from the NERC Rules of Procedure and replaced with “reliability indicators.” On a motion by Stuart Nelson, the committee approved the metrics development process as described in Chapter 2 of the preliminary report dated May 28, 2009. On a motion by Jean-Marie Gagnon, the committee agreed to a WebEx in late July 2009 to endorse metrics for the 2009 LTRA.2 Prior to the WebEx, the RMWG will seek committee comments on the proposed metrics, and provide the committee with a summary of those comments about two weeks prior to the WebEx so that the committee can make an informed decision.

G&T Reliability Planning Models Task Force (GTRPMTF): Chair Paul Kure presented the task force’s report and recommendation. On a motion by Ralph Rufrano, the committee approved the task forces recommendations contained in the report with a modification that the work plan be altered to end at Task 4, with the task force seeking committee approval of its work through Task 4.

Reliability Impacts on Climate Change Initiatives Task Force (RICCITF): Chair Ben Crisp provided the task force’s status report. There was no discussion.

Integration of Variable Generation Task Force (IVGTF): The status report in the agenda was not discussed.

Resource Issues Subcommittee (RIS): Chair Mary Johannis gave the subcommittee report. The new LOLEWG has only a few (five) members who have submitted nomination forms – interested persons are encouraged to submit nomination forms. Ms. Johannis also gave a presentation on the importance if emerging issue 1(b) regarding ancillary services in areas with predominately bilateral markets.

Transmission Issues Subcommittee (TIS): Chair Eric Mortenson gave the subcommittee’s report. On a motion by Perry Stowe, the committee accepted the Technical Reference Paper: Fault-Induced Delayed Voltage Recovery and approved the TIS draft scope of work provided that items 9 and 14 in the draft scope are changed so that the TIS will advise the PC rather than the program area directly. On a motion by Ron Mazur, the committee accepted the Reactive Supply and Control

2 The agenda and the RMWG’s preliminary report both have nine metrics. Two metrics (ALR3-5 and ALR6-1) are not being proposed for the 2009 LTRA because of lack of data.

Planning Committee Minutes June 9-10, 2009

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whitepaper and approved the submission of the accompanying standard authorization request (SAR).

System Protection & Control Subcommittee (SPCS): John Ciufo provided the subcommittee’s report. A motion by Bill Dowling to approve the SPCS’s assessment report on PRC-003-1, PRC-004-1, and PRC-016-1 with the modifications noted below and the accompanying SAR (without modification) passed. The approved report modifications were:

1. In numbered paragraph three on page six, deleted the word “analyzed” in the last sentence on the page. A redline of the approved sentence is “Transmission Owner or Generation Owners that own Protection Systems shall submit a quarterly report of the total number of events analyzed, the number of Protection System misoperations, and the number of events still under analysis, in a prescribed format (to be part of the revised PRC-003 standard) no later than two calendar months after each quarter.”

2. Delete numbered paragraph four on page seven.

Charles Rogers gave a presentation of the recent FERC Notice of Proposed Rulemaking dated May 21, 2009 regarding PRC-023-1. Comments are due to FERC on July 27, 2009. Bob Cummings will be coordinating the submission of one set of NERC comments.

Data Coordination Subcommittee (DCS): Chair Mary Johannis gave a presentation on whether data needed for planning is better collected through Reliability Standards (the MOD series) or through Section 1600 of NERC’s Rules of Procedure. The committee consensus was that Section 1600 was preferred to standards for planning data collection.

Transmission Availability Data System Task Force (TADSTF): Chair Jean-Marie Gagnon provided a presentation that included a status report on the task force’s activities. On a motion by Mr. Gagnon, the committee approved the NERC draft report that was posted, the format of which will be used to develop individual regional reports. Mr. Helyer thanked Mr. Gagnon for his leadership on the task force, which will become a working group on July 1, 2009 with new officers. The incoming working group chair and vice chair, respectively, will be Mike Pakeltis of CenterPoint Energy and Julian Cox of National Grid.

Demand Response Data Task Force (DRDTF): Mark Lauby gave the task force’s status report. The task force is seeking comments on its preliminary report by June 30, 2009. The task force will use those comments to update the preliminary report and seek subsequent committee approval of the revised report at the September 2009 committee meeting. The committee passed a motion by Stuart Nelson to approve the revised DRDTF scope.

Data Coordination Working Group (DCWG): Chair K. R. (Chuck) Chakravarthi provided an update of its activities to coordinate the revisions to EIA Form 411 with the Energy Information Administration (EIA). In addition, Robert Schnapp of the EIA gave a presentation on the process and present EIA plans regarding all EIA form revisions in 2011 (EIA’s forms require approval every three years). The committee

Planning Committee Minutes June 9-10, 2009

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agreed that it would provide letters in support of EIA recommendations when they are announced; however Mr. Helyer noted that the DCWG should provide draft letters to the committee at the appropriate time for the committee to approve.

Other Items

Mr. Helyer announced a request from Scott Mix of NERC staff from the FERC Order 706 Standards Drafting Team for assistance. The current drafting team has sufficient “cyber security” expertise, but has limited “operational” and “planning” expertise. It is augmenting the drafting team on a somewhat ad-hoc basis, but would like some more-formal participation from both the OC and PC to assist it. Mr. Mix’s request is framed as a “statement of work” and is attached as Exhibit D. PC members interested in participation should contact Tom Burgess, the incoming PC chair (burgesst@firstenergycorp.com) or John Seelke (john.seelke@nerc.net).

On a motion by John Simpson, the meeting was adjourned.

Respectfully submitted,

John Seelke

PC Secretary

John Seelke

From: Rocio Amendola [rocio.amendola@nerc.net]

Sent: Thursday, April 30, 2009 3:33 PM

Subject: Announcement: North American Electric Reliability Council - Standing Committees' Meetings June 9-11, 2009, Toronto, ON.

Follow Up Flag: Follow up

Flag Status: Red

Page 1 of 2

5/4/2009

Meeting Announcement:

Standing Committees’ Meetings

June 9-11, 2009 | Toronto, ON

Marriott Toronto Airport 901 Dixon Road Toronto, ON M9W 1J5 (Map) (416) 674-9400 Please call the hotel directly to book reservations. $169 (CAD)/night group rate | Code: NERC Hotel cut-off date: May 18, 2009 (Rooms booked after this date will be subject to full price, if available) Room block available from: 6/8 – 6/10 (limited guest rooms available) Check in: 3 p.m. – Check out: noon Dress Code: Business Casual

NERC will provide a working lunch for OC and PC meetings on 6/9, and for CIPC meeting on 6/10

at noon, prior to their respective committee meeting. ----------------

Group Name RegistrationLink

Tuesday, June 9

Wednesday, June 10

Thursday, June 11

Operating Committee

OC

Exec Committee:

10 a.m. – noon

OC: 1 – 5 p.m.

8 a.m. – noon

Planning Committee

PC

Exec Committee:

10 a.m. – noon

PC: 1 – 5 p.m.

8 a.m. – noon

REMG 12 – 1 p.m.

Critical Infrastructure Protection Committee

CIPC

1 – 5 p.m.

8 a.m. – noon

Risk Assessment Working Group RAWG 8 a.m. – noon

Rocio E. Amendola Meeting Planner

North American Electric Reliability Corporation

Exhibit A

116-390 Village Blvd. Princeton, NJ 08540

609.452.8060 | www.nerc.com

Agenda Planning Committee Meeting June 9, 2009 | 1 p.m. – 5 p.m. June 10, 2009 | 8 a.m. – noon Marriott Toronto Airport 901 Dixon Road Toronto, ON M9W 1J5 416–674–9400

1. Administrative Matters

*a. Welcome and introductions - Scott Helyer

b. Arrangements – John Seelke

c. Announcement of quorum – John Seelke

*d. NERC Antitrust Compliance Guidelines – John Seelke

e. Approve Agenda – Scott Helyer

*f. Approve March 17-18, 2009 PC meeting minutes – Scott Helyer

*e. Future meetings

2. Chairman’s Remarks

a. Report on May 5-6, 2009 Member Representative Committee and Board meeting

3. Information Only

*a. Operating Committee’s Reliability Fundamentals WG - update and request for chapters in the Reliability Concepts document – Stephen Lee, Peter Brandien

Note: this item will also be addressed in the joint OC/PC/CIPC WebEx on June 2.

*b. Eastern Interconnection Joint Planning Initiative – David Whiteley, Whiteley BPS Planning Ventures LLC (deferred to a future meeting)

4. Committee Matters

*a. Elect officers for 2009-2011- Scott Helyer

*b. Discuss committee elections – John Seelke

*c. Discuss PC subgroup membership structures – Scott Helyer

*d. Approve PC charter change re: replacement of a resigning member – Scott Helyer

*e. Approve PC three-year work plan – John Seelke

Note: this item will be addressed after the subgroup reports are completed.

*f. Discuss Smart Grid issues – should the PC engage? If so, how? Bob Cummings, Mark Lauby

*Background material included

Exhibit B

Planning Committee Meeting Agenda June 9-10, 2009

2

5. Subgroup Reports PC Action

*a. Reliability Assessment Subcommittee Approve revised scope; approve emerging issues list

*1. Load Forecasting Working Group None - status report

*2. Reliability Assessment Guidebook Task Force Approve revised scope

*b. Reliability Metrics Working Group Approve revised scope; approve a PC action to take steps necessary to remove the term “dashboard” from NERC’s Rules of Procedure; approve preliminary metrics report; approve nine metrics for the 2009 LTRA

*c. G&T Reliability Planning Models Task Force Approve final report

*d. Reliability Impacts of Climate Initiative Changes Task Force

None- status report

*e. Integration of Variable Generation Task Force None- status report

*f. Resource Issues Subcommittee None- status report

*g. Transmission Issues Subcommittee Approve TIS revised scope; approve updated FIDVR report that incorporates recommendations from SPCS; approve Reactive Support and Control Whitepaper (TIS-Reactive Support and Control Subteam); approve SAR

*h. System Protection & Control Subcommittee Approve assessment report on three PRC standards; approve associated SAR

*i. Data Coordination Subcommittee Provide feedback on reliability standards vs. Section 1600 as the preferred means for planning data collection

*1. Transmission Availability Data Systems Task Force

Approve draft NERC-wide TADS 2008 Automatic Outages Metrics and Data Report

*2. Demand Response Data Task Force Approve revised scope; provide feedback on preliminary report

*3. Data Coordination Working Group Approve revised scope; approve Form EIA-411 recommendations. Robert Schnapp of EIA will address the PC.

*Background material included

EXHIBIT C

(P) = proxy.

ATTENDEES Planning Committee Meeting

June 9-10, 2009

OFFICERS

Chairman Scott M. Helyer Vice Chairman Thomas C. Burgess Secretary John L. Seelke

MEMBERS

VOTING MEMBERS

Investor-owned utility Richard J. Kafka

Investor-owned utility Perry Stowe

State/municipal utility Stuart Nelson

State/municipal utility Ralph Rufrano

Cooperative utility Jay Farrington

Cooperative utility Paul McCurley (P)

Federal/provincial utility Jean-Marie Gagnon

Federal/provincial utility Ron Mazur

Federal/provincial utility John Ciufo (P)

Federal/Provincial utility Ian Grant (P)

Trans. dependent utility To be named Trans. dependent utility To be named

Merchant elec. generator Kris Zadlo

Merchant elec. generator To be named

Electricity marketer

Electricity marketer To be named

Large end-use customer To be named

Large end-use customer To be named

Small end-use customer

Small end-use customer

ISO/RTO Mark Westendorf

ISO/RTO Peter Wong

RRO/ERCOT Dan Woodfin

RRO/FRCC Ben Crisp

RRO-MRO Dale Burmester

RRO-NPCC Guy Zito (P)

RRO-RFC Jeffrey L. Mitchell

RRO-SERC Ed Pfeiffer

RRO-SPP Bill Dowling

RRO-WECC John L. Simpson

State government

State government

NONVOTING MEMBERS

U.S. Federal David Andrejcak

U.S. Federal To be named

Canadian Federal To be named

Provincial

ATTENDEES — Planning Committee Meeting (cont.) June 9-10, 2009

REGIONAL MANAGERS

NERC STAFF Mark Lauby Jessica Bian Bob Cummings Jim Robinson1

Rhaiza Villafranca PC SUBGROUP CHAIRS

2 Eric Mortensen Chair, Transmission Issues Subcommittee Mary Johannis Chair, Resource Issues Subcommittee Herb Schrayshuen Chair, Reliability Metrics Working Group K. R. Chakravarthi Chair, Data Coordination Working Group Paul Kure Chair, G&T Reliability Planning Models Task Force GUESTS Mark Kuras Vice Chair, Reliability Assessment Subcommittee Stephen Lee Co-Chair, Reliability Fundamentals Working Group Mark Haney AMEC Charles Rogers Consumers Energy Carol Sedewitz National Grid Jeff Mueller PSE&G Ray Kershaw ITC Holdings Vince Ordax FRCC Joe Spencer SERC Charles Yeung SPP Robert Schnapp U.S. Energy Information Administration Rich Lordan EPRI Barry Green Barry Green Consulting David Grubbs City of Garland, TX Eli Turk Canadian Electricity Association Nathan Mitchell APPA Dan Rochester IESO

1 Mr. Robinson is a NERC contractor. 2 Excludes subgroup chairs that are committee members.

Exhibit D

1

Statement of Work

For Industry Subject Matter Experts to Develop Criteria for Bulk Power System Characterization:

A Request from the FERC Order 706 Standards Drafting Team

Background: The FERC Order 706 Standards Drafting Team is in the process of developing a concept paper which will be used to inform industry stakeholders of their intended direction in the re-crafting of the current CIP-002 standard dealing with Critical Asset and Critical Cyber Asset identification. This concept paper will be further developed into a set of Requirements and Measures which will form the core of NERC Reliability Standard CIP-002-31. The concept paper envisions a “decoupled” approach to the identification and classification of what are referred to today as “Critical Assets” and “Critical Cyber Assets”. The approach in the concept paper proposes to perform both an engineering analysis of Bulk Power System assets, as well as a cyber analysis of the associated cyber systems and components. These two analyses will then be combined resulting in a multi-level classification scheme which will be used to apply security controls to the identified cyber assets. The current members of the Drafting Team were selected primarily for their Cyber Security expertise. While some of the members also have a power engineering background, the Drafting Team requests assistance by augmenting the existing Drafting Team with additional power engineering expertise, but with a limited work scope and time commitment, to develop the engineering analysis. The Standards Drafting Team thus is requesting a small (perhaps 5 to 7) group of knowledgeable and respected members of industry that are willing and able to: 1) assist the drafting team in this effort, and 2) lend their names and stature to the developed criteria to assist the remainder of the industry to better understand how the criteria were developed. Scope of Work: Assist the drafting team in developing methodology, criteria, thresholds, etc. which can be applied across North America, resulting in a consistent classification (e.g., High, Medium, Low) for all Bulk Power System assets in the North American Bulk Electric Grid (the “engineering analysis”). Existing concepts, taken from discussions of

1 We anticipate that Version 3 will be the version of standard CIP-002 which contains these provisions.

2

Operationally Significant Circuits, Adequate Level of Reliability, Events Analysis Classification criteria can be used as a starting point for this development.

Work in parallel to the existing drafting team effort to refine the engineering analysis aspects of the concept paper

Develop a set of requirements and measures related to the engineering analysis to be posted as part of a revised CIP-002 standard dealing with the engineering analysis

Respond to comments concerning the engineering analysis and update the part of CIP-002 dealing with the engineering analysis

While the group is welcome to attend and participate at the scheduled Drafting Team meetings, it is not necessary. The group may wish to hold separate meetings, meet by WebEx and conference call, develop the criteria via email, or any combination of the approaches. Further, the selected members of the group are not required expected (but are nonetheless welcome) to participate in any of the discussions pertaining to the “cyber” analysis or the subsequent development of the security controls to be developed starting in 2010. Deliverables: The anticipated deliverables from this group are to:

Assist the existing FERC Order 706 Standards Drafting Team with “concept paper” text relating to the engineering analysis, to be posted for industry review either as part of the planned drafting team concept paper, or soon thereafter

Assist the existing FERC Order 706 Standards Drafting Team with the development of requirements and measures sections (pertaining to the engineering analysis), to be posted with the December version of standard CIP-002

Assist the existing FERC Order 706 Standards Drafting Team in responding to comments received from draft postings (initially the December 2009 posting) and appropriate updates to the requirements and measures, pertaining to the engineering analysis sections, continuing until the standard is approved

Schedule: The Concept Paper is scheduled to be released for industry review in July, 2009. An initial draft of proposed standard CIP-002-3 is scheduled to be released for industry comment in December, 2009.