Meeting Minutes Operating Committee€¦ · Approved the 2016-2020 OC Strategic Plan. 13. Approved the disposition of the Eastern Interconnection unaccounted for inadvertent interchange

Meeting Minutes Operating Committee September 13–14, 2016 Hyatt Regency Phoenix Phoenix, Arizona A regular meeting of the NERC Operating Committee (OC) was held on September 13−14, 2016, in Phoenix, Arizona. The meeting agenda and the attendance list are affixed as Exhibits A and B, respectively; and individual statements and minority opinions as Exhibits C and D, respectively. The meeting presentations are posted in a separate file at OC Presentations. OC Chair Jim Case convened the meeting at 1:00 p.m. MST. Secretary Larry Kezele announced that a quorum was present, read the Notice of Public Meeting and referred the committee to the NERC Antitrust Compliance Guidelines. Chair’s Opening Remarks Chair Case welcomed the OC to Phoenix and noted that the OC has another full agenda of material to consider and debate. He drew the OC’s attention to the following agenda items:

1. Reliability Guideline: Situational Awareness for the System Operator

2. Reliability Guideline: Inadvertent Interchange

3. Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards

4. Reliability Guideline: Frequency Response Sharing

Meeting Highlights 1. Appointed Jerry Rust (Regional Entity Sector), Tom Irvine

(Federal/Provincial Sector), Doug Hils (IOU Sector), Keith Carman (Cooperative Sector) and Leonard Kula (ISO/RTO Sector) to serve on the OC’s Nominating Subcommittee. Appointed Jerry Rust to chair the Nominating Subcommittee.

2. Approved the election of Mr. Brandien to the OC Executive Committee. The members of the Executive Committee are Chair Jim Case, Vice Chair Linke, Doug Peterchuck (State/Municipal Sector), Gerry Beckerle (IOU Sector), Keith Carman (Cooperative Sector) and Peter Brandien (ISO/RTO Sector).

3. Accepted the Operating Reliability Subcommittee motion that the Reliability Coordinators continue to develop and maintain Reliability Plans. The ORS recommends that the current OC “Guideline for Approving Regional and Reliability Coordinator Reliability Plans” be updated by the ORS to reflect the ORS expectations around Reliability Plans, such as removing RROs from the process, retaining ORS endorsement of Reliability Plan changes, removing the periodic review requirement, and including criteria for what plan changes need to be brought to the ORS. The ORS agrees that reliability plans could include multiple RCs, if preferred.

4. Tabled ORS Motion 2 (see Presentation 5.b) pending further discussion internally within NERC.

5. Approved the revised Event Analysis Process for a 45-day public posting.

6. Approved archiving the Reliability Guideline: System Operator Communications – Current Industry Practices.

7. Approved posting the draft Reliability Guideline: Situational Awareness for the System Operator for a 45-day public comment period.

8. Approved posting the draft Reliability Guideline: Inadvertent Interchange for a 45-day public comment period.

9. Approved posting the draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards for a 45-day public comment period.

10. Approved Version 4 of the Time Monitoring Reference Document. 11. Approved conducting a multiyear, voluntary generator survey, based

on no more than several real-time events per year, in the Eastern, Western and Quebec Interconnections, to measure individual generator performance.

12. Approved the 2016-2020 OC Strategic Plan. 13. Approved the disposition of the Eastern Interconnection unaccounted

for inadvertent interchange as proposed by the Resources Subcommittee.

http://www.nerc.com/comm/OC/AgendasHighlightsMinutes/September_2016_OC_Meeting_Presentations.pdf

http://www.nerc.com/comm/OC/AgendasHighlightsMinutes/September_2016_OC_Meeting_Presentations.pdf

5. Version 4 of the Time Monitoring Reference Document Consent Agenda By consent, the committee approved the minutes of the June 7–8, 2016 meeting and the appointment of Paul Kure (RF) and Maggie Peacock (WECC) as chair and vice chair, respectively, of the Performance Analysis Subcommittee. Chair’s Remarks Chair Case thanked Pierre Paquet (Hydro Quebec TransEnergie), Todd Lucas (Southern Company), Richard Kinas (Orlando Utilities Commission) and David Souder (PJM) for their support of and membership on the OC. He welcomed Doug Hils (Duke Energy), Sidney Jackson (Rochester Public Utilities (Minnesota), Stephane Desbiens (Hydro Quebec TransEnergie), Allen Schriver (NextEra Energy – Florida Power and Light), Connie Davis (DPU – Cleveland Public Power) and Peter Brandien (ISO New England) to the committee. Chair Case also provided a brief overview of the August 10, 2016 Member Representatives Committee meeting and the August 11, 2016 Board of Trustees meeting. The OC’s report to the Board of Trustees was included in the agenda packet for this meeting.

OC Action Item Review Vice Chair Linke reviewed the list of action items and reported that several have been completed or are on the agenda for this meeting. The revised action item list is attached as Exhibit E. Nominating Subcommittee Jerry Rust, chair of the Nominating Subcommittee, reported that the 2016 annual election resulted in two vacancies on the subcommittee. Mr. Rust recommended the appointment of Keith Carman and Doug Hils to the Nominating Subcommittee. By unanimous consent, Chair Case appointed Keith Carman and Doug Hils to serve on the OC’s Nominating Subcommittee. The members of the Nominating Subcommittee are Jerry Rust (Regional Entity Sector), Tom Irvine (Federal/Provincial Sector), Doug Hils (IOU Sector), Keith Carman (Cooperative Sector) and Leonard Kula (ISO/RTO Sector). Chair Case appointed Jerry Rust to chair the Nominating Subcommittee. OC Executive Committee Election Jerry Rust, chair of the Nominating Subcommittee, reported that the 2016 annual election resulted in a vacancy on the OC’s Executive Committee. Furthermore, he reported that the Nominating Subcommittee recommends the election of Peter Brandien to the Executive Committee and moved to approve the election of Mr. Brandien to the OC Executive Committee. The committee approved the motion. The members of the Executive Committee are Chair Jim Case, Vice Chair Lloyd Linke, Doug Peterchuck (State/Municipal Sector), Gerry Beckerle (IOU Sector), Keith Carman (Cooperative Sector) and Peter Brandien (ISO/RTO Sector).

Operating Committee Minutes – September 13-14, 2016 2

Operating Reliability Subcommittee (ORS) Status Report ORS Chair Eric Senkowicz summarized the subcommittee’s status report, which was included in the OC agenda packet (Presentation 5.b). At its September 2016 meeting the ORS approved the NPCC Regional Reliability Plan and the Reliability Plan for the SERC Southeastern Subregion Reliability Coordinator. He noted that at the June 2016 OC meeting Chair Case tasked the ORS with conducting a further review the need for reliability plans in light of the new requirements stated in IRO-014 and to report its recommendation to the OC at its September 2016 meeting. Chair Senkowicz reported that the subcommittee had an extensive discussion related to the continued development of reliability plans and passed two motions which support their continued development. Motion 1: The ORS recommends to the OC that the Reliability Coordinators continue to develop and maintain Reliability Plans. The ORS recommends that the current NERC “Guideline for Approving Regional and Reliability Coordinator Reliability Plans” be updated by the ORS to reflect the ORS expectations around Reliability Plans, such as removing RROs from the process, retaining ORS endorsement of Reliability Plan changes, removing the periodic review requirement, and including criteria for what plan changes need to be brought to the ORS. The ORS agrees that reliability plans could include multiple RCs, if preferred. Motion 2: The ORS recommends to the OC that the OC recommend to NERC that the NERC Certification process be enhanced to ensure adequate transparency (including OC endorsement of significant changes) and oversight of significant changes that could impact reliability on external systems. The formal mechanism for neighboring entities to raise issues of significant impacts due to changes in RC/BA footprints or other substantive changes in RC/BA areas will be removed with the new NERC IRO standards. The standard requirement being retired enabled the OC to withhold approval if neighboring system impacts were not properly addressed. The ORS recommends that the NERC certification process evaluate broader impacts of such changes to the BES earlier in the process to allow for time for entities to coordinate and resolve potential issues that may require special operating procedures be developed or facilities upgraded. NERC could delay or withhold certification if credible neighboring entity concerns are not addressed. Jerry Rust moved to accept ORS Motion 1 as recorded above. The committee approved the motion. Following discussion of ORS Motion 2, Jerry Rust moved to table ORS Motion 2 pending further discussion internally within NERC. The OC expects a report back from NERC Staff at its December 2016 meeting. Chair Senkowicz also updated the OC on the following ORS activities:

1. Gas/Electric Coordination Guideline – A guideline outline was presented and a request was made by Chair Case to forward the guideline outline to the OC for further input.

2. The ORS to review the continued need for its Data Exchange Working Group and the Telecommunications Working Group.

3. Continued review of the Electric System Restoration Reference Document.

4. Implementation of the Net Actual Interchange and Net Scheduled Interchange tool.


Resources Subcommittee (RS) Status Report RS Chair Troy Blalock provided an overview of subcommittee’s status report. He noted that RS vice chair John Tolo has decided to step down and that The RS and NERC Staff conducted two Standard BAL-003-1 Implementation Workshops. Event Analysis Subcommittee (EAS) Status Report EAS Chair Hassan Hamdar summarized the subcommittee’s status report. The EAS conducted a Winter Weather Readiness Webinar on September 1, 2016. Chair Hamdar also reviewed proposed changes to the Event Analysis Process and reviewed a Justification for the Event Category 1g and 3a Changes for ERCOT. Jerry Rust moved to approve the revised Event Analysis Process for a 45-day public posting. The committee approved the motion. Personnel Subcommittee (PS) Status Report Lauri Jones, chair of the PS, noted that the subcommittee has started a major project to draft Version 4.4 of the Continuing Education Program Manual. She also stated that the PS recommends archiving the Reliability Guideline: System Operator Communications – Current Industry Practices since COM-002-4 (Operating Personnel Communications Protocols) now addresses the principles addressed in the guideline. Jeff Harrison moved to approve archiving the Reliability Guideline: System Operator Communications – Current Industry Practices. The committee approved the motion. Reliability Assessment Subcommittee (RAS) Status Report Amir Najafzadeh, NERC Staff, provided an overview of RAS activities (Presentation 5.f). The RAS is developing the 2016/17 Winter Reliability Assessment and the 2016 Long Term Reliability Assessment. The RAS is also working with the Essential Reliability Services Working Group to develop Measure 6 (Ramping). Short-Term Special Assessment: Single Points of Disruption on Natural Gas Infrastructure Amir Najafzadeh, NERC Staff, addressed the scope and drivers of this short-term special assessment (Presentation 5.f.ii). Drivers for the study include: 1) generation impacted by fuel supply interruption such as pipeline segment outages, 2) Aliso Canyon outage affecting generation capacity and 3) and the Argonne National Laboratory analysis of critical or significant underground natural gas storage, pipelines and liquefied natural gas. Mr. Najafzadeh outlined the four phases of development of this special assessment. The final phase, Phase 4, will provide actionable recommendations. The special assessment is expected to be completed by late spring 2017. The OC raised concerns about the release of Critical Energy Infrastructure Information (CEII). Mr. Najafzadeh sought OC representatives to serve on the Assessment’s Technical Advisory Committee. Todd Lucas, Doug Hils, Jerry Rust, Steve Ashbaker, Robert Blohm and Peter Brandien volunteered to serve on the Technical Advisory Committee.


July 2016 WECC Update on Aliso Canyon Steve Ashbaker, WECC Staff, provided an update on Aliso Canyon (Presentation 5.f.i). In October 2015 a gas leak was detected in well SS-25 at the Aliso Canyon natural gas storage facility. Aliso Canyon is a critical component of the natural gas system in Southern California and directly serves 17 generating plants (9,800 MW of capacity). Since drawdown of the facility, no gas has been used from Aliso Canyon to date. During the summer of 2016 the BES was operated reliably despite numerous fires and line outages in Southern California. Mr. Ashbaker also briefed the committee on expected 2016/17 winter operations without Aliso Canyon and the status of well testing at Aliso Canyon. Essential Reliability Services Working Group (ERSWG) and Distributed Energy Resources Task Force (DERTF) Todd Lucas, co-chair of the ERSWG, reported that the ERSWG deliverables for 2016 include: 1) assisting in the development of approved measures and 2) developing a whitepaper on the methodology for Essential Reliability Services measures sufficiency guidelines (Presentation 5.g). The Sufficiency Guideline whitepaper is expected to be presented to the OC for acceptance at its December 2016 meeting. Rich Hydzik, chair of the DERTF, reported that the DERTF deliverables for 2016 include: 1) identifying and assessing distributed energy resource impacts and 2) developing a DERTF final report by year end. The DERTF final report is expected to be presented to the OC for acceptance at its December 2016 meeting. Chair Hydzik also provided an update on the August 2-3, 2016 DER Workshop. There were over 175 registrants. Four panels discussed 1) aligning the definition, 2) observability and controls, 3) load and generation modeling, and 4) voltage and frequency performance. ERSWG Measure 6 - Ramping Troy Blalock provided an overview of the Resources Subcommittee’s efforts to develop ERS Measure 6 (Ramping) using CPS1 exceedance data (Presentation 5.g.ii). ERSWG Measure 7 – Reactive Capability on the System Paul Kure, chair of the Performance Analysis Subcommittee, provided a summary of the PAS’s efforts to develop ERS Measure 7 (Reactive Capability on the System) using a proof-of-concept data collection methodology (Presentation 5.g.iii). SOL and IROL Monitoring Tool Leads to Unnecessary Manual Load Shedding Stephane Desbiens and Maxime Nadeau (Hydro Quebec TransEnergie) briefed the OC on an event that occurred on the Hydro Quebec TransEnergie system when a shunt reactor at La Verendrye substation, which is connected to a high voltage transmission line, was de-energized for voltage control (Presentation 7.c). When the shunt reactor was de-energized, a fault occurred in the shunt reactor breaker, which resulted in tripping of the high voltage transmission line. This sequence of events resulted in two IROL exceedances. HQT system operators implemented emergency operation control actions to restore the interface flows below the IROLs. These control actions included: 1) starting 400 MW of gas turbines, 2) curtailment of 1,000 MW of interchange transactions, 3) importing 1,000 MW of emergency energy and 4) reducing voltage in the south region.


Within 23 minutes, the interface flow was under the IROL, but still above the SOL. However, the system operator still thought he was exceeding the IROL, since he was confused from his interpretation of the operator displays. Therefore, 28 minutes after the event the system operator initiated 1,990 MW of manual load shed to restore the system within the 30 minute IROL criteria. The high voltage transmission line was restored to service 37 after the event and all load was restored 35 minutes after it was shed. HQT experienced a similar event on December 4, 2014. HQT analyzed all the EMS monitoring tools to determine if SOLs and IROLs are clearly differentiated and determined that the SOL/IROL exceedance time display was misleading and the system operators were managing emergency situations with a static control actions list in which the operator had to identify by himself the control actions to apply. As a result of this analysis, HQT upgraded the timer display to make it more ergonomic and make sure the IROLs and SOLs are more clearly differentiated and created a new tool for system operators that would help them quickly select the required control actions according to the type of exceedance. Mr. Nadeau provided an overview of the revised system operator displays and the new limit exceedance management tool. In summary, lessons learned from this event include:

1. Adequately differentiate the SOL and IROL limits in the EMS displays and the control room timer display for SOL/IROL exceedances.

2. Improve system operator simulation type training to add more stressful conditions in order to enhance their situational awareness and response during emergency operations.

3. Review on a regular basis the system operators understanding of the SOL and IROL limits and the emergency operation control actions permitted.

Reliability Issues Steering Committee (RISC) Vice Chair Lloyd Linke reported that, as requested, the OC provided input on the Risk Profiles. The RISC will conduct a webinar on September 21, 2016 to further discuss the Risk Profiles and develop recommendations. Reliability Guideline: Situational Awareness for the System Operator Lauri Jones, chair of a task team to develop a reliability guideline that addresses system operator situational awareness, provided an overview of the draft Reliability Guideline: Situational Awareness for the System Operator. The OC discussed whether the guideline should be retitled to become a reference document. Ralph Rufrano moved to approve posting the draft Reliability Guideline: Situational Awareness for the System Operator for a 45-day public comment period. The committee approved the motion. Final Status Update on the BAL-001-2 Field Trial Glenn Stephens, chair of the BAL-001-2 Standard Drafting Team, reported that the BAL-001-2 field trial started in the Eastern Interconnection in July 2005 (Presentation 7.d). This was followed by ERCOT in December 2009, Quebec in September 2010 and by balancing authorities in the Western Interconnection


in March 2010. Mr. Stephens discussed the shortfalls of CPS2 metric that led to the development of the Balancing Authority ACE Limit (BAAL) metric. Some of the conclusions drawn from the field trial were 1) BAAL requirement focuses on frequency control for the Interconnection, the correlation between CPS1 and BAAL always drives corrective actions to support frequency, and 3) the standard drafting team has not been able to establish any direct correlation between BAAL and any adverse impacts on frequency error. Adjourn and Reconvene The committee adjourned at 5:15 p.m. MST and reconvened the following morning at 8:00 a.m. MST. Joint Planning and Operating Committee Meeting James Merlo, NERC Staff, reported that NERC in planning on conducting a joint session of the Planning and Operating Committees during their December 2016 meetings. Current plans are to hold this joint session from 10:00 a.m. to 12:00 p.m. on December 13, 2016. The joint session will allow the committees to discuss agenda items of mutual interest to both committees, for example the ERSWG report, the DERTF report, and the schedule for the State of Reliability report. The schedule change will mean that the OC’s Executive Committee will have to be rescheduled to occur earlier in the morning on December 13. Draft Reliability Guideline: Inadvertent Interchange Jerry Rust provided an overview of the draft Reliability Guideline: Inadvertent Interchange (Presentation 7.e). Gerry Beckerle moved to approve posting the draft Reliability Guideline: Inadvertent Interchange for a 45-day public comment period. The committee approved the motion. Draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards Jerry Rust provided an overview of the draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards (Presentation 7.h). Gerry Beckerle moved to approve posting the draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards for a 45-day public comment period. The committee approved the motion. Generator Response to Frequency Change Due to Variable Generation Mike Hull, Salt River Project, provided an overview of a two unit frequency event that occurred on March 3, 2016 (Presentation 7.q). On March 3 two 500 kV transmission lines in the Northwest tripped, which resulted in the initiation of a remedial action scheme that dropped 1,500 MW of generation. System frequency dropped to 59.79 Hz. Unit 2 was off-line at the Navajo Generating Station (NGS) for major overhaul. Units 1 and 3 were at approximately half-load and tripped offline while attempting to respond to the frequency drop. Units 1 and 3 attempted to boost frequency by rapidly increasing output. Unit 1 responded by increasing output by 42 MW in 12.3 seconds and Unit 2 increased its output by 35 MW in 12.4 seconds. Both units tripped offline due to low boiler furnace pressure. Slide 11 of Mr. Hull’s presentation identifies several corrective actions that Salt River Project is pursuing as a result of this event. Proposal to Create a Disbursed Generation Resources Task Force (DGRTF) Darrel Richardson, NERC Staff, contrasted the expectations of the DERTF and the proposed DGRTF and provided a definition of DGR and DER (Presentation 7.f). The DGRTF would be considered an advisory group


to the OC and would not become active until the work of the DERTF is completed. The primary task of the DGRTF would be to ensure that the standards development process accounts for DGRs. Mr. Richardson expects to bring a proposed DGRTF scope to the OC at its December 2016 meeting for approval. The OC suggested that OC identify any gaps between the ongoing work of the ERSWG and the DERTF before moving forward with the creation of the proposed DGRTF. The OC suggested that it would identify any gaps between the ongoing work of the ERSWG and the DERTF before moving forward with the creation of the proposed DGRTF. Generating Availability Data System (GADS) Changes to Wind Data Request Instructions Donna Pratt, NERC Staff, reported that the Planning Committee approved minor revisions to the Wind Data Reporting Instructions (Presentation 7.g), which avoids having to issue a revised Section 1600 data request. Ms. Pratt provided a summary of the proposed revisions. Draft Time Monitoring Reference Document Troy Blalock, chair of the RS, provided an overview of proposed revisions to the Time Monitoring Reference Document (Presentation 7.j). He also provided a brief summary of the comments received during the 45-day public posting of the reference document. The comment period ended on September 5, 2016. One issue that was raised by commenters was the use of the “schedule offset methodology.” The team that reviewed the comments decided to keep this methodology in the reference document. He reported that the Resources Subcommittee recommends OC approval of the revised reference document. Following a brief discussion, which focused primarily on the use of the schedule offset methodology, Jerry Rust moved to approve Version 4 of the Time Monitoring Reference Document. Robert Blohm presented a methodology developed with Howard Illian as to why the schedule offset method of manual time error corrections contravenes BAAL and CPS (Presentation 7.j.i). During his presentation, Mr. Blohm stated that schedule offset removes the BAAL from where it belongs and imposes a BAAL where it doesn’t belong. In response, some OC members noted that the reliability standards are very clear on the calculation of BAAL and CPS. Use of schedule offset or frequency offset is immaterial. In addition, it was noted that some balancing authorities use the schedule offset methodology. Following this discussion, Peter Brandien moved to call the question. The committee approved the motion. The committee then approved the original motion. Draft Reliability Guideline: Frequency Response Sharing Troy Blalock, chair of the RS, reported the RS approved a draft Reliability Guideline: Frequency Response Sharing for the OC’s consideration, however, NERC Staff has expressed some concern with the document. Therefore, he asked that the OC provide the RS with comments on the guideline. The OC suggested that this reliability guideline be dovetailed with the existing Operating Reserve Management guideline. Chair Case asked Chair Blalock to provide a status report at the OC’s December 2016 meeting. Frequency Response Initiative – Proposed Survey Troy Blalock, chair of the RS, noted that frequency response is essential to the reliability of the Interconnections, is essential for system restoration, and is essential for compliance with the BAL reliability


standards (Presentation 7.l). For these reasons, the RS developed the Reliability Guideline: Primary Frequency Control. Chair Blalock suggested that every BES Generator, with some exceptions (e.g. nuclear), should have a working governor and be set in accordance with the Frequency Response Guideline for system reliability and system restoration and provide primary frequency response between Pmin and Pmax. The next step in the frequency response initiative is to conduct periodic generator surveys based on selected events over multiple years to measure generator individual performance in the Western, Eastern and Quebec Interconnections. The survey would be voluntary. Webinars would by conducted in advance of the surveys to advise generator operators of the survey requirements. Chair Blalock reported that the North American Generator Forum supports this activity. Jerry Rust moved to approve conducting a multiyear, voluntary generator survey, based on no more than several real-time events per year, in the Eastern, Western and Quebec Interconnections, to measure individual generator performance. James Merlo, NERC Staff, reported that the OC needs to communicate to industry what is expected to be accomplished by this survey. The committee approved the motion. Operating Reliability Subcommittee’s Recommendation Related to the Disposition of the Data Exchange Working Group (DEWG) Eric Senkowicz, chair of the ORS, reported that at its September 2016 meeting the ORS discussed the disposition of the DEWG. The ORS asked the DEWG to review its scope document and to report to the subcommittee its activities that need to continue going forward. The ORS and the DEWG will continue their review of the DEWG scope at the November 2016 ORS meeting. Chair Senkowicz expects to be able to present a recommendation to the OC at its December 2016 meeting. OC Strategic Plan and Charter Revisions Jerry Rust provided a summary of proposed revisions to the OC’s strategic plan and charter (Presentation 7.n). Task team members were Todd Lucas, Keith Carman, Vice Chair Linke and Jerry Rust. Topics addressed in Mr. Rust’s presentation included: 1) OC Charter, 2) OC Strategic Plan and Goals, 3) Tracking change form documentation and 4) Use of the terms endorse, accept and approve. With regard to the use of terms, the task team recommends no action on the establishment of definitions for the use of certain terms. The task team noted that in many instances it would be unwieldly to prepare a tracked change document for presentation to the OC. Therefore, the decision as to whether to develop a tracked change document will, for the most part, be left to the document development team. Mr. Rust reviewed suggested revisions to the OC strategic plan and goals. The team recommended revisions to Goals 1 through 4 and the addition of Goal 5. Kevin Conway moved to approve the 2016-2020 OC Strategic Plan. The committee approved the motion. Mr. Rust reviewed proposed revisions to the OC Charter and suggested that the OC further consider the proposed revisions at its December 2016 meeting. Patricia Poli asked if NERC could review the current definition of the State Government sector. James Merlo, NERC Staff, will review the definition with NERC Legal.


Functional Model Advisory Group (FMAG) Jerry Rust reported that the recent posting of the Functional Model for industry comment resulted in the receipt of a few hundred pages of comments. In addition, the Standards Committee extended the comment period to 45 days from the original 30 days. Therefore, the FMAG does not have a final product to present to the OC for acceptance. The FMAG may request time on the OC’s December 2016 agenda to provide an update. Eastern Interconnection Unaccounted Inadvertent Interchange Troy Blalock, chair of the RS, noted that on May 11, 2016 the RS sent a letter to all Eastern Interconnection balancing authorities to seek volunteers to participate in an unaccounted for Inadvertent Interchange true-up (Presentation 7.o). All balancing authorities have responded to this request to participate. Chair Blalock presented the completed survey results to the OC and noted that the RS recommends to the OC the approval of the balance changes for the balancing authority’s inadvertent interchange balance reflected in his presentation. David Zwergel moved that the OC approves the disposition of the Eastern Interconnection unaccounted for inadvertent interchange as proposed by the Resources Subcommittee. The committee approved the motion. Midyear Review of 2016 OC and Subcommittee Work Vice Chair Linke provided a status report of the OC’s accomplishments and those of its subcommittees to date in addressing the many items identified in the work plan. Chair Case reminded the committee’s Executive Committee and subcommittee leadership that in the near future he will be scheduling a meeting to develop next year’s work plan. NERC Data Repository for Generator Survey Data Troy Blalock, chair of the RS, reported that he has provided NERC all of the generator data collected during the Eastern Interconnection Frequency Response Initiative. It is expected that NERC will post the data to website where it can be used by members of the Resources Subcommittee and other NERC Staff to perform data analysis. Lessons Learned During Recent Flooding in Entergy Service Area Chair Case provided an overview of the recent flooding in the New Orleans and Baton Rouge portions of the Entergy service area (Presentation 7.b). There was over 24 inches of accumulated rainfall in some areas. Approximately 85,000 homes were flooded and many rivers crested at new records. Entergy files an Emergency Plan with the Louisiana Public Service Commission each year and one section of that plan is specifically dedicated to a Flood Plan. Entergy conducts drills for catastrophic events, including flooding. Chair Case provided an overview of flood damages to Entergy’s facilities and equipment and presented examples of how Entergy protected its facilities (e.g. stackable Tiger Dams were used in some locations to protect essential substations from floodwaters). Finally, Chair Case highlighted the challenges Entergy experienced during the restoration phase and reflected on lessons learned.


2016 Frequency Response Annual Analysis (FRAA) Ryan Quint, NERC Staff, summarized the 2016 Frequency Response Annual Analysis (Presentation 7.p). Interconnection Frequency Response Obligation (IFRO) is the minimum frequency response necessary for the Interconnection to avoid triggering first stage UFLS for defined benchmark events. The calculated IFROs in the 2016 FRAA closely match the 2015 FRAA. Mr. Quint reviewed the Recommendations presented in this year’s analysis, perhaps the most significant of which is that the IFRO values for Operating Year 2017 should remain the same as those calculated in the 2015 FRAA for use during Operating Year 2016. Mr. Quint reported that the Resources Subcommittee approved the 2016 FRAA on August 25, 2016 and that he is seeking OC acceptance of the 2016 FRAA. The Secretary reported that the OC lost quorum to approve a motion. Chair Case directed that the Mr. Quint’s presentation be sent to the OC along with the 2016 FRAA and that the Secretary conduct an email ballot. Next Meeting The next meeting of the Operating Committee will be on December 13–14, 2016 in Atlanta, Georgia. Adjourn There being no further business before the Operating Committee, Chair Case adjourned the meeting on Wednesday, September 14, 2016 at 12:01 p.m. MST.

Larry Kezele Larry Kezele Secretary


Agenda Operating Committee September 13, 2016 | 1:00–5:00 p.m. (MST) September 14, 2016 | 8:00 a.m.–Noon (MST)

Hyatt Regency Phoenix 122 North Second Street Phoenix, Arizona

Introductions and Chair’s Opening Remarks

NERC Antitrust Compliance Guidelines and Public Announcement

Agenda

1. Administrative ‐ Secretary

a. Arrangements

i. Safety Briefing and Identification of Exits (Hyatt Regency Staff)

b. Announcement of Quorum

c. Background Information

i. 30TOC Membership (2016‐2018)*

ii. OC Roster*

iii. 30T32T32T30TUUOC Organizational Chart UU30T30T32T32T

iv. 30T32T32T30TOC Charter30T30T32T32T

v. Parliamentary Procedures*

vi. 30T32T32T30TParticipant Conduct Policy30T30T32T32T

d. Future Meetings

0T0T0T0T2016 Meeting Dates 0T0T0T0TTime 0T0T0T0TLocation 0T0T0T0THotel

0T0T0T0TDecember 13, 2016 0T0T0T0TDecember 14, 2016

0T0T0T0T1:00 to 5:00 p.m. (Eastern) 0T0T0T0T8:00 a.m. to Noon (Eastern)

0T0T0T0TAtlanta, GA 0T0TRitz‐Carlton Buckhead

0T0T0T0T2017 Meeting Dates 0T0T0T0TTime 0T0T0T0TLocation 0T0T0T0THotel

0T0T0T0TMarch 7, 2017 0T0T0T0TMarch 8, 2017

0T0T0T0T1:00 to 5:00 p.m. 0T0T0T0T8:00 a.m. to Noon

0T0TTBD 0T0TTBD

0T0T0T0TJune 6, 2017 0T0T0T0TJune 7, 201


0T0TTBD 0T0T0T0TTBD

0T0T0T0TSeptember 12, 2017 0T0T0T0TSeptember 13, 2017


0T0TTBD 0T0T0T0TTBD

Exhibit A

Agenda – Operating Committee Meeting – September 13‐14, 2016 2

2. Consent Agenda – Chair Case

a. June 7–8, 2016 Draft OC Meeting Minutes*

Action: Approve Objective: Approve consent agenda.

Background: None

Presentation: No

Duration: 5 minutes Background Items: June 7‐8, 2016 Draft OC Meeting Minutes

b. Appointment of Performance Analysis Subcommittee Officers

Action: Approve Objective: The PAS recommends the appointment of Paul Kure, RF, as PAS chair and Maggie Peacock, WECC, as PAS vice chair.

Background: In accordance with the PAS scope, the subcommittee chair and vice chair are appointed by the chairs of the Planning and Operating Committees for one two‐year term.

Presentation: No

Duration: 5 minutes Background Items: None

3. Chair’s Remarks

a. Welcome to new OC Members

i. Doug Hils – Duke Energy (Investor Owned Utility Sector)

ii. Sidney Jackson – Rochester Public Utilities (Minnesota) (State/Municipal Utility Sector)

iii. Stephane Desbiens – Hydro Quebec TransEnergie (Federal/Provincial Sector)

iv. Allen Schriver – NextEra Energy – Florida Power and Light (Merchant Electricity Generator Sector)

v. Connie Davis – DPU – Cleveland Public Power (Small End Use Electricity Customer Sector)

vi. Peter Brandien – ISO New England (ISO/RTO Sector)

b. Report on August 10, 2016 Member Representatives Committee Meeting and the August 11, 2016 Board of Trustees Meeting*

4. OC Action Items Review* – Vice Chair Linke

Action: None Objective: Review and discuss open action items from prior OC meetings.

OC Strategic Plan Goal: This is an administrative item.

Background: The OC Action Item list will be reviewed near the beginning of each OC meeting, with the intent to reach prompt resolution.

Presentation: No

Duration: 10 minutes Background Items: Revised OC Action Item List

Notes:

5. Subcommittee Status Reports

a. Nominating Subcommittee – Chair Jerry Rust


Action: Approve Objective: Elect OC members to serve on its Nominating Subcommittee

OC Strategic Plan Guiding Principle: This is an administrative item.

Action Item Number: None

Background: The OC’s 2016 Annual Election created a vacancy on its Nominating Subcommittee. The OC will conduct an election to fill the vacancy.

Presentation: No


Notes:

i. OC Executive Committee Election – Jerry Rust

Action: Approve Objective: Elect OC members to serve on its Executive Committee



Background: The OC’s 2016 Annual Election created a vacancy on its Executive Committee. The OC will conduct an election to fill the vacancy.

Presentation: No


Notes:

b. Operating Reliability Subcommittee* – Chair Eric Senkowicz

c. Resources Subcommittee* – Chair Troy Blalock

d. Event Analysis Subcommittee* – Chair Hassan Hamdar

i. Revised ERO Event Analysis Process* – Chair Hassan Hamdar

Action: Approve Objective: Review, discuss and approve, for a 45‐day posting, revisions to the ERO Event Analysis Process.

OC Strategic Plan Guiding Principle: Continually strive for excellence in event analysis (EA), emerging cause code trending, and information sharing.


Background: The EAS drafted a revised EAP redline and a justification letter for the suggested changes to Category 1g and 3a of the ERO Event Analysis Process. The justification letter provides the explanation for the changes to the ERO Event Analysis Process categories 1g and 3a requested by the ERCOT region. The EAS has reviewed the need and justification and agrees that the change is appropriate. The EAS is seeking approval from the Operating Committee to post a revised ERO Event Analysis Process that incorporates the changes described below for a 45‐day industry comment period. If there is no negative industry response to the change, the EAS will move forward and request approval of the revised ERO Event Analysis Process at the December 2016 Operating Committee meeting with an effective date on January 1, 2017.

Presentation: Yes

Duration: 10 minutes Background Items: 1. Revised ERO Event Analysis Process (red‐line)


2. Justification for Event Category 1g and 3a Changes for ERCOT

Notes:

e. Personnel Subcommittee* – Chair Lauri Jones

f. Reliability Assessment Subcommittee – Phil Fedora, NPCC

i. July 2016 WECC Update on Aliso Canyon – Steve Ashbaker, WECC

ii. Short‐Term Special Assessment: Single Points of Disruption on Natural Gas Infrastructure – Amir Najafzadeh, Senior Engineer, Reliability Assessment

Action: None Objective: Review and discuss a draft scope for this Short‐Term Special Assessment and form an advisory group to support development of the assessment.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.


Background: The North American Bulk Power System is undergoing an unprecedented change in the composition of the resource mix. An over reliance on one fuel type can have severe effects as a result of one single point of disruption. This assessment will underscore the potential reliability impacts associated with single points of failure, such as pipeline outages, an over reliance on LNG that could be hampered by transport concerns, or another similar storage outage such as Aliso Canyon.

Presentation: Yes

Duration: 15 minutes Background Items: Draft Short‐Term Special Assessment Scope

Notes:

g. Essential Reliability Services Working Group – Co‐Chair Todd Lucas

i. Distributed Energy Resources Task Force – Chair Rich Hydzik

ii. ERSWG Measure 6 (Ramping) – Troy Blalock, RS Chair

iii. ERSWG Measure 7 (Reactive Capability on the System) – Paul Kure, PAS Chair

6. Reliability Issues Steering Committee Status Report – Vice Chair Linke

7. Committee Matters

a. Reliability Guideline: Situational Awareness for the System Operator* – Lauri Jones

Action: Approve Objective: Review, discuss and approve for a 45‐day public comment period a draft Reliability Guideline: Situational Awareness for the System Operator.


Action Item Number: 1509‐01


Background: At its September 2015 meeting, the OC assigned a task team, chaired by Lauri Jones, with representatives from the ORS and the EAS to develop a strawman guidance document. Ms. Jones will provide an overview of the team’s final draft Reliability Guideline: Situational Awareness for the System Operator for the OC’s consideration to post for a 45‐day public comment period.

Presentation: Yes

Duration: 15 minutes Background Items: Draft Reliability Guideline: Situational Awareness for the System Operator

Notes:

b. Lessons Learned During Recent Flooding in Entergy Service Area – Chair Case

Action: None Objective: Chair Case will provide an overview of Entergy’s efforts to minimize BES damage due to a 500 year rain event in its service territory.



Background: Chair Case will illustrate actions taken by Entergy to minimize BES damage to its system during an unpreceded extreme weather event called a “monsoon depression.” This a rare flooding event that was caused by an unusual meteorological phenomenon. According to the NOAA Weather Prediction Center: “The best description of this system is that of a sheared inland tropical depression or a monsoon depression.”

Presentation: Yes


Notes:

c. SOL and IROL Monitoring Tool Leads to Unnecessary Manual Load Shedding – Maxime Nadeau, Hydro Quebec TransEnergie

Action: None Objective: Mr. Nadeau will provide an overview an HQT event impacting the SCADA system and the actions and lessons learned from the event.



Background: Mr. Nadeau will be sharing his observations of a SCADA failure event and the trouble shooting and lessons learned from the event.

Presentation: Yes


Notes:

d. Final Status Update on the BAL‐001‐2 Field Trial – Glenn Stephens, Chair of the BAL‐001‐2 Standard Drafting Team

Action: None Objective: Review and discuss the final status update on the BAL‐001‐2 Field Trial.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERCReliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other


operational compliance clarifications.


Background: The BARC SDT provided an overview of the field trial at the June 2014 and September 2014 OC meetings and developed a Preliminary Report. The NERC Board of Trustees approved BAL‐001‐2 and the standard was filed at FERC on April 4, 2014. The BARC SDT expects the field trial to remain in place until its FERC approved compliance enforcement date, after which a final status update on the BAL‐001‐2 field trail will be provided to the OC. BAL‐001‐2 became effective on July 1, 2016. Presentation: Yes


Notes:

e. Draft Reliability Guideline: Inadvertent Interchange* – Jerry Rust

Action: Approve Objective: Review, discuss and approve for posting for a 45‐day comment period.



Background: At its December 2015 meeting, the OC approved the development of an Inadvertent Interchange Reliability Guideline by the Project 2010‐14.2.1 Standard Drafting Team and the Resources Subcommittee. Presentation: No

Duration: 15 minutes Background Items: Draft Reliability Guideline: Inadvertent Interchange

Notes:

f. Proposal to Create a Disbursed Generation Resources Task Force – Darrel Richardson, Senior Standards Developer

Action: None Objective: Review and discuss the creation of a Disbursed Generation Resources Task Force, which would report to the OC.

OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues.


Background: The OC will be briefed on a proposal to create a Disbursed Generation Resources Task Force. It is expected that a scope for the DRGTF would be presented to the OC for approval at its December 2016 meeting.

Presentation: Yes


Notes:

g. Generating Availability Data System (GADS) Changes to Wind Data Request Instructions – Donna Pratt, Senior Performance Analysis Advisor

Action: None Objective: Review and discuss GADS changes to the Wind Data Request Instructions.


OC Strategic Plan Guiding Principle: Maintain the structure, processes and relationships with other NERC standing committees, and foster relationships with other forums, to achieve high levels of reliability for the BES.


Background: While this is an approval item on the Planning Committee’s agenda, this topic is being presented to the OC for information purposes only.

Presentation: Yes


Notes:

h. Draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards* – Jerry Rust




Background: At its December 2015 meeting, the OC approved the development of a Reporting ACE Reliability Guideline by the Project 2010‐14.2.1 Standard Drafting Team and the Resources Subcommittee.

Presentation: No

Duration: 15 minutes Background Items: Draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards

Notes:

i. Western Electricity Coordinating Council – Mike Moon, Vice President Compliance

Action: None Objective: Mr. Moon will update the OC on WECC activities related to 1) event analysis and compliance, 2) risk assessment, and 3) collaboration between the Regional Entity and the entities.


Action Item Number:

Background: None

Presentation: Yes


Notes:

j. Draft Time Monitoring Reference Document – Troy Blalock, RS Chair

Action: Approve Objective: Review, discuss, and approve the draft Time Monitoring Reference Document.




Background: At its June 2016 meeting, the OC approved a motion “that Version 4 of the Time Monitoring Reference Document be posted to the OC for comments through June 30, 2016.” The Resources Subcommittee and Operating Reliability Subcommittee will work with the BAL‐004 drafting team to incorporate comments. On July 21, 2016 the draft Time Monitoring Reference Document was posted for a 45‐day public comment period. The comment period ended on September 5. RS developed the draft Time Monitoring Reference Document, which specifies how manual Time Error Corrections (MTEC) are to be implemented if needed to resolve issues and outlines procedural responsibilities assigned to the time monitor.

Presentation: Yes

Duration: 20 minutes Background Items: 32T32TDraft Time Monitoring Reference Document32T32T

Notes:

k. Draft Reliability Guideline: Frequency Response Sharing* – Troy Blalock, RS Chair




Background: The Resources Subcommittee developed and approved, by email ballot, the draft Reliability Guideline: Frequency Response Sharing. The RS is requesting OC approval to post the draft Reliabiltiy Guideline for a 45‐day comment period.

Presentation: Yes

Duration: 15 minutes Background Items: Draft Reliability Guideline: Frequency Response Sharing

Notes:

l. Frequency Response Initiative – Proposed Survey – Troy Blalock, RS Chair

Action: Approve Objective: Review, discuss and approve a Generator Data Survey.



Background: At the July 2016 RS meeting, RS Chair Blalock presented an update on the Frequency Response Initiative. The update included a presentation given by Chair Blalock at the NAGF Primary Frequency Response Workshop and the Standard BAL‐003‐1 Implementation Workshop. The RS discussed a proposed survey to collect generator data during selected frequency events to allow for analysis of Interconnection frequency response modeling. Following this discussion, the RS approved a motion that it recommend to the OC, and potentially to the Planning Committee, the approval of a generator data survey to be coordinated by Interconnection over multiple years to assess generator primary frequency response. Further this effort will involve outreach to the generators, with coordination with NAGF, to support the existing generation fleet to provide the capability of providing primary frequency response.


In addition to OC approval of the proposed survey, NERC Executive Management will also need to review and approve the proposed survey.

Presentation: Yes


Notes:

m. Operating Reliability Subcommittee’s Recommendation Related to the Disposition of the Data Exchange Working Group – Eric Senkowicz, ORS Chair

Action: Approve Objective: Review, discuss and approve the ORS’s recommendation related to the disposition of the Data Exchange Working Group and the Telecommunications Working Group.



Background: At its February 2016 meeting, ORS Chair Senkowicz tasked reliability coordinator subcommittee members with contacting their Data Exchange Working Group members to determine the continued need for the DEWG and the TWG. If the DEWG should remain in existence, should it continue to report to the ORS or should it report to another organization such as the Eastern Interconnection Data Sharing Network?

Presentation: No


Notes:

n. OC Strategic Plan and Charter Revisions* – Jerry Rust

Action: Approve Objective: Review, discuss and approve proposed revisions to the OC Strategic Plan and the OC Charter.



Background: At its March 2016 meeting, Chair Case tasked Jerry Rust (chair), Keith Carman, Lloyd Linke and Todd Lucas with reviewing and updating the OC strategic plan and Charter.

Presentation: No

Duration: 15 minutes Background Items: 1. Draft 2015‐2019 OC Strategic Plan (Red‐line) 2. Draft 2016‐2020 OC Strategic Plan (Clean) 3. Revised Draft of the OC Charter (Red‐line)

Notes:

o. Eastern Interconnection Unaccounted Inadvertent Interchange – Troy Blalock, RS Chair

Action: Approve Objective: Review, discuss and approve a RS recommendation that addresses the accumulated EI Unaccounted for Inadvertent Interchange.




Background: The unaccounted for Inadvertent Interchange true‐up is the result of Inadvertent Interchange in the Eastern Interconnection accumulating to a non‐zero amount. This happened due to a number of errors that have occurred over many years and, at this point, can no longer be traced back to their origins. The unaccounted for Inadvertent balances are the following:

On‐Peak: 45,410 MWHrs

Off ‐Peak: ‐100,647 MWHrs

Total: ‐55,239 MWHrs In order to achieve a Interconnection net zero Inadvertent balance, the Resources Subcommittee asked BAs if they would like to participate in an Inadvertent true‐up. The true‐up would consist of allocating Inadvertent amongst the participating BAs in the opposite direction of the above balances. The unaccounted for Inadvertent balances will be spread among the interested BAs based on their individual biases. Each BA had the opportunity to participate in the true‐up to a MWh amount specified in the BA participation survey. Allocations will be made on individual biases and not exceeding the values listed in the survey per the BA. At its July 2016 meeting, the RS approved the following motion for consideration by the OC: RS recommends to the OC approval of the below balance changes for the BA’s inadvertent balance indicated below.

Presentation: Yes Duration: 10 minutes Background Items: None

Notes:

p. 2016 Frequency Response Annual Analysis* – Ryan Quint, Senior Engineer, System Analysis


Action: Endorse Objective: Review, discuss and endorse the 2016 Frequency Response Annual Analysis.



Background: NERC staff drafted the 2016 Frequency Response Annual Analysis. The report was reviewed by the Resources Subcommittee and approved by electronic ballot on August 25, 2016.

Presentation: Yes

Duration: 15 minutes Background Item: 2016 Frequency Response Annual Analysis

Notes:

q. Generator Response to Frequency Change Due to Variable Generation – Mike Hull, Salt River Project

Action: None Objective: Mr. Hull will provide a presentation on the Lessons Learned from a two unit trip at Navajo Generating Station (NGS) during a frequency excursion.



Background: Mr. Hull will provide a presentation on the Lessons Learned from a two unit trip (Units 1 and 3) that occurred on March 3, 2016 at NGS during a frequency excursion.

Presentation: Yes


Notes:

r. Midyear Review of 2016 OC and Subcommittee Work Plans* – Vice Chair Linke

Action: None Objective: To review and discuss the 2016 OC and Subcommittee work plans developed at the February 2016 OC Leadership meeting.



Background: At its March 2016 meeting, Chair Case reviewed the 2016 Operating Committee Work Plan and the Work Plans of its Subcommittees. At this meeting the OC and its subcommittees will provide a status report of efforts to address the topics noted in the work plans.

Presentation: Yes

Duration: 10 minutes Background Item: Revised 2016 OC and Subcommittee Work Plans

Notes:

s. NERC Data Repository for Generator Survey Data – Troy Blalock, RS Chair

Action: None Objective: To review and discuss a NERC proposal to develop a data repository for warehousing generator survey data.


OC Strategic Plan Guiding Principle: Maintain the structure, processes and relationships with other NERC standing committees, and foster relationships with other forums, to achieve high levels of reliability for the BES.


Background: At its June 2014 meeting, the OC was briefed on the Eastern Interconnection Frequency Response Initiative. The minutes of that meeting state: “RS Vice Chair Troy Blalock provided an overview of the Eastern Interconnection Frequency Initiative data collection effort. RS members from the Eastern Interconnection (EI) are working with balancing authorities on a voluntary basis to support an effort to improve EI frequency response. The current initiative focuses on the existing generator fleet with respect to the completeness and accuracy of the data provided in the 2010 NERC generator survey and improving their frequency response capabilities. The Initiative is being rolled out in two phases: Phase 1 addresses generators greater than 400 MW and Phase 2 addresses generators that are greater than 100 MW but less than or equal to 400 MW. Phase 1 generators were asked to complete the generator survey by June 1, 2014, while Phase 2 generators are asked to complete the survey by November 1, 2014. Critical issues that need to be addressed to ensure successful completion of the Initiative include 1) the establishment of a data repository by NERC for the generator survey data, 2) assuring high BA and GOP participation and 3) reviewing the generator data.”

Presentation: Yes

Duration: 5 minutes Background Item: None

Notes:

t. Functional Model Advisory Group – Jerry Rust

Action: None Objective: To review and discuss proposed revisions to the Functional Model and provide the Functional Model Advisory Group with feedback.



Background: The FMAG is in the process of revising the Functional Model (FM) and its companion document, the Functional Model Technical Document (FMTD). Proposed changes to the FM are currently posted for public comment through September 7. At the June 2016 OC meeting the FMAG reported that the public posting would be for 30 days, however, the Standards Committee extended the posting period to 45‐days. Therefore, the FMAG will not have final documents to present to the OC at this meeting. Thus, final approval will be postponed to the December 2016 OC meeting.

Presentation: No

Duration: 5 minutes Background Item: None

Notes: 0T0T0T0T*Background materials included.

EXHIBIT B

ATTENDEES Operating Committee Meeting

September 13-14, 2016 OFFICERS

Chair Jim Case Vice Chair Lloyd Linke Secretary and Staff Coordinator Larry Kezele

MEMBERS

VOTING MEMBERS Cooperative Jeff Harrison Keith Carman Electricity Marketer Federal/Provincial Michelle Rheault

Stuart Goza Tom Irvine Stephane Desbiens

IOU Doug Hils Gerry Beckerle ISO/RTO Peter Brandien David Zwergel Leonard Kula Large End-use Tom Siegrist Customer Kevin Conway State/Municipal Doug Peterchuck Sidney Jackson Transmission Mark Ennis Dependent Utility

Merchant Generator Allen Schriver JT Thompson State Government Patricia Poli Bill Chambliss

VOTING MEMBERS (cont’d) Small End-use Robert Blohm Customer TRE Alan Bern FRCC Hamdar Hassan (proxy

for Ron Donahey) MRO Dick Pursley NPCC Ralph Rufrano RF John Idzior SERC Sammy Roberts WECC Jerry Rust SPP Jim Useldinger NON-VOTING MEMBER U.S. Federal Alfred Corbett

ATTENDEES — Operating Committee Meeting (cont’d) September 13–14, 2016

SUBCOMMITTEE LEADERSHIP EAS Vice Chair Rich Hydzik ORS Chair Eric Senkowicz PS Chair Lauri Jones RS Chair Troy Blalock

REGIONAL ENTITY MRO Dan Schoenecker NPCC Andrey Oks RF Paul Kure Texas RE Bob Collins WECC Steve Ashbaker

NERC STAFF Sandy Shiflett James Merlo Jule Tate Stephen Crutchfield Rich Bauer Ben McMillan Amir Najafzadeh Ryan Quint Darrel Richardson Donna Pratt

GUESTS Mark Holman PJM Francis Esselman Proven Compliance Solutions Elaine Kwarcinski Alabama Power Maxime Nadeau Hydro Quebec TransEnergie Don Badley NWPP Darrel Yohnk ITC Glenn Stephens Santee Cooper Jessica Tucker Kansas City Power and Light Colleen Campbell ACES Todd Lucas Southern Company Rodney O’Bryant Southern Company Bruce Larsen We Energies Mike Hull Salt River Project

2

Exhibit C

Individual Statements Operating Committee Meeting September 13–14, 2016

There were none.

Exhibit D

Minority Opinions Operating Committee Meeting September 13–14, 2016

No minority opinions were offered for the record.

Exhibit E

NERC Operating Committee Action Items

Dated: September 26, 2016

December 2012 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1212-21 BARC SDT (Jerry Rust and Gerry Beckerle)

BARC Final Report of Field Trial – lay out the analysis – lessons learned from field trial structure and testing

Dec 2013

Sept 2016

Need information from Drafting Team Facilitator. BARC SDT provided an overview of the field trial at the June 2014 and September 2014 meetings. SDT developed a Preliminary Report. Board approved BAL-001-2 and it was filed at FERC on 4/2/14. The OC expects the field trial to remain in place until its FERC approved compliance enforcement date, after which a final field trail report will be developed and presented to the OC. December 15 – BAL-001-2 becomes effective on July 1, 2016. SDT provided an overview of the Field Trial. September 16 – SDT presented its final status update on the BAL-001-2 Field Trial.

Final Report Due

following the

Enforcement Date.

In Progress

Action due

in September

2016 to review report

Complete

NERC Operating Committee Action Items Page 1 of 9


June 2014 Meeting Action Items



1406-08 Resources Subcommittee

Establishment of a data repository by NERC for the generator survey data

September Meeting

NERC staff to address. December 2014 – No progress to date. March 2015 – No progress to date. June 2015 – No progress to date. September 2015 – The Balancing Authority Submittal Site is being tested by the Resource Subcommittee. December 2015 – Generator survey data to be stored in a Modelling Database. March 2016 – This topic held over to the June 2016 OC meeting. June 2016 – This topic was not addressed at the June 2016 OC meeting. September 2016 – Troy Blalock reported that he had provided NERC staff will all the EI Frequency Response Initiative survey data.

In Progress

James to provide status at

March OC Meeting.

James to provide

status at the June OC meeting.

Troy Blalock to provide

status at the September

OC meeting.

Complete

September 2015 Meeting Action Items




1509-01 Lauri Jones with input from the ORS and EAS

Develop a strawman guidance document for discussion at the December 2015 OC meeting.

December 2015

September 2015 – Appointed a task group of Lauri Jones and representatives of the ORS and the EAS to develop a strawman guidance document for discussion at the December 2015 OC meeting reference the definition and understanding of SA in relation to system operators. December 2015 – The OC further discussed the scope of this project during its review of the PS status report and as part of the OC Work Plan Brainstorming Exercise. March 2016 – Lauri Jones provided a brief status report. She expects to complete the Reliability Guideline: Situation Awareness for discussion at the June 2016 OC meeting. June 2016 – Lauri Jones provided an overview of the draft reliability guideline and requested OC comments. Chair Case tasked the OC with providing comments by July 31. Ms. Jones anticipates presenting a revised guideline to the OC at its September 2016 meeting for approval to post for a 45-day public comment period. September 2016 – OC approved the Reliability Guideline: Situational Awareness for the System Operator for a 45-day public comment period.

In Progress

Short update in the March meeting

2016

Place on June OC meeting agenda

Place on the September OC meeting

agenda

Place on the December

OC meeting agenda, if team has reviewed

and responded

to the comments.


December 2015 Meeting Action Items



1512-04 Project 2010-14.2.1 STD and RS

Develop an Inadvertent Interchange Guideline.

September 2016

BAL-006 requirement goes away and what is the replacement to gather data? Jerry Rust update in March meeting. March 2016 – RS reviewing a draft Reliability Guideline: Inadvertent Interchange. June 2016 – RS and the Standard Drafting Team are reviewing a draft of the proposed guideline. September 2016 – OC approved the Reliability Guideline: Inadvertent Interchange for a 45-day comment period.

In Progress


OC meeting agenda, if team has reviewed

and responded

to the comments.

1512-05 Project 2010-14.2.1 STD and RS

Develop a Reporting ACE Guideline. September 2016

March 2016 – RS reviewing a draft Reliability Guideline: Calculating and Using Reporting ACE in Tie Line Bias Control Program. June 2016 – RS and the Standard Drafting Team are reviewing a draft of the proposed guideline. September 2016 – The OC approved Reliability Guideline: Integrating Reporting ACE with the

In Progress


OC meeting


NERC Reliability Standards for a 45-day comment period.

agenda, if team has reviewed

and responded

to the comments.

March 2016 Meeting Action Items



1603-01 Chair Case OC to meeting by conference call in May to discuss RISC going forward OC to provide review of the 14 identified risks with comments and relative priorities.

June 2016 Vice Chair to meet with RISC on April 22 to further define this activity. June 2016 – Vice Chair Linke reported that RISC continues to review and priorities identified risks. RISC is planning its annual Reliability Summit. September 2016 – Vice Chair Linke reported that the OC provided comments on the Risk Profiles.

In Progress

Complete

1603-02 Chair Case Entergy to provide an overview of its operation with two primary transmission control centers

December 2016

In Progress

1603-03 Jerry Rust and Lacey Ourso

Develop proposed revisions to the Functional Model for OC acceptance

June 2016

September 2016

December

2016

March 2016 – The Functional Model Working Group is working on a project to identify required revisions to the Functional Model. The expectation is that the FMAG will present a FM revision to the OC at its June 2016 meeting. June 2016 – OC reviewed and discussed a red-line version of the FM. It is anticipated that the OC will be asked to endorse the final

In Progress


version of the FM and the FMTD at its September 2016 meeting. September 2016 – Jerry Rust reported that the Standards Committee extended the comment period by 15 days. Several hundred pages of comments were received. The FMAG may be able to present its final product at the December 2016 meeting.

1603-05 Keith Carman, Lloyd Linke, Jerry Rust (chair) and

Todd Lucas

Review and update the OC strategic plan June 2016 – Review proposed revisions to the PC Charter.

September 2016

June 2016 – Chair Case tasked the Strategic Plan Task Team with reviewing proposed revisions to the PC Charter and reporting back to OC at its September 2016 meeting. September 2016 – OC approved a revised strategic plan.

In Progress

Complete

1603-06 Resources Subcommittee

Modify the Reliability Guideline: Primary Frequency Control to address asynchronous resources

December 2016

In Progress

1603-07 Resources Subcommittee and Operating

Reliability Subcommittee

Develop a reliability guideline or procedure to implement when BAL-004 is retired.

December 2016

June 2016 – OC reviewed Version 4 of the Time Monitoring Reference Document. Chair Case tasked the OC with providing comments by June 30, 2016. September 2016 – OC approved Version 4 of the Time Monitoring Reference Document, which was posted for a 45-day public comment period.

In Progress

Complete

1603-10 Larry Kezele Post the Operating Manual dated June 15, 2004 to the OC website.

June 2016 Mid-August 2016 – The 2004 version of the Operating Manual was posted to the OC Operating Manual website.

In Progress Complete

1603-11 RS 2015 LTRA OC Task Team Recommendation 2 ( Real Power Energy Storage Application) – The RS to draft a reliability guideline addressing this recommendation

December 2016

In Progress


1603-12 ORS 2015 LTRA Task Team Recommendation 3 (Managing Increased Dependency on Natural Gas – Fuel Planning, BA/TOP – Gas Pipeline Coordination, Contingency Planning).

December 2016

September 2016 – ORS presented a draft guideline outline to the OC and requested feedback.

In Progress

1603-13 DERTF 2015 LTRA Task Team Recommendation 1 (DER Planning, Forecasting, Visibility, Lessons Learned) and Recommendation 4 (Dynamic and Static System Modelling Accuracy).

December 2016

In Progress

1603-14 OC Leadership Mid-year check of the status of the OC and Subcommittee Work Plan efforts

September 2016

September 2016 – Vice Chair Linke led the OC in a discussion of the Committee’s work plan. Plans are being made to hold an Executive Committee and Subcommittee Leadership meeting to develop the 2017 work plan.

In Progress Complete

June 2016 Meeting Action Items



1606-01 ORS Determine the continued need for reliability coordinator reliability plans. Consider standards IRO-001 and IRO-014.

September 2016

March 2016

September 2016 – ORS presented a recommendation, which the OC approved regarding the continued development of reliability plans. The OC tabled a second recommendation from the ORS and asked NERC Staff to further evaluate the ORS proposal, since it involves a Rules of Procedure change.

In Progress

September 2016 Meeting Action Items



1609-01 Keith Carman, Lloyd Linke, Jerry Rust (chair) and

Todd Lucas

Consider proposed revisions to the OC Charter

December 2016

September 2016 – OC reviewed proposed revisions to the OC Charter. Those revisions will be finalized at the December 2016 meeting.

In Progress


1609-02 NERC Staff Review the definition to State Government sector

December 2016

September 2016 – During the OC’s discussion of the revisions to the OC Charter, an OC member questioned the definition of the State Government sector.

In Progress

1609-03 EAS Revised Event Analysis Process December 2016

September 2016 – The OC approved posting a revision to the Event Analysis Process for a 45-day comment period.

In Progress

1609-04 ORS Disposition of the ORS’s Data Exchange Working Group

December 2016

September 2016 – The ORS reported that it has asked the DEWG to review its scope to determine activities that need to continue and to arrive at a recommendation related to the disposition of the DEWG.

In Progress

1609-05 ORS Update the Guideline for Approving Regional and Reliability Coordinator Reliability Plans

March 2017 September 2016 – The OC approved an ORS recommendation to update the Guideline for Approving Regional and Reliability Coordinator Reliability Plans.

In Progress

1609-06 Todd Lucas, Doug Hils, Jerry Rust, Steve Ashbaker, Robert Blohm

and Peter Brandien

Short-Term Special Assessment: Single Points of Disruption on Natural Gas Infrastructure

May 2017 September 2016 – The OC appointed volunteers to the Short-Term Special Assessment Technical Advisory Committee.

In Progress

1609-07 Disbursed Generation

Resources Task Force

Created a task force that would be an advisory group to the OC. The task force would not become active until the DERTF report is completed in early 2017.

On-Going September 2016 – The OC was presented with the concept of creating a DGRTF. The primary task of the DGRTF would be to ensure that the standards development process accounts for DGRs. The OC will consider the scope of the DGRTF at its December 2016 meeting.

In Progress

1609-08 RS Reliability Guideline: Frequency Response Sharing

December 2016

September 2016 – The OC was asked by the RS to provide comments on the draft Reliability Guideline: Frequency Response Sharing.

In Progress


Documents

Meeting Minutes Operating Committee€¦ · Approved the 2016-2020 OC Strategic Plan. 13. Approved the disposition of the Eastern Interconnection unaccounted for inadvertent interchange