1

New York StateReliability Council

……..Promoting Electric System Reliabilityin New York State

Presentation to the MEUA Annual Meeting - 2000

September 19-21, 2000

Richard J. Bolbrock, P.E.Chairman - New York State Reliability Council

2

NYSRC Mission

To Promote and Preserve

the Reliability of Electric Service

on the Bulk Power System

in New York State

3

General Responsibilities

• Establish and maintain Reliability Rules for use by the NYISO and all entities engaging in electric power transactions on the Bulk Power System

• Along with NPCC and the ISO, monitor compliance with the Reliability Rules

• Establish State-Wide Installed Capacity Requirements consistent with NPCC Standards

4

NYSRCExecutive Committee

ReliabilityRules

Subcommittee

ReliabilityComplianceMonitoring

Subcommittee

ICAPWorking Group

NYSRC Organizational Structure

5

7 - Affiliated Members from the Transmission Providers

1 - Member from the Electric Suppliers

1 - Member from the Municipalities

1 - Member from the Large Customers

3 - Non-Affiliated Members

3 - Observers

ISO

PSC

NPCC

NYSRC Membership

6

NYSRC Responsibility Topics

• NYSRC Rule Development

• NYSRC Compliance Monitoring

• NYCA ICAP Requirements

7

NYSRC Rule Development

1. Elements of NYSRC Rules

2. Process for Updating NYSRC Rules

3. Rule Development Program for 2000

8

Elements of the NYSRC Rules

• NERC Standards

• NPCC Standards

• Local Reliability Rules

• Other more restrictive or stringent criteria than NPCC Standards, recognizing special NYS system characteristics or reliability needs

Procedure for Reviewing, Developing,Modifying, and Disseminating NYSRC Reliability Rules

NYSRC

Rule ChangeRequest

EC Assigns to RRS

RRS Recommendation to Accept or Reject Rule Change

NotificationEC

Action

Notify MPs

Implement Rule Dispute Resolution

PostNotifyFERC & PSC

FinalNew or Modified

Rule

To RRSfor Revision

RRSFinal Draft Rule

PostRRS 1st Draft Rule

ISOReviews

Rule

(Agrees with Rule)

(Disagrees with Rule)

(Return)

(Reject Rule Change) (Accept Rule Change)

RRS Reviews Comments

(Approve)

(45 DayComment Period)

PostRequest

ISO MPs

ECAction

1

2

3

4

5

6

78

10

Rule Development Program for 2000

• Preparing new NYSRC Rules

• Merging NERC/NPCC Standards into NYSRC Rules

11

NYSRC Compliance Monitoring

1. NYSRC Compliance Review Process

2. 2000 NY Reliability Compliance Program

[2000 NYRCP]

12

Compliance Review Process

• Develop reporting procedures

• Collect data, documentation, and assessments to demonstrate compliance

• Evaluate compliance

• Report conclusions regarding full compliance or levels of non-compliance

13

Types of NYSRC Rule Assessments

AssessmentType

Type of

NYSRC Rule

Entity RuleIs

Applicable To **

ComplianceMonitoring

EntityOversight

Review

A NERC/NPCC ISO NPCC NYSRC

B NERC/NPCC MPs ISO NYSRC/NPCC

C NYS Specific * ISO NYSRC -

D NYS Specific * MPs ISO NYSRC

____* NYSRC Local Rules or Rules that are either more stringent than NPCC or NERC criteria, or notcovered by NPCC or NERC criteria.

** Also, this entity has reporting responsibility

14

Compliance Review - Type ANYSRC Rule: NPCC CriteriaResponsible Reporting Entity: ISOCompliance Monitoring Entity: NPCCOversight Review Entity: NYSRC

Examples:

• Transmission System Performance (3.2.1-3.2.6)

• NERC/NPCC Pilot Program Standards

ISOPrepares

Compliance Report

NYSRCProvides

Oversight Reviewand Comments

to ISO

NPCC MonitorsISO

Compliance

1

23

15

Compliance Review - Type BNYSRC Rule: NPCC CriteriaResponsible Reporting Entity: MPsCompliance Monitoring Entity: ISOOversight Review Entity: NYSRC/NPCC

Examples:

• NERC/NPCC Pilot Program Standards

MPsPrepares

Compliance Report

NYSRCProvides

Oversight Reviewand Comments

to ISO

NPCC ProvidesOversight

Review

ISO MonitorsMP

Compliance

1

2

3 4

16

Compliance Review - Type C

NYSRC Rule: Not Covered by NPCC/NERC CriteriaResponsible Reporting Entity: ISOCompliance Monitoring Entity: NYSRC

Examples:

• Locational ICAP Responsibility (3.1.2)

• Restoration Procedures (4.1.6)

• DMNC Testing Procedure (3.1.3.1)

ISOPrepares

Compliance Report

NYSRC MonitorsISO

Compliance

1

2

17

Compliance Review - Type DNYSRC Rule: Not Covered by NPCC/NERC CriteriaResponsible Reporting Entity: MPsCompliance Monitoring Entity: ISOOversight Review Entity: NYSRC

Rule Examples:

• Local Rules

• LSE Capacity Responsibility (3.1.4)

• DMNC Testing - Test Results (3.1.3.1)

MPs PrepareCompliance Report

ISO MonitorsMP

Compliance

NYSRC ProvidesOversight

Review

1

2

3

18

Summary2000 NY Reliability Compliance Program (NYRCP)

Assessments

Assessment / RuleReporting

EntityMonitoring

Entity

1. Statewide ICAP NYSRC NPCC2. Locational ICAP Responsibility ISO NYSRC3. DMNC Testing ISO

GNYSRC

ISO*4. LSE Capacity Responsibility LSE ISO*5. Transmission System Performance ISO NPCC*6. Proposed Transmission & Interconnection

ProjectsG, T ISO*

7. System Restoration Plan ISO NYSRC8. ISO Operating Data ISO NYSRC9. Local Rules (5) ConEd, LIPA ISO*10. NERC/NPCC Pilot Program ** ISO, MPs NPCC, ISO*

* NYSRC has an oversight role.** This program includes approximately 40 planning and operating assessmentsG Generation OwnerTLSE

Transmission Owner Load Serving Entity

19

2000 NYRCP Summary

NYSRC Rules

Compliance/ReportingEntity NYS Specific NERC/NPCC Total

NYISO 5 23 28

Market Participants 8 16 24

____ ____ ____

Total 13 39 52

20

2000 NYRCP Objectives

• To Monitor Compliance with NYSRC Rules

• To Test Effectiveness of the Compliance Review Process and Procedures

• To Assess Communication between NYSRC, NYISO, Market Participants, and NPCC Concerning Reliability Assurance

21

NYCA IRM RequirementsNYSRC Study Process

Study Assumptions

Multi-Area ReliabilityModel

NYCA ResultsIRM - 18%

NYISO Study

LSEIRM

Requirements

LocationalCapacity

Requirements

ISONE OntarioPJM H-Q

11 NYCA Zones

22

New York ModelNYISO/NYSRC Relationship

NY StateReliabilityCouncil

(NYSRC)

IndependentSystem

Operator(NYISO)

DisputeResolution

Reliability Rules / Criteria

Compliance Data

23

NYSRC Relationship to NYISO

• NYSRC and the NYISO will function as two separate and distinct entities but work cooperatively

• NYSRC defines the reliability rules for operating the system• NYISO responsible for short term reliability of NYS power

system• NYSRC and NYISO will both participate at NPCC and

NERC/NAERO• NYSRC assesses and monitors NYISO's compliance with

reliability rules

24

NYSRC Relationship to NYISOCont’d

• NYISO provides NYSRC with data, reports, and assistance• NYISO provides reports to NYSRC describing performance of

NYS Power System• NYSRC reviews and approves triennial reviews and other

reliability reports prepared by the NYISO for submittal to NPCC/NERC

25

Functional RelationshipsBetween NYSRC & NYISO

FUNCTION NYSRC ROLE ISO ROLE

NYSRC Reliability Rules Develops RulesOperates system incompliance with Rules

Convey NYSRC Rulesand Procedures

Convey to ISOConvey applicable Rulesand Procedures to MarketParticipants

Compliance with RulesMonitors ISOcompliance withRules

Prepare compliancedocumentation inaccordance with NYSRCprocedures and timelines

26

Functional RelationshipsBetween NYSRC & NYISO

FUNCTION NYSRC ROLE ISO ROLE

ISO Non-Compliancewith Rules

Notify ISO of non-compliance actions tocorrect deficiencies

Correct deficiencies

Dispute ResolutionParticipate in processas required

Participate in process asrequired

Compliance with NPCCStandards

Review ISOcompliancedocuments submittedto NPCC

Submit compliancedocuments to NPCC andNYSRC for oversightreview

27

Functional RelationshipsBetween NYSRC & NYISO

FUNCTION NYSRC ROLE ISO ROLE

Market Participantcompliance with Rules

Review MPcompliance reportsprepared by ISO andfollow-up actions

Report to NYSRC, MPcompliance with Rules

LSE ReserveRequirements

Determine state-widereserve requirementsbased on ReliabilityRules

Determine LSE reserverequirements based onstate-wide requirementsand Reliability Rules

ISOStudies/Assistance forNYSRC

Request ISOsutdies/assistance

Preparestudies/assistance forNYSRC

ISO Liaison to NYSRCStaff representativeassigned