Regional Criteria Work Group (RCWG)Recommendation for RPIC

August 15, 2012

Brian Theaker

RCWG Chair

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• Background

• RCWG Recommendation

• Comments

• Other issues outside RCWG scope

• RPIC vote on recommendation

• Next steps

Agenda

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• RCWG formed in August 2011

• Focus: Regional Criteria (“RegCr”)

• Joint RPIC/GNC concerns

• MembershipoChairs of standing committeesoRPIC and GNC members

Background

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RCWG Membership

• Steve Ashbaker, WECC RPIC*• John Tolo, TEP (OC Chair) GNC**• Dick Ferreira, TANC* Board• Bob Harshbarger, PSE (MIC Chair)• Vicken Kasarjian, SMUD*• Diana Pommen, AESO*• Steve Rueckert, WECC• John Stout, Mariner Consulting (Board Vice-Chair)**• Brian Theaker, NRG Energy, Inc. (RCWG Chair)*• Scott Waples, Avista (PCC Chair)• Tom Botello, SCE (emeritus)

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• RegCr impose mandatory requirements but are not under the CMEP

• Only WECC members are required to adhere to RegCr requirementso Loss of WECC membership most severe sanction

for failing to adhere

• Perception that RegCr were increasingly being used for reliability purposes o Frequency Responsive Reserve

RegCr Concerns

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• Develop recommendations to:o Eliminate RegCr that do not serve reliabilityo Incorporate RegCr requirements to standards,

incl. new as appropriate

• Annual list of applicable RegCr

• Estimate impact of non-adherence to RegCr

• Develop methods of monitoring adherenceoMinimally burdensome

RCWG Charter

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• Documents that impose mandatory requirements that materially affect reliability should be standards

• Documents that impose mandatory requirements that do not materially affect reliability but do promote efficient business should be Regional Business Practices

RCWG Principles

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• RCWG White Paper

• Mark-up of WECC Document Categorization Policy

• Proposed Process for Monitoring Adherence to WECC RBP Requirements

Final RCWG Package Includes

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• Retain eight (9) RegCr that satisfy “Fill-In-The-Blank” requirements as RegCr:o EOP-007-WECC-CRT-1

Blackstart Unit Testingo MOD-[011-013]-WECC-CRT-1

Steady State and Dynamic Datao PRC-[012-014]-WECC-CRT-2

Remedial Action Schemeso PRC-003-WECC-CRT-1

Relay Mis-operation o PRC-006-WECC-CRT-1

Underfrequency Load Shedding

Recommendation

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• Draft SARs to evaluate seven (7) existing RC for promotion to standards:o PRC-001-WECC-CRT-1

(Governor Droop criterion)o PRC-024-WECC-CRT-1

(Low Voltage Ride-Though Criterion)o TPL-[001-004]-WECC-CRT-2

(System Performance Criteria)o VAR-502-WECC-CRT-0

(Power System Stabilizer Design and Performance)

Recommendation (2)

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• Request custodian work group (Telecommunications Work Group) to evaluate one (1) existing Regional Criterion for possible demotion to a guidelineoCOM-001-WECC-CRT-1

Digital Circuits Sychronization

Recommendation (3)

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• Rename sixteen (16) existing “INT” RegCr as “Regional Business Practices”o INT-001, 003, 004, 005, 007, 008, 009, 010,

011, 014, 015, 016, 017, 018, 020, 021oNo fundamental change in the nature of the

requirements they impose oNo desire to derail INT re-write effort underwayo If parties feel INTs are mis-categorized, they

can submit a SAR

Recommendation (4)

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Proposed Disposition of RegCr

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• Approve and implement “Process for Monitoring Adherence to WECC Regional Business Practice Requirements”

Recommendation (5)

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• Staff posts list of applicable RBP annually• 3rd party reporting of alleged non-adherence

WECC staff review allegations of non-adherence Confidentiality maintained If non-adherent, submit plan for adherence Appeals to Board/designated committee WECC posting of confirmed non-adherence

• Still missing: an exemptions/exceptions process

RBP Adherence Process Components

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• Initial recommendation posted May 1

• Comments received June 1o Ten sets of comments receivedoOpposition to annual officer confirmationoDivided on other aspects

• Revised recommendation posted July 10o Six sets of comments received July 25oWith one exception, comments editorial

Member Feedback

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• Support annual confirmation • Indirect impacts of failure to adhere to RBP• Guideline development must follow process set

forth in Bylaws §8.5.6oOutside RCWG scope

• Categorization dispute resolution processo June RPIC meeting – whom? WSC? RPIC?

• Need an exemptions/exceptions processoRCWG agrees – but whom?

Powerex Positions

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• Develop recommendations to:o Eliminate RegCr that do not serve reliabilityo Incorporate RegCr requirements to standards,

incl. new as appropriate

• Annual list of applicable RegCr

• Estimate impact of non-adherence to RegCr

• Methods of monitoring adherenceoMinimally burdensome

RCWG Charter & Recommendation

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• Exceptions/exemptions process

• Document categorization dispute resolution process

Follow-up items:

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• Moved, that the Reliability Policy Issues Committee approve the RCWG recommendation as presented on August 15, 2012

Motion

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• Seek Board approval at next available Board meeting

Next steps

Brian Theaker

RCWG Chair

NRG Energy, Inc.

brian.theaker@nrgenergy.com

530-295-3305

Questions?