Eastern Interconnection

Balancing Authority Webinar

NERC Resources Subcommittee

August 15, 2017

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Agenda

• Overview of Time and Inadvertent management upon BAL-004 retirement EI BA survey responses

Options

Recommendation

• Other BA operating topics Drawdown of current large Inadvertent Interchange balances

Solar eclipse

Inverter issue

DCS data collection

Generator governor survey

NIa NIs error checking tool

• Post webex survey

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Orders on Inadvertent Interchange

• Order No. 693 directed changes to BAL-006 to cap and penalize large Inadvertent Interchange balances

• BAL-001-2 was offered as an alternative, but FERC directed NERC to report in 2 years on impact on Inadvertent Interchange balances

• RS looking for EI BA support in managing and drawing down balances over the next 12-18 months to avoid additional standards

• Time has been running fast over the past several months, if your BA has a + Inadvertent balance and has been increasing, please review your control and metering

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Time Error and II Post-BAL-004

• In January, FERC approved retirement of BAL-004 upon the retirement of the NAESB business practice WEQ-006

• While NAESB retired WEQ-006, it will take a FERC Order to remove WEQ-006 from tariffs

• The NERC Operating Committee (OC) approved a Reference Document to allow TECs if needed*

• WECC, ERCOT and HQ Interconnections all planning on continuing TECs in different forms

• Plan is to use a transition approach in the East

* NERC Petition for retirement of BAL-004-0

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EI BA Webex and Survey

• Held a webex with Eastern Interconnection Balancing Authorities April 28 covering Current performance issues

BAL-004 transition options

o Halt TECs

o Continue as-is

o Transition/relaxation approach

• Conducted post-webex survey Responses represented 71% of EI load

82% in favor of relaxed/transition approach

18% continue as-is

None in favor of full halt of TECs

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Recommended TEC Transition

• Proposing the following transition approach to Inadvertent Interchange and Time Error management

• Step 1 Continue current approach to TECs

Use coordinated unilateral Inadvertent Payback as outlined in following slides

Widen TEC window to +/-20 seconds when FERC retires NAESB WEQ-006 (may not occur this year)

• Step 2 (2018) Evaluate performance compared to previous years and other Interconnections

Discuss options with BAs for 2019o Possible wider window or smaller offset

o Voluntary automatic TEC

• Step 3 (2019) Implement adjustments based on performance (both East and other Interconnections) and BA preferences

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Time Management Approach

Lesser of -50MW or -20% of Bias

Inadvertent Recovery Strongly

Encouraged

+10 Seconds

+5 Seconds

0 Seconds

-5 Seconds

-10 Seconds

BA with + Inadvertent Balance BA with - Inadvertent Balance

Lesser of -50MW or -20% of Bias

Inadvertent Recovery OK

While not prohibited, any recovery

of + Inadvertent should be

coordinated with other BAs with an

opposite balance

Lesser of+50MW or +20% of Bias

Inadvertent Payback OK

Lesser of +50MW or +20% of Bias

Inadvertent Payback Strongly Encouraged

While not prohibited, any payback of

- Inadvertent should be coordinated

with other BAs with an opposite

balance

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Large Inadvertent Balances

• Resources Subcommittee will reach out to BAs with large balances (greater than +/- 10,000 MWHrs on or off peak) to suggest an approach to draw balances down over about 1 year

• Should be a one-time exercise if time management approach in previous slide is used

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Other Operating Topics

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August 21 Eclipse

• NERC does not expect major issues due to the solar eclipse, that said, BAs should still be prepared to act

• Those BAs with large solar penetration may see a net generation decline

• Past experience in the UK and the US for major news and sporting events imply there could be a decline in load (people stop what they are doing to watch) during the event, followed by a load pickup

• BAs encouraged to keep maneuvering room in both directions and keep their eyes on the RCIS

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Inverter Issue

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DCS Data Collection

• BAL-002-2, which becomes effective 1/1/18, no longer requires quarterly reporting

• Summary data still needed NERC State of Reliability Report metrics

NERC directed by FERC on BA performance issues caused by new standard

• NERC RS looking to have a voluntary quarterly reporting process from RSGs and non-RSG BAs to capture the necessary data beginning in 2018

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Governor Survey

• Western Interconnection Generator Survey initiated Friday, August 11. Survey requested back within 30 days.

• Eastern Interconnection tentatively set for late September 2017 or early October 2017.

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Net Interchange Tool

• NERC OC endorsed development of a real-time error-checking tool that Compares actual net interchange (NIa) between BAs

Sums Eastern Interconnection BAs’ scheduled net interchange (NIs)

Help RCs and BAs identify unexplained abnormal frequency due to EMS outages or errors in line modeling, metering, or interchange schedules

Can be used to create a “backup ACE” for BAs

• Nearly all EI BA data is mapped into the tool

• Proposing a bi-weekly snapshot and outreach to EI BAs to track down data issues

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Post-Webex Survey

Please take a minute to respond to this short survey regarding this and future webinars:

https://www.surveymonkey.com/r/GCNVD8Q

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Questions?

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FAQ

• Are the approaches in this presentation mandatory? No, they are good utility practices that utilities did for decades prior to the existence of

enforceable standards

• What if I don’t participate in the suggested time management approach? More TECs and larger Inadvertent balance

Possible future standards on Inadvertent Interchange

• What if I don’t participate in manual TECs? There are no financial sanctions

Will accumulate some Inadvertent

Some impact on your CPS and BAAL

Lose an opportunity to objectively show that the Industry can perform basic tasks absent a mandatory standard

• What if I have a large Inadvertent Balance? RS can assist with finding partners for coordinated unilateral or bilateral payback

opportunities

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Appendix

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Acronyms

• ATEC: Automatic Time Error Correction

• BA: Balancing Authority

• CPT: Central Prevailing Time

• FERC: Federal Energy Regulatory Commission

• II: Inadvertent Interchange

• NAESB: North American Energy Standards Board

• NIa: Net Actual Interchange

• OC: Operating Committee

• RS: Resources Subcommittee

• TEC: Time Error Correction

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References

• RS Scope

• Time Monitoring Reference Document

• EI Time Error website