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Definition of Adequate Level

of Reliability Industry Webinar

May 23, 2012, 1:00-3:00 p.m. ET

2 RELIABILITY | ACCOUNTABILITY

Outline

• Background

• Definition and Reliability Objectives

• Supporting Documents

• Industry Feedback

• Next Steps

• Questions and Answers


Background


Background

• Adequate Level of Reliability Task Force (ALRTF) charged with: Reviewing current definition of ALRTF (filed for information with FERC in

2008)

Determining if existing definition and characteristics need enhancement in coordination with the Member Representatives Committee’s (MRC’s) Bulk Electric System (BES)/ALR Policy Group

• Task Force includes representatives from each of the Standing Committees : Standards Committee, Compliance and Certification Committee, Operating Committee, Planning Committee, Critical Infrastructure Protection Committee

• Has met regularly since June 2011


Background

• Goal: Develop definition that encompasses NERC’s responsibility to ensure

reliability

Define objectives and characteristics that are measurable*

Enable the ERO enterprise to focus on and align its activities with specific characteristics of ALR that have the greatest impact on BES reliability

• Definition must be: Concise, yet self-contained

Self-explanatory to BES planners and operators

Meaningful to policymakers; placing a premium on translation in the ALRTF Report

*Qualitative only; quantitative measures to be developed via standards.


Background

• Input from MRC’s BES/ALR Policy Group directed group to consider:

Cost/benefit

Load loss distinctions

Definition of Cascading


Draft Definition: Overview

• Seven Reliability Objectives

• Associated Expected Performance Outcomes

Expressed in four time frames: o Steady State

o Transient

o Operator response

o Recovery and system restoration

• Associated Disturbances

Both predefined and beyond the scope of predefined Disturbances


Definition and Reliability Objectives


Draft Definition: Preambles

• Reliability objectives are “what’s” not “how’s” Not bound by jurisdictional implications

• Reliability objectives support standards development But not every reliability objective requires or will result in a standard

• Each objective has some expected performance outcomes under specific events i.e., when subject to predefined Disturbances

• Expected performance outcomes are presented qualitatively at a high level, in different time frames

• Predefined Disturbances are “categorized,” not details


Draft Definition: Time Frames

• Time frames for expected performance outcomes:

Steady State – pre-disturbance

Transient – during the disturbance, from milliseconds to seconds, with automatic responses and control actions

Operator response – from seconds to minutes/hours, with some automatic actions plus operator actions

Recovery and system restoration – post disturbance, from minutes to hours, with actions to re-establish a sustainable operating state and then a new steady state that meets specific reliability objectives established by the circumstances of the Disturbance


Predefined Disturbances

• Predefined Disturbances – the events under which the performance outcomes are expected

• Predefined Disturbances set the scope of expected performance outcome for Reliability Objectives 1 to 5

Not applicable to Objectives 6 and 7 as these two address post-Disturbance situations

• Predefined Disturbances are deterministic, but are deemed to have a reasonable probability of occurring

To scope the design, planning and operation of BES o e.g., loss of single transmission circuit due to lightning strike



• Predefined Disturbances – specific events or grid Disturbances in 3 categories:

Steady state, no contingencies: everything more or less as expected/forecast

Events resulting in loss of BES element(s) in a single protection zone o e.g., due to equipment failure, lightning strike on a transmission

tower tripping a single circuit

Events resulting in loss of two or more BES elements not in a common protection zone o e.g., due to protection or breaker failure to clear initial faults;

lightning strike on a transmission tower tripping two circuits



• Beyond Predefined Disturbances – specific events or Disturbances in two categories:

Extreme Events: Two or more dependent or separate events occurring simultaneously, or in close time proximity, resulting in the removal of two or more BES elements not common to a single zone of protection o e.g., tornadoes removing circuits on the same right of way; common

cause resulting in the loss of a substation or a generating plant

High-Impact, Low-Frequency (HILF) Events: A class of improbable events with the potential to significantly affect the reliability of the BES o e.g., Geomagnetic Disturbances (GMD); coordinated cyber and/or

physical attacks


Reliability Objective #1

• The BES is free from instability, uncontrolled separation, Cascading, and voltage collapse under normal operating conditions and when subject to predefine Disturbances.

• Expected performance outcomes: Stable frequency and voltage within predefined range

Adequate reactive reserve maintained

No Cascading

• Applicable Time Frames (1, 2, 3): (1) Steady State

(2) Transient

(3) Operator Response



• BES frequency is maintained within defined parameters under normal operating conditions and when subject to predefined Disturbances.

• Expected performance outcomes: Stable frequency within predefined range

BES equipment frequency limits satisfied

Frequency oscillations experience positive damping


(2) Transient




• BES voltage is maintained within defined parameters during normal operating conditions and when subject to predefined Disturbances.

• Expected performance outcomes: Stable voltage within predefined range

BES equipment voltage limits satisfied

Voltage oscillations experience positive damping


(2) Transient




• Sufficient transfer capability of the BES transmission system is provided and maintained to meet required BES demands during normal operating conditions and when subject to predefined Disturbances.

• Expected performance outcome: Deliver sufficient resources to meet load obligations using the BES while

operating within established operating parameters (e.g. thermal, voltage, equipment ratings)


(2) Transient




• Sufficient resource capability on the BES is provided and maintained to meet required BES demands during normal operating conditions and when subject to predefined Disturbances.

• Expected performance outcome: Have sufficient resources to meet load obligations within established

operating parameters (e.g., ancillary services).


(2) Transient




• Adverse Reliability Impacts on the BES resulting from conditions beyond the scope of predefined Disturbances (e.g., multiple contingences, unplanned and uncontrolled outages, cyber security events, malicious acts) are minimized.

• Expected performance outcomes: Propagation of cascading or collapse limited

The BES is returned to a stable state with resources and load restored efficiently

• Applicable Time Frames (2, 3, 4): (2) Transient


(4) Recovery and System Restoration



• The system has the ability to recover from major system Disturbances, such as blackouts and widespread outages, by restoring BES Facilities in a controlled manner that rebuilds BES integrity and restores supply to load.

• Expected performance outcome: Recover the BES and restore available resources and load to a stable

interconnected operating state expeditiously after a major system Disturbance

• Applicable Time Frames (4): (4) Recovery and System Restoration


Examples of Expected Performance Outcome

• BES is stable and exhibits positive damping after a predefined Disturbance

• Steady state frequency at 60 Hz +/- a margin

• Disturbance Control Standard (DCS):

Recovery in 15 minutes

• Steady state voltage at nominal value +/- a margin

• Sufficient transmission transfer capability to deliver resource to meet system demand under peak load condition

• Loss of load probability at x day/y years


Supporting Documents


Technical Document

Technical Report Supporting Definition of Adequate Level of Reliability”

Introduction

Overview of ALR Definition Structure

Performance Outcomes

Causes of Disturbances

Comparison with current ALR definition with the proposed ALR definition

Appendix: Means to Meet Reliability Objectives (with examples for illustration)


Other Associated Work

• Discussion Draft: Mapping of Adequate Level of Reliability for the Bulk Electric System to Standards Development Reliability Principles

• Discussion Paper: Risk Tolerance for Widespread Bulk Electric System Outages with Significant Socio-Economic Impacts of Reliable BES Operations


Discussion Paper:

Risk Tolerance for Widespread BES Outages

with Significant Socioeconomic Impact


Optimizing Risk Mitigation to the Risk

• What is the “right” balance of costs of risk prevention vs. the cost of the risk itself?

Society cannot afford the cost of a power system immune to blackouts

Society cannot afford too many blackouts

• We know how to measure costs, but, how do we measure risk?

Probabilistic Risk Management framework

• We do not currently have the data necessary to perform this risk analysis, but, we are already working towards it…


Defining a Risk Tolerance

• What are the magnitudes of risk and probability of risk that society can and cannot tolerate?

• Magnitude Society has a fairly high tolerance for localized distribution outages

Society has a low tolerance for widespread blackouts

What magnitude of risk/blackout is worth managing from a continental, socioeconomic perspective? (e.g., how much water makes a flood?)

• Frequency It cannot be never

It cannot be once a year

Is there a metric similar to the 30 year flood plain that we can develop?

• Risk Tolerance = fulcrum point balancing of social cost of mitigation vs. social cost of the outage risks


Managing Risk

3. High

Impact, Low

Probability

1. High Impact, High

Probability High

Severity

2. Low Impact, High

Probability

4. Low

Impact, Low

Probability Low

Low High

Probability


Managing Risk

• Quadrant 1: High Impact, High Probability Plan, design and operate to prevent risks from residing in this quadrant

• Quadrant 2: Low Impact, High Probability Establish deterministic criteria, e.g., operate within limits for a single

contingency

• Quadrant 3: High Impact, Low Probability Two strategies:

o Emergency preparedness and response to reduce both impact and probability of an event (acts of nature, extreme “bad luck”)

o Defense in depth (acts of aggression)

• Quadrant 4: Low Impact, Low Probability Learning opportunities


NERC is Already Using These Concepts

Reliability Risk Management Concepts


Should We Head in This Direction?

• Migrate from ALR criteria largely deterministic in nature to criteria more probabilistic in nature?

• Develop stochastic analytical methods to define ALR based on many variables and a balance of cost of risk mitigation vs. the cost of the risk itself?

Similar to Loss of Load Probability (LOLP)/Loss of Load Expectation (LOLE) analyses that are used to determine resource adequacy at the State/Province level

• If so, what are the recommended next steps?


Industry Feedback:

What We Need From You


Question 1

• ALRTF chose to develop the ALR definition by presenting the performance state that the design, planning, and operation of the BES will achieve by meeting a set of reliability objectives

Do you agree with this approach?


Question 2

• Reliability Objectives #1, #2, and #3 are aimed at maintaining BES integrity and normal operating state (voltage and frequency ranges)

Do you agree with these reliability objectives and their associated performance outcomes?


Question 3a

• Reliability Objectives #4 and #5 are aimed at maintaining adequate BES capabilities (resource and transmission) to meet required BES demands.

Do you agree with these reliability objectives and their associated performance outcomes?


Question 3b

The ALRTF concluded that:

Meeting required BES demands is the fundamental reason for ensuring BES integrity and maintaining normal operating states (voltage and frequency).

Adequate resource and transmission capabilities need to be provided to meet forecast demands.

EPA 215 does not provide FERC and NERC the authority to require or enforce provision of these capabilities,

• The ALRTF proposes these reliability objectives only to aid assessment of future needs but does not prescribe how or by whom the required BES capabilities will be provided.

Do you agree that this is an acceptable approach?


Question 3c

• In Reliability Objectives #4 and #5, the ALRTF uses the phrases “required BES demands” and “meet load obligations” to refer to transmission and resource adequacy.

Do you believe this language is clear?


Question 4

• Reliability Objectives #6 and #7 are aimed at responding to BES events that go beyond those covered in Reliability Objectives #1-5 (beyond the predefined Disturbances)

Do you support these objectives?


Question 5

• Performance Outcomes and Disturbances

Technical Report provides additional detail, but at a high level

Specific performance outcomes and Disturbances will be developed in the standards development process

o Do you support this approach?


Question 6

• Time Frames

The Technical Document presents four time frames for performance outcomes.

o Does this help fully describe each performance outcome?


Question 7

• Does the ALRTF’s proposed definition of ALR improve upon the current definition?

Current definition was filed with FERC for information in 2008

Current definition of ALR: http://www.nerc.com/files/Adequate_Level_of_Reliability.pdf

http://www.nerc.com/files/Adequate_Level_of_Reliability.pdf


Question 8

• NERC’s 8 Reliability Principles and ALR:

Reliability Principles are approved by NERC’s Board and are incorporated into the Standards Processes Manual

As of now, new standard requirements must be tied to one of the principles

o Are both the Reliability Principles and ALR Definition necessary?

Reliability Principles: http://www.nerc.com/files/Reliability_Principles.pdf

http://www.nerc.com/files/Reliability_Principles.pdf


Question 9

• BES v. Bulk-Power System (BPS) v. System

BES: NERC Glossary Term

BPS: Specific statutory definition applicable within the U.S.

System: Used in the current Board-approved definition of ALR, but is very broad

• ALRTF chose to use BES; do you support this approach?


Question 10

• Other comments or feedback?


Next Steps


Schedule

• April 23 - June 23, 2012: Public comment period

• May 23, 2012: Webinar

• June 28, 2012: ALRTF Meeting

• July - August, 2012: Revise Draft ALR Definition and Technical Document based on comments; prepare and submit package for Board of Trustees endorsement/consideration; consider next steps on Socio-Economic Impact Discussion Paper.


Questions?

Allen Mosher ALRTF Chair (202) 467-2944 [email protected]

Mallory Huggins ALRTF NERC Coordinator (202) 644-8062 [email protected]

mailto:[email protected]

mailto:[email protected]

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