Balancing Authority Operating Committee October 3, 2017

Minutes No. 13

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Southwest Power Pool

BALANCING AUTHORITY OPERATING COMMITTEE MEETING

October 3, 2017

Novi, MI, 8:00 – Noon (EPT)

• M I N U T E S • Agenda Item 1 – Call to Order, Attendance, and Agenda Approval The meeting was called to order by Vice Chairman Greg McAuley at 8:11 AM. Introductions were made and attendance was taken. (See Attachment 1 – Attendance List). The agenda was approved with no modifications. Agenda Item 2 – Approval of Minutes for July 11, 2017

Vice Chairman McAuley asked that the Minutes be approved as posted. Kyle McMenamin moved to approve the July 11, 2017, BAOC meeting minutes and Gary Plummer seconded. There were no ‘nay’ votes and no abstentions. Minutes were approved. Agenda Item 3 – BAOC Roster and Distribution List Review

Scott Aclin requested the BAOC review the existing roster and make any necessary updates. Mr. Aclin inquired about nominations for a new Chair. Bryan Taggart was recommended by Ron Gunderson for BAOC Chair, seconded by Greg McAuley. All voted in favor of the recommendation. This recommendation will be forwarded to the Corporate Governance Committee for consideration for nomination to the Board. Greg McAuley stated he will be stepping down from the BAOC and this will be his last meeting. No nominations for Vice Chair were made. An action item was taken for a request for nominations for Vice Chair be sent to the BAOC members.

Agenda Item 4 – Annual Review of BAOC Governing Documents

BAOC Charter Mr. Aclin stated the BAOC Charter was reviewed and no changes were made. BA Operating Protocols Mr. Aclin updated the group that version 3.0 of the Operating Protocols were endorsed by the BAOC and published July 21, 2017. Attachment AN (Section 18.4) Mr. Aclin stated that no changes were made to Attachment AN of the SPP Tariff. Ron Gunderson noted discussion in the Market Working Group regarding the disbanding of the BAOC, but a balancing group is required per Attachment AN. It was discussed the BAOC was formed to represent the SPP Balancing Authority and its members provided balancing experience and oversight that should be provided by a group separate from the ORWG.

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Agenda Item 5 – SPP Staff Update

EOP Review Process Update Mr. Aclin shared the recommended updates to the EOP Review Process. The Reliability Compliance Working Group was added as a reviewing party. The Gas Electric Coordination Task Force was removed since it has been disbanded. An additional stakeholder recommendation was made to extend the review period from 14 days to 30 days. Discussion was had by the group regarding the delay extending the review period would have on the review process. Gary Plummer made a motion to leave the review period at 14 days and making the other changes to the reviewing party. Bryan Taggart seconded this motion. The motion carried unanimously. An action item was taken for the BAOC Staff Secretary to inform the requesting party that after due consideration the EOP review period will remain 14 days. EIDSN WAAV Tool Update Mr. Aclin shared the purpose of the EIDSN WAAV tool as a backup for ACE and a validation for ACE and interchange errors. In 2014, the NERC Resources Subcommittee solicited volunteer Reliability Coordinators to develop tools to monitor BA interchange errors. The data required includes actual and scheduled net interchange action, actual and scheduled frequency, frequency bias and time error. This data also allows for providing a backup ACE during events a BA is unable to calculate ACE. This would increase the resiliency of the Eastern Interconnect by providing these alternate ACE calculations. Load Shed Testing Update Margaret Adams provided an update on the July 20 and September 7 Load Shed Tests. The July 20 Load Shed Test had a simulated load shed of 1200 MW with all 21 entities participating. The emails received indicated a total of 1086 but 2 entities did not respond. It was recommended by the group that the SPP Operators contact those entities not responding in the future to get the simulated load shed data. The September 7 Load Shed Test involved a 12,000 MW simulated load shed. This value was unintended. The SPP Operators proceeded with the test using this value in order to test the entire process. Most entities questioned the simulation amount, indicated they would not be able to shed this large an amount of load if this were an actual event, cited concerns about shedding critical loads in an actual event, and/or expressed concerns this amount would overlap the UFLS. The test was deemed a success and SPP has already implemented improvements in internal procedures and the Load Shed Calculator to increase awareness for the SPP Operators. The BAOC also suggested SPP consider adding a procedure for errors and testing the error process once developed.

Agenda Item 6 – NERC Standards Update

Shannon Mickens provided an overview of the SPP RTO Compliance organization and staff. He shared the work being performed internally by SPP in terms of an implementation process and his team’s plans to roll this out to the SPP Working Groups in the coming months. Even if members are unable to attend the SPP hosted NERC comment meetings, they are encouraged to register so they receive the comments raised in the discussion. Entities are also encouraged to vote on behalf of their organizations even when that is not in agreement with SPP’s vote. In future meetings, more informative updates of upcoming standards updates will be provided in the meeting material even if the agenda does not allow for a full

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Minutes No. 13

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discussion. These updates will be focused on changes impacting the SPP Balancing Authority. A document providing NERC Standards activity updates and dates of upcoming SPP comment meetings was provided in the meeting material.

Agenda Item 7 – NERC Resources Subcommittee Update

Daniel Baker reviewed the BAL-002-2 impacts to reporting, which will now be quarterly. He also noted the generator survey requested by NERC to determine how generators responded to two major events. SPP is gathering generator owner contact data to help with the research on frequency, MW output, machine base, etc. The NERC Resources Subcommittee (RS) is also keeping an eye on Inadvertent Interchange balances although NAESB WEQ006 and BAL-004 have been retired. There are still concerns about stopping payback and analysis continues. The plan is to voluntarily transition to a process which is more relaxed and makes sense. The RS is also concerned with time error building up and the issues time error represents including inertia. SPP is taking the lead in the Operating Reserves Guideline in terms of primary frequency response controls including inverter based asynchronous resources. The ADI Guideline is being modified for MWH, which is not done currently. The Inadvertent Guideline is also being analyzed for effects on the BA footprint.

Agenda Item 8 – Renewable Integration Update

Casey Cathey provided an update on renewal integration. SPP is aligning its Essential Reliability Services with the NERC Essential Reliability Services Task Force including a focus on thermal congestion management, voltage stability (on track to be online at SPP in Q2 of 2018), transient stability (SPP capital project for Q2 2019), capacity management, ramping and frequency/inertia. Some policy changes may also come through FERC. Analysis is being done on quick start compensation since SPP has encountered as much wind ramp to date of 3,700 MW in an hour with 6,227 MW of quick start units currently available within 15 minutes to compensate for a down ramp of this amount of wind. RR116 on Quick Starts is expected to have a January implementation and will allow for more efficient and effective use of quick start resources. Over 36,000 MW of wind and 7GW of solar are in the SPP GI queue. SPP already starts seeing reliability issues when wind is at 10 GW and higher. It was suggested that SPP consider requiring battery installation in the future. Due to evolving changes to tax credits, there are some changes anticipated to wind energy developments but the number will likely continue to grow. Recommendations include SPP managing voltage stability via analysis in real-time, incorporating more voltage stability analysis in the transition planning process, revisiting the damping ration in the SPP Disturbance Performance Requirements Criteria, installing online transient stability contingency screening, analyzing and qualifying the risks of load and renewable forecast deviations, and using report findings as parameters for future PMU siting.

Agenda Item 9 – Resource Forecast Improvements

Gunnar Shaffer shared resource forecast improvements with the group and data gathered from time spent with the SPP wind and solar forecast vendor, Energy & Meteo Systems. The timelines of the short, mid and long term forecasts were reviewed. These forecasts continue to improve. Recent improvements include locational turbine specific forecasts, improvements in static data, complex terrain modeling and its effects on production, and the use of “spread forecasting” for understanding model certainty. The benefits of using persistence over forecast were reviewed as

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well as the tendency of accuracy to improve as percentage of capacity increases but suffer as wind capacity increases. Forecasted ramping information is also a new feature available. Outages and Derates should be submitted in CROW for increased accuracy. Icing effects are not expected to be forecasted but a CROW Forced outage or derate should be entered when icing effects the capabilities of the wind farm. SPP also has icing forecast capability as provided by the vendor, but this is used independent of the CROW outage process. Potential RR Protocol changes were shared including requirements for individual generator locations, requirements for corner and mid-points of solar resources, icing detection and ability to de-ice, inverter abilities in asynchronous resources, yearly solar de-rating factor. Other considerations going forward include faster data transfer, icing research, new wind farms making it difficult to maintain accurate models, behind-the-meter and energy storage integration and its forecasting, and re-powering.

Agenda Item 10 – Open Discussion

No items were brought up for discussion.

Agenda Item 11 – Review of Action Items

The following actions were taken:

• Action Item #14 – Opened. Forward recommendation to CGC for nomination of Bryan Taggart as BAOC Chair.

• Action Item #15 – Opened. Send request for nomination for BAOC Vice Chair. • Action Item #16 – Opened. Inform requestor of 30 day EOP Review time period that BAOC voted to

retain 14 day review process. Agenda Item 12 – Next Meetings

• January 30, 2018 – Teleconference, 1:00-3:00 PM

• April 3, 2018 – Face-to-Face, Tulsa, OK, 8:00 AM – Noon (CPT) followed by 2018 EOP Summer Preparedness Workshop, 1:00 – 5:00 PM

• June 5, 2018 – Teleconference, 1:00-3:00 PM

• October 2, 2018 - Face-to-Face, Little Rock – 8:00 AM to Noon (CPT) followed by 2018 EOP Winter Preparedness Workshop, 1:00 – 5:00 PM

Adjournment

With no further business, the meeting was adjourned by Vice Chairman Greg McAuley at 12:01 PM. Respectfully submitted, Margaret Adams in Kim Gorter’s Absence Staff Secretary, BAOC

Balancing Authority Operating Committee

October 3, 2017ITC HeadquartersNovi, Michigan8:00 a.m. to Noon

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Agenda1. BAOC Call to Order, Attendance, and Agenda Approval

…………………………………………...…….Greg McAuley

2. Approval of Minutes for July 11, 2017............................ All

3. BAOC Roster Review and Distribution List Review ………………………………………………………..Scott Aclin

4. Annual Review of BAOC Governing Documents ……………………………………………………..…Scott Aclin

a. BAOC Charterb. BA Operating Protocolsc. Attachment AN (Section 18.4)

5. SPP Staff Update a. EOP Review Process Update…………………………………Scott Aclinb. EISDN WAAV Tool Update……………………………………Scott Aclinc. Load Shed Testing Update……………………………..Margaret Adams

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Agenda (Cont’d)6. NERC Standards Update........................ Shannon Mickens

7. NERC Resources Subcommittee Update……..Daniel Baker

8. Renewable Integration Update………………Casey Cathey

9. Resource Forecast Improvements……….…Gunnar Shaffer

10. Open Discussion...........................................................All

11. Review of Action Items ........................... Margaret Adams

12. Next Meetings............................................Greg McAuley

13. Adjournment………….................................Greg McAuley

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Approval of Minutes –July 11, 2017

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BAOC Roster Review and Distribution List ReviewScott Aclin

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BAOC Governing Documents – Annual ReviewScott Aclin

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• BAOC Charter – No changes made

• BA Operating Protocols v3.0 - Current Version endorsed and published July 21, 2017

• Attachment AN, (Section 18.4) – No changes made

BAOC Governing Documents

SPP Staff Update

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EOP Review Process Update Scott Aclin• Stakeholder requested an extension on

the review period from 14 days to 30 days.

• The Reliability Compliance Working Group (RCWG) was added as a reviewing party.

• The Gas Electric Coordination Task Force (GECTF) has been disbanded and removed as a reviewing party.

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EIDSN WAAV Tool Scott Aclin• Purpose Backup ACE values ACE/interchange error validation

• Data required Net Interchange Actual Total (by neighbor) Net Interchange Schedule (total) BA Frequency Bias (this value will only need

updating annually) BA Frequency BA Scheduled Frequency Time Error

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Load Shed Testing UpdateMargaret Q. Adams

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Load Shed Test Summary

Date BA MW Shed

Entities Participating

Entity MW Shed, if Known

07/20/2017 1,200 21 *1086

9/7/2017 12,000 21 10,378

10/26/2017

12/14/2017

16*Corrected

Updates• Added feature to highlight percentage of

load shed

• Added total load shed data for each operator involved

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NERC Standards UpdateShannon Mickens

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NERC Resources Subcommittee UpdateDaniel Baker

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NERC RS Update• Voluntary BAL-002-2 Data Submittal

• Generator Survey

• Inadvertent Balance

• Time Error Practices/Retirement of BAL-004

• Reliability Guideline updates

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Renewable Integration UpdateCasey Cathey

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Resource Forecast ImprovementsGunnar Shaffer

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Open DiscussionALL

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Review of Action ItemsMargaret Adams

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Next Meetings

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• January 20, 2018 – Teleconference, 1:00 PM to 3:00 PM(Update after meeting: Meeting changed to January 23rd)

• April 3, 2018 – Face-to-Face, Tulsa, OK, 8:00 AM to Noon followed by EOP SummerPreparedness Workshop, 1:00 PM to 5:00 PM

• June 5, 2018 – Teleconference, 1:00 PM to 3:00 PM

• October 2, 2018 – Face-to-Face, Little Rock, AR, 8:00 AM – Noon followed by the EOP WinterPreparedness Workshop, 1:00 PM to 5:00 PM

Next Meetings

Adjournment

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Attended First Name Last Name Committee Position Companyx Gregory McAuley Vice Chair Oklahoma Gas and Electric Co.x Bryn Wilson Alternate Oklahoma Gas and Electric Co.

x Mike Anderson Alternate American Electric Power

x Laurie Gregg Member Lincoln Electric SystemLee Anderson Alternate Lincoln Electric System

x Mark Eastwood Member City Utilities of SpringfieldJohn Stephens Alternate City Utilities of Springfield

x Kyle McMenamin Member Xcel EnergyMike Harrison Alternate Xcel Energy

x Andrew Ridley Member Grand River Dam Authorityx Jeff Wells Alternate Grand River Dam Authority

x Ron Gunderson Member Nebraska Public Power DistrictJake Burger Alternate Nebraska Public Power District

Joel Robles Member Omaha Public Power DistrictLuke Haner Alternate Omaha Public Power District

x Gary Plummer Member City of IndependenceJohn Mason Alternate City of Independence

x David Pham Member Empire District Electric Company

Fred Meyers Alternate Empire District Electric Company

Darryl Boggess Member Western FarmersJosh Kirby Alternate Western Farmers

Jerry McVey Member Sunflower Electric Power Corporation

Bill Nolte Alternate Sunflower Electric Power Corporation

x Josef Perez Member Board of Public Utilities (Kansas City, KS)

Jerin Purtee Alternate Board of Public Utilities (Kansas City, KS)

John Carlson Member Kansas City Power & Light Company

Balancing Authority Operating Committee Meeting Attendance

Tuesday, October 03, 2017

David Adamczyk Alternate Kansas City Power & Light Company

x Chris Bridges Member Kansas City Power & Light Company (GMO)

Dave Millam Alternate Kansas City Power & Light Company (GMO)

x Bryan Taggart Member Westar EnergyAllen Klassen Alternate Westar Energy

x Craig Speidel Member Western Area Uppper EastScott Byer Alternate Western Area Uppper East

x Scott Aclin SPP Staff SPP BA Adminx Margaret Adams SPP Staff SPP BA Adminx Daniel Baker SPP Staffx Kary Bigbie AEPx Josh Boshearsx Casey Cathey SPP Staffx Garrett Crowson SPP Staffx Abubaker Elteriefi ITCx Allan George Sunflowerx Brad Johnston SPP Staffx Ryan Kirk AEPx Jon Langford SPP Staffx H. Laox Tom Mayhan OPPDx Shannon Mickens SPP Staffx Chance Myers Western Farmersx Tanner New Sunflowerx Melissa Rinehart SPP Staffx Gunnar Shaffer SPP Staffx Carl Stelly SPP Staffx Jason Tanner SPP Staffx Sing Tayx Kim Van Brimer SPP Staff