Evolving NERC Standards Processes and Practices

Paradigm Shift

2

Key Documents

● Standards Committee Strategic Plan● Standards Committee Strategic Work Plan

2013-2015● Reliability Standards Development Plan 2013-

2015

3

Standards Reform

Ultimate goal ● Focus on reliability - ensure that industry resources

invested to develop standards are worthy of the output: a stable body of world class reliability standards

NERC implemented changes:● Leadership and staff changes

Standards department reorganization

● Assessing compliance – Coordination with Standards Reliability Assessment Initiative (RAI) Drafting RSAWs during standards development

● Standing up RISC

4

Mark Lauby Vice President and Director of Standards

Valerie Agnew Director of Standards

Development

Kristin IwanechkoManager of Standards

Information

Al McMeekinStandards Developer

Erika Chanzes Standards Developer

StandardsDecember 1, 2012

Howard GugelAssociate Director of

Standards Development

Laura HusseyDirector of Standards

Development

Edward DobrowolskiStandards Developer

Stephen Crutchfield Standards Developer

Suzanne Smith-WigfallExecutiveAssistant

Vacant Standards Developer

Steven NoessStandards Developer

VacantStandards Developer

Joseph Krisiak Standards Developer

Scott Barfield-McGinnis Standards Developer

Darrel W. Richardson Standards Developer

Mark OlsonStandards Developer

Ryan StewartStandards Developer

Barbara Nutter Standards Developer

Laura AndersonStandards Developer

VacantStandards Developer

David TaylorDirector of Regulatory

Initiatives

Natara BierriaReliability Standards

Analyst

Monica Benson Standards Development

Administrator

Wendy KinnardStandards Development

Administrator

Vacant Standards Developer

Mallory Huggins Standards Developer

5

Standards Reform

● NERC Board resolution – November 2012 Accountability Drafting Team composition Workflow/process Work Plan (Reliability Standards Development

Plan)

● Additional changes being considered by SPIG SPIG has been reconvened to assess status

6

Areas of Strategic Focus

From Standards Committee Strategic Plan (Draft):

● Transition the current body of standards – Complete the transition to a stable, world-class set of clear, concise results-based standards that ensure the reliability of the bulk power system.

● FERC Directives and Recommendations from the 2003 Blackout Report – Target a filing to resolve all currently outstanding FERC directives by the end of 2013.

● Five Year Review of Reliability Standards – Complete any outstanding 5-year reviews of Reliability Standards.

● Finish remaining open Standard projects – Focus project management on active and inactive Standard development projects to bring closure to these projects by the end of 2013.  Closure in some instances may involve a recommendation to stop some projects, consolidate projects or roll them into the Directives project.  Projects that cannot be completed by end of 2013 will have a specified completion date agreed to by the SC.

7

. . . continued

● Paragraph 81 and Results-Based Standards concepts – Apply Paragraph 81 (retire or modify FERC-approved Reliability Standard requirements that as FERC noted, "provide little protection to the reliable operations of the BES", are redundant or unnecessary) and Results-Based Standards concepts across the above mentioned major work areas during their completion.

● Existing or Emerging Issues and Reliability Risks – Address emerging risks to the bulk power system by developing high quality and technically sound Reliability Standards, as needed, and in a timely manner.

● Maintenance of Existing Reliability Standards – Continue to review existing Reliability Standards to ensure the standards remain up-to-date. Provide interpretations on Reliability Standards as required in the Standards Process Manual.

● Compliance Input – Provide technical expertise and feedback on NERC’s compliance program, including Compliance Application Notices (CANs), Compliance Analysis Reports (CARs) and Reliability Standards Audit Worksheets (RSAW), etc.

8

RISC

● RISC committee formed and now active. “Reliability Issues Steering Committee” Reports to NERC Board of Trustees Identify and triage reliability issues

● RISC solicits “nominations” of reliability issues Can initiate a range of reliability solutions:

Standards, Guidelines, NERC policies, etc. Considers findings from system events, lessons

learned, risk trends Includes consideration of scope, prioritization, cost

v. benefit, etc.

9

RISC Membership

● 12 Members 4 from MRC 2 at-large (stakeholders) 5 from committees

• SC, OC, PC, CIPC and CCC Senior NERC staff (non-voting)

● Geographic and sector diversity

10

Standards Committee Strategic Work Plan 2013-2015

Key tactical recommendations:● SC is accountable to NERC BOT

Deliver high-quality and timely standards Effective management of process Term limits on SC leaders

● Smaller, more agile, committed SDTs No more than 10 people Facilitator/project manager, SMEs, technical

writer/lawyer Form pool of SMEs for each standards category NERC staff or writer “holds the pen” and consults

with SDT; SDT approves draft

11

. . . continued

● Aggressively oversee and manage the workflow and effective use of the Standards development process Address directives Satisfy 5-year review requirement Prioritize existing projects and emerging issues Integrate with RISC efforts Engage NERC technical committees Enhanced consensus-building New SC Project Management/Oversight committee Address training, processes and procedures

(including subgroups) Collaborate with NERC Compliance staff

12

Reliability Standards Development Plan 2013-2015

● Approved by BOD on 12/19/12.● Significant revision of NERC’s approach to

managing the standards development workload.

● Initiatives: Paragraph 81 phase 2 Results-based Standards Internal Controls integration/eliminate zero-defect

requirements Concurrent development of Compliance tools, such

as RSAWs

13

NERC Technical Committees

● Increased engagement between the Standards Committee and the NERC technical committees ensure that reliability standards are technically

sound build industry consensus as NERC accelerates the

transformation of the current standards to a body of world-class standards

ensure the reliability of the bulk power system.

14

Standard Processes Manual

● Revisions based on SPIG and Board recommendations. Standards Process Improvement Group

● SPM Revisions passed ballot in December.

15

Standard Processes Manual

Key Revisions:● Streamline the work of drafting teams in

responding to comments● Negative ballots without comments (submitted

either individually or as part of a group) count toward quorum but not consensus

● Emphasis on developing informal consensus prior to formal balloting

● Clarification of the handling and purpose of interpretations

● Limited waiver provision

16

17

Questions?