Meeting Minutes Operating Committee · Consent Agenda (Item 2) Chair Linke noted that there were no changes to the minutes and he requested a motion to approve. Doug Hils made the

Meeting Minutes Operating Committee September 11-12, 2018 Hyatt Regency Minneapolis 1300 Nicollet Mall Minneapolis, MN 55403

A regular meeting of the NERC Operating Committee (OC) was held on September 11-12, 2018, in Minneapolis. Minnesota. The meeting agenda and the attendance list are affixed as Exhibits A and B, respectively; and individual statements and minority opinions as Exhibits C and D, respectively. The meeting presentations are posted in a separate file at OC Presentations. OC Chair Lloyd Linke convened the meeting at 1:00 p.m. CDT on Tuesday, September 11. Sandy Shiflett announced that a quorum was present, read the Notice of Public Meeting and referred the committee to the NERC Antitrust Compliance Guidelines. Chair’s Opening Remarks Chair Linke welcomed members and observers to the meeting and recognized the recently appointed OC members as a result of the June election. Consent Agenda (Item 2) Chair Linke noted that there were no changes to the minutes and he requested a motion to approve. Doug Hils made the motion to approve the minutes which carried without dissent. By consent, the committee approved the minutes of the June 5-6, 2018 meeting. Chair’s Remarks (Item 3) Chair Linke reported on August 15, 2018 Member Representatives Committee (MRC) Meeting and the August 16, 2018 Board of Trustees (Board) Meeting. The major discussion items included providing the presentation that Chair Linke gave at the MRC meeting on the OC and our major accomplishments of the past two years and the Boards approval of the committee members elected during the recent OC/PC election process. Chair Linke reported that Leonard Kula’s resignation from the OC created a vacancy on the OC Nominating Committee. Chair Linke nominated and the OC approve the appointment of Meg Albright to the Nominating Committee as his replacement.

Meeting Highlights 1. Chair Linke recognized the recently elected OC

members as a result of the June election. 2. Chair Linke appointed Meg Albright to the

Nominating Committee. 3. The OC approved the EAS Scope document v 1.2 4. The OC approved the Reference Document and

Reliability Guideline Communications Process Document.

5. Howard Gugel, NERC presented a request from the SC for the OC to review the BAL-002-3 SAR. Chair Linked assigned the review of the SAR to the RS.

6. The OC approved the Methods for Establishing IROLS Reliability Guideline, the IROL Framework Assessment Report, and the BPS-Connected Inverter-Based Performance Reliability Guideline.

https://www.nerc.com/comm/OC/AgendasHighlightsMinutes/OC_Meeting_Presentations_September_2018.pdf

https://www.nerc.com/comm/OC/AgendasHighlightsMinutes/OC_Meeting_Presentations_September_2018.pdf

Meeting Minutes – Operating Committee Meeting – September 11-12, 2018 2

OC Action Item Review (Item 4) Vice Chair Zwergel reviewed the list of action items and reported that several have been completed or are on the agenda for this meeting. The revised action item list is attached as Exhibit E. Doug Peterchuck recommended making sure the updated RTA Quality compliance guideline item in the action plan was a new one for this year and ensure that the older RTA compliance guideline was closed. Chair Linke state that he would review the plan and ensure this took place. Operating Reliability Subcommittee (ORS) Status Report (Item 5a) ORS Vice Chair Chris Pilong summarized the subcommittee’s status report which was included in the agenda package. Highlights of the report include:

The ORS continues to monitor pending changes to the MISO and PJM Reliability Plans. These expected minor changes are required due to the OVEC Balancing Area moving from MISO to the PJM RC area. ORS will provide an update at the December OC meeting.

ORS received an update from California ISO on their transition to an RC role. CAISO has prepared a draft Reliability Plan that was shared with the group.

At the request of the OC, ORS has re-examined the draft Reliability Coordinator Reliability Plan Reference Document. The revised document maintains a forum for RCs to discuss pending changes to other RC’s plans, while shifting the assessment of an entity’s capability from ORS to the NERC registration process. The group has some concerns about the OC suggestion to incorporate a notification to Regional Entities, and will seek clarification of the OC’s intent.

Reliability Plans – how do we notify the RC that the reliability plans are approved? Are the minutes sufficient along with posting them on the NERC website? Currently only plans that are approved are posted on the website. If a plan is not endorsed it is not posted. For transparency purposes, should it be posted that a plan was not endorsed or should that information just be found in the meeting minutes noting it was not endorsed?

o Overall consensus of OC: Present the plan as it was originally presented. Continue with the current practice. No letter or message indicating the ORS/OC did not endorse a plan. Information will only be indicated in the minutes or lack of posting on the NERC website.

As part of the 2018 work plan, the ORS has formed a task team that will review and revise the ORS Scope document. Changes are required due to the transition of reliability tools away from NERC. The final version will be revised to reflect changes to the ORS role in reviewing RC Reliability Plans.

The Chairs of ORS and RS presented overviews of the activities of their respective Subcommittees at each other’s recent meetings. The groups will continue to look at ways to assist each other with their work plans.

The ORS has reviewed the ERSWG final measures to determine if there should be revisions to the group Scope. Specifically, Measures 1 (inertia), 2 (initial frequency deviation), 4 (frequency response), and 6 (Ramping capability) were discussed. The ORS will continue to monitor RS


activities related to these measures and will assist as needed. ORS does not recommend a scope change to do so.

ORS continues to receive updates from the EIDSN Steering Committee on the IDC Tool enhancements. Specifically, the Parallel Flow Visualization (PFV) project is intended to improve the data quality used by the IDC during curtailment of transactions and may eventually result in changes to both NERC Reliability Standards and NAESB Business Practices. The 12-18 month field trial began on schedule in September 2107. Throughout the field trial, ORS will receive updates on tool performance from the IDCWG. At present, the PFV seems to be functioning correctly. Net Actual and Net Scheduled Interchange - There are current plans to move this initiative to a web based portal application hosted by EIDSN. EIDSN has indicated that this transition should be completed in late 2018 or early 2019.

ORS members discussed operational impacts and observations related to severe weather events through summer 2018.

The Electricity Infrastructure Security Council (Frank Koza) provided a presentation related to “Black Sky” scenarios. EIS is working with regulators and the nuclear industry to consider the use of nuclear generation to support public health and safety following extreme contingencies/events.

Resources Subcommittee (RS) Status Report (Item 5b) RS Chair Tom Pruitt provided an overview of subcommittee’s status report which was included in the agenda package. Highlights of the report include:

NERC Primary Frequency Response Guideline Document – Substantial progress by the sub-team has been made. Additional information from the LBNL report and the IRPTF draft is being incorporated to provide additional guidance on sustained performance and response from non-synchronous resources. Work is on target for review and endorsement by the RS at the October meeting and subsequent submittal to the OC for consideration at the December meeting.

NERC Balancing Authority Area Footprint Change Tasks Reference Document – A draft of the document was covered at the meeting and a review by the ORS and NERC staff was recommended to obtain additional comments/edits for inclusion prior to the October RS meeting. Work is on target for review and endorsement by the RS at the October meeting and subsequent submittal to the OC for consideration at the December meeting.

(New Task) Frequency Response Analysis Tool (FRAT) enhancement – NERC staff suggested an enhancement to the tool to flag the governor dead band. The RS concurred and a sub team has been formed to help improve the tool.

RS Frequency Working Group (FWG) – The FWG selected M4 and BAL-003-1 frequency events for March 2018, April 2018, and May 2018 for the interconnections. Revision of a draft on systematic approach to event selection continues.

RS Inadvertent Interchange Working Group (IIWG) – An update on the interconnection inadvertent interchange was provided and balances continue to trend downward. The Eastern Interconnection trend beginning near the end of 2017 continues and continues to be investigated.


Reserves Working Group (RWG) — Chair Tony Nguyen reviewed the voluntary DCS submittal process for BAL-002-2. Changes to the form to accommodate BA footprint changes were reviewed and implemented.

Generator Survey – The Eastern Interconnection complete results were reviewed and additional scrubbing and analysis of the data was recommended.

BA Performance Data – The RS reviewed the BAL-001 CPS1 and BAAL Data submitted for the 2nd quarter of 2018. Additional outreach will continue to help BA reconcile issues with CPS 1 and BAAL calculations. A presentation on issues and lessons learned for certain BAs is planned for the October RS meeting.

Time Error – The RS reviewed the four interconnection time error reports for 2nd quarter of 2018. Manual time error correction for the EI and WI continues to experience mostly fast corrections. The RS will continue to monitor time error, BA’s inadvertent balance changes, and mismatches of NIS and NIA between BA’s.

Quarterly review of ERS Measures – Matthew Varghese reviewed the Measure 1 Interconnection Inertia Reports and Measure 2 RoCoF and the MW analysis.

Quarterly Review of Interconnection Frequency Performance - Terry Bilke reviewed the performance for all the interconnections. Representatives from each interconnection were tasked to review the largest outliers.

Changes in BA Area Footprints – In the EI, integration of OVEC into PJM Balancing Area RC has been delayed to December 1, 2018. In the WI, a resource moved from BPA to GRID and required transfer of FBS between the BAs. Also in the WI, a new BA is being formed from certain other BPA BA resources; date of this change occurred on July 31, 2018.

Event Analysis Subcommittee (EAS) Status Report (Item 5c) EAS Chair Rich Hydzik summarized the subcommittee’s status report which was included in the agenda package. He highlighted the following topics:

Request OC approval of the EAS Scope Document 1.2. The scope document was updated to reflect seven NERC Regions due to the dissolution of SPP RE and minor grammatical changes. Chair Linke requested a motion to approve the scope document. Dick Pursley motioned to approve the scope document which carried without dissent. By consent, the committee approved the scope document.

The sixth annual Monitoring and Situational Awareness Technical Conference on October 2-3, 2018 at MISO in Carmel, Indiana. The theme of this year’s conference is “The Evolution of EMS Systems”. This year’s conference will unite expertise from various utilities and vendors to share cutting-edge ideas and good industry practices, to focus on how utilities can get the full benefit of new standards and innovation tools, and to identify trends and lessons learned from events across different vendors, EMS platforms, and interconnections. An announcement was sent out to industry July 13 with the conference registration links and travel information, this information is also available on the NERC calendar.


The annual review of the Event Analysis Process document has begun. Four Lessons Learned published since last OC meeting

LL20180701 – “Risk of Internet Accessible Cyber Assets”

LL20180702 – “Preparing Circuit Breakers for Operation in Cold Weather”

LL20180801 – “Loss of Substation Data Circuits to SCADA”

LL20180802 – “Firewall Failure After Time Limit Exceeded” The Lessons Learned slides will be posted with OC presentations. Personnel Subcommittee (PS) Status Report (Item 5d) Trion King summarized the subcommittee’s status report which was included in the agenda package.

The PS is working on a comprehensive evaluation of adult learning principles and instructional design concepts in order to develop program criteria that results in quality learning events.

The PS is recruiting new members for the Continuing Education Review Panel (CERP).

Job task analysis survey being conducted. Reliability Assessment Subcommittee (RAS) (Item 5e) Tim Fryfogle provided an update on RAS activities. Highlights include: Production schedules for the 2018 Long-Term Reliability Assessment and the 2018/2019 Winter Assessment, an update on the PAWG Work Plan, and the 2018 ProbA Schedule. Joint Meeting Topic discussion (Item 6) Chair Linke recapped the Joint OC/PC meeting topics and opened the floor for any discussion by the OC. The Joint meeting topics were:

1. Western Interconnection Gas - Electric Interface Study

2. EPRI Electromagnetic Pulse (EMP) Research Project

3. Electricity Information Sharing and Analysis Center (E-ISAC) Update

4. Standards Efficiency Review Update

5. Inverter-based Resource Performance Task Force Update

6. Methods for Establishing IROLs Task Force Update OC Work Plan (Item 7) Chair Linke reviewed the 2018 OC work plan. Highlights include:

The OC developed a formal roll out and communications process for Reliability Guidelines and Reference Documents


Development of new Reliability guidelines for Inverter-based Resources and establishing IROLs.

Review of several existing Reliability Guidelines including Primary Frequency Control

Review and update of ORS and RS Scope Documents Reliability Issues Steering Committee (RISC) Status Report (Item 8) Vice Chair Zwergel presented an update on the activities of the RISC. Lawrence Berkeley National Laboratory Frequency Control Study Results (Item 9) Joe Eto, John Undrill and Sydney Neimeyer presented an overview and detailed discussion of the Lawrence Berkeley National Laboratory Frequency Control Study. The purpose of the study was to build upon a previous FERC report prepared by LBNL to address frequency response issues holistically considering how all aspects of the US generation fleet (and loads) might change in the future on an interconnection-specific basis. The LBNL 2010 study developed new metrics, but used them to study only the impacts of one new form of generation (i.e., electronically coupled, variable renewable generation) on frequency response. The most recent study started from, but expanded previous FERC-sponsored, LBNL modeling and simulation framework.

Used industry standard simulation tool (GE PSLF) facilitates reproducibility of results

Examined broader range of frequency response topics sustained frequency response

Did not model transmission system or protection The study developed a simplified and highly flexible approach to system modeling

Conducted several 1000 parametric simulations

Usefulness confirmed by comparison with more detailed, industry-developed interconnection planning models

Key Study Findings:

Rapidly deployed and then sustained primary control action in response to the sudden loss of generation is a fundamental reliability requirement.

This requirement is met by the action of turbine governors and, in some cases, by fast demand response.

Generation interconnection policies determine the extent to which the fleet is equipped to provide primary frequency response

Generation fleet make-up determines the amount of primary frequency response that must be held in reserve and always available


Plant operating policies determine the speed with which primary frequency response will be deployed and whether response will be sustained

Study Recommendations:

Focused attention needed on the collection, maintenance, and validation of operating data and study models

International practices should be reviewed as options for U.S. grid operators to consider for adoption/adaptation

All generators should have the capability to provide sustained primary frequency response

Barriers to adding a frequency bias to plant load controllers should be evaluated and addressed

The contributions of non-traditional resources for primary frequency control should be studied and incorporated, as appropriate, into future operations

The changing composition of loads should be studied and addressed The presenters also provided detailed technical information relating to the initial conditions and study results. These technical discussions can be found in the presentations in the meeting minutes package. Adjourn and reconvene The OC adjourned at 5:00 p.m. CDT and reconvened the following morning at 8:00 a.m. CDT. Lessons Learned – PJM Load Shed event (Item 10) Chris Pilong gave an update on the Twin Branch/Edison Area Load Shed Event that occurred on May 29, 2018. Initial conditions for the event included a Hot Weather Alert and several scheduled transmission outages in the area. The event was precipitated by tree contact by the Twin Branch Jackson Road 138kV line which tripped the line and the Jackson Road 345/138kV #3 transformer. A subsequent cascade analysis failed to solve and was considered a possible cascade condition. PJM directed AEP to shed load to mitigate the condition. Once the transformer was returned to service, the cascade condition was mitigated and the load shed was cancelled. Recommendations regarding this event are:

Relay Settings:

AEP reviewed and updated the relay settings associated with the Jackson Rd J1 breaker.

Outage Approvals:

PJM will review the outage approval process during emergency procedures, including possible N-1-1 analysis.

Technology

PJM will review tools and technology to develop alternative methods to provide a solution when a contingency ‘doesn’t solve’.

Manual language


Reviewing M-3 and M-13 language for improvements and clarity based on operator feedback Chris also presented information regarding a low frequency event that occurred on July 10, 2018. The Eastern Interconnection was in a Time Error Correction (TEC) and scheduled frequency was 59.98 Hz. PJM lost 800 MW of generation around 1530 hrs. Their tie error increased to 1800 MW low following the generation losses and load increase (hot weather throughout the PJM footprint). PJM called for 2,600 MW of additional combustion turbines (CTs) between 1527 and 1552 hrs, deployed 100% RTO Synchronized Reserves at 1545 hrs and requested Simultaneous Activation of Reserve (SAR) with NPCC at 1550 hrs. Next steps include:

PJM is performing an internal Apparent Cause Analysis (ACA)

The ACA will include a review of the SCED cases

PJM is coordinating with the NERC Resource Subcommittee regarding the initial frequency drop

Review results of the analysis with the SOS and OC OC Charter Revisions and a new Reference Document and Reliability Guideline Communications Process (Item 11) Task team chair Sidney Jackson reviewed the team activities. The Task team worked with NERC staff to finalize the communications process document. Initially the process document was going to be placed in the OC Charter. After discussion with NERC legal it was decided not to include it in the Charter due to the level of detail. Instead, it was developed as a process guideline. Chair Linke requested a motion to approve the process guideline. Dick Pursley made the motion to approve the process guideline which carried without dissent. By consent, the committee approved the Reference Document and Reliability Guideline Communications Process Document.

Frequency Response Annual Analysis (FRAA) (Item 12) Bob Cummings, NERC Staff informed the OC that the FRAA is under development and is expected to be approved by the RS at their October, 2018 meeting. The FRAA will be brought to the OC for endorsement, assuming RS approval, via an e-mail ballot prior to the November, 2018 Board of Trustees meeting. Mr. Cummings indicated that the statistical analysis is complete and the Interconnection Frequency Response Obligations (IFRO) will remain static. The only change is anticipated to be the allocation of the IFRO. BAL-002 Standards Authorization Request (SAR)* - Request for OC input from NERC Standards Committee (SC) (Item 13) Howard Gugel requested the OC provide input relating to the technical merits of a recently submitted SAR for revisions to Reliability Standard BAL-002. The NERC SC received a SAR from Arizona Public Service to modify Reliability Standard BAL-002-2(i) Disturbance Control Standard—Contingency Reserve for Recovery from a Balancing Contingency Event. The SAR states the proposed change (allowing compliance with proposed BAL-002-3 R1 once Interconnection Frequency has recovered) would prevent the recovery of one event to create another event, High Frequency Trigger Limit – BAAL Exceedance (BAL-001-2 R2). The SAR further states that operating in such a manner as to intentionally increase Frequency when Frequency is already high should be avoided and discouraged during emergency operations. Chair Linke


assigned the review to the RS. The RS will review the SAR at their next meeting and will report back to the OC in December, if not before. Real-time Assessments Quality Task Force (RTAQTF) update (Item 14a) Doug Peterchuck, chair of the RTAQTF, provided an update on the RTAQTF. The task force discussed doing a compliance implementation, reference document, or reliability guideline. The Task Force will hold conference calls and web meeting to develop the documentation and anticipate having this in the first quarter of 2019. Methods for Establishing IROL Task Force (MEITF) (Item 14b) Dan Woodfin, ERCOT, provided an update on the MEITF.

Reliability Guideline: Methods for Establishing IROLS

Dan Woodfin reported that the Reliability Guideline: Methods for Establishing IROLS was submitted for industry comment. The task force addressed the comments and brought the guideline to the OC for approval. Chair Linke requested a motion to approve the guideline. Peter Brandien motioned to approve the guideline, which carried without dissent. By consent, the committee approved the Reliability Guideline: Methods for Establishing IROLS.

IROL Framework Assessment Report

Framework Assessment B, contrasts with Framework Assessment A. Discussion whether “Approve” is the correct process. Approval is the correct process since we are releasing this document to be used by the SDT, with support from the OC. Chair Linke requested a motion to approve the IROL Framework Assessment Report. Peter Brandien motioned to approve the framework document, which carried without dissent. By consent, the committee approved the IROL Framework Assessment Report.

Chair Linke requested a motion to disband the MEITF. Peter Brandien motioned to disband the task force, which carried without dissent. By consent, the committee approved to disband the MEITF. Chair Linke thanked the task force participants for all of their efforts. Inverted-baser Resources Performance Task Force (IRPTF) (Item 14c) Allen Schriver, IRPTF Chair, Ryan Quint and Rich Bauer, NERC Staff provided an update

Alert Update

Rich Bauer gave an update on the Alert that was issued. He indicated that we received 172 responses to the Alert. A breakdown of the responses is included in his presentation.

IRPTF Guideline

Ryan Quint reported that the IRPTF Reliability Guideline was submitted for industry comment. The task force addressed the comments and brought the guideline to the OC for approval. The OC chair presented three late wording clarifications by Robert Blohm that were included regarding deadbands. Chair Linke requested a motion to approve the guideline. Doug Hils motioned to


approve the guideline, which carried without dissent. By consent, the committee approved the IRPTF Reliability Guideline:

Reliability Coordinator Updates (item 15) SPP – CJ Brown, SPP Public announcement regarding SPP RC is coming. Continued to work with other RCs that plan to be in the West for tool. Committed to helping Peak in any way possible. They do plan to update their reliability plan and submit to ORS for approval. California ISO – Eric Schmitt, California ISO CAISO submitted tariff change to FERC and expect a decision by November. This change will include an RC agreement. CAISO is currently preparing for certification visit. They are also preparing to go live with BAs in CA 1/1/19., preceded by 60 days of shadow operations. CAISO is very supportive of transition work in play, making sure Peak is viable. Peak RC – Speaker unavailable. Peak is coordinating with potential RCs in WECC and will continue efforts to ensure a smooth transition in 2019. Peak will cease operations December 31, 2019. North American Generator Forum (Item 16a) Allen Schriver gave update on the Frequency Response and Energy Storage Workshop that was held August 1-2, in Washington D.C. Topics discussed during the workshop include: Understanding Modern Hydro and Battery Storage Technologies, Storage – Use Cases, Valuation, Modeling and Market Participation, and Storage in Markets with FERC Order 841. Allen Schriver also mentioned that the NAGF now has 63 member companies. Next Meeting The next meeting of the Operating Committee will be on December 11-12, 2018 in Atlanta, Georgia. Adjourn There being no further business before the Operating Committee, Chair Linke adjourned the meeting on Wednesday, September 12, 2018 at 11:05 a.m. CDT.

Sandy Shiflett on behalf of Stephen Crutchfield Sandy Shiflett / Stephen Crutchfield Secretary

Agenda Operating Committee **Joint Session: Operating Committee (OC)/Planning Committee (PC)/ Critical Infrastructure Protection Committee (CIPC): September 11, 2018 | 10:00 a.m. – Noon CDT September 11, 2018 | 1:00 – 5:00 p.m. CDT September 12, 2018 | 8:00 a.m. – Noon CDT Hyatt Regency Minneapolis 1300 Nicollet Mall Minneapolis, MN 55403

Call to Order NERC Antitrust Compliance Guidelines and Public Announcement Introduction and Chair’s Remarks

The Operating Committee (OC) opened nominations for 12 vacant positions from May 30 through June 29. One sector (Sector 7 - Electricity Marketer) had more nominees than available open positions; therefore, balloting was required for that sector. The following 10 persons were appointed by the NERC Board of Trustees at the August meeting to serve from 2018–2020 on the OC.

Sector Elected Member

1. Investor-owned utility Doug Hils, Duke Energy

2. State/municipal utility Sidney Jackson, Rochester Public Utilities

3. Cooperative utility Jeff Harrison, Associated Electric Cooperative, Inc.

4. Federal or provincial utility/Federal Power Marketing Administration

Michelle Rheault, Manitoba Hydro

5. Transmission dependent utility Brian Robinson, Utility Services, Inc.

6. Merchant electricity generator Allen Schriver, NextEra Energy

7. Electricity Marketer JT Thompson, NIPPC

8. Large end-use electricity customer Tom Siegrist, Brickfield, Burchette, Ritts, and Stone

9. Small end-use electricity customer None

10. Independent system operator/ regional transmission organization

Peter Brandien, ISO New England

Agenda – Operating Committee Meeting – September 11-12, 2018 2

Sector Elected Member

11. Regional Entity None – All members are appointed by their Regional Entity.

12. State Government William Chambliss, Virginia State Corporation Commission

1. Administrative items

a. Arrangements

i. Safety Briefing and Identification of Exits (Hotel Staff)

b. Announcement of Quorum

c. Background Information

d. OC Membership 2018-2020*

i. OC Roster*

ii. 30T32T32T30TUUOC Organizational Chart UU30T30T32T32T

iii. 30T32T32T30TOC Charter30T30T32T32T

iv. Parliamentary Procedures*

v. Participant Conduct Policy

e. Future Meetings

i. Please note that Joint OC/PC/CIPC meetings will be scheduled from 10:00 a.m. to Noon on the first day of the Committee meetings.

2018 Meeting Dates Time Location Hotel

December 11, 2018 December 12, 2018

1:00 to 5:00 p.m. 8:00 a.m. to Noon

Atlanta The Whitley

2019 Meeting Dates (proposed)

Time Location Hotel

March 5, 2019 March 6, 2019

1:00 to 5:00 p.m. 8:00 a.m. to Noon

TBD TBD

June 4, 2019 June 5, 2019

1:00 to 5:00 p.m. 8:00 a.m. to Noon

TBD TBD

September 10, 2019 September 11, 2019

1:00 to 5:00 p.m. 8:00 a.m. to Noon

TBD TBD

December 10, 2019 December 11, 2019

1:00 to 5:00 p.m. 8:00 a.m. to Noon

TBD TBD

Consent Agenda – Approve

http://www.nerc.com/comm/OC/Related%20Files%20DL/OC_Org_chart_20170830.pdf

http://www.nerc.com/comm/OC/Related%20Files%20DL/OC_Charter_20170930.pdf

http://www.nerc.com/comm/OC/Related%20Files%20DL/Final_NERC_Committee_Participant_Conduct_Policy_Approved.pdf


2. Minutes*

a. June 5-6, 2018 Meeting

Regular Agenda

3. Remarks and Reports

a. Remarks by Lloyd Linke, Operating Committee (OC) Chair

b. Nominating Committee member

c. Report of August 15, 2018 Member Representatives Committee (MRC) Meeting and the August 16, 2018 Board of Trustees (Board) Meeting

4. OC Action Items Review* – Vice Chair Zwergel - Information

5. Subcommittee Status Reports - Review

a. Operating Reliability Subcommittee (ORS)* – Vice Chair Chris Pilong

b. Resources Subcommittee (RS)* – Chair Tom Pruitt

c. Event Analysis Subcommittee (EAS)* – Chair Rich Hydzik

i. EAS Scope Document* (Approve)

d. Personnel Subcommittee (PS)* – Chair Rocky Williamson

e. Reliability Assessment Subcommittee (RAS)* – Chair Tim Fryfogle

6. Joint Meeting Topic discussion – Review and Discussion – Chair Linke

a. Western Interconnection Gas - Electric Interface Study

b. EPRI Electromagnetic Pulse (EMP) Research Project

c. Electricity Information Sharing and Analysis Center (E-ISAC) Update

d. Standards Efficiency Review Update

e. Inverter-based Resource Performance Task Force Update

f. Methods for Establishing IROLs Task Force Update

7. OC Work Plan* – Chair Linke

8. Reliability Issues Steering Committee (RISC) Status Report – Review and Discussion – Vice Chair Zwergel

9. Lawrence Berkeley National Laboratory Frequency Control Study Results – Joe Eto, John Undrill and Sydney Niemeyer

10. Lessons Learned – Information – PJM Load Shed event, Chris Pilong, PJM

11. OC Charter Revisions and a new Reference Document and Reliability Guideline Communications Process* (Approve) – Sidney Jackson, Rochester Public Utilities


12. Frequency Response Annual Analysis (Information) – Bob Cummings, NERC Staff

13. BAL-003 SAR* - Request for OC input from NERC Standards Committee – Darrel Richardson, NERC Staff

14. Task Force Updates

a. Real-time Assessments Task Force (RTATF) Guidance – Information and Discussion – Doug Peterchuck, RTATF Chair

b. Methods for Establishing IROL Task Force (MEITF) – Information, Discussion and Approval – Dan Woodfin, ERCOT

i. MEITF Reliability Guideline* - Approve

ii. MEITF IROL Framework Assessment* - Approve

c. Inverter-based Resources Performance Task Force (IRPTF) – Information, Discussion and Approval– Allen Schriver, IRPTF Chair, Ryan Quint and Rich Bauer, NERC Staff

i. IRPTF and NERC Alert update – Information and Discussion

ii. IRPTF Reliability Guideline* - Approve

15. WECC Reliability Coordinator Updates– Information and Discussion

a. Mountain West – CJ Brown, SPP

b. California ISO – Eric Schmitt

c. Peak RC – Tony Burt

16. Forum and Group Reports - Information

a. North American Generator Forum* – Allen Schriver

b. NERC Standards – Howard Gugel, NERC Staff

17. Chair’s Closing Remarks

18. Adjournment

*Background materials included.

Exhibit B

Attendees Operating Committee Meeting

September 11-12, 2018

OFFICERS Chair Lloyd Link

Vice Chair Dave Zwergel

Secretary and Staff Coordinator Stephen Crutchfield (not present)

MEMBERS

Voting Members

Sector Member(s) Sector Member(s)

Cooperative Jeff Harrison

Keith Carman

State/Municipal Doug Peterchuck

Sidney Jackson

Electricity Marketer

Greg Darnell

JT Thompson

Transmission Dependent Utility

John Stephens (not present)

Brian Robinson

Federal/Provincial Michelle Rheault

Jason Boniface

Meg Albright

Stephane Desbiens

Merchant Generator

Jim Fletcher

Al Schriver

Investor-Owned Utility

Gerry Beckerle (not present, proxy assigned)

Doug Hils

State Government Ryan Laruwe (not present)

Bill Chambliss (not present)

ISO/RTO Eric Schmitt

Peter Brandien

Small End-use Customer

Robert Blohm

Large End-use Customer

Tom Siegrist

Regional Entity Member Regional Entity Member

FRCC Glenn Dooley SERC Elaine Kwarcinski

MRO Dick Pursley Texas RE John Warren

NPCC Ralph Rufrano WECC Rich Hydzik

RF Leslie Krawczyk

Non-Voting Member

U.S Federal Thanh Luong (not present)

GUESTS

Subcommittee Leadership

EAS Chair Rich Hydzik EAS Vice Chair Vinit Gupta (not present)

ORS Chair Dave Devereaux (not present) ORS Vice Chair Chris Pilong

PS Chair Rocky Williamson (not present)

PS Vice Chair

RS Chair Tom Pruitt RS Vice Chair Sandip Sharma (not present)

Regional Entity Guests

FRCC Vince Ordax

Peter Heidrich

SERC Dave Krueger

MRO Dan Schoenecker

Richard Burt

Jake Bernhagen

Mike Bocovich

Texas RE Bob Collins

NPCC Andrey Oks WECC Steve Ashbaker

Tim Reynolds

RF Tony Purgar

Industry Guests

Name Company Name Company

Todd Lucas Southern Company Keith Steinmetz LEG/KU

Brett Koelsch Duke Energy Tony Jankowski We Energies

Sydney Neimeyer LBNL/FERC John Undrill LBNL/ASU

Dan Woodfin ERCOT Joe Eto LBNL

Eddy Lim FERC CJ Brown SPP

Sean Erickson WAPA Jim Williams SPP

Mark White OSI Luke Weber L7 Consulting

J Earl Coffman PECO Energy/Exelon Barry Bruun Eversource Energy

Dale Zahn Proven Compliance Solutions Ryan Johnson ACES

Darrel Yohnk ITC Holdings (proxy for Gerry Beckerle)

Nick Giffin ATC

John Simonelli ISO-NE Greg Park NWPP

Ali Ghassemian DOE Karie Barczak DTE Electric

NERC Staff

Sandy Shiflett James Merlo Rich Bauer Kiel Lyons

Bob Cummings Ryan Quint

Exhibit C Individual Statements Operating Committee Meeting September 11-12, 2018

There were none.

Exhibit D Minority Opinions Operating Committee Meeting September 11-12, 2018 There were none.

NERC Operating Committee Action Items

Dated: September 11June 5, 2018

NERC Operating Committee Action Items Page 1 of 8

March 2016 Meeting Action Items OC meeting

and item number

Assignment Description Due Date Progress Status

1603-06 Resources Subcommittee

(RS)

Modify the Reliability Guideline: Primary Frequency Control to address asynchronous resources

December 2018

March 2017 - The RS is developing a draft Reliability Guideline. March 2018 – The RS will be revising the Primary Frequency Control guideline in 2018 and will incorporated this into the revision.

In Progress

June 2016 Meeting Action Items OC meeting

and item number


1606-01 ORS Determine the continued need for reliability coordinator reliability plans. Consider standards IRO-001 and IRO-014.

March 2018

September 2016 – ORS presented a recommendation, which the OC approved regarding the continued development of reliability plans. The OC tabled a second recommendation from the ORS and asked NERC Staff to further evaluate the ORS proposal, since it involves a Rules of Procedure change. December 2016 - Dr. James Merlo discussed the ORS motion made in September to reinstitute some sort of oversight of the RC plans. NERC supports oversight of the RC plans since they require coordination and collaboration. NERC is supportive of a guideline change as it relates to oversight of RC plans and the ORS is pursuing such a revision under action item 1609-05 below. June 2017– The ORS developed a Reliability Coordinator Plan Reference Document and is requesting OC Comments on the document. The ORS will revise the document based on comments received and bring a request to the OC at its September meeting to post the documents for a 45-day industry comment period. September 2017 – The OC requested that the ORS coordinate development / approval of the guideline with the RC Checklist that is being developed by NERC Staff.

In Progress On June Agenda




March 2018 – The ORS has coordinated with NERC staff on the Assessment Master (RC Checklist) and the Reliability Coordinator Reliability Plan Reference Document. This work is complete and the reference document will be brought before the OC in June 2018 for approval. June 2018 - OC members discussed the contents of the Reference

Document and had concerns about actions for Reliability Plans that

were deemed inadequate or lacking. The OC assigned the ORS to revise

the Reference Document to include a process for OC communication to

NERC/Regions and Certification Teams, where applicable, in cases

where ORS members raised concerns with RC Reliability Plans that

remained unresolved. Include language regarding cases where the RC

plan was not brought to the ORS for endorsement for either a new RC

or an RC went beyond the three year review of the plan per the

Reference Document.

September 2016 Meeting Action Items OC meeting

and item number


1609-05 ORS Update the Guideline for Approving Regional and Reliability Coordinator Reliability Plans

March 2018

September 2016 – The OC approved an ORS recommendation to update the Guideline for Approving Regional and Reliability Coordinator Reliability Plans. December 2016 - Dr. James Merlo discussed the ORS motion made in September to reinstitute some sort of oversight of the RC plans (original action item 1606-01). NERC supports oversight of the RC plans since they require coordination and collaboration. NERC is supportive of a guideline change as it relates to oversight of RC plans and the ORS is pursuing such a revision under this action item.

In Progress On June agenda




June 2017– The ORS developed a Reliability Coordinator Plan Reference Document and is requesting OC Comments on the document. The ORS will revise the document based on comments received and bring a request to the OC at its September meeting to post the documents for a 45-day industry comment period. September 2017 – The OC requested that the ORS coordinate development / approval of the guideline with the RC Checklist that is being developed by NERC Staff. March 2018 – The ORS has coordinated with NERC staff on the Assessment Master (RC Checklist) and the Reliability Coordinator Reliability Plan Reference Document. This work is complete and the reference document will be brought before the OC in June 2018 for approval. June 2018 - OC members discussed the contents of the Reference Document and had concerns about actions for Reliability Plans that were deemed inadequate or lacking. The OC assigned the ORS to revise the Reference Document to include a process for OC communication to NERC/Regions and Certification Teams, where applicable, in cases where ORS members raised concerns with RC Reliability Plans that remained unresolved. Include language regarding cases where the RC plan was not brought to the ORS for endorsement for either a new RC or an RC went beyond the three year review of the plan per the Reference Document.

December 2016 Meeting Action Items OC meeting

and item number


1612-02 Dave Souder, John

Stephens, Dan Woodfin, Durgesh Manjure,

Methods for Establishing IROLS Task Force (MEITF)

December 2017

December 2016 - The MEITF Scope document was approved by the OC and volunteers were assigned to participate on the Task Force. March 2017 – A revised scope document was approved and an update on TF activities was presented at the joint OC/PC meeting.

In Progress On September

Agenda for approval




Nathan Schweighart

June 2017 – The team continues development of a Reliability Guideline. December 2017 – OC endorsed proposed Framework and related definitions. The documents are to be sent to the standard drafting team for their consideration. The OC also authorized posting the draft IROL Reliability Guideline for a 45-day comment period. March 2018 – The MEITF received 300 sets of comments on the Reliability Guideline and is reviewing the comments for inclusion in the guideline. The team is also considering revisions to the IROL framework to more closely align with the definition of Reliable Operation. The MEITF is performing a risk assessment that includes a survey to provide an inventory of existing IROLs and an assessment of impacts to existing IROLs for any proposed changes to IROL framework. June 2018 - Ryan Quint provided an update on the MEITF. He reported that the TF has been working on revising the framework based on comments received. They are revisiting the technical aspects of IROL framework and coordinating with the standard drafting team. They are working on standards for IROL that they believe FERC will support, pros/cons of the frameworks and quantitative and qualitative analysis of the frameworks. They are finalizing a white paper that lays out the competing frameworks with recommendation for path forward. The team is working through the comments on the guideline and making conforming revisions to the document which they plan to bring the guideline to OC for approval in September. The next meeting is in July. With completion of framework and guideline, the MEITF will have completed their tasks.

1612-03 Doug Peterchuck (lead), Doug

Hils, Alan Bern,

Saad Malik, Paul Johnson,

Michele

Real-time Assessments Task Force

September 2017

December 2016 – EAS Chair Hamdar noted that certain standards require perform of a Real-time Assessment. The EAS has concerns regarding these requirements when an entity loses their EMS capability. The OC appointed a task force to: • Discuss how Real-time Assessments are completed when there

is a loss of EMS • Investigate the compliance and reliability concerns • Develop any necessary guidance

In Progress Closed




Rheault and Chris Pilong

June 2017 – The RTATF submitted proposed guidance to the OC for approval. The approval was obtained via e-mail ballot and the Implementation guidance was submitted on May 8, 2017 to NERC for approval. NERC and Regional Entity staff have provided feedback on the guidance for OC consideration. The RTATF is assessing the comments and will make appropriate revisions to the guidance. December 2017 – The OC approved the guidance for submittal to the ERO as implementation guidance. March 2018 – The guidance was submitted to NERC for endorsement. Concerns were noted by two Regional Entities and NERC staff is working to resolve these concerns. June 2018 – Chair Peterchuck reported that the guidance was approved by NERC as compliance guidance.

December 2017 Meeting Action Items OC meeting

and item number


1712-01 OC Executive Committee

March 2018

December 2017 – The OC approved six Reliability Guidelines and Reference Documents at the December meeting. The NERC OC Executive Committee is to determine how this outreach will be achieved for these documents as well as going forward. March 2018 – The OC Executive Committee recommended forming a team to develop a formal roll-out process (see action item 1803-01)

closed

March 2018 Meeting Action Items OC meeting

and item number





1803-01 Sidney Jackson,

Doug Peterchuck,

James Fletcher,

Dick Pursley and Alan

Bern

Reliability Guideline and Reference Document outreach formalization

December 2018

March 2018 – The team was formed to develop a formal roll-out process for new or revised Reliability Guidelines and Reference Documents. June 2018 -– The team developed a draft procedure and communication form for use in disseminating the appropriate information through the appropriate communications channels. The team suggests including the procedure as Appendix 4 of the OC Charter. The OC consensus was to include this in the OC Charter. The team will continue development.

In progress On September

agenda for approval

1803-02 David Zwergel (lead), JT

Thompson, Greg Darnell and James

Fletcher

OC Strategic Plan Review September 2018

March 2018 - Chair Linke committed to the NERC BOT that the OC would review its strategic plan and reference it back to NERC strategic plan to ensure alignment. This review to be completed by the September 2018 OC meeting. June 2018 - Vice Chair Zwergel reported on that the review team believes the OC and ERO plans are fully aligned but the team suggested a few revisions to the OC Strategic Plan to address emergent issues as follows: 1. There is an opportunity to make clarifying changes to improve the plan without making substantive changes. 2. There is an opportunity to enhance the plan by adding metrics. 3. With the rapidly changing resource portfolio, including increasing Distributed Energy Resources (DERs), the team recommends the OC reviews progress on and consider being more proactive in achieving Goal – OC 1.

In Progress Closed

1803-03 Chair Linke (lead),

Executive Committee members

Standards Efficiency Review April 2018 March 2018 - Standards Efficiency Review – The OC has the opportunity to provide requirement grades to NERC for the standards efficiency review. The Executive Committee and subcommittee leadership will work with Chair Linke to develop

Completed in April

2018 Closed




and subcommittee leadership

the grading for this review. Chair Linke will send out the documents to begin the process. Grades are due April 16, 2018. June 2018 – Chair Linke informed the OC that the OC input was provide to NERC on April 12, 2018. This item is now closed.

1803-04 ORS TOP-001-4, Requirements R10.3 and 10.6

June 2018 March 2018 – EAS Chair Hydzik noted that for R10.3, the TOP needs non-BES facility information and status for its TOP Area and for R10.6, the TOP needs non-BES facility information outside its TOP Area as identified by the TOP. The ORS will review the development history of these requirements to determine the intent of this language and determine a course of action to address such as developing Compliance Guidance or a Reliability Guideline. June 2018 - At OC request, the ORS examined the “non-BES” language in requirements in TOP-001-4 (R 10.3 and 10.6). The group feels that the requirements are intended to address cases where non-BES facilities are being evaluated as possible BES facilities through the BES Exception process. This rationale for the requirement was highlighted in FERC Order 817 (November 19, 2015). The new requirements provide a “stop-gap” that ensures monitoring during the assessment period. ORS recommends that no further compliance guidance is required and that the action item be closed out. Chair Linke agreed and closed the action item.

In ProgressClosed

1803-05 EAS TOP-001-4, Requirements R20 and R21

September 2018

March 2018 - The EAS will review R20 and R21 as requested to clarify “redundant and diversely routed” language as well as testing requirements. June 2018 – The EAS is working to develop guidance for these requirements.

In Progress

1803-06 RTATF

TOP-010 and IRO-018 requirements about data quality

September 2018

March 2018 – The RTATF will develop documentation (Compliance Guidance or similar) to address RTA quality as

In Progress




identified in TOP-010, R3 and the associated IRO-018 requirement. June 2018 -– The RTA Guidance developed by the RTATF was accepted by the ERO in May, 2018. The RTATF will re-form and add members to now begin working on this action item.

1803-07 David Zwergel

(lead), Todd Lucas,

Michelle Rheault, Jeff

Harrison, James

Fletcher, Allen

Schriver, and Tony

Jankowski

Resiliency Framework June 2018 March 2018 - The RISC is requesting that the OC provide their views on how BPS resilience is currently being addressed within the scope of their committee’s responsibilities and recommend any additional activities they believe should be undertaken. This will include a review of the draft Resiliency Framework. Comments are due on or before March 28, 2018. June 2018 – Comments from the OC were submitted on March 27, 2018. No further action is required.

Completed March 27, 2018 Closed