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Quarterly Commission Briefing Q1 2021
Powering our way of life.
Power Production
Our People Driving Strong
Performance
Fulfilling Our MissionChampions of Safety … Guardians of Power
• Purpose: Provide safe, secure, economical, reliable and compliant power generation under the Priest Rapid Project Federal Energy Regulatory Commission (FERC) License Project No. 2114 while supporting the Wanapum relationship.
• Goal: Execute the aforementioned tasks while championing a culture of safety and operational excellence with continuous focus on the guiding values of safety, innovation, service, teamwork, respect, integrity, and heritage.
Acronym ListOne Playbook
• PP – Power Production
• HPI – Human Performance Improvement
• PRREIP – Priest Rapids Right Embankment Improvement Project
• JHA – Job Hazard Analysis
• WMC – Wanapum Maintenance Center
• ICL – Incident Criticality Level
• PR – Priest Rapids
• WAN – Wanapum
• PRP – Priest Rapids Project
2021 Q1 Business ReportContinuous Improvement
Key Operational Metrics
• Safety Execution
• Plant Performance
• Budget Analysis
Short & Long Term Focus
• Maximo Update
• Capital Projects
• 5 Year Strategic Planning
Team & Next Quarter
• Personnel
• 2021 Q2 Forecast
Safety PerformanceTargeting Zero Harm
Data as of 3/29/2021
2021 Jan Feb Mar Q1 Total
Close Calls 1 2 2 5
JSR's 24 24 30 78
Mobile 0 1 1 2
Injuries 0 1 1 2
Recordables 0 0 0 0
2020 Total
Close Calls 37
JSR's 248
Mobile 8
Injuries 18
Recordables 5
COVID ResponseProtecting Critical Employees & Assets
The Challenge – Keep important work going and employee COVID exposures down
• Plant work scaled up in fall (high maintenance load time)
• PR Sequestration December 2-17
• Plants entered ICL 1 (Critical) December 2
• Plants returned to ICL 2 (Severe) January 13
• Antigen testing full time use January 27
• Everyone entering the plants
• Admin functions – continue working from home
88.5 88.5
83.4 83.4 83.4
90.0
95.094.0
65.0 65.0 65.0
90.0
60
65
70
75
80
85
90
95
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Availability Estimate vs Actual
Estimate PR Estimate Wan Estimate PRP Actual PRP Target PRP
Plant Performance - 2020
Exceeding Target
COVID Effects
P08 Delay
Exceeding Target
Plant Performance - 2020
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Project Forced Outage Factor
Goal <.43% Actual YTD Percentage
Plant Performance - 2021
Exceeding Target
86.0
84.0 84.0
87.5 87.5
92.0
94.6
93.0
65.0 65.0 65.0
91.8
60
65
70
75
80
85
90
95
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Availability Estimate vs Actual
Estimate PR Estimate Wan Estimate PRP Target PRP Actual PRP
Exceeding Target
Plant Performance - 2021
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Project Forced Outage Factor
Goal <.40% Actual YTD Percentage
Asset ManagementReinvigorating our Asset Value Focus
• Separating Asset Management function from Engineering
• New department, new manager
• Program based on Institute for Asset Management standards
• Focus: Delivering best value while balancing performance, cost and risk
• Partnering with Power Delivery on approach, structure
• Next steps
• Hire Manager, Asset Management Program
• Complete Asset Management Policy
• Begin Asset Management Plans
Capital Project UpdateInvesting in the Future
Priest Rapids Right Embankment Improvement Project
• FERC review of EA & issue LA – Complete
• Construction Start – June 2021
• Wanapum Unit Upgrades
• W04 Generator/Controls upgrade – Complete
• PR Unit Rehab
• P02 Inspection & Repair – Complete
• P04 – In progress
• Wan Powerhouse Roof – Delayed; completion 7/31/21
• Station Service Upgrades – exp. Start 7/1/21
PersonnelMatching Company Needs with Employee Skills
License Compliance and Lands Services
• Shannon Lowry, Jerri Mickle, Sheryl Dotson
• Expanded/adjusted roles
Engineering
• Nate Manning – pursuing new opportunity at Tacoma Power
• Backfill being pursued
Asset Management
• New position – advertised currently
2021 Q2 ForecastStaying Focused on Safety & Efficiency
• Strategic Initiatives
• Establish Asset Management Department
• Communicate 5 year strategic plan
• Complete Leader Workload Assessment
• Improve
• Stable safety processes
• Ability to plan and schedule work
• Use of data to drive decision making
• Greater visibility on use of craft resources
Continue Efforts at Managing COVID-19 Effects
Powering our way of life.
Grant PUD Commission Meeting – April 13, 2021
License Compliance & Lands Services
2021 Q2 Business Report
Powering our way of life.
Departmental Purpose and Goal• In alignment with Grant PUD’s safety, financial, and compliance goals, the License Compliance &
Lands Services Department is responsible for the protection of Grant PUD’s natural resources through implementation of the Priest Rapids Project license, management of Grant PUD’s lands and waters within the Project Boundary, and in providing company-wide real property, permitting, and geographic information system (GIS) services.
2021 Q1 Business Review • Safety• Recordable incidents = 0• Non-recordable incidents = 0• Safety meeting attendance = 100%• Job Briefs = 12• Job Site Reviews = 4
• Regulatory Review• FERC filings by Grant PUD = 2• Filings by third-parties = 6• FERC approvals/orders/notices = 4• Summary of filings:
• Vantage restroom complaints/responses• Request by Kittitas County to amend RRMP
to include Riverstone Marina and expanded parking area as Project uses
• FERC approval of West Cove Dock non-project use of project lands
2021 Q1 Business Activities • Lands Services and Permitting Support
• Wholesale Fiber and Power Delivery – Land and easement acquisitions, permitting, property appraisals, etc., for current and outyear projects
• Power Production – Easement acquisitions, agency agreements, and permitting for Priest Rapids Right Embankment Stabilization project
• Internal Services – property assessments/appraisals and lease negotiations
• Succession planning • Geographic Information Systems (GIS) Services
• Power Production – dam safety monitoring program and signage inventory, PR Right Embankment mapping/data requests, Environmental Affairs field monitoring apps
• Wholesale Fiber – Customer Service fiber service points interactive map
2021 Q1 Business Activities
•Shoreline Management • Planning for Vantage marina removal
• Review/consultation for Columbia Cliffs and Sunland dock proposals
• Shoreline weed spraying activities
• Sunland tree removal, debris clean-up
• Ongoing encroachment monitoring
• Doebler ag lease extension – Consultation package development
2021 Q1 Business Activities• Parks and Recreation
• Crescent Bar maintenance building safety upgrades, signage installation, golf course fencing
• 2021 crew interviews (3 seasonal workers, 1 technician, 4 park aides)
• 2021 recreation monitoring plan
• Security coordination
2021 Q2 Business Activities• Ensure business continuity by prioritizing real
estate/GIS support of Power Production/Power Delivery/Wholesale Fiber projects
• Resolve existing shoreline encroachments and continue monitoring for new ones
• Interview and hire new Lands Specialist to support Power Delivery projects
2021 Q2 Business Activities• Complete Wanapum Upper Boat Launch
float replacement
• Crescent Bar maintenance building fencing
• Planning for recreation season 2021• Seasonal staff onboarding and training• Security planning and coordination• Developing visitor surveys• Considering requests for special events (fishing
derby, fireworks, etc.) and Crescent Bar concessions
• Meeting expectations for budgeting and expense tracking and forecasting Wanapum Upper Boat
Launch Float Replacement
2021 Q1 Forecast• Safety Goals
• Non-recordable incidents = 0• Recordable incidents = 0• Safety meeting attendance =
100%• Regulatory Outlook
• Anticipated FERC filings = 1• Anticipated FERC approvals = 0
Any regulatory threats or risks =none known/anticipated
Notes:
Questions?
Powering our way of life.
April 13, 2021
Enterprise Risk Management Update
Team Structure
Insurance & Project Risk Management(Brianna St. Marie)
Operational Risk Management(Leah Knopp)
Quantitative Risk Management
(Bryndon Ecklund)
Enterprise Risk Management Team(Paul Dietz)
Damage to District Claims
Management(Tina Sisich)
Enterprise Risk Management
Mission: The Enterprise Risk Management (ERM) group promotes greater efficiency and alignment across Grant County Public Utility District by forming resilient financial outcomes and enhancing the organization’s access to capital through identifying, measuring, and recommending the disposition of beneficial and harmful risks throughout the District’s operations.
Vision: Grant County Public Utility District endeavors to develop peer-leading risk management by integrating the principles of Enterprise Risk Management (ERM) into the culture and decision making of its business functions. ERM promotes the success and enhance the accountability of Grant County Public Utility District by incorporating risk assessment into its strategic objectives.
First Quarter Successes
Our updated ERM roll-out has begun with help from our OCM group
Our communication plan is in full swing and continuing through April
Training phase has started and will continue through June
We have had several successful collaborations with our risk owners throughout the quarter.
The ERM “Word on the Street”
“We manage and operate an inherently risky business.”
“How well we manage our risks is reflected in our customer’s rates and our strategic metrics.” “We systematically measure our inherent
risks and formally connect them to specific risk mitigations.”
“Our business units do a good job managing our risks – and there is always room for improvement.”
A systematic approach to risk management will reveal where our weaknesses lie.
• Risk data from each business unit are incorporated into our Risk Register – these represent our company’s inherent risks
• Risk mitigation documents such as policies, procedures, and other tools such as check lists are identified and tied to the business units’ risks – these represent our mitigation intentions
• The remaining residual risks are estimated for each business unit.
• Finally, cross business unit risks (risks held in common) are estimated
DRIVERS OF RISK MANAGEMENT:
Risks and Uncertainties
Energy Risk Management
We are developing our reporting capabilities• Utilizing cloud computing and reporting abilities to streamline Market Portfolio and Risk
Model (MPRM) valuations.
• Expanding MPRM reporting capabilities to meet the needs of our stakeholders
We are providing Grant with portfolio modeling support• Provided modeling support for renewal of our upcoming 10% slice deal
• Continue providing analytical support for Grant’s Turbine Upgrade Analysis
We are developing our Model Roster and our Critical Input and Assumptions Register (CIAR)
• Utilizing SharePoint to maintain list of models used Enterprise-Wide for continuity throughout the District
• Collection of model data and critical inputs will begin in Q2 2021 after framework has been finalized
Energy Portfolio
Front – Mid – Back Office
Insurance Update
2021-2022 Insurance Renewal• Staff is beginning the renewal process for the 2021-22 insurance year and will be
interacting with our business units over the next three quarters.
2021-2022 Insurance Strategy Development• Contract language review
• Enterprise Risk Management roll-out services from Beecher Carlson
• Actuarial Training to predict Insurance Loss
• Continue developing our collaborative relationship with PRP employees forinsurance loss prevention
COVID-19 Modeling
• Extensive ongoing modeling has been occurring since March 6th 2020 and will continue as the crisis evolves
• Participation in Incident Management Team and Executive Briefing Team
• Providing modeling for testing and vaccine effectiveness in reducing transmission risk
• Participation in Systems Analysis Task Force
• Participation in Business Continuity Team
• Developing processes for tracking FEMA related costs
• Reviewing the effects of COVID-19 on expected financial results
Near-Term Look Forward
• Execute Enterprise Risk Management policy implementation plan
• Singles and doubles over upcoming quarter:
• ERM communication roll-out continued
• Formal risk conversations with primary risk owners via focus groups
• Perform Key Risk Assessments
• Develop Key Risk Indicators
dashboard and Business Unit
Scorecards
• Update GCPUD’s Risk Register
Medium-Term Strategic Plan
• Manage Enterprise Risk Management policy implementation plan
• Provide resources to risk owners to enable growth of risk understanding, influence risk ownership behavior, and promote mitigation of risks through establishment of risk controls.
• Develop and extend our risk assessments and reporting using Logic Manager
• Develop and leverage strong ties between Enterprise Risk Management and GCPUD’s Risk Owners
• Further develop our Market & Portfolio Risk Model (MPRM) communication and reporting capabilities
Long-Term Strategic Vision
• Risk – The effect of risk and uncertainty on objectives
• Provide Stable and Predictable Long-Term Rates
• Maintain a Strong Financial Position
• Operate Responsibly and Safely
• Risk Management - Coordinated activities intended to direct and control GCPUD’s risk
• Manage and maintain risk management policies, framework, and processes consistent with ISO 31000:2018 standards
• Provide Enterprise Risk Management care and feeding
• Continually review risk management policies and procedures and develop enhancements to meet our changing risk environment
Powering our way of life.
Powering our way of life.
Gene Austin
Compliance Manager
Reliability ComplianceApril 13, 2021
Agenda
˗ GCPD Reliability Council˗ FERC – NERC – WECC- FERC Orders- Information Security Triad- NERC CIP Reliability Standards- Potential Non-Compliance Status
˗ Open Enforcement Actions
˗ Quarterly Business Review
Reliability Organization
CIP Program LeadO & PStandard Owners/SMEs
Manager Compliance ProgramPrimary Compliance Contract
Gene Austin
CIP Standard Owners/SMEs
Reliability Council
Engineering – PP, PD
Operations – PP, PD
Craft & Technical Shops
Cyber Security
Physical Security
Network Operations
System Support; EMS, GMS, EACM, PACS
ServiceDesk
HR, Training
Procurement
Regulatory Specialist – Karla Weaver
Regulatory Specialist – Amy Jones
Regulatory Specialist – Nikkee Hebdon
Chief Compliance Officer (CFO)– Jeff Bishop*
CIP Senior Manager (COO) – Richard Wallen*
Primary Compliance Contract (Chair) – Gene Austin*
Chief Customer Officer – Dave Churchman
Power Production, Managing Director – Ty Ehrman
Power Delivery, Managing Director – Jeff Grizzel
Chief Technology Officer – Derin Bluhm
Reliability Compliance Program Manager
Gene Austin
Reliability Council Reliability CouncilNERC Required Positions*
The Chief Compliance Officer has overall responsibility for NERC Compliance
The CIP Senior Manager, the sr. executive with responsibility for Compliance with CIP Standards
The Reliability Compliance Department implements the direction of the Reliability Council and provides the framework to ensure the District complies with all Reliability Standards
Reliability Council Members
Reliability Council – Charter
The Reliability Council provides the leadership, guidance, and direction for the Reliability Program.
Through its work, the Council establishes program expectations, and governs the organization to meet or exceed compliance with the Reliability Standards.
Council Agenda – March 26th
RELIABILITY COUNCIL AGENDA
˗ Council Charter ˗ Reliability Compliance Dept.˗ Compliance Governance ˗ Compliance Oversight Plan˗ FAC-008-3, Facility Ratings Program ˗ Physical Security Initiatives˗ Open Enforcement Actions˗ 2021 RC Workplan
Chief Compliance Officer (CFO) Jeff Bishop*
CIP Senior Manager (COO) – Richard Wallen*
Primary Compliance Contract – Gene Austin*
Chief Customer Officer – Dave Churchman
Chief Technology Officer – Derin Bluhm
Power Production, Managing Director – Ty Ehrman
Power Delivery, Managing Director – Jeff Grizzel
Reliability Council* NERC Required Positions
Blackout – 1965 https://www.youtube.com/watch?v=sLT4eQajhkw
August 14, 2003https://www.youtube.com/watch?v=imEp6IDYsAY
Energy Policy Act 2005 Aug. 8, 2005
The Act (EPAct 2005) added Section 215 to the Federal Power Act (1935)
Electric Reliability and Infrastructure
The Act significantly augmented the FERC’s electricity authorities to govern the reliability of the BPS– Congress granted FERC authority to oversee mandatory electric reliability standards to govern
the nation’s electric grid, and – Established a framework for the Electric Reliability Organization (ERO) to administer the
establishment, approval, and enforcement of mandatory reliability standards
FERC Order 672
FERC Order 672
On February 3, 2006, the Commission issued Order No. 672, which implements newly-added section 215 and provides specific processes for – the certification of an entity as the ERO, – the development and approval of mandatory Reliability Standards, and – the compliance with and enforcement of approved Reliability Standards.
FERC Orders
FERC Order 693
Mandatory Reliability Standards for the Bulk-Power System (Issued March 16, 2007)
56 of the 83 Reliability Standards effective June 18, 2007
FERC Order 706
Mandatory Reliability Standards for Critical Infrastructure Protection. (Issued January 18, 2008)
8 Reliability Standards effective July 01, 2008
Information Security Triad
1. CONFIDENTIALITY – DATA SHOULD NOT BE ACCESSED OR READ
WITHOUT AUTHORIZATION
DATA CONFIDENTIALITY ENSURES THAT ONLY AUTHORIZED PARTIES HAVE
ACCESS TO THE INFORMATION
2. INTEGRITY – DATA SHOULD NOT BE MODIFIED OR COMPROMISED IN
ANYWAY
DATA INTEGRITY ASSURES THAT THE DATA REMAINS IN ITS INTENDED STATE
AND CAN ONLY BE EDITED BY AUTHORIZED PARTIES
3. AVAILABILITY – DATA SHOULD BE ACCESSIBLE UPON LEGITIMATE
REQUEST
DATA AVAILABILITY ENSURES THAT AUTHORIZED PARTIES HAVE UNIMPEDED
ACCESS TO DATA WHEN THEY NEED IT
NERC – CIP StandardsCritical Infrastructure Protection (FERC Order 706)
CIP-002-5.1a BES Cyber System Categorization
CIP-003-8 Security Management Controls
CIP-004-6 Personnel & Training
CIP-005-6 Electronic Security Perimeter(s)
CIP-006-6 Physical Security of BES Cyber Systems
CIP-007-6 System Security Management
CIP-008-6 Incident Reporting and Response Planning
CIP-009-6 Recovery Plans for BES Cyber Systems
CIP-010-3 Configuration Change Management and Vulnerability
Assessments
CIP-011-2 Information Protection
CIP-013-1 Supply Chain Risk Management
CIP-014-2 Physical Security
GCPD Operational Procedures
Physical Security
Perimeter
Electronic Security
Perimeter
Cyber Asset
BES Cyber Assets
– High Impact
– Medium Impact
– Low Impact
Compliance with
NERC-CIP Standards
‘Potential Non-Compliance’ Violations
8 Open PNC’s˗ 2 Audit Finding PNCs – 2020 (In review WECC)˗ 2 Self-Reported PNCs – 2020 (In review WECC)- 4 Self-Reported PNCs – 2019 (In review WECC)
8 ‘PNC’ Violations
Strategic Plan Objective 6 – Operate Responsibly
FERC / NERC / WECC – Electric Reliability Compliance
* Currently 8 NERC “Open Enforcement Actions’
– 2 Audit Finding PNCs in 2020 (Q3)
– 2 self-reported PNCs in 2020 (Q2)
– 4 self-reported PNCs in 2019
Quarterly Budget Review – YTD February 2021
Variance Explanations Here:
$5,859 'Other Labor' variance due to 2020 Consultant Invoice received/ paid in Jan/Feb 2021
$9,675 'Purchased Services' variance due to 2020 'PLP Cash Out' distributed in 2021
