Reliability Issues Steering Committee (RISC)

September 21, 2016

RELIABILITY | ACCOUNTABILITY2

Strategic & Operational Planning

Reliability Issues Steering Committee Report

Reliability Leadership Summit/

Evaluation of Historical and Emerging Trends

Pulse Interviews with select Industry Leaders

RELIABILITY | ACCOUNTABILITY3

Strategic & Operational Planning

Reliability Issues Steering Committee Report

Reliability Leadership Summit/

Evaluation of Historical and Emerging Trends

Pulse Interviews with select Industry Leaders

Board & EMG

Strategic Sessions

FERC Technical

Conference

MRC Policy Input

ERO Enterprise

Survey

RELIABILITY | ACCOUNTABILITY4

Strategic & Operational Planning

Reliability Issues Steering Committee Report

Reliability Leadership Summit/

Evaluation of Historical and Emerging Trends

ERO Enterprise Strategic Plan

Enterprise& Corporate

Metrics

Pulse Interviews with select Industry Leaders

Business Plan and Budget

Board & EMG

Strategic Sessions

FERC Technical

Conference

MRC Policy Input

ERO Enterprise

Survey

RELIABILITY | ACCOUNTABILITY5

• Consolidates: Strategic goals and contributing activities for the next three years Metrics

• Long-term strategic review included in RISC report and profiles• Provide linkages among these items and risk profiles

ERO Enterprise Strategic Plan

RELIABILITY | ACCOUNTABILITY6

• Key Inputs Leadership Summit Pulse Point Interviews FERC Technical Conference

• Assessment of Risk Profiles High Moderate Low

Risk Evaluation

RELIABILITY | ACCOUNTABILITY7

• Three risk priorities developed: High risks are evolving, with impact and mitigation less clear, requiring

more attention to understand and mitigate Moderate risks represent a large potential impacts, with industry

consensus on necessary mitigations Low risks do not mean impact is small, rather the profiles are understood

with clearly identifiable mitigation steps.

• Industry must remain vigilant in addressing Moderate and Low risks to prevent these profiles from being escalated higher

Risk Priority Process

RELIABILITY | ACCOUNTABILITY8

• Changing Resource Mix• Bulk-Power System (BPS) Planning• Resource Adequacy and Performance• Asset Management and Maintenance• Human Performance and Skilled Workforce• Loss of Situational Awareness• Extreme Natural Events• Physical Security Vulnerabilities• Cybersecurity Vulnerabilities

2016 Risk Profiles

RELIABILITY | ACCOUNTABILITY9

• High Risk Profiles Cybersecurity Vulnerabilities Changing Resource Mix BPS Planning Resource Adequacy

• Moderate Risk Profiles Loss of Situational Awareness Physical Security Vulnerabilities Extreme Natural Events

• Low Risk Profiles Asset Management and Maintenance Human Performance and Skilled Workforce

Risk Priorities

RELIABILITY | ACCOUNTABILITY10

RISC’s Proposed 2016 Risk Profiles

RELIABILITY | ACCOUNTABILITY11

• October 2016 Policy input on RISC report

• November 2016 Report presented to NERC Board of Trustees

• March 2017 Leadership Summit

Timeline

RELIABILITY | ACCOUNTABILITY12

#1: Changing Resource Mix

• Highlighted Recommendations: Continue interconnection-wide technical studies Inform policy makers on reliability effects and interconnection

requirements for new resource mix Expand technical collaboration on Essential Reliability Services (ERS) Continue independent technical assessments of reliability impacts from

regulations Develop long-term strategies

RELIABILITY | ACCOUNTABILITY13

• Highlighted Recommendations: Make more accurate dynamic models available Identify the information needed from distributed energy resources Develop guidelines and best practices for system and electro-magnetic

models Expand development of interconnection-wide models Continue to assess if standards sufficiently address ERS Improve load forecasting, generator modeling, and coordination between

BPS and distributed energy resources

#2: Bulk-Power System Planning

RELIABILITY | ACCOUNTABILITY14

• Highlighted Recommendations Improve modeling and probabilistic methods for evaluating resources Assess and mitigate single points of disruption (e.g., fuel contingencies) Assess resource retirements and the impacts on ERS Improve load forecasting, generator modeling, and coordination with

distribution system planners/operators Develop measures beyond reserve margins

#3: Resource Adequacy and Performance

RELIABILITY | ACCOUNTABILITY15

• Highlighted Recommendations Increase use of NERC’s Alert program Improve data gathering and dissemination for equipment failure modes Continue webinars on lessons learned, maintenance, and seasonal

preparedness Develop guidelines on current protection and control standards Coordinate on condition monitoring, failure prevention, spare sharing, and

recovery Support power transformer reserve program Support recovery of upgrade and maintenance costs for reliability

#4: Asset Management and Maintenance

RELIABILITY | ACCOUNTABILITY16

#5: Human Performance and Skilled Workforce

• Highlighted Recommendations Expand communications from Human Performance (HP) groups and

support NERC HP conference Identify extent of skills gaps and address gaps Promote use of NERC cause codes Explore and develop near-miss database Develop and implement sustainable process for HP best practice analysis

and dissemination

RELIABILITY | ACCOUNTABILITY17

#6: Loss of Situational Awareness

• Highlighted Recommendations Develop new measures beyond reserve margins Develop real-time notifications of interconnection anomalies Continue root cause or common mode failure analysis Identify type and frequency of information needed from distributed

resources in real-time Develop real-time indicators of interconnection health

RELIABILITY | ACCOUNTABILITY18

#7: Extreme Natural Events

• Highlighted Recommendations Complete implementation of Geomagnetic Disturbance standards and begin

geomagnetic induced currents analysis Expand information sharing analysis centers (ISAC) communications Study multiple simultaneous limitations on natural gas delivery Promote existing and new efforts on spare equipment Identify and promote specific resiliency best practices

RELIABILITY | ACCOUNTABILITY19

#8: Physical Security Vulnerabilities

• Highlighted Recommendations Continue implementation of Physical Security standard Expand ISAC communications Assess physical attack scenarios on midstream and interstate pipelines Promote existing and new efforts on spare equipment Expand exercises to include more facilities and industries Create formal process to address vulnerabilities

RELIABILITY | ACCOUNTABILITY20

#9: Cybersecurity Vulnerabilities

• Highlighted Recommendations Address FERC Critical Infrastructure Protection directives including supply

chain Create formal process to address threats and vulnerabilities Remain vigilant in information sharing and communications (internally,

with different ISACs, cybersecurity risk information sharing programs, agencies, etc.)

Encourage the development of a peer review process Foster a culture of cyber awareness and safety Develop metrics to trend attacks and threats

RELIABILITY | ACCOUNTABILITY21