Agenda Standards Committee Meeting March 11, 2015 | 8:00 a.m. to 1:00 p.m. Eastern

NERC Headquarters 3353 Peachtree Road North Tower, Suite 600 Atlanta, GA 30326

Dial-in: 1-866-740-1260 | Meeting Code: 4458510 | Security Code: 031115

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NERC Antitrust Compliance Guidelines and Public Announcement*

Introductions and Chair’s Remarks

Agenda Items

1. Review of Agenda – (Approve) (1 minute)

2. Consent Agenda – (Approve) (1 minute)

a. February 18, 2015 Standards Committee Conference Call Minutes* – (Approve)

3. Upcoming Standards Projects or Issues – (Update) (V. Agnew)

a. 2015 Projects Annual Calendar (R. Parsons, V. Agnew) (10 minutes)

b. Three-Month Outlook* (V. Agnew, B. Murphy) (10 minutes)

4. Projects Under Development – (Review)

a. Project Tracking Spreadsheet (R. Parsons, V. Agnew) (5 minutes)

b. Projected Posting Schedule (B. Nutter) (5 minutes)

5. Elect Executive Committee Members* – (Elect) (B. Murphy, S. Cavote) (10 minutes)

6. Field Testing Language in Standards Processes Manual* – (Endorse) (B. Murphy) (10 minutes)

7. Project 2010-14.2.2 Phase 2 Balancing Authority Reliability-based Controls StandardAuthorization Request and Drafting Team Nomination Solicitation* – (Authorize) (E. Prince)(10 minutes)

8. Project 2015-04 Alignment of Terms Standard Authorization Request* – (Authorize) (R. Stewart)(10 minutes)

Agenda - Standards Committee Meeting | March 11, 2015 2

9. Project 2015-06 Interconnection Reliability Operations and Coordination – Standard AuthorizationRequest and Drafting Team Nomination Solicitation* – (Authorize) (S. Cavote) (10 minutes)

10. Project 2007-17.4 PRC-005 Order No. 803 Directive – Standard Authorization Request and DraftingTeam Authorization* – (Authorize) (S. Cavote) (10 minutes)

11. 2014 NERC Standards Audit Proposed Action Items* – (Authorize) (V. Agnew) (15 minutes)

12. UVLS Quality Review Update – (Information) (E. Prince) (5 minutes)

13. Subcommittee Reports

a. Project Management and Oversight Subcommittee Update – (Update) (R. Parsons) (5 minutes)

b. Process Subcommittee Update* – (Update) (L. Lee) (5 minutes)

14. Communication Update and Activities* – (Update) (M. Huggins) (5 minutes)

15. Upcoming Standards Filings* – (Review) (A. Wills) (5 minutes)

16. Informational Items – (Enclosed)

a. SC Expectations*

b. 2015 Meeting Dates and Locations*

c. 2015 Standards Committee Roster*

d. Highlights of Parliamentary Procedure*

17. Adjourn

*Background materials included.

Antitrust Compliance Guidelines

I. General It is NERC’s policy and practice to obey the antitrust laws and to avoid all conduct that unreasonably restrains competition. This policy requires the avoidance of any conduct that violates, or that might appear to violate, the antitrust laws. Among other things, the antitrust laws forbid any agreement between or among competitors regarding prices, availability of service, product design, terms of sale, division of markets, allocation of customers or any other activity that unreasonably restrains competition.

It is the responsibility of every NERC participant and employee who may in any way affect NERC’s compliance with the antitrust laws to carry out this commitment.

Antitrust laws are complex and subject to court interpretation that can vary over time and from one court to another. The purpose of these guidelines is to alert NERC participants and employees to potential antitrust problems and to set forth policies to be followed with respect to activities that may involve antitrust considerations. In some instances, the NERC policy contained in these guidelines is stricter than the applicable antitrust laws. Any NERC participant or employee who is uncertain about the legal ramifications of a particular course of conduct or who has doubts or concerns about whether NERC’s antitrust compliance policy is implicated in any situation should consult NERC’s General Counsel immediately.

II. Prohibited ActivitiesParticipants in NERC activities (including those of its committees and subgroups) should refrain from the following when acting in their capacity as participants in NERC activities (e.g., at NERC meetings, conference calls and in informal discussions):

• Discussions involving pricing information, especially margin (profit) and internal costinformation and participants’ expectations as to their future prices or internal costs.

• Discussions of a participant’s marketing strategies.

• Discussions regarding how customers and geographical areas are to be divided amongcompetitors.

• Discussions concerning the exclusion of competitors from markets.

• Discussions concerning boycotting or group refusals to deal with competitors, vendors orsuppliers.

NERC Antitrust Compliance Guidelines 2

• Any other matters that do not clearly fall within these guidelines should be reviewed withNERC’s General Counsel before being discussed.

III. Activities That Are PermittedFrom time to time decisions or actions of NERC (including those of its committees and subgroups) may have a negative impact on particular entities and thus in that sense adversely impact competition. Decisions and actions by NERC (including its committees and subgroups) should only be undertaken for the purpose of promoting and maintaining the reliability and adequacy of the bulk power system. If you do not have a legitimate purpose consistent with this objective for discussing a matter, please refrain from discussing the matter during NERC meetings and in other NERC-related communications.

You should also ensure that NERC procedures, including those set forth in NERC’s Certificate of Incorporation, Bylaws, and Rules of Procedure are followed in conducting NERC business.

In addition, all discussions in NERC meetings and other NERC-related communications should be within the scope of the mandate for or assignment to the particular NERC committee or subgroup, as well as within the scope of the published agenda for the meeting.

No decisions should be made nor any actions taken in NERC activities for the purpose of giving an industry participant or group of participants a competitive advantage over other participants. In particular, decisions with respect to setting, revising, or assessing compliance with NERC reliability standards should not be influenced by anti-competitive motivations.

Subject to the foregoing restrictions, participants in NERC activities may discuss:

• Reliability matters relating to the bulk power system, including operation and planning matterssuch as establishing or revising reliability standards, special operating procedures, operatingtransfer capabilities, and plans for new facilities.

• Matters relating to the impact of reliability standards for the bulk power system on electricitymarkets, and the impact of electricity market operations on the reliability of the bulk powersystem.

• Proposed filings or other communications with state or federal regulatory authorities or othergovernmental entities.

Matters relating to the internal governance, management and operation of NERC, such as nominations for vacant committee positions, budgeting and assessments, and employment matters; and procedural matters such as planning and scheduling meetings.

Public Announcements

REMINDER FOR USE AT BEGINNING OF MEETINGS AND CONFERENCE CALLS THAT HAVE BEEN PUBLICLY NOTICED AND ARE OPEN TO THE PUBLIC

For face-to-face meeting, with dial-in capability: Participants are reminded that this meeting is public. Notice of the meeting was posted on the NERC website and widely distributed. The notice included the number for dial-in participation. Participants should keep in mind that the audience may include members of the press and representatives of various governmental authorities, in addition to the expected participation by industry stakeholders.

August 10, 2010

Agenda Item 2a Standards Committee

March 11, 2015

DRAFT Meeting Minutes Standards Committee Meeting February 18, 2015 | 1:00 p.m. to 5:00 p.m. Eastern

Dial-in: 1-866-740-1260 | Meeting Code: 4458510 | Security Code: 021815

NERC Antitrust Compliance Guidelines and Public Announcement S. Cavote started the meeting, took attendance of Standards Committee (SC or the Committee) members, and determined that a quorum had been reached. The SC member attendance and proxy sheet is attached hereto as Attachment 1. S. Cavote also reviewed the NERC Antitrust Compliance Guidelines and made the Public Announcement.

Introductions and Chair’s Remarks Committee Chair B. Murphy provided opening remarks. He reminded everyone of conference call protocol and to use the chat feature to ask questions. He thanked D. Kiguel for raising the issue of the Standards Committee Executive Committee elections, and noted that two attempts had been made for nominees, but to date he had not received any nominations. B. Murphy expressed his intent to send another request since some members had indicated interest pending management approval. B. Murphy advised that he would soon send an announcement with the expectation of an election at the March Standards Committee meeting. Information regarding the steps to nominate will be included in the announcement.

V. Agnew also provided remarks to share the positive accolades the SC members and industry received at the recent Board meeting regarding getting the standards to steady-state. V. Agnew shared the schedule for this year at the meeting and noted the collaboration with PMOS to spread the postings out in order to not have an excessive amount of postings at one time. The Board recognized the hard work of the SC and wanted everyone on the call to be aware.

Agenda Items

1. Review of Agenda – (Approve)

-The Committee approved the agenda by unanimous consent.

2. Consent Agenda – (Approve)

a. December 9, 2014 Standards Committee Meeting Minutes – (Approve)

S. Rueckert moved to approve the December 9, 2015 SC Meeting Minutes. F. McElvain secondedthe motion. The motion read as follows:

Approve the December 9, 2015 SC Meeting Minutes.

Agenda Item 2aStandards Committee

March 11, 2015

F. McElvain noted that the minutes indicated his proxy Jack Henry was not present for the meeting when in fact he was there. B. Murphy and NERC staff committed to correcting the error.

-The Committee approved the motion to approve the December 9, 2015 SC Meeting Minutes with no objections or abstentions.

b. February 3, 2015 Standards Committee Conference Call Minutes – (Approve)

S. Rueckert moved to approve the February 3, 2015 SC Meeting Minutes. F. McElvain seconded the motion. The motion read as follows:

Approve the February 3, 2015 SC Meeting Minutes.

S. Rueckert noted that the minutes reflected in Item 3, Project 2015-03 Periodic Review of System Operating Limit Standards, showed Peak Reliability listed with eight functions but they are only registered as an RC. All other functions should be removed. B. Murphy and NERC staff committed to correcting the error.

-The Committee approved the motion to approve the December 9, 2015 SC Meeting Minutes with no objections or abstentions.

c. Location for June 2015 SC Meeting – (Approve)

- The Committee approved the motion to approve item 2c with no objections or abstentions.

3. Upcoming Standards Projects or Issues – (Update)

a. 2015 Projects Annual Calendar

R. Parsons reported that he participated in the February 2015 State of Standards webinar anddiscussed the project management calendar, its purpose, and the calendar color coding, andemphasized it was a planning tool and subject to change. The intent is not to make continualupdates, but rather use the calendar in its current form as a resource planning tool for a full year’soutlook. R. Parson’s concluded that he has received positive feedback on the calendar. There is anew link to the calendar on the left-hand navigation panel on the NERC Standards web page.

V. Agnew added that the calendar is a tool as requested by the industry to provide for enhancedunderstanding and management of standard projects.

C. Yeung asked if NERC had been communicating the calendar via links or in the weekly bulletin.M. Huggins confirmed that there is a link to the calendar in the standards section of the bulletin.

b. Three-Month Outlook

V. Agnew presented the three-month outlook noting that its purpose is to give the Committee anidea of the current NERC Standards workload. V. Agnew reviewed the upcoming projects, andindicated Project 2012-09 Implementation of IRO Review is set for March (not Project 2015-06 IRO

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 2

Periodic Review as shown on the slide). C. Yeung requested the status of PRC-027, specifically the expectation of work time required. V. Agnew remarked that there is no regulatory deadline, but it does have a key reliability risk issue. NERC is working with FERC, and the standard will probably be posted again in the near future.

4. Projects Under Development – (Review)

a. Project Tracking Spreadsheet

b. Projected Posting Schedule

V. Agnew reported on these topics and continued with clarification on PRC-027, noting that it isprojected for the August 2015 Board meeting. B. Murphy stated that PRC-027 should be reflectedon both the Project Tracking Spreadsheet and the Projected Posting Schedule, as with any otherproject, and, in particular, it was helpful to provide stakeholders with as much notice as possible ofthe posting date, given that its actual posting date no longer matches the planned date in theProject Tracking Spreadsheet. V. Agnew committed to working with the developer of PRC-027 toget an idea of when it will be posted.

5. SPM Section 11 Posting of Supporting References Linked to Reliability Standards

a. Far-End Relay Lesson Learned* – (Authorize)

R. Stewart provided a summary of the Far-End Relay Lesson Learned and what the action wouldapprove, if adopted.

J. Bussman questioned the process regarding the outcome if entities did not agree after acomment period has concluded, and then it becomes guidance.

B. Murphy remarked that the intent was to have stakeholders work as a team with NERC, and thatif there was significant opposition, the SC would take it into consideration before voting ifcomments were not addressed.

B. Lawson commented that section 11 had been used for security guidelines. The SC’s role is toauthorize posting of a guidance document after stakeholders had a chance to review. Heexplained that as long that has been demonstrated, the SC is not charged to review technicalcontent. Anyone can develop supporting documents. All comments are considered and then thedocument is finalized.

B. Li noted that in the past, reference documents were posted for industry comment. The SC had aprocess for posting reference documents.

H. Nalley provided information on the process for developing lessons learned.

A. Gallo motioned to approve the action item as written with revised language of the disclaimer toinclude, “nor provide an official interpretation of a requirement.” R. Parsons seconded themotion. The motion read as follows:

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 3

Authorize the posting of the document titled “Lesson Learned CIP Version 5 Transition Program CIP-002-5.1 Requirement R1: Impact Rating of Relays (Far-End Relay)” (the Far-End Relay Lesson Learned) as a supporting reference linked to approved Reliability Standard CIP-002-5.1 pursuant to Section 11 of the Standard Processes Manual (SPM) with revised language of the disclaimer to include, “nor provide an official interpretation of a requirement.” .

-The Committee approved the motion with no objections or abstentions.

b. Generation Segmentation Lesson Learned* – (Authorize)

H. Nalley provided an overview of the Generation Segmentation Lesson Learned. S. Rueckertmoved to approve the action item as written. R. Crissman seconded the motion. The motion readas follows:

Authorize the posting of the document titled “Lesson Learned CIP Version 5 Transition Program CIP-002-5.1 Requirement R1: Impact Rating of Generation Resource Shared BES Cyber Systems” (the Generation Segmentation Lesson Learned) as a supporting reference linked to approved Reliability Standard CIP-002-5.1 pursuant to Section 11 of the Standard Processes Manual (SPM) with revised language of the disclaimer to include, “nor provide an official interpretation of a requirement.”

-The Committee approved the motion with no objections or abstentions.

6. Revised Standard Posting Request – Project 2014-04 Physical Security Reliability Standard(s)* –(Authorize)

R. Crissman moved the action item as written, which was to authorize the posting of Project 2014-04Physical Security Reliability Standard CIP-014-2, (and associated implementation plan and VRF/VSLs)for a 45-day formal comment and concurrent initial ballot period, with ballot pool formation duringthe first 30 days and initial ballot and non-binding poll during the last 10 days of the comment period.L. Oberski seconded the motion.

R. Crissman remarked that the standard addresses the need for modification to reflect the FERC orderand posting for 45 days with concurrent ballot. F. McElvain expressed concern of a reliability omissionand his opposition on this item. B. Lawson supported the motion, noting that the standards draftingteam addressed the directive by removing the word “widespread.”

-The Committee approved the motion with one objection from F. McElvain and no abstentions.

7. Drafting Team Nomination Solicitation – Project 2009-02 Real-time Reliability Monitoring andAnalysis Capabilities* – (Authorize)

D. Kiguel requested additional information on how many members were on the initial drafting teamand how many were needed to supplement the team.

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 4

P. Heidrich commented that it would be helpful to include in the announcement of the existing drafting team members: their company, segment representation, and function so that individuals would know if there was a potential for them to be selected or not. P. Heidrich also asked if the leadership team would be retained.

J. Bussman asked why there is a need to maintain any prior team members since it is a new team.

V. Agnew commented that NERC reached out to prior drafting team members for this project and asked who would like to continue.

Based on an apparent lack of clarity on the action item as drafted, B. Murphy suggested an amendment to the action item to ask previous members if they would like to be retained and if so, they would need to reapply for membership.

L. Lee moved to approve the amended action item as follows:

Authorize posting to solicit nominations for standard drafting team (SDT) members to draft a Standards Authorization Request (SAR) for Project 2009-02 Real-time Reliability Monitoring and Analysis Capabilities. This would require existing drafting team members to submit nominations to serve.

Ben seconded the motion.

-The Committee approved the amended motion with no objections or abstentions.

8. Revised Standard Posting Request – Project 2008-02.2 Phase 2 UVLS* – (Authorize)

R. Lawson moved to approve the amended action item as follows:

Authorize initial posting of Project 2008-02.2 Phase 2 Undervoltage Load Shedding (UVLS): Misoperations Reliability Standards PRC-004-5 (Protection System Misoperation Identification and Correction), PRC-010-2 (Undervoltage Load Shedding), associated implementation plans, and VRFs and VSLs for a formal 45-day comment period with ballot pool formation during the first 30 days and initial ballot and non-binding poll held during the last 10 days of the comment period.

R. Crissman seconded the motion.

-The Committee approved the amended motion with no objections or abstentions.

9. 2014 Standards Audit Report* – (Information)

M. Thomas of NERC Staff provided the methodology behind the audit and then presented the auditfindings. M. Thomas remarked how pleased she was with the audit results, which included onefinding of non-compliance and a series of recommendations.

V. Agnew reiterated M. Thomas’ comments on how well NERC did in the audit. V. Agnew recappedthe next steps resulting from the audit and referenced Item 9a Tracking Sheet for CCCRecommendations posted with the meeting agenda package. She indicated that NERC will report tothe SC on items 2, 5, 7 and 9 from the spreadsheet at the next meeting. In addition, regarding the

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 5

item of non-compliance, NERC will provide documented evidence for all non-binding polls going forward.

10. Subcommittee Reports

a. PMOS Update – (Update)

R. Parsons provided an update on PMOS. There was a conference call meeting last week and they went through expectations of individuals who volunteered and reviewed what that meant. Assignments were made to current projects with emphasis on the need for liaison relationships, the importance of the process, and getting work done at the front end.

R. Parsons noted the need to talk about pros and cons with issues and also report on best practices we see. Also, to celebrate the good work, setting the right practices for drafting documents for standards projects.

b. Process Subcommittee Update* – (Update)

L. Lee reported that there was a call on Friday with a small sub team group to look at the QRproposal. Once the proposal is ready it will go to the full SCPS and then to the SC. The QRproposal is the big focus at this time.

i. NERC Standards Balloting Software Update – (Update)

B. Nutter provided an update on the SBS system and indicated it went live this month. Registrations are continuing, and NERC has approximately 450 ballot body members registered to date. NERC is encouraging interested members to register now to avoid missing balloting opportunities in future projects.

P. Heidrich asked if the UVLS project would be balloted in the original system or the SBS. B. Nutter stated that both new projects were set to ballot in the original system. Discussion ensued and it was determined that Project 2014-04 Physical Security and Project 2008-02.2 UVLS would be commented and balloted in the SBS as the first projects in the new system.

ii. SCPC Membership Invitation* – (Information)

Looking at current initiatives, it was determined that additional help is needed to replace those individuals. L. Lee is going to work with NERC staff to send out solicitation for additional members and wanted to let SC members know in case there was an interest to assist on this committee. Keep your eyes open for an announcement coming soon.

V. Agnew mentioned that someone approached her to assist on the SCPS and she will forward the name.

11. Communication Updates and Activities – (Update)

M. Huggins provided a brief update.

12. Upcoming Standards Filings – (Review)

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 6

W. Edwards gave an update on recent filings and noted the PRC-005 FERC related directives.

13. Informational Items – (Enclosed)

a. SC Expectations

b. 2015 Meeting Dates and Locations

c. 2015 Standards Committee Roster

d. Highlights of Parliamentary Procedure

14. Adjourn

B. Murphy adjourned the meeting at 4:05 p.m. Eastern time.

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 7

Attachment 1

Segment and Term Representative Organization Proxy Present (Member or Proxy)

Chair 2014-15

Brian Murphy Manager, NERC Reliability Standards

NextEra Energy, Inc. Yes

Vice-Chair 2014-15

Frederick Plett Utility Analyst

Massachusetts Attorney General

Yes

Segment 1-2014-15 Laura Lee Manager of ERO Support and Event Analysis, System Operations

Duke Energy Yes

Segment 1-2015-16 Lou Oberski Managing Director, NERC Compliance Policy

Dominion Resources Services, Inc.

Yes

Segment 2-2014-15 Ben Li Consultant

Independent Electric System Operator

Yes

Segment 2-2015-16 Charles Yeung Executive Director Interregional Affairs

Southwest Power Pool Yes

Segment 3-2014-15 Ron Parsons General Manager of Transmission Interconnections and Operations

Alabama Power Company Yes

Segment 3-2015-16 John Bussman Manager, Reliability Compliance

Associated Electric Cooperative, Inc.

Yes

Segment 4-2014-15 Frank Gaffney Assistant General Manager of and Officer of Regulatory Compliance

Florida Municipal Power Authority

Yes

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 8

Segment 4-2015-16 Barry Lawson Associate Director, Power Delivery and Reliability

National Rural Electric Cooperative Association

Yes

Segment 5-2014-15 Randy Crissman Vice President – Technical Compliance

New York Power Authority Yes

Segment 5-2015-16 Colt Norrish Compliance Director

PacifiCorp Yes

Segment 6-2014-15 Andrew Gallo Director, Reliability Compliance

City of Austin dba Austin Energy

Yes

Segment 6-2015-16 Brenda Hampton Regulatory Policy

Energy Future Holdings – Luminant Energy Company LLC

Rick Terrill Yes

Segment 7-2014-15 Frank McElvain Senior Consulting Manager

Siemens Energy, Inc. Yes

Segment 7-2015-16 Michelle D'Antuono Manager, Energy

Occidental Energy Ventures Corp

Yes

Segment 8-2015 Open

Segment 8-2015-16 David Kiguel Independent Yes

Segment 9-2015 Open

Segment 9-2015-16 Open

Segment 10-2014-15 Guy Zito Assistant Vice President of Standards

Northeast Power Coordinating Council

Pete Heidrich

Yes

Segment 10-2015-16 Steve Rueckert Director of Standards

Western Electricity Coordinating Council

Yes

Meeting Minutes - Standards Committee Conference Call | February 18, 2015 9

Anticipated Standards Committee ActionsBrian Murphy, Standards Committee ChairValerie Agnew, Director of StandardsStandards Committee Conference CallMarch 11, 2015

Agenda Item 3bStandards Committee

March 11, 2015

RELIABILITY | ACCOUNTABILITY2

• March 2010-14.2.2 Phase 2 of Balancing Authority Reliability-based Controls

(BARC)o BAL-004 – Time Error Correction

2015-06 Interconnection Reliability Operations and Coordinationo IRO-006-EAST and IRO-009

• April None

• May None

Authorize Nomination Solicitations

RELIABILITY | ACCOUNTABILITY3

• March None

• April 2009-02 Real-time Reliability Monitoring and Analysis Capabilities 2010-14.2.2 Phase 2 of Balancing Authority Reliability-based Controls (BARC)

o BAL-004 – Time Error Correction 2015-06 Interconnection Reliability Operations and Coordination

o IRO-006 and IRO-009

• May None

Authorize Team Appointments

RELIABILITY | ACCOUNTABILITY4

• March 2007-17.4 PRC-005 FERC Order No. 803 Directive 2010-14.2.2 Phase 2 of Balancing Authority Reliability-based Controls (BARC)

o BAL-004 – Time Error Correction 2015-04 Alignment of Glossary Terms and Definitions Used in the Rules of

Procedure 2015-06 Interconnection Reliability Operations and Coordination

o IRO-006-EAST and IRO-009

• April 2010-04.1 MOD-031 FERC Order No. 804 Directives

• May 2009-02 Real-time Reliability Monitoring and Analysis Capabilities

Authorize SAR Postings

RELIABILITY | ACCOUNTABILITY5

• March None

• April 2007-06.2 Phase 2 of Protection System Coordination

o PRC-001/PRC-028

2010-14-2.1 Balancing Authority Reliability-based Controlo BAL-005 and BAL-006

Authorize Initial Posting

RELIABILITY | ACCOUNTABILITY6

• May 2007-17.4 PRC-005 FERC Order No. 803 Directive 2010-04.1 MOD-031 FERC Order No. 804 Directives 2010-05-3 Phase 3 of Protection Systems: RAS 2010-14.2.2 Phase 2 of Balancing Authority Reliability-based Controls (BARC)

o BAL-004 – Time Error Correction 2015-06 Interconnection Reliability Operations and Coordination

o IRO-006-EAST and IRO-009

Authorize Initial Posting (continued)

RELIABILITY | ACCOUNTABILITY7

Agenda Item 5 Standards Committee

March 11, 2015

Elect SCEC members

Action Conduct Standards Committee Executive Committee (SCEC) elections.

Background The SCEC elections will be conducted as stated in the protocols approved by the Standards Committee in its December 2014 meeting (attached), with the understanding that instead of an electronic vote, a paper ballot will be conducted because March is a face-to-face meeting. Electronic ballots will still be used for those SC members not in attendance.

Agenda Item 5a Standards Committee

March 11, 2015

Standards Committee Executive Committee Elections Approach

Action

Approve the following approach to elect the three at‐large Standards Committee Executive Committee (SCEC) members:

The Chair of the Standards Committee (SC) shall request, via email, no later than December 16, 2014, that any member of the 2015 SC who is interested in running for one of the three 2015 at‐large SCEC seats contact the SC Secretary no later than January 5, 2015 and provide a brief written statement on his or her interest in being elected to the SCEC. The SC Secretary shall provide the SC with the list of nominees and their statements no later than January 6, 2015. Given that the January SC meeting is not a face‐to‐face meeting, the SCEC at‐large election, including any run‐offs, will be conducted in the following manner:

At the start of the January 15, 2015 SC call, the SC Secretary will request that SC members provide their votes within the first hour of the call via email or other specified electronic means. If a run‐off election is needed, the SC Secretary will notify the SC during the call and request that SC members provide their votes via email or other specified electronic means. Results, including vote totals, will be announced before the meeting is adjourned and included in the SC meeting minutes.

Each SC member may cast a vote for up to three of the SCEC nominees. The three nominees with the highest number of votes and a simple majority of the SC members’ votes will be elected as at‐large members of the SCEC. The SC Chair and Vice Chair have the right to vote in the election. If necessary, run‐off elections will be conducted until three nominees have each received a simple majority vote of SC members.

Background

Section 7 of the SC Charter states in part: “The Committee shall have an Executive Committee that consists of five members, including the Committee officers and three at‐large members, elected by the Standards Committee. The three at‐large members cannot represent the same industry segments that the Committee officers previously represented, nor can two of the at‐large members be from the same segment. The Executive Committee will be elected annually at the January SC meeting.”

The above process was adopted by the SC for the 2014 SCEC elections, with modifications

because the SC held a January face-to-face meeting.

Agenda Item 6 Standards Committee

March 11, 2015

Field Testing Language in Standards Processes Manual

Action Endorse developing draft revisions to Standards Committee (SC) Charter Section 10 and Section 6 of the Standards Processes Manual (SPM) to provide NERC’s technical committees with additional technical oversight of field tests associated with a Standards Authorization Request (SAR) and standards projects.

Background The SC Charter currently states in Section 10:

When authorizing any field test that modifies or supports NERC Reliability Standard requirement development, it is strongly recommended that the Committee, with input from the applicable drafting team, first receive acceptance from the relevant technical committee (e.g., Operating Committee, Planning Committee, or Critical Infrastructure Protection Committee) that the field test would not be expected to adversely impact BES reliability. Further, if BES reliability is or is expected to be adversely impacted during the course of any field test, the relevant technical committee may request the Standards Committee to suspend the field test until such time that the situation can be reviewed by the relevant technical committee and, if necessary, the field test be modified by the relevant technical committee, as appropriate. When authorizing a drafting team to collect and analyze data or to conduct a field test of one or more requirements, the Committee may also request the assistance of the Compliance Monitoring and Enforcement Program.

This language matches the current intent of Section 6 of the Standards Processes Manual. Last year, then Vice Chair Scott Miller worked with the Operating Committee on whether additional changes were desired to the Charter or SPM. At its November 2014 meeting, the Operating Committee indicated that it desired that Section 6 of the Standards Processes Manual, and the associated language in the SC Charter, be revised to provide the NERC technical committees with additional oversight and authority over the technical aspects of a field test.

Therefore, if the SC endorses the above action, attached for your review and comment is a draft clean and redline of SPM Section 6. It is requested that any comments be submitted to the SC Chair by March 25, 2015. The draft that results from your comments will be provided to the leadership of the Operating Committee, Planning Committee and Critical Infrastructure Protection Committee with the hope that their committees will agree to the draft revisions to Section 6. Based on this schedule, it is also hoped that draft revisions to Section 6 of the SPM and associated changes to Section 10 of the SC charter will be provided to the SC for approval at the May or June SC meeting. If the SC approves Section 6 SPM changes in May or June, the Section 6 SPM changes will be included by NERC Staff for stakeholder comment and ballot at the next opportunity for Rules of Procedure changes. The Section 10 SC Charter changes would be brought to the Board for approval at the same time the changes to Section 6 to the SPM are presented for approval to the Board.

Agenda Item 6a Standards Committee

March 11, 2015 Section 6

While most drafting teams can develop their Reliability Standards without the need to conduct any field tests and without the need to collect and analyze data, some Reliability Standard development efforts may require field tests to analyze data and validate concepts in the development of Reliability Standards.

There are two types of field tests – tests of concepts and tests of requirements.

6.1: Field Tests and Data Analysis for Validation of Concepts during SAR stage Field tests or collection and analysis of data to validate concepts that support the development of Requirements should be conducted before the SAR for a project is finalized. If an entity wants to test a technical concept in support of a proposal for a new or revised Reliability Standard, the entity must either: (i) work with one of NERC’s technical committees in collecting and analyzing the data or in conducting the field test, or (ii) submit a SAR with a request to collect and analyze data or conduct a field test to validate the concept prior to developing a new or revised Reliability Standard. The request to collect and analyze data or conduct a field test must include, at a minimum, either the data collection and analysis or field test plan, the implementation schedule, and an expectation for periodic updates of the analysis of the results. Prior to the SAR sponsor(s) or SAR drafting team conducting a field test or collection of data, it must receive approval from the Standards Committee. The Standards Committee shall only approve the initiation of the field test or the collection of data if the applicable NERC technical committee has reviewed and approved the requested field test or collection of data. The applicable NERC technical committee can also condition its approval, including requirements for periodic updates or modifications. The Chair of the Standards Committee shall coordinate the approval process between the applicable NERC technical committee and the Standards Committee. During the conducting of the field test or collection of data, if the applicable NERC technical committee informs the Standards Committee that the field test or collection of data must be stopped or modified, the Standards Committee, with the assistance of NERC staff, shall have the field test or collection of data stopped or modified, as applicable. Prior to the field test or collection of data being restarted after it has been stopped at the direction of a NERC technical committee, the SAR sponsor or SAR drafting team must resubmit the field test or collection of data request and receive approval from the Standards Committee and applicable NERC technical committee as if it were a new request. If after approval the SAR sponsor(s) or drafting team fails to collect and analyze the data or conducted the field test in the time period stated in the SAR, the Standards Committee may either reject the SAR or solicit support from NERC’s technical committees or others in the industry. The results of the data collection and analysis or field test shall then be used to determine whether to add the SAR to the list of Standard projects in the Reliability Standard Development Plan.

If a SAR drafting team finds that it needs to collect and analyze data or conduct a field test of a concept that was not identified in the SAR, it must revise the SAR to include the field test or collection of data and receive approval from the Standards Committee prior to conducting a field test or collection of data. The Standards Committee shall only approve the initiation of the field test or collection of data if the applicable NERC technical committee has reviewed and approved the requested field test or collection of data. The applicable NERC technical committee can also condition its approval, including requirements for periodic updates or modifications. The Chair of the Standards Committee shall coordinate the approval process between the applicable NERC technical committee and the Standards Committee. During the conducting of the field test or collection of data, if the applicable NERC technical committee informs the Standards Committee that the field test or collection of data must be stopped or modified, the Standards Committee, with the assistance of NERC staff, shall have the field trial or collection of data stopped or modified, as applicable. Prior to the field test or collection of data being restarted after it has been stopped at the direction of a NERC technical committee, the SAR drafting team must resubmit the

field test or collection of data request and receive approval from the Standards Committee and applicable NERC technical committee as if it were a new request. 6.2: Field Tests and Data Analysis for Validation of Requirements

If a standard drafting team wants to conduct a field test or collect and analyze data to validate its proposed Requirements in a Reliability Standard, the team must receive approval from the Standards Committee prior to conducting the field test or collection of data.25 The Standards Committee shall only approve the initiation of the field test or collection of data if the applicable NERC technical committee has reviewed and approved the request field test or collection of data. The applicable NERC technical committee can also condition its approval, including requirements for periodic updates or modifications. The Chair of the Standards Committee shall coordinate the approval process between the applicable NERC technical committee and the Standards Committee. During the conducting of the field test or collection of data, if the applicable NERC technical committee informs the Standards Committee that the field test or collection of data must be stopped or modified, the Standards Committee, with the assistance of NERC staff, shall have the field trial or collection of data stopped or modified, as applicable. Prior to the field test or collection of data being restarted after it has been stopped at the direction of a NERC technical committee, the standards drafting team must resubmit the field test or collection of data request and receive approval from the Standards Committee and applicable NERC technical committee as if it were a new request. Drafting teams are not required to collect and analyze data or to conduct a field test to validate a Reliability Standard. Any request should include at a minimum the data collection and analysis or field test plan, the implementation schedule, and an expectation for periodic updates of the results. All data collection and analysis and all field tests shall be concluded and the results incorporated into the Reliability Standard Requirements as necessary before proceeding to the formal comment period and subsequent balloting. 25 The Process for Approving Data Collection and Analysis and Field Tests Associated with a Reliability Standard is posted on the Reliability Standards Resources web page.

6.3: Communication and Coordination for All Types of Field Tests and Data Analyses If conducting a field test (concepts or Requirements) or data collection and analysis could render Registered Entities incapable of complying with the current Requirements of an approved Reliability Standard that is undergoing revision, the drafting team shall request a temporary waiver from compliance to those Requirements for entities participating in the field test. Upon request, the Standards Committee shall seek from NERC approval for the waiver from the Compliance Monitoring and Enforcement Program prior to the approval of the field test or data collection and analysis. Once a plan for a field test or a plan for data collection and analysis is approved, the NERC Reliability Standards Staff shall, under the direction of the Standards Committee, coordinate the implementation of the field test or data collection and analysis and shall provide official notice to the participants in the field test or data collection of any applicable temporary waiver to compliance with specific noted Requirements. The drafting team conducting the field test shall provide periodic updates (no less than quarterly) on the progress of the field tests or data collection and analysis to the Standards Committee and the applicable NERC technical committee. The Standards Committee has the right to curtail a field test or data collection and analysis that is not implemented in accordance with the approved plan. The field test plan or data collection and analysis plan, its approval, its participants, and all reports and results shall be publicly posted for stakeholder review on the Reliability Standards web page.

If a drafting team conducts or participates in a field test or in data collection and analysis (of concepts or Requirements), it shall provide a final report that identifies the results and how those results will be used.

Agenda Item 6b Standards Committee

March 11, 2015 Section 6

While most drafting teams can develop their Reliability Standards without the need to conduct any field tests and without the need to collect and analyze data, some Reliability Standard development efforts may require field tests to analyze data and validate concepts in the development of Reliability Standards.

There are two types of field tests – tests of concepts and tests of requirements.

6.1: Field Tests and Data Analysis for Validation of Concepts during SAR stage Field tests or collection and analysis of data to validate concepts that support the development of Requirements should be conducted before the SAR for a project is finalized. If an entity wants to test a technical concept in support of a proposal for a new or revised Reliability Standard, the entity should must either: (i) work with one of NERC’s technical committees in collecting and analyzing the data or in conducting the field test, or (ii) the entity should submit a SAR with a request to collect and analyze data or conduct a field test to validate the concept prior to developing a new or revised Reliability Standard. The request to collect and analyze data or conduct a field test must should include, at a minimum, either the data collection and analysis or field test plan, the implementation schedule, and an expectation for periodic updates of the analysis of the results. Prior to the SAR sponsor(s) or SAR drafting team conducting a field test or collection of data, it must receive approval from the Standards Committee. The Standards Committee shall only approve the initiation of the field test or the collection of data if the applicable NERC technical committee has reviewed and approved the requested field test or collection of data. The applicable NERC technical committee can also condition its approval, including requirements for periodic updates or modifications. The Chair of the Standards Committee shall coordinate the approval process between the applicable NERC technical committee and the Standards Committee. During the conducting of the field test or collection of data, if the applicable NERC technical committee informs the Standards Committee that the field test or collection of data must be stopped or modified, the Standards Committee, with the assistance of NERC staff, shall have the field test or collection of data stopped or modified, as applicable. Prior to the field test or collection of data being restarted after it has been stopped at the direction of a NERC technical committee, the SAR sponsor or SAR drafting team must resubmit the field test or collection of data request and receive approval from the Standards Committee and applicable NERC technical committee as if it were a new request. If after approval the SAR sponsor(s) or drafting team fails to has not collected and analyzed the data or conducted the field test in the time period stated in the SAR, the Standards Committee may either reject the SAR or solicit support from NERC’s technical committees or others in the industry. The results of the data collection and analysis or field test shall then be used to determine whether to add the SAR to the list of Standard projects in the Reliability Standard Development Plan.

If a SAR drafting team finds that it needs to collect and analyze data or conduct a field test of a concept that was not identified in when the SAR, it must revise the SAR to include the field test or collection of data and receive approval from the Standards Committee prior to conducting a field test or collection of data. The Standards Committee shall only approve the initiation of the field test or collection of data if the applicable NERC technical committee has reviewed and approved the requested field test or collection of data. The applicable NERC technical committee can also condition its approval, including requirements for periodic updates or modifications. The Chair of the Standards Committee shall coordinate the approval process between the applicable NERC technical committee and the Standards Committee. During the conducting of the field test or collection of data, if the applicable NERC technical committee informs the Standards Committee that the field test or collection of data must be stopped or modified, the Standards Committee, with the assistance of NERC staff, shall have the field trial or collection of data stopped or modified, as applicable. Prior to the field test or collection of data being

restarted after it has been stopped at the direction of a NERC technical committee, the SAR drafting team must resubmit the field test or collection of data request and receive approval from the Standards Committee and applicable NERC technical committee as if it were a new request. was accepted, then the Standards Committee may direct the team to withdraw the SAR until the data has been collected and analyzed or until the field test has been conducted and the industry has had an opportunity to review the results for the impact on the scope of the proposed project. 6.2: Field Tests and Data Analysis for Validation of Requirements

If a standard drafting team wants to conduct a field test or collect and analyze data to validate its proposed Requirements in a Reliability Standard, the team must receive approval from the Standards Committee prior to conducting the field test or collection of data. shall first obtain approval from the Standards Committee.25 The Standards Committee shall only approve the initiation of the field test or collection of data if the applicable NERC technical committee has reviewed and approved the request field test or collection of data. The applicable NERC technical committee can also condition its approval, including requirements for periodic updates or modifications. The Chair of the Standards Committee shall coordinate the approval process between the applicable NERC technical committee and the Standards Committee. During the conducting of the field test or collection of data, if the applicable NERC technical committee informs the Standards Committee that the field test or collection of data must be stopped or modified, the Standards Committee, with the assistance of NERC staff, shall have the field trial or collection of data stopped or modified, as applicable. Prior to the field test or collection of data being restarted after it has been stopped at the direction of a NERC technical committee, the standards drafting team must resubmit the field test or collection of data request and receive approval from the Standards Committee and applicable NERC technical committee as if it were a new request. Drafting teams are not required to collect and analyze data or to conduct a field test to validate a Reliability Standard.

Any The request should include at a minimum the data collection and analysis or field test plan, the implementation schedule, and an expectation for periodic updates of the results. When authorizing a drafting team to collect and analyze data or to conduct a field test of one or more Requirements, the Standards Committee may request inputs on technical matters related from NERC’s technical committees or industry experts, and may request the assistance of the Compliance Monitoring and Enforcement Program. All data collection and analysis and all field tests shall be concluded and the results incorporated into the Reliability Standard Requirements as necessary before proceeding to the formal comment period and subsequent balloting.

25 The Process for Approving Data Collection and Analysis and Field Tests Associated with a Reliability Standard is posted on the Reliability Standards Resources web page.

6.3: Communication and Coordination for All Types of Field Tests and Data Analyses If the conducting of a field test (concepts or Requirements) or data collection and analysis could render Registered Entities incapable of complying with the current Requirements of an approved Reliability Standard that is undergoing revision, the drafting team shall request a temporary waiver from compliance to those Requirements for entities participating in the field test. Upon request, the Standards Committee shall seek from NERC approval for the waiver from the Compliance Monitoring and Enforcement Program prior to the approval of the field test or data collection and analysis.

Once a plan for a field test or a plan for data collection and analysis is approved, the NERC Reliability Standards Staff shall, under the direction of the Standards Committee, coordinate the implementation of the field test or data collection and analysis and shall provide official notice to the participants in the field test or data collection of any applicable temporary waiver to compliance with specific noted Requirements. The drafting team conducting the field test shall provide periodic updates (no less than quarterly) on the progress of the field tests or data collection and analysis to the Standards Committee and the applicable NERC technical committee. The Standards Committee has the right to curtail a field test or data collection and analysis that is not implemented in accordance with the approved plan. The field test plan or data collection and analysis plan, its approval, its participants, and all reports and results shall be publicly posted for stakeholder review on the Reliability Standards web page. If a drafting team conducts or participates in a field test or in data collection and analysis (of concepts or Requirements), it shall provide a final report that identifies the results and how those results will be used.

Agenda Item 6c Standards Committee

March 11, 2015

Draft Changes to the SC Charter associated with providing NERC technical committees with additional oversight of field tests and data collection

Section 5. Officers

4. Duties of the Chair.In addition to the duties, rights and privileges discussed elsewhere in this document, the Committee chair:

a. Presides over and provides general supervision of Committee and Executive Committeeactivities and meetings.

b. Presides over all Committee meetings, including the nature and length of discussion,recognition of speakers, motions and voting.

c. In concert with NERC Staff, schedules Committee meetings.

d. Reviews all substitute or proxy representatives.

e. Acts as Committee spokesperson at forums within and outside of NERC.

f. Reports Committee activities to the NERC Board of Trustees and attends Board of Trusteesmeetings.

g. Reports all views and objections when reporting on items brought to the Committee.

h. Performs other duties as directed by the NERC Board of Trustees.

i. During the conducting of the field test or collection of data, if the applicable NERC technicalcommittee informs the Standards Committee that the field test or collection of data must bestopped or modified and further indicates that time is of the essences in stopping the fieldtest or collection of data, the Chair of the Standards Committee, with the assistance of NERCstaff, shall have the field test or collection of data stopped or modified.

Section 10 is proposed to be deleted.

Agenda Item 6d Standards Committee

March 11, 2015

Draft Changes to the SC Charter associated with providing NERC technical committees with additional oversight of field tests and data collection

Section 5. Officers

4. Duties of the Chair.In addition to the duties, rights and privileges discussed elsewhere in this document, the Committee chair:

a. Presides over and provides general supervision of Committee and Executive Committeeactivities and meetings.

b. Presides over all Committee meetings, including the nature and length of discussion,recognition of speakers, motions and voting.

c. In concert with NERC Staff, schedules Committee meetings.

d. Reviews all substitute or proxy representatives.

e. Acts as Committee spokesperson at forums within and outside of NERC.

f. Reports Committee activities to the NERC Board of Trustees and attends Board of Trusteesmeetings.

g. Reports all views and objections when reporting on items brought to the Committee.

h. Performs other duties as directed by the NERC Board of Trustees.

i. During the conducting of the field test or collection of data, if the applicable NERC technicalcommittee informs the Standards Committee that the field test or collection of data must bestopped or modified and further indicates that time is of the essences in stopping the fieldtest or collection of data, the Chair of the Standards Committee, with the assistance of NERCstaff, shall have the field test or collection of data stopped or modified.

10. Field Tests.When authorizing any field test that modifies or supports NERC Reliability Standard requirement development, it is strongly recommended that the Committee, with input from the applicable drafting team, first receive acceptance from the relevant technical committee (e.g., Operating Committee, Planning Committee, or Critical Infrastructure Protection Committee) that the field test would not be expected to adversely impact BES reliability. Further, if BES reliability is or is expected to be adversely impacted during the course of any field test, the relevant technical committee may request the Standards Committee to suspend the field test until such time that the situation can be reviewed by the relevant technical committee and, if necessary, the field test be modified by the relevant technical committee, as appropriate. When authorizing a drafting team to collect and analyze data or to conduct a field test of one or more requirements, the Committee may also request the assistance of the Compliance Monitoring and Enforcement Program.

Agenda Item 7 Standards Committee

March 11, 2015

Project 2010-14.2.2 Phase 2 of Balancing Authority Reliability-based Controls Standard Authorization Request and Drafting Team Nomination Solicitation

Action

Accept the Standard Authorization Request (SAR) prepared by the BAL periodic review team (PRT) as superseding the original SAR, and authorize posting the SAR for formal comment.

Authorize posting for nominations to a BAL standard drafting team (SDT) for the new Project 2010-14.2.2 Implementation of BAL-004 Periodic Review Recommendations.

Background

Project 2010-14 was approved by the NERC Standards Committee as a merger of Project 2007- 05 Balancing Authority Controls and Project 2007-18 Reliability-based Control on July 28, 2010. The NERC Standards Committee also approved the separation of Project 2010-14 into two phases, moving Phase 1 into formal development on July 13, 2011. Subsequently, in June 2013, the Standards Committee approved retiring the previously-scoped Project 2010-14.2, which lacked sufficient focus for a drafting team to proceed, in order to allow a periodic review to take place first. On October 17, 2013 the NERC Standards Committee appointed ten subject matter experts to serve on the BAL PRT. As part of its review, the BAL PRT referenced background documents, including 1) the currently-enforceable BAL-004-0 standard; 2) outstanding issues and directives pertaining to the BAL-004-0 standard; 3) the Independent Experts Report; and 4) Paragraph 81 criteria. Based on this review, the BAL PRT developed a set of recommendations for retiring BAL-004-0. The recommendations of the BAL PRT are in the attached Periodic Review Templates and SAR. This project will address directives from FERC Order 693, and retires requirements that meet the criteria developed in the Paragraph 81 project. There were two directives associated with BAL-004-0. The first directive was to develop measures and compliance elements for the standard. The second directive was to review the effect that the standard had on inadvertent interchange. The PRT has developed responses to these directives detailing why no action will be necessary. BAL-004-0, in its entirety, should be retired under Paragraph 81 criteria. BAL-004-0 satisfies Criterion A of the Paragraph 81 criteria because it does not support the reliable operation of the BES. BAL-004-0 also satisfies Criterion B6. Time Error Correction (TEC) is a commercial practice that relates to the quality of power delivered, not a practice that supports reliability. In addition, BAL-004-0 also satisfies Criteria C4, C5, and C7. With respect to C4, the 2014 Actively Monitored List does not include BAL-004-0 for either self-certification or audits. With respect to C5, there is a possible negative impact on NERC’s published and posted reliability principles. For instance, slowing the clock for a manual TEC in the Eastern Interconnection brings the Interconnection slightly closer to the first step of Underfrequency Load Shedding, which contradicts Principle 2, which states that “The frequency and voltage of interconnected

bulk power systems shall be controlled within defined limits through the balancing of real and reactive power supply and demand.” Finally, with respect to Criterion C7, BAL-004-0 does not promote results- or performance-based Reliability Standards.

Agenda Item 7a Standards Committee

March 11, 2015

Standards Authorization Request Form

NERC welcomes suggestions to improve the reliability of the Bulk-Power System throughimproved Reliability Standards. Please use this

Standard Authorization Request (SAR) form to submit your request to propose a new Reliability Standard, a revision to a Reliability Standard, or the retirement of a Reliability Standard.

Request to propose a new Reliability Standard, a revision to a Reliability Standard, or the retirement of a Reliability Standard

Title of Reliability Standard Proposed for Retirement:

BAL-004-0 – Time Error Correction

Date Submitted: Draft Posted for Stakeholder Review 05/XX/14

SAR Requester Information:

Name: The Balancing Authority Reliability-based Controls Phase 2 (BARC 2) Periodic Review Team (Roster)

Organization: N/A

Telephone: N/A E-mail: N/A

SAR Type (check as many as applicable):

New Reliability Standard

Revision to existing Reliability Standards

Retirement of existing Reliability Standard

Urgent Action

SAR Information

Industry Need (What is the industry problem this request is trying to solve?):

NERC is dedicated to developing and maintaining Reliability Standards that focus the industry’s attention on those issues that support the reliability of the Bulk-Power System. As explained in the Independent Expert Review Project report, the industry and FERC have expressed concern that a significant number of NERC requirements do not contribute materially to the reliability of the Bulk-

When completed, please email this form to:

sarcomm@nerc.com.

Agenda Item 7aStandards Committee

March 11, 2015

SAR Information

Power System. When NERC maintains requirements that do not contribute materially to reliability, registered entities may lose focus on the most critical matters that can adversely impact reliability and resources are diverted from higher priority activities. Standards that do not contribute to reliability should be retired.

Purpose or Goal (How does this request propose to address the problem described above?):

This request proposes to retire a standard that does not contribute materially to reliability.

Identify the objectives of the proposed Reliability Standard’s requirements (What specific reliability deliverables are required to achieve the goal?):

N/A – This SAR is proposing a retirement to a Reliability Standard.

Brief Description (Provide a paragraph that describes the scope of this Reliability Standard action.):

The practice of manual Time Error Correction, which is required under BAL-004-0, is a commercial service that does not support reliability. It should be retired.

Detailed Description (Provide a description of the proposed project with sufficient details for the standard drafting team to execute the SAR. Also provide a justification for the development or revision of the Reliability Standard, including an assessment of the reliability and market interface impacts of implementing or not implementing the Reliability Standard action.):

As explained in further detail in the paper “Time Error Correction and Reliability White Paper,” the practice of manual Time Error Correction does not support reliability. The current form of manual Time Error Correction is a legacy commercial practice that originated in the 1920s as a commercial service. It was never related to the reliability of the electric grid. In continuing to require the practice of manual Time Error Correction, NERC is diverting industry resources from higher priority activities that impact reliability. The standard drafting team should proceed with the retirement of BAL-004-0 and the elimination of the practice of manual Time Error Correction, developing a careful implementation plan that ensures a safe and coordinated elimination of the practice across each Interconnection.

Revised (11/28/2011) 2

Reliability Functions

The Reliability Standard applies to the following functions (check each one that applies):

Regional Reliability Organization

Conducts the regional activities related to planning and operations, and coordinates activities of Responsible Entities to secure the reliability of the Bulk Electric System within the region and adjacent regions.

Reliability Coordinator Responsible for the real-time operating reliability of its Reliability Coordinator Area in coordination with its neighboring Reliability Coordinator’s wide area view.

Balancing Authority Integrates resource plans ahead of time, and maintains load-interchange-resource balance within a Balancing Authority Area and supports Interconnection frequency in real time.

Interchange Authority Ensures communication of interchange transactions for reliability evaluation purposes and coordinates implementation of valid and balanced interchange schedules between Balancing Authority Areas.

Planning Coordinator Assesses the longer-term reliability of its Planning Coordinator Area.

Resource Planner Develops a >one year plan for the resource adequacy of its specific loads within a Planning Coordinator area.

Transmission Planner Develops a >one year plan for the reliability of the interconnected Bulk Electric System within its portion of the Planning Coordinator area.

Transmission Service Provider

Administers the transmission tariff and provides transmission services under applicable transmission service agreements (e.g., the pro forma tariff).

Transmission Owner Owns and maintains transmission facilities.

Transmission Operator

Ensures the real-time operating reliability of the transmission assets within a Transmission Operator Area.

Distribution Provider Delivers electrical energy to the End-use customer.

Generator Owner Owns and maintains generation facilities.

Generator Operator Operates generation unit(s) to provide real and reactive power.

Revised (11/28/2011) 3

Reliability Functions

Purchasing-Selling Entity

Purchases or sells energy, capacity, and necessary reliability-related services as required.

Market Operator Interface point for reliability functions with commercial functions.

Load-Serving Entity Secures energy and transmission service (and reliability-related services) to serve the End-use Customer.

Reliability and Market Interface Principles – N/A, as BAL-004-0 does not support any of the Reliability Principles.

Applicable Reliability Principles (check all that apply):

1. Interconnected bulk power systems shall be planned and operated in a coordinated mannerto perform reliably under normal and abnormal conditions as defined in the NERC ReliabilityStandards.

2. The frequency and voltage of interconnected bulk power systems shall be controlled withindefined limits through the balancing of real and reactive power supply and demand.

3. Information necessary for the planning and operation of interconnected bulk power systemsshall be made available to those entities responsible for planning and operating the systemsreliably.

4. Plans for emergency operation and system restoration of interconnected bulk power systemsshall be developed, coordinated, maintained and implemented.

5. Facilities for communication, monitoring and control shall be provided, used and maintainedfor the reliability of interconnected bulk power systems.

6. Personnel responsible for planning and operating interconnected bulk power systems shall betrained, qualified, and have the responsibility and authority to implement actions.

7. The security of the interconnected bulk power systems shall be assessed, monitored andmaintained on a wide area basis.

8. Bulk power systems shall be protected from malicious physical or cyber attacks.

Does the proposed Reliability Standard comply with all of the following Market Interface Principles? N/A

Enter

(yes/no)

1. A Reliability Standard shall not give any market participant an unfair competitiveadvantage.

2. A Reliability Standard shall neither mandate nor prohibit any specific marketstructure.

Revised (11/28/2011) 4

Reliability and Market Interface Principles – N/A, as BAL-004-0 does not support any of the Reliability Principles.

3. A Reliability Standard shall not preclude market solutions to achievingcompliance with that Reliability Standard.

4. A Reliability Standard shall not require the public disclosure of commerciallysensitive information. All market participants shall have equal opportunity toaccess commercially non-sensitive information that is required for compliancewith Reliability Standards.

Related Reliability Standards – N/A

Reliability Standard No.

Explanation

Related SARs – N/A

SAR ID Explanation

Regional Variances

Region Explanation

ERCOT

FRCC

MRO

NPCC

RFC

SERC

SPP

Revised (11/28/2011) 5

Regional Variances

WECC BAL-004-WECC-02 – Automatic Time Error Correction maintains Interconnection frequency and ensures that (automatic) Time Error Corrections and Primary Inadvertent Interchange paybacks are conducted in a manner that does not adversely affect the reliability of the Interconnection.

Revised (11/28/2011) 6

Agenda Item 8 Standards Committee

March 11, 2015

Project 2015-04 – Alignment of NERC Glossary of Terms and Definitions Used in the Rules of Procedure

Action Authorize the posting of a Standards Authorization Request (SAR) for 30-day formal comment in Project 2015-04 – Alignment of Terms.

Background Project 2015-04 was identified in the 2015-2017 Reliability Standards Development Plan as a new project for 2015. In January 2015, nominations were sought for drafting team members. On February 3, 2015, the SC approved the proposed recommendations of NERC for the 10-member drafting team. Thereafter, the drafting team members met on February 19-20, 2015 to develop the SAR, which is now before the Standards Committee (SC) for approval and authorization to post for a 30-day formal comment period.

As outlined in the SAR, the purpose of the project is to align the defined terms found in the NERC Glossary of Terms (Glossary) and Rules of Procedure (ROP); and, to provide recommendations to the SC and NERC regarding changes or improvements to the existing definition development process(es) to allow for future development of defined terms that are consistent and aligned. This project is necessary because currently there are defined terms that appear in both the NERC Glossary and ROP that are inconsistent in substance and form. This causes industry confusion and may lead to inconsistent interpretation or application of the meaning of a term. Consistent definitions will enhance reliability because the owners, users and operators of the BES along with the ERO Enterprise will have a better understanding of the terminology used in the NERC Reliability Standards and ROP.

Upon receiving authorization by the SC, the SAR will be posted for a 30-day formal comment period. Upon close of the 30-day comment period, the drafting team will review and respond to the comments received, and if necessary, make appropriate changes to the SAR.

Standards Authorization Request Form

NERC welcomes suggestions to improve the reliability of the bulk power system through improved Reliability Standards. Please use this form to submit your request to propose a new or a revision to a NERC Reliability Standard.

Request to propose a new or revision to Defined Term(s)

Title of Proposed Standard: Alignment of terms between the NERC Glossary of Terms and Rules of Procedure

Date Submitted: March 11, 2015

SAR Requester Information

Name: Project 2015-04 Alignment of Terms SAR drafting team

Organization: N/A

Telephone: 503-445-1074 (SAR DT chair)

404-446-2581 (NERC staff) Email: Alignment_of_Terms@nerc.com

SAR Type (Check as many as applicable)

New Standard

Revision to Existing Definition(s)

Withdrawal of Existing Standard

Urgent Action

SAR Information

Industry Need (What is the industry problem this request is trying to solve?):

There are defined terms that appear in both the NERC Glossary of Terms and Rules of Procedure (“cross-over terms”) that are inconsistent in substance and form. This causes industry confusion and may lead to inconsistent interpretation or application of the meaning of a term. Consistent definitions will enhance reliability because the owners, users and operators of the BES along with the ERO

When completed, please email this form to:

sarcomm@nerc.com

Agenda Item 8aStandards Committee

March 11, 2015

SAR Information

Enterprise will have a better understanding of the terminology used in the NERC Reliability Standards and Rules of Procedure.

Purpose or Goal (How does this request propose to address the problem described above?):

The purpose of this project is to align the defined terms found in the NERC Glossary of Terms (Glossary) and Rules of Procedure (ROP); and, provide recommendations to enhance the current process(es) to prevent future misalignment or inconsistencies in NERC defined terms.

Goal 1: For cross-over terms in the Glossary and ROP, identify differences and inconsistencies in the definition narrative and, where necessary, make revisions to align the terms. Proposed revisions to the Glossary will be undertaken through Section 5.0 of the Standard Processes Manual. Proposed revisions to the definitions included in the ROP will be undertaken through Section 1400 of the NERC ROP.

Goal 2: Assess the current process(es) in place for development and maintenance of defined terms, and provide recommendations to the Standards Committee (SC) and NERC regarding changes or improvements to the existing definition development process(es) to allow for future development of defined terms that are consistent and aligned.

Identify the Objectives (What specific reliability deliverables are required to achieve the goal?):

Project objectives:

1. For Goal 1: For existing cross-over terms that are inconsistent, evaluate whether changes are necessary to align the terms or if the differences are appropriate. This would include, but is not limited to, ensuring the content, substance, capitalization, formatting and other differences are reconciled. If changes are appropriate, propose revisions to the defined term(s) for industry approval.

2. For Goal 1: For cross-over definitions that contain inconsistencies or differences and that are currently under revision, board approved, or pending regulatory approval, evaluate whether changes are necessary to align the terms or if the differences are appropriate. If changes are appropriate, propose revisions to the defined term(s) for industry approval.

3. For Goal 2: Assess the current process(es) in place for development and maintenance of defined terms, and provide recommendations to the SC and NERC regarding changes or improvements

Standards Authorization Request Form 2

SAR Information

to the existing definition development process(es) to allow for future development of defined terms that are consistent and aligned.

Brief Description (Provide a paragraph that describes the scope of this standard action.)

The purpose of this project is to align the defined terms found in the Glossary and the ROP; and, provide recommendations to enhance the current process(es) to prevent future misalignment or inconsistencies in NERC defined terms. The project should address the inconsistency issues as a priority, and upon completion, develop recommendations to the Standards Committee (SC) and NERC.

Detailed Description (Provide a description of the proposed project with sufficient details for the standard drafting team to execute the SAR. Also provide a justification for the development or revisions, including an assessment of the reliability and market interface impacts of implementing or not implementing the standard action.)

The purpose of this project is to align the defined terms found in the Glossary and the ROP; and, provide recommendations to enhance the current process(es) to prevent future misalignment or inconsistencies in NERC defined terms.

For existing cross-over terms that are inconsistent, make revisions to the defined term(s) to ensure that the two terms are consistent. This would include, but is not limited to, ensuring the content, substance, capitalization, formatting and other differences are reconciled. For example, in the Glossary and ROP, both documents include a definition of “Net Energy for Load” or “NEL.” However, the two definitions are different in that the Glossary specifically references the Balancing Authority functional entity; whereas, the ROP definition does not specify the functional entity, but instead refers only generally to “others.” The project work should include an evaluation of both definitions and proposal of the revisions necessary to align the narrative(s). Additionally, a number of cross-over terms have differences in the capitalization of terms that are included in the narrative of the definition. Since capitalization means a term is defined, this results in inconsistent interpretations of the same defined term. For example, the term “Interconnected Operations Services” is defined in the same manner in both sources; however, the ROP narrative capitalizes the terms “Transmission Services” and “Reliable Operation,” while the Glossary does not. The project work should include an evaluation of both definitions and proposed revisions necessary to align the capitalization differences.

Standards Authorization Request Form 3

SAR Information

Also, the project work should include consideration of the differences in the cross-over terms that are currently under revision, board approved, or pending regulatory approval. For those differences identified, the project work should include an evaluation of whether changes are necessary to align the terms or if the differences are appropriate. For example, the Risk-Based Registration (RBR) initiative proposed changes to the ROP terms “Generator Owner” and “Generator Operator,” however, similar changes were not proposed for those defined terms in the Glossary. The RBR petition is currently pending before FERC; in the event FERC approves the proposed changes, an inconsistency will be introduced between the ROP and Glossary terms.

Reliability Functions

The Defined Term(s) will Apply to the Following Functions (check each one that applies):

Not Applicable.

Reliability Coordinator Responsible for the real-time operating reliability of its Reliability Coordinator Area in coordination with its neighboring Reliability Coordinator’s wide area view.

Balancing Authority Integrates resource plans ahead of time, and maintains load-interchange-resource balance within a Balancing Authority Area and supports Interconnection frequency in real time.

Interchange Authority Ensures communication of interchange transactions for reliability evaluation purposes and coordinates implementation of valid and balanced interchange schedules between Balancing Authority Areas.

Planning Coordinator Assesses the longer-term reliability of its Planning Coordinator Area.

Resource Planner Develops a one year plan for the resource adequacy of its specific loads within a Planning Coordinator area.

Transmission Planner Develops a one year plan for the reliability of the interconnected Bulk Electric System within its portion of the Planning Coordinator area.

Standards Authorization Request Form 4

Reliability Functions

Transmission Service Provider

Administers the transmission tariff and provides transmission services under applicable transmission service agreements (e.g., the pro forma tariff).

Transmission Owner Owns and maintains transmission facilities.

Transmission Operator

Ensures the real-time operating reliability of the transmission assets within a Transmission Operator Area.

Distribution Provider Delivers electrical energy to the end-use customer.

Generator Owner Owns and maintains generation facilities.

Generator Operator Operates generation unit(s) to provide real and reactive power.

Purchasing-Selling Entity

Purchases or sells energy, capacity, and necessary reliability-related services as required.

Market Operator Interface point for reliability functions with commercial functions.

Load-Serving Entity Secures energy and transmission service (and reliability-related services) to serve the end-use customer.

Reliability and Market Interface Principles

Applicable Reliability Principles (Check all that apply).

1. Interconnected bulk power systems shall be planned and operated in a coordinated mannerto perform reliably under normal and abnormal conditions as defined in the NERC Standards.

2. The frequency and voltage of interconnected bulk power systems shall be controlled withindefined limits through the balancing of real and reactive power supply and demand.

3. Information necessary for the planning and operation of interconnected bulk power systemsshall be made available to those entities responsible for planning and operating the systemsreliably.

4. Plans for emergency operation and system restoration of interconnected bulk power systemsshall be developed, coordinated, maintained and implemented.

5. Facilities for communication, monitoring and control shall be provided, used and maintainedfor the reliability of interconnected bulk power systems.

6. Personnel responsible for planning and operating interconnected bulk power systems shall betrained, qualified, and have the responsibility and authority to implement actions.

Standards Authorization Request Form 5

Reliability and Market Interface Principles

7. The security of the interconnected bulk power systems shall be assessed, monitored andmaintained on a wide area basis.

8. Bulk power systems shall be protected from malicious physical or cyber attacks.

Does the proposed Standard comply with all of the following Market Interface Principles?

Enter

(yes/no)

1. A defined term shall not give any market participant an unfair competitiveadvantage.

Yes

2. A defined term shall neither mandate nor prohibit any specific market structure. Yes

3. A defined term shall not preclude market solutions to achieving compliance withthat standard.

Yes

4. A reliability standard shall not require the public disclosure of commerciallysensitive information. All market participants shall have equal opportunity toaccess commercially non-sensitive information that is required for compliancewith reliability standards.

N/A

Related Standards

Standard No. Explanation

N/A

Related SARs

SAR ID Explanation

N/A

Regional Variances

Region Explanation

ERCOT

FRCC

MRO

Standards Authorization Request Form 6

Regional Variances

NPCC

RFC

SERC

SPP

WECC

Standards Authorization Request Form 7

Agenda Item 9 Standards Committee

March 11, 2015

Post Standards Authorization Request, draft revised Standards and Solicitation of Drafting Team Nominations to Implement Project 2012-09 Interconnected

Reliability Operations Five-Year Review Recommendations

ActionAuthorize the following:

1. Post for a formal 30 day comment period the draft project 2015-06 StandardsAuthorization Request (SAR), with an indication in the SAR and comment form thatProject 2014-03, Revisions to TOP and IRO Standards, has already retired IRO-003-2,IRO-004-2, IRO-005-4, IRO-008-1, and IRO-010-1a, leaving only IRO-006-East and IRO-009-1 in need of revision pursuant to the five-year review recommendations. Also, postfor comment the revised draft Standards IRO-006-East and IRO-009-1 from the Project2012-09 five-year review for a 30 day formal comment period, with no ballot poolformed, and no vote conducted.

2. Solicit nominations for a drafting team to address comments on the proposed StandardsAuthorization Request (SAR) and develop the revised draft IRO-006-East and IRO-009-1in for Project 2015-06.

Background At the October 2013 Standards Committee (SC), the following action was approved:

Accept the recommendations of the IRO Five-year Review Team, including the proposed SAR and ask NERC staff to work with PMOS to schedule the project for standard development in 2015. Authorize posting of the SAR and redlined standards for formal comment and direct NERC staff to solicit for standard drafting team nominations.

PMOS leadership agrees that the posting of the IRO SAR and redlined IRO-006-East and IRO-009-1 Standards for formal comment is appropriate at this time, and consistent with the project tracking spreadsheet and annual project planning tool.

For more background, it is noted that Project 2015-06 was initiated in response to work done by the Project 2012-09 Interconnected Reliability Operations five-year review team. As the five-year review has resulted in a recommended drafting effort, a separate drafting team will be tasked with Project 2015-06. However, five-year review team members may nominate themselves to the Project 2015-06 drafting team, if they choose. Nominations of subject matter experts (SMEs) are needed to provide diverse technical experience, industry leadership, and regional and entity representation. The SDT will consider the five-year review team recommendations, stakeholder input, and relevant industry reports for the purpose of drafting a SAR for Standards Committee action.

The Project 2012-09 IRO Five-Year Review Team reviewed IRO-003-2, IRO-004-2, IRO-005-4, IRO-006-5, IRO-006-East, IRO-008-1, IRO-009-1 and IRO-010-1a and posted eight draft recommendations for a 45-day industry comment period that ended on September 20, 2013.

All standards were recommended for revision except IRO-006-5, which was affirmed by the team and presented to the BOT in Feb 2014 for approval. A final set of recommendations and SAR were submitted to the Standards Committee for consideration at the Standards Committee’s October 2013 meeting. However, Project 2014-03, Revisions to TOP and IRO Standards, retired IRO-003-2, IRO-004-2, IRO-005-4, IRO-008-1, and IRO-010-1a, leaving only IRO-006-East and IRO-009-1 in need of revision.

Agenda Item 9a Standards Committee

March 11, 2015

Standards Authorization Request Form

NERC welcomes suggestions to improve the reliability of the bulk power system through improved reliability standards. Please use this form to submit your request to propose a new or a revision to a NERC’s Reliability Standard.

Request to propose a new or a revision to a Reliability Standard

Title of Proposed Standard: Interconnected Reliability Operations (IRO-001-3, IRO-003-2, IRO-004-2, IRO-005-4, IRO-006-EAST-1, IRO-008-1, IRO-009-1, IRO-010-1a)1

Date Submitted: October 17, 2013

SAR Requester Information

Name: Robert Rhodes

Organization: Southwest Power Pool

Telephone: (501) 614-3241 E-mail: rrhodes@spp.org

SAR Type (Check as many as applicable)

New Standard

Revision to existing Standard

Withdrawal of existing Standard

Urgent Action

SAR Information

Industry Need (What is the industry problem this request is trying to solve?):

This SAR will address implementation of the Five-Year Review recommendations for these standards consistent with overall NERC efforts to move standards to a steady state.

1 Project 2014-03, Revisions to TOP and IRO Standards, has already retired IRO-003-2, IRO-004-2, IRO-005-4, IRO-006-5, IRO-008-1, and IRO-010-1a, leaving only IRO-006-East and IRO-009-1 in need of revision pursuant to the periodic review recommendations. For further information, see the Project 2014-03 project page.

When completed, please email this form to:

sarcomm@nerc.com

Agenda Item 9aStandards Committee

March 11, 2015

SAR Information

Purpose or Goal (How does this request propose to address the problem described above?):

To improve the quality, relevance, and clarity of each of the standards and convert the standards into the Results Based Standards format while giving consideration to Paragraph 81 principles and incorporating existing interpretations into the standards.

Identify the Objectives of the proposed standard’s requirements (What specific reliability deliverables are required to achieve the goal?):

To increase the effectiveness of the eight standards in their ability to ensure reliability of the BES.

Brief Description (Provide a paragraph that describes the scope of this standard action.)

The IRO SDT will consider the comments received from the IRO FYRT, which includes consideration of industry comments and the report from the Industry Expert Review Panel.

Recommendations for consideration are: • Modify the requirement to improve its clarity and measurability while removing ambiguity• Move and/or streamline requirements• Eliminate requirements based on P81 criteria

To ensure a seamless transition from the IRO FYRT to the future IRO SDT, the IRO FYRT recommends the inclusion of interested IRO FYRT members to participate on the IRO SDT. In addition, the IRO FYRT should provide a high-level overview of their recommendations as a formal kick-off to the initial meeting to the future IRO SDT.

Detailed Description (Provide a description of the proposed project with sufficient details for the standard drafting team to execute the SAR. Also provide a justification for the development or revision of the standard, including an assessment of the reliability and market interface impacts of implementing or not implementing the standard action.)

See the attached Five-Year Review templates of the eight standards, consideration of comments, issues and directives list, redlined standards, and the Industry Experts' anyalsis.

Reliability Functions

The Standard will Apply to the Following Functions (Check each one that applies.)

Reliability Coordinator Responsible for the real-time operating reliability of its Reliability Coordinator Area in coordination with its neighboring Reliability

Revised (11/28/2011) 2

Reliability Functions

Coordinator’s wide area view.

Balancing Authority Integrates resource plans ahead of time, and maintains load-interchange-resource balance within a Balancing Authority Area and supports Interconnection frequency in real time.

Interchange Authority Ensures communication of interchange transactions for reliability evaluation purposes and coordinates implementation of valid and balanced interchange schedules between Balancing Authority Areas.

Planning Coordinator Assesses the longer-term reliability of its Planning Coordinator Area.

Resource Planner Develops a >one year plan for the resource adequacy of its specific loads within a Planning Coordinator area.

Transmission Planner Develops a >one year plan for the reliability of the interconnected Bulk Electric System within its portion of the Planning Coordinator area.

Transmission Service Provider

Administers the transmission tariff and provides transmission services under applicable transmission service agreements (e.g., the pro forma tariff).

Transmission Owner Owns and maintains transmission facilities.

Transmission Operator

Ensures the real-time operating reliability of the transmission assets within a Transmission Operator Area.

Distribution Provider Delivers electrical energy to the End-use customer.

Generator Owner Owns and maintains generation facilities.

Generator Operator Operates generation unit(s) to provide real and reactive power.

Purchasing-Selling Entity

Purchases or sells energy, capacity, and necessary reliability-related services as required.

Market Operator Interface point for reliability functions with commercial functions.

Load-Serving Entity Secures energy and transmission service (and reliability-related services) to serve the End-use Customer.

Revised (11/28/2011) 3

Reliability and Market Interface Principles

Applicable Reliability Principles (Check all that apply).

1. Interconnected bulk power systems shall be planned and operated in a coordinated mannerto perform reliably under normal and abnormal conditions as defined in the NERC Standards.

2. The frequency and voltage of interconnected bulk power systems shall be controlled withindefined limits through the balancing of real and reactive power supply and demand.

3. Information necessary for the planning and operation of interconnected bulk power systemsshall be made available to those entities responsible for planning and operating the systemsreliably.

4. Plans for emergency operation and system restoration of interconnected bulk power systemsshall be developed, coordinated, maintained and implemented.

5. Facilities for communication, monitoring and control shall be provided, used and maintainedfor the reliability of interconnected bulk power systems.

6. Personnel responsible for planning and operating interconnected bulk power systems shall betrained, qualified, and have the responsibility and authority to implement actions.

7. The security of the interconnected bulk power systems shall be assessed, monitored andmaintained on a wide area basis.

8. Bulk power systems shall be protected from malicious physical or cyber attacks.

Does the proposed Standard comply with all of the following Market Interface Principles?

Enter

(yes/no)

1. A reliability standard shall not give any market participant an unfair competitiveadvantage.

Yes

2. A reliability standard shall neither mandate nor prohibit any specific marketstructure.

Yes

3. A reliability standard shall not preclude market solutions to achieving compliancewith that standard.

Yes

4. A reliability standard shall not require the public disclosure of commerciallysensitive information. All market participants shall have equal opportunity toaccess commercially non-sensitive information that is required for compliancewith reliability standards.

Yes

Related Standards

Standard No. Explanation

None

Revised (11/28/2011) 4

Related Standards

Related SARs

SAR ID Explanation

None

None

Regional Variances

Region Explanation

ERCOT

FRCC

MRO

NPCC

RFC

SERC

SPP

Revised (11/28/2011) 5

Regional Variances

WECC

Revised (11/28/2011) 6

Agenda Item 9b Standards Committee

March 11, 2015

Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

A. Introduction 1. Title: Transmission Loading Relief Procedure for the Eastern Interconnection

2. Number: IRO-006-EAST-21

3. Purpose: To provide an Interconnection-wide transmission loading reliefprocedure (TLR) for the Eastern Interconnection that can be used to prevent and/ormitigate potential or actual System Operating Limit (SOL) and InterconnectionReliability Operating Limit (IROL) exceedances to maintain reliability of the BulkElectric System (BES).

4. Applicability:

4.1. Reliability Coordinators in the Eastern Interconnection.

5. Proposed Effective Date: TBD

B. Requirements

R1. When acting or instructing others to act to mitigate the magnitude and duration of the instance of exceeding an IROL within that IROL’s TV, each Reliability Coordinator shall initiate, prior to or concurrently with the initiation of the Eastern Interconnection TLR procedure (or continuing management of this procedure if already initiated), one or more of the following actions: [Violation Risk Factor: High] [ Time Horizon: Real-time Operations]

• Inter-area redispatch of generation

• Intra-area redispatch of generation

• Reconfiguration of the transmission system

• Voluntary load reductions (e.g., Demand-side Management)

• Controlled load reductions (e.g., load shedding)

R1. To ensure operating entities are provided with information needed to maintain an awareness of changes to the Transmission System, when initiating the Eastern Interconnection TLR procedure to prevent or mitigate an SOL or IROL exceedance, and at least every clock hour (with the exception of TLR-1, where an hourly update is not required) after initiation up to and including the hour when the TLR level has been identified as TLR Level 0, the Reliability Coordinator shall identify: [Violation Risk Factor: Medium] [ Time Horizon: Real-time Operations]

1.1. A list of congestion management actions to be implemented, and

1.2. One of the following TLR levels: TLR-1, TLR-2, TLR-3A, TLR-3B, TLR-4, TLR-5A, TLR-5B, TLR-6, TLR-0 1

1 For more information on TLR levels, please see “Implementation Guideline for Reliability Coordinators: Eastern Interconnection TLR Levels Reference Document.”

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Agenda Item 9c Standards Committee

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Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

R2. Upon the identification of the TLR level and a list of congestion management actions to be implemented, the Reliability Coordinator initiating this TLR procedure shall: [Violation Risk Factor: Medium] [ Time Horizon: Real-time Operations]

Notify all Reliability Coordinators in the Eastern Interconnection of the identified TLR level

2.1. Communicate the list of congestion management actions to be implemented to 1.) all Reliability Coordinators in the Eastern Interconnection, and 2.) those Reliability Coordinators in other Interconnections responsible for curtailing Interchange Transactions crossing Interconnection boundaries identified in the list of congestion management actions.

2.1. Request that the congestion management actions identified in Requirement R2, Part 2.1 be implemented by:

1.) Each Reliability Coordinator associated with a Sink Balancing Authority for which Interchange Transactions are to be curtailed,

2.) Each Reliability Coordinator associated with a Balancing Authority in the Eastern Interconnection for which Network Integration Transmission Service or Native Load is to be curtailed, and

3.) Each Reliability Coordinator associated with a Balancing Authority in the Eastern Interconnection for which its Market Flow is to be curtailed.

R3.R2. Each Reliability Coordinator that receives a request for congestion management actionsas described in Requirement R3, Part 3.3. shall, within 15 minutes of receiving the request, implement the congestion management actions requested by the issuing Reliability Coordinator as follows: [Violation Risk Factor: High] [ Time Horizon: Real-time Operations]

• Instruct its Balancing Authorities to implement the Interchange Transactionschedule change requests.

• Instruct its Balancing Authorities to implement the Network IntegrationTransmission Service and Native Load schedule changes for which theBalancing Authorities are responsible.

• Instruct its Balancing Authorities to implement the Market Flow schedulechanges for which the Balancing Authorities are responsible.

• If an assessment determines shows that one or more of the congestionmanagement actions communicated in Requirement R3, Part 3.3 will result ina reliability concern or will be ineffective, the Reliability Coordinator mayreplace those specific actions with alternate congestion management actions,provided that:

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Agenda Item 9c Standards Committee

March 11, 2015 Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

o The alternate congestion management actions have been agreed to by the initiating Reliability Coordinator, and

o The assessment shows that the alternate congestion management actions will not adversely affect reliability.

C. Measures

M1. Each Reliability Coordinator shall provide evidence (such as dated logs, voice recordings, or other information in electronic or hard-copy format) that when acting or instructing others to act to mitigate the magnitude and duration of the instance of exceeding an IROL within that IROL’s Tv, the Reliability Coordinator initiated one or more of the actions listed in R1 prior to or concurrently with the initiation of the Eastern Interconnection TLR procedure (or continuing management of this procedure if already initiated)(R1).

M12. Each Reliability Coordinator shall provide evidence (such as dated logs, voice recordings, or other information in electronic or hard-copy format) that at the time it initiated the Eastern Interconnection TLR procedure, and at least every clock hour after initiation up to and including the hour when the TLR level was identified as TLR Level 0, the Reliability Coordinator identified both the TLR Level and a list of congestion management actions to be implemented (R21).

M3. Each Reliability Coordinator shall provide evidence (such as dated logs, voice recordings, or other information in electronic or hard-copy format) that after it identified a TLR level and a list of congestion management actions to take, it 1.) notified all Reliability Coordinators in the Eastern Interconnection of the TLR Level, 2.) communicated the list of actions to all Reliability Coordinators in the Eastern Interconnection and those Reliability Coordinators in other Interconnections responsible for curtailing Interchange Transactions crossing Interconnection boundaries identified in the list of congestion management actions, and 3.) requested the Reliability Coordinators identified in Requirement R3 Part 3.2 to implement the congestion management actions identified in Requirement R2 Part 2.1 (R3).

M24. Each Reliability Coordinator shall provide evidence (such as dated logs, voice recordings, or other information in electronic or hard-copy format) that within fifteen minutes of the receipt of a request as described in R32, the Reliability Coordinator complied with the request by either 1.) implementing the communicated congestion management actions requested by the issuing Reliability Coordinator, or 2.) implementing none or some of the communicated congestion management actions requested by the issuing Reliability Coordinator, and replacing the remainder with alternate congestion management actions if assessment showed that some or all of the congestion management actions communicated in R32 would have resulted in a reliability concern or would have been ineffective, the alternate congestion management actions were agreed to by the initiating Reliability Coordinator, and assessment showed that the alternate congestion management actions would not adversely affect reliability (R42).

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Agenda Item 9c Standards Committee

March 11, 2015

Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

D. Compliance 1. Compliance Monitoring Process

1.1. Compliance Enforcement Authority

Regional Entity.

1.2. Compliance Monitoring and Enforcement Processes:

The following processes may be used:

- Compliance Audits

- Self-Certifications

- Spot Checking

- Compliance Violation Investigations

- Self-Reporting

- Complaints

1.3. Data Retention

The Reliability Coordinator shall keep data or evidence to show compliance as identified below unless directed by its Compliance Enforcement Authority to retain specific evidence for a longer period of time as part of an investigation:

- The Reliability Coordinator shall maintain evidence to show compliancewith R1 and, R2, R3, and R4 for the past 12 months plus the current month.

- If a Reliability Coordinator is found non-compliant, it shall keepinformation related to the non-compliance until found compliant.

The Compliance Enforcement Authority shall keep the last audit records and all requested and submitted subsequent audit records.

1.4. Additional Compliance Information

None.

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Agenda Item 9c Standards Committee

March 11, 2015 Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

3. Violation Severity Levels

R # Lower VSL Moderate VSL High VSL Severe VSL

R1

When acting or instructing others to act to mitigate the magnitude and duration of the instance of exceeding an IROL within that IROL’s Tv, the Reliability Coordinator did not initiate one or more of the actions listed under R1 prior to or in conjunction with the initiation of the Eastern Interconnection TLR procedure (or continuing management of this procedure if already initiated).

R2 The Reliability Coordinator initiating the Eastern Interconnection TLR procedure missed identifying the TLR Level and/or a list of congestion management actions to take as specified by the requirement for one clock hour during the period from initiation up to the hour when the TLR level was identified as TLR Level 0.

The Reliability Coordinator initiating the Eastern Interconnection TLR procedure missed identifying the TLR Level and/or a list of congestion management actions to take as specified by the requirement for two clock hours during the period from initiation up to the hour when the TLR level was identified as TLR Level 0.

The Reliability Coordinator initiating the Eastern Interconnection TLR procedure missed identifying the TLR Level and/or a list of congestion management actions to take as specified by the requirement for three clock hours during the period from initiation up to the hour when the TLR level was identified as TLR Level 0.

The Reliability Coordinator initiating the Eastern Interconnection TLR procedure missed identifying the TLR Level and/or a list of congestion management actions to take as specified by the requirement for four or more clock hours during the period from initiation up to the hour when the TLR level was identified as TLR Level 0.

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Agenda Item 9c Standards Committee

March 11, 2015

Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

R # Lower VSL Moderate VSL High VSL Severe VSL

R3 The initiating Reliability Coordinator did not notify one or more Reliability Coordinators in the Eastern Interconnection of the TLR Level (3.1).

N/A The initiating Reliability Coordinator did not communicate the list of congestion management actions to one or more of the Reliability Coordinators listed in Requirement R3, Part 3.2.

OR

The initiating Reliability Coordinator requested some, but not all, of the Reliability Coordinators identified in Requirement R3, Part 3.3 to implement the identified congestion management actions.

The initiating Reliability Coordinator requested none of the Reliability Coordinators identified in Requirement R3, Part 3.3 to implement the identified congestion management actions.

R4 The responding Reliability Coordinator did not, within 15 minutes of receiving a request, either 1.) implement all the requested congestion management actions, or 2.) implement none or some of the requested congestion

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Agenda Item 9c Standards Committee

March 11, 2015 Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

R # Lower VSL Moderate VSL High VSL Severe VSL

management actions and replace the remainder with alternate congestion management actions, provided that: assessment showed that the actions replaced would have resulted in a reliability concern or would have been ineffective, the alternate congestion management actions were agreed to by the initiating Reliability Coordinator, and assessment determined that the alternate congestion management actions would not adversely affect reliability.

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Agenda Item 9c Standards Committee

March 11, 2015

Standard IRO-006-EAST-21 — TLR Procedure for the Eastern Interconnection

E. Variances None.

F. Associated Documents Implementation Guideline for Reliability Coordinators:

Eastern Interconnection TLR Levels Reference Document

G. Revision History

Version Date Action Tracking

1 Creation of new standard, incorporating concepts from IRO-006-4 Attachment; elimination of Regional Differences, as the standard allows the use of Market Flow

New

1 April 21, 2011

FERC Order issued approving IRO-006-EAST-1 (approval effective June 27, 2011)

Draft 1: October 1, 2013 Page 8 of 8

Agenda Item 9c Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

A. Introduction 1. Title: Reliability Coordinator Actions to Operate Within IROLs

2. Number: IRO-009-21

3. Purpose: To prevent instability, uncontrolled separation, or cCascading outages thatadversely impacts the reliability of the the interconnectionBulk Electric System byensuring prompt action to prevent or mitigate instances of exceeding InterconnectionReliability Operating Limits (IROLs).

4. Applicability:4.1. Reliability Coordinator.

5. Proposed Effective Date:In those jurisdictions where no regulatory approval is required, the standard shallbecome effective on the latter of either April 1, 2009 or the first day of the first calendar quarter, three months after BOT adoption.

In those jurisdictions where regulatory approval is required, the standard shall become effective on the latter of either April 1, 2009 or the first day of the first calendar quarter, three months after applicable regulatory approval.

D.B. Requirements

R1. For each IROL (in its Reliability Coordinator Area) that the Reliability Coordinator identifies one or more days prior to the current day, the Reliability Coordinator shall have one or more Operating Processes, Procedures, or Plans that identify actions it shall take or actions it shall direct others to take (up to and including load shedding): that can be implemented in time to prevent exceeding those IROLs. (Violation Risk Factor: Medium) (Time Horizon: Operations Planning or Same Day Operations) R1.1. That can be implemented in time to prevent exceeding each of the

identifiedthose IROLs. R1.1.R1.2.

For each IROL (in its Reliability Coordinator Area) that the Reliability Coordinator identifies one or more days prior to the current day, the Reliability Coordinator shall have one or more Operating Processes, Procedures, or Plans that identify actions it shall take or actions it shall direct others to take (up to and including load shedding) Tto mitigate the magnitude and duration of exceeding each of the identifiedthat IROLs such that eachthe IROL is relieved within the IROL’s Tv. (Violation Risk Factor: Medium) (Time Horizon: Operations Planning or Same Day Operations)

R2. When an assessment of actual or expected system conditions predicts that an IROL in its Reliability Coordinator Area will be exceeded, the Reliability Coordinator shall

Draft 1: October 1, 2013 Page 1 of 8

Agenda Item 9e Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

implement one or more Operating Processes, Procedures or Plans (not limited to the Operating Processes, Procedures, or Plans developed for Requirements R1) to prevent exceeding that IROL. (Violation Risk Factor: High) (Time Horizon: Real-time Operations)

R3. When actual system conditions show that there is an instance of exceeding an IROL exceedance in its Reliability Coordinator Area, the Reliability Coordinator shall, without delay, act or direct others to act to mitigate the magnitude and duration of the instance of exceeding that IROL within the IROL’s Tv. (Violation Risk Factor: High ) (Time Horizon: Real-time Operations)

R4. If unanimity cannot be reached on the value for an IROL or its Tv, each Reliability Coordinator that monitors that Facility (or group of Facilities) shall, without delay, use the most limitingconservative of the values (the value with the least impact on reliability) under consideration. (Violation Risk Factor: High) (Time Horizon: Real-time Operations)

E.C. Measures M1. Each Reliability Coordinator shall have, and make available upon request, evidence to

confirm that it has Operating Processes, Procedures, or Plans to address both preventing and mitigating instances of exceeding IROLs in accordance with Requirement R1 and Requirement R2. This evidence shall include a list of any IROLs (and each associated Tv) identified in advance, along with one or more dated Operating Processes, Procedures, or Plans that that will be used. (R1)

M1.M2. Each Reliability Coordinator shall have, and make available upon request, evidence to demonstrate that it implemented one or more Operating Processes, Procedures or Plans to prevent exceeding an IROL when an assessment of actual or expected system conditions predicted that that an IROL in its Reliability Coordinator area would be exceeded. (R2)

M2.M3. Each Reliability Coordinator shall have, and make available upon request, evidence to confirm that it acted or directed others to act in accordance with Requirement R3 and Requirement R4. This evidence could include, but is not limited to, Operating Processes, Procedures, or Plans from Requirement R1, dated operating logs, dated voice recordings, dated transcripts of voice recordings, or other evidence.

M3.M4. For a situation where Reliability Coordinators disagree on the value of an IROL or its Tv the Reliability Coordinator shall have, and make available upon request, evidence to confirm that it used the most limitingconservative of the values under consideration, without delay. Such evidence could include, but is not limited to, dated computer printouts, dated operator logs, dated voice recordings, dated transcripts of voice recordings, or other equivalent evidence. (R45)

Draft 1: October 1, 2013 Page 2 of 8

Agenda Item 9e Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

F.D. Compliance 1. Compliance Monitoring Process

1.1. Compliance Enforcement AuthorityFor Reliability Coordinators that work for the Regional Entity, the ERO shall serve as the Compliance Enforcement Authority.

For Reliability Coordinators that do not work for the Regional Entity, the Regional Entity shall serve as the Compliance Enforcement Authority.

1.2. Compliance Monitoring Period and Reset Time Frame Not applicable.

1.3. Compliance Monitoring and Enforcement Processes Compliance Audits

Self-Certifications

Spot Checking

Compliance Violation Investigations

Self-Reporting

Complaints

Exception Reporting

1.4. Data Retention The Reliability Coordinator, shall keep data or evidence to show compliance as identified below unless directed by its Compliance Enforcement Authority to retain specific evidence for a longer period of time as part of an investigation:

The Reliability Coordinator shall retain evidence of Requirements R1, Requirement R2, R3 and R4 and Measures M1, M2, M3 and M4 for a rolling 12 months.

The Reliability Coordinator shall retain evidence of Requirement R3, Requirement R4, Requirement R5, Measure M2, and Measure M3 for a rolling 12 months.

The Compliance Enforcement Authority shall keep the last audit records and all requested and submitted subsequent audit records, and all IROL Violation Reports submitted since the last audit.

1.5. Additional Compliance Information

Draft 1: October 1, 2013 Page 3 of 8

Agenda Item 9e Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

Exception Reporting: For each instance of exceeding an IROL for time greater than IROL Tv, the Reliability Coordinator shall submit an IROL Violation Report to its Compliance Enforcement Authority within 30 days of the initiation of the event.

Draft 1: October 1, 2013 Page 4 of 8

Agenda Item 9e Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

2. Violation Severity Levels Requirement Lower Moderate High Severe

R1 N/A N/A N/A An IROL in its Reliability Coordinator Area was identified one or more days in advance and the Reliability Coordinator does not have an Operating Process, Procedure, or Plan that identifies actions to prevent exceeding that IROL. (R1, Part 1.1)

OR

An IROL in its Reliability Coordinator Area was identified one or more days in advance and the Reliability Coordinator does not have an Operating Process, Procedure, or Plan that identifies actions to mitigate exceeding that IROL within the IROL’s Tv. (R1, Part 1.2)

R2 An IROL in its Reliability Coordinator Area was identified one or more days in advance and the

Draft 1: October 1, 2013 Page 5 of 8

Agenda Item 9e Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

Requirement Lower Moderate High Severe

Reliability Coordinator does not have an Operating Process, Procedure, or Plan that identifies actions to mitigate exceeding that IROL within the IROL’s Tv. (R2)

R23 An assessment of actual or expected system conditions predicted that an IROL in the Reliability Coordinator’s Area would be exceeded, but no Operating Processes, Procedures, or Plans were implemented. (R3)

R34 Actual system conditions showed that there was an instance of exceeding an IROL in its Reliability Coordinator Area, and there was a delay of five minutes or more before acting or directing others to act to mitigate the magnitude and duration of the instance of exceeding that IROL,

Actual system conditions showed that there was an instance of exceeding an IROL in its Reliability Coordinator Area, and that IROL was not resolved within the IROL’s Tv. (R34)

Draft 1: October 1, 2013 Page 6 of 8

Agenda Item 9e Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

Requirement Lower Moderate High Severe

however the IROL was mitigated within the IROL Tv. (R4)Not Applicable

R45 Not applicable. Not applicable. Not applicable. There was a disagreement on the value of the IROL or its Tv and the most conservative limit under consideration was not used. (R45)

Draft 1: October 1, 2013 Page 7 of 8

Agenda Item 9e Standards Committee

March 11, 2015

Standard IRO-009-21 — Reliability Coordinator Actions to Operate Within IROLs

G.E. Regional Variances None

H.F. Associated Documents IROL Violation Report

Version History Version Date Action Change Tracking 1 October 17,

2008 Adopted by NERC Board of Trustees

1 March 17, 2011

Order issued by FERC approving IRO-009-1 (approval effective 5/23/11)

2 TBD

Page 8 of 8

Agenda Item 10 Standards Committee

March 11, 2015

Authorize Posting of a SAR for Project 2007-17.4 PRC-005 Order No. 803 Directive

Action Authorize posting of a Standards Authorization Request (SAR) to address a directive in FERC Order No. 803 for a 30-day informal comment period.

Background This project is being initiated to address a FERC directive in Order No. 803. In the order, FERC approved Standard PRC-005-3 and, in Paragraph 31, directed NERC to:

"...direct that, pursuant to section 215(d)(5) of the FPA, NERC develop modifications to PRC-005-3 to include supervisory devices associated with auto-reclosing relay schemes to which the Reliability Standard applies. Further, we clarify that NERC’s proposal regarding the scope of supervisory devices is an acceptable approach to satisfy the Commission directive. Specifically, NERC proposed in its NOPR comments, and we find acceptable, that the scope of the supervisory devices to be encompassed in the Reliability Standard are those providing voltage supervision, supervisory inputs associated with selective auto-reclosing, and sync-check relays that are part of a reclosing scheme covered by PRC-005-3."

The Standard Drafting Team agrees with the scope of the revised SAR and will consider stakeholder input for the purpose of drafting a revised standard or defined term(s) to address the directive for Standards Committee action.

Agenda Item 10a Standards Committee

March 11, 2015

Standards Authorization Request Form

NERC welcomes suggestions for improving the reliability of the Bulk-Power System through improved Reliability Standards. Please use this form to submit your proposal for a new NERC Reliability Standard or a revision to an existing standard.

Request to propose a new or a revision to a Reliability Standard

Proposed Standard: PRC-005-4

Date Submitted: 2/12/2014 (Revised March 1, 2015)

SAR Requester Information

Name: Charles Rogers

Organization: Protection System Maintenance Standard Drafting Team

Telephone: 517-788-0027 E-mail: Charles.Rogers@cmsenergy.com

SAR Type (Check as many as applicable)

New Standard

Revision to existing Standard

Withdrawal of existing Standard

Urgent Action

When completed, email this form to: Valerie.Agnew@nerc.net

For questions about this form or for assistance in completing the form, call Valerie Agnew at 404-446-2566.

Agenda Item 10aStandards Committee

March 11, 2015

SAR Information

Industry Need (What is the industry problem this request is trying to solve?):

The Federal Energy Regulatory Commission, in paragraphs 11-15 of Order No. 758, accepted NERC’s proposal to “develop, either independently or in association with other technical organizations such as IEEE, one or more technical documents which:

1. describe the devices and functions (to include sudden pressure relays which trip for faultconditions) that should address FERC’s concern; and

2. propose minimum maintenance activities for such devices and maximum maintenance intervals,including the technical basis for each.”

NERC is following through on its commitment to “propose a new or revised standard (e.g. PRC-005) using the NERC Reliability Standards development process to include maintenance of such devices, including establishment of minimum maintenance activities and maximum maintenance intervals.” FERC also directed NERC to file an informational filing with a schedule for the development of the changes to the standard.

The NERC System Protection and Control Subcommittee has subsequently issued a technical paper entitled “Sudden Pressure Relays and Other Devices that Respond to Non-Electrical Quantities”. The SPCS recommended the following guidance to address the concerns stated in FERC Order No. 758:

“Modify PRC-005 to explicitly address maintenance and testing of the actuator device of the sudden pressure relay when applied as a protective device that trips a facility described in the applicability section of the Reliability Standard.

• Develop minimum maintenance activities for sudden pressure relays similar to Table 1-1:Protective Relay. Based on the survey results, the SPCS recommends the maximum interval fortime-based maintenance programs be 6 years.

• Modify Table 1-5: Control Circuitry Associated With Protective Functions to explicitly include thesudden pressure control circuitry.”

In addition to the above need to address sudden pressure relays, during the development of PRC-005-3, several commenters raised concerns that there is no obligation for the Balancing Authority (BA) to provide the essential data (the largest BES generating unit within the BA area, per Applicability section 4.2.6.1 of PRC-005-3) for the responsible entities to implement PRC-005-3. Modifying the Applicability of PRC-005-2 was determined to be outside the scope of the PRC-005-3 SAR; consequently, the issue was placed in the NERC Issues Database for consideration during the development of PRC-005-4, and therefore is set forth in this SAR to ensure it is within its scope.

Project 2007-17.4 (PRC-005-6) 2

SAR Information

SAR Information

Industry Need (What is the industry problem this request is trying to solve?):

Also, during the development of NERC Reliability Standard PRC-025-1, a possible inconsistency between that standard and PRC-005-2 was identified regarding the applicability of generator station service transformers. This issue will be considered during the development of PRC-005-4.

Additionally, the SDT will review the standard to determine if any modifications are necessary to align the standard with changes made to other NERC Reliability Standards, the BES definition, and any other developments that followed the NERC BOT adoption of PRC-005-2 and PRC-005-3.

Finally, NERC staff has requested that possible alternatives to the 24-year record retention period be evaluated by the SDT. During the consideration of PRC-005-2, the Office of Management and Budget requested additional support for the lengthy retention period. Possible solutions include modifying the measures in Section C ‘Measures’ or the evidence retention in Section D ‘Compliance’ of the standard.

Modifying the standard as set forth will promote the reliable operation of the Bulk Electric System (BES) by: assuring that sudden pressure relays are properly maintained so they may be expected to perform properly; assuring that the Applicability section of PRC-005-4 accurately reflects the relevant Functional Entities and Facilities; improving consistency with other Reliability Standards and the BES definition.

No market interface impacts are anticipated.

In Order No. 803, FERC approved Standard PRC-005-3 and, in Paragraph 31, directed NERC to:

"...direct that, pursuant to section 215(d)(5) of the FPA, NERC develop modifications to PRC-005-3 to include supervisory devices associated with auto-reclosing relay schemes to which the Reliability Standard applies. Further, we clarify that NERC’s proposal regarding the scope of supervisory devices is an acceptable approach to satisfy the Commission directive. Specifically, NERC proposed in its NOPR comments, and we find acceptable, that the scope of the supervisory devices to be encompassed in the Reliability Standard are those providing voltage supervision, supervisory inputs associated with selective auto-reclosing, and sync-check relays that are part of a reclosing scheme covered by PRC-005-3."

Project 2007-17.4 (PRC-005-6) 3

SAR Information

Purpose or Goal (How does this request propose to address the problem described above?):

The definition of Protection System may be revised, or a new definition created that describes the relays becoming applicable to the revised standard.

The Applicability section of the standard may be modified to: 1) describe explicitly those sudden pressure relays that must be maintained in accordance with the revised standard; 2) include Balancing Authorities; and 3) provide consistency with other Reliability Standards and the BES definition.

The tables of minimum maintenance activities and maximum maintenance intervals will be modified or added to include appropriate intervals and activities for sudden pressure relays.

The SDT shall consider possible alternatives to the 24-year record retention period in PRC-005-3. Possible solutions include modifying the measures in Section C ‘Measures’ or the evidence retention in Section D ‘Compliance’.

The SDT shall consider modifications, as needed, to address the FERC directive contained in Order 803resulting from the Commission’s consideration of PRC-005-.

Finally, the Supplementary Reference Document (provided as a technical reference for PRC-005-4) should be modified to provide the rationale for the maintenance activities and intervals within the revised standard, as well as to provide application guidance to industry.

Identify the Objectives of the proposed standard’s requirements (What specific reliability deliverables are required to achieve the goal?):

Provide clear, unambiguous requirements and standard(s) to address the directives in FERC Order 803.

The SDT shall consider modifications, as needed, to address any FERC directives or guidance that may result from the Commission’s consideration of PRC-005-4, which is pending regulatory approval, or subsequent versions of the standard that FERC may issue directive(s) for.

Brief Description (Provide a paragraph that describes the scope of this standard action.)

The Standard Drafting Team (SDT) shall modify NERC Standard PRC-005-4 to explicitly address the directive in Order 803. The SDT shall also consider changes to the standard that provide consistency and alignment with other Reliability Standards. Additionally, the SDT shall modify the standard to address any directives issued by FERC related to the approval of PRC-005-4 or subseq2uent versions of the standard.

Project 2007-17.4 (PRC-005-6) 4

SAR Information

Detailed Description (Provide a description of the proposed project with sufficient details for the standard drafting team to execute the SAR. Also provide a justification for the development or revision of the standard, including an assessment of the reliability and market interface impacts of implementing or not implementing the standard action.)

The SDTs execution of this SAR requires the SDT to address the directive in FERC Order 803. The SDT will develop requirement(s) to include supervisory devices associated with auto-reclosing relay schemes to which the Reliability Standard applies. The SDT may elect to propose revisions to the standard regarding the scope of supervisory devices as an acceptable approach to satisfy the Commission directive, as proposed in the NOPR comments submitted by NERC. Specifically, NERC proposed that the scope of the supervisory devices to be encompassed in the Reliability Standard are those providing voltage supervision, supervisory inputs associated with selective auto-reclosing, and sync-check relays that are part of a reclosing scheme covered by PRC-005-3.

The SDT shall also:

1. Consider modifications as needed to address any FERC directives or guidance that may result fromthe Commission’s consideration of PRC-005-4 or subsequent versions of the standard.

2. Revise the Implementation Plans for PRC-005-2, PRC-005-3, PRC-005-4 and subsequent versions ofthe standard as needed to assure consistent and systematic implementation.

3. Modify the informative Supplementary Reference Document (provided as a technical reference forPRC-005-4) as necessary to provide application guidance to industry.

Reliability Functions

The Standard will Apply to the Following Functions (Check each one that applies.)

Regional Reliability Organization

Conducts the regional activities related to planning and operations, and coordinates activities of Responsible Entities to secure the reliability of the Bulk Electric System within the region and adjacent regions.

Project 2007-17.4 (PRC-005-6) 5

Reliability Functions

Reliability Coordinator Responsible for the real-time operating reliability of its Reliability Coordinator Area in coordination with its neighboring Reliability Coordinator’s wide area view.

Balancing Authority Integrates resource plans ahead of time, and maintains load-interchange-resource balance within a Balancing Authority Area and supports Interconnection frequency in real time.

Interchange Authority Ensures communication of interchange transactions for reliability evaluation purposes and coordinates implementation of valid and balanced interchange schedules between Balancing Authority Areas.

Planning Coordinator Assesses the longer-term reliability of its Planning Coordinator Area.

Resource Planner Develops a >one year plan for the resource adequacy of its specific loads within a Planning Coordinator area.

Transmission Planner Develops a >one year plan for the reliability of the interconnected Bulk Electric System within its portion of the Planning Coordinator area.

Transmission Service Provider

Administers the transmission tariff and provides transmission services under applicable transmission service agreements (e.g., the pro forma tariff).

Transmission Owner Owns and maintains transmission facilities.

Transmission Operator

Ensures the real-time operating reliability of the transmission assets within a Transmission Operator Area.

Distribution Provider Delivers electrical energy to the End-use customer.

Generator Owner Owns and maintains generation facilities.

Generator Operator Operates generation unit(s) to provide real and reactive power.

The Standard will Apply to the Following Functions (Check each one that applies.)

Purchasing-Selling Entity

Purchases or sells energy, capacity, and necessary reliability-related services as required.

Project 2007-17.4 (PRC-005-6) 6

Reliability Functions

Market Operator Interface point for reliability functions with commercial functions.

Load-Serving Entity Secures energy and transmission service (and reliability-related services) to serve the End-use Customer.

Reliability and Market Interface Principles

Applicable Reliability Principles (Check all that apply).

1. Interconnected bulk power systems shall be planned and operated in a coordinated mannerto perform reliably under normal and abnormal conditions as defined in the NERC Standards.

2. The frequency and voltage of interconnected bulk power systems shall be controlled withindefined limits through the balancing of real and reactive power supply and demand.

3. Information necessary for the planning and operation of interconnected bulk power systemsshall be made available to those entities responsible for planning and operating the systemsreliably.

4. Plans for emergency operation and system restoration of interconnected bulk power systemsshall be developed, coordinated, maintained and implemented.

5. Facilities for communication, monitoring and control shall be provided, used and maintainedfor the reliability of interconnected bulk power systems.

6. Personnel responsible for planning and operating interconnected bulk power systems shall betrained, qualified, and have the responsibility and authority to implement actions.

7. The security of the interconnected bulk power systems shall be assessed, monitored andmaintained on a wide area basis.

8. Bulk power systems shall be protected from malicious physical or cyber attacks.

Does the proposed Standard comply with all of the following Market Interface Principles?

Enter

(yes/no)

1. A reliability standard shall not give any market participant an unfair competitiveadvantage.

Yes

2. A reliability standard shall neither mandate nor prohibit any specific marketstructure.

Yes

Project 2007-17.4 (PRC-005-6) 7

Reliability and Market Interface Principles

Does the proposed Standard comply with all of the following Market Interface Principles?

Enter

(yes/no)

3. A reliability standard shall not preclude market solutions to achieving compliancewith that standard.

Yes

4. A reliability standard shall not require the public disclosure of commerciallysensitive information. All market participants shall have equal opportunity toaccess commercially non-sensitive information that is required for compliancewith reliability standards.

Yes

Related Standards

Standard No. Explanation

Related SARs

SAR ID Explanation

Project 2007-17.4 (PRC-005-6) 8

Regional Variances

Region Explanation

ERCOT

FRCC

MRO

NPCC

RFC

SERC

SPP

WECC

Project 2007-17.4 (PRC-005-6) 9

Standards Authorization Request Form

NERC welcomes suggestions for improving the reliability of the Bulk-Power System through improved Reliability Standards. Please use this form to submit your proposal for a new NERC Reliability Standard or a revision to an existing standard.

Request to propose a new or a revision to a Reliability Standard

Proposed Standard: PRC-005-4

Date Submitted: 2/12/2014 (Revised March 1, 2015)

SAR Requester Information

Name: Charles Rogers

Organization: Protection System Maintenance Standard Drafting Team

Telephone: 517-788-0027 E-mail: Charles.Rogers@cmsenergy.com

SAR Type (Check as many as applicable)

New Standard

Revision to existing Standard

Withdrawal of existing Standard

Urgent Action

When completed, email this form to: Valerie.Agnew@nerc.net

For questions about this form or for assistance in completing the form, call Valerie Agnew at 404-446-2566.

Agenda Item 10bStandards Committee

March 11, 2015

SAR Information

Industry Need (What is the industry problem this request is trying to solve?):

The Federal Energy Regulatory Commission, in paragraphs 11-15 of Order No. 758, accepted NERC’s proposal to “develop, either independently or in association with other technical organizations such as IEEE, one or more technical documents which:

1. describe the devices and functions (to include sudden pressure relays which trip for faultconditions) that should address FERC’s concern; and

2. propose minimum maintenance activities for such devices and maximum maintenance intervals,including the technical basis for each.”

NERC is following through on its commitment to “propose a new or revised standard (e.g. PRC-005) using the NERC Reliability Standards development process to include maintenance of such devices, including establishment of minimum maintenance activities and maximum maintenance intervals.” FERC also directed NERC to file an informational filing with a schedule for the development of the changes to the standard.

The NERC System Protection and Control Subcommittee has subsequently issued a technical paper entitled “Sudden Pressure Relays and Other Devices that Respond to Non-Electrical Quantities”. The SPCS recommended the following guidance to address the concerns stated in FERC Order No. 758:

“Modify PRC-005 to explicitly address maintenance and testing of the actuator device of the sudden pressure relay when applied as a protective device that trips a facility described in the applicability section of the Reliability Standard.

• Develop minimum maintenance activities for sudden pressure relays similar to Table 1-1:Protective Relay. Based on the survey results, the SPCS recommends the maximum interval fortime-based maintenance programs be 6 years.

• Modify Table 1-5: Control Circuitry Associated With Protective Functions to explicitly include thesudden pressure control circuitry.”

In addition to the above need to address sudden pressure relays, during the development of PRC-005-3, several commenters raised concerns that there is no obligation for the Balancing Authority (BA) to provide the essential data (the largest BES generating unit within the BA area, per Applicability section 4.2.6.1 of PRC-005-3) for the responsible entities to implement PRC-005-3. Modifying the Applicability of PRC-005-2 was determined to be outside the scope of the PRC-005-3 SAR; consequently, the issue was placed in the NERC Issues Database for consideration during the development of PRC-005-4, and therefore is set forth in this SAR to ensure it is within its scope.

Project 2007-17.43 (PRC-005-64) 2

SAR Information

SAR Information

Industry Need (What is the industry problem this request is trying to solve?):

Also, during the development of NERC Reliability Standard PRC-025-1, a possible inconsistency between that standard and PRC-005-2 was identified regarding the applicability of generator station service transformers. This issue will be considered during the development of PRC-005-4.

Additionally, the SDT will review the standard to determine if any modifications are necessary to align the standard with changes made to other NERC Reliability Standards, the BES definition, and any other developments that followed the NERC BOT adoption of PRC-005-2 and PRC-005-3.

Finally, NERC staff has requested that possible alternatives to the 24-year record retention period be evaluated by the SDT. During the consideration of PRC-005-2, the Office of Management and Budget requested additional support for the lengthy retention period. Possible solutions include modifying the measures in Section C ‘Measures’ or the evidence retention in Section D ‘Compliance’ of the standard.

Modifying the standard as set forth will promote the reliable operation of the Bulk Electric System (BES) by: assuring that sudden pressure relays are properly maintained so they may be expected to perform properly; assuring that the Applicability section of PRC-005-4 accurately reflects the relevant Functional Entities and Facilities; improving consistency with other Reliability Standards and the BES definition.

No market interface impacts are anticipated.

In Order No. 803, FERC approved Standard PRC-005-3 and, in Paragraph 31, directed NERC to:

"...direct that, pursuant to section 215(d)(5) of the FPA, NERC develop modifications to PRC-005-3 to include supervisory devices associated with auto-reclosing relay schemes to which the Reliability Standard applies. Further, we clarify that NERC’s proposal regarding the scope of supervisory devices is an acceptable approach to satisfy the Commission directive. Specifically, NERC proposed in its NOPR comments, and we find acceptable, that the scope of the supervisory devices to be encompassed in the Reliability Standard are those providing voltage supervision, supervisory inputs associated with selective auto-reclosing, and sync-check relays that are part of a reclosing scheme covered by PRC-005-3."

Project 2007-17.43 (PRC-005-64) 3

SAR Information

Purpose or Goal (How does this request propose to address the problem described above?):

The definition of Protection System may be revised, or a new definition created that describes the relays becoming applicable to the revised standard.

The Applicability section of the standard may be modified to: 1) describe explicitly those sudden pressure relays that must be maintained in accordance with the revised standard; 2) include Balancing Authorities; and 3) provide consistency with other Reliability Standards and the BES definition.

The tables of minimum maintenance activities and maximum maintenance intervals will be modified or added to include appropriate intervals and activities for sudden pressure relays.

The SDT shall consider possible alternatives to the 24-year record retention period in PRC-005-3. Possible solutions include modifying the measures in Section C ‘Measures’ or the evidence retention in Section D ‘Compliance’.

The SDT shall consider modifications, as needed, to address any the FERC directives contained in Order 803 that may resulting from the Commission’s consideration of PRC-005-3, which is pending regulatory approval.

Finally, the Supplementary Reference Document (provided as a technical reference for PRC-005-43) should be modified to provide the rationale for the maintenance activities and intervals within the revised standard, as well as to provide application guidance to industry.

Identify the Objectives of the proposed standard’s requirements (What specific reliability deliverables are required to achieve the goal?):

Provide clear, unambiguous requirements and standard(s) to address the directives in FERC Order 803.

The SDT shall consider modifications, as needed, to address any FERC directives or guidance that may result from the Commission’s consideration of PRC-005-4, which is pending regulatory approval, or subsequent versions of the standard that FERC may issue directive(s) for.

Successful implementation of the revised standard will assure that the sudden pressure relays will perform as needed for the conditions anticipated by those performance requirements.

Brief Description (Provide a paragraph that describes the scope of this standard action.)

The Standard Drafting Team (SDT) shall modify NERC Standard PRC-005-43 to explicitly address the directive in Order 803 maintenance of sudden pressure relays that trip a facility as described in the Applicability section of the Reliability Standard. The SDT shall also consider changes to the standard that

Project 2007-17.43 (PRC-005-64) 4

SAR Information

provide consistency and alignment with other Reliability Standards. Additionally, the SDT shall modify the standard to address any directives issued by FERC related to the approval of PRC-005-43 or subseq2uent versions of the standard.

Detailed Description (Provide a description of the proposed project with sufficient details for the standard drafting team to execute the SAR. Also provide a justification for the development or revision of the standard, including an assessment of the reliability and market interface impacts of implementing or not implementing the standard action.)

The SDTs execution of this SAR requires the SDT to address the directive in FERC Order 803. The SDT will develop requirement(s) to include supervisory devices associated with auto-reclosing relay schemes to which the Reliability Standard applies. The SDT may elect to propose revisions to the standard regarding the scope of supervisory devices as an acceptable approach to satisfy the Commission directive, as proposed in the NOPR comments submitted by NERC. Specifically, NERC proposed that the scope of the supervisory devices to be encompassed in the Reliability Standard are those providing voltage supervision, supervisory inputs associated with selective auto-reclosing, and sync-check relays that are part of a reclosing scheme covered by PRC-005-3.

The SDT shall also:

1. Consider modifications as needed to address any FERC directives or guidance that may result fromthe Commission’s consideration of PRC-005-4 or subsequent versions of the standard.

2. Revise the Implementation Plans for PRC-005-2, PRC-005-3, PRC-005-4 and subsequent versions ofthe standard as needed to assure consistent and systematic implementation.

3. Modify the informative Supplementary Reference Document (provided as a technical reference forPRC-005-4) as necessary to provide application guidance to industry.

The drafting team shall:

1. Consider revising the title of the standard to appropriately include sudden pressure relays.

2. Consider modifying the Purpose of the standard as necessary to address sudden pressure relays.

3. Consider revising the definition of Protection System, or creating a new definition for theapplicable sudden pressure relays.

4. Modify the Applicability section of the standard as necessary.

5. Revise or add requirements as necessary.

6. Modify or create additional tables within the standard to include maximum intervals andminimum activities appropriate for the devices being addressed, with consideration for the

Project 2007-17.43 (PRC-005-64) 5

SAR Information

technology of the devices and for any condition monitoring that may be in place for those devices.

7. Modify the measures and Violation Severity Levels as necessary to address the modifiedrequirements.

8. Modify Section C ‘Measures’ or Section D ‘Compliance’ of the standard, as needed, to addressthe 24-year record retention issue.

9. Consider modifications as needed to address any FERC directives that may result from theCommission’s consideration of PRC-005-3.

10. Revise the implementation elements for PRC-005-2 and PRC-005-3 as needed to assureconsistent and systematic implementation.

11. Modify the informative Supplementary Reference Document (provided as a technical referencefor PRC-005-3) to provide the rationale for the maintenance activities and intervals within the modified standard, as well as to provide application guidance to industry.

Reliability Functions

The Standard will Apply to the Following Functions (Check each one that applies.)

Regional Reliability Organization

Conducts the regional activities related to planning and operations, and coordinates activities of Responsible Entities to secure the reliability of the Bulk Electric System within the region and adjacent regions.

Reliability Coordinator Responsible for the real-time operating reliability of its Reliability Coordinator Area in coordination with its neighboring Reliability Coordinator’s wide area view.

Balancing Authority Integrates resource plans ahead of time, and maintains load-interchange-resource balance within a Balancing Authority Area and supports Interconnection frequency in real time.

Project 2007-17.43 (PRC-005-64) 6

Reliability Functions

Interchange Authority Ensures communication of interchange transactions for reliability evaluation purposes and coordinates implementation of valid and balanced interchange schedules between Balancing Authority Areas.

Planning Coordinator Assesses the longer-term reliability of its Planning Coordinator Area.

Resource Planner Develops a >one year plan for the resource adequacy of its specific loads within a Planning Coordinator area.

Transmission Planner Develops a >one year plan for the reliability of the interconnected Bulk Electric System within its portion of the Planning Coordinator area.

Transmission Service Provider

Administers the transmission tariff and provides transmission services under applicable transmission service agreements (e.g., the pro forma tariff).

Transmission Owner Owns and maintains transmission facilities.

Transmission Operator

Ensures the real-time operating reliability of the transmission assets within a Transmission Operator Area.

Distribution Provider Delivers electrical energy to the End-use customer.

Generator Owner Owns and maintains generation facilities.

Generator Operator Operates generation unit(s) to provide real and reactive power.

The Standard will Apply to the Following Functions (Check each one that applies.)

Purchasing-Selling Entity

Purchases or sells energy, capacity, and necessary reliability-related services as required.

Market Operator Interface point for reliability functions with commercial functions.

Load-Serving Entity Secures energy and transmission service (and reliability-related services) to serve the End-use Customer.

Project 2007-17.43 (PRC-005-64) 7

Reliability and Market Interface Principles

Applicable Reliability Principles (Check all that apply).

1. Interconnected bulk power systems shall be planned and operated in a coordinated mannerto perform reliably under normal and abnormal conditions as defined in the NERC Standards.

2. The frequency and voltage of interconnected bulk power systems shall be controlled withindefined limits through the balancing of real and reactive power supply and demand.

3. Information necessary for the planning and operation of interconnected bulk power systemsshall be made available to those entities responsible for planning and operating the systemsreliably.

4. Plans for emergency operation and system restoration of interconnected bulk power systemsshall be developed, coordinated, maintained and implemented.

5. Facilities for communication, monitoring and control shall be provided, used and maintainedfor the reliability of interconnected bulk power systems.

6. Personnel responsible for planning and operating interconnected bulk power systems shall betrained, qualified, and have the responsibility and authority to implement actions.

7. The security of the interconnected bulk power systems shall be assessed, monitored andmaintained on a wide area basis.

8. Bulk power systems shall be protected from malicious physical or cyber attacks.

Does the proposed Standard comply with all of the following Market Interface Principles?

Enter

(yes/no)

1. A reliability standard shall not give any market participant an unfair competitiveadvantage.

Yes

2. A reliability standard shall neither mandate nor prohibit any specific marketstructure.

Yes

Does the proposed Standard comply with all of the following Market Interface Principles?

Enter

(yes/no)

3. A reliability standard shall not preclude market solutions to achieving compliancewith that standard.

Yes

4. A reliability standard shall not require the public disclosure of commerciallysensitive information. All market participants shall have equal opportunity toaccess commercially non-sensitive information that is required for compliancewith reliability standards.

Yes

Project 2007-17.43 (PRC-005-64) 8

Related Standards

Standard No. Explanation

Related SARs

SAR ID Explanation

Project 2007-17.43 (PRC-005-64) 9

Regional Variances

Region Explanation

ERCOT

FRCC

MRO

NPCC

RFC

SERC

SPP

WECC

Project 2007-17.43 (PRC-005-64) 10

Agenda Item 11 Standards Committee

March 11, 2015

2014 NERC Standards Audit Proposed Action Items

Action Provide a determination for items 2 and 7. Adopt recommendation for item 9.

• #2: Terms: Prompt and Substantiveo Determine whether the term “prompt” is acceptable or if action is necessary to

either remove the word from the SPM or provide a solution to address theambiguity.

o Determine whether the term “substantive” is acceptable or if action is necessaryto either remove the word from the SPM or provide a solution to address theambiguity.

• #7: Determine whether the SPM Section 4.18 should be updated to include the processfor withdrawing an appeal.

• #9: Adopt recommendation to document all Standards Committee (SC) approvals for“clean up” changes in ballot pool members in the SC minutes.

Background The results of the NERC audit were presented to the SC at its February 18, 2015 meeting. There were four items, 2, 5, 7 and 9, that NERC requested SC (SC) participation in determining a resolution. This action brings 3 of the items, 2, 7 and 9, to the SC for action. Items 2 and 7 require a determination of whether further action is needed, and item 9 requests adoption for documenting SC approvals.

As further background for item 2: For “prompt”, while the term suggests a fast response, the focus of the SPM is to help ensure that comments are responded to within a reasonable period of time, which may differ for each project. The term is used in Section 1.4 and 4.2 to describe drafting teams’ review of comments (… give prompt consideration to the written views…). Identifying a specific time period may be counterproductive as there may be instances where the SC and NERC agree to postpone or delay project postings, which could run afoul of the specified time period.

Dictionary.com defines “prompt” as: 1. done, performed, delivered, etc., at once or without delay: a prompt reply.2. ready in action; quick to act as occasion demands.3. quick or alert: prompt to take offense.4. punctual.

For “substantive”, which is used in Section 4.1.4, the SPM already provides sufficient information as to the term’s meaning. The term is adequately defined and there is a check in place on how the judgment call was made. Section 4.14 describes the types of changes that would be non-substantive and provides, in pertinent part:

“. . .A non-substantive revision is a revision that does not change the scope, applicability, or intent of any Requirement and includes but is not limited to things such as correcting the numbering of a Requirement, correcting the spelling of a word, adding an obviously missing word, or rephrasing a Requirement for improved clarity. Where there is a question as to whether a proposed modification is “substantive,” the SC shall make the final determination.”

As reference for item 7, Section 4.18 is provided:

“4.18: Withdrawal of a Reliability Standard, Interpretation, or Definition The term “withdrawal” as used herein, refers to the discontinuation of a Reliability Standard, Interpretation, Variance or definition that has been approved by the Board of Trustees and (1) has not been filed with Applicable Governmental Authorities, or (2) has been filed with, but not yet approved by, Applicable Governmental Authorities. The SC may withdraw a Reliability Standard, Interpretation or definition for good cause upon approval by the Board of Trustees. Upon approval by the Board of Trustees, NERC Staff will petition the Applicable Governmental Authorities, as needed, to allow for withdrawal. The Board of Trustees also has an independent right of withdrawal that is unaffected by the terms and conditions of this Section.”

Item 5 will be presented to the SC upon concurrence with the SC Process Subcommittee (SCPS).

Agenda Item 13b Standards Committee

March 11, 2015

Standards Committee Process Subcommittee Update Action Information

Background Update on SCPS activities for information and discussion. An updated Standards Committee Process Subcommittee Work Plan has been provided for reference with updates from the February 3, 2015 SCPS conference call. Additional updates from the March 10, 2015 meeting will be provided verbally.

Agenda Item 13b(i) Standards Committee

March 11, 2015

SCPS Work Plan Activities Document--March 3, 2015

Standards Committee Process Subcommittee Work Plan (SC Endorsed Project Scopes)

Task General Scope of Task Task Initiated

Target Completion

Status/Remarks

1. Modification to SC QualityReview Process Document

Team Lead: Keith Porterfield

Develop a process for conducting quality review of draft standards to fulfill the Standards Committee’s mandate to ensure quality of standards as depicted in its charter.

Task was initiated prior to use of scope documents

October 2012

TBD Ongoing. A small team including reps from SCPS, PMOS, and NERC staff is continuing to collaborate on perspectives to move forward.

2. Consensus Building and SARDevelopment

Team Lead: Ben Li

To develop a process that will facilitate the effective and efficient development of technical information and building of industry consensus leading to the Standards Committee’s acceptance/approval of the SAR for proposed standard projects.

Scope Document

June 2014 April 2015 SC Meeting

In progress. The scope for this task was approved by the Standards Committee in June 2014.

SCPS will continue to collaborate with the PMOS and NERC Staff in an effort to reach consensus prior to presenting to the SC.

3. Consolidate SC ResourceDocuments

Team Lead: Linn Oelker

To review existing drafting team resource documents under the Standards Committee’s purview, and to develop a single resources document to be used in conjunction with the Drafting Team

July 2012 a) March2014 SC meeting

3a) Completed

3b) Complete

Agenda Item 13b(i) Standards Committee

March 11, 2015 SCPS Work Plan Activities Document--March 3, 2015

Standards Committee Process Subcommittee Work Plan (SC Endorsed Project Scopes)

Task General Scope of Task Task Initiated

Target Completion

Status/Remarks

Manual to assist the drafting teams in performing their tasks:

a. Propose a list of documents to be retired, and

b. Consolidate the remaining documents on a consistent template and add in version control, and make the associated changes to the NERC Resources webpage

c. Final review and update of SC endorsed documents.

Task was initiated prior to use of scope documents

b)December 2014 SC Meeting

c) February 2015

3c) In Progress. Will go before December SC meeting for endorsement of changes and reposting on Resource webpage. Complete

Meeting planned between V. Agnew, B. Castle and L. Oelker to discuss Field Test document.

4. Improve standards development process (Assignment resulting from 2013 SC Strategic Work Plan – Task #2)

Team Lead: Joe Tarantino

To review effectiveness of the revised Standard Processes Manual approved by the FERC in June 2013, identify areas/changes that can further improve the efficiency and quality of standard development, and propose changes to the SPM as necessary.

Scope Document

January 2013

Project deferred to April 2015

Project start deferred to early 2015 to gain more data points. Project will be divided into two phases. One to gather information to identify areas of improvement and a second to determine and propose changes to the SPM, ROP, or other process documents as necessary.

Agenda Item 13b(i) Standards Committee

March 11, 2015

SCPS Work Plan Activities Document--March 3, 2015

Standards Committee Process Subcommittee Work Plan (SC Endorsed Project Scopes)

Task General Scope of Task Task Initiated

Target Completion

Status/Remarks

NERC staff to provide statistics, then collaborate to determine next steps.

5. CEAP Pilot Project

Team Lead: TBD

To conduct CEAP pilots via:

a. Conducting the CEA portion of theCEAP on the second project of thepilot. The Team will develop areport for the SC and the Industry.

b. Proposing a list of standardsdevelopment projects to conductthe CEAP on along with potentialcriteria for choosing projects for2014 and beyond and bring theseto the SC for endorsement

c. Revise the current CEAP guidelinedocument into a second generationdocument to reflect lessonslearned during the pilot and toaddress potential “benefits” ofstandard projects and bring to theSC for endorsement.

Task was initiated prior to use of scope documents

April 2012 a)March 2014 SC Meeting

b)August 2014 SC Meeting

c)April 2015 SC Meeting

5a) Completed

5b) Complete (note: proposal submitted to NERC staff in lieu of SC)

5c) In progress

In NERC Executive Management review.

Agenda Item 13b(i) Standards Committee

March 11, 2015 SCPS Work Plan Activities Document--March 3, 2015

Standards Committee Process Subcommittee Work Plan (SC Endorsed Project Scopes)

Task General Scope of Task Task Initiated

Target Completion

Status/Remarks

6. Process to improve the effectiveness of balloting

Team Lead: Laura Lee

To develop a process aiming at:

a. Maintaining an effective ballot pool

b. Managing situations where a quorum is not reached by the end of a ballot such that balloting can be conducted in the most effective and efficient manner.

Task Scope Document

December 2013

TBD 7a) In progress. Scope approved by the Standards Committee in March 2014.

7b) Completion date subject to launch of new SBS, week ending January 30, 2015

L. Lee and B. Nutter plan discussion to determine timeline.

Agenda Item 13b(i) Standards Committee

March 11, 2015 SCPS Work Plan Activities Document--March 3, 2015

Standards Committee Process Subcommittee 2014 Work Plan (Conceptual Project Stage-No Scope or Endorsement)

Proposed Task General Scope of Task Presented to SC for Project

Initiation

Scope, Development

Initiated

SC Approval of Scope *

Status/Remarks

7. SDT Training Materials

Team Lead: Monica Benson

Work with NERC Training Department to develop SDT Training Module(s)

Placeholder for Link to Draft Scope Document

November 2014

October 2014

Planned for March 2015, pending SCPS approval

An outline has been created for training modules. Once content is in place, M. Benson to provide draft PowerPoint to sub-team for feedback.

Monica and Keith developed Scope for the SDT Training document, and plan to distribute the document to SCPS via email for review and approval, in anticipation of submitting to SC March 2015 seeking approval.

8. Interpretation Process

Review existing NERC Interpretation Process for improvements

P. Heidrich to follow up with NERC legal.

SCPS plan to obtain documentation

Agenda Item 13b(i) Standards Committee

March 11, 2015

SCPS Work Plan Activities Document--March 3, 2015

Standards Committee Process Subcommittee 2014 Work Plan (Conceptual Project Stage-No Scope or Endorsement)

Proposed Task General Scope of Task Presented to SC for Project

Initiation

Scope, Development

Initiated

SC Approval of Scope *

Status/Remarks

Team Lead: Unassigned Placeholder for Link to Draft Scope Document

(procedure, reference in SPM, and 5-yr Assessment) and determine if SCPS will pursue this project.

Katherine contacted NERC Legal to determine NERC Legal rep. assigned to SCPS:

Bill Edwards

Counsel, Standards

Katherine provided contact information to P. Heidrich and will also communicate the information through the SCPS March Agenda.

P. Heidrich plans to follow up with NERC Legal further regarding

Agenda Item 13b(i) Standards Committee

March 11, 2015 SCPS Work Plan Activities Document--March 3, 2015

Standards Committee Process Subcommittee 2014 Work Plan (Conceptual Project Stage-No Scope or Endorsement)

Proposed Task General Scope of Task Presented to SC for Project

Initiation

Scope, Development

Initiated

SC Approval of Scope *

Status/Remarks

the interpretation process.

9. Resource Document Project (Phase 2)

Team Lead: Linn Oelker

Phase 2 will consist of creating a spreadsheet of all Standards Resource documents; when each was last revised, suggested review frequency and responsible party.

Placeholder for Link to Draft Scope Document

November 2014

November 2014

M. Benson to work with team members for Phase 2.

*Upon approval of project Scope, the project will be moved to the “Standards Committee Process Subcommittee Work Plan (SC Endorsed Project Scopes) section.

Agenda Item 14 Standards Committee

March 11, 2015

Standards Committee Communication Update and Activities

Action Information only.

Background Mallory Huggins will provide an update on NERC communication activities.

Agenda Item 15 Standards Committee

March 11, 2015

Feb. 4, 2015 to Feb. 27, 2015 NERC Legal and Regulatory Filings – Standards

∗ NERC’s legal and regulatory filings with the Federal Energy Regulatory Commission (FERC) related to standard development are available at http://www.nerc.com/FilingsOrders/us/Pages/default.aspx.

∗ NERC’s legal and regulatory filings with other Applicable Governmental Authorities are available at http://www.nerc.com/FilingsOrders/ca/Pages/default.aspx.

FERC FILINGS SUBMITTED SINCE LAST SC UPDATE

FERC Docket No. Filing Description

FERC Submittal

Date

RD15-1-000

Answer to Dominion Protest Regarding Proposed WECC Regional Reliability Standards

NERC and WECC jointly submit a motion for leave to answer and answer to Dominion Resources Services, Inc.'s protest regarding the December 15, 2014 joint petition for approval of proposed regional Reliability Standards VAR-002-WECC-2 and VAR-501-WECC-2.

2/26/2015

Petition of NERC for Approval of CIP Version 5 Revisions

NERC submits a petition for approval of proposed Critical Infrastructure Protection ("CIP") Reliability Standards CIP-003-6, CIP-004-6, CIP-006-6, CIP-007-6, CIP-009-6, CIP-010-2, and CIP-011-2.

2/13/2015

RM15-12-000

Petition of NERC for Approval of Proposed Reliability Standard PRC-010-1 (Undervoltage Load Shedding)

NERC submits a petition for approval of proposed Reliability Standard PRC-010-1 (Undervoltage Load Shedding).

2/6/2015

RD15-3-000 Petition of NERC for Approval of Proposed Reliability Standards PRC-004-2.1(i)a, PRC-004-4, PRC-005-2(i), PRC-005-3(i), and VAR-002-4

2/6/2015

FERC Docket No. Filing Description

FERC Submittal

Date

NERC submits a petition for approval of proposed Reliability Standards PRC-004-2.1(i)a (Analysis and Mitigation of Transmission and Generation Protection System Misoperations), PRC-004-4 (Protection System Misoperation Identification and Correction), and PRC-005-2(i) (Protection System Maintenance), PRC-005-3(i) (Protection System and Automatic Reclosing Maintenance) and VAR-002-4 (Generator Operation for Maintaining Network Voltage Schedules).

FERC ISSUANCES SINCE LAST SC UPDATE (any standard development related directives or proposed directives are noted in the summary)

FERC Docket No. Filing Description

FERC Submittal

Date

RM14-12-000

Order No. 804 Approving Reliability Standard MOD-031-1

FERC issues an order approving Reliability Standard MOD-031-1 (Demand and Energy Data) as well as proposed definitions for the terms “Demand Side Management” and “Total Internal Demand.”

• directs NERC to develop a modification to ReliabilityStandard MOD-031-1 to clarify certain obligations toprovide data to the Regional Entity and

• directs NERC to consider the compliance obligations of anapplicable entity upon receipt of a data request that seeksconfidential information.

2/19/2015

2

UPCOMING FERC FILING DATES

FERC Docket No. Filing Description

Projected FERC Filing

Date

NERC will submit a filing for approval of changes to the Texas Reliability Entity (Texas RE) Bylaws, found in Exhibit B of the Regional Delegation Agreement between NERC and Texas RE. Relevant changes include changes to the term length for members of the Member Representative Committee and to the term length for Directors.

New and Docket Nos. RM13-12-

000, RM13-14-000, and

RM13-15-000

NERC will submit a Notice of Withdrawal of pending TOP and IRO Reliability Standards and submit revised TOP and IRO Reliability Standards, including considering concerns raised by FERC in its November 21, 2013 NOPR.

Mar. 6, 2015

RD15-3-000 NERC will submit revisions to the applicability section of certain Reliability Standards for Dispersed Generation Resources (medium-priority changes).

Mar. 12, 2015

Docket No. RR09-6-003

NERC will submit the annual Standards report, Status and Timetable for Addressing Regulatory Directives, in response to NERC Rules of Procedure Section 321.6, which provides the status and timetable for addressing each outstanding regulatory directive. NERC will also provide the periodic review of Reliability Standards, as required by Section 13 of the NERC Standard Processes Manual.

Mar. 31, 2015

3

Standards Committee Expectations Approved by Standards Committee January 12, 2012

Background Standards Committee (SC) members are elected by members of their segment of the Registered Ballot Body, to help the SC fulfill its purpose. According to the Standards Committee Charter, the SC’s purpose is:

In compliance with the NERC Reliability Standards Development Procedure, the Standards Committee manages the NERC standards development process for the North American-wide reliability standards with the support of the NERC staff to achieve broad bulk power system reliability goals for the industry. The Standards Committee protects the integrity and credibility of the standards development process.

The purpose of this document is to outline the key considerations that each member of the SC must make in fulfilling his or her duties. Each member is accountable to the members of the Segment that elected them, other members of the SC, and the NERC Board of Trustees for carrying out their responsibilities in accordance with this document.

Expectations of Standards Committee Members

1. SC Members represent their segment, not their organization or personal views. Each member isexpected to identify and use mechanisms for being in contact with members of the segment inorder to maintain a current perspective of the views, concerns, and input from that segment. NERCcan provide mechanisms to support communications if an SC member requests such assistance.

2. SC Members base their decisions on what is best for reliability and must consider not only what isbest for their segment, but also what is in the best interest of the broader industry and reliability.

3. SC Members should make every effort to attend scheduled meetings, and when not available arerequired to identify and brief a proxy from the same segment. Standards Committee businesscannot be conducted in the absence of a quorum, and it is essential that each Standards Committeemake a commitment to being present.

4. SC Members should not leverage or attempt to leverage their position on the SC to influence theoutcome of standards projects.

5. The role of the Standards Committee is to manage the standards process and the quality of theoutput, not the technical content of standards.

Standards Committee Meeting Dates and Locations for 2015

The time for face-to-face meetings is based on the ‘local’ time zone. The time specified for all conference calls is based on Eastern Time.

January 21, 2015 – Conference Call | 1:00-5:00 p.m.

February 18, 2015 – Conference Call | 1:00-5:00 p.m.

March 11, 2015 – Atlanta, GA (NERC) | 8:00 a.m.-1:00 p.m.

April 15, 2015 – Conference Call | 1:00-5:00 p.m.

May 20, 2015 – Conference Call | 1:00-5:00 p.m.

June 10, 2015 – Energy Plaza, Dallas, TX | 8:00 a.m.-1:00 p.m.

July 15, 2015 – Conference Call | 1:00-5:00 p.m.

August 19, 2015 – Conference Call | 1:00-5:00 p.m.

September 23, 2015 – Atlanta, GA (NERC) | 8:00 a.m.-1:00 p.m.

October 21, 2015 – Conference Call | 1:00-5:00 p.m.

November 18, 2015 – Conference Call | 1:00-5:00 p.m.

December 9, 2015 – TBD, California (Southern California Edison or Sempra Utilities) | 8:00 a.m.-1:00 p.m.

This schedule was designed so that the SC subcommittee face-to-face meetings could occur either the afternoon (day) before or the afternoon of the SC face-to-face meetings. Scheduling of subcommittee face-to-face meetings is handled by the chairs of the subcommittees in consultation with the subcommittees’ members and NERC staff.

Agenda Item 16bStandards Committee

March 11, 2015

Standards Committee 2015 Segment Representatives

Segment and Term Representative Organization

Chair

2014-15

Brian Murphy

Manager, NERC Reliability Standards

NextEra Energy, Inc.

Vice-Chair

2014-15

Frederick Plett

Utility Analyst

Massachusetts Attorney General

Segment 1-2014-15 Laura Lee

Manager of ERO Support and Event Analysis, System Operations

Duke Energy

Segment 1-2015-16 Lou Oberski

Managing Director, NERC Compliance Policy

Dominion Resources Services, Inc.

Segment 2-2014-15 Ben Li

Consultant

Independent Electric System Operator

Segment 2-2015-16 Charles Yeung

Executive Director Interregional Affairs

Southwest Power Pool

Segment 3-2014-15 Ron Parsons

General Manager of Transmission Interconnections and Operations

Alabama Power Company

Segment 3-2015-16 John Bussman

Manager, Reliability Compliance

Associated Electric Cooperative, Inc.

Segment 4-2014-15 Frank Gaffney

Assistant General Manager of and Officer of Regulatory Compliance

Florida Municipal Power Authority

Segment 4-2015-16 Barry Lawson

Associate Director, Power Delivery and Reliability

National Rural Electric Cooperative Association

Segment 5-2014-15 Randy Crissman

Vice President – Technical Compliance

New York Power Authority

Agenda Item 16cStandards Committee

March 11, 2015

Standards Committee 2015 Roster 2

Segment and Term Representative Organization

Segment 5-2015-16 Colt Norrish

Compliance Director

PacifiCorp

Segment 6-2014-15 Andrew Gallo

Director, Reliability Compliance

City of Austin dba Austin Energy

Segment 6-2015-16 Brenda Hampton

Regulatory Policy

Energy Future Holdings – Luminant Energy Company LLC

Segment 7-2014-15 Frank McElvain

Senior Consulting Manager

Siemens Energy, Inc.

Segment 7-2015-16 Michelle D'Antuono

Manager, Energy

Occidental Energy Ventures Corp

Segment 8-2015 Open

Segment 8-2015-16 David Kiguel

Independent

Segment 9-2015 Open

Segment 9-2015-16 Open

Segment 10-2014-15 Guy Zito

Assistant Vice President of Standards

Northeast Power Coordinating Council

Segment 10-2015-16 Steve Rueckert

Director of Standards

Western Electricity Coordinating Council

Parliamentary Procedures

Agenda Item 16d

Based on Robert’s Rules of Order, Newly Revised, 11th Edition, plus “Organization and Procedures Manual for the NERC Standing Committees”

Motions Unless noted otherwise, all procedures require a “second” to enable discussion.

When you want to… Procedure Debatable Comments Raise an issue for discussion

Move Yes The main action that begins a debate.

Revise a Motion currently under discussion

Amend Yes Takes precedence over discussion of main motion. Motions to amend an amendment are allowed, but not any further. The amendment must be germane to the main motion, and cannot reverse the intent of the main motion.

Reconsider a Motion already approved

Reconsider Yes Allowed only by member who voted on the prevailing side of the original motion.

End debate Call for the Question or End Debate

No If the Chair senses that the committee is ready to vote, he may say “if there are no objections, we will now vote on the Motion.” The vote is subject to a 2/3 majority approval.

Record each member’s vote on a Motion

Request a Roll Call Vote

No Takes precedence over main motion. No debate allowed, but the members must approve by 2/3 majority.

Postpone discussion until later in the meeting

Lay on the Table Yes Takes precedence over main motion. Used only to postpone discussion until later in the meeting.

Postpone discussion until a future date

Postpone until Yes Takes precedence over main motion. Debatable only regarding the date (and time) at which to bring the Motion back for further discussion.

Remove the motion for any further consideration

Postpone indefinitely

Yes Takes precedence over main motion. Debate can extend to the discussion of the main motion. If approved, it effectively “kills” the motion. Useful for disposing of a badly chosen motion that can not be adopted or rejected without undesirable consequences.

Request a review of procedure

Point of order No Second not required. The Chair or secretary shall review the parliamentary procedure used during the discussion of the Motion.

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Notes on Motions Seconds. A Motion must have a second to ensure that at least two members wish to discuss the issue. The “seconder” is not recorded in the minutes. Neither are motions that do not receive a second.

Announcement by the Chair. The Chair should announce the Motion before debate begins. This ensures that the wording is understood by the membership. Once the Motion is announced and seconded, the Committee “owns” the motion, and must deal with it according to parliamentary procedure.

- 2 -

Voting Voting Method When Used How Recorded in Minutes Unanimous Consent The standard practice.

When the Chair senses that the Committee is substantially in agreement, and the Motion needed little or no debate. No actual vote is taken.

The minutes show “by unanimous consent.”

Vote by Voice The standard practice. The minutes show Approved or Not Approved (or Failed).

Vote by Show of Hands (tally)

To record the number of votes on each side when an issue has engendered substantial debate or appears to be divisive. Also used when a Voice Vote is inconclusive. (The Chair should ask for a Vote by Show of Hands when requested by a member).

The minutes show both vote totals, and then Approved or Not Approved (or Failed).

Vote by Roll Call To record each member’s vote. Each member is called upon by the Secretary, and the member indicates either “Yes,” “No,” or “Present” if abstaining.

The minutes will include the list of members, how each voted or abstained, and the vote totals. Those members for which a “Yes,” “No,” or “Present” is not shown are considered absent for the vote.

Notes on Voting (Recommendations from DMB, not necessarily Mr. Robert)

Abstentions. When a member abstains, he is not voting on the Motion, and his abstention is not counted in determining the results of the vote. The Chair should not ask for a tally of those who abstained.

Determining the results. The results of the vote (other than Unanimous Consent) are determined by dividing the votes in favor by the total votes cast. Abstentions are not counted in the vote and shall not be assumed to be on either side.

“Unanimous Approval.” Can only be determined by a Roll Call vote because the other methods do not determine whether every member attending the meeting was actually present when the vote was taken, or whether there were abstentions.

Majorities. Robert’s Rules use a simple majority (one more than half) as the default for most motions. NERC uses 2/3 majority for all motions.

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