3353 Peachtree Road NE Suite 600, North Tower

Atlanta, GA 30326 404-446-2560 | www.nerc.com

NERC TOP Certification Final Report Montana Alberta Tie Line, LLP (MATL) NCR(TBD)

Site Visit Conducted April 23-24, 2013 Report: August 4, 2013

ii Table of Contents

Table of Contents

Table of Contents .............................................................................................................................ii

Introduction .................................................................................................................................... 1

Certification Team ........................................................................................................................... 2

Objective and Scope ....................................................................................................................... 3

Overall Conclusion .......................................................................................................................... 4

Certification Team Determinations: ............................................................................................... 5

Items Requiring Completion ....................................................................................................... 5

Findings ....................................................................................................................................... 5

Positive Observations ..................................................................................................................... 6

Company History - Background ...................................................................................................... 7

Corporate .................................................................................................................................... 7

System Overview ........................................................................................................................ 7

Company Details – Operating Facility ............................................................................................. 8

Control Center / SCADA System Description .............................................................................. 9

NWMT Company Details 10

Documentation List ....................................................................................................................... 13

Attachment 1 – Certification Team............................................................................................... 14

TOP Certification Team ............................................................................................................. 14

MATL Personnel ...................................................................................................................... 144

NWMT Personnel .................................................................................................................... 145

Attachment 2 – Certification Process Steps ................................................................................. 16

Documentation Review ............................................................................................................ 16

Applications Review .................................................................................................................. 16

Rev 0 – TOP Certification of Montana Alberta Tie Line, LLP iii

Attachment 3 – Certification Team Findings – Needed for Operation ......................................... 17

Introduction

1 Rev 0 -TOP Certification of Montana Alberta Tie Line, LLP

Introduction This report presents the results of the WECC led Certification Team’s (CT) efforts to endorse Montana Alberta Tie Line, LLP (MATL) (NCRtbd) as a Transmission Operator (TOP) in the WECC Region certified by the North American Electric Reliability Corporation (NERC).

TOPs have a primary responsibility for maintaining the real-time reliability of the local transmission system, and operate, or direct the operations of the transmission facilities. Acceptable reliability levels can be maintained only if the TOPs, and other entities that make up the Interconnection, function in accordance with good operating practices and reliability criteria defined by the NERC Reliability Standards. Good operating practices include, but are not limited to, full compliance with the NERC Reliability Standards without regard to economic consideration or burdening neighboring systems.

Certification Team

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 2

Certification Team Following notification of MATL’s request for certification and registration as a TOP, a CT was formed and a review date was selected to perform an on-site visit. The rosters for members of both the CT and the MATL and NWMT participants are listed in Attachment 1.

Objective and Scope

3 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

Objective and Scope The objective of the CT review was to assess MATL’s processes, procedures, tools, training and personnel that allow it to perform the function of a TOP. The CT also reviewed the SOCC Service Agreement relationship that exists between MATL and it’s adjacent BA, NorthWestern Corporation (NWMT). The scope of the review included: (1) interviewing both MATL and NWMT’s management teams and reviewing pertinent documentation for verification of basic requirements for TOP operation; (2) reviewing procedures and other documentation developed by MATL to meet the applicable standards/ requirements; (3) interviewing NWMT’s system operations personnel; (4) reviewing MATL’s primary capabilities, Energy Management System (EMS), communication facilities, operator displays, etc., and (5) performing other validation reviews as considered necessary. An on-site review was held at the NWMT’s primary Control Center (PCC) on April 23-24, 2013.

Overall Conclusion

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 4

Overall Conclusion The certification process was completed in reasonable accordance with the NERC Rules of Procedure (ROP) to determine if MATL has the necessary processes, procedures, tools, training and personnel to perform the function as a NERC-certified TOP, in addition to a SOCC Services agreement in place with NWMT. MATL and NWMT presented evidence related to the applicable standards/requirements for the CT to review. Based on this evidentiary review, the CT has reasonable assurance that MATL has the processes, procedures, tools, training and personnel in place to reliably perform the TOP function.

Therefore, the CT recommends that Western Electricity Coordinating Council (WECC) approve certification of MATL as a NERC-certified TOP, and forward such approval to NERC for final review and approval.

The CT found the NWMT operators to be equipped with the necessary operating tools, and they are prepared to perform the TOP operations. NWMT’s system operators are NERC-certified operators which they currently have 16 and 2 trainees split up into 4 crews.

Certification Team Findings – Needed for Operation

5 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

Certification Team Determinations Items Requiring Completion At the conclusion of the site visit, a number of items were agreed that required completion prior to the certification of MATL as a TOP and a schedule for completion was agreed. The list of these items is included as Attachment 3. As noted in Attachment 3, evidence of completion of these items was provided to the CT for review and confirmation. Each item was closed to the satisfaction of the CT prior to the issuance of this Final Report.

Findings No findings which would prevent MATL from being certified as a NERC-certified TOP were identified by the CT as of the issuance of this Final Report.

Positive Observations

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 6

Positive Observations

• MATL’s documentation presentation was exemplary • NWMT has a well defined and continuous succession plan for the

Operating Arena • Excellent coordination efforts between MATL and NWMT to

complete the project • Protective Relay applications are excellent • MATL’s project team efficiency is excellent

Positive Observations

7 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

MATL Company History - Background Corporate and System Overview Overview

• The Montana-Alberta Tie Line (MATL) will be the sole element in the new Alberta-Montana path

• 345 km (214 miles) - 230 kV transmission line connecting Alberta Interconnected Electric System (AIES) through AtlaLink ‘s new Picture Butte substation near Lethbridge, Alberta to NorthWestern Energy substation in Great Falls, Montana

• MATL’s path rating 325 (south)/300 (north) MW metered at 120S

Attributes

• There is no load directly connected to the MATL system and MATL is not a Load Serving Entity (LSE) and has no load serving obligations

• MATL is not an owner or operator of any electric distribution facilities

• MATL has no ownership or operational control of generation supply resources and is not a Purchasing-Selling Entity (PSE)

• MATL is not a Balancing Authority and does not provide any generation-based ancillary services under its Open Access Transmission Tariff

• Construction north of Hwy 61 began January 2013

• Construction completed August 2013

Company History - Background

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 8

Overview

• Four stations

o MATL 120S

o Hay Lake

o Marias

o Great Falls

• PST at MATL 120S

Positive Observations

9 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

• Wind interconnection at Hay Lake

• Series Compensation at Hay Lake and Marias

Control Centre Services - NWE

• NWE will perform system control, monitoring , switching and reactive device control on the Montana portion

• Monitoring of all breakers located at Marias, Hay Lake and Great Falls 230 kV substations

• NWE will maintain primary and back-up control centre and NERC certified operating personnel

Company Details – Operating Facility

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 10

NWMT Company Details – Operating Facility Corporate NorthWestern Energy’s operations Regulated electric and natural gas distribution, transmission, and energy supply in Montana, South Dakota and Nebraska. • In WECC, NorthWestern Energy is registered as – BA, TOP, TO, TP,TSP, PA, GO, RP, PSE, DP and an LSE. • 1997 - Retail Access implemented in Montana (the utility was then known as the Montana Power Company). • 1999 - Montana Power sold its Generation Assets to PPL Montana. • 2002 - NorthWestern Energy purchased Montana Power’s transmission and distribution company. • 2007 - House Bill 25. – Largely repealed Retail Access, leading the way for NorthWestern Energy to once again provide fully integrated retail electric service to its customers in Montana and own rate-based generation. – However, most large customers (5 MW and greater) remain choice customers. NorthWestern Energy Generation: Colstrip Unit 4 (222 MW) placed into rate base effective January 2009. • Additional resources needed to serve “native load” purchased from generators internal and external to NorthWestern Energy’s Montana Balancing Area. • NorthWestern Energy and PPLM have entered into a Reciprocal Sharing Agreement on Colstrip Units 3 and 4. – In affect, the combined ownership of PPLM Colstrip Unit 3 and NorthWestern Energy’s Unit 4 is shared operationally. This enhances operational reliability for both entities. • NorthWestern Energy’s Energy Supply Function responsible for serving our “native” load in Montana. – The Energy Supply Function is the PSE and LSE for NorthWestern Energy. • NorthWestern Energy placed the Dave Gates Generating Station near Anaconda, MT into service on Jan. 1, 2011. – A gas fired generating station used to meet regulation requirements. System Overview NWE provides electric and/or natural gas to 349 cities • Territory includes Montana, South Dakota and Nebraska • 668,300 total customers served • Montana (NWMT) Balancing Authority Area – 521,500 customers in 187 communities – 97,540 square mile area – Summer or winter peaking – Most recent peak 12/15/08 (1,805 MW) • Transmission & Distribution (T&D) – Primarily regulated electric and gas utility operating in Montana.

Company Details – Operating Facility

11 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

– Overlapping service territories cover roughly 107,600 square miles, approximately 73 percent of Montana – One of the country’s largest utilities in terms of territory • Approximately 668,300 customers – 400,500 electric – 267,800 natural gas • Provide electric and/or natural gas services to 349 cities in the western two-thirds of Montana, eastern South Dakota and central Nebraska Control Center / SCADA System Description NorthWestern Energy Transmission (NWMT) – BA and TOP Functions in the same Control Room – Control Room a.k.a. SOCC (Systems Operations Control Center) and BUCC (Back Up Control Center) – Located in Butte, Montana •Staffing – Rotating 12 hour shifts. Staffed 24/7 – Current staff of 18 NERC Certified System Operators provide daily 24-hour coverage, which means that on any given day, 2 crews are working and 2 crews are off – 1 Systems Operations Director and 1 Transmission Services Manager – 1 Systems Operations Manager (Manager SOCC Operations) – 1 Systems Operations Supervisor (a.k.a. System Operations Lead & Supervisor of System Operations) – 1 System Operations Engineer (Outage Coordinator) – 1 Training Analyst (Trainer) – Energy Management Systems (EMS) Staff on-site (11 people) –on call support 24/7 CONTROL ROOM OPERATIONS OVERVIEW 19 • System Operators • Responsibilities

– Must be NERC-certified System Operators: Balancing, Interchange & TOP minimum – Have primary responsibility for real-time operation of the interconnected BES

• Either directly or through communications with others – Directly responsible for complying with NERC reliability standards.

• Authority – Authorized to take any action required to maintain stability of the Bulk Electric System

• During normal & emergency conditions, • Including shedding firm load • No prior approval necessary – posted policy • Shift Operating Positions

– Lead System Operator • The foreman on the crew and performs one of the positions on shift • Responsible for crew assignments • Oversees on-the-job cross training and apprentice training

Company Details – Operating Facility

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 12

Electric Scheduling Operator • Primary responsibility for BA functions • Performs AGC and ACE functions, interchange transactions, e-tagging and OASIS activities • Manages path operating limits, reserve transactions, and related postings High-voltage Switching Operator • Charged with the physical operation of the BES (100 kV and above) • Monitors system voltage and operates reactive resources • Monitors frequency, line loading (both internal and tie lines) & load service tap points, and operates phase shifters • Issues clearances, performs remote line switching, issues orders for local line switching • Maintains the map board including layout and wiring of indicator lights Low-voltage Switching Operator • Charged with the physical operation of the local transmission system (50 kV and 69 kV) • Not required by the NERC Standards to be certified. Required by NWMT for anyone performing the position w/o immediate supervision • Occasionally in-training for the High-voltage Operator position • Monitors local system voltage and coordinates with High-voltage Operator • Monitors line loading and load service tap points • Issues clearances, performs remote line switching, issues orders for local line switching • Maintains the map board including layout and wiring of indicator lights – Gas System Operator (not included in NERC-certified training program) • Not required by the NERC Standards to be certified • Must hold current DOT qualification for Transmission Operation • Monitors gas pressure, temperature, flow, additive and impurity levels, storage volume, system demand • Separate SCADA interfaces for the three states • Operated compressors, valves and regulators as required to meet demand • Communicates with field O&M staff regarding system conditions

Documentation List

13 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

Documentation List Copies of all of the supporting MATL and NWMT documents were collected as evidence of MATL’s preparedness, and will be kept as a record of evidence to support the CT’s recommendation. These documents will be retained at the WECC offices in Salt Lake City, Utah for a period of six (6) years.

None of the documents listed below are included with the distribution of this final report. Per the NERC Rules of Procedure, and due to the confidential nature of this material, these documents are available for review at the WECC offices after proper authorization is obtained through WECC and NERC:

• MATL TOP Questionnaire • MATL TOP Master Matrix • MATL and NWMT’s various TOP evidence files • Presentations made by the CT, MATL and NWMT • Internal Controls Documentation

Attachment 1 – Certification Team

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 14

Attachment 1 – Certification Team TOP Certification Team

Table 1: TOP Certification Team

Name Position Organization

Paul W. Rice Assistant Director, Operations WECC

Jack Wiseman Manager – Organization Registration and Certification NERC

Jack Bernhardsen Reliability Coordinator WECC

Paul Morland System Operation Engineer Colorado Springs Utilities

MATL Personnel

Table 2: MATL Personnel Participants

Name Position

Robert Stade Enbridge Senior Manager Engineering

Annette Hamilton Enbridge Senior Paralegal

Earl F. Cass Transmission Services Consultant

Aekam Sodhi Enbridge Engineering

Attachment 1 – Certification Team

15 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

NWMT Personnel Table 3: NWMT Personnel Participant

Name Position

Casey Johnston Director SOCC Operations and Transmission Services

Julie Reichle Manager SOCC Operations

Mike McGowan Manager Transmission Services

Andrew McClain Corporate Counsel

Patrick Powers Supervisor System Operations

Steve Shannan Supervisior EMS

Bobbie Roberts Tranmission Operator

Justin Spear Transmission Operator (Training)

Laura Cook Senior EMS Engineer

Matt Thompson EMS Engineer

Attachment 2 – Certification Process Steps

Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP 16

Attachment 2 – Certification Process Steps Documentation Review Using the TOP Questionnaire, TOP Master Matrix and documents requested based on professional judgment, the CT reviewed the appropriate documentation that provided reasonable assurance that MATL has the processes, procedures, tools, training and personnel to operate as a NERC-certified TOP.

The TOP Questionnaire template is available on NERC’s website. The TOP Master Matrix is a spreadsheet created using the VRF Matrix available on NERC’s website under the Standards link, and eliminating all functions other than the TOP function. Using the TOP Master Matrix spreadsheet, the CT cataloged the documentation evidence provided by MATL. The spreadsheet contains all the applicable NERC Standards and associated Requirements for an entity to be evaluated as a NERC-certified TOP. In the Certification Process, the CT inserted the appropriate MATL document references in which evidence provided by MATL met the applicable Standards and Requirements. Applications Review The site visit focused on documentation review, interview of NWMT’s operators, and evaluation of the TOP applications and operator toolset that NWMT has available for their operators Finally, the CT reviewed MATL’s online applications that are used to perform the TOP requirements.

Attachment 2 – Certification Process Steps

17 Rev 0 - TOP Certification of Montana Alberta Tie Line, LLP

Attachment 3 – Certification Team Findings – Needed for Operation All items listed below requiring completion prior to the certification of MATL as a TOP were closed to the satisfaction of the CT prior to the issuance of this Final Report.

o 1. Deliver specified modeling data to the Reliability Coordinator – IRO-010-1a, R3 – Documentation presented, reviewed and approved on: August 4, 2013

o 2. Ensure and assist in completion of the NWMT EMS Displays and Mimic Board in the Operating Arena – TOP-006 Documentation presented, reviewed and approved on: August 4, 2013

o 3. Upload all contracts that have been outsourced other than those with NWMT. Create an additional MATL procedure that will list each contractor and the tasks that are assigned. Documentation presented, reviewed and approved on: August 4, 2013

o 4. Complete NWMT Operator Training for the operation of MATL 230-kV line – PER-003-1, R2 Documentation presented, reviewed and approved on: August 4, 2013

o 5. Add all SOL and IROL limits to MATL 301 Documentation presented, reviewed and approved on: August 4, 2013

o 6. Add Appendix B to MATL 501 Documentation presented, reviewed and approved on: May 19, 2013

o 7. Add Appendix A to MATL 601 Documentation presented, reviewed and approved on: May 19, 2013

o 8. Revise MATL 603, figures 2, 5, 11, 13 to indicate Phase A and C wave traps Documentation presented, reviewed and approved on: May 19, 2013