Reliability and Security Technical Committee Update Greg Ford, - - PowerPoint PPT Presentation

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Reliability and Security Technical Committee Update

Greg Ford, Chair Member Representatives Committee Meeting February 5, 2020

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• Approved Committee Structure
• Chair and Vice Chair, Nominating Subcommittee
• Sector Nominations
• At-Large Nominations
• Transition Plan

Discussion Topics

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• Create Reliability and Security Technical Committee (RSTC)
• Retain existing subcommittees, working groups, and task forces

Approved Committee Structure

NERC Board

OC Subcommittees, Working Groups, Task Forces

Reliability and Security Technical Committee

PC Subcommittees, Working Groups, Task Forces CIPC Subcommittees, Working Groups, Task Forces

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• The Board appointed the officers of the RSTC at the November

board meeting. Both positions are for two-year terms

• Chair: Greg Ford, Georgia System Operations
• Vice Chair: David Zwergel, MISO
• Per the RSTC proposal, the nominating subcommittee

developed a proposed slate of At-Large members to the NERC Board

• For the initial seating of At-Large members, the Nominating

Subcommittee consisted of:

• NERC Board Vice Chair
• NERC CEO
• RSTC Chair
• RSTC Vice Chair
• MRC Vice Chair

Chair, Vice Chair and Nominating Subcommittee

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• The Sector Nomination period was held November 12 – December 6,

2019

• Nominees were sought for two representatives from Sectors 1-10, 12.
• All Sector Election material can be found here:

https://www.nerc.com/comm/RSTC/Pages/2019-RSTC-Election.aspx

• The following sectors had more than two nominees:
• Sector 1 – Investor Owned Utility
• Sector 2 – State/Municipal Utility
• Sector 4 – Federal or Provincial Utility/Power Marketing Administration
• Sector 6 – Merchant Electricity Generator
• Sector 7 – Electricity Marketer
• Sector 8 – Large End Use Electricity Customer
• Sector 9 – Small End Use Electricity Customer
• Sector elections were December 9-20, 2019

Sector Nominations

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• The final Sector slate, pending Board approval at its February 6, 2020

meeting:

Sector Representatives

Sector Elected Members

• 1. Investor-owned utility

Greg Stone (Duke Energy) – 2020-2023 Kayla Messamore (Evergy) – 2020-2022

• 2. State/municipal utility

Saul Rojas (NYPA) – 2020-2023 Chris Shepherd (Gannett Fleming) – 2020-2022

• 3. Cooperative utility

Marc Child (Great River Energy) – 2020-2023 Ben Engelby (Arizona G&T Cooperatives) – 2020-2022

• 4. Federal or provincial utility/Federal

Power MarketingAdministration Robert Reinmuller (Hydro One) – 2020-2023 Edison Elizeh (Bonneville Power) – 2020-2022

• 5. Transmission dependent utility

John Stephens (City Utilities of Springfield) – 2020-2023 Carl Turner (Florida Municipal Power) – 2020-2022

• 6. Merchant electricity generator

Allen Schriver (NextEra Energy) – 2020-2023 Sheranee Nedd (Public Service Enterprise Group) – 2020-2022

• 7. ElectricityMarketer

Kyle Vander Helm (Tenaska, Inc.) – 2020-2023 Jodirah Green (ACES Power) – 2020-2022

• 8. Large end-use electricitycustomer

John Hughes (Electricity Consumers Resource Council) – 2020-2023 Venona Greaff (Occidental Chemical) – 2020-2022

• 9. Small end-use electricitycustomer

Darryl Lawrence (PA Office of Consumer Advocate) – 2020-2023 David Mulcahy (Modern Energy) – 2020-2022

• 10. Independent system operator/

regional transmission

• rganization

Wesley Yeomans (NY Independent System Operator) – 2020-2023 Christine Hasha (ERCOT) – 2020-2022

• 12. State Government

Christine Ericson (Illinois Commerce Commission) – 2020-2023 Cezar Panait (Minnesota Public Utilities Commission) – 2020-2022

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• The At-Large Nomination period was held December 27, 2019 through

January 10, 2020

• All At-Large Election material can be found here:

https://www.nerc.com/comm/RSTC/Pages/2019-At-Large-Nominations.aspx

• The Nominating Subcommittee reviewed all At-Large nominees and

recommend a slate of 10 nominees for NERC Board appointment

• Factors considered:
• Interconnection Diversity
• Canadian Representation
• Broad spectrum of entity sector/size
• Areas of expertise such as operations, planning and security

At-Large Nominations

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• At-Large Nominees, Company and Terms:
• Patrick Doyle, Hydro Quebec – 2020-2023
• David Jacobson, Manitoba Hydro – 2020-2023
• Sandra Ellis, Pacific Gas & Electric Company – 2020-2023
• Rich Hydzik, Avista – 2020-2023
• Todd Lucas, Southern Company – 2020-2023
• Wayne Guttormson, Sask Power – 2020-2022
• Lloyd Linke, WAPA, Upper Great Plains Region – 2020-2022
• Brian Evans-Mongeon, Utility Service – 2020-2022
• Jeff Harrison, Associated Electric Cooperative – 2020-2022
• Peter Brandien, ISO NE – 2020-2022

At-Large Nominations

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Transition Plan Highlights Completed

• Past meeting agenda/notes packages posted on SET web page
• https://www.nerc.com/comm/Pages/Stakeholder-Engagement-Team.aspx
• November 5, 2019 – Board approved Proposal, Charter, and

Transition Plan; appointed chair and vice chair

• November 6, 2019 – Open Sector nomination period
• December 6, 2019 – Sector nomination period ends. Sector

elections ended December 20, 2019

• December 27, 2019 – January 10, 2020 – At-Large nomination

period

• January, 2020 – Nominating Subcommittee to develop slate of

At-Large nominees for presentation to the Board

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Transition Plan Highlights Going Forward

• February 6, 2020 – Board appoints RSTC members (Sector and At-

Large). Two year terms will expire in June of alternating years following initial terms (two or three years)

• February 7–May 29, 2020 – RSTC develops transition plan and

work plans for RSTC and subcommittees

• March 3-4, 2020 – OC, PC, and CIPC will meet for final work plan

and any other approvals. The RSTC will meet March 4, 2020 for the inaugural meeting

• June 10-11, 2020 –The RSTC will hold initial regular meeting

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Future Work

• Board appointed Chair and Vice Chair will review October, 2019

Policy Input for potential implementation plan enhancements

• Chair and Vice Chair coordinating with OC, PC and CIPC

leadership on transition plan details

• Appoint Executive Committee
• More detailed Work Plan development will begin

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ERO Enterprise Effectiveness Survey Update

Kristin Iwanechko, Associate Director, Regional and Stakeholder Relations Member Representatives Committee Meeting February 5, 2020

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• Survey issued as one measure of the effectiveness of the ERO

Enterprise in executing program activities

• Reevaluated survey approach for effectiveness and efficiency
• Current approach
• Complicated
• Inefficient
• Ineffective
• Duplicative

ERO Enterprise Effectiveness Survey

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• Focus on more targeted efforts to maintain effective

engagement

• Discontinue ERO Enterprise Effectiveness Survey
• E-ISAC to conduct targeted surveys to E-ISAC members
• Compliance and Certification Committee reviewing its survey questions

and reevaluating how it receives input on stakeholder perceptions

• Continue to receive industry feedback through existing avenues
• Actively work to minimize survey burden on industry
• Coordinate the need for and timing of surveys to minimize overlaps
• Coordinate with Regional Entity survey efforts

Approach for Future Surveys

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EMP Strategic Recommendations

Howard Gugel, Vice President of Engineering and Standards Member Representatives Committee Meeting February 5, 2020

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EMP Phased Approach

Phase 1

• Strategic Recommendations

Phase 2

• Technical Committee Work

Phase 3

• Standard Drafting Team (if applicable)

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Key Task Force Milestones – Phase 1

June July August October November

• Numerous TF calls
• Face-to-face

meeting (Washington DC)

• Numerous TF calls
• Charter development
• Technical workshop (ATL)
• Develop Strategic

Recommendations

• Post for industry comment

(30 days, end of August)

• Review industry comments
• Present recommendations with

action items and next steps to appropriate committee

• Present

recommendations to Board of Trustees

Phase 2

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• EMP Task Force report to Reliability and Security Technical

Committee

• EMP Task Force priorities
• Establish performance expectations
• Provide guidance on asset hardening
• Provide guidance to industry for supporting systems and equipment for

recovery

• ERO Enterprise priorities
• Support additional research to close gaps
• Develop tools and methods for assessing electromagnetic pulse impacts

NERC Staff Recommendations

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• Agree with the recommendations?
• Agree with the priority levels?
• Additional recommendations for consideration?

Policy I nput Request

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Summary of Policy I nput

• Support EMP Task Force continuation with work plan
• Recognize boundaries
• Review December 20, 2019 US federal law
• Reconcile policy input letter and Task Force recommendations
• Potential broader scope (communications and fleet)
• Implement holistically with respect to resiliency

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Summary of Policy I nput

• Consideration of Distributed Energy Resources and battery

management systems

• Involve the Nuclear Regulatory Commission in any impact to

nuclear plants

• Global ranking should be established
• Action should be taken on all recommendations
• Reason for EMP Task Force omitted
• Responsible parties different from Task Force recommendations

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Changes based on policy input

• Add “to regularly coordinate and collaborate with governmental

authorities to procure and effectively disseminate information needed by industry” to Task Force recommendation for clarity

• Require detailed work plan
• EMP Task Force
• NERC staff

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Supply Chain Risk Assessment

Howard Gugel, Vice President of Engineering and Standards Member Representatives Committee Meeting February 5, 2020

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• Support effective and efficient implementation (e.g. CIP V5

transition)

• Supply chain risk study
• Communicate supply chain risks to industry
• Forum and Association white papers
• Plan to evaluate effectiveness of supply chain standards

Board Resolution

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• Include in Supply Chain Standards
• Electronic access controls for medium and high impact Bulk Electric System

(BES) Cyber Systems

• Physical access controls for medium and high impact BES Cyber Systems
• Do not include in Supply Chain Standards
• Electronic access monitoring and logging
• Physical access monitoring and logging
• Protected Cyber Assets(PCAs)
• Collect more data on low impact BES Cyber Systems
• Develop guidelines with CIPC Supply Chain Working Group

(SCWG)

• Application to lows
• Evaluation of PCAs

Recommendations from Study

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• Issued on August 19
• Responses due October 3
• Applicable to entities in CIP-002-5.1a
• Focused on low impact BES

Data Request I ssued

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BES Cyber Assets

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BES Cyber Assets with Medium and High

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BES Cyber Assets with Lows Only

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• Most low impact assets reside in organizations with higher

impact assets

• Many are not planning to apply supply chain risk management

plans to low impact assets

• Most low impact assets are individually lowest risk, but a

coordinated attack could impact reliability

• Significant percentage of generation resources allow third party

access

• Significant percentage of “low only” transmission stations and

substations allow third party access Observations

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• Include low impact BES Cyber Systems with remote electronic

access connectivity in future modification of Supply Chain Standards Recommendation

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• Agree with the recommendation?
• Alternate cost effective way to address the risk?

Policy I nput Request

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• Premature to act until highs and mediums implemented
• Modifications should wait until at least July 2021
• Unclear whether existing CIP-003 risk mitigation was considered
• See electronic access controls in CIP-003-7, Attachment 1
• Consider augmenting CIP-003
• Adding lows in Supply Chain Standards conflicts with CIP-002 model
• Conflicts with “no inventory” approach for lows
• Risk conclusions need more thorough technical analysis
• Additional data needed

Summary of Policy I nput

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• Coordination with entities that use third party access to have

monitoring and controls in place to limit the exposure

• Not a supply chain risk, but connectivity risk
• Focus on entry points
• Focus on risk, not a particular standard
• Survey did not take into account existing strategies

Summary of Policy I nput

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• Continual revisions add to risk
• Concern about lack of consideration of SCWG input
• Adds burden to challenged supplier/vendor relationship
• Use the NATF industry collaboration initiative
• Supply chain certification program for vendors

Summary of Policy I nput

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• Confine changes to CIP-003
• Include policies to:
• Detect known or suspected malicious communications for both inbound

and outbound communications

• Determine active vendor remote access sessions
• Disable active vendor remote access
• After implementation of Supply Chain Standards
• Evaluate effectiveness
• Consider adding supply chain policy in CIP-003 for low impact BES Cyber

Systems

Changes Based on Policy I nput

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Recent FERC Activity

Andy Dodge Director, Office of Electric Reliability Federal Energy Regulatory Commission February 5, 2020

The views expressed in this presentation are my own and do not represent those of the Commission or any individual Commissioner

NERC Five-Year Performance Assessment

• Order in RR19-7 issued 1/23/20
• Accepts NERC’s filing and finds that NERC and REs continue to satisfy

statutory and regulatory criteria for ERO certification

• Recognizes the achievements of NERC and the REs over the last five

years, including risk-based approach focusing ERO resources on matters

• f most significance to reliability
• Identifies improvements and provides directives on NERC’s:
• Provide oversight of the Regional Entities per the Rules of Procedure
• Document the process for developing and evaluating reliability and

security guidelines

• Oversight and performance metrics for E-ISAC
• Update sanction guidelines
• Develop and document the organization certification program
• Directs NERC to submit a compliance filing within 90 days and a second

compliance filing within 180 days revising its Rules of Procedure

2

Reliability Standard TPL-001-5: Transmission System Planning Performance

• Final rule issued in RM19-10-000 issued 1/23/20
• Improves upon currently-effective TPL-001-4 by providing for:
• More comprehensive study of single points of failure of protection

systems

• Stability analysis to assess the impact of the possible unavailability
• f long lead time equipment
• More complete consideration of factors for study of planned

maintenance outages

• Declines to pursue other proposals from NOPR
• Effective 60 days after publication in Federal Register

3

Reliability Standard CIP-012-1: Communications Between Control Centers

• Final Rule in RM18-20-000 issued 1/23/20
• Approves Reliability Standard CIP-012-1 because it is largely

responsive to the Commission’s directive in Order No. 822 and improves the cyber security posture of responsible entities

• Requires responsible entities to protect the confidentiality and

integrity of Real-time Assessment and Real-time monitoring data transmitted between bulk electric system Control Centers

• Directs NERC to develop and submit modifications to the Reliability

Standards to require protections regarding the availability of communication links and data communicated between bulk electric system Control Centers

• Declines to adopt other directive in NOPR regarding identification of

data

• Effective 60 days after publication in Federal Register

4

Standards Efficiency Review Phase I

• NOPR issued in RM19-16 and RM19-17 on 1/23/20
• Proposes to approve the retirement of 74 Reliability Standard

requirements associated largely with the calculation of Available Transfer Capacity

• Proposes to remand one requirement submitted for retirement by

NERC (VAR-001-6 R2) because it is the only requirement that requires the scheduling of reactive power

• Seeks additional information from NERC on two requirements

submitted for retirement (FAC-008-3 Requirements R7 and R8) regarding identifying the most limiting element of a facility and sharing facility ratings

• Comments due 60 days after publication in Federal Register

5

Compliance Filings on Reform of Generator Interconnection Procedures & Agreements

• Order No. 845 Final Rule in RM17-8 issued 2/21/19
• Adopted 10 reforms to improve certainty for interconnection

customers, promote more informed interconnection decisions and enhance the interconnection process

• Required each public utility transmission provider to submit a

compliance filing by 5/22/19

• Commission acted on first batch of filings on 11/21/19 and second

batch on 12/19/19

• Third batch of orders on compliance for Order No. 845 issued

1/23/20

• Commission partially accepted compliance filings and directing

further compliance filings for seven utilities and SPP

6

Compliance Filings on Storage Rule

• Enacted in February 2018, Order No. 841 requires RTOs and ISOs to

develop rules to remove barriers to participation of electric storage resources in the capacity, energy and ancillary services markets

• perated by RTOs/ISOs
• Each organized power market must revise its tariff to establish a

participation model with market rules to recognize the physical and

• perational characteristics of electric storage resources and facilitate

their participation in markets

• Deadline for initial compliance filings was 12/3/19
• Commission issued orders on compliance:
• NYISO, 12/19/19
• CAISO, ISO-NE and MISO, 11/21/19
• PJM and SPP, 10/17/19

7

Grid-Enhancing Technologies Workshop

• Staff-led workshop in AD19-19 held 11/5-6/19 at FERC headquarters
• Grid-enhancing technologies include, but are not limited to: power

flow control and transmission switching equipment, storage technologies and advanced line rating methodologies

• Panels addressed GETs that increase the capacity, efficiency or

reliability of transmission facilities and explored:

• How GETs are currently used in transmission planning and
• perations
• The challenges to deployment and implementation of GETs
• Regulatory approaches and actions the Commission can take to

facilitate adoption of GETs

• Post workshop comments due 2/14/20

8

• Thank you!
• Questions?

9

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Framework for Risk I dentification & Mitigation

Mark Lauby, Senior Vice President & Chief Engineer Member Representatives Committee Meeting February 5, 2020

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Declaration & Problem

• Declaration:

The Electric Reliability Organization (ERO) Enterprise requires a consistent framework to address and prioritize known and emerging reliability risks

• Problem Statement:
• ERO Enterprise has continued to lead industry in reliability and security

initiatives to identify known and emerging risks and their mitigation

• The reliability toolkit for risk mitigation the ERO currently deploys includes,

for example: webinars and conferences, lessons learned, Alerts, Guidelines, and standard development.

• A framework is needed to that provides a transparent process using industry

and ERO Enterprise experts

• Framework must include: risk identification, deployment of mitigation

strategies, to monitoring the success of these mitigations

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Six-Step Framework

• 1. Risk Identification
• 2. Risk Prioritization
• 3. Mitigation Identification and Evaluation
• 4. Mitigation Deployment
• 5. Measurement of Success
• 6. Monitor Residual Risk

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Risk I dentification

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Risk Prioritization

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Mitigation I dentification and Evaluation

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Mitigation Deployment

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Measurement of Success

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Monitor Residual Risk

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Monitor Residual Risk

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Monitor Residual Risk

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Monitor Residual Risk

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Reliability Toolkit: Guiding Principles

• 1. Reliability Standards address sustained risks with moderate impacts which

are probable, and severe impacts which are probable or improbable.

• 2. Reliability Guidelines used to address sustained risks that are probable or
• improbable. Guidelines are also used for items not in the ERO Enterprise’s

jurisdiction, or are practices that improve reliability beyond standards.

• 3. Lessons Learned used for sustain risks or a one-and-done activities with

moderate impacts and are both probable and improbable.

• 4. Alerts will be used for time sensitive information, for information, to

request action or direct action.

• 5. A combination of tools can be used towards gaining industry action, setting

the stage for standards as well as addressing a risk while a Standard is being

• developed. Likelihood, pervasiveness, and severity have a bearing when a

Reliability Standard is required.

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Reliability Tools: Risk Likelihood and I mpact

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Reliability Tools: Risk Likelihood and I mpact

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Reliability Tools: Risk Likelihood and I mpact

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Reliability Tools: Risk Likelihood and I mpact

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Reliability Tools: Risk Likelihood and I mpact

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Risk Management Timeframe

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Risk Management Timeframe

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Risk Management Timeframe

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Risk Management Timeframe

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Risk Management Timeframe

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Risk Management Timeframe

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Risk Management Timeframe

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Grid Transformation Impacts on Reliability Framework

SYLVAIN CLERMONT – Director, Operational Technologies Convergence Hydro-Québec TransÉnergie ERIC UDREN – Executive Advisor, Quanta Technology LLC HOWARD GUGEL – VP Engineering and standards,NERC MUKUND KAUSHIK – Director of Digital, Southern California Edison NERC Member Representative Committee| February 5, 2020

2 Hydro-Québec

Transformations in:

• Power generation, transmission and

distribution

• Energy consumption habits
• Utility business model

Factors contributing to this:

• Climate change
• Technology
• Desire to make power system more

efficient

• Aging infrastructures

We are in the midst of an energy transition

3 Hydro-Québec

Major Trends: the 3 Ds

DECENTRALIZATION

– Utility customers are becoming prosumers – Electric vehicles – Microgrids – Demand-side management – Solar panels, energy storage

DIGITALIZATION – Digital substations – Advanced analytics – Assets performance management – Increased infrastructure automation – Smarter grids – Increase cybersecurity

DECARBONIZATION

– Declining renewable costs – Declining Energy storage costs

4 Hydro-Québec

Possible evolutions

• 1. The introduction of a new

technological platform enabling, in particular, the remote control

• f assets (intelligent electronic

devices, IED);

• 2. The move towards dynamic

asset management;

• 3. The move towards autonomous,

adaptive, predictable and flexible operations. Possible applications

• Situational Awareness
• Internet of Things
• Dynamic State Estimators (local

and centralized)

• Numerical Twin
• Artificial Intelligence
• Dynamic Load Forecast
• Augmented Reality

Digitalization

5 Hydro-Québec

• Standards and standards development
• Compliance
• Reliability Assessments

What is the reliability framework?

6 Hydro-Québec

–Cloud-based solutions –Virtualization –Cybersecurity with Intelligent Electronic Devices (IED) –Traceability of supply chain with high level of numerical devices –Dynamic Relay Setting –Communication between substations –Flood of data –Wide area synchrophasor What are the impacts on the reliability framework?

7 Hydro-Québec

• Eric Udren
• Executive Advisor – Quanta

Technology LLC

• Howard Gugel
• VP Engineering and standards –

NERC

• Mukund Kaushik
• Director of Digital – Southern

California Edison Panelists