Clean Power Plan & Reliability – An Update TEPPC Winter 2016 Meeting February 3 rd – 4 th 2016 Vijay Satyal PhD, Sr. Policy Analyst W ESTERN E LECTRICITY C OORDINATING C OUNCIL

WECC’s Strengths Wide-area perspective with an independent focus on electric reliability Interconnection-wide studies and assessments – Transmission and resource adequacy – Historical performance analysis and data trending – Contingency analysis Information collection and model development Coordination with and amongst various power sector stakeholders Subject matter expertise – In-house and access to external entities/resources 2 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Legal Update U.S. Court of Appeals – DC Circuit denied a request to halt implementation “until” the legality of the issue is addressed. Court fast-tracked consideration of the legality to June 2 nd – Legality of CPP. Irrespective of this outcome, expectations are high for U.S. Supreme Court to hear the case. 3 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

FERC Staff Paper (# AD ) FERC Staff issued “white paper” to support the EPA-DOE-FERC Coordination effort.white papereffort Recommends 4 principles to assist with Reliability focused planning for CPP analyses – Transparency and stakeholder engagement* – Study methodology and interactions between studies – Study inputs, sensitivities and probabilistic analysis – Tools and techniques Cites typical reliability studies to be considered in conjunction with integrated gas-electric simulations* 4 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

CNEE – Compliance Design & Evaluation 5- state model –MT, WY, UT, CO and NM Evaluate CPP compliance and design Focus to bring in other 7 western states 5 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NERC Effort: Clean Power Plan & Reliability 6 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NERC Reliability Considerations Report Focus: Inform state regulators (environmental and rate-payer), stakeholders and executive branches of reliability aspects of BES. Findings are neither “prescriptive” nor “an all- inclusive” review. Underscore the elements of reliability that states need to consider as they develop their CPP- Implementation Plans. 7 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NERC Report- 1 Core advisory team representative of different NERC regions (WECC was a member) CPP NERC taskforce reviewed report produced by core advisory team. Extra efforts taken to ensure focus on Reliability: – Costs of compliance / market design not a driver – ISO/RTO and non-ISO/RTO frameworks were given due recognition. – Sensitive to future “multi-state” compliance plans. 8 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Broader Intent- NERC Report Facilitate a dialogue as issues/need arise Engage NERC or regional entities as reliability studies are being undertaken/requested – WECC is available to assist and learn from any local/regional reliability studies – Continue to enhance internal capabilities WECC is committed to an Interconnection-wide perspective of Reliability assessment of CPP. 9 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Essential Reliability Services (ERS) Driver: Changing resource mix – Needs voltage control, frequency support and ramping flexibility ERS report offers a suite of recommendations: ERS report – Observe trends, reliability measures and recommend use of industry practices. – Options for Sys-Operators to modify real-time operations – Further examination of the forecasting, visibility, controllability and participation of DER as an active part of the electric grid. 10 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

WECC Cross-functional team Monitor CPP stakeholder processes Leverage data and analytical capabilities Provide objective regional perspective Open to feedback for future interconnection- wide impacts 11 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Resource Mix & Transmission Use System Stability Analysis Resource Adequacy & Natural Gas Sector Policy and General Oversight

Current efforts Start tracking state-level stakeholder efforts Identify issues/questions WECC may have Welcome ideas/questions about reliability studies entities especially may undertake Other options on better coordination 12 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

13 Vijay Satyal – Sr. Policy Analyst

Potential Reliability Implications of CPP Resource mix and adequacy challenges – – Are the renewable resources available on peak? – Is transmission availability adequate? System Stability – – Will path flows change across the interconnection? – Will system remain stable and within ideal “frequency” and “voltage” limits? – What unknown issues will arise? Operational effects – – Will the system have the flexibility needed to meet ramp? – Will natural gas be available when and where needed? 14 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Future Data needs Detailed information on retirements and new resources (turbine types, location, capacity factor) Specificity on attribution of multi-state compliance, if retiring units are jointly-owned or jointly-operated Renewable energy growth criteria Treatment of energy efficiency in plans Better data on intra-state and inter-state gas pipeline flows (contingency events) 15 W ESTERN E LECTRICITY C OORDINATING C OUNCIL