Coordinate Operations Standard Jason Shaver Standard Drafting Team Chair September 29, 2005

Presentation Overview Proposed Standards Key Concepts Supporting Standards Key Requirements V0 Retirements Effective Dates Questions During this presentation I’ll provide an overview of the proposed standards, including the concepts behind standards A review of the key requirements Information about the changes we’ve proposed to Version 0 standards And a timeline for becoming compliant with the standards. At the end, we’ll have a question and answer period.

Coordinate Operations Standards: IRO-014 Procedures, Process or Plans to Support Coordinate Between Reliability Coordinators IRO-015 Notification and Information Exchange Between Reliability Coordinators IRO-016 Coordination of Real-Time Activities Between Reliability Coordinators There are three standards in this set. IRO-014 requires Reliability Coordinators to develop, distribute, and maintain procedures that require notification, information exchange or coordination involving multiple Reliability Coordinators. IRO-015 requires Reliability Coordinators to make notifications and exchange information with other Reliability Coordinators IRO-016 requires Reliability Coordinators to coordinate their actions with other Reliability Coordinators in real time

Key Concepts Purpose & Scope Ensure RC’s operations are coordinated such that there’s no adverse impact on other RCs Preserve the reliability benefits of interconnected operations Focus solely on RC to RC coordination The purpose of this set of standards was to ensure that Reliability Coordinators worked together so that – Actions in one RC area will not have an adverse impact on another RC area And – to preserve the reliability benefits of interconnected operations This set of standards focuses solely on RC to RC coordination – as established with the SAR for this set of standards

Key Concepts: Build on Other Standards Other Standards Require: Each RC must be Certified Each RC must have procedures, processes & plans for its own area Each RC must monitor & direct others to protect its own area This set of standards was built on the assumption that RCs would be certified – and would have agreements, tools, procedures, etc in place to have the ‘ability’ to operate reliably This set of standards assumes that each Reliability Coordinator has procedures to ensure reliable operation of its RC area And this set of standards assumes that each Reliability Coordinator can monitor and direct other entities in its RC area to support reliability

Key Concepts: Require RC to RC Cooperation Agree to take actions under specified conditions (documented in procedures, processes, plans) Exchange information Notify others of impactive conditions or events Coordinate actions This set of standards requires coordination in different timeframes, and under different conditions In advance – RCs need to agree to take specific actions under specific conditions – these ‘agreement’s need to be documented in either procedures, processes or plans – the standard doesn’t require any specific type of document so that if entities already have these agreements documented, they won’t need to modify what they already have to meet this standard In real time – for normal, abnormal and emergency conditions – the RCs must exchange information, notify one another, and coordinate actions

IRO-014 Procedures, Processes, Plans Ensure documents address all required topics Have agreement from those who will take actions Have latest version of each document available to system operators (includes those developed by other RCs) Company-specific version of documents developed by other RCs may be developed to support (not replace) an RC to RC document Available to system operators Reference source document Support source document Let’s look at the first of the three standards in a bit more detail. IRO-014 requires the RC to have procedures, processes or plans – any of these types of documents is ‘ok’ There is a list of required topics that must be addressed and we’ll show the list on the next slide To be compliant, the RC has to have documents addressing all the required topics – and there needs to be some evidence that other RCs have agreed to take the actions identified in the document. If you have a procedure that requires joint operation with your adjacent RC, then you must have evidence that the adjacent RC is in agreement to take the actions identified in that procedure. To be compliant, the RC must have the latest version of these documents available to its system operators – the documents aren’t any good if they’re never provided to the people who must use them If you have a document developed by another RC, and you want to write a supporting procedure that identifies more specifically what you want your system operators to do, then the supporting procedure also needs to be available to system operators, and it needs to reference and support the actions identified in the original procedure.

IRO-014 Procedures, Processes, Plans Documents that require notification, information exchange or coordination involving multiple RCs ‘Impactive’ operating scenarios Other activities: Communication and real-time notifications Energy and capacity shortages Outage information Voltage control Information exchanged to support reliability assessments Here’s the list of documents that are required: These are all documents that require one Reliability Coordinator to: Notify one or more Reliability Coordinators of some condition Exchange information with one or more Reliability Coordinators Coordinate actions with one or more Reliability Coordinators These documents address scenarios in one Reliability Coordinator Area that may be impactive on another RC’s Area – and they must include: Communications and real time notifications Energy and capacity shortages Outage information Voltage control, and Information exchanged to support reliability assessments

IRO-015 Notifications & Information Exchange Follow approved procedures: Notify other RCs of impactive issues Participate in agreed-upon conference calls and other communications forums Provide reliability-related information upon request The second standard in this series requires RCs to notify one another and exchange information To be compliant, the RC must follow its procedures for making notifications and exchanging information And – the RC must provide reliability-related information when it is requested by another RC – the intent is to ensure that all RCs have the reliability-related information they need to make real-time operating decisions.

IRO-016 Coordination RC that identifies a problem notifies impacted RCs RCs involved agree on problem, solution, actions –document actions & notify others If RCs disagree – each re-evaluates conflicting information, takes action to preserve RC Area and Interconnection, documents actions & notifies others The last standard in this series requires real-time coordination between Reliability Coordinators. To be compliant, when there is an operating scenario that requires coordination between Reliability Coordinators, the involved Reliability Coordinators need to communicate with one another, agree on the problem and its solution, and then take the agreed upon actions and make agreed upon notifications – the actions taken need to be documented, which is normal practice in most companies If Reliability Coordinators disagree on an operating problem or its solution, as occurred during the 2003 Blackout, then each Reliability Coordinator must investigate its information sources to determine if it has correct information – if the disagreement can’t be resolved, each Reliability Coordinator must take actions to preserver its area and the Interconnection – and must document its actions and notify other Reliability Coordinators – this ensures that other Reliability Coordinators will be aware of the problem and can prepare to take actions if needed.

Blackout Findings: Need to communicate emergency conditions to neighbor systems These standards: Require a procedure (agreed-upon with other RCs) for making notifications Require following procedure in making notifications of anything ‘impactive’ to another RC’s Area Require participation in agreed-upon conference calls and other communications forums Some of the work on this standard was shaped by the blackout findings – including the need to communicate emergency conditions to neighbor systems or areas. This set of standards forces Reliability Coordinators to agree with other Reliability Coordinators on the conditions under which one RC will notify other RCs – and the process for making the notification, whether this will take place using the RCIS or the NERC Hotline or some other format – and the information to be exchanged Having the procedures isn’t enough – the Reliability Coordinators must follow their agreed-upon procedures for making notifications of anything that is impactive to another RC area And, Reliability Coordinators must participate in agreed-upon conference calls or other communication forums for exchange of information. The standard allows the Reliability Coordinators to set the frequency for these information-exchanges, but sets a minimum frequency of at least once a week.

Implementation Plan – Revise V0 COM-002 Communications and Coordination EOP-002 Capacity and Energy Emergencies IRO-003 RC – Wide Area View IRO-004 RC – Operations Planning IRO-005 RC – Current Day Operations TOP-005 Operational Reliability Information There are 6 Version 0 Standards that address some of the same topics as the set of proposed Coordinate Operations Standards. We’ll go through each of these and just briefly identify why the Version 0 requirement should be either retired or revised. We won’t spend much time on these – I encourage you to read the full implementation plan that’s posted on the web site along with these standards.

COM-002 Communications & Coordination Revise/retire requirements R2., R2.1, R2.2, R2.3 for RC to relay information to other RCs for a select set of scenarios New standards require RCs to relay information to one another for a wider scope of scenarios

EOP-002 Capacity & Energy Emergencies Retire/revise requirements R2 and R4 for RC to implement its capacity and energy emergency plan & inform other RCs New standards require RCs to coordinate the development and implementation

IRO-003 RC – Wide Area View IRO-005 Current Day Operations Retire/revise requirements (IRO-003 R2 and IRO-005 R11) to notify neighboring RC of operational concerns in the neighboring RC Area New standards require notification and cooperation in resolving the operational concern

IRO-004 RC – Operations Planning Retire requirement R6 for RC to initiate a conference call if warranted based on a reliability analysis New standards require RCs to initiate conference calls for a wider array of scenarios

IRO-004 - RC – Operations Planning Modify the RCs requirements to issue alerts (IRO-004 R7 and IRO-005 R15) New Standards require notifications for a wider array of scenarios – alerts may not be practical for all situations – new Standards don’t reference a specific tool

IRO-005 RC – Current Day Operations Retire part of R7 that requires the RC to participate in NERC hotline discussions New Standards require participation in a wider array of communications for a more specific set of scenarios – new Standards don’t reference a specific tool

IRO-005 RC – Current Day Operations Retire part of R9 that requires the RC to coordinate with other RCs to develop action plans for exceeding limits and to coordinate outages New Standards require coordination be agreed upon in advance and then coordinated per agreement for a wide array of scenarios, including limits and outages

IRO-005 RC – Current Day Operations Retire parts of R12 that require the RC to be aware of the impact of a special protection system on inter-area flows New Standards require the RCs to have procedures that address issues in one RC Area that may have an adverse reliability impact on other RC Areas

TOP-005 Operational Reliability Information Retire requirement (R5) for the RC to share data needed for reliability assessments and coordination of operations New Standards require coordination be agreed upon in advance and then coordinated per agreement for a wide array of scenarios, including coordination of info needed for reliability assessments

Effective Dates 1st Ballot Oct 4 – 13, 2005 2nd Ballot Oct 21-31, 2005 BOT Adoption Nov 1, 2005 Effective Nov 1, 2006 RCs have 1 full year to become compliant If the balloting begins as scheduled on October 4 – we’ll have the results of the 1st ballot back on the 14 – the drafting team is going to meet on the 19th to review the comments submitted with the first ballot If most balloters support the standards, and the suggested changes are format issues, typographical or spelling errors, etc, then the second ballot will begin on October 21. The standards will go to the Board for adoption on November 1 – and Reliability Coordinators will have a year to become fully compliant. While this seems like a long time, stakeholders asked for this time so that they could ensure they have all the ‘agreements’ needed from other RCs on those procedures addressed in IRO-014.

Questions Are there any questions?