Eric Baran, WIRAB Staff April 30, 2018 WIRAB’s Principles for the WECC Board of Directors on Setting Strategic Priorities Eric Baran, WIRAB Staff April 30, 2018

Background Report – Reliability Risk Priorities for the Western Interconnection (August 2017) WIRAB Advice to the NERC Board of Trustees on the 2017 ERO Reliability Risk Priorities Report (January 2018) WIRAB Staff’s participation in WECC’s Reliability Workshop (March 2018) WIRAB Advice to the WECC Board of Directors on Setting Strategic Priorities (April 2018)

Today’s Messages Risk Prioritization Follow Through Uniqueness to the West WECC’s Ability to Make an Impact Follow Through Who? What? When? Preliminary Reactions to Near-term Priorities

NERC Prioritization of Reliability Risk Profiles Inherent Risk Mapping Risk Profiles More Changing Resource Mix BPS Planning Resource Adequacy Increasing Complexity in Protection and Control Systems Human Performance and Skilled Workforce Loss of Situational Awareness Extreme Natural Events Physical Security Vulnerabilities Cybersecurity Vulnerabilities Risk Mapping Higher Likelihood, Higher Impact Higher Likelihood, Lower Impact Lower Likelihood, Higher Impact Lower Likelihood, Lower Impact 1 2 3 4 5 6 7 8 9 9 1 3 2 6 Impact to BPS Reliability 8 4 7 5 Less More Likeliness of BPS-wide Occurrence

Criteria for Risk Prioritization for WECC Uniqueness to the West WECC’s Ability to Make an Impact

WIRAB Risk Prioritization for WECC   WECC’s Ability to Make an Impact Less Ability More Ability Uniqueness to the Western Interconnection More Unique Loss of Situational Awareness  Extreme Natural Events Resource Adequacy and Performance   Increasing Complexity in Protection and Control Systems Changing Resource Mix Physical Security Vulnerabilities Bulk-Power System Planning Less Human Performance and Skilled Workforce Cybersecurity Vulnerabilities 6 7 3 4 1 8 2 Increasing Prioritization 5 9

WIRAB’s Top Risks for WECC to Address Changing Resource Mix BPS Planning Resource Adequacy and Performance Increasing Complexity in Control Systems Loss of Situational Awareness

All Risk Profiles are Important Monitor Extreme Natural Events Human Performance & Skilled Workforce Participate & Support Cyber Security Physical Security Initiate & Study Changing Resource Mix BPS Planning Resource Adequacy & Performance Loss of Situational Awareness Increasing Complexity of Protection & Control Systems

WECC Board Follow Through on Top Priorities Who should be directed to take action? What is the deliverable they should provide? When will this be provided? How is left to WECC management and committees. How may have WECC budget implications. The WECC Board should adopt a small set of Follow Through Action Items

Suggested Board Actions for Follow Through Changing Resource Mix: Direct the WECC RAC to complete a reliability assessment of frequency response in 2028 (under a changed resource mix) by the end of 2019. Direct the WECC RAC to collect data on current and future penetrations of Distributed Energy Resources (DER) in the West by the end of 2020. Direct WECC Management to develop probabilistic modeling capability to assess resource adequacy in 2028 (under a changed resource mix) by the end of 2020.

Suggested Board Actions for Follow Through Increasing Complexity in Control Systems: Direct WECC Management to complete a information request of generator control settings (inverter, governor, and plant) to determine if additional outreach and guidance is warranted by the end of 2019. Loss of Situational Awareness: Direct a WECC OC task force to provide a report on potential seams issues created by multiple RCs by the end of 2019.

Preliminary Reaction to Near-Term Priorities Near-term priorities proposed by the WECC team: Align with those identified by WIRAB Narrow the focus of the Risk Profiles Near-term priorities could be more effective by: Clarifying the scope of what action will be taken Clarifying who will conduct the work Clarifying when the work will be completed

Thank You Eric Baran ebaran@westernenergyboard.org 303-573-8910 x 7