Reliability Standards Update July 20, 2015 Charlotte, NC David Greene P.E. SERC Senior Reliability Engineer

Agenda Recently Filed/Approved /Standards/NOPRs 2015 Standards Enforcement Timetable Recent NERC Standards Development Activity NERC Standards Tools and Information SERC Regional Criteria Development Activity SERC Technical Committee Document Activity SERC Standards Tools and Information

Reliability Standards Recently Filed and Pending FERC Approval Standard Number Title Filing Date CIP-014-2 Physical Security 5/15/2015 PRC-004-5 PRC-010-2 Definition Protection System Misoperation Identification and Correction, Undervoltage Load Shedding, Remedial Action Scheme (RAS) 6/8/2015 CIP -14-2 FERC order 802, removes the term “widespread”, replaces with “if rendered inoperable or damaged could result in instability, uncontrolled separation, or Cascading within an Interconnection” Effective with CIP-014-1 PRC-004-5, PRC-010-2 add UVLS to Misoperations PRC-010-2 and PRC-004-5 are effective with PRC-010-1 RAS definition replaces SPS – PRC-012-2 under draft

Reliability Standards Recently Approved by FERC Title FERC Approved Future Enforceable Date PRC-001-1.1 (ii) PRC-004-2.1(i) PRC-004-4 PRC-005-2(i) PRC-005-3(i) System Protection Coordination, Analysis and Mitigation of Transmission and Generation Protection System Misoperations, Protection System Misoperation Identification and Correction, Protection System Maintenance, Protection System and Automatic Reclosing Maintenance, 5/29/2015 7/1/2016 Dispersed Generation Resource group of standards

Reliability Standards Recently Approved by FERC Title FERC Approved Future Enforceable Date PRC-019-2 PRC-024-2 VAR-002-4 Coordination of Generating Unit or Plant Capabilities, Voltage Regulating Controls, and Protection, Generator Frequency and Voltage Protective Relay Settings Generator Operation for Maintaining Network Voltage Schedules. 5/29/2015 7/1/2016 More of the Dispersed Generation Resource group of standards

Reliability Standards Recently Approved by FERC Title FERC Approved Future Enforceable Date CIP-014-1 CIP-014-2 Physical Security 11/20/2014 7/14/2015 10/1/2015 PRC-006-2 Automatic Underfrequency Load Shedding 3/4/2015 COM-001-2 Communications, 4/16/2015 FAC-001-2 FAC-002-2 Facility Interconnection Requirements, Facility Interconnection Studies 11/6/2014 1/1/2016 CIP – 014 -1 – Enforceable 10-1-2015 CIP-014-2 becomes enforceable once approved or with CIP-014-1 PRC-006-2 – adds requirement to develop a CAP if the PC UVLS plan is found inadequate. PRC-006-SERC-01 R1,2, 7,8 already enforceable COM-001-2, Interpersonal Communication: Any medium that allows two or more individuals to interact, consult, or exchange information. Alternative Interpersonal Communication: Any Interpersonal Communication that is able to serve as a substitute for, and does not utilize the same infrastructure (medium) as, Interpersonal Communication used for day-to-day operation. FAC – 001-2, FAC – 002-2 Enforceable 1/1/2016. PSS updating SERC Facility Interconnection Requirements Guideline.

Reliability Standards Recently Approved by FERC Title FERC Approved Future Enforceable Date NUC-001-3 Nuclear Plant Interface Coordination 11/4/2014 1/1/2016 PRC-005-3 Protection System Maintenance and Automatic Reclosing Maintenance 1/22/2015 4/1/2016 PRC-004-3 PRC-004-4 Protection System Misoperation Identification and Correction 5/3/2015, 5/29/2015 7/1/2016 NUC-001-3 Enforceable 1/1/2016 PRC-005-3 adds Automatic Reclosing Facilities, FERC Order 803 adds supervisory relays and voltage sensing devices – PRC-005-6 currently under draft. Proposed combination of implementations plans for PRC-005-3 through 6. stay tuned. PRC-004-3, -4 adds new Requirements in addition to the data reporting entities have been doing. SERC Regional Criteria will be updated for data reporting. No additional requirements associated with Standards’s requirements. Misoperations data reporting moving to NERC WebTads.

Reliability Standards Recently Approved by FERC Title FERC Approved Future Enforceable Date COM-002-4 Operating Personnel Communications Protocols 4/16/2015 7/1/2016 MOD-031-1 Demand and Energy Data 2/19/2015 PER-005-2 Operations Personnel Training 6/19/2014 BAL-001-2 Real Power Balancing Control Performance COM-002-4 Operating Instructions with predefined communications protocols. MOD-031-1 collect Demand, energy and related data to support reliability studies and assessments and to enumerate the responsibilities and obligations of requestors and respondents of that data. PER-005-2 – systematic approach to training BAL-001-2 - To control Interconnection frequency within defined limits. Control Performance Standard 1(CPS1), Balancing Authority ACE Limit (BAAL)

Reliability Standards Notice of Proposed Rulings (NOPR) issued by FERC Title FERC Issued NOPR Future Enforceable Date PRC-002-2 Disturbance Monitoring and Reporting Requirements 4/16/2015 Earliest 6 months PRC-005-4 Protection System, Automatic Reclosing, and Sudden Pressure Relaying Maintenance 36 months TPL-007-1 Transmission System Planned Performance for Geomagnetic Disturbance Events 5/14/2015 PRC-002-2 defines where Disturbance Monitoring capability is required and format for data reporting. 6 year implementation. PRC-005-4 add sudden pressure relaying to maintenance standard. Sudden Pressure Relaying that are installed for the purpose of detecting Faults on BES Elements (lines, buses, transformers, etc.) Sudden Pressure Relaying – A system that trips an interrupting device(s) to isolate the equipment it is monitoring and includes the following Components: Fault pressure relay – a mechanical relay or device that detects rapid changes in gas pressure, oil pressure, or oil flow that are indicative of Faults within liquid-filled, wire-wound equipment Control circuitry associated with a fault pressure relay TPL-007-1 Establish requirements for Transmission system planned performance during geomagnetic disturbance (GMD) events.

Reliability Standards NOPRs issued by FERC Title FERC Issued NOPR Future Enforceable Date EOP-011-1 Emergency Operations 6/8/2015 12 months PRC-010-1 PRC-010-2 Undervoltage Load Shedding Associated with PRC-012-2 Definition of Remedial Action Scheme EOP-011-1 Retires: • EOP-001-2.1b — Emergency Operations Planning • EOP-002-3.1 — Capacity and Energy Emergencies • EOP-003-2— Load Shedding Plans PRC-010-1,2 UVLS To establish an integrated and coordinated approach to the design, evaluation, and reliable operation of Undervoltage Load Shedding Programs. UVLS Misoperations covered in PRC-004-5 RAS replaces SPS SERC Regional Criteria and Guideline will be updated per the new RAS standard PRC-012-2 once approved, now in draft

Reliability Standards NOPRs issued by FERC Title FERC Issued NOPR Future Enforceable Date TOP-001-3 TOP-002-4 TOP-003-3 IRO-001-4 IRO-002-4 IRO-008-2 Transmission Operations Operations Planning Operational Reliability Data Reliability Coordination - Responsibilities and Authorities Reliability Coordination — Analysis Tools Reliability Coordinator Operational Analyses and Real-time Assessments 6/18/2015 Earliest 9 months for TOP-003-3. 12 months for others IRO, TOP standards

Reliability Standards NOPRs issued by FERC Title FERC Issued NOPR Future Enforceable Date IRO-010-2 IRO-014-3 IRO-017-1 Reliability Coordinator Data Specification and Collection Coordination Among Reliability Coordinators Outage Coordination 6/18/2015 Earliest 9 months for IRO-010-2. 12 months for others IRO, TOP standards continued

Reliability Standards NOPRs issued by FERC Title FERC Issued NOPR Future Enforceable Date CIP-003-6, CIP-004-6, CIP-006-6, CIP-007-6, CIP-009-6, CIP-010-2, CIP-011-2 Security Management Controls, Personnel and Training, Physical Security of BES Cyber Systems, Systems Security Management, Recovery Plans for BES Cyber Systems, Configuration Change Management and Vulnerability Assessments, Information Protection 7/18/2015 4/1/2016 CIP revisions related to FERC Order 791 In addition, the Commission proposes to direct NERC to develop certain modifications to Reliability Standard CIP-006-6 and to develop requirements addressing supply chain management.

2015 Standards Enforcement Timetable Requirements Enforcement Date MOD-032-1: Data for Power System Modeling and Analysis R1 7/1/2015 PRC-005-2: Protection System Maintenance R3,R4 (R1, R2, R5 already enforceable) 10/1/2015 COM-001-2 Communications All CIP-014-1, -2: Physical Security R1-R6 MOD-032-1 now in play R1 Planning Coordinator and each of its Transmission Planners shall jointly develop steady-state, dynamics, and short circuit modeling data requirements and reporting procedures for the Planning Coordinator’s planning area. PRC-005-2 – see implementation plan for phase in over 12 years. COM-001-2, Interpersonal Communication: Any medium that allows two or more individuals to interact, consult, or exchange information. Alternative Interpersonal Communication: Any Interpersonal Communication that is able to serve as a substitute for, and does not utilize the same infrastructure (medium) as, Interpersonal Communication used for day-to-day operation. CIP -14-2 FERC order 802, removes the term “widespread”, replaces with “if rendered inoperable or damaged could result in instability, uncontrolled separation, or Cascading within an Interconnection” Effective with CIP-014-1

2015 Standards Enforcement Timetable Requirements Enforcement Date PRC-006-SERC-01: Automatic Underfrequency Load Shedding R4-R6 10/1/2015 PRC-006-2 Automatic Underfrequency Load Shedding All FAC-001-2 Facility Interconnection Requirements, FAC-002-2 Facility Interconnection Studies 1/1/2016 NUC-001-3— Nuclear Plant Interface Coordination PRC-006-SERC-01 R1,2, 7,8 already enforceable R4-6 = implementation of the plan FAC – 001-2, FAC – 002-2 Enforceable 1/1/2016. PSS updating SERC Facility Interconnection Requirements Guideline.

2016 Standards Enforcement Timetable Requirements Enforcement Date PRC-005-3(i) — Protection System and Automatic Reclosing Maintenance (Disbursed Generation Resources, DGR) All 4/1/2016 CIP V5 Standards All, except CIP-003-5 R2 4/1/2017 BAL-001-2 – Real Power Balancing Control Performance 7/1/2016 COM-002-4 – Operating Personnel Communications Protocols PRC-005-3 adds Automatic Reclosing Facilities, (i) adds DGR. FERC Order 803 adds supervisory relays and voltage sensing devices – PRC-005-6 currently under draft. Proposed combination of implementations plans for PRC-005-3 through 6. stay tuned. BAL-001-2 - To control Interconnection frequency within defined limits. Control Performance Standard 1(CPS1), Balancing Authority ACE Limit (BAAL) COM-002-4 Operating Instructions with predefined communications protocols.

2016 Standards Enforcement Timetable Requirements Enforcement Date MOD-025-2 — Verification and Data Reporting of Generator Real and Reactive Power Capability and Synchronous Condenser Reactive Power Capability All – See Implementation Plan for 5 year phase in. 7/1/2016 MOD-031-1 — Demand and Energy Data All PER-005-2 — Operations Personnel Training PRC-004-4 — Protection System Misoperation Identification and Correction (Dispersed Generation Resources) MOD-025-2 provided requirements for Verification and Data Reporting of Generator Real and Reactive Power Capability and Synchronous Condenser Reactive Power Capability. Replaces SERC Regional Criteria, 5 year phase in 40% 2016, 60%2017, 80% 2018, 100% 2019 MOD-031-1 collect Demand, energy and related data to support reliability studies and assessments and to enumerate the responsibilities and obligations of requestors and respondents of that data. PER-005-2 – systematic approach to training PRC-004-4 adds DGR to Misoperations reporting

2016-2017 Standards Enforcement Timetable Requirements Enforcement Date PRC-019-1, -2 — Coordination of Generating Unit or Plant Capabilities, Voltage Regulating Controls, and Protection (Version 2 adds DGR) All – See Implementation Plan for 5 year phase in. 7/1/2016 PRC-024-1, -2 — Generator Frequency and Voltage Protective Relay Settings (Version 2 adds DGR) MOD-032-1: Data for Power System Modeling and Analysis R2-R4 MOD-033-1 — Steady-State and Dynamic System Model Validation All 7/1/2017 PRC-019-1,2 , PRC-024-1,2: 5 year phase in 40% 2016, 60%2017, 80% 2018, 100% 2019 MOD-032-1 – the rest of the requirements now enforceable MOD-033-1 – model validation – not short circuit.

NERC Standards Development Activity Project 2015-04: Alignment of Terms - NERC Glossary of Terms and Rules of Procedure Comments due July 27, 2015 Initial Ballot July 17-27, 2015 Project 2010-14.1 Phase 1 of Balancing Authority Reliability-based Controls: Reserves (BAL-002-2) Comments due August 20, 2015 Additional Ballot August 11-20, 2015 Project 2015-08 Emergency Operations NERC Standards Committee approved SAR posting to revise EOP-004-2, EOP-005-2, EOP-006-2 and EOP-008-1 per periodic review.

NERC Standards Development Activity Project 2015-07 Internal Communications Capabilities Modify COM-001-2 to address FERC directive from Order 808. NERC Standards Committee appointed drafting team. Project 2010-07.1 Vegetation Management Revision to FAC-003 to update Minimum Vegetation Clearance Distance (MVCD) Table 2 per test results – NERC Advisory. Project 2009-02 Real-time Reliability Monitoring and Analysis Capabilities NERC Standards Committee approved SAR posting. Project 2007-06 System Protection Coordination Phase 1 PRC-027-1 handles PRC-001-1.1(ii) R3, R4 Phase 2 proposes retirement of PRC-001-1.1(ii) R2, R5 and R6 (covered in other TOP/IRO standards). R1 move to new TOP-009. Project 2015-07 Internal Communications Capabilities - Project will address the directive from FERC Order No. 808 to modify the COM-001-2 standard or develop a new standard to address “internal communications capabilities that could involve the issuance or receipt of Operating Instructions or other communications that could have an impact on reliability.” Project 2009-02 Real-time Reliability Monitoring and Analysis Capabilities NERC Standards Committee approved SAR posting. SDT can begin work

NERC Standards Tools and Information NERC Standards Page http://www.nerc.com/pa/Stand/Pages/default.aspx U.S. Enforcement Dates U.S. Enforcement Status/ Functional Applicability spreadsheet Project Tracking Spreadsheet Projected Posting Schedule NERC Standards page is a general page on with links to standards tools. US Enforcement Dates allows sorting by regulatory status (pending approval, inactive, subject to future enforcement, etc) and gives the enforcement dates by requirement. US Enforcement Status/Functional Applicability spreadsheet allows past, present, and pending standards to be filtered by variety of characteristics, and is updated weekly Project Tracking Spreadsheet shows NERC project work plan and is frequently updated Projected Standards Posting Schedule: Weekly PDF of standards expected for posting for ballot and commenting. .

SERC Regional Criteria Development Activity MOD-025-2 Replaces SERC Regional Criteria: Verification of Generator Real and Reactive Power Capability. PRC-002-2 Memorializes SERC Disturbance Monitoring Equipment and Reporting Regional Criteria. Follow PRC-002-2 once approved. Regional Criteria will be retired with PRC-018-1 (6 year implementation). BAL-003-1 Frequency Response and Frequency Bias Setting Data Now Submitted to NERC. PRC-004-3 Adds New Requirements to Protection System Misoperations Processing. Requirements (R1-R6) and Data Submittals Are TWO Separate Activities!

SERC Procedure Development Activity PRC-004-4: Protection System Misoperation Identification and Correction: Now = Data Reporting Plus Requirements SERC Regional Criteria will be modified to a Procedure that will provide instructions for data reporting only. The only new requirements are in the new standard. Data will be reported to NERC via WebTADS tool once PRC-004-4 is effective, 7/1/2016

SERC Regional Technical Committee Document Activity Document Name SERC Committee Action Current Status Actual and Forecast Demands Reliability Review Subcommittee Proposed retirement given approval of MOD-31-1 To be presented for retirement at the 2015 fall Engineering Committee (EC) meeting Verification of Generator Real and Reactive Capability Generation Subcommittee, Dynamics Review Subcommittee Proposed retirement given approval of MOD-025-2 To be presented for retirement at the 2015 fall EC meeting

SERC Regional Technical Committee Document Activity Document Name SERC Committee Action Current Status Short Circuit Model Building Short Circuit Data Working Group (SCDWG) New Regional Criteria SCDWG will present for approval at the 2015 fall EC meeting SERC Conservative Operations Guideline Reliability Risk Team - OC New Guideline Approved by OC at 2015 summer meeting SERC Guideline Facility Connection Requirements SERC Planning Standards Subcommittee (PSS) Revision PSS has addressed comments and will present for approval at the 2015 fall EC meeting Transmission System Performance being retired due to retirement of TPL-001 through 004. The RRS will determine if a new SERC document is necessary to meet the needs of TPL-001-4 FAC being revised per FAC-001-2

SERC Regional Technical Committee Document Activity Document Name SERC Committee Action Current Status Disturbance Monitoring Equipment (DME) Installation and Reporting Requirements Protection and Controls Subcommittee (PCS) Memorialize Regional Criteria will remain as is until PRC-018-1 is retired by PRC-002-2 Special Protection System / Remedial Action Scheme (SPS/RAS) Misoperations Protection and Controls Subcommittee Revision PCS will present for approval at the fall EC meeting

SERC Standards Tools and Information SERC Standards and Regional Criteria Page Regional Standards and Criteria news Standards Committee Links Biweekly Standards Report SERC Regional Criteria and Guidelines Page

Questions? dgreene@serc1.org 704-414-5238