1. NERC and Regional Efforts to Ensure Reliability Dave Nevius, NERC Sr. VP David Cook, NERC VP & General Counsel Louise McCarren, WECC CEO Don Benjamin, NERC VP Operations

2. 2 NERC Background Formed in 1968 Ensure reliable bulk power system 10 Regional Reliability Council Members Represent all industry sectors U.S. – Canada – Mexico Independent Board Technical Committees and Staff

3. 3 Interconnections & Regions

4. 4 140 Control Areas

5. 5 18 Reliability Coordinators

6. 6 Standards Assessments Compliance Programs Operator Training and Certification Tools and Systems for Reliable Operations Critical Infrastructure Protection NERC Reliability Activities

7. 7 Existing Policies and Standards Standards not enforceable New Standards Development Process Transition to New Standards Coordination with NAESB and ISOs/RTOs Functional Model – Foundation of New Reliability Standards Reliability Standards

8. 8 Long Term (10 years) Short Term (Summer/Winter) Review of disturbances Gas-Electric Interdependency Study Electricity Supply and Demand Generator Availability Reliability Assessments

9. 9 Annual Compliance Reviews - Public Control Area Certification Audits Regional Compliance Programs WECC Reliability Management System NPCC Reliability Compliance and Enforcement Program Compliance Programs

10. 10 System Operator Certification Program Continuing Education Program Training & Certification

11. 11 Interregional Security Network Reliability Coordinator Information System System Data Exchange Electronic Transaction Tagging Interchange Distribution Calculator Transmission Services Information Network (OASIS) Tools & Systems

12. 12 Standards & Guidelines Vulnerability Assessments Electricity Sector Coordinator Information Sharing & Analysis Center Spare Equipment Database Critical Infrastructure Protection

13. 13 Need recognized in 1996 Supported by industry and government Legislation introduced in 1999 History of violations “Plan B” efforts not successful Consensus reliability legislation included in energy bill Mandatory Reliability Standards

14. 14 October 15 “near-term actions” letter to CEOs Self-certifications due December 15 Board directed NERC to audit FirstEnergy, MISO, and PJM Follow with audits of other CAs and RCs NERC Steering Group to recommend further NERC actions NERC Blackout Response

15. 15 Voltage support/reactive supply Reliability communications Computer failure response & notifications Emergency action plans & capabilities Operator training for emergencies Vegetation management Near-Term Industry Actions