1. Determine Facility Ratings, SOLs and Transfer Capabilities Paul Johnson Chair of the Determine Facility Ratings Standard Drafting Team An Overview of the Set of Proposed Standards

2. Presentation Overview Proposed Standards Highlights of Standards Key Requirements & Functions Responsible Challenging Definitions Controversial Issues V0 Retirements Effective Dates Questions

3. 6 Standards 1.Document Facility Rating Methodology 2.Develop and Communicate Facility Ratings 3.Document SOL Methodology 4.Develop and Communicate SOLs 5.Document Transfer Capability Methodology 6.Document and Communicate Transfer Capabilities

4. Facility Ratings Methodology Respects most limiting equipment rating Identify method of determining rating Consideration of: Manufacturer’s ratings Design criteria Ambient conditions Operating limitations Other assumptions V0 only requires normal & emergency ratings & doesn’t identify generators End users need a ‘range’ of limits, only some of which are ‘normal’ and ‘emergency’ V0 only requires normal & emergency ratings & doesn’t identify generators End users need a ‘range’ of limits, only some of which are ‘normal’ and ‘emergency’

5. System Operating Limits Methodology Cannot exceed Facility Rating How to identify IROLs In pre and post contingency state SOLs provide: BES system stable (transient, dynamic, voltage) Facilities within Facility Ratings Facilities within thermal, voltage & stability limits Cascading outages & uncontrolled separation shall not occur V0 has no criteria for developing SOLs used in operations horizon

6. Which SOLs are Also IROLs? Some IROLs can be identified in advance – some can only be identified in real-time An IROL is an SOL that, if violated under certain conditions, could lead to one or more of the following: Cascading outages Uncontrolled separation Instability V0 doesn’t require documenting methodology for determining IROLs

7. Transfer Capabilities Methodology Respect all SOLs Consideration of: Transmission system topology System demand Generation dispatch Current and projected transmission uses V0 has no criteria for developing Transfer Capabilities

8. MethodologyWho Has or Develops? Who Sees or Receives? Facility RatingsGen Owners Trans Owners PAs TPs RCs TOPs System Operating Limits PAs RCs PAs TPs RCs TOPs TSPs Transfer Capabilities PAs RCs RROs PAs TPs RCs TOPs TSPs Key Requirements & Responsible Functions

9. ProductWho Develops? Who Receives? Facility RatingsGen Owners Trans Owners PAs TPs RCs TOPs System Operating Limits PAs, TPs RCs, TOPs PAs TPs RCs TOPs TSPs Transfer Capabilities PAs RCs RROs PAs TPs RCs TOPs TSPs Key Requirements & Responsible Functions

10. Proposed Changes to V0 Definitions Cascading Outages Contingency Interconnection Reliability Operating Limit (IROL)

11. Cascading Outages V0: The uncontrolled successive failure of system elements triggered by an incident at any location within the Interconnection. Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies. New: The uncontrolled successive loss of BES Facilities triggered by an incident (or condition) at any location resulting in the interruption of electric service that cannot be restrained from spreading beyond a pre-determined area.

12. Contingency V0: The failure, with little or no warning, of one or more elements of the transmission system. This includes, but is not limited to, generator, transmission line, transformer, and circuit breaker failures or misoperations. New: The unexpected loss of one or more BES Facilities caused by a single initiating event.

13. Interconnection Reliability Operating Limit (IROL) V0: The value (such as MW, MVar, Amperes, Frequency or Volts) derived from, or a subset of the System Operating Limits, which if exceeded, could expose a widespread area of the Bulk Electric System to instability, uncontrolled separation(s) or cascading outages. New: A System Operating Limit that, if violated, could lead to instability, uncontrolled separation, or Cascading Outages that adversely impact the reliability of the Bulk Electric System.

14. Controversial Issues Flexible planning & operating horizons Peer review Schedules for delivery set by recipients Table 1 Category C Events and SOLs Partial retirement of V0 Standards

15. Planning & Operating Horizons Planning Horizon Real Time 1 Year Ahead 4 Years Ahead 3 Years Ahead 2 Years Ahead Operating Horizon Standard requires no gaps in times covered

16. Planning & Operating Horizons Defaults: Operating Horizon = real-time up to 1 yr Planning Horizon = 1 yr and beyond Operating Horizon Planning Horizon Real Time 1 Year Ahead 4 Years Ahead 3 Years Ahead 2 Years Ahead

17. Peer Review Goal is to find a fair balance Owners rights versus impact on others ‘Allow’ but don’t ‘require’ peer review Challenges must be documented & acknowledged Threat of liability is motivator Idea from Blackout Recommendations

18. Schedules for Delivery...... to those entities that have a reliability-related need for such … and make a written request that includes a schedule for delivery of such … If you need to send limits to several different entities - deliver to all entities according to the most limiting schedule

19. Table 1 - Category C Events Category C – (Loss of 2 or more Elements) applicable to planning studies with all facilities in service In most real-time operations, one or more facilities already out of service - operate to protect the system from a 2 nd (or 3 rd or 4 th …) contingency SOLs established considering ‘Category C’ events would probably result in overly restrictive SOLs

20. Partial Retirement of V0 Standards V1 Standards started before V0 Standards No 1-to-1 relationship between V0 and V1 Does partial retirement lead to confusion?

21. Retirement of V0 Requirements TOP-004 – Transmission Security Retire two requirements FAC-004 – Methodologies for Determining Electrical Facility Ratings Retire entire standard FAC-005 – Electrical Facility Ratings for System Modeling Retire entire standard

22. R6. TOPs, individually and jointly with other TOPs, shall develop, maintain, and implement formal policies and procedures to provide for transmission reliability. These policies and procedures shall address the execution and coordination of activities that impact inter- and intra-Regional reliability, including: R 6.1. Equipment ratings. R 6.2. Monitoring and controlling voltage levels and real and reactive power flows. R 6.3. Switching transmission elements. R 6.4. Planned outages of transmission elements. R 6.5. Development of IROLs and SOLs. R.6.6. Responding to IROL and SOL violations.

23. Effective Dates – (Compliance) Assumes BOT Adopts November 1, 2005 Methodologies 6 months after BOT adoption - May 1, 2006 Ratings, Limits and Transfer Capabilities 2 months after methodologies – July 1, 2006

24. Questions