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2. 2 NERC Bulk Electric System (BES) Definition (NERC Glossary of Terms Used in Reliability Standards) FERC Order 693 FRCC Handbook Review Task Force Involvement FRCC Operating Reliability Subcommittee Involvement History

3. 3 The NERC Glossary of Terms Used in Reliability Standards Bulk Electric System (BES) As defined by the Regional Reliability Organization, the electrical generation resources, transmission lines, interconnections with neighboring systems, and associated equipment, generally operated at voltages of 100 kV or higher. Radial transmission facilities serving only load with one transmission source are generally not included in this definition.

4. 4 FERC Order 693 In Order 693, Paragraph 77, FERC directed NERC to provide them with a complete set of regional definitions of the bulk electric system and any regional documents that identify critical facilities to which the Reliability Standards apply (i.e. facilities below a 100kV threshold that have been identified by the regions as critical to system reliability). The FRCC adopted the NERC definition of the BES as the regional definition.

5. 5 FRCC Handbook Review Task Force Involvement At the August 7, 2008 FRCC Operating Committee Meeting, the development of the BES definition was assigned to the HRTF. FRCC HRTF BES Definition (at right) was provided to the OC for review. FRCC Bulk Electric System Purpose: The Bulk Electric System, as defined by the NERC Reliability Standards Glossary, provides the ability to define and specify detail on a regional basis. The general NERC definition is: “As defined by the Regional Reliability Organization, the electrical generation resources, transmission lines, interconnections with neighboring systems, and associated equipment, generally operated at voltages of 100 kV or higher. Radial transmission facilities serving only load with one transmission source are generally not included in this definition.” The FRCC Handbook Review Task Force, Operating Reliability Subcommittee and the Operating Committee are proposing to further define the definition to clarify and reduce ambiguity. The Bulk Electric System within the FRCC footprint is defined as all: Electrical generation resources (including Generator Step-Up (GSU) transformers) connected at voltages of 100kV or higher (high side of transformer). Transmission Lines and associated equipment (such as circuit breakers, line switches and electrical bus sections), operated at voltages of 100 kV or higher. Transformers (other than GSU) with both primary and secondary windings of 100 kV or higher. Reactive Power equipment operated at voltages of 100 kV or higher. The FRCC Bulk Electric System excludes: Radial Transmission Line and associated transformer(s) serving only load with one transmission source. Transformers with either the primary or secondary windings less than 100 kV (other than GSU).

6. 6 FRCC Operating Reliability Subcommittee Involvement On August 13, 2009, ORS revised the HRTF version of the BES definition. FRCC ORS BES Definition (at right) was distributed for comment. FRCC Bulk Electric System Purpose: The Bulk Electric System, as defined by the NERC Reliability Standards Glossary, provides the ability to define and specify detail on a regional basis. The general NERC definition is: “As defined by the Regional Reliability Organization, the electrical generation resources, transmission lines, interconnections with neighboring systems, and associated equipment, generally operated at voltages of 100 kV or higher. Radial transmission facilities serving only load with one transmission source are generally not included in this definition.” The FRCC Handbook Review Task Force, Operating Reliability Subcommittee and the Operating Committee are proposing to further define the definition to clarify and reduce ambiguity. The Bulk Electric System within the FRCC footprint is defined as all: Electrical generation resources (including generator step-up (GSU) transformers) connected at voltages of 100kV or higher (high side of transformer). Transmission Lines operated at voltages of 100kV or higher. Substation Facilities (such as circuit breakers, line switches, electrical bus sections, and their associated protection, telecommunications and control systems), that operate at voltages of 100 kV or higher. Transmission Lines at any voltage that are operated as Tie Line Interconnections between two separate AGC Balancing Authority Areas. Transformers (other than GSU) with both primary and secondary windings of 100 kV or higher. Reactive Power equipment operated at voltages of 100 kV or higher. The FRCC Bulk Electric System excludes: Radial Transmission Line and associated transformer(s) and reactive power equipment serving only load with one transmission source. Transformers with either the primary or secondary windings less than 100 kV (other than GSU).

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8. 8 Step 1 – Establish a joint FRCC OC/PC BES Definition Task Force (BESDTF) OC appoints Current HRTF Chair as Chair of BESDTF and HRTF members as core members. OC Chair to appoint any other OC volunteers as final OC membership representative on BESDTF by 9/9/09. Planning Committee to add representative(s) as desired to (BESDTF) by a set date. FRCC Bulk Electric System Definition Clarification Process Step 2 – Staff to initially “frame” a definition with parameters and provide to BESDTF. Voltage designation, Clarification of ‘electrical generation resources’. Comparison with NERC’s definition and the other Regional definitions/development projects to establish consistency (FERC’s vision). Development of reference documents (Appendices) to the definition (i.e. Protection Systems and Radial Transmission Lines). Step 3 – Assign the responsibility to develop an FRCC Regional Bulk Electric System (BES) definition to the BESDTF for clarification of existing definition using parameters set Step 2.

9. 9 Step 4 – BESDTF to provide further clarification to the FRCC BES Definition and associated reference documents (Appendices). FRCC Bulk Electric System Definition Clarification Process Step 5 – Post clarified FRCC BES Definition and associated reference documents for a 15 day comment period. Step 6 – FRCC BESDTF review, respond to comments and revise as necessary FRCC BES Definition and reference documents. Step 7 - Determine if further revision is needed to establish a regional consensus. Repeat Steps 5 & 6, as necessary.

10. 10 FRCC Bulk Electric System Definition Clarification Process Step 8 – Utilize the FRCC Registered Ballot Body System to conduct a straw poll of the FRCC BES Definition and reference documents. Step 9 – Present the final version of the FRCC BES Definition and reference documents to the FRCC Operating and Planning Committees for approval. Step 10 – Present to the FRCC Board of Directors for approval. Step 11 – File with NERC & FERC for informational purposes.

11. 11 FRCC Standards Home Page

12. 12 FRCC Regional BES Definition Project Page

13. 13 Other Regional Entity BES Definitions and Development Projects Filed Regional BES definition with Regulatory Agencies: Northeast Power Coordinating Council, Inc. Adopted NERC definition of the BES as the regional definition: Midwest Reliability Organization (MRO) Southeast Electric Reliability Corporation Southwest Power Pool Texas Regional Entity Established a regional definition of the BES with supporting documents: Reliability First Regional BES definition projects in progress: Western Electricity Coordinating Council

14. 14 Establish consensus for the foundation of the Regional BES Definition. Establish consensus for the associated Appendices (clarification of Protection Systems and Radial Lines). Develop ‘Comment’ form to support regional posting of draft definition. Respond to comments received during posting period.