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**Advancing Time and Inadvertent Management Practices in Energy Sector**

This update focuses on improving Time Error Corrections (TEC) and Inadvertent Payback practices. Recent discussions with NERC and FERC show promise for alternative solutions. Stay informed on changing energy regulations.

nathan-mcneil
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**Advancing Time and Inadvertent Management Practices in Energy Sector**

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  1. NAESB Time and Inadvertent Management Business Practice Update(TIMBP) August 20, 2009 Terry Bilke

  2. Introduction • Intended to be a very targeted business practice to address multiple concerns in Order No. 693 • Originally submitted to NERC, NERC Staff and Standards Committee rejected the SAR saying Time Error Corrections (TEC) and Inadvertent Payback are NAESB’s purview • Relied on proven Time and Inadvertent management practices, comparable to the WECC automatic TEC • No ERCOT/WECC impact unless they so choose

  3. FERC’s Order No. 693 Concerns • Address number and efficiency of TECs • Concerned with frequency excursions (nearly half of reported frequency excursions occurred during TEC even though the East is in TEC 15% of the time) • Wants NERC to reduce and penalize large Inadvertent balances • Asks NERC to investigate alternatives to present TEC practices

  4. EI TEC Summary 2002 – 2009 Present Payback Method Old Payback Method

  5. Old Unilateral Payback was the Cornerstone • Unilateral Payback Option 2 > Average Frequency closer to 60 Hz > Less Inadvertent passing around > Smaller Inadvertent Balances Average Frequency closer to 60 Hz > Fewer TECs> Fewer Frequency Excursions • This Payback Option was rejected by the EC

  6. Recent Items • NERC BAC Team met with the FERC • FERC Staff appears to be open to alternatives to the Order No. 693 concerns that led to the TIMBP • This may mitigate the need for the last draft TIM business practice • TIMTF created a tracking matrix that both teams update • TIMTF is participating in BAC Team calls • As the BAC Team proposes changes to BAL-002, BAL-004, BAL-005, BAL-006; table is updated • TIMTF evaluates whether a complementary business practice is needed

  7. Potential Issue • NERC BAC may do field tests that interface with NAESB business practices • No NAESB process for field tests • Field test may cause a deviation of NAESB business practices (that are generally part of transmission providers’ tariffs) • There will likely be other similar situations in the future, looking for EC guidance

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