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Paradigm Shift

Paradigm Shift. Evolving NERC Standards Processes and Practices. Key Documents. Standards Committee Strategic Plan Standards Committee Strategic Work Plan 2013-2015 Reliability Standards Development Plan 2013-2015 . Standards Reform. Ultimate goal

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Paradigm Shift

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  1. Paradigm Shift Evolving NERC Standards Processes and Practices

  2. Key Documents • Standards Committee Strategic Plan • Standards Committee Strategic Work Plan 2013-2015 • Reliability Standards Development Plan 2013-2015

  3. Standards Reform Ultimate goal • Focus on reliability - ensure that industry resources invested to develop standards are worthy of the output: a stable body of world class reliability standards NERC implemented changes: • Leadershipand staff changes • Standards department reorganization • Assessing compliance – Coordination with Standards • Reliability Assessment Initiative (RAI) • Drafting RSAWs during standards development • Standing up RISC

  4. Standards Reform • NERC Board resolution – November 2012 • Accountability • Drafting Team composition • Workflow/process • Work Plan (Reliability Standards Development Plan) • Additional changes being considered by SPIG • SPIG has been reconvened to assess status

  5. Areas of Strategic Focus From Standards Committee Strategic Plan (Draft): • Transition the current body of standards – Complete the transition to a stable, world-class set of clear, concise results-based standards that ensure the reliability of the bulk power system. • FERC Directives and Recommendations from the 2003 Blackout Report– Target a filing to resolve all currently outstanding FERC directives by the end of 2013. • Five Year Review of Reliability Standards –Complete any outstanding 5-year reviews of Reliability Standards. • Finish remaining open Standard projects – Focus project management on active and inactive Standard development projects to bring closure to these projects by the end of 2013.  Closure in some instances may involve a recommendation to stop some projects, consolidate projects or roll them into the Directives project.  Projects that cannot be completed by end of 2013 will have a specified completion date agreed to by the SC.

  6. . . . continued • Paragraph 81 and Results-Based Standards concepts – Apply Paragraph 81 (retire or modify FERC-approved Reliability Standard requirements that as FERC noted, "provide little protection to the reliable operations of the BES", are redundant or unnecessary) and Results-Based Standards concepts across the above mentioned major work areas during their completion. • Existing or Emerging Issues and Reliability Risks – Address emerging risks to the bulk power system by developing high quality and technically sound Reliability Standards, as needed, and in a timely manner. • Maintenance of Existing Reliability Standards – Continue to review existing Reliability Standards to ensure the standards remain up-to-date. Provide interpretations on Reliability Standards as required in the Standards Process Manual. • Compliance Input – Provide technical expertise and feedback on NERC’s compliance program, including Compliance Application Notices (CANs), Compliance Analysis Reports (CARs) and Reliability Standards Audit Worksheets (RSAW), etc.

  7. RISC • RISC committee formed and now active. • “Reliability Issues Steering Committee” • Reports to NERC Board of Trustees • Identify and triage reliability issues • RISC solicits “nominations” of reliability issues • Can initiate a range of reliability solutions: Standards, Guidelines, NERC policies, etc. • Considers findings from system events, lessons learned, risk trends • Includes consideration of scope, prioritization, cost v. benefit, etc.

  8. RISC Membership • 12 Members • 4 from MRC • 2 at-large (stakeholders) • 5 from committees • SC, OC, PC, CIPC and CCC • Senior NERC staff (non-voting) • Geographic and sector diversity

  9. Standards Committee Strategic Work Plan 2013-2015 Key tactical recommendations: • SC is accountable to NERC BOT • Deliver high-quality and timely standards • Effective management of process • Term limits on SC leaders • Smaller, more agile, committed SDTs • No more than 10 people • Facilitator/project manager, SMEs, technical writer/lawyer • Form pool of SMEs for each standards category • NERC staff or writer “holds the pen” and consults with SDT; SDT approves draft

  10. . . . continued • Aggressively oversee and manage the workflow and effective use of the Standards development process • Address directives • Satisfy 5-year review requirement • Prioritize existing projects and emerging issues • Integrate with RISC efforts • Engage NERC technical committees • Enhanced consensus-building • New SC Project Management/Oversight committee • Address training, processes and procedures (including subgroups) • Collaborate with NERC Compliance staff

  11. Reliability Standards Development Plan 2013-2015 • Approved by BOD on 12/19/12. • Significant revision of NERC’s approach to managing the standards development workload. • Initiatives: • Paragraph 81 phase 2 • Results-based Standards • Internal Controls integration/eliminate zero-defect requirements • Concurrent development of Compliance tools, such as RSAWs

  12. NERC Technical Committees • Increased engagement between the Standards Committee and the NERC technical committees • ensure that reliability standards are technically sound • build industry consensus as NERC accelerates the transformation of the current standards to a body of world-class standards • ensure the reliability of the bulk power system.

  13. Standard Processes Manual • Revisions based on SPIG and Board recommendations. • Standards Process Improvement Group • SPM Revisions passed ballot in December.

  14. Standard Processes Manual Key Revisions: • Streamline the work of drafting teams in responding to comments • Negative ballots without comments (submitted either individually or as part of a group) count toward quorum but not consensus • Emphasis on developing informal consensus prior to formal balloting • Clarification of the handling and purpose of interpretations • Limited waiver provision

  15. Questions?

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