Reliability Workshop Summary and Recommendations for Near-Term Priorities 1

Reliability Workshop Summary and Recommendations for Near-Term Priorities

April 13, 2018

Prepared for April 30, 2018 Board Workshop Discussion

155 North 400 West, Suite 200

Salt Lake City, Utah 84103-1114

Western Electricity Coordinating Council

Reliability Workshop Summary and Recommendations for Near-Term Priorities 1

Introduction

The Western Interconnection is experiencing unprecedented change.This change is due to several factors such as: the rapid evolution of the resource portfolio, the consideration of multiple Reliability Coordinators (RC) and market participants, and the introduction of emerging technologies (such as battery storage) to the grid. It is critical for WECC use a methodical approach to determinethe best way to focus its resources onemerging reliability risks.

The purpose of this summary is to discuss key takeaways from WECC’s 2018 Reliability Workshop and to begin a discussion of WECC’s Near-Term Priorities.This discussion will serve as inputto the update of committee and program area work plans, which is scheduled forlate 2018.

The topics discussed in this summary will provide the necessary background for the Board Workshop on April 30, 2018. Following the Board Workshop, WECC will:

  1. develop a white paper on the proposed Near-Term Priorities,
  2. post for stakeholder comments from May 21, 2018 to June 6, 2018, and
  3. seek Board approval at the June Board meeting.

Background

In December 2017, the WECC Board approved the Strategic and Operating Planning Process. This process outlines the mechanisms that WECC uses to gather inpututilized to develop the strategic and planning documents addressed in WECC’s Business Plan Model (Figure A). As noted earlier, thisdocument summarizes the outcome of WECC’s 2018 Reliability Workshop held on March 21, 2018 and, using the input gained from Western subjectmatter experts at the workshop, proposes a small set ofNear-Term Priorities for Board and stakeholder consideration.


FIGURE A

It is important to note that the Near-Term Priorities are intended to supplement, not replace, the recommendations from the Strategic Direction Outline approved in December 2016 andactivities outlined in WECC’s current Operating Plan. Near-Term Priorities represent specific actions that should be undertaken in the next three years, not risks that could be realized in the near-term.

ERO Reliability Risk Priorities Report[1]

The North American Electric Reliability Corporation (NERC) Reliability Issues Steering Committee (RISC) drafted the Electric Reliability Organization (ERO) Reliability Risk Priorities Report (RISC Report), whichidentifiedseveral key observations regarding emerging risks to the reliability of the Bulk Power System (BPS). These key observations were used to identify linkages and coordinate the recommendations across the RISC Report’s risk profiles.

The RISC reviewed and assembled information from the ERO Enterprise stakeholders, policymakers, and focused executive leadership interviews to develop a composite set of nine risk profiles and a graphic depiction (Figure B) of the key BPS reliability risks. The depiction presents the RISC’s views on the likelihood of occurrence, the expected impact on reliability, the trajectory of the associated risks, and the change from the previous report.

FIGURE B

WECC Reliability WorkshopThemes

On March 21, 2018, WECC hosted the Reliability Workshop in conjunction with the Standing Committee meetings and provided an opportunity for the Member Advisory Committee (MAC), Western Interconnection Regional Advisory Body (WIRAB) and the Standing Committees to consider the RISC Report with a focus on the Western Interconnection and provide input on any other western-specific reliability issues.

During the workshop, attendees participatedin table-top discussions following presentations covering NERC’s and WECC’s Strategic Planning Processes, the RISC Report, and WIRAB’spreliminary recommendations regarding reliability risk priorities specific to the Western Interconnection.

Workshop participants worked in small participant groups (typically four-to-six people) to answer the following questions about the RISC Report risk profiles:

  1. What, if any, risk profiles are missing from the NERC RISC and WIRAB reports specific to the Western Interconnection?
  2. Which, if any, risk profiles identified in the NERC RISC and WIRAB reports are not risks in the Western Interconnection?
  3. Are there special nuances to any of the risk profiles that need to be addressed differently in the Western Interconnection?
  4. Do you agree with the prioritization of risk profiles in the NERC RISC Report for the Western Interconnection? How would you prioritize the risk profiles?
  5. Given the discussion at your table and focusing on actions WECC can undertake, what should WECC’s Near-TermPriorities be?

Common themes and takeaways from the workshop included the following (specific comments relative to top RISC Report risk profiles are noted below):

  • Most tables felt that all the risk profiles included in the NERC RISC Report were applicable to the Western Interconnection (i.e., there areno risk profiles that should be ignored).
  • Many tables identified impacts from the potential changes to the RC and market structure in the Western Interconnection as a high priority issue.
  • Most tables increased the impact of Extreme Natural Events from the NERC RISC Report Inherent Risk Mapping (see Figure B) and many commented that the extreme events experienced in the West (such as wildfires, drought, and earthquakes) differ from the rest of North America.
  • When talking about western-specific issues that should be addressed differently, a few tables noted that the expansive geographyand remoteness of some assets creates nuances in managing physical and cybersecurity risks as well as creating the need for additional stability studies.
  • A few tables noted that impacts on the BPS from distributed energy resources (DER)are increasing and reliability implications to the BPS should be better understood.

NERC RISC Report Prioritization

At the Reliability Workshop, all tables agreed with the NERC RISC Report’s prioritization of risk profiles in the “high impact to BES reliability, high likelihood of occurrence” quadrant of the Inherent Risk Mapping (see Figure B). In addition to those included in the NERC RISC Report, several participants at the Reliability Workshop also increased the prioritization of “Loss of Situational Awareness”to include it in the same quadrant. Below are brief descriptions (italicized text taken from the RISC Report) and summaries of the comments received for the high-priority risk profiles.

Changing Resource Mix – The rapid rate at which fuel costs, subsidies, and federal, state, and provincial policies are affecting the resource mix are creating a new paradigm in which planners, balancing authorities, and system operators are reacting to resource additions and retirements.

Participantsincluded the assessment of the impact of renewable resources, the interdependence of gas and electric resources, and opportunities for storage as Near-Term Priorities that should be considered by WECC.Similarly, several Participants also commented that changes in load composition due to DER and electric vehicles should be considered. Most tables identified changing resource mixas a top priority issue.

BPS Planning – BPS Planning is closely tied to the changing resource mix as planners lack the ability to update or create system models and scenarios of potential future states to identify system needs based on the dynamic nature of the system.

ManyParticipantshad concerns about the different roles and responsibilities related to BPS planning in the West, modeling of new technologies, and impacts to path ratings due to the changing resource mix.

Resource Adequacy – The changing resource mix and the integration of new technologies are altering the operational characteristics of the grid. Failure to consider these changing characteristics and capabilities can lead to insufficient capacity and Essential Reliability Services (ERS) to meet customer demands.

Some tablessuggested combiningthis risk profile with Changing Resource Mix and BPS Planning. As a result, many of the concerns noted above also apply to the Resource Adequacy profile.

Cybersecurity Vulnerabilities –Cyber threats are becoming more sophisticated and increasing in number, based on experience from attacks in other countries and on other industries. Exploitation of cybersecurity vulnerabilities can cause loss of control or damage to BPS-related voice communications, data, monitoring, protection and control systems, or tools. A large cyber-attack can result in equipment damage, degradation of reliable operations, uncontrolled cascading of the BPS, and loss of load.

Although fewtables addressed this topic specifically, those that did felt the impacts to reliability were high.

Loss of Situational Awareness – Loss of situational awareness highlights emerging challenges with visibility into DER impacts on the grid. Loss of situational awareness due to insufficient communication and data regarding neighboring entities’ operations is a risk as operators may act on incomplete information.

Although many tables referenced this risk profile in relation to the changing RC structure, it is likely that some tables were referring to loss of situational awareness in the context of a lack of visibility into the distribution system.

Priority Selection Framework

The prioritization frameworkintroducedto the Board in December 2014 and described below was usedto categorize the risksdiscussed during the Reliability Workshop(Figure C).

WECC will do the following:

  • Initiate and Study – Focus regional efforts on those continent-wide issues with specific considerations or issues that are unique to the Western Interconnection. (These are assessments that WECC initiates and leads; e.g., the assessment of gas infrastructure supporting generation in the Western Interconnection.)
  • Participate and Support– Support and engage with other organizations (e.g., NERC, Electric Power Research Institute (EPRI), Department of Energy (DOE), North American Energy Standards Board (NAESB), theGenerator and Transmission Forums) to ensure they consider Western issues and communicate findings and results back to stakeholders (e.g., WECC and Western participation in NERC’s Essential Reliability Services Working Group).
  • Monitor– Monitor efforts outside of our experience base/charterand where any region-specific efforts would likely result in little or no impact (e.g., industry efforts surrounding STEM[2]education to build a skilled workforce for the future).


FIGURE C

The final question at the workshop sought participant suggestions for specific actions that WECC could undertake to address the recommended Near-Term Priorities. Using the framework above, WECC Staff categorized the suggested actionsas follows:

Initiate & Study

  • Identify potential limits to the amount of variable resources that can reliably connect to the Western Interconnection.
  • Study the impacts of the changing resource mix with a focus on battery storage, changing load (e.g. electrification), and DER.
  • Evaluate the impacts of the changing resource mix and facility location on existing path ratings.
  • Identify potential issues related to the transmission – distribution interface.
  • Implement the recommendations from the Inverter-based Resources Performance Task Force (IRPTF) as applicable.
  • Ensure that situational awareness is maintained as the Reliability Coordinator (RC) and market structure evolves.
  • Improvecoordination between WECC, the Regional Planning Groups, and the International Planning Groups.

Participate & Support

  • Synchrophasor data management is underway in multiple forums. WECC will participate in those forums as needed to assist in reducing reliability risks.
  • Essential Reliability Services are being discussed at the NERC ERS Working Group. WECC actively participates in that forum and will continue to apply recommendations in the West.
  • NERC is addressing recovery and resilience. WECC participates in GridEx and similar activities to ensure that the Western Interconnection is considering these risks.
  • Issues related to inverter-based resources are being addressed in the NERC IRPTF. WECC supports this effort and will continue to participate.

Monitor

  • Cybersecurity is being addressed by the NERCElectricity Information Sharing and Analysis Center (E-ISAC). WECC will continue to monitor E-ISAC’s efforts and will support the activities of the Operating Committee’s (OC) Cyber and Physical Security Work Groups.
  • Public policies, such as Renewable Portfolio Standards (RPS), are managed at the State or Provincial level. WECC will remain apprised of the policies and study their impacts in assessments where applicable, but it will remain policy-neutral.

Efforts Underway

The following activitieswere discussed at the Reliability Workshop and are underway through WECC’s existing Operating Plan and committee work plans.

  • Sharing of Lessons Learned from Event Analysis efforts is taking place at the Human Performance Conference, assurance visits, and misoperations webinars.
  • Improvements to the base case developmentprocess are part of an existing project under the Reliability Assessment Committee (RAC).
  • The Natural Gas – Electric Interdependence study is in its final stages.
  • The Certification of any new RC is part of WECC’s delegated responsibility and will be managed accordingly.
  • The first Anchor Data Set (ADS) is scheduled to be finalized in June 2018. The effort to assess lessons learned and address recommendations for the second iteration is already underway.
  • WECC Regional Reliability Standards will continue to be reviewed, updated or retired as needed.
  • The handling of Critical Energy Infrastructure Information (CEII) at WECC is governed by the Information Sharing Policy (ISP), which is currently being updated.

Near-Term Priorities

Based on input received at the Reliability Workshop and using the framework above, the following are proposed for consideration by the Board.

1)Improve the modeling of inverter-based resources in WECC’s base cases with a focus on utilityscale photovoltaic, battery storage and DER.

2)Evaluate the impacts of the changing resource mix on:

  1. Existing path ratings
  2. Remedial Action Scheme (RAS) effectiveness/fault-duty
  3. Resource adequacy and the effectiveness of traditional methods for determining resource adequacy
  4. The transmission – distribution system interface due to DER
  5. ERS specific to the WI

3)Evaluate potential reliability risks and market impacts resulting from the expansion of RC/market service providers in the Western Interconnection.

4)Improve the coordination by clarifying the roles, responsibilities and relationships between WECC, the Regional Planning Groups, International Planning Groups, Transmission Planners, and other stakeholders involved in BPS planning.

Western Electricity Coordinating Council

[1]ERO Reliability Risk Priorities Report, February 2018.

[2] Science, Technology, Engineering, and Math.