IESO Reliability Compliance Program (IRCP) Technical Panel Meeting - PowerPoint PPT Presentation

IESOTP 173-6 IESO Reliability Compliance Program (IRCP) Technical Panel Meeting November 29, 2005 By: Ron Falsetti

Outline • Reliability Framework – Ontario’s Regulatory Framework – Role of all parties – US Energy Policy Act of 2005 • Reliability Compliance Programs • NERC • NPCC • IESO • Compliance Enforcement

Ontario’s Legislative & Regulatory Framework Ontario Energy Board Act Electricity Act Energy Competition Act of 1998 OEB Bill 100 (OPA) • Reliable operation of Power System • Codes & licenses • Compliance & Enforcement • Dispute Resolution • Wholesale Markets • Tariffs & other orders • Monitoring evolving markets

Reliability Framework • Reliability Standards • NERC/NPCC • IESO Specific • Market Rules • Participation Agreements • OEB License and Codes • Transmission System Code • Connection Agreements • US Energy Policy Act 2005

NERC • 1968 - 2001 – Set standards for planning and operation – Voluntary compliance • dependent on reciprocity, peer pressure, and the mutual self-interest of all involved. • 2001 -2005 – Evolving to mandatory compliance – Enforcement Letters & $ Sanctions • Interim Plan “B”. • Energy Policy Act 2005 - Enacted Aug.8 2005 • FERC Rule Pending for ERO – Mandatory compliance • 2006 – Transformation to ERO

Interim NERC Plan “B” (absent US and Canadian legislation) • Contractual Agreement between NERC & Regions • Regional Enforceable Program with minimum of 3 standards. • Regions to “implement ” financial penalties.

NPCC - RCEP Enforcement Authority • NPCC Membership Agreement – IESO is a signatory – Enforcement of 8 NPCC criterion (13 NERC Stds.) – Non ‐ monetary Sanctions • WECC uses monetary • NERC and FERC proposing monetary

COMPLIANCE HIERARCHY • NERC • Oversight of Regional compliance Program. • REGIONS (10*) • Report Regional compliance & monitor/enforce “Control Area” compliance e.g. NPCC • Report “Area” compliance & monitor/ • CONTROL AREAS enforce Market Participant compliance (TOP, BA) e.g. IESO • MARKET PARTICIPANTS (Transmitters, Generators, Distributors, Load Serving Entities & Connected Wholesale Customers * Reduced to 8 January 1, 2006 with creation of Reliability First (ECAR, MAIN and MACC)

IESO R.C.P. Process NERC IESO C.E.P. Standards IESO IESO NPCC NPCC Reliability R.C.P. C.E.P R.C.E.P. Rules IESO NPCC Notifies MP N.R.A.P. MP Submission Market Participants (MP) : Generators, Transmitters, Distributors, & Connected to IESO Wholesale Customers (Facility Owners) and IESO Monitoring & Assessment: IESO Operations Ontario RC Oversight Review & Enforcement: NPCC Submission MP Enforcement: MACD to NPCC

IRCP Process • IESO’s Reliability Compliance Program (IRCP) � Web based • schedule & links to standards, requirements & certification forms posted on web @ http://www.ieso.ca/imoweb/ircp/reliability.asp � Market Manual 7.9 • defines processes and obligations � e ‐ Mail notifications to M.P.s � MP self certification with supporting documentation as appropriate � Technical Assessment & Reliability Oversight by Operations Group • Non ‐ Compliance issues forwarded to IESO Compliance Group (MACD)

IESO Structure Dispute Resolution Dispute Resolution Dispute Resolution IESO Board of Directors IESO Board of Directors IESO Board of Directors Panel Panel Panel Market Assessment Market Assessment Market Assessment Chief Executive Officer Chief Executive Officer Chief Executive Officer & Compliance & Compliance & Compliance Corporate Services Corporate Services Audit Audit Corporate Services Audit Human Resources Finance Finance Human Resources Human Resources Finance Information, Information, Information, Corporate Relations Corporate Relations Reliability Reliability Market & System Market & System Corporate Relations Reliability Technology & Market & System Technology & Technology & & Market Development & Market Development Assurance Assurance Operation Operation & Market Development Assurance Operation Infrastructure Infrastructure Infrastructure Planning & Planning & Planning & IESO IESO Assessments Assessments IESO Assessments R.C.P. R.C.P. R.C.P.

Compliance & Market Rules Market Rules crafted specifically to respect both the NERC and NPCC standards. Chapter 4: S. 2.1.2 •All market participants shall maintain and operate their equipment and facilities in accordance with applicable law , good utility practices and all applicable reliability standards . Chapter 5: S. 4.14 • Each market participant shall provide to the IESO such date as may be required by the IESO to enable it to satisfy a request by a standard authority .

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