Reliability and Security Committee Mark Lauby Senior Vice President and Chief Engineer WECC Annual Meeting September 10, 2019 RELIABILITY | RESILIENCE | SECURITY
Objectives and Approach • Objectives Enhance ERO effectiveness in executing its statutory functions, recognizing the value of industry expertise Improve the efficiency of ERO operations and use of stakeholder resources • Four-legged approach ERO Enterprise Stakeholder “Coordination costs/ Engagement Regional NERC Opportunities” Entity Initiatives Initiatives 2 RELIABILITY | RESILIENCE | SECURITY
Three Focus Areas in 2019 • Stakeholder Engagement Review Existing Committee Structure Investigate and identify a more nimble structure Set Plan in motion for 2020 • Compliance Monitoring and Enforcement Program (Align) Bring together process and procedures through the ERO Enterprise Single tool rather than customized by region, reduced licensing costs • Standards Efficiency Review Review requirements for elimination, consolidation or improvement. 80 requirements reduced in Phase 1 Phase 2 has begun 3 RELIABILITY | RESILIENCE | SECURITY
Stakeholder Engagement /Committees • The current model has been in place for over 10 years Model is expensive and time consuming for NERC members The ERO Enterprise has matured Several REs have had success enhancing their committee models • Changing industry model Advances in new and unfamiliar technologies (e.g., inverters, batteries) Risk profiles changing (e.g., fuel assurance, ERS preservation with resource mix changes) • Committee “silos” blurring Committee activities increasingly overlap New technology requires cross-cutting rethinking of many utility paradigms 4 RELIABILITY | RESILIENCE | SECURITY
OC, PC, and CIPC: Increasing Convergence 5 RELIABILITY | RESILIENCE | SECURITY
Current NERC Stakeholder Committees 6 RELIABILITY | RESILIENCE | SECURITY
OC, PC, and CIPC: Future State • Is there a different structure? Strengthen alignment of stakeholder input with ERO Enterprise priorities Accommodate the changing industry model Focus on reliability and security risks from a strategic planning, operating and security perspective Effectively address the increasing overlap between the committees Achieve a higher level of industry participation (effectiveness) and more cost-effectively leverage subject matter expertise (efficiency) Right people working on the right issues 7 RELIABILITY | RESILIENCE | SECURITY
Vision / Future Needs • We pivot quickly and refocus resources rapidly We are in an ever changing world and the pace of change is accelerating Agile teams need to be readily deployed to address emerging issues How do we meet accelerated schedule for solving problems? • We bring multi-disciplined teams together to develop “complete” solutions Complex issues facing the industry that don’t fit into one basket What is mix of knowledge/skills/abilities (participation model): Planning, Operations, CIP and Legal? 8 RELIABILITY | RESILIENCE | SECURITY
Stakeholder Engagement Team • Participants in the evaluation process include: Operating Committee (OC), Planning Committee (PC), and Critical Infrastructure Protection Committee (CIPC) Chairs Member Representatives Committee (MRC) Chair and Vice Chair Industry volunteers Regional Entity (RE) staff Two NERC Board and staff 9 RELIABILITY | RESILIENCE | SECURITY
SET Technical Committee Review • All activities of the OC/PC/CIPC reviewed, concluding with: Technical committee participation is based on sectors (OC/PC) or Regional nomination (CIPC). Technical committee activities focused on work plan development, evaluation, and execution by the subgroups that report to them Most of the work completed by the subcommittees, working groups, and task forces Subgroup report-outs are occurring on a quarterly basis at the technical committee meetings Some subcommittees have ongoing recurring deliverables while others are more ad hoc task oriented Some reliability risk issues are being addressed in several subcommittees, leading to uncoordinated results and less end-to-end solutions. 10 RELIABILITY | RESILIENCE | SECURITY
Committee Structure Options • Need to ensure work plans are coordinated and for more end-to- end solution development for reliability/security risks. • Five different potential models developed, narrowed down to two options: Option 1: Retain existing technical committee structure and create an oversight committee which coordinates and directs their work Option 2: Replace OC, PC, and CIPC with a Reliability and Security Committee (RSC) that reports to the Board 11 RELIABILITY | RESILIENCE | SECURITY
Potential Committee Structures – Option 2 • Replace OC, PC, and CIPC with the Reliability and Security Committee (RSC) • Retain existing subcommittees, working groups, and task forces • Will evaluate work products of subcommittees, working groups, and task forces and eliminate or combine those without recurring responsibilities NERC Board NERC Board Critical Operating Planning Infrastructure Reliability and Committee Committee Protection Security Committee Committee OC PC CIPC OC PC CIPC Subcommittees, Subcommittees, Subcommittees, Subcommittees, Subcommittees, Subcommittees, Working Groups, Working Groups, Working Groups, Working Groups, Working Groups, Working Groups, Task Forces Task Forces Task Forces Task Forces Task Forces Task Forces 12 RELIABILITY | RESILIENCE | SECURITY
Benefits From Option 2 • Improved effectiveness of communication to inform the RSC work with input from the Board and MRC • Efficiencies from streamlining the operation of the three existing technical committees into one committee • Enhanced functional alignment between RISC priorities and mitigations, and the RSC directed technical work • Effective and efficient development of end-to-end technical solutions to mitigate existing and emerging risks to reliability 13 RELIABILITY | RESILIENCE | SECURITY
Communications / Streamlining • Improved effectiveness of communication to inform the RSC work with input from the Board and MRC Replacing the three existing technical committees with one committee will enhance communications between the RSC and the NERC Board. Reduced committee report-out time, increases the time the Board and MRC can discuss strategic and policy items to provide RSC direction Efficiencies from streamlining the operation of the three existing technical committees into one committee Efficiencies gained by streamlining the operation of the three existing technical committees into one committee Replacing the OC, PC, and CIPC with the RSC will provide efficiencies in terms of both NERC and industry support, along with hotel/travel costs 14 RELIABILITY | RESILIENCE | SECURITY
Better Functional Alignment • Better functional alignment between the RISC and the technical work overseen by the RSC Like the RISC, the RSC will report to the NERC Board The RSC will be a committee that, in concert with NERC, initiates and oversees the development of technical assessments and analysis that: o Support the analytical assessment function of the ERO; and o Provide products that industry can use to mitigate risks to the bulk power system 15 RELIABILITY | RESILIENCE | SECURITY
Better Functional Alignment NERC Board Reliability Issues Reliability and Steering Committee Security Committee OC PC CIPC Subcommittees, Subcommittees, Subcommittees, Working Groups, Working Groups, Working Groups, Task Forces Task Forces Task Forces 16 RELIABILITY | RESILIENCE | SECURITY
MRC Policy Input and Industry Comments • July 11 - August 6, 2019 - MRC Policy Input period • July 19, 2019 – MRC Information Session where RSC Proposal was discussed • July 12 – August 15, 2019 – Industry Comment Period • August 8, 2019 – Industry Webinar • August 14, 2019 – MRC Meeting where RSC Proposal was discussed 17 RELIABILITY | RESILIENCE | SECURITY
MRC Policy Input and Industry Comments – General Themes • Participation Model should have 2 members per sector • Provisions for Canadian representation • Publish the meeting minutes • Please explain what is meant by blurring and provide some examples of where this has occurred • A robust and systematic selection process must be developed • Add criteria to ensure "balanced representation and expertise" within the RSC • Will the RSC meetings be open? • Clarify how the RSC meetings will incorporate the information sharing and awareness that current occurs at CIPC 18 RELIABILITY | RESILIENCE | SECURITY
MRC Policy Input and Industry Comments – General Themes • Suggest OC, PC and CIPC evaluate existing subcommittees and provide a report to RSC in March with recommendations • Assure that the BOT be aware of dissenting votes, and minority positions, on RSC endorsed initiatives • Extend the proposed March 2020 implementation date to ensure details in the implementation plan and charter are addressed in a methodical and transparent manner, while enabling effective change management. 19 RELIABILITY | RESILIENCE | SECURITY
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