Agenda Standards Committee Meeting March 20, 2019 | 10:00 a.m. ― 3:00 p.m. Central Time

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Introduction and Chair’s Remarks

NERC Antitrust Compliance Guidelines and Public Announcement* NERC Participant Conduct Policy

Agenda Items

1. Review March 20 Agenda ― Approve (A. Gallo) (1 minute)

2. Consent Agenda ― Approve (A. Gallo) (5 minutes)

a. February 20, 2019 Standards Committee Meeting Minutes* ― Approve

3. Projects Under Development ― Review

a. Three Month Outlook* (H. Gugel) (10 minutes)

b. Project Tracking Spreadsheet (C. Yeung) (5 minutes)

c. Projected Posting Schedule (H. Gugel) (5 minutes)

4. NERC Participant Conduct Policy* ― Inform (L. Perotti) (10 minutes)

5. 2019 Standards Grading Process* ― Endorse (H. Gugel) (10 minutes)

6. Standard Authorization Request Cyber System Information Access Management* ― Accept (S.Kim) (10 minutes)

7. Functional Model Advisory Group Next Steps*― Discuss/Endorse (A. Gallo) (15 minutes)

8. SC Charter Revisions*― Approve (SCEC) (15 minutes)

9. Project 2015-09 System Operating Limits*― Discuss/Determine (S. Kim) (15 minutes)

a. Presentation from SDT Member* (S. Solis) (15 minutes)

10. Project 2016-02 Modifications to CIP Standards ― IROL Modifications* ― Discuss (S. Kim) (15minutes)

11. Subcommittee Reports ― Review

a. Project Management and Oversight Subcommittee (PMOS) ― (C. Yeung) (15 minutes)

b. Standards Committee Process Subcommittee (SCPS) ― (S. Bodkin) (15 minutes)

Agenda – Standards Committee Meeting – February 20, 2019 2

12. Legal Update and Upcoming Standards Filings* ― Review (L. Perotti) (5 minutes)

13. Informational Items ― Enclosed

a. Standards Committee Expectations*

b. 2019 Meeting Dates and Locations

c. 2019 Standards Committee Roster

d. Highlights of Parliamentary Procedure*

14. Adjournment

*Background materials included.

Antitrust Compliance Guidelines I. General It is NERC’s policy and practice to obey the antitrust laws and to avoid all conduct that unreasonably restrains competition. This policy requires the avoidance of any conduct that violates, or that might appear to violate, the antitrust laws. Among other things, the antitrust laws forbid any agreement between or among competitors regarding prices, availability of service, product design, terms of sale, division of markets, allocation of customers or any other activity that unreasonably restrains competition. It is the responsibility of every NERC participant and employee who may in any way affect NERC’s compliance with the antitrust laws to carry out this commitment. Antitrust laws are complex and subject to court interpretation that can vary over time and from one court to another. The purpose of these guidelines is to alert NERC participants and employees to potential antitrust problems and to set forth policies to be followed with respect to activities that may involve antitrust considerations. In some instances, the NERC policy contained in these guidelines is stricter than the applicable antitrust laws. Any NERC participant or employee who is uncertain about the legal ramifications of a particular course of conduct or who has doubts or concerns about whether NERC’s antitrust compliance policy is implicated in any situation should consult NERC’s General Counsel immediately. II. Prohibited Activities Participants in NERC activities (including those of its committees and subgroups) should refrain from the following when acting in their capacity as participants in NERC activities (e.g., at NERC meetings, conference calls and in informal discussions):

• Discussions involving pricing information, especially margin (profit) and internal cost information and participants’ expectations as to their future prices or internal costs.

• Discussions of a participant’s marketing strategies.

• Discussions regarding how customers and geographical areas are to be divided among competitors.

• Discussions concerning the exclusion of competitors from markets.

• Discussions concerning boycotting or group refusals to deal with competitors, vendors or suppliers.

NERC Antitrust Compliance Guidelines 2

• Any other matters that do not clearly fall within these guidelines should be reviewed with NERC’s General Counsel before being discussed.

III. Activities That Are Permitted From time to time decisions or actions of NERC (including those of its committees and subgroups) may have a negative impact on particular entities and thus in that sense adversely impact competition. Decisions and actions by NERC (including its committees and subgroups) should only be undertaken for the purpose of promoting and maintaining the reliability and adequacy of the bulk power system. If you do not have a legitimate purpose consistent with this objective for discussing a matter, please refrain from discussing the matter during NERC meetings and in other NERC-related communications. You should also ensure that NERC procedures, including those set forth in NERC’s Certificate of Incorporation, Bylaws, and Rules of Procedure are followed in conducting NERC business. In addition, all discussions in NERC meetings and other NERC-related communications should be within the scope of the mandate for or assignment to the particular NERC committee or subgroup, as well as within the scope of the published agenda for the meeting. No decisions should be made nor any actions taken in NERC activities for the purpose of giving an industry participant or group of participants a competitive advantage over other participants. In particular, decisions with respect to setting, revising, or assessing compliance with NERC reliability standards should not be influenced by anti-competitive motivations. Subject to the foregoing restrictions, participants in NERC activities may discuss:

• Reliability matters relating to the bulk power system, including operation and planning matters such as establishing or revising reliability standards, special operating procedures, operating transfer capabilities, and plans for new facilities.

• Matters relating to the impact of reliability standards for the bulk power system on electricity markets, and the impact of electricity market operations on the reliability of the bulk power system.

• Proposed filings or other communications with state or federal regulatory authorities or other governmental entities.

Matters relating to the internal governance, management and operation of NERC, such as nominations for vacant committee positions, budgeting and assessments, and employment matters; and procedural matters such as planning and scheduling meetings.

Agenda Item 2a Standards Committee March 20, 2019

Minutes Standards Committee Conference Call February 20, 2019 | 1:00 – 3:00 p.m. Eastern A. Gallo, chair, called to order the meeting of the Standards Committee (SC or the Committee) on February 20, at 1:00 p.m. Eastern Time. C. Larson called roll and determined the meeting had a quorum. The SC member attendance and proxy sheets are attached as Attachment 1. NERC Antitrust Compliance Guidelines and Public Announcement Committee secretary called attention to the NERC Antitrust Compliance Guidelines and the public meeting notice and directed questions to NERC’s General Counsel, Charles Berardesco. Introduction and Chair’s Remarks A. Gallo welcomed the Committee and guests and acknowledged the people attending as proxies. Review February 20, 2019 Agenda (agenda item 1) Following discussion regarding whether the SC would need to waive the five day rule to take action, if deemed necessary, on item 7c, the Committee approved the February 20, 2019 meeting agenda by unanimous consent. Consent Agenda (agenda item 2b) L. Oelker asked to remove the January 23, 2019 Meeting Minutes from the consent agenda. The Committee approved the January 31, 2019 Standards Committee Special Call Minutes by unanimous consent. January 23, 2019 Minutes (agenda item 2a) L. Oelker moved to approve the January 23, 2019 Standards Committee Meeting Minutes with the following edits:

SCEC Actions since December Meeting (agenda item 7) SC Charter Revisions. The Standards Committee Executive Committee (SCEC) is beginning a review of the SC Charter. A representative from the Operating Committee, Planning Committee, Critical Infrastructure Protection Committee, Compliance and Certification Committee and SC will meet to discuss the next steps for the Functional Model Advisory Group (FMAG). For the time being, the FMAG subcommittee work is on hold.

The Committee approved the motion with no objections or abstentions. Projects Under Development (agenda item 3)

Minutes – Standards Committee Meeting | February 20, 2019 2

C. Yeung reviewed the Project Tracking Spreadsheet. He highlighted relevant information for each project. H. Gugel reviewed the Projected Posting Schedule. Project 2018-03 Standards Efficiency Review Retirements (agenda item 4) S. Kim of NERC staff provided background information supporting the proposal. S. Bodkin asked which requirement modifications would be considered part of Standards Efficiency Review (SER) Phase 2 efforts. S. Kim responded by pointing out the supporting document for this item shows the following requirements will become part of the Phase 2 SER work:

• BAL-005-1, Requirements R4 and R6

• COM-002-4, Requirement R2

• EOP-005-3, Requirement R8

• EOP-006-3, Requirement R7

• IRO-014-3, Requirement R3

• IRO-017-1, Requirement R3

• VAR-001-5, Requirement R3 S. Rueckert moved to authorize initial posting for a 45-day formal comment period, with ballot pool formed in the first 30 days and parallel initial ballot and non-binding polls during the last 10 days of the comment period for the following:

• Proposed revised Reliability Standards FAC-008-4, INT-006-5, INT-009-3, IRO-002-6, PRC-004-6, TOP-001-5, and VAR-001-6;

• Proposed retirement of Reliability Standards in full: FAC-013-2, INT-004-3.1, INT-010-2.1, MOD-001-1a, MOD-004-1, MOD-008-1, MOD-028-2, MOD-029-2a, and MOD-030-3;

• Proposed withdrawal of Reliability Standard MOD-001-2; and

• The associated Implementation Plan and Violation Severity Levels and Violation Risk Factors. The Committee approved the motion with no objections or abstentions. Project 2018-04 Modifications to PRC-024-2 (agenda item 5) S. Bodkin moved to:

• Accept the revised Project 2018-04 Modifications to PRC-024-2 Standards Authorization Request (SAR); and

• Authorize the Project 2018-04 Standard Drafting Team (SDT), formed from the SAR Drafting Team, to revise PRC-024-2.

The Committee approved the motion with no objections or abstentions.

Minutes – Standards Committee Meeting | February 20, 2019 3

Project 2019-01 Revisions to TPL-007-3 Standards Authorization Request (agenda item 6) S. Bodkin moved to:

• Accept the Standards Authorization Request (SAR) for Project 2019-01 Revisions to TPL-007-3, developed in response to FERC Order No. 851 and authorize posting the SAR for a 30-day informal comment period; and

• Authorize solicitation of nominations for Project 2019-01 Standard Drafting Team (SDT) members.

The Committee approved the motion with no objections or abstentions. Project 2016-02 Modifications to CIP Standards Drafting Team (agenda item 7a) S. Kim provided an overview of the agenda item. S. Bodkin asked how many SDT members were added and lost since summer 2018. S. Kim described the turnover in the SDT. L. Oelker and S. Bodkin raised concerns about adding more SDT members. V. Greaff stated she believes adding new members would add value to the project. C. Yeung agreed with V. Greaff. S. Rueckert stated the Committee should support the SDT leadership and NERC staff if they believe additional SDT members would benefit the project. L. Oelker moved to appoint Matthew Hyatt as co-chair to replace Dave Revill. The Committee approved the motion with no objections or abstentions. S. Rueckert moved to authorize posting to solicit nominations for supplemental SDT members for Project 2016-02 Modifications to the CIP Standards. The Committee approved the motion. L. Oelker, S. Bodkin, and W. Winters objected, and there were no abstentions.

Project 2016-02 Modifications to CIP – Non-Substantive Changes (agenda item 7b) C. Gowder stated significant redline changes from the previous balloted version appear in the background information for this item and felt the changes are substantive. S. Bodkin agreed with C. Gowder. C. Gowder moved to determine the following changes in proposed CIP-002-6 and its Implementation Plan are substantive:

• Revising the Effective Date to comply with the requirements to 24 calendar months (instead of 12 calendar months) from the date of notification or detection of an Unplanned Change if a Responsible Entity already has Bulk Electric System (BES) Cyber Systems associated with a particular asset type; and

• Revising the Implementation Plan from 3 calendar months to fifteen calendar months. The Committee approved the motion with no objections or abstentions.

Minutes – Standards Committee Meeting | February 20, 2019 4

Project 2016-02 Modifications to CIP Standards – IROL Modifications (agenda item 7c) There was discussion by SC members about whether or not to discuss the agenda item or wait until the next SC meeting. S. Bodkin moved to postpone to the March 20, 2019 SC meeting the issues associated with revisions to the FAC family of Standards and the impact on CIP-002-5.1a, Attachment 1, Criteria 2.6 and 2.9 and how to best resolve those issues. The Committee approved the motion. M. Puscas, C. Yeung, C. Gowder, F. McElvain, G. Zito, and S. Rueckert objected and there were no abstentions. Legal Update (agenda item 8) M. Hecht provided the legal update regarding recent and upcoming filings. New Business C. Larson shared dates for an upcoming Segment 1 Special Election. Adjournment A. Gallo thanked the Committee members and observers and adjourned the meeting at 2:43 p.m. Eastern Time.

Attachment 1

Segment and Term

Representative Organization Proxy Present (Member or Proxy)

Chair 2018‐19 Andrew Gallo Director, Corporate Compliance

City of Austin dba Austin Energy

Yes

Vice Chair 2018‐19 Amy Casuscelli Sr. Reliability Standards Analyst

Xcel Energy Yes

Segment 1‐2018‐19 Vacant

N/A

Segment 1‐2019‐20 Sean Bodkin NERC Compliance Policy Manager

Dominion Resources Services, Inc. Yes

Segment 2‐2018‐19 Michael Puscas

Compliance Manager

ISO New England, Inc. Yes

Segment 2‐2019‐20 Charles Yeung Executive Director Interregional

Southwest Power Pool Yes

Segment 3‐2018‐19 Todd Bennett Manager Reliability Compliance

Associated Electric Cooperative, Inc.

Yes

Segment 3‐2019‐20 Linn Oelker Manager – Market Compliance

LG&E and KU Services Company Yes

Segment 4‐2018‐19 Chris Gowder Regulatory Compliance Manager

Florida Municipal Power Agency Yes

Segment 4‐2019‐20 Barry Lawson Associate Director, Power Delivery and Reliability

National Rural Electric Cooperative Association

No

Segment 5‐2018‐19 Yee Chou Director NERC Compliance Services

American Electric Power Yes

Segment 5‐2019‐20 William Winters Chief Engineer, Electrical Engineering

Con Edison Company of New York, Inc.

Yes

Standards Committee Attendance – February 20, 2019 2

Segment and Term Representative Organization Proxy Present (Member or Proxy)

Segment 6‐2018‐19 Jennifer Flandermeyer Director, Federal Regulatory Policy

Kansas City Power & Light Company (Great Plains Energy)

Douglas Webb

Yes

Segment 6‐2019‐20 Vacant N/A

Segment 7‐2018‐19 Frank McElvain Senior Manager, Consulting

Siemens Power Technologies International

Yes

Segment 7‐2019‐20 Venona Greaff Senior Energy Analyst

Occidental Chemical Corporation Yes

Segment 8‐2018‐19 Robert Blohm Managing Director

Keen Resources Ltd. No

Segment 8‐2019‐20 David Kiguel Independent Yes

Segment 9‐2018‐19 Alexander Vedvik Senior Electrical Engineer

Public Service Commission of Wisconsin

Yes

Segment 9‐2019‐20 Michael Marchand Senior Policy Analyst

Arkansas Public Service Commission

No

Segment 10‐2018‐19 Guy Zito Assistant Vice President of

Northeast Power Coordinating Council

Yes

Segment 10‐2019‐20 Steve Rueckert Director of Standards

Western Electricity Coordinating Council

Yes

Three-Month Outlook

Howard Gugel, Senior Director of Engineering and Standards, NERCStandards Committee March 20, 2019

Agenda Item 3aStandards CommitteeMarch 20, 2019

RELIABILITY | ACCOUNTABILITY2

• March Project 2019-02 Cyber System Information Access Management (SAR DT)

• April None

• May None

Authorize Nomination Solicitations

RELIABILITY | ACCOUNTABILITY3

• March None

• April Project 2019-01 Modifications to TPL-007-3 Project 2016-02 Modifications to the CIP Standards

• May Project 2019-02 Cyber System Information Access Management (SAR DT)

Authorize Team Appointments

RELIABILITY | ACCOUNTABILITY4

• March Project 2019-02 Cyber System Information Access Management

• April None

• May None

Accept/Authorize Standards Authorization Request Postings

RELIABILITY | ACCOUNTABILITY5

• March None

• April Project 2018-04 Modifications to PRC-024-2

• May None

Authorize Initial Postings

RELIABILITY | ACCOUNTABILITY6

• Project 2018-03 SER Retirements posted February – April, 2019• Phase 2 Industry feedback February 22 – March 22, 2019• Phase 2 evaluate and prioritize concepts March – May 2019• Phase 2 Recommendation One May 2019

Standards Efficiency Review (SER)

RELIABILITY | ACCOUNTABILITY7

Agenda Item 4 Standards Committee March 20, 2019

NERC Participant Conduct Policy

Action Information

Background NERC, in collaboration with stakeholders, developed a Participant Conduct Policy (Policy) applicable to participants in all of NERC’s activities. Based on participant conduct policies used by the NERC Operating Committee and in NERC’s standards development process, the Policy fosters a professional environment for all participants working in support of NERC’s mission.

NERC worked with the chairs of the Standing Committees to develop the Policy. NERC presented it at the joint technical Standing Committees meeting in December 2018 and at the Member Representatives Committee meeting in February 2019.

Summary The Policy applies to all participants in NERC activities, including Standing Committee members and observers, drafting team members and observers, and other stakeholder volunteers that attend and participate in NERC activities or groups. The Policy includes the following:

• Expectations on participants’ conduct during in-person meetings and conference calls;

• Prohibition on distribution of confidential or “embargoed” work product;

• Guidance on public communications;

• Potential consequences for violation of the Policy; and

• Email listserv use guidelines.

Attachment

1. NERC Participant Conduct Policy

NERC Participant Conduct Policy

General Consistent with its Rules of Procedure, Bylaws, and other governing documents, NERC regularly collaborates with  its members and other stakeholders to help further  its mission to assure the effective and efficient reduction of risks to the reliability and security of the grid. Many NERC members and other bulk power system  experts  provide  time  and  expertise  to NERC,  and  the  general  public,  by  participating  in NERC committees,  subcommittees,  task  forces, working  groups,  and  standard  drafting  teams,  among  other things. To ensure that NERC activities are conducted  in a responsible, timely, and efficient manner,  it  is essential to maintain a professional and constructive work environment for all participants, including NERC staff, members of NERC committees, subcommittees, task forces, working groups, and standard drafting teams, as well as any observers of these groups. To that end, NERC has adopted the following Participant Conduct Policy (this “Policy”) for all participants engaged in NERC activities. Nothing in this Policy is intended to  limit  the  powers  of  the  NERC  Board  of  Trustees  or  NERC  management  as  set  forth  in  NERC’s organizational documents, the NERC Rules of Procedure, or under applicable law. This Policy does not apply to the NERC Board of Trustees or the Member Representatives Committee. 

Participant Conduct Policy All participants in NERC activities must conduct themselves in a professional manner at all times. This Policy includes in‐person conduct and any communication, electronic or otherwise, made as a participant in NERC activities. Examples of unprofessional conduct  include, but are not  limited to, verbal altercations, use of abusive  language,  personal  attacks,  or  derogatory  statements  made  against  or  directed  at  another participant, and  frequent or patterned  interruptions  that disrupt  the efficient  conduct of a meeting or teleconference.  

Additionally, participants shall not use NERC activities  for commercial purposes or  for their own private purposes,  including,  but  not  limited  to,  advertising  or  promoting  a  specific  product  or  service, announcements of a personal nature, sharing of files or attachments not directly relevant to the purpose of  the NERC activity, and communication of personal views or opinions, unless  those views are directly related to the purpose of the NERC activity. Unless authorized by an appropriate NERC officer, individuals participating  in NERC activities are not authorized to speak on behalf of NERC or to  indicate their views represent the views of NERC, and should provide such a disclaimer if identifying themselves as a participant in a NERC activity to the press, at speaking engagements, or through other public communications.   

Finally, participants shall not distribute work product developed during the course of NERC activities if that work product  is deemed Confidential  Information consistent with  the NERC Rules of Procedure Section 1500. Participants also shall not distribute work product developed during the course of NERC activities if distribution  is not permitted by NERC or the relevant committee chair or vice chair (e.g., an embargoed report), provided that NERC, or the committee chair or vice chair in consultation with NERC staff, may grant in writing a  request by a participant  to allow  further distribution of  the work product  to one or more 

Agenda Item 4(i)Standards CommitteeMarch 20, 2019

 

NERC Participant Conduct Policy  2 

specified entities within  its  industry sector  if deemed to be appropriate. Any participant that distributes work product  labeled “embargoed,” “do not release,” or “confidential”  (or other similar  labels) without written approval for such further distribution would be in violation of this Policy. Such participants would be  subject  to  restrictions on participation,  including permanent  removal  from participation on  a NERC committee or other NERC activity.  Reasonable Restrictions on Participation If a participant does not comply with this Policy, certain reasonable restrictions on participation in NERC activities may be imposed, as described below.   If a NERC staff member, or committee chair or vice chair after consultation with NERC staff, determines, by his or her own observation or by complaint of another participant, that a participant’s behavior is disruptive to the orderly conduct of a meeting in progress or otherwise violates this Policy, the NERC staff member or committee chair or vice  chair may  remove  the participant  from a meeting. Removal by  the NERC  staff member or committee chair or vice chair is limited solely to the meeting in progress and does not extend to any future meeting. Before a participant may be asked to leave the meeting, the NERC staff member or committee chair or vice chair must  first  remind  the participant of  the obligation  to conduct himself or herself  in  accordance with  this  Policy  and  provide  an  opportunity  for  the  participant  to  comply.  If  a participant is requested to leave a meeting by a NERC staff member or committee chair or vice chair, the participant must cooperate fully with the request.   Similarly,  if a NERC  staff member, or  committee  chair or vice  chair after  consultation with NERC  staff, determines, by his or her own observation or by  complaint of another participant,  that a participant’s behavior  is disruptive  to  the orderly conduct of a  teleconference  in progress or otherwise violates  this Policy, the NERC staff member or committee chair or vice chair may request the participant to leave the teleconference. Removal by the NERC staff member or committee chair or vice chair is limited solely to the teleconference in progress and does not extend to any future teleconference. Before a participant may be asked  to  leave  the  teleconference,  the NERC  staff member or  committee  chair or vice  chair must  first remind the participant of the obligation to conduct himself or herself  in accordance with this Policy and provide an opportunity for the participant to comply. If a participant is requested to leave a teleconference by a NERC staff member or committee chair or vice chair, the participant must cooperate fully with the request. Alternatively, the NERC staff member or committee chair or vice chair may choose to terminate the teleconference.   At any time, a NERC officer, after consultation with NERC’s General Counsel, may impose a restriction on a participant from one or more future meetings or teleconferences, a restriction on the use of any NERC‐administered listserv or other communication list, or such other restriction as may be reasonably necessary to maintain the orderly conduct of NERC activities. Before approving any such restriction, the NERC General Counsel must provide notice to the affected participant and an opportunity to submit a written objection to the proposed restriction no fewer than seven days from the date on which notice is provided. If approved, the restriction is binding on the participant, and NERC will notify the organization employing or contracting with the restricted participant. A restricted participant may request removal of the restriction by submitting 

 

NERC Participant Conduct Policy  3 

a  request  in writing  to  the NERC General  Counsel.  The  restriction will  be  removed  at  the  reasonable discretion of the NERC General Counsel or a designee.   Upon the authorization of the NERC General Counsel, NERC may require any participant in any NERC activity to execute a written acknowledgement of this Policy and its terms and agree that continued participation in any NERC activity is subject to compliance with this Policy.    Guidelines for Use of NERC Email Lists NERC provides email lists, or “listservs,” to NERC stakeholder committees, groups, and teams to facilitate sharing information about NERC activities. It is the policy of NERC that all emails sent to NERC listservs be limited to topics that are directly relevant to the listserv group’s assigned scope of work. NERC reserves the right to apply administrative restrictions to any listserv or its participants, without advance notice, to ensure that the resource is used in accordance with this and other NERC policies.  Prohibited activities include using NERC‐provided listservs for any price‐fixing, division of markets, and/or other anti‐competitive behavior. Recipients and participants on NERC listservs may not utilize NERC listservs for  their  own  private  purposes.  This may  include  lobbying  for  or  against  pending  balloted  standards, announcements of a personal nature, sharing of files or attachments not directly relevant to the  listserv group’s scope of responsibilities, or communication of personal views or opinions, unless those views are provided  to  advance  the work  of  the  listserv’s  group. Any  offensive,  abusive,  or  obscene  language  or material shall not be sent across the NERC listservs.  Any participant who has concerns about this Policy may contact NERC’s General Counsel.    Version History  Version Date Change Tracking

1  February 6, 2019   2  February 22, 2019  Clarified policy does not 

apply to Board or MRC  Addressed participants 

speaking on behalf of NERC 

      

Participant Conduct Policy

Lauren Perotti, Senior CounselNERC Standards Committee MeetingMarch 20, 2019

Agenda Item 4(ii)Standards CommitteeMarch 20, 2019

RELIABILITY | ACCOUNTABILITY2

• Derived from policies used by Operating Committee and standards development teams

• Applies to all participants in NERC activities• Includes four sections: General purpose Policy Restrictions on participation NERC email list use

Participant Conduct Policy Overview

RELIABILITY | ACCOUNTABILITY3

• Promote efficient use of participants’ time• Maintain a professional and constructive work environment• Clarify expectations for participants

General purpose

RELIABILITY | ACCOUNTABILITY4

1. Conduct yourself in a professional manner2. Do not use NERC activities for commercial or private purposes3. Do not distribute Confidential Information

--“Confidential Information” is defined in Rules of Procedure Section 1500

4. Do not claim you are speaking on behalf of NERC or that your views represent those of NERC

5. Do not distribute work product if distribution is prohibited--E.g., document is labeled “embargoed”, “do not release”, or

“confidential”, among other similar labels

Policy

RELIABILITY | ACCOUNTABILITY5

• Receive reminder to comply with Participant Conduct Policy• May be asked to leave the meeting or teleconference• May be permanently restricted from NERC activities NERC notifies employer of permanent restriction NERC General Counsel can review written requests to remove restriction

Restrictions on Participation

RELIABILITY | ACCOUNTABILITY6

• Listserv topics are limited to group’s scope of work• Anti-competitive behavior is prohibited• Personal views prohibited unless relevant to group’s scope of

work• Offensive, abusive, or obscene language not permitted

NERC Email List Use

RELIABILITY | ACCOUNTABILITY7

• https://www.nerc.com/gov/Annual%20Reports/NERC_Participant_Conduct_Policy.pdf

• Questions?

Participant Conduct Policy

RELIABILITY | ACCOUNTABILITY8

Agenda Item 5 Standards Committee March 20, 2019

2019 Standards Grading Process

Action Endorse a delay of the Standards Grading process until May 2020 and inform the NERC Board of Trustees at its May 2019 meeting.

Background Annually, the Periodic Review Standing Review Team (PRSRT) performs Standards Grading. The chairs of the Standards Committee (SC), Operating Committee, Planning Committee, a Regional representative, and NERC staff comprise the PRSRT. The SC, at its March 9, 2016 meeting, endorsed using the grading tool from the Independent Expert Review Panel as the metric to grade all NERC Reliability Standards. As described in the Reliability Standards Development Plan, the PRSRT, with the SC chair facilitating the meetings, conducts an initial grading of all currently-enforceable Reliability Standards with requirements subject to enforcement in the United States for at least one year. Each year the PRSRT performs grading on a selected set of Reliability Standards.

The Project 2018-03 Standards Efficiency Review (SER) Retirements team recently proposed retiring several requirements, and SER Phase 2 will develop and recommend standards-based solutions to reduce inefficiencies and unnecessary regulatory burdens. Because the SER project overlaps in resources and scope with the Standards Grading process, NERC staff proposes to delay Standards Grading until May 2020 and notifying the NERC Board of Trustees.

Agenda Item 6 Standards Committee March 20, 2019

Standards Authorization Request for BES Cyber System Information Access Management

Action

• Accept the Standards Authorization Request (SAR) developed by Tri-State Generationand Transmission Association and authorize for 30-day formal comment period.

• Authorize solicitation for nominees for a SAR drafting team for a 30-day nominationperiod.

Background On March 1, 2019, NERC received a SAR from Tri-State Generation and Transmission Association seeking to address BES Cyber System Information (BCSI) access management. The SAR is the result of work by an informal team, under the direction of the NERC Compliance Input Working Group, assembled to review the use of encryption on BCSI with particular focus on BCSI stored or used by a third party’s sytem (i.e., the cloud). The Critical Infastruture Protection Committee at its March meeting endorsed the SAR.

The proposed scope of this project would entail modifications to CIP-004-6 and CIP-011-2. The SAR describes the proposed scope as follows:

CIP-004-6 Requirement R4 Part 4.1.3 needs to be modified so authorization and access to BCSI is clarified to focus on the BCSI and the controls deployed to limit access. In addition, the Standard should allow multiple methods for controlling access to BES Cyber System Information, rather than just electronic and physical access to the BES Cyber System Information storage location. For example, the focus must be on BCSI and the ability to obtain and make use of it. This is particularly necessary when it comes to the utilization of a third party’s system (aka cloud). As currently drafted, the requirement is focused on access to the “storage location”, and therefore does not permit methods such as encryption and key management to be utilized in lieu of physical/electronic access controls. This wording also does not explicitly permit any flexibility in the audit approach. In addition to modifying CIP-004-6 Requirement R4 Part 4.1.3, Part 4.4, Part 5.3 and CIP-011-2 Requirement R1 should also be evaluated for any subsequent impacts to the requirements, measures and/or the guidelines and technical basis.

The SAR provides several possible options to assist the SDT with its modifications to the CIP standards.

Agenda Item 6(i) Standards Committee March 20, 2019

Standard Authorization Request (SAR) The North American Electric Reliability Corporation (NERC) welcomes suggestions to improve the reliability of the bulk power system through improved Reliability Standards.

Requested information SAR Title: BES Cyber System Information Access Management Date Submitted: March 1, 2019 SAR Requester Name: Alice Ireland Organization: Tri-State Generation and Transmission Association Telephone: (303) 254-3120 Email: aireland@tristategt.org SAR Type (Check as many as apply)

New Standard Revision to Existing Standard Add, Modify or Retire a Glossary Term Withdraw/retire an Existing Standard

Imminent Action/ Confidential Issue (SPM Section 10)

Variance development or revision Other (Please specify)

Justification for this proposed standard development project (Check all that apply to help NERC prioritize development)

Regulatory Initiation Emerging Risk (Reliability Issues Steering

Committee) Identified Reliability Standard Development Plan

NERC Standing Committee Identified Enhanced Periodic Review Initiated Industry Stakeholder Identified

Industry Need (What Bulk Electric System (BES) reliability benefit does the proposed project provide?): While there is no direct benefit to the reliability of the BES, this initiative enhances BES reliability by creating increased choice, greater flexibility, higher availability, and reduced-cost options for entities to manage their BES Cyber System Information, by providing a secure path towards utilitzation of modern third-party data storage and analysis systems. In addition, the proposed project would clarify the protections expected when utilizing third-party solutions (aka cloud). Purpose or Goal (How does this proposed project provide the reliability-related benefit described above?): Clarifying the CIP requirements related to BES Cyber System Information access, to allow for alternative methods, such as encryption, to be utilized in the protection of BCSI. Project Scope (Define the parameters of the proposed project): CIP-004 and CIP-011

Complete and please email this form, with attachment(s) to: sarcomm@nerc.net

Complete and please email this form, with attachment(s) to: sarcomm@nerc.net

Standard Authorization Request (SAR) 2

Requested information Detailed Description (Describe the proposed deliverable(s) with sufficient detail for a drafting team to execute the project. If you propose a new or substantially revised Reliability Standard or definition, provide: (1) a technical justification1which includes a discussion of the reliability-related benefits of developing a new or revised Reliability Standard or definition, and (2) a technical foundation document (e.g. research paper) to guide development of the Standard or definition): CIP-004-6 Requirement R4 Part 4.1.3 needs to be modified so authorization and access to BCSI is clarified to focus on the BCSI and the controls deployed to limit access. In addition, the Standard should allow multiple methods for controlling access to BES Cyber System Information, rather than just electronic and physical access to the BES Cyber System Information storage location. For example, the focus must be on BCSI and the ability to obtain and make use of it. This is particularly necessary when it comes to the utilization of a third party’s system (aka cloud). As currently drafted, the requirement is focused on access to the “storage location”, and therefore does not permit methods such as encryption and key management to be utilized in lieu of physical/electronic access controls. This wording also does not explicitly permit any flexibility in the audit approach. In addition to modifying CIP-004-6 Requirement R4 Part 4.1.3, Part 4.4, Part 5.3 and CIP-011-2 Requirement R1 should also be evaluated for any subsequent impacts to the requirements, measures and/or the guidelines and technical basis. Cost Impact Assessment, if known (Provide a paragraph describing the potential cost impacts associated with the proposed project): Potential cost savings due to economies of scale and third party support. Please describe any unique characteristics of the BES facilities that may be impacted by this proposed standard development project (e.g. Dispersed Generation Resources): To assist the NERC Standards Committee in appointing a drafting team with the appropriate members, please indicate to which Functional Entities the proposed standard(s) should apply (e.g. Transmission Operator, Reliability Coordinator, etc. See the most recent version of the NERC Functional Model for definitions): Please see Section 4. Applicability of CIP-004-6 and CIP-011-2. Do you know of any iconsensus building activities2 in connection with this SAR? If so, please provide any recommendations or findings resulting from the consensus bulding activity. An informal team, under the direction of the NERC Compliance Input Working Group, was assembled to review the use of encryption on BES Cyber System Information, and the impact on compliance, with a particular focus on such BES Cyber System Information being stored or utilized by a third party’s system (aka cloud). This team met every two weeks during Dec. 2018 – Feb. 2019. The development of this SAR was supported by all team members. The team consisted of the following individuals:

1 The NERC Rules of Procedure require a technical justification for new or substantially revised Reliability Standards. Please attach pertinent information to this form before submittal to NERC. 2 Consensus building activities are occasionally conducted by NERC and/or project review teams. They typically are conducted to obtain industry inputs prior to proposing any standard development project to revise, or develop a standard or definition.

Standard Authorization Request (SAR) 3

Requested information

Name Company Alice Ireland (lead) Tri-State Generation and Transmission David Vitkus Tucson Electric Power

Eric Hull SMUD

Marina Rohnow Sempra Utilities/ San Diego Gas & Electric

Paul Haase Seattle City Light

Richie Field Hoosier Energy REC, Inc.

Rob Ellis Tri-State Generation and Transmission

Steve Wesling Tri-State Generation and Transmission

Toley Clague Portland General Electric

Ziad Dassouki ATCO Electric

Joseph Baxter NERC

Lonnie Ratliff NERC

Brian Kinstad MRO

Holly Eddy WECC

Kenath Carver Texas Reliability Entity, Inc.

Michael Taube MRO

Mike Stuetzle NPCC

Morgan King WECC

Shon Austin Reliability First

Tremayne Brown SERC Are there any related standards or SARs that should be assessed for impact as a result of this proposed project? If so which standard(s) or project number(s)? Project 2016-02 Modifications to CIP Standards Are there alternatives (e.g. guidelines, white paper, alerts, etc.) that have been considered or could meet the objectives? If so, please list the alternatives. When evaluating ways to modify the requirement, other standards and requirements were identified, which provide examples on possible paths forward. Of particular relevance are the following standards/requirements:

• CIP-006-6 Requirement R1 Part 1.10; • CIP-010-2 Requirement R4, Attachment 1, Section 1.5; • CIP-012-1 Requirement R1 (pending FERC approval).

Standard Authorization Request (SAR) 4

Requested information As a means to assist the SDT, several possible options for revision to CIP-004-6 Requirement R4 Part 4.1.3 have been drafted and provided below: EXAMPLE #1: [Delete 4.1.3 and create a new subrequirement in either CIP-004 or CIP-011, that would read something like this:] R4.X Process to prevent unauthorized access to BES Cyber System Information. The process shall include: 4.X.1. Identification of physical and electronic repositories utilized to store BES Cyber System Information. If electronic, indicate whether the repository is hosted by the Responsible Entity or a third-party and also whether it is in a virtual or non-virtual environment.; 4.X.2. Identification of security protection(s) used to prevent unauthorized access to BES Cyber System Information within each repository. Examples may include but are not limited to the following:

• Encryption and key management, • Physical access management, • Electronic access management, • Data loss prevention techniques and rights management services.

4.X.3. The process to authorize access to BES Cyber System Information, based on need, as determined by the Responsible Entity, except for CIP Exceptional Circumstances; EXAMPLE #2: R4.1 Process to authorize based on need, as determined by the Responsible Entity, except for CIP Exceptional Circumstances: 4.1.1. Electronic access; 4.1.2. Unescorted physical access into a Physical Security Perimeter; 4.1.3. Physical access to physical BES Cyber System Information storage locations; 4.1.4. Physical access to unencrypted electronic BES Cyber System Information storage locations; 4.1.5. Electronic access to unencrypted electronic BES Cyber System Information storage locations; and 4.1.6. Electronic access to BES Cyber System Information encryption keys for encrypted BES Cyber System Information. EXAMPLE #3: R4.1 Process to authorize based on need, as determined by the Responsible Entity, except for CIP Exceptional Circumstances: 4.1.1. Electronic access; 4.1.2. Unescorted physical access into a Physical Security Perimeter; 4.1.3. Physical access to physical BES Cyber System Information storage locations; 4.1.4. Access to electronic BES Cyber System Information.

Standard Authorization Request (SAR) 5

Reliability Principles Does this proposed standard development project support at least one of the following Reliability Principles (Reliability Interface Principles)? Please check all those that apply.

1. Interconnected bulk power systems shall be planned and operated in a coordinated manner to perform reliably under normal and abnormal conditions as defined in the NERC Standards.

2. The frequency and voltage of interconnected bulk power systems shall be controlled within defined limits through the balancing of real and reactive power supply and demand.

3. Information necessary for the planning and operation of interconnected bulk power systems

shall be made available to those entities responsible for planning and operating the systems reliably.

4. Plans for emergency operation and system restoration of interconnected bulk power systems shall be developed, coordinated, maintained and implemented.

5. Facilities for communication, monitoring and control shall be provided, used and maintained for the reliability of interconnected bulk power systems.

6. Personnel responsible for planning and operating interconnected bulk power systems shall be trained, qualified, and have the responsibility and authority to implement actions.

7. The security of the interconnected bulk power systems shall be assessed, monitored and maintained on a wide area basis.

8. Bulk power systems shall be protected from malicious physical or cyber attacks.

Market Interface Principles Does the proposed standard development project comply with all of the following Market Interface Principles?

Enter (yes/no)

1. A reliability standard shall not give any market participant an unfair competitive advantage. Yes

2. A reliability standard shall neither mandate nor prohibit any specific market structure. Yes

3. A reliability standard shall not preclude market solutions to achieving compliance with that standard. Yes

4. A reliability standard shall not require the public disclosure of commercially sensitive information. All market participants shall have equal opportunity to access commercially non-sensitive information that is required for compliance with reliability standards.

Yes

Identified Existing or Potential Regional or Interconnection Variances

Region(s)/ Interconnection

Explanation

e.g. NPCC

For Use by NERC Only

Standard Authorization Request (SAR) 6

SAR Status Tracking (Check off as appropriate)

Draft SAR reviewed by NERC Staff Draft SAR presented to SC for acceptance DRAFT SAR approved for posting by the SC

Final SAR endorsed by the SC SAR assigned a Standards Project by NERC SAR denied or proposed as Guidance

document Version History Version Date Owner Change Tracking

1 June 3, 2013 Revised

1 August 29, 2014 Standards Information Staff Updated template

2 January 18, 2017 Standards Information Staff Revised

2 June 28, 2017 Standards Information Staff Updated template

Agenda Item 7 Standards Committee March 20, 2019

Functional Model Advisory Group Next Steps

Action

• Discuss the Standing Committee Coordinating Group (SCCG) decision to form an ad hocworking group to evaluate potential next steps for the Functional Model (FM).

• Endorse informing the Functional Model Advisory Group (FMAG) to refrain fromadditional work pending the outcome of the ad hoc working group.

Background The current version of the FM (dated November 2009 and approved by the NERC Board in May 2010) states:

The [FM] describes a functional entity envisioned to ensure that all of the Tasks related to its Function are performed. The Model, while using the term “functional entity", is a guideline and cannot prescribe responsibility. It is NERC's compliance processes, backed by regulatory authority, that specify the manner in which, a functional entity is “legally responsible” for meeting the standards requirements assigned to that functional entity. (emphasis added)

Functional Model maintenance. The Functional Model is maintained by the Functional Model Working Group (FMWG) under the direction of the NERC Standards Committee, with technical content in the Model and accompanying technical document approved by the Standing Committees (Operating Committee (OC), Planning Committee (PC) and Critical Infrastructure Protection Committee (CIPC).

In December 2014, the Functional Model Advisory Group Scope was approved and states, among other things, the FMAG reports to the Standards Committee (SC) and consults with and submits all revisions to the NERC CIPC, OC and PC for endorsement. After endorsement by the standing committees, the FMAG submits the FM to the SC for endorsement.

In January 2018, the SC endorsed a scope of work for the FMAG identifying two tasks related to the FM. Task 1 was to align the terms and definitions in the FM with those used in the NERC Glossary of Terms and Definitions in the Rules of Procedure. Task 2 was to solicit input from industry on the merits of further work on the FM, and if the FMAG determined industry input was supportive of further work, more substantive revisions to the FM would be made to align with actual industry practices.

The FMAG completed the first task and the SC endorsed the deliverable in December 2018 while delaying publication for a future date determined by the SC. During discussion at the December 2018 SC meeting regarding the second task, several SC members expressed interest in creating a small group of members from the NERC standing committees to consider options for next steps.

In February 2019, the SCCG agreed to form an ad hoc group consisting of: (i) NERC Staff; (ii) Compliance and Certification Committee leadership, and (iii) SC leadership, with input from the

other standing committees, as desired. That group will determine the best way to move forward on the FM. To conserve the time and effort of industry representatives, the SCCG believed it was best for the FMAG to refrain from additional work until the ad hoc group makes its recommendations. The SC Chair conveyed that message to the FMAG. This item proposes the SC endorse informing the FMAG to refrain from additional work pending the outcome of the ad hoc working group.

Agenda Item 8 Standards Committee May 20, 2019

Standards Committee Charter Revisions

Action Approve revisions to the Standards Committee Charter for submission to the NERC Board of Trustees

Background The current version of the Standards Committee (SC) Charter has been in place since December 9, 2014. The SC Executive Committee (SCEC) met several times to discuss the charter and revise it. The attached document contains a redline of the Charter with changes proposed by the SCEC. If the SC approves the revisions, NERC Staff will submit the Charter to the NERC Board of Trustees at its next meeting.

NERC | Standards Committee Charter | December 9, 2014

Standards Committee Charter Approved by the Standards Committee

December 9, 2014TBD

Agenda Item 8(i) Standards Committee March 20, 2019

Table of Contents

Standards Committee Charter .................................................................................................................................... 2

Section 1. Purpose .................................................................................................................................................. 2

Section 2. Reporting ................................................................................................................................................ 2

Section 3. Overview and Functions ......................................................................................................................... 2

Section 4. Membership ........................................................................................................................................... 3

Segment Representation .................................................................................................................................... 3

Section 5. Officers ................................................................................................................................................... 4

1. Selection ....................................................................................................................................................... 4

2. Terms. ........................................................................................................................................................... 4

3. Voting ........................................................................................................................................................... 4

4. Duties of the Chair. ...................................................................................................................................... 4

5. Duties of the Vice Chair ................................................................................................................................ 5

6. Duties of the Secretary................................................................................................................................. 5

Section 6. Voting Members’ Expectations and Responsibilities ......................................................................... 5

1. Committee voting members: ....................................................................................................................... 5

Section 7. Executive Committee and Subcommittees ........................................................................................ 6

1. Executive Committee ................................................................................................................................... 6

2. Additional Subcommittees, Task Forces, and ad hoc Working Groups. ...................................................... 6

Section 8. Meetings ............................................................................................................................................. 6

1. Open Meetings. ............................................................................................................................................ 6

2. General Requirements. ................................................................................................................................ 6

3. Notice ........................................................................................................................................................... 6

4. Agenda. ........................................................................................................................................................ 6

5. Parliamentary Procedures. ........................................................................................................................... 7

6. Quorum ........................................................................................................................................................ 7

7. Voting ........................................................................................................................................................... 7

8. Actions without a Meeting ........................................................................................................................... 7

9. Proxies. ......................................................................................................................................................... 7

10. Field Tests. .................................................................................................................................................... 7

NERC | Standards Committee Charter | December 9, 2014TBD

NERC | Standards Committee Charter | December 9, 2014TBD 2

Standards Committee Charter

Section 1. Purpose The Standards Committee (the Committee) of the North American Electric Reliability Corporation (NERC), working together with NERC Standards Staff, manages and executes the Reliability Standards development process tfor the timely development and maintainenance of a comprehensive set of results-based Reliability Standards that collectively provide for the Reliable Operation of the North American Bulk-Power System.

Section 2. Reporting The Committee reports and is accountable to the NERC Board of Trustees. The Committee members haves the responsibility to keep the industry segments they represent informed regarding Reliability Standards matters. The NERC Board of Trustees shall approve this Charter and any amendments to this Charter pursuant to Section 1300 of the NERC Rules of Procedure.

Section 3. Overview and Functions The Committee, working together with NERC Standards Staff, manages the NERC process to development and maintaienance of a comprehensive set of results-based Reliability Standards that collectively provide for the Reliable Operation of the North American Bulk-Power System. Specifically, working together with NERC Standards Staff, the Committee has the following duties:

1. Develops a long-term (multi-year) strategic vision describing the goals and direction for Reliability Standards development consistent with NERC’s strategic and business plans.

2. Coordinates with the Reliability Issues Steering Committee to develop a Reliability Standards Development Plan (RSDP) prioritizing and aggressively pursuing work related to the purpose of the Committee resulting in a body of high-quality, results-based Reliability Standards.

3. Assists with the drafts and developingment of the RSDP, including preparing the initial posting for stakeholder comment.

4. Establishes and facilitates informal and formal collaborative, consensus building processes with stakeholder groups and NERC committees throughout Reliability Standards development.

5. Establishes quality assurance and quality control processes for developing or modifyingreviewings of Reliability Standards and applicable associated documents for to align with the criteria established in the Standards Process Manual. clarity, completeness, sufficient detail, rational result, auditability, and enforceability, ands well as compatibility with existing Reliability Standards.

6. Appoints, monitors and directs agile and focused teams for work related to the Standards Process Manual (including, but not limited to, standard drafting teams) generally consisting of no more than ten members (e.g., subject matter experts, a facilitator, a technical writer and compliance, legal and regulatory experts). The drafting teams should be suitably equipped to address the desired reliability objectives.

7. Receives and responds to decisions of appeals panels in accordance with the Reliability Standards process.

8. Develops, maintains and implements a Standard Processes Manual ensuring the integrity of Reliability Standards development in a manner that is fair, balanced, open, and inclusive manner.

9. Facilitates communication about regular NERC Standards department and Standards Committee work, such as Reliability Standards under development and Standards Committee guiding documents.

NERC | Standards Committee Charter | December 9, 2014TBD 3

Standards Committee Charter

Section 4. Membership

Segment Representation The Committee membership consists of two members elected from each industry segment. in accordance with Appendix 3B (Procedures for Election of Members of the Standards Committee) to the NERC Rules of Procedure. Each industry segment may establish its own rules for electing and replacing its SC representatives consistent with the following requirements:

1. Membership Requirements.

a. No two persons employed by the same corporation or organization or by its an affiliates may serve concurrently as Committee members.

1) Any Committee member with such a membership conflict shall notify the Committee secretary who will inform the Committee chair.

2) Members impacted by a conflict, such as through a merger of organizations, may confer between themselves to determine which member should resign from the Committee and notify the Committee secretary and chair. If the impacted members do not resolve the conflict is not resolved in a timely manner by the impacted members, the Committee chair shall notify all members of the affected industry segments of about the need to resolve the conflict. If the membership conflict is still remains unresolved, the Committee chair shall take the conflict to the NERC Board of Trustees for resolution.

3) Any Committee member aware of an unresolved membership issue shall notify the Committee chair.

2. Resignation from the Committee. Any member of the Committee who resigns from the Committee shall submit a written resignation to the Committee secretary and Committee chair.

a. The Committee secretary shall facilitate the election of a replacement member from the applicable industry segment to. The new member shall serve the remainder of the vacant resigned member’s term.

b. If any member of the Committee fails to attend or send a proxy for more than two consecutive regularly scheduled meetings and/or conference calls, or more than two e-mail ballots between regularly-scheduled meetings, the Committee chair shall send a written notice to that member requesting. tThe member either: (i) shall be advised to submit a resign;ation or (ii) provide seek to request continueation of the membership with an explanation of the member’s absencesany extenuating circumstances. If the member does not provide a written response is not received from the member within 30 days calendar days of the date of the written notice, the lack of response shall be deemed a resignation.

3. Committee Member Changing Employment.

a. Any Committee member who leaves one organization and is subsequently employed by another organization in the same industry segment may retain the membership position.

b. If a Committee member changes employment to an organization in a different industry segment, that Committee member shall resign from the Committee no later than the date of the employment change. The resignation letter shall be addressed to the Committee chair who will provide send athe letter to the Committee secretary and requesting an election to fill the vacant position.

4. Canadian Representation. If, at any time, the regular Committee election does not result in at least two voting members seated from Canada, up to two Canadian members garnering the highest percentage of votes within their segment will

NERC | Standards Committee Charter | December 9, 2014TBD 4

Standards Committee Charter

serve as additional Committee members. The preference is to have the Canadian nominees fill any segment vacancies for which they are qualified.

5.4. Membership Terms. Committee members shall serve a term of two years without limitation to the number of terms the members may serve, with members’ terms staggered so half of the members positions (one per segment) are is elected each year by industry segment election. Membership terms start on January 1 of each year.

6.5. Vacancies Caused by Election of Officers. The vacancies in the industry segments and/or Canada representation created by selection of the chair and vice chair shall be filled at the next annual election of Committee representatives. When a representative is elected to serve as the chair or vice chair during the second year of a two year term, the representative elected to fill the vacancy shall serve a one year term.

7.6. NERC Director of Standards. Acts as a non-voting Committee member to represent NERC’s position on agenda items with the assistance of NERC Standards Staff.

Section 5. Officers 1. Selection.

Prior to the annual election of Committee representatives in odd numbered years, the Committee members shall select a chair and vice chair from among their membership by majority vote. The newly- elected chair and vice chair cannot represent the same industry segment. Approximately 150 days calendar days prior to the end of each term, aA nominating committee shall solicit nominations for chair and vice chair no less than 30 days prior to the election. The nominating committee shall consult with the chair of the NERC Board of Trustees’ SC liaison Standards Oversight and Technology Committee on the nominations received.

No less than ten days calendar days before the election date, the nominating committee shall provide to the Committee members the qualifications of the chair and vice chair nominees. At the time of the election, the Committee can accept nominations from the floor. Following the election, the successful candidates shall be presented to the NERC Board of Trustees for approval. The chair and vice chair, upon assuming such positions, shall cease to act as representatives of the industry segments that elected them and shall thereafter be responsible for acting in the best interests of the Committee as a whole.

2. Terms. The term of office for the Committee chair and vice chair is two years without limit on the number of terms an officer may serve. A member of NERC staff serves as the Committee’s non-voting secretary.

3. Voting. The Committee chair and vice chair are non-voting Committee members.

4. Duties of the Chair. In addition to the duties, rights and privileges discussed elsewhere in this document, the Committee chair:

a. Presides over and provides general supervision of Committee and Executive Committee activities and meetings.

b. Presides over all Committee meetings, including the nature and length of discussion, recognition of speakers, motions and voting.

c. In concert with NERC Staff, schedules Committee meetings.

d. Reviews all substitute or proxy representatives.

e. Acts as Committee spokesperson at forums within and outside of NERC.

f. Reports Committee activities to the NERC Board of Trustees and attends Board of Trustees

NERC | Standards Committee Charter | December 9, 2014TBD 5

Standards Committee Charter

meetings.

g. Reports all views and objections when reporting on items brought to the Committee.

h. Performs other duties as directed by the NERC Board of Trustees.

5. Duties of the Vice Chair. The Committee vice chair acts as the Committee chair if requested by the chair (for brief periods of time) or if the chair is absent or unable to perform his/herthe chair’s duties. If the chair resigns prior to the next scheduled election, the vice chair shall act as the chair until the Committee selects a new chair. The vice chair:

a. Assists the Committee chair in managing Committee meetings, including the nature and length of discussion, recognition of speakers, motions, and voting.

b. Attends meetings of the NERC Board of Trustees in the chair’s absence.

c. Assists the chair in managing all Committee meetings, including the nature and length of discussion, recognition of speakers, motions and voting.

d. Assists the Committee chair in reviewing all substitute or proxy representatives.

6. Duties of the Secretary. A member of NERC staff shall serve under the direction of the Committee officers as a non-voting secretary and has the responsibility to:

a. Conduct the day-to-day operation and business of the Committee.

b. Prepare, distribute and post notices of Committee meetings, record meeting proceedings, and prepare, distribute and post meeting minutes.

c. Maintain a record of all Committee proceedings, including attendance, responses, voting records, and correspondence.

d. Maintain Committee membership records.

Section 6. Voting Members’ Expectations and Responsibilities 1. Committee voting members:

a. Contribute to the Committee’s work and success of the Committee by, among other things, executing the Committee Strategic Work Plan.

b. Serve as subject matter expert representatives of their industry segments and represent their industry segments.

c. Should bBe knowledgeable about NERC Reliability Standards development activities.

d. Express their opinions on behalf of their segments at Committee meetings.

e. Respond promptly to all Committee requests for attendance, reviews, comments and voting.

f. Assist in educating the industry on the Reliability Standards development process.

g. When unable to attend a Committee meeting, notify the secretary and identify a proxy as described under Section 8. Meetings, sub section 9. Proxies, infra. The member shall is expected to instruct the proxy on his/her the role and responsibilities.

h. Duty of Care: Use due care and are diligent with respect to the managingement and administerationg of the affairs of NERC and the Committee. This duty of care is generally thought to have two components: (i) the time and attention devoted to NERC’s mission, and (ii) the skill and judgment reflected in the Committee’s decisions.

NERC | Standards Committee Charter | December 9, 2014TBD 6

Standards Committee Charter

i. Duty of Loyalty: The duty of loyalty requires the members to faithfully promote the mission of NERC and the Committee, rather than their own or their entities’ interests. This duty includes compliance with NERC’s policies on conflicts of interest.

j. Duty to Adhere to High Ethical Standards: The duty to adhere to the applicable law and high ethical standards requires that Committee members to devote themselves to enassuring they operate to further NERC’s stated objectives in compliance with legal requirements and high ethical standards.

Section 7. Executive Committee and Subcommittees 1. Executive Committee.

The Committee shall have an Executive Committee (SCEC) consisting of five members, including the Committee officers and plus three segment members, elected by the Committee. The three segment members cannot represent the same industry segments the Committee officers previously represented, nor can aAny two of the segment members cannot be from the same segment. The Executive Committee will be elected annually at the January Committee meeting. The Executive Committee shall meet when necessary between regularly-scheduled Committee meetings to conduct Committee business. However, the SCEC shall not reverse the Committee’s decisions., including actions delegated by the full Committee. Additionally, the Executive Committee shall have the authority to:

a. Work with NERC Standards Staff to set agendas for Committee meetings.

b. Act on the Committee’s behalf to authorize postings of SARs, Reliability Standards, and other Standards-related documents.

c. Provide advice and guidance to subcommittee chairs, as needed.

c.d. Take any actions delegated by the full Committee.

2. Additional Subcommittees, Task Forces, and ad hoc Working Groups. The Committee may form subcommittees, task forces and ad hoc working groups, as it deems appropriate.

Section 8. Meetings 1. Open Meetings.

Committee meetings shall be open to all interested parties, subject to any preregistration meeting requirements who pre-register by the cut-off date included in the meeting announcement. Meeting notices shall describe the meeting’s purpose and identify a readily available source for further information about the meeting. Only voting members may act on items before the Committee. The Committee secretary shall post mMeeting notices and agendas shall be posted publicly on the NERC website contemporaneously with on the same day they are distributed distribution to Committee members. The Committee secretary shall publicly post fFinal minutes of Committee meetings shall be posted publicly on the NERC website within five the days business days of after Committee approval.

2. General Requirements. The Committee shall hold meetings as needed and may use conference calls or e-mail to conduct its business.

3. Notice. The Committee secretary shall announce regularly scheduled meetings with a written notice (letter, facsimile, or e-mail) to all Committee members not less than ten nor more than sixty calendar days prior to the meeting date.

4. Agenda. The secretary shall provide an agenda with a written notice (letter, facsimile, or e-mail) for Committee meetings no less than five business days before a proposed meeting.

NERC | Standards Committee Charter | December 9, 2014TBD 7

Standards Committee Charter

a. The agenda shall include, as necessary, background material for agenda items requiring a decision or vote. The secretary shall post the agenda on the NERC website the same day it is distributed to Committee members.

b. Items not in the agenda that require a vote cannot be added at a meeting without the unanimous consent of the members present. If such a matter arises, it may also be deferred to the next meeting to allow Committee members to consult with their industry segments.

5. Parliamentary Procedures. In the absence of specific provisions in this Charter, the Committee shall conduct its meetings guided by the most recent edition of Robert’s Rules of Order, Newly Revised.

6. Quorum. A quorum requires two-thirds of the Committee voting members.

7. Voting. Voting may take place during regularly scheduled meetings or may take place through electronic means.

a. All Committee actions shall be approved upon receipt of the affirmative vote of a majority of the members present and voting at a meeting with a quorum present, with the exception of revisions to the Standard Processes Manual and the Committee Charter which can be approved only upon receipt of the affirmative vote of two-thirds of the members present and voting at a meeting with a quorum present.

b. Each individual member’s vote for each action taken shall be included in the minutes of each meeting, unless the vote is unanimous with no abstentions.

8. Actions without a Meeting. The Committee may act by mail or electronic (facsimile or e-mail) ballot without a regularly-scheduled meeting. A majority of the members participating in the voting is required to approve any action. A quorum for actions without a meeting is two-thirds of Committee members. The Committee chair or four members (each from a different industry segment) may initiate the request for an action without a meeting. The secretary shall post a notice on the NERC website and provide Committee members a written notice (letter, facsimile, or e-mail) of the subject matter for action not less than three business days prior to the date on which the vote is to be counducted. The secretary shall both distribute a written notice to the Committee (letter, facsimile, or e-mail) of the results of such action within five business days following the vote and post the notice results on the NERC website. The secretary shall keep a record of all responses (e-mails, facsimiles, etc.) from the Committee members with the Committee minutes.

9. Proxies. A Committee member may designate a proxy. Proxies may attend and vote at Committee meetings provided the absent Committee member notifies in writing (letter, facsimile, or e-mail) the Committee chair, vice chair or secretary along with the reason(s) for the proxy. The member shall name the proxy representative and his/her affiliation in the correspondence. No Committee member can serve as a proxy for another Committee member. The proxy must adhere to the Voting Members’ Expectations and Responsibilities as described in Section 6, above.

10 . Field Tests.

When authorizing any field test that modifies or supports NERC Reliability Standard requirement development, it is strongly recommended that the Committee, with input from the applicable drafting team, first receive acceptance from the relevant technical committee (e.g., Operating Committee, Planning Committee, or Critical Infrastructure Protection Committee) that the field test would not be expected to adversely impact BES reliability. Further, if BES reliability is or is expected to be adversely impacted during the course of any field test, the relevant technical committee may request the Standards Committee to suspend the field test until such time that the situation can be reviewed by the relevant technical committee and, if necessary, the field test be modified by the relevant technical committee, as

NERC | Standards Committee Charter | December 9, 2014TBD 8

Standards Committee Charter

appropriate. When authorizing a drafting team to collect and analyze data or to conduct a field test of one or more requirements, the Committee may also request the assistance of the Compliance Monitoring and Enforcement Program.

NERC | Report Title | Report Date I

Standards Committee Charter Approved by the Standards Committee

TBD

NERC | Standards Committee Charter | TBD ii

Table of Contents

Preface ........................................................................................................................................................................... iii

Section 1: Purpose .......................................................................................................................................................... 1

Section 2: Reporting ........................................................................................................................................................ 2

Section 3: Overview and Functions ................................................................................................................................. 2

Section 4: Membership ................................................................................................................................................... 3

Segment Representation ............................................................................................................................................. 3

Section 5: Officers ........................................................................................................................................................... 5

1. Selection .......................................................................................................................................................... 5

2. Terms ............................................................................................................................................................... 5

3. Voting .............................................................................................................................................................. 5

4. Duties of the Chair .......................................................................................................................................... 5

5. Duties of the Vice Chair ................................................................................................................................... 5

6. Duties of the Secretary.................................................................................................................................... 5

Section 6: Voting Members’ Expectations and Responsibilities ..................................................................................... 7

1. Committee voting members: .......................................................................................................................... 7

Section 7: Executive Committee and Subcommittees .................................................................................................... 8

1. Executive Committee. ..................................................................................................................................... 8

2. Additional Subcommittees, Task Forces, and ad hoc Working Groups. ......................................................... 8

Section 8: Meetings ......................................................................................................................................................... 9

1. Open Meetings ................................................................................................................................................ 9

2. General Requirements .................................................................................................................................... 9

3. Notice .............................................................................................................................................................. 9

4. Agenda ............................................................................................................................................................ 9

5. Parliamentary Procedures ............................................................................................................................... 9

6. Quorum ........................................................................................................................................................... 9

7. Voting .............................................................................................................................................................. 9

8. Actions without a Meeting .............................................................................................................................. 9

9. Proxies ........................................................................................................................................................... 10

NERC | Standards Committee Charter | TBD iii

Preface The vision for the Electric Reliability Organization (ERO) Enterprise, which is comprised of the North American Electric Reliability Corporation (NERC) and the seven Regional Entities (REs), is a highly reliable and secure North American bulk power system (BPS). Our mission is to assure the effective and efficient reduction of risks to the reliability and security of the grid. The North American BPS is divided into seven RE boundaries as shown in the map and corresponding table below. The multicolored area denotes overlap as some load-serving entities participate in one Region while associated Transmission Owners/Operators participate in another.

FRCC Florida Reliability Coordinating Council

MRO Midwest Reliability Organization

NPCC Northeast Power Coordinating Council RF ReliabilityFirst

SERC SERC Reliability Corporation

Texas RE Texas Reliability Entity

WECC Western Electricity Coordinating Council

NERC | Standards Committee Charter | TBD

Section 1: Purpose The Standards Committee (the Committee) of the North American Electric Reliability Corporation (NERC), working with NERC Standards Staff, manages and executes the Reliability Standards development process to timely develop and maintain a comprehensive set of results-based Reliability Standards.

NERC | Standards Committee Charter | TBD

Section 2: Reporting The Committee reports and is accountable to the NERC Board of Trustees. The Committee members have the responsibility to keep the industry segments they represent informed regarding Reliability Standards matters. The NERC Board of Trustees shall approve amendments to this Charter pursuant to Section 1300 of the NERC Rules of Procedure.

NERC | Standards Committee Charter | TBD

Section 3: Overview and Functions The Committee manages the NERC process to develop and maintain a comprehensive set of results-based Reliability Standards. Specifically, working together with NERC Standards Staff, the Committee has the following duties:

1. Develop a long-term (multi-year) strategic vision describing the goals and direction for Reliability Standards development consistent with NERC’s strategic and business plans.

2. Coordinate with the Reliability Issues Steering Committee to develop a Reliability Standards Development Plan (RSDP) prioritizing and aggressively pursuing work related to the purpose of the Committee.

3. Assist with developing the RSDP, including preparing the initial posting for stakeholder comment.

4. Establish and facilitate informal and formal collaborative, consensus building processes with stakeholder groups and NERC committees.

5. Establish quality assurance and quality control processes for developing or modifying Reliability Standards and applicable associated documents to align with the criteria established in the Standards Process Manual.

6. Appoint, monitor and direct teams for work related to the Standards Process Manual (including, but not limited to, standard drafting teams) generally consisting of subject matter experts, a facilitator, a technical writer and compliance, legal and regulatory experts suitably equipped to address the desired reliability objectives.

7. Receive and respond to decisions of appeals panels in accordance with the Reliability Standards process.

8. Develop, maintain and implement a Standard Processes Manual ensuring the integrity of Reliability Standards development in a fair, balanced, open, and inclusive manner.

9. Facilitate communication about regular NERC Standards department and Standards Committee work, such as Reliability Standards under development and Standards Committee guiding documents.

NERC | Standards Committee Charter | TBD

Section 4: Membership Segment Representation The Committee membership consists of two members elected from each industry segment in accordance with Appendix 3B (Procedures for Election of Members of the Standards Committee) to the NERC Rules of Procedure. Each industry segment may establish its own rules for electing and replacing its SC representatives consistent with the following requirements:

1. Membership Requirements

a. No two persons employed by the same corporation or organization or an affiliate may serve concurrently as Committee members.

i. Any Committee member with such a membership conflict shall notify the Committee secretary who will inform the Committee chair.

ii. Members impacted by a conflict, such as through a merger of organizations, may confer between themselves to determine which member should resign from the Committee and notify the Committee secretary and chair. If the impacted members do not resolve the conflict in a timely manner, the Committee chair shall notify all members of the affected industry segments of the need to resolve the conflict. If the membership conflict remains unresolved, the Committee chair shall take the conflict to the NERC Board of Trustees for resolution.

iii. Any Committee member aware of an unresolved membership issue shall notify the Committee chair.

2. Resignation from the Committee Any member of the Committee who resigns from the Committee shall submit a written resignation to the Committee secretary and Committee chair.

a. The Committee secretary shall facilitate election of a replacement member from the applicable industry segment to serve the remainder of the resigned member’s term.

b. If any member of the Committee fails to attend or send a proxy for more than two consecutive regularly scheduled meetings or conference calls, or more than two e-mail ballots between regularly-scheduled meetings, the Committee chair shall send a written notice to that member requesting the member either: (i) resign; or (ii) provide an explanation of the member’s absences. If the member does not provide a written response within 30 calendar days of the date of the written notice, lack of response shall be deemed a resignation.

3. Committee Member Changing Employment

a. Any Committee member who leaves one organization and is subsequently employed by another organization in the same industry segment may retain the membership position.

b. If a Committee member changes employment to an organization in a different industry segment, that Committee member shall resign from the Committee no later than the date of the employment change. The resignation letter shall be addressed to the Committee chair who will provide the letter to the Committee secretary and request an election to fill the vacant position.

4. Membership Terms Committee members shall serve a term of two years without limitation to the number of terms the members may serve, with members’ terms staggered so half of the members (one per segment) is elected each year by industry segment election. Membership terms start on January 1 of each year.

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Section 4: Membership

5. Vacancies Caused by Election of Officers The vacancies in the industry segments and/or Canada representation created by selection of the chair and vice chair shall be filled at the next annual election of Committee representatives. When a representative is elected to serve as the chair or vice chair during the second year of a two year term, the representative elected to fill the vacancy shall serve a one year term.

6. NERC Director of Standards Acts as a non-voting Committee member to represent NERC’s position on agenda items with the assistance of NERC Standards Staff.

NERC | Standards Committee Charter | TBD

Section 5: Officers

1. Selection Prior to the annual election of Committee representatives in odd numbered years, the Committee members shall select a chair and vice chair from among their membership by majority vote. The chair and vice chair cannot represent the same industry segment. Approximately 150 calendar days prior to the end of each term, a nominating committee shall solicit nominations for chair and vice chair. The nominating committee shall consult with the NERC Board of Trustees’ SC liaison on the nominations received. No less than ten calendar days before the election date, the nominating committee shall provide to the Committee members the qualifications of the chair and vice chair nominees. At the time of the election, the Committee can accept nominations from the floor. Following the election, the successful candidates shall be presented to the NERC Board of Trustees for approval. The chair and vice chair, upon assuming such positions, shall cease to act as representatives of the industry segments that elected them and thereafter be responsible for acting in the best interests of the Committee as a whole.

2. Terms The term of office for the Committee chair and vice chair is two years without limit on the number of terms an officer may serve. A member of NERC staff serves as the Committee’s non-voting secretary.

3. Voting The Committee chair and vice chair are non-voting Committee members.

4. Duties of the Chair In addition to the duties, rights and privileges discussed elsewhere in this document, the Committee chair:

a. Presides over and provides general supervision of Committee and Executive Committee activities and meetings.

b. Presides over all Committee meetings, including the nature and length of discussion, recognition of speakers, motions and voting.

c. In concert with NERC Staff, schedules Committee meetings.

d. Reviews all substitute or proxy representatives.

e. Acts as Committee spokesperson at forums within and outside of NERC.

f. Reports Committee activities to the NERC Board of Trustees and attends Board of Trustees meetings.

g. Reports all views and objections when reporting on items brought to the Committee.

h. Performs other duties as directed by the NERC Board of Trustees.

5. Duties of the Vice Chair

The Committee vice chair acts as the Committee chair if requested by the chair (for brief periods of time) or if the chair is absent or unable to perform the chair’s duties. If the chair resigns prior to the next scheduled election, the vice chair shall act as the chair until the Committee selects a new chair. The vice chair:

a. Assists the Committee chair in managing Committee meetings, including the nature and length of discussion, recognition of speakers, motions, and voting.

b. Attends meetings of the NERC Board of Trustees in the chair’s absence.

6. Duties of the Secretary A member of NERC staff shall serve under the direction of the Committee officers as a non-voting secretary and has the responsibility to:

NERC | Standards Committee Charter | TBD 6

Section 5: Officers

a. Conduct the day-to-day operation and business of the Committee.

b. Prepare, distribute and post notices of Committee meetings, record meeting proceedings, and prepare, distribute and post meeting minutes.

c. Maintain a record of all Committee proceedings, including attendance, responses, voting records, and correspondence.

d. Maintain Committee membership records.

NERC | Standards Committee Charter | TBD

Section 6: Voting Members’ Expectations and Responsibilities

1. Committee voting members:

a. Contribute to the Committee’s work and success by, among other things, executing the Committee Strategic Work Plan.

b. Serve as subject matter expert representatives of their industry segments and represent their industry segments.

c. Be knowledgeable about NERC Reliability Standards development activities.

d. Express opinions on behalf of their segments.

e. Respond promptly to all Committee requests for attendance, reviews, comments and voting.

f. Assist in educating the industry on the Reliability Standards development process.

g. When unable to attend a Committee meeting, notify the secretary and identify a proxy as described under Section 8. Meetings, sub section 9. Proxies, infra. The member shall instruct the proxy on the role and responsibilities.

h. Duty of Care: Use due care and are diligent with respect to managing and administering the affairs of NERC and the Committee. This duty of care is generally thought to have two components: (i) the time and attention devoted to NERC’s mission, and (ii) the skill and judgment reflected in the Committee’s decisions.

i. Duty of Loyalty: The duty of loyalty requires the members to faithfully promote the mission of NERC and the Committee, rather than their own or their entities’ interests. This duty includes compliance with NERC’s policies on conflicts of interest.

j. Duty to Adhere to High Ethical Standards: The duty to adhere to applicable law and high ethical standards requires Committee members to devote themselves to ensuring they further NERC’s stated objectives in compliance with legal requirements and high ethical standards.

NERC | Standards Committee Charter | TBD

Section 7: Executive Committee and Subcommittees

1. Executive Committee. The Committee shall have an Executive Committee (SCEC) consisting of five members, including the Committee officers plus three segment members, elected by the Committee. Any two of the segment members cannot be from the same segment. The Executive Committee will be elected annually at the January Committee meeting. The Executive Committee shall meet when necessary between regularly-scheduled Committee meetings to conduct Committee business. However, the SCEC shall not reverse the Committee’s decisions. Additionally, the Executive Committee shall have the authority to:

a. Work with NERC Standards Staff to set agendas for Committee meetings.

b. Act on the Committee’s behalf to authorize postings of SARs, Reliability Standards, and other Standards-related documents.

c. Provide advice and guidance to subcommittee chairs, as needed.

d. Take any actions delegated by the full Committee.

2. Additional Subcommittees, Task Forces, and ad hoc Working Groups. The Committee may form subcommittees, task forces and ad hoc working groups, as it deems appropriate.

NERC | Standards Committee Charter | TBD

Section 8: Meetings

1. Open Meetings Committee meetings shall be open to all interested parties, subject to any preregistration meeting requirements included in the meeting announcement. Meeting notices shall describe the meeting’s purpose and identify a readily available source for further information about the meeting. Only voting members may act on items before the Committee. The Committee secretary shall post meeting notices and agendas on the NERC website contemporaneously with distribution to Committee members. The Committee secretary shall publicly post final minutes of Committee meetings on the NERC website within five business days of Committee approval.

2. General Requirements The Committee shall hold meetings as needed and may use conference calls or e-mail to conduct its business.

3. Notice The Committee secretary shall announce regularly scheduled meetings with a written notice (letter, facsimile, or e-mail) to all Committee members not less than ten nor more than sixty calendar days prior to the meeting date.

4. Agenda The secretary shall provide an agenda with a written notice (letter, facsimile, or e-mail) for Committee meetings no less than five business days before a proposed meeting.

a. The agenda shall include, as necessary, background material for agenda items requiring a decision or vote. The secretary shall post the agenda on the NERC website the same day it is distributed to Committee members.

b. Items not in the agenda that require a vote cannot be added at a meeting without the unanimous consent of the members present. If such a matter arises, it may also be deferred to the next meeting to allow Committee members to consult with their industry segments.

5. Parliamentary Procedures In the absence of specific provisions in this Charter, the Committee shall conduct its meetings guided by the most recent edition of Robert’s Rules of Order, Newly Revised.

6. Quorum A quorum requires two-thirds of the Committee voting members.

7. Voting Voting may take place during regularly scheduled meetings or through electronic means.

a. All Committee actions shall be approved upon receipt of the affirmative vote of a majority of the members present and voting at a meeting with a quorum present, with the exception of revisions to the Standard Processes Manual and the Committee Charter which can be approved only upon receipt of the affirmative vote of two-thirds of the members present and voting at a meeting with a quorum present.

b. Each individual member’s vote for each action taken shall be included in the minutes of each meeting, unless the vote is unanimous with no abstentions.

8. Actions without a Meeting The Committee may act by mail or e-mail ballot without a regularly-scheduled meeting. A majority of the members participating in the voting is required to approve any action. A quorum for actions without a meeting is two-thirds of Committee members. The Committee chair or four members (each from a different industry segment) may initiate the request for an action without a meeting. The secretary shall post a notice on the NERC website and provide Committee members a written notice (letter, facsimile, or e-mail) of the subject matter for action not less than three business days prior to the date on which the vote is to be

Section 8: Meetings

NERC | Standards Committee Charter| TBD 10

counted. The secretary shall both distribute a written notice to the Committee (letter, facsimile, or e-mail) of the results of such action within five business days following the vote and post the results on the NERC website. The secretary shall keep a record of all responses (e-mails, facsimiles, etc.) from the Committee members with the Committee minutes.

9. Proxies A Committee member may designate a proxy. Proxies may attend and vote at Committee meetings provided the absent Committee member notifies in writing (letter, facsimile, or e-mail) the Committee chair, vice chair or secretary along with the reason(s) for the proxy. The member shall name the proxy representative and affiliation in the correspondence. No Committee member can serve as a proxy for another Committee member. The proxy must adhere to the Voting Members’ Expectations and Responsibilities as described in Section 6, above.

Agenda Item 9 Standards Committee March 20, 2019

Project 2015-09 Establish and Communicate System Operating Limits

Action

• Discuss the SDT recommendation, associated with FAC-011-4, to revise TOP-001-4 andIRO-008-2 to address issues related to logging and reporting SOL exceedances; and

• Determine whether the modifications to IRO-008-2 and TOP-001-4 are within the scopeof the existing SAR.

Background The purpose of Project 2015-09 Establish and Communicate System Operating Limits is to revise requirements for determining and communicating System Operating Limits (SOLs) to eliminate overlap with approved Transmission Planning (TPL) requirements, enhance consistency with Transmission Operations (TOP) and Interconnection Reliability Operations (IRO) standards, and address issues with determining and communicating SOLs and Interconnection Reliability Operating Limits (IROLs) identified in Project 2015-03 Periodic Review of System Operating Limit Standards. The project deliverables are intended to benefit reliability by improving alignment with approved Transmission Planning (TPL) and proposed Transmission Operations (TOP) and Interconnection Reliability Operations and Coordination (IRO) standards. The project may result in development of one or more Reliability Standards and definitions.

While addressing comments from the last ballot, the standard drafting team (SDT) became aware the following issue when an SOL exceeds the associated Facility Rating:

The combination of proposed FAC-011 Requirement R6, approved TOP-001-4 Requirements R14 and R15, and IRO-008-2 does not allow for defining which SOL exceedances require logging and notification, which creates an administrative burden for operators.

The SDT would like to make clarifying modifications to IRO-008-2 and TOP-001-4 to address consistency with proposed FAC-011-4 Requirement R6.

An industry webinar was held on February 21 to provide an overview of the issue and ask for input via a survey. The survey was sent February 28, 2019.

Standards Authorization Request Form NERC welcomes suggestions to improve the reliability 

of the bulk power system through improved reliability 

standards. Please use this form to submit your request 

to propose a new or a revision to a NERC’s Reliability 

Standard.

Request to propose a new or a revision to a Reliability Standard

Title of Proposed Standard(s):  Establish and Communicate System Operating Limits 

Date Submitted:  September 29, 2017 

SAR Requester Information 

Name:  Project 2015‐09 SDT 

Organization:  NERC 

Telephone:  404.446.9691  E‐mail:  steven.noess@nerc.net 

SAR Type (Check as many as applicable) 

     New Standard 

     Revision to existing Standard 

     Withdrawal of existing Standard 

     Urgent Action 

SAR Information 

Purpose (Describe what the standard action will achieve in support of Bulk Electric System reliability.): 

The project will revise requirements for determining and communicating System Operating Limits (SOLs) used in the reliable planning and operation of the Bulk Electric System (BES). 

Industry Need (What is the industry problem this request is trying to solve?): 

FAC standards fulfill an important reliability objective for determining and communicating SOLs used in the reliable planning and operation of the Bulk Electric System (BES). Revisions are necessary to improve the requirements by eliminating overlap with approved Transmission Planning (TPL) requirements, enhancing consistency with Transmission Operations (TOP) and Interconnection Reliability Operations (IRO) standards, and addressing issues with determining and communicating SOLs and Interconnection Reliability Operating Limits (IROLs).  

When completed, email this form to: sarcomm@nerc.net

Agenda Item 9(i)Standards CommitteeMarch 20, 2019

 

Establish and Communicate System Operating Limits ‐ Standards Authorization Request September 29, 2017  2 

SAR Information 

Brief Description (Provide a paragraph that describes the scope of this standard action.) 

The proposed standards project will revise the requirements for determining and communicating SOLs and IROLs to address issues identified in Project 2015‐03 Periodic Review of System Operating Limit Standards. The resulting standard(s) and definition(s) will benefit reliability by improving alignment with approved TPL and proposed TOP and IRO standards. The project may result in development of one or more proposed Reliability Standards and definitions and may consolidate reliability objectives from the existing three Reliability Standards. Where necessary, the standard drafting team (SDT) will review and modify existing Reliability Standards and NERC Glossary terms (definitions) for incorporating the new and/or revised definitions. 

Detailed Description (Provide a description of the proposed project with sufficient details for the 

standard drafting team to execute the SAR. Also provide a justification for the development or revision 

of the standard, including an assessment of the reliability and market interface impacts of implementing 

or not implementing the standard action.) 

The standards development project will consider recommendations from Project 2015‐03 Periodic 

Review of System Operating Limits. This review included inputs from the Independent Experts Review 

Project (IERP), FERC Directives, and Paragraph 81 concepts. When completed, the project will address 

all issues identified in the Periodic Review Recommendations (PRRs) for FAC‐010‐3, FAC‐011‐3, and FAC‐

014‐2, including:  

Propose retirement of FAC‐010‐3. BES planning is covered under approved TPL‐001‐4 which 

provides comprehensive requirements for a variety of contingencies. The standards project will 

propose retirement of FAC‐010‐3.  

Clarify acceptable System performance criteria for the operations time horizon. The proposed 

standards project will develop continent‐wide standards for system performance in the 

operations time horizon to replace currently‐enforceable requirements in FAC‐011‐3 that specify 

acceptable system performance through the Reliability Coordinator's (RC) SOL methodology. 

Development of a table similar to TPL‐001‐4 Table 1 with appropriate requirements for the 

operations time horizon would enhance clarity and consistency. This project will determine the 

appropriate family of standards for this table.  

Propose requirements to address identified reliability issues. Requirement(s) will be developed 

to address FERC Order No. 777 directive for the communication of IROL information to 

Transmission Owners (P6 and P41). FERC Order No. 777 states: 

“As discussed below, we also direct NERC to develop a means to assure that IROLs are 

communicated to transmission owners.” (P 6) 

 

“NERC should establish a clearly defined communication structure to assure that IROLs and 

 

Establish and Communicate System Operating Limits ‐ Standards Authorization Request September 29, 2017  3 

SAR Information 

changes to IROL status are timely communicated to transmission owners...One way to achieve 

this objective...is to modify FAC‐014 to require the provision of IROLs to transmission owners. 

However, we leave it to NERC to determine the most appropriate means for communicating IROL 

status to transmission owners.”  (P 41) 

Revise or develop new definitions to provide clarity and alignment with how SOLs are treated in 

proposed TOP and IRO standards developed in Project 2014‐03 Revisions to TOP and IRO 

Standards. This work may include, but is not limited to, revising the definition of System 

Operating Limit (SOL) and creating a new definition for SOL Exceedance. The project will also 

address the issues identified in the FAC PRRs related to the application of the IROL term. 

Proposed definitions should provide clarity and consistency to establishing SOLs and IROLs and 

promote a common understanding of what it means to establish and exceed SOLs. The SDT will 

review the existing body of NERC Reliability Standards and NERC Glossary terms (definitions) and 

where appropriate, modify those standards and definitions by incorporating the new terms 

and/or definitions of SOL Exceedance and System Voltage Limit, as well as the revised definition 

of SOL. The SDT will coordinate with other drafting teams on relevant standards as necessary. 

Clarify responsibilities for establishing and communicating SOLs. The project will propose 

requirements to clearly delineate the functional entity responsibilities for determining and 

communicating each type of SOL (Facility Ratings, System voltage limits, voltage stability limits, 

and transient stability limits) where not already addressed in existing standards (e.g., FAC‐008).  

Develop revised or new requirement(s) that facilitate transfer of necessary reliability 

information between the planning and operating entities for establishing and communicating 

System Operating Limits.  

Revise requirements to conform to the Results‐Based Standards format, functional entity terms 

found in the NERC Functional Model, guidelines for compliance elements, and NERC standards 

for content and quality (Independent Experts Review Project). 

 

 

Reliability Functions 

The Standard will Apply to the Following Functions (Check each one that applies.) 

 Regional Reliability 

Organization 

Conducts the regional activities related to planning and operations, and 

coordinates activities of Responsible Entities to secure the reliability of 

the Bulk Electric System within the region and adjacent regions. 

 

Establish and Communicate System Operating Limits ‐ Standards Authorization Request September 29, 2017  4 

Reliability Functions 

  Reliability Coordinator 

Responsible for the real‐time operating reliability of its Reliability 

Coordinator Area in coordination with its neighboring Reliability 

Coordinator’s wide area view. 

  Balancing Authority 

Integrates resource plans ahead of time, and maintains load‐

interchange‐resource balance within a Balancing Authority Area and 

supports Interconnection frequency in real time. 

  Interchange Authority 

Ensures communication of interchange transactions for reliability 

evaluation purposes and coordinates implementation of valid and 

balanced interchange schedules between Balancing Authority Areas. 

  Planning Coordinator   Assesses the longer‐term reliability of its Planning Coordinator Area. 

  Resource Planner Develops a >one year plan for the resource adequacy of its specific loads 

within a Planning Coordinator area. 

  Transmission Planner Develops a >one year plan for the reliability of the interconnected Bulk 

Electric System within its portion of the Planning Coordinator area. 

 Transmission Service 

Provider 

Administers the transmission tariff and provides transmission services 

under applicable transmission service agreements (e.g., the pro forma 

tariff). 

  Transmission Owner  Owns and maintains transmission facilities. 

 Transmission 

Operator 

Ensures the real‐time operating reliability of the transmission assets 

within a Transmission Operator Area. 

  Distribution Provider  Delivers electrical energy to the End‐use customer. 

  Generator Owner  Owns and maintains generation facilities. 

  Generator Operator  Operates generation unit(s) to provide real and Reactive Power. 

 Purchasing‐Selling 

Entity 

Purchases or sells energy, capacity, and necessary reliability‐related 

services as required. 

  Market Operator  Interface point for reliability functions with commercial functions. 

  Load‐Serving Entity Secures energy and transmission service (and reliability‐related services) 

to serve the End‐use Customer. 

 

 

Establish and Communicate System Operating Limits ‐ Standards Authorization Request September 29, 2017  5 

Reliability and Market Interface Principles

Applicable Reliability Principles (Check all that apply). 

 1. Interconnected bulk power systems shall be planned and operated in a coordinated manner 

to perform reliably under normal and abnormal conditions as defined in the NERC Standards. 

 2. The frequency and voltage of interconnected bulk power systems shall be controlled within 

defined limits through the balancing of real and Reactive Power supply and demand. 

 3. Information necessary for the planning and operation of interconnected bulk power systems 

shall be made available to those entities responsible for planning and operating the systems reliably. 

 4. Plans for emergency operation and system restoration of interconnected bulk power systems 

shall be developed, coordinated, maintained and implemented. 

 5. Facilities for communication, monitoring and control shall be provided, used and maintained 

for the reliability of interconnected bulk power systems. 

 6. Personnel responsible for planning and operating interconnected bulk power systems shall be 

trained, qualified, and have the responsibility and authority to implement actions. 

 7. The reliability of the interconnected bulk power systems shall be assessed, monitored and 

maintained on a wide area basis. 

  8. Bulk power systems shall be protected from malicious physical or cyber attacks. 

Does the proposed Standard comply with all of the following Market Interface 

Principles? 

Enter 

(yes/no) 

1. A reliability standard shall not give any market participant an unfair competitive advantage. 

YES 

2. A reliability standard shall neither mandate nor prohibit any specific market structure. 

YES 

3. A reliability standard shall not preclude market solutions to achieving compliance with that standard. 

YES 

4. A reliability standard shall not require the public disclosure of commercially sensitive information.  All market participants shall have equal opportunity to access commercially non‐sensitive information that is required for compliance with reliability standards. 

YES 

 

Related Standards

Standard No.  Explanation 

   

FAC‐010‐3  Project 2015‐03 PRR recommends retirement. 

FAC‐011‐3  Project 2015‐03 PRR recommends revision. 

 

Establish and Communicate System Operating Limits ‐ Standards Authorization Request September 29, 2017  6 

Related Standards

FAC‐014‐2  Project 2015‐03 PRR recommends revision. 

FAC‐015‐1  Project 2015‐09 SDT proposed new. 

Other standards 

and NERC Glossary 

terms/definitions 

Project 2015‐09 SDT proposed revisions, as required to account for the use of any 

new and modified NERC Glossary definitions. 

 

Related SARs

SAR ID  Explanation 

   

   

 

Regional Variances

Region  Explanation 

ERCOT   

FRCC   

MRO   

NPCC   

RFC   

SERC   

SPP   

WECC  Regional Differences (Section E) is being reviewed through the WECC standards process. 

 

Project 2015-09Opening TOP and IRO Standards to Address Entity Comments

Stephen Solis, 2015-09 SDT MemberMarch 20, 2019

Agenda Item 9(ii)Standards CommitteeMarch 20, 2019

RELIABILITY | ACCOUNTABILITY2

• Presenters Standard Drafting Team (SDT)o Member, Stephen Solis, ERCOT

• Project 2015-09 Status• Next Steps• Questions and Answers

Agenda

RELIABILITY | ACCOUNTABILITY3

• The Standard Drafting Team (SDT) for NERC Project 2015-09 would like to open IRO-008-2 and TOP-001-4 to make clarifying modifications to a few Requirements to address consistency with proposed FAC-011-4 Requirement R6.

Executive Summary

RELIABILITY | ACCOUNTABILITY4

• The SDT is modifying FAC standards that address SOLs and IROLs.

• Primary objective is to align the FAC standards with existing IRO, TOP, and TPL standards, as well as definitions for Operational Planning Analysis and Real-time Assessment.

• Two formal ballots - the proposed FAC standards have yet to pass.

• SAR is broadly written to allow impacted standards to be modified. For example, the SDT is modifying several standards in response to the

proposed retirement of FAC-010-3.

Background

RELIABILITY | ACCOUNTABILITY5

• Primary area of concern over “SOL exceedance” Requirement in FAC-011-4 is creating unreasonable compliance burden for certain IRO and TOP standard Requirements.

• The phrase “SOL exceedance” and “exceeding an SOL” is used in several Requirements in the TOP and IRO standards.

• However, there is no NERC Glossary definition of the phrase nor do the standards clearly state when an SOL exceedance exists.

• The NERC SOL White Paper, which was created as part of the development of the current TOP and IRO standards, describes SOL exceedance concepts and attempts to clarify when an SOL exceedance exists. The white paper is now an ERO endorsed Implementation Guidance.

Background

RELIABILITY | ACCOUNTABILITY6

• However, because the SOL White Paper is not a Requirement in the standards, several TOPs and RCs have adopted their own internal definition of SOL exceedance.

• Proposed FAC-011-4 Requirement R6 takes the concepts from the NERC SOL White Paper and codifies them in the form of a Requirement, thereby “firming up” when SOL exceedance exists under the standards.

• This “firming up” changes the manner in which certain TOPs and RCs currently log SOL exceedances and document actions taken to mitigate those exceedances for demonstrating compliance.

Background

RELIABILITY | ACCOUNTABILITY7

• Several entities have a market mechanism for addressing projected post-Contingency exceedances identified in Real-time Assessments (as part of Real-time Contingency Analysis (RTCA)).

• For these entities, if any projected post-Contingency exceedance identified in Real-time Assessments (as part of RTCA) persists for longer than 30 minutes, it is escalated to perform other mitigating actions per the Operating Plan, including keeping logs and documentation of such actions.

• For these entities, a projected post-Contingency exceedance identified in Real-time Assessments (as part of RTCA) is considered an “SOL exceedance” only when it persists for longer than 30 minutes.

Example

RELIABILITY | ACCOUNTABILITY8

• FAC-011-4 Requirement R6 under development:R6. Each Reliability Coordinator shall include in its SOL Methodology a method for determining SOL exceedances when performing Real-time monitoring, Real-time Assessments, and Operational Planning Analyses, based on the following performance criteria:6.1. The evaluation of System performance for no Contingencies demonstrates the following: [subparts follow]6.2. The evaluation of System performance for the single Contingencies […] demonstrates the following: [subparts follow]

• NOTE: FAC-011 Requirement R6 requires the RC’s SOL Methodology have a method for determining SOL exceedances that include both “no-Contingency” (a.k.a., pre-Contingency) conditions and evaluated “post-Contingency” conditions.

Proposed FAC-011 Requirement R6

RELIABILITY | ACCOUNTABILITY9

• Per proposed FAC-011-4 R6, if a TOP’s Real-Time Assessment (as part of RTCA) indicates that a Contingency is expected to result in a Facility exceeding its Emergency Rating, an SOL is beingexceeded.

• TOP-001-4 Requirements R14 and R15 states the following: R14. Each Transmission Operator shall initiate its Operating Plan to

mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment.

R15. Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded.

Impacts on TOP-001-4

RELIABILITY | ACCOUNTABILITY10

• Per these Requirements, each time a Real-time Assessment for post-Contingency conditions (as part of RTCA) identifies an “SOL exceedance” per proposed FAC-011-4 Requirement R6, Part 6.2, the TOP is required to document the steps taken in the Operating Plan to mitigate the issue, to contact the RC (per R15) to describe the steps taken to mitigate the issue, and to ensure that all compliance documentation is retained.

• Several entities argue that proposed FAC-011-4 Requirement R6 creates an undue burden for logging, communicating with the RC/TOP, and creating audit-ready compliance documentation.

• They also argue that such a burden diverts the System Operators’ attention from operating the system reliably to performing unnecessary logging and documenting for compliance purposes, which creates an increased reliability risk.

Undue Burden

RELIABILITY | ACCOUNTABILITY11

• The SDT firmly believes that proposed FAC-011-4 Requirement R6 improves reliability by codifying and “firming up” the concepts of SOL exceedance found in the NERC SOL White Paper.

• Proposed FAC-011-4 Requirement R6 also maps to the currently effective FAC-011-3 Requirement R2 and subparts.

• The SDT agrees that the “firming up” of SOL exceedance in proposed FAC-011-4 Requirement R6 would not provide these entities flexibility to retain their current practices for logging, communicating, and documenting compliance evidence.

• The SDT considered addressing these concerns in the proposed FAC-011-4; however, the SDT thinks that changes in FAC-011-4 alone must be coupled with modifications to IRO-008-2 and TOP-001-4 to address noted issues.

SDT Position

RELIABILITY | ACCOUNTABILITY12

The FAC SDT proposes clarifying modifications to the following standards to address the undue burden for documentation and communication: IRO-008-2o Requirement R5 and associated measure M5

TOP-001-4o Measure M14o Requirement R15 and associated measure M15o Compliance evidence retention for Requirement R14

Suggested Changes

RELIABILITY | ACCOUNTABILITY13

• To introduce a mechanism that allows TOPs to mitigate SOL exceedances (excluding IROLs and non-IROL stability limits) within a certain timeframe without being required to document TOP actions and without being required to communicate with its RC.

• Only those SOL exceedances that persist beyond a specified time threshold (not to exceed 30 minutes) would require logging, communication, and documentation for compliance audit purposes.

• This provision would be accomplished through a Requirement in FAC-011-4 and corresponding modifications to IRO-008-2 and TOP-001-4.

Proposed Concept

RELIABILITY | ACCOUNTABILITY14

• Both the RC and the TOP are required to perform Real-time Assessments (RTA) at least once every 30 minutes. They should be seeing the same thing.

• An entity that performs a RTA only once every 30 minutes, as required by the standards, would be required to log, notify (RC and TOP), and document SOL exceedances that are not mitigated by the next RTA. For these entities, this is what the standards require today.

• An entity that performs a RTA more frequently than once every 30 minutes, would be required to log, notify, and document SOL exceedances that are not mitigated within the time threshold specified in the SOL methodology (not to exceed 30 minutes).

• The provision rewards entities who perform RTAs more frequently than once every 30 minutes, and who take prompt mitigation action based on these more frequent RTAs.

Why Does it Work?

RELIABILITY | ACCOUNTABILITY15

• This concept provides several key reliability benefits: It significantly lightens the logging, communication, and compliance

documentation burden for TOP and RC System Operators so that they can focus on the reliability task at hand.

It maintains the current operations paradigm in the reliability standards of the shared responsibility of reliability between the TOP and the RC, while improving efficiencies by allowing the TOP to be the first responder and involving the RC after the TOP has had a chance to mitigate the SOL exceedance without RC intervention.

It provides TOPs with an incentive to quickly mitigate SOL exceedances. It averts unnecessary communication between the TOP and the RC so that

System Operators can direct more focus on addressing reliability.

Benefits

RELIABILITY | ACCOUNTABILITY16

Agenda Item 10 Standards Committee March 20, 2019

Project 2016-02 Modifications to CIP Standards – IROL Modifications

Action Discuss the status of Project 2016-02 regarding modifications to CIP-002-5.1a and coordination with Project 2015-09.

Background Reliability Standard CIP-002-5.1a (Impact Rating Criterion 2.6 in Attachment 1) references Interconnection Reliability Operations (IROLs). The Project 2015-09 SDT determined it was necessary to modify CIP-002-5.1a to account for the retirement of FAC-010-3 and elimination of a requirement to identify System Operating Limits (SOLs) and IROLs. The Project 2015-09 SDT developed draft language to replace the reference to such IROLs in Criterion 2.6. In addition, the Project 2015-09 SDT recommends revising the IROLs reference in Impact Rating Criterion 2.9 in Attachment 1 to CIP-002-5.1a. Project 2016-02 was assigned a Standards Authorization Request to make these edits to CIP-002-5.1a since the standard had already passed an initial ballot separately. However, the IROL edits did not meet industry approval.

Currently, an ad hoc team has recommended replacing the term ‘IROL’ with the current IROL definition and clarifying the CIP-002 use of IROLs refers to planning horizons of more than one year. The updated modification will allow CIP-002 to move forward with the Transmission Owner Control Center modification and the IROL reference removed. There is a phase 2 for the Project 2015-09 team, which will allow for any future modifications to be made by that SDT.

Agenda item 12 Standards Committee March 20, 2019

NERC Legal and Regulatory Update February 5, 2019 – March 6, 2019

NERC FILINGS TO FERC SUBMITTED SINCE LAST SC UPDATE

FERC Docket No. Filing Description FERC Submittal

Date

Pending

Petition of NERC for Approval of Proposed Reliability Standard CIP-008-6

NERC submits a petition for approval of Proposed Reliability Standard CIP-008-6 (Cyber Security - Incident Reporting and Response Planning). The proposed Reliability Standard addresses FERC's directives from Order No. 848.

3/7/2019

Pending

Joint Petition of NERC and WECC for Approval of Proposed Regional Reliability Standard for IRO-006-WECC-3

NERC and WECC jointly submitted proposed Regional Reliability Standard IRO-006-WECC-3 (Qualified Path Unscheduled Flow (USF) Relief) for FERC approval. Regional Reliability Standard IRO-006-WECC-3 addresses the requests for transmission relief due to unscheduled flow on Qualified Paths in the Western Interconnection.

3/6/2019

RM18-8-000

Informational Filing of NERC regarding Reliability Standard TPL-007-3

NERC submitted an informational filing regarding Reliability Standard TPL-007-3 (Transmission System Planned Performance for Geomagnetic Disturbance Events).

*NERC has filed Reliability Standard TPL-007-3 for approval witheach Canadian Jurisdiction and submitted the standard to FERCfor informational purposes only.

2/21/2019

RD18-3-000

Amendment to the Joint Petition of NERC and WECC for Approval of Retirement of Regional Reliability Standard PRC-004-WECC-2

NERC and WECC jointly submitted an amendment to the joint petition for the approval of the retirement of Regional Reliability Standard PRC-004-WECC-2. The amendment seeks to coordinate the retirement of PRC-004-WECC-2 with the effective date of continent-wide Reliability Standard PRC-012-2.

2/11/2019

2

FERC ISSUANCES SINCE LAST SC UPDATE

UPCOMING FILING DATES

FERC Docket No. Filing Description Projected Filing

Date

RR09-6-000 Annual Directives Report to FERC 3/29/2019

FERC Docket No. Issuance Description FERC Issuance

Date

RR19-2-000

Letter Order Approving Amendments to Appendix 3A of the NERC ROP, Standards Processes Manual

FERC issued a delegated letter order approving NERC's November 19, 2018 filing of proposed amendments to Appendix 3A of the NERC Rules of Procedure, Standards Processes Manual. The amendments will: (1) enhance processes for field test to support standards development for posting supporting technical documents; (2) improve the processes for appeals and interpretations; (3) provide language to clarify existing standard processes; and (4) streamline language, address formatting items and make other necessary changes.

3/1/2019

Standards Committee Expectations Approved by Standards Committee January 12, 2012

Background Standards Committee (SC) members are elected by members of their segment of the Registered Ballot Body, to help the SC fulfill its purpose. According to the Standards Committee Charter, the SC’s purpose is:

In compliance with the NERC Reliability Standards Development Procedure, the Standards Committee manages the NERC standards development process for the North American-wide reliability standards with the support of the NERC staff to achieve broad bulk power system reliability goals for the industry. The Standards Committee protects the integrity and credibility of the standards development process.

The purpose of this document is to outline the key considerations that each member of the SC must make in fulfilling his or her duties. Each member is accountable to the members of the Segment that elected them, other members of the SC, and the NERC Board of Trustees for carrying out their responsibilities in accordance with this document.

Expectations of Standards Committee Members

1. SC Members represent their segment, not their organization or personal views. Each member isexpected to identify and use mechanisms for being in contact with members of the segment inorder to maintain a current perspective of the views, concerns, and input from that segment. NERCcan provide mechanisms to support communications if an SC member requests such assistance.

2. SC Members base their decisions on what is best for reliability and must consider not only what isbest for their segment, but also what is in the best interest of the broader industry and reliability.

3. SC Members should make every effort to attend scheduled meetings, and when not available arerequired to identify and brief a proxy from the same segment. Standards Committee businesscannot be conducted in the absence of a quorum, and it is essential that each Standards Committeemake a commitment to being present.

4. SC Members should not leverage or attempt to leverage their position on the SC to influence theoutcome of standards projects.

5. The role of the Standards Committee is to manage the standards process and the quality of theoutput, not the technical content of standards.

Agenda Item 13a Standards Committee March 20, 2019

Parliamentary Procedures

Agenda Item 13d Standard Committee March 20, 2019

Based on Robert’s Rules of Order, Newly Revised, 11th Edition, plus “Organization and Procedures Manual for the NERC Standing Committees”

Motions Unless noted otherwise, all procedures require a “second” to enable discussion.

When you want to… Procedure Debatable Comments Raise an issue for discussion

Move Yes The main action that begins a debate.

Revise a Motion currently under discussion

Amend Yes Takes precedence over discussion of main motion. Motions to amend an amendment are allowed, but not any further. The amendment must be germane to the main motion, and cannot reverse the intent of the main motion.

Reconsider a Motion already approved

Reconsider Yes Allowed only by member who voted on the prevailing side of the original motion.

End debate Call for the Question or End Debate

No If the Chair senses that the committee is ready to vote, he may say “if there are no objections, we will now vote on the Motion.” The vote is subject to a 2/3 majority approval. Also, any member may call the question. This motion is not debatable. The vote is subject to a 2/3 vote.

Record each member’s vote on a Motion

Request a Roll Call Vote

No Takes precedence over main motion. No debate allowed, but the members must approve by 2/3 majority.

Postpone discussion until later in the meeting

Lay on the Table Yes Takes precedence over main motion. Used only to postpone discussion until later in the meeting.

Postpone discussion until a future date

Postpone until Yes Takes precedence over main motion. Debatable only regarding the date (and time) at which to bring the Motion back for further discussion.

Remove the motion for any further consideration

Postpone indefinitely

Yes Takes precedence over main motion. Debate can extend to the discussion of the main motion. If approved, it effectively “kills” the motion. Useful for disposing of a badly chosen motion that can not be adopted or rejected without undesirable consequences.

Request a review of procedure

Point of order No Second not required. The Chair or secretary shall review the parliamentary procedure used during the discussion of the Motion.

- 1 -

Notes on Motions Seconds. A Motion must have a second to ensure that at least two members wish to discuss the issue. The “seconder” is not recorded in the minutes. Neither are motions that do not receive a second.

Announcement by the Chair. The Chair should announce the Motion before debate begins. This ensures that the wording is understood by the membership. Once the Motion is announced and seconded, the Committee “owns” the motion, and must deal with it according to parliamentary procedure.

- 2 -

Voting Voting Method When Used How Recorded in Minutes Unanimous Consent The standard practice.

When the Chair senses that the Committee is substantially in agreement, and the Motion needed little or no debate. No actual vote is taken.

The minutes show “by unanimous consent.”

Vote by Voice The standard practice. The minutes show Approved or Not Approved (or Failed).

Vote by Show of Hands (tally)

To record the number of votes on each side when an issue has engendered substantial debate or appears to be divisive. Also used when a Voice Vote is inconclusive. (The Chair should ask for a Vote by Show of Hands when requested by a member).

The minutes show both vote totals, and then Approved or Not Approved (or Failed).

Vote by Roll Call To record each member’s vote. Each member is called upon by the Secretary, and the member indicates either “Yes,” “No,” or “Present” if abstaining.

The minutes will include the list of members, how each voted or abstained, and the vote totals. Those members for which a “Yes,” “No,” or “Present” is not shown are considered absent for the vote.

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