reliability and security committee lauby presentation.pdf · positions, on rsc endorsed initiatives...

RELIABILITY | RESILIENCE | SECURITY

Reliability and Security Committee

Mark LaubySenior Vice President and Chief EngineerWECC Annual MeetingSeptember 10, 2019

RELIABILITY | RESILIENCE | SECURITY2

• Objectives Enhance ERO effectiveness in executing its statutory functions, recognizing

the value of industry expertise Improve the efficiency of ERO operations and use of stakeholder resources

• Four-legged approach

Objectives and Approach

Stakeholder EngagementNERC

Initiatives

ERO Enterprise “Coordination costs/

Opportunities” Regional Entity

Initiatives


Three Focus Areas in 2019

• Stakeholder Engagement Review Existing Committee Structure Investigate and identify a more nimble structure Set Plan in motion for 2020

• Compliance Monitoring and Enforcement Program (Align) Bring together process and procedures through the ERO Enterprise Single tool rather than customized by region, reduced licensing costs

• Standards Efficiency Review Review requirements for elimination, consolidation or improvement. 80 requirements reduced in Phase 1 Phase 2 has begun


Stakeholder Engagement /Committees

• The current model has been in place for over 10 years Model is expensive and time consuming for NERC members The ERO Enterprise has matured Several REs have had success enhancing their committee models

• Changing industry model Advances in new and unfamiliar technologies (e.g., inverters, batteries) Risk profiles changing (e.g., fuel assurance, ERS preservation with resource

mix changes)

• Committee “silos” blurring Committee activities increasingly overlap New technology requires cross-cutting rethinking of many utility paradigms


OC, PC, and CIPC: Increasing Convergence


Current NERC Stakeholder Committees


OC, PC, and CIPC: Future State

• Is there a different structure? Strengthen alignment of stakeholder input with ERO Enterprise priorities Accommodate the changing industry model Focus on reliability and security risks from a strategic planning, operating

and security perspective Effectively address the increasing overlap between the committees Achieve a higher level of industry participation (effectiveness) and more

cost-effectively leverage subject matter expertise (efficiency)

Right people working on the right issues


Vision / Future Needs

• We pivot quickly and refocus resources rapidly We are in an ever changing world and the pace of change is accelerating Agile teams need to be readily deployed to address emerging issues How do we meet accelerated schedule for solving problems?

• We bring multi-disciplined teams together to develop “complete” solutions Complex issues facing the industry that don’t fit into one basket What is mix of knowledge/skills/abilities (participation model): Planning,

Operations, CIP and Legal?


• Participants in the evaluation process include: Operating Committee (OC), Planning Committee (PC), and Critical

Infrastructure Protection Committee (CIPC) Chairs Member Representatives Committee (MRC) Chair and Vice Chair Industry volunteers Regional Entity (RE) staff Two NERC Board and staff

Stakeholder Engagement Team


SET Technical Committee Review

• All activities of the OC/PC/CIPC reviewed, concluding with: Technical committee participation is based on sectors (OC/PC) or Regional

nomination (CIPC). Technical committee activities focused on work plan development,

evaluation, and execution by the subgroups that report to them Most of the work completed by the subcommittees, working groups, and

task forces Subgroup report-outs are occurring on a quarterly basis at the technical

committee meetings Some subcommittees have ongoing recurring deliverables while others are

more ad hoc task oriented Some reliability risk issues are being addressed in several subcommittees,

leading to uncoordinated results and less end-to-end solutions.


Committee Structure Options

• Need to ensure work plans are coordinated and for more end-to-end solution development for reliability/security risks.

• Five different potential models developed, narrowed down to two options: Option 1: Retain existing technical committee structure and create an

oversight committee which coordinates and directs their work Option 2: Replace OC, PC, and CIPC with a Reliability and Security

Committee (RSC) that reports to the Board


Potential Committee Structures – Option 2

• Replace OC, PC, and CIPC with the Reliability and Security Committee (RSC)• Retain existing subcommittees, working groups, and task forces• Will evaluate work products of subcommittees, working groups, and task

forces and eliminate or combine those without recurring responsibilities

NERC Board

Operating Committee

OC Subcommittees, Working Groups,

Task Forces

Planning Committee

Critical Infrastructure

Protection Committee

PC Subcommittees, Working Groups,

Task Forces

CIPC Subcommittees, Working Groups,

Task Forces

NERC Board


Task Forces



Task Forces


Task Forces


• Improved effectiveness of communication to inform the RSC work with input from the Board and MRC

• Efficiencies from streamlining the operation of the three existing technical committees into one committee

• Enhanced functional alignment between RISC priorities and mitigations, and the RSC directed technical work

• Effective and efficient development of end-to-end technical solutions to mitigate existing and emerging risks to reliability

Benefits From Option 2


Communications / Streamlining

• Improved effectiveness of communication to inform the RSC work with input from the Board and MRC Replacing the three existing technical committees with one committee will

enhance communications between the RSC and the NERC Board. Reduced committee report-out time, increases the time the Board and MRC

can discuss strategic and policy items to provide RSC direction

Efficiencies from streamlining the operation of the three existing technical committees into one committee Efficiencies gained by streamlining the operation of the three existing

technical committees into one committee Replacing the OC, PC, and CIPC with the RSC will provide efficiencies in

terms of both NERC and industry support, along with hotel/travel costs


Better Functional Alignment

• Better functional alignment between the RISC and the technical work overseen by the RSC Like the RISC, the RSC will report to the NERC Board The RSC will be a committee that, in concert with NERC, initiates and

oversees the development of technical assessments and analysis that:o Support the analytical assessment function of the ERO; and o Provide products that industry can use to mitigate risks to the bulk power system


Better Functional Alignment

NERC Board


Task Forces



Task Forces


Task Forces

Reliability Issues Steering Committee


• July 11 - August 6, 2019 - MRC Policy Input period • July 19, 2019 – MRC Information Session where RSC Proposal

was discussed• July 12 – August 15, 2019 – Industry Comment Period• August 8, 2019 – Industry Webinar• August 14, 2019 – MRC Meeting where RSC Proposal was

discussed

MRC Policy Input and Industry Comments


• Participation Model should have 2 members per sector• Provisions for Canadian representation• Publish the meeting minutes • Please explain what is meant by blurring and provide some

examples of where this has occurred• A robust and systematic selection process must be developed• Add criteria to ensure "balanced representation and expertise"

within the RSC• Will the RSC meetings be open?• Clarify how the RSC meetings will incorporate the information

sharing and awareness that current occurs at CIPC

MRC Policy Input and Industry Comments – General Themes


• Suggest OC, PC and CIPC evaluate existing subcommittees and provide a report to RSC in March with recommendations

• Assure that the BOT be aware of dissenting votes, and minority positions, on RSC endorsed initiatives

• Extend the proposed March 2020 implementation date to ensure details in the implementation plan and charter are addressed in a methodical and transparent manner, while enabling effective change management.

MRC Policy Input and Industry Comments – General Themes


Participation Model - Revised

• Proposed Sector-based and At-Large representation

• Additional Non-Voting Members

Name Voting Members

Sectors 1-8, 10, and 12 22

At Large 10

Chair and Vice Chair 2

Total 34

Non-Voting Member Number of Members

NERC Secretary 1

U.S. Federal Government 2

Canadian Federal Government 1

Provincial Government 1

Total 5


Participation Model and population of initial membership

• At Board’s request, SET will recommend initial chair and vice chair for appointment by Board (November meeting) for 2 year terms

• Change Participation Model to 2 elected members per sector. Any unfilled seats will become At Large

• NERC will then hold sector election, if needed, followed by At Large nominating process; Initial terms will be 2 or 3 years, then all terms will be 2 years.

• Selection of At Large members will be made by a Nominating Committee.

• Board to approve slate of RSC members.


Participation Model and population of initial membership

• Initial terms for Sector and At Large members will be nearly half of the members for 2 year terms and half for a 3 year term.

• After initial terms, 2 year staggered terms with nearly half of sector and At Large terms expiring annually.

• Nominating Committee will transition to follow the CCC model.• The Executive Committee will be elected by RSC membership at

the first or second meeting.• Canadian Participation based on Net Energy to Load as with the

OC/PC.


Implementation Plan Highlights

• September 30, 2019 – SET meeting; recommend slate for Chair and Vice Chair and finalize RSC Charter.

• October 18, 2019 – Industry Webinar (11:00 am – 12:00 pm)• November 5, 2019 – Board approves Charter and Implementation

Plan; appoints Chair and Vice Chair.• November 6, 2019 – Open Sector nomination process for approx.

3 weeks• November 26, 2019 – Sector nominations end• Early December - SET analyzes sector reps for gaps to be filled by

At Large members; conducts any necessary elections. Seek At Large Nominations through end of December.



• Early January, 2020 – Nominating Committee (defined in the proposal document) to develop slate of At Large nominees

• February, 2020 BOT – Board appoints committee members (sector and At Large). Terms will expire in June of alternating years.

• February – May, 2020 – RSC develops transition plan and work plans for RSC and Subcommittees. Coordinate with Committee and subcommittee leadership to ensure work plans are in place and on schedule.



• March, 2020 – Hold OC, PC and CIPC meetings as scheduled. RSC to meet Wednesday afternoon for inaugural meeting to establish

Nominating Committee, Executive Committee, and administrative items RSC will be operational to ensure smooth transition. OC, PC and CIPC will

terminate on June 1, 2020.

• June, 2020 - RSC initial regular meeting with subcommittee reports and other agenda items.

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