2012 WECC Annual Review - Western Electricity Coordinating Council
2012 WECC Annual Review - Western Electricity Coordinating Council 2012 WECC Annual Review - Western Electricity Coordinating Council
2012 Annual Review 2012 Annual Review
- Page 2 and 3: WECC Profile FOUNDED: 1967 INCORPOR
- Page 4 and 5: Message from WECC Chair Marsha Smit
- Page 6 and 7: Message from WECC CEO Mark Maher Ri
- Page 8 and 9: 2012 Key Achievements WECC’s staf
- Page 10 and 11: NERC and WECC Standards to determin
- Page 12 and 13: “The mission of the Western Elect
- Page 14 and 15: The TEP process incorporates foreca
- Page 16 and 17: training Web page to improve access
- Page 18 and 19: Standing Committee Accomplishments
- Page 20 and 21: the United States. Historically, en
- Page 22 and 23: U.S. DOE Grants Western Interconnec
- Page 24 and 25: Integrity Teamwork Excellence Inclu
- Page 26 and 27: About the Western Electricity Coord
- Page 28 and 29: elects one. Seven directors with no
- Page 30: 2012 Annual Review 155 North 400 We
<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong>
<strong>WECC</strong> Profile<br />
FOUNDED: 1967<br />
INCORPORATED: 2002<br />
BUSINESS:<br />
501(c)(6) not-for-profit organization<br />
EMPLOYEES: 211<br />
<strong>WECC</strong> MEMBERS: 363<br />
<strong>WECC</strong> REGISTERED FUNCTIONS: Reliability Coordinator and Interchange Authority<br />
<strong>2012</strong> BUDGET:<br />
Total: $69,509,307<br />
Statutory: $67,969,167<br />
Non-statutory (WREGIS): $1,540,140<br />
STATUTORY FUNDING:<br />
Assessments: $36,977,492<br />
Penalty Sanctions: $2,256,023<br />
Federal Grants: $27,431,301<br />
Workshop Fees: $1,003,475<br />
Interest: $291,171<br />
Miscellaneous: $9,706<br />
NON-STATUTORY FUNDING (WREGIS):<br />
Transaction Fees: $1,800,000<br />
<strong>WECC</strong> EXECUTIVE STEERING TEAM:<br />
Mark Maher, Chief Executive Officer<br />
Melanie Frye, Vice President, Operations and Planning<br />
David Godfrey, Vice President, Shared Services and Strategic Planning<br />
Steven Goodwill, Vice President, General Counsel<br />
John McGhee, Vice President, Reliability Coordination<br />
Rachel Sherrard, Vice President, Communications and External Affairs<br />
Constance White, Vice President, Compliance<br />
U.S. REGISTRATION:<br />
Registered Entities: 464<br />
Registered Entities’ Registered Functions: 1,228<br />
Registered Balancing Authorities: 33<br />
BRITISH COLUMBIA (BCUC) REGISTRATION:<br />
Registered Entities: 36<br />
Registered Entities’ Registered Functions: 102<br />
Registered Balancing Authorities: 1<br />
BALANCING AUTHORITIES: 38<br />
All data in this document, unless otherwise stated, is current as of December 31, <strong>2012</strong>.<br />
Workshops: $10,000<br />
Interest: $8,829<br />
Miscellaneous: $294<br />
Cover / Transmission towers at the John Day Dam, Columbia River, Oregon<br />
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itish columbia<br />
alberta<br />
<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
Noted in Blue / Map of the <strong>Western</strong> Interconnection<br />
washington<br />
montana<br />
north dakota<br />
oregon<br />
minnesota<br />
idaho<br />
south dakota<br />
wisconsin<br />
wyoming<br />
michigan<br />
nevada<br />
utah<br />
nebraska<br />
iowa<br />
illinois<br />
indiana<br />
colorado<br />
california<br />
kansas<br />
missouri<br />
kentuck<br />
tennessee<br />
arizona<br />
new mexico<br />
oklahoma<br />
arkansas<br />
baja california, mx<br />
texas<br />
mississippi<br />
alabama<br />
louisiana
Message from <strong>WECC</strong> Chair Marsha Smith<br />
To fulfill its mission – to promote and foster a reliable and efficient Bulk Electric System – the <strong>Western</strong> <strong>Electricity</strong><br />
<strong>Coordinating</strong> <strong>Council</strong> (<strong>WECC</strong>) has to be able to undertake all of the activities described in its Delegation<br />
Agreement with the North American Electric Reliability Corporation (NERC) and completely and effectively<br />
fulfill its role as the <strong>Western</strong> Interconnection’s Reliability Assurer, as defined in the NERC Functional Model.<br />
In September <strong>2012</strong>, the <strong>WECC</strong> Board of Directors (Board) convened a strategic planning session to consider<br />
potential changes to address the most challenging issue we face as an organization: how to configure and<br />
organize <strong>WECC</strong> so that it can continue to achieve both its mission and its NERC responsibilities.<br />
Ultimately, the Board and the <strong>WECC</strong> members will decide these matters. No one yet knows the exact nature of the alternatives that<br />
will be presented to the <strong>WECC</strong> membership in June 2013. It is likely that <strong>WECC</strong> could be restructured into multiple entities with<br />
its Registered Entity functions in one organization and its registered functions, such as Reliability Coordination, in the other.<br />
Various <strong>WECC</strong> committees, especially the Governance and Nominating Committee, are working hard to consider the optimal<br />
organizational and governance structures for <strong>WECC</strong> in the future. We are making every effort to ensure that this is an<br />
open and transparent process, that members’ concerns are considered and addressed as thoroughly as possible, and that all<br />
alternatives are fully considered. Time is of the essence and this effort is critical to the mission of <strong>WECC</strong>, and the interests<br />
of its members. Our ultimate purpose in this initiative is to meet the needs of members with respect to reliability issues. I<br />
hope that the path forward will soon be clear and the process of implementation will go as smoothly as possible.<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
Our goal as an organization is to not only maintain, but to enhance, the high level of reliability in the <strong>Western</strong> Interconnection, both in<br />
the present and in the future. It is a worthy and ambitious goal, one that will not be successfully achieved without support and input from<br />
the <strong>WECC</strong> membership. I urge you to actively engage in the discussions leading up to the June 2013 decision-point. Your participation<br />
is critical to the success of this effort. In the meantime, <strong>WECC</strong> will continue to focus on its core responsibilities with regard to reliability<br />
and as the Region’s source of unbiased analysis and information on issues critical to the reliability of the <strong>Western</strong> Interconnection.<br />
Marsha Smith, Chair, <strong>WECC</strong> Board of Directors
Message from <strong>WECC</strong> CEO Mark Maher<br />
Rising workloads fueled by a diverse range of existing activities, a major Federal Energy Regulatory Commission (FERC)<br />
audit that comprised five rounds of data requests and two multi-day site visits, and two game-changing events made <strong>2012</strong><br />
perhaps the most interesting year in <strong>WECC</strong>’s history.<br />
Through it all, <strong>WECC</strong>’s staff worked diligently to: meet hard deadlines through technically-sound actions; deliver the<br />
analyses required to maintain the reliability of the <strong>Western</strong> Interconnection; keep <strong>WECC</strong> stakeholders informed; and stay on top of an everincreasing<br />
Compliance Monitoring and Enforcement workflow.<br />
In addition to its normal workload, in <strong>2012</strong> <strong>WECC</strong> staff responded to two extremely resource-intensive ad hoc initiatives: the report<br />
published by NERC/FERC “Arizona-Southern California Outages on September 8, 2011: Causes and Recommendations” (Joint Report), and<br />
the <strong>WECC</strong> Strategic Planning Initiative.<br />
The Joint Report identified 27 findings and recommendations with potential impacts to key <strong>WECC</strong> functions: situational awareness; next-day,<br />
seasonal, and near- and long-term planning; impact of sub-100-kV facilities; and Interconnection Reliability Operating Limits. On September<br />
28, <strong>2012</strong>, <strong>WECC</strong> submitted its Response Report that considered all of the comments received from NERC as a result of <strong>WECC</strong>’s Preliminary<br />
Response Report (filed on August 31). The September 28 filing included additional activities submitted by <strong>WECC</strong> members and affected entities.<br />
There are 51 <strong>WECC</strong> activities currently underway in response to these findings and recommendations, all with defined timelines that reflect a<br />
sense of urgency. While <strong>WECC</strong> recognizes the need to resolve these issues expeditiously, it must ensure that thoughtful and technically-sound<br />
responses are not compromised in the interest of time. Consequently, the timeframe for completion of the activities ranges from 2011 through 2015.<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
<strong>WECC</strong>’s Strategic Planning Initiative has even more profound implications for the future of the organization. In September, the <strong>WECC</strong> Board<br />
passed four resolutions related to the future structure, governance, and funding of <strong>WECC</strong>. At its December meeting, the <strong>WECC</strong> Board coalesced<br />
around a proposal that creates a new organization housing the Reliability Coordinator (RC) and Interchange Authority registered functions. This<br />
new entity would be governed by an independent Board with input from a strong Member Advisory Committee. The Governance and Nominating<br />
Committee will develop a proposal for governance of the functions that remain in <strong>WECC</strong> for consideration at the March 2013 Board meeting.<br />
Without optimal governance, structural, and financial models, <strong>WECC</strong> will struggle to achieve its mission<br />
and delegated responsibilities. <strong>WECC</strong>’s goal is to develop an organizational model that will unite <strong>WECC</strong><br />
members and stakeholders in working toward a common goal: a <strong>WECC</strong> that efficiently ensures a<br />
reliable Bulk Electric System in the <strong>Western</strong> Interconnection, now and into the foreseeable future.<br />
One constant in this year of change has been the thoughtful input and contributions of the<br />
<strong>WECC</strong> membership. Without the members’ support, it would not be possible to effectively<br />
address the major challenges we face as an organization. When all is said and done, the bottom<br />
line is enhanced reliability for the end-user customers to which our members are responsible.<br />
Mark Maher, Chief Executive Officer
<strong>2012</strong> Key Achievements<br />
<strong>WECC</strong>’s staff and committees achieved significant milestones in <strong>2012</strong>. The following sections<br />
provide an overview of those key achievements, together with a progress report on <strong>WECC</strong>’s U.S.<br />
Department of Energy (DOE) grant initiatives: the <strong>Western</strong> Interconnection Synchrophasor<br />
Program (WISP), and the Regional Transmission Expansion Planning (RTEP) project.<br />
Standards Development<br />
<strong>WECC</strong>’s mandatory Reliability Standards Development<br />
Program has two distinct functions: 1) the development of<br />
Regional Reliability Standards and Regional Criteria for<br />
the <strong>Western</strong> Interconnection; and 2) participation in the<br />
NERC Reliability Standards Development Procedure.<br />
In March <strong>2012</strong>, FERC approved the revised <strong>WECC</strong> Standards<br />
Process and the associated Bylaws revisions that were<br />
necessitated by that revised process. This major revision<br />
of the <strong>WECC</strong> Standards Process included the seating of a<br />
<strong>WECC</strong> Standards Committee, as well as the development and<br />
implementation of an online standards voting process.<br />
Using these new procedures, in <strong>2012</strong> <strong>WECC</strong> stakeholders<br />
approved the revised Contingency Reserve Standard, BAL-<br />
002-<strong>WECC</strong>-1, which was subsequently approved by the <strong>WECC</strong><br />
Board and adopted by the NERC Board of Trustees. The <strong>WECC</strong><br />
stakeholders and the <strong>WECC</strong> Board also approved revisions to<br />
BAL-004-<strong>WECC</strong>-2 and an associated regional variance to a NERC<br />
Standard, which were presented to the NERC Board of Trustees<br />
at its December meeting. <strong>WECC</strong> stakeholders also approved<br />
three additional regional criteria and the new Underfrequency<br />
Load Shedding Plan. Four additional regional criteria and one<br />
regional standard were scheduled for online voting in December.<br />
Throughout <strong>2012</strong>, <strong>WECC</strong>’s Standards Development staff<br />
devoted significant time and effort to a review of all the<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
John Day Dam,<br />
Columbia River, Washington
NERC and <strong>WECC</strong> Standards to determine which standards,<br />
if any, are related to the 27 specific recommendations<br />
included in the NERC/FERC Joint Report.<br />
Stakeholder outreach was also a consistent focus for<br />
<strong>WECC</strong>’s Standards Development staff throughout <strong>2012</strong>.<br />
<strong>WECC</strong> produced more than 20 position papers to help guide<br />
voter response to proposed standards and implemented an<br />
automated standards announcement procedure to targeted<br />
distribution lists. These activities have been effective in<br />
increasing stakeholder engagement in the process.<br />
Goals for 2013 include increasing the user-friendliness of<br />
the Standards web page, as well as activities to encourage<br />
continued, active, and constructive stakeholder involvement<br />
in the <strong>WECC</strong> Standards Process. This participation<br />
is critical to ensuring that stakeholder concerns are<br />
effectively addressed in the <strong>WECC</strong> Standards Process.<br />
Compliance Monitoring and Enforcement<br />
<strong>WECC</strong> is responsible for monitoring, assessing, and enforcing<br />
FERC mandatory Reliability Standards throughout the <strong>Western</strong><br />
Interconnection. <strong>WECC</strong> monitors compliance through a wide<br />
range of methods, such as self-reporting and audits, reports<br />
violations to NERC, works with entities to mitigate violations,<br />
and processes violations through to final disposition.<br />
In <strong>2012</strong>, <strong>WECC</strong> Compliance staff conducted nearly 150<br />
audits, a 48 percent increase from 2011, without significantly<br />
adding to Compliance Monitoring and Enforcement<br />
(CM&E) staffing levels. The number of audits is increasing<br />
annually as <strong>WECC</strong> adds new Registered Entities and new<br />
functions. Post-audit feedback from the entities indicated<br />
a 95 percent satisfaction rate with the audit process.<br />
CM&E is also responsible for compliance enforcement, which<br />
includes working with <strong>WECC</strong> entities to mitigate any violations<br />
or reliability impacts, and to dispose of violations. Violations are<br />
disposed of either through a litigated process or a mutually-agreedupon<br />
settlement, including appropriate penalties and sanctions.<br />
In <strong>2012</strong>, all of <strong>WECC</strong>’s enforcement actions were disposed of<br />
through negotiated settlement; an indication of <strong>WECC</strong>’s positive<br />
relationship with its member entities. NERC and FERC approved<br />
all dispositions filed for approval by <strong>WECC</strong> during <strong>2012</strong>.<br />
The number of violations disposed of by <strong>WECC</strong> staff in<br />
<strong>2012</strong> was a 70 percent increase from 2011 levels – this was<br />
achieved without a significant increase in staff. Despite having<br />
the largest case load of any NERC Regional Entity, in <strong>2012</strong><br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
<strong>WECC</strong> demonstrated the fastest violation processing time,<br />
according to NERC’s quarterly Case Load Violation Index.<br />
During the coming year, CM&E will focus on its normal<br />
Compliance workload, including expected increases in both<br />
the number of audits performed and the number of violations<br />
processed. Member outreach and compliance education will also<br />
be an ongoing priority as <strong>WECC</strong> works to keep its membership<br />
up to date in the ever-changing Compliance landscape.<br />
Planning Services<br />
In <strong>2012</strong>, <strong>WECC</strong>’s Planning Services staff issued the firstannual<br />
<strong>WECC</strong> State of the Interconnection Report. The<br />
report, which will serve as a baseline for all future State of the<br />
Interconnection Reports, represents considerable effort on<br />
the part of <strong>WECC</strong> staff. It evaluates risks to system reliability<br />
within the <strong>Western</strong> Interconnection by analyzing available<br />
data from system events, real-time performance measures,<br />
compliance violations, and planning observations.<br />
Planning Services also supported the efforts of the Planning<br />
Coordination Committee (PCC) in <strong>2012</strong>, a responsibility that<br />
includes the development of <strong>WECC</strong>’s power flow stability base<br />
case models, the creation of the Study Program <strong>Annual</strong> Report,<br />
and the development of the <strong>WECC</strong> transmission maps.<br />
In 2013, Planning Services will support the implementation<br />
of the Base Case Coordination System (BCCS), investigating<br />
options to better coordinate Transmission Planning<br />
Assessments, as well as continuing to support the PCC. The<br />
implementation of the BCCS is an effort that will require<br />
significant training and outreach to <strong>WECC</strong> stakeholders.<br />
Transmission Expansion Planning<br />
In <strong>2012</strong>, the majority of Transmission Expansion Planning’s<br />
(TEP) efforts were focused on completing the analytical work<br />
that will serve as the basis for the 10- and 20-Year Transmission<br />
Expansion Plans, which are scheduled for publication in 2013.<br />
Specifically, in <strong>2012</strong> TEP created long-term planning scenarios,<br />
Geographic Information System (GIS)-based environmental risk<br />
factors, and a historical modeling study. TEP also identified cycling<br />
costs, completed a long-term capital cost expansion planning tool,<br />
and made numerous improvements to existing models and data.<br />
TEP’s objective continues to be to gain a better understanding<br />
of long-term Interconnection-wide transmission needs, costs,<br />
and reliability issues over a range of potential energy futures.
“The mission of the <strong>Western</strong><br />
<strong>Electricity</strong> <strong>Coordinating</strong> <strong>Council</strong><br />
(<strong>WECC</strong>) is to promote and<br />
foster a reliable and efficient<br />
Bulk Electric System.”<br />
Mission<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
“<strong>WECC</strong> will lead the stakeholders<br />
in the <strong>Western</strong> Interconnection to<br />
achieve optimal system reliability,<br />
be the premier source of unbiased<br />
information, and serve as the<br />
trusted thought leader for the<br />
<strong>Western</strong> Interconnection.”<br />
Vision
The TEP process incorporates forecast electrical loads,<br />
multiple generation resource options, active and proposed<br />
energy policies, and cost and reliability issues, in addition to<br />
potential environmental, hydrological, and cultural impacts.<br />
Reliability Assessment and<br />
Performance Analysis<br />
<strong>WECC</strong>’s Reliability Assessment Department is responsible for<br />
producing both short- and long-term reliability assessments<br />
for the <strong>Western</strong> Interconnection, as well as post-performance<br />
assessments for both the summer and winter periods.<br />
These reports include <strong>WECC</strong>’s Power Supply Assessment,<br />
an annual report that evaluates potential reserve margins<br />
over a range of assumptions for the next 10 years.<br />
Each year, <strong>WECC</strong>’s Reliability Assessment analysts produce<br />
multiple short- and long-term assessments for NERC, such as<br />
the Long-Term Reliability Assessment, and summer and winter<br />
assessments, which evaluate the <strong>Western</strong> Interconnection’s<br />
calculated reserve margins for the June–September and December–<br />
February periods. In addition, this group produces annual<br />
post-summer and post-winter system reliability assessments,<br />
reviewing actual system performance during those periods.<br />
In <strong>2012</strong>, <strong>WECC</strong>’s Reliability Assessment Department performed<br />
all required analyses, as scheduled, finding that the <strong>Western</strong><br />
Interconnection’s reliability is stable in the short-term and, in most<br />
areas, for the long-term. In 2013, <strong>WECC</strong>’s Reliability Assessment<br />
Department will participate in NERC’s Probabilistic Assessment to<br />
evaluate system performance during all hours of the year against<br />
a range of variables, such as increased demand and more frequent<br />
unplanned generation outages. Results from the Probabilistic<br />
Assessment will be published in the second quarter of 2013.<br />
Training, Education, and Operator<br />
Certification Program<br />
<strong>WECC</strong> is one of the <strong>Western</strong> Interconnection’s foremost<br />
providers of NERC-approved continuing education training in<br />
NERC Standards, Regional Reliability Standards, and Regional<br />
Criteria for system operators, schedulers, and non-operational<br />
personnel. <strong>WECC</strong>’s training activities also include emergency<br />
operations simulator training and workshops on electrical theory.<br />
In <strong>2012</strong>, <strong>WECC</strong> conducted 23 system operator classes and<br />
three system overview workshops, which were attended by<br />
more than 525 stakeholder representatives. The Training,<br />
Education, and Operator Certification Program upgraded its<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
<strong>WECC</strong> training,<br />
Vancouver, Washington
training Web page to improve access to training information<br />
for <strong>WECC</strong> regional trainers. <strong>WECC</strong>’s <strong>2012</strong> “Train the Trainers”<br />
workshop began system operator training on NERC Standard<br />
PER-005 prior to the standard becoming effective in April 2013.<br />
The new NERC Standard focuses on the human performance<br />
aspect of system operator training and competency.<br />
<strong>WECC</strong>’s training manager has been working with the <strong>WECC</strong><br />
Reliability Coordination (RC) function to develop training materials<br />
for use with the West-wide System Model Dispatch Training<br />
Simulator. The generic simulator that <strong>WECC</strong> has used is being<br />
replaced with a reality-based simulator that will allow students to train<br />
on their utility’s actual system, providing a more relevant real-life,<br />
real-time training environment. This training will be provided in 2013.<br />
In 2013, <strong>WECC</strong> will provide regional classes in the Northwest,<br />
Northern and Southern California, and the Desert<br />
Southwest subregions.<br />
Situational Awareness and<br />
Reliability Coordination<br />
The <strong>WECC</strong> RCO in Loveland, Colorado and Vancouver,<br />
Washington provide situational awareness and real-time<br />
supervision of the entire <strong>Western</strong> Interconnection. When the<br />
<strong>Western</strong> Interconnection Synchrophasor Program (WISP)<br />
goes on-line in March 2013, <strong>WECC</strong>’s Situational Awareness<br />
and RC functions will take a major step forward.<br />
The hundreds of phasor measurement units and phasor data<br />
concentrators deployed under WISP are already feeding data to the<br />
weccrc.org website via WISP’s secure data portal. In <strong>2012</strong>, <strong>WECC</strong>’s<br />
selected vendor, Harris Corporation, developed the secure Wide Area<br />
Network through which the RCOs will receive an unprecedented<br />
level of real-time data, providing increased situational awareness<br />
of <strong>Western</strong> Interconnection operations. Once all participants have<br />
signed the WISP Universal Data Sharing Agreement (UDSA), <strong>WECC</strong><br />
will begin sharing reliability and synchrophasor operating data via<br />
a Wide Area View display. At the end of <strong>2012</strong>, UDSA participation<br />
was just two signatories short of 100 percent participation. A total<br />
of 95 Transmission Owners, Transmission Operators, and Balancing<br />
Authorities have executed either the UDSA or a waiver (under which<br />
signatories share their data but do not receive data of other signatories).<br />
Throughout <strong>2012</strong>, <strong>WECC</strong>’s Situational Awareness and Reliability<br />
Coordination staff devoted significant time and resources<br />
toward addressing the recommendations and mitigation<br />
actions mandated by the NERC/FERC Joint Report.<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
In 2013, key Situational Awareness and Reliability Coordination<br />
goals include “checking the boxes” on the DOE’s 63 deliverables<br />
for the WISP grant, finalizing execution of the WISP UDSA, and<br />
expanding the restoration training program for <strong>WECC</strong> Balancing<br />
Authorities, Transmission Operators, and Generator Operators.<br />
The RC will continue to focus on <strong>WECC</strong>’s revised System<br />
Operating Limit Methodology project to identify and mitigate<br />
real-time Interconnection Reliability Operating Limits, a major<br />
project requiring collaboration with more than 130 <strong>WECC</strong> entities.<br />
<strong>Western</strong> Renewable Energy Generation<br />
Information System (WREGIS)<br />
The <strong>Western</strong> Renewable Energy Generation Information System<br />
(WREGIS) is the <strong>Western</strong> Interconnection’s independent<br />
renewable energy tracking system, charged with verifying that<br />
participating generators are meeting applicable renewables<br />
standards. WREGIS renewable energy certificates are used<br />
to verify compliance with state and provincial regulatory<br />
requirements, such as Renewable Portfolio Standards.<br />
In March <strong>2012</strong>, WREGIS transitioned to become a functional<br />
area within <strong>WECC</strong>, overseen by a seven-member committee<br />
consisting of representatives from various stakeholder groups.<br />
The new WREGIS home page, which can be accessed through the<br />
wecc.biz site, includes information about the WREGIS software,<br />
training materials, rules and procedures, and how to register<br />
processes for all types of account holders, as well as aggregated<br />
data on account holders, generating units, and certificates.<br />
In its capacity as the <strong>Western</strong> Interconnection’s independent<br />
renewable energy tracking system, in <strong>2012</strong> WREGIS began<br />
conducting full-scale audits of its account holders to provide<br />
another layer of assurance that the WREGIS data is accurate, and<br />
to educate account holders on data collection best practices.<br />
WREGIS continued to experience strong growth across its<br />
program areas in <strong>2012</strong>. From October 1, 2011 to September<br />
30, <strong>2012</strong>, the number of WREGIS-Qualified Reporting<br />
Entities increased from 60 to 63, while the number of account<br />
holders increased by 25 percent, from 377 to 456. During the<br />
same period, the number of WREGIS-Approved Generating<br />
Units (wind, hydro, solar, biogas/biomass, geothermal)<br />
increased from 1,786 to 2,380, while total generating capacity<br />
represented increased from 38,475 MW to 44,094 MW.
Standing Committee Accomplishments<br />
Market Interface Committee (MIC)<br />
The Market Interface Committee advises the <strong>WECC</strong> Board<br />
on the development of market interface and compatible<br />
commercial practices within the <strong>Western</strong> Interconnection,<br />
as well as ways to integrate those practices with <strong>WECC</strong>’s<br />
reliability mission. The MIC works to assure the compatibility<br />
of business practices in the <strong>Western</strong> Interconnection<br />
with relevant standards, practices, and procedures.<br />
In <strong>2012</strong>, one of the MIC’s primary areas of focus was FERC Order<br />
764, which facilitates the integration of variable energy resources<br />
through the implementation of 15-minute scheduling. This is<br />
a far-reaching change, with implications that cross multiple<br />
market and organizational boundaries. Another issue to which<br />
the MIC devoted significant energy in <strong>2012</strong> was the natural gas<br />
and electric coordination interface. The MIC is looking at future<br />
ways to integrate gas and electric scheduling more efficiently to<br />
improve reliability. In November <strong>2012</strong>, the MIC also assisted in the<br />
successful transition from the Transmission System Information<br />
Network, the NERC transmission registry that allowed e-Tags<br />
to be traded electronically, to the North American Energy<br />
Standards Board’s Energy Industry Registry. The new system<br />
appears to be operating well with no major problems reported.<br />
In 2013, the MIC will continue to work with FERC and other<br />
Regional Entities to develop the natural gas and electric<br />
coordination interface. <strong>WECC</strong> recently held its first Gas<br />
and Electric Coordination Committee meeting to improve<br />
communication between the two industries and enhance<br />
reliability. <strong>WECC</strong>’s role in that effort is continuing to evolve.<br />
Stakeholders on both sides of the issue see <strong>WECC</strong> as being the<br />
appropriate organization to facilitate this coordination as there<br />
is no organizational equivalent to <strong>WECC</strong> on the natural gas side.<br />
At least initially, <strong>WECC</strong> will function as a clearinghouse for<br />
information and act as a liaison between the two industries.<br />
In addition, FERC Order 764 will go into effect in October 2013 and<br />
will have a far-reaching impact on scheduling practices throughout<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
Solar Panel for TriMet by<br />
REC Solar,<br />
Portland, Oregon
the United States. Historically, energy has been scheduled in<br />
60-minute increments; however, Order 764 will enable 15-minute<br />
intra-hour scheduling — a significant implementation challenge<br />
for many <strong>WECC</strong> stakeholders. <strong>WECC</strong> has convened an Order<br />
764 Task Force to develop practices to ease this transition.<br />
Operating Committee (OC)<br />
One of the primary goals of the Operating Committee is to promote<br />
the reliability of the Bulk Electric System. The goal is directly<br />
supported through evaluation of Bulk Electric System events, during<br />
which <strong>WECC</strong> undertakes appropriate levels of analysis to determine<br />
the causes of the events, promptly implements corrective actions,<br />
and provides recommendations and lessons learned to the industry.<br />
In <strong>2012</strong>, the OC was focused on developing guidelines and<br />
providing information to help <strong>WECC</strong> stakeholders address<br />
specific recommendations from the FERC/NERC Joint Report.<br />
The OC had direct or shared involvement with 16 of the 27<br />
recommendations contained in the Joint Report. Many of the OC<br />
subcommittees had specific assignments arising from the Joint<br />
Report, such as the development of guidelines for real-time data<br />
sharing between Balancing Authorities (BA) and Transmission<br />
Providers, real-time tools, next-day studies, and relay loadability.<br />
The Remedial Action Scheme (RAS) Reliability Subcommittee<br />
is collecting and compiling RAS data and will be working with<br />
other groups within <strong>WECC</strong> to prioritize the schemes, and to<br />
determine which of those schemes should be incorporated into<br />
the planning and operating cases for power system modeling.<br />
In 2013, the OC will continue to participate in NERC’s Reliability-<br />
Based Control Proof-of-Concept Field Trial, an ongoing activity<br />
with 26 voluntary BA participants. <strong>WECC</strong> has requested that the<br />
field trial be extended for an additional year to continue testing and<br />
evaluation of the system impacts of the proposed NERC Standard.<br />
The OC has completed its revision of the <strong>WECC</strong> Event Reporting Procedure<br />
to align with the NERC Event Analysis Process. <strong>WECC</strong> also eliminated its<br />
Balancing Authority Certification Policy in an effort to streamline<br />
and simplify the BA certification process and bring it in line with the<br />
NERC Rules and Procedures Section 500 Certification procedure.<br />
Planning Coordination Committee (PCC)<br />
The <strong>WECC</strong> membership relies on the Planning Coordination Committee<br />
to provide tools and resources for planning studies, including transmission<br />
maps, power flow and stability base cases, and the Path Rating Catalog.<br />
In <strong>2012</strong>, the PCC formed the Base Case Coordination System (BCCS)<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
Assurance Team, which has worked with Siemens PTI in developing and<br />
testing the deliverables of the BCCS, scheduled to be operational in 2013.<br />
In addition, the PCC completed its update of the Project Coordination and<br />
Path Rating Processes in <strong>2012</strong>. The purpose of this effort was to review,<br />
clarify, and streamline the procedures for developing path ratings.<br />
Looking ahead to 2013, the PCC will focus the majority of its effort on<br />
addressing several recommendations from the NERC/FERC Joint Report.<br />
Specifically, the PCC will undertake further activities related to the following:<br />
»»<br />
Remedial Action Schemes<br />
»»<br />
Relay modeling in base cases<br />
»»<br />
Addressing discrepancies between the West-wide<br />
System Model and the planning base case models<br />
»»<br />
Developing requirements for modeling sub-<br />
100-kV elements in base cases<br />
»»<br />
Developing a whitepaper and holding an educational<br />
meeting for interested parties, including NERC and<br />
FERC, on the <strong>WECC</strong> Path Rating Process.<br />
The PCC will be closely involved in the stakeholder outreach and<br />
training that will be integral to the implementation of the BCCS.<br />
16th Street, Astoria, Oregon
U.S. DOE Grants<br />
<strong>Western</strong> Interconnection<br />
Synchrophasor Program (WISP)<br />
Over the past three years, <strong>WECC</strong> and eight other cost<br />
share participants committed $53.9 million in funding to<br />
the <strong>Western</strong> Interconnection Synchrophasor Program,<br />
enabling the program to receive federal matching funds in<br />
the same amount. When the original scope of the project is<br />
completed in March 2013, WISP will exponentially improve<br />
situational awareness and enhance the Region’s ability to<br />
identify and analyze system vulnerabilities in real time.<br />
A total of 10 additional parties accepted <strong>WECC</strong>’s<br />
invitation to participate in WISP and are investing in<br />
synchrophasor infrastructure on their own systems. This<br />
investment will extend the visibility of the entire <strong>Western</strong><br />
Interconnection. Construction and installation of the WISP<br />
infrastructure and applications occupied most of <strong>2012</strong>.<br />
Working with a vendor to develop and deploy WISP’s Wide<br />
Area Network (WAN), all participants are now connected and<br />
synchrophasor data from WISP’s phasor measurement units (PMU)<br />
is being transmitted to the <strong>WECC</strong> RCOs. The dedicated, secure<br />
WAN is exceeding performance requirements. When complete,<br />
the infrastructure will include more than 450 PMUs connected<br />
through 59 phasor data collectors and the WAN to the RCOs.<br />
By late <strong>2012</strong>, site acceptance testing of the vendorsupplied<br />
applications was underway, including situational<br />
awareness, oscillation modal analysis, and voltage stability<br />
assessment applications for both real-time operators as well<br />
as operational and planning engineers. A state-of-the-art<br />
reliability portal, weccrc.org, is now online to provide access<br />
to reliability data archives (including next-day studies) and<br />
will soon provide a registry of Wide Area View users and<br />
synchrophasor data archives for <strong>Western</strong> reliability entities.<br />
In September <strong>2012</strong>, the U.S. Department of Energy (DOE) granted<br />
an extension of the WISP program to allow <strong>WECC</strong> to use $4.25<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
<strong>WECC</strong> Reliability<br />
Coordination Office,<br />
Vancouver, Washington
Integrity<br />
Teamwork<br />
Excellence<br />
Inclusiveness<br />
Professionalism<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
million in available stimulus funds to complete an expansion of the<br />
RCO control rooms in Loveland and Vancouver. This expansion<br />
will further increase <strong>WECC</strong>’s situational awareness capabilities.<br />
The project’s original scope will be completed by March 31, 2013,<br />
and the additional work will be completed by December 31, 2013.<br />
WISP data was used to improve and validate the model for one<br />
large generating unit, Columbia Generating Station, without the<br />
need to take the unit off-line, saving the owner up to $700,000<br />
in avoided outage costs. In 2013, WISP data will be used to<br />
calibrate and validate the models of other generators in the<br />
Region. Because these models are used to set operating limits<br />
on the network, fine-tuning them through synchrophasor<br />
technology produces more accurate limits, optimizing the<br />
grid’s capability while still meeting reliability criteria.<br />
The completion of the WISP infrastructure will be followed by a<br />
two-year evaluation period. Upcoming work in the WISP program<br />
will focus on completion of the infrastructure and applications,<br />
demonstrating a phasor ‘gateway’ concept intended to make<br />
efficient use of the WAN as data traffic increases, upgrading the<br />
RCO control rooms, and training in the use of WISP applications.<br />
Regional Transmission Expansion Planning (RTEP)<br />
The Regional Transmission Expansion Planning (RTEP) project is<br />
funded by a grant from the DOE through the American Recovery<br />
and Reinvestment Act of 2009. This grant is funding a number of<br />
activities that are integrated into <strong>WECC</strong>’s Transmission Expansion<br />
Planning. <strong>WECC</strong>’s Transmission Expansion Planning Policy<br />
Committee (TEPPC) — with participation from a broad array of<br />
regional stakeholders including states, provinces, utilities, nongovernmental<br />
organizations, energy developers, environmental<br />
groups, and consumer advocates — governs the RTEP project.<br />
Opposite Page / <strong>WECC</strong>’s Core Values from the “Three-to-Five Year Strategic Plan”
About the <strong>Western</strong> <strong>Electricity</strong> <strong>Coordinating</strong> <strong>Council</strong> (<strong>WECC</strong>)<br />
<strong>WECC</strong> is the Regional Entity responsible for coordinating and promoting Bulk Electric System<br />
reliability in the <strong>Western</strong> Interconnection. In addition, <strong>WECC</strong> provides an environment for<br />
coordinating the operating and planning activities of its members as set forth in the <strong>WECC</strong> Bylaws.<br />
<strong>WECC</strong> is geographically the largest and most diverse of the eight Regional Entities in North<br />
America that have Delegation Agreements NERC. <strong>WECC</strong>’s service territory extends from<br />
Canada to Mexico. It includes the provinces of Alberta and British Columbia, the northern<br />
portion of Baja California, Mexico, and all or portions of the 14 <strong>Western</strong> states between.<br />
Employees<br />
Membership and Governance<br />
<strong>WECC</strong> has 363 members divided into seven Membership Classes.<br />
As of December 31, <strong>2012</strong>, <strong>WECC</strong> employs 1 211 people<br />
across three locations: Salt Lake City, Utah; Vancouver,<br />
Washington; and Loveland, Colorado. This number is an<br />
increase from the 195 reported in December 2011.<br />
Membership in <strong>WECC</strong> is open to any person or entity that has an<br />
interest in the reliable operation of the <strong>Western</strong> Interconnection<br />
Bulk Electric System. Membership in <strong>WECC</strong> is not a requirement<br />
for participation in <strong>WECC</strong>’s Standards Development Process.<br />
<strong>WECC</strong> is governed by an independent and balanced stakeholder<br />
1 <strong>WECC</strong> is an equal opportunity employer and as such does not discriminate against employees<br />
or applicants on any basis prohibited by law. For additional information or questions regarding<br />
<strong>WECC</strong>’s policies, please contact Shonnie Job, Director of Human Resources.<br />
Board consisting of 34 directors. Members in Classes 1 through<br />
5 are eligible to elect four directors and the Mexican delegation<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
Transmission towers,<br />
The Dalles Dam,<br />
Columbia River, Oregon
elects one. Seven directors with no member affiliation (Non-<br />
Affiliated Directors) are elected by <strong>WECC</strong>’s membership.<br />
Members of Class 7 do not elect representatives to the Board<br />
of Directors, but do vote on Non-Affiliated Directors.<br />
<strong>WECC</strong> Board of Directors – <strong>2012</strong><br />
Non-Affiliated Directors:<br />
Lee Beyer<br />
Scott Cauchois<br />
T. Graham Edwards<br />
Paul Feldman<br />
Gary Leidich<br />
Shelley Longmuir<br />
John Meyer<br />
Class 1: Electric Line of Business Entities owning, controlling, or<br />
operating more than 1,000 circuit miles of transmission lines 115<br />
kV and higher voltages within the <strong>Western</strong> Interconnection.<br />
David Areghini<br />
John Cupparo, PacifiCorp<br />
Keith Casey, California Independent System Operator<br />
Mario Villar, NV Energy<br />
Class 2: Electric Line of Business Entities owning, controlling,<br />
or operating transmission or distribution lines, but not<br />
more than 1,000 circuit miles of transmission lines of 115<br />
kV or greater within the <strong>Western</strong> Interconnection.<br />
Bill Dearing, Public Utility District No. 2 of Grant County<br />
Richard Ferreira, Transmission Agency of Northern California<br />
John Powell, Platte River Power Authority<br />
James Shetler<br />
Class 3: Electric Line of Business Entities doing business<br />
in the <strong>Western</strong> Interconnection that do not own, control,<br />
or operate transmission or distribution lines in the <strong>Western</strong><br />
Interconnection, including power marketers, independent<br />
power producers, Load-Serving Entities, and any other entity<br />
whose primary business is the provision of energy services.<br />
Duncan Brown, SAIC Energy, Environment and Infrastructure<br />
John Stout, Mariner Consulting Services, Inc.<br />
Brian Theaker, NRG Power Marketing, Inc.<br />
James (JT) Thompson, Constellation Energy<br />
Control and Dispatch Group, Inc.<br />
Class 4: End users of significant amounts of electricity<br />
in the <strong>Western</strong> Interconnection, including industrial,<br />
agricultural, commercial, and retail entities; as well as<br />
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<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
organizations in the <strong>Western</strong> Interconnection that represent<br />
the interests of a substantial number of end users, or a<br />
substantial number of persons interested in the impacts<br />
of electric systems on the public or the environment.<br />
Michele Beck, Utah Office of Consumer Services<br />
Scott Gutting, Utah Association of Energy Users<br />
Nancy Kelly, <strong>Western</strong> Resource Advocates<br />
Timothy Haines, State Water Contractors<br />
Class 5: Representatives of states and provinces in the <strong>Western</strong><br />
Interconnection, provided that such representatives will have policy<br />
or regulatory roles, and do not represent state or provincial agencies and<br />
departments whose function involves significant direct participation<br />
in the market as end users or in Electric Line of Business activities.<br />
William Chamberlain, California Energy Commission<br />
Patrick Oshie, Washington Utilities and Transportation Commission<br />
Marsha Smith, Idaho Public Utilities Commission<br />
Ric Campbell, Utah Public Service Commission<br />
Class 6: Canadian members of other classes pursuant to Section 4.3.<br />
Martin Huang, British Columbia Hydro and Power Authority<br />
Ken Kunz, TransCanada Energy Ltd.<br />
Mike MacDougall, Powerex<br />
Les MacLaren, British Columbia Ministry of Energy and Mines<br />
Diana Pommen, Alberta Electric System Operator<br />
Class 7: Members at large, that is, entities that are not eligible<br />
for membership in the other Member Classes and who have a<br />
substantial interest in the purposes of the <strong>Western</strong> Interconnection.<br />
Mexico: Marcos Valenzuela, Comisión Federal de Electricidad<br />
Appointed by the Board: Mark Maher, <strong>WECC</strong> CEO
<strong>2012</strong> <strong>Annual</strong> <strong>Review</strong><br />
155 North 400 West, Suite 200 • Salt Lake City, UT 84103 • www.wecc.biz