2012 WECC Annual Review - Western Electricity Coordinating Council

2012 WECC Annual Review - Western Electricity Coordinating Council 2012 WECC Annual Review - Western Electricity Coordinating Council

<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 />

18


<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 />

20


<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 />

22


<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 />

24


<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 />

26


<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 />

28


<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

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