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Company Overview Effective Reliability Standards that are clear, consistent and technically sound, coupled with a strong standards enforcement program, form the foundation of NERC’s efforts to help maintain and improve the reliability of North America’s bulk power system. NERC provides a number of additional programs and services designed to support owners, operators and users of the bulk power system in their efforts to attain operational excellence. These include identifying issues before they have a chance to become critical, sharing best practices, supporting training and education, monitoring the international electric grid, benchmarking performance to provide the industry with an objective lens through which to view itself, and more as described below. Click on an item in the list below to jump to that section. Reliability Standards are the planning and operating rules that electric utilities follow to ensure the most reliable system possible. These standards are developed by the industry using a balanced, open, fair and inclusive process managed by the NERC Standards Committee. The Committee is facilitated by NERC staff and comprised of representatives from many electric industry sectors. Proposed standards are reviewed and approved by the NERC Board of Trustees, which then submits the standards to the U.S. Federal Energy Regulatory Commission and Canadian provincial regulators for approval. Once approved by these governmental agencies, the standards become legally binding on all owners, operators and users of the bulk power system. Standards must be just and reasonable, not unduly discriminatory or preferential, and in the public interest. Participation by industry experts and compliance personnel in the standards development process ensures that the standards are technically sound, fair and balanced. NERC’s reliability standards development process has been accredited by the American National Standards Institute (ANSI). NERC also works with the North American Energy Standards Board (NAESB), which develops business practices standards, several of which complement NERC’s Reliability Standards. The first set of enforceable standards was filed with FERC on April 4, 2006. On March 15, 2007, FERC approved 83 of the 102 proposed standards. Those 83 standards become mandatory and enforceable in the U.S. on June 18, 2007. The remaining standards are still being reviewed by FERC. For more information on the Reliability Standards program, click here. Along with the Regional Entities, NERC has the legal authority to enforce compliance with NERC Reliability Standards, which it achieves through a rigorous program of monitoring, audits and investigations, and the imposition of financial penalties and other enforcement actions for non-compliance. Potential violations of reliability standards are identified through means including:
For a list of violations of NERC Reliability Standards, see the Compliance Quarterly Report. For more information on the Standards Enforcement program, click here. Reliability & Adequacy Assessments One of NERC’s statutory roles is to conduct periodic, independent assessments of the reliability and adequacy of the bulk power system in North America. (Click here for definitions of “reliability” and “adequacy” as NERC uses them.) NERC prepares three reliability assessments each year:
To prepare the reports, NERC consolidates data and information from the eight Regional Reliability Organizations. The information is then analyzed to assess current and future electricity demand, and the adequacy of the bulk power system to meet that demand. Issues related to power generation, transmission, fuel delivery, fuel supply, and demand-side measures all are factored into the assessments. In addition, NERC identifies non-system factors that could impact reliability and adequacy, such as the ramifications of an aging workforce and environmental legislation. For more information on Reliability & Adequacy Assessments, click here. With the help of the Regional Reliability Organizations, NERC records all disturbances and abnormal events on the bulk power system. NERC investigates many of these events, identifies their causes, and publishes the findings in an effort to prevent similar events from occurring in the future, and mitigating those that can’t be prevented. A key part of NERC’s program to help improve the bulk power system is the identification and dissemination of “lessons learned” from these industry incidents. For more information on the Incident Investigation program, click here. NERC visits every reliability coordinator, balancing authority, transmission operator and other relevant organization once every three years to evaluate their ability, or “readiness”, to comply with NERC Reliability Standards. These evaluations are conducted by teams of industry volunteers and NERC staff. In conjunction with these readiness evaluations, NERC promotes operational excellence by identifying opportunities for improvement, as well as Examples of Excellence, that will help the individual company and the industry as a whole. NERC’s “Examples of Excellence” newsletter communicates exemplary work processes to the industry quarterly. For more information on the Readiness Evaluations program, click here. To assist with the 24/7 operation of a reliable electricity system, NERC monitors the bulk power system in real time. Related responsibilities include:
For more information on the Situation Awareness program, click here. NERC coordinates electric industry activities designed to protect the industry’s critical infrastructure from physical and cyber threats. Security is addressed in the daily operation of the electricity grid and in future planning of the grid. NERC operates the industry’s Electricity Sector Information Sharing and Analysis Center (ESISAC) under the U.S. Department of Homeland Security and Public Safety Canada. ESISAC gathers information about security-related threats and incidents, and communicates it to government authorities. For more information on the Infrastructure Security program, click here. NERC has begun an extensive “benchmarking” effort to measure the overall effectiveness of NERC and the electrical power industry in improving the reliability of the bulk power system, based on key metrics. To date, metrics have been defined in four areas: standards and compliance, performance and operations, disturbances, and long-term reliability outlook. NERC is continuing to seek feedback from the industry and other stakeholders on these metrics. For more information on the Benchmarking program, see the Reliability Information Dashboard. To encourage continuous learning, NERC offers training and education support to help bulk power industry participants conduct their own training and education programs. NERC also determines which educational programs qualify as Continuing Education Programs for the industry. For more information on the Training & Education program, click here. NERC maintains the list of entities that are subject to compliance with NERC Reliability Standards. For more information on Organization Registration, click here. Eventually, NERC will certify reliability coordinators, balancing authorities and transmission operators, ensuring that they have the necessary tools, procedures and training in place before assuming responsibility for part of the electricity transmission grid. Standards are being developed in this area. For more information on Organization Certification, click here. NERC manages the program that certifies system operators, ensuring they have the required knowledge and skills to perform their functions. A combination of examinations, training and other Continuing Education requirements is used to certify the qualifications and competency of operating personnel. For more information on the
System Operator Certification program,
click here. |
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