New York State Reliability Council Promoting Electric System

New York State Reliability Council ……. . Promoting Electric System Reliability in New York State Presentation to the MEUA Annual Meeting - 2000 September 19 -21, 2000 Richard J. Bolbrock, P. E. Chairman - New York State Reliability Council 1

NYSRC Mission To Promote and Preserve the Reliability of Electric Service on the Bulk Power System in New York State 2

General Responsibilities • Establish and maintain Reliability Rules for use by the NYISO and all entities engaging in electric power transactions on the Bulk Power System • Along with NPCC and the ISO, monitor compliance with the Reliability Rules • Establish State-Wide Installed Capacity Requirements consistent with NPCC Standards 3

NYSRC Organizational Structure NYSRC Executive Committee Reliability Rules Subcommittee Reliability Compliance Monitoring Subcommittee ICAP Working Group 4

NYSRC Membership 7 - Affiliated Members from the Transmission Providers 1 - Member from the Electric Suppliers 1 - Member from the Municipalities 1 - Member from the Large Customers 3 - Non-Affiliated Members 3 - Observers ISO PSC NPCC 5

NYSRC Responsibility Topics • NYSRC Rule Development • NYSRC Compliance Monitoring • NYCA ICAP Requirements 6

NYSRC Rule Development 1. Elements of NYSRC Rules 2. Process for Updating NYSRC Rules 3. Rule Development Program for 2000 7

Elements of the NYSRC Rules • NERC Standards • NPCC Standards • Local Reliability Rules • Other more restrictive or stringent criteria than NPCC Standards, recognizing special NYS system characteristics or reliability needs 8

Procedure for Reviewing, Developing, Modifying, and Disseminating NYSRC Reliability Rules NYSRC ISO MPs Rule Change Request 1 EC Assigns to RRS Recommendation to Accept or Reject Rule Change 2 Notification Post Request (Reject Rule Change) 3 (Accept Rule Change) EC Action RRS 1 st Draft Rule Post RRS Reviews Comments 4 5 (45 Day Comment Period) RRS Final Draft Rule To RRS for Revision EC Action (Return) (Approve) 6 7 Final New or Modified Rule Notify FERC & PSC Implement Rule Notify MPs (Agrees with Rule) ISO Reviews Rule Post (Disagrees with Rule) Dispute Resolution 8 9

Rule Development Program for 2000 • Preparing new NYSRC Rules • Merging NERC/NPCC Standards into NYSRC Rules 10

NYSRC Compliance Monitoring 1. NYSRC Compliance Review Process 2. 2000 NY Reliability Compliance Program [2000 NYRCP] 11

Compliance Review Process • Develop reporting procedures • Collect data, documentation, and assessments to demonstrate compliance • Evaluate compliance • Report conclusions regarding full compliance or levels of non-compliance 12

Types of NYSRC Rule Assessments 13

Compliance Review - Type A NYSRC Rule: NPCC Criteria Responsible Reporting Entity: ISO Compliance Monitoring Entity: NPCC Oversight Review Entity: NYSRC ISO Prepares Compliance Report 1 NYSRC Provides Oversight Review and Comments to ISO 2 NPCC Monitors ISO Compliance 3 Examples: • Transmission System Performance (3. 2. 1 -3. 2. 6) • NERC/NPCC Pilot Program Standards 14

Compliance Review - Type B NYSRC Rule: NPCC Criteria Responsible Reporting Entity: MPs Compliance Monitoring Entity: ISO Oversight Review Entity: NYSRC/NPCC MPs Prepares Compliance Report ISO Monitors MP Compliance NYSRC Provides Oversight Review and Comments 3 to ISO 1 2 NPCC Provides Oversight Review 4 Examples: • NERC/NPCC Pilot Program Standards 15

Compliance Review - Type C NYSRC Rule: Not Covered by NPCC/NERC Criteria Responsible Reporting Entity: ISO Compliance Monitoring Entity: NYSRC ISO Prepares Compliance Report 1 NYSRC Monitors ISO Compliance 2 Examples: • Locational ICAP Responsibility (3. 1. 2) • Restoration Procedures (4. 1. 6) • DMNC Testing Procedure (3. 1) 16

Compliance Review - Type D NYSRC Rule: Not Covered by NPCC/NERC Criteria Responsible Reporting Entity: MPs Compliance Monitoring Entity: ISO Oversight Review Entity: NYSRC MPs Prepare Compliance Report 1 ISO Monitors MP Compliance 2 NYSRC Provides Oversight Review 3 Rule Examples: • Local Rules • LSE Capacity Responsibility (3. 1. 4) • DMNC Testing - Test Results (3. 1) 17

Summary 2000 NY Reliability Compliance Program (NYRCP) Assessments 18

2000 NYRCP Summary 19

2000 NYRCP Objectives • To Monitor Compliance with NYSRC Rules • To Test Effectiveness of the Compliance Review Process and Procedures • To Assess Communication between NYSRC, NYISO, Market Participants, and NPCC Concerning Reliability Assurance 20

NYCA IRM Requirements NYSRC Study Process Study Assumptions Multi-Area Reliability Model NYCA Results IRM - 18% 11 NYCA Zones ISONE PJM Ontario H-Q NYISO Study Locational Capacity Requirements LSE IRM Requirements 21

New York Model NYISO/NYSRC Relationship NY State Reliability Council (NYSRC) Reliability Rules / Criteria Compliance Data Independent System Operator (NYISO) Dispute Resolution 22

NYSRC Relationship to NYISO • NYSRC and the NYISO will function as two separate and distinct entities but work cooperatively • NYSRC defines the reliability rules for operating the system • NYISO responsible for short term reliability of NYS power system • NYSRC and NYISO will both participate at NPCC and NERC/NAERO • NYSRC assesses and monitors NYISO's compliance with reliability rules 23

NYSRC Relationship to NYISO Cont’d • NYISO provides NYSRC with data, reports, and assistance • NYISO provides reports to NYSRC describing performance of NYS Power System • NYSRC reviews and approves triennial reviews and other reliability reports prepared by the NYISO for submittal to NPCC/NERC 24

Functional Relationships Between NYSRC & NYISO 25

Functional Relationships Between NYSRC & NYISO 26

Functional Relationships Between NYSRC & NYISO 27