NERC Reliability Standards Workshop Introduction and Objectives

1. NERC Reliability Standards WorkshopIntroduction and Objectives

2. NERC and Regional Reliability Organizations

3. Electric Reliability Organization Overview Canada NEB, Alberta, British Columbia, Manitoba, Ontario, New Brunswick, Nova Scotia, Quebec, and Saskatchewan United States Federal Energy Regulatory Commission Mexico Comision Reguladora de Energia Reliability Standards Government Oversight Compliance Enforcement Electric Reliability Organization Regional Entities Reliability Assessment Other ERO Members Bulk Power System Owners, Operators, Users

4. What’s New Under ERO? • Reliability standards are approved by FERC and authorities in Canada • Reliability standards are mandatory and enforceable by law • Financial penalties can be applied, up to $1M per violation per day • Reliability jurisdiction applies to all bulk power system owners, operators and users, regardless ownership class

5. Public Interest in Reliability • Promotes safety, health, and security • Promotes economy, growth, and quality of life • Enables electricity markets

6. Reliability Key Success Factors • Standards • Unambiguous requirements and measures • Accountability (who is responsible) • Compliance • Promote good performance • Active monitoring • Disclosure of compliance results • Firm actions to resolve violations • Learn from experience (measure performance)

7. Workshop ObjectivesPromote awareness and understanding of: • Changes introduced by reliability legislation • Reliability standards process and roles • Emerging new reliability standards • Goals and future plans for reliability standards • Compliance monitoring and enforcement • Organization registration and certification • Personnel certification • Reliability readiness and improvement • Regional standards and compliance programs • NAESB business practices