By Holden Mann
NERC’s Align software project is now set to be released in the first quarter of 2021, after the rollout date for the tool was revised last year from September 2019 to the second or third quarter of this year. (See Align Rollout Delayed to 2020.)
Align — formerly known as the CMEP (Compliance Monitoring and Enforcement Program) Technology Project — is intended to improve and standardize compliance monitoring and reporting processes across the ERO Enterprise.
Speaking to the Member Representatives Committee’s (MRC) premeeting informational conference call on Wednesday, NERC CEO Jim Robb attributed the further delay to development of the Secure Evidence Locker. This security feature was originally intended to be included in an update but was added to the initial release at the request of registered entities when the project was delayed for the first time last summer, because of concerns over the software provider’s ties to a Hong Kong-based private equity firm. (See NERC Investigating Chinese Tie to Software Vendor.) [NOTE: An earlier version of this article incorrectly said the feature was added at the request of regional entities.]
The ongoing development delay has caused the cost of the project to rise beyond its original estimate by up to $2 million, according to Andy Sharp, NERC’s interim CFO. Approval for the expenditure will be requested during the MRC conference call scheduled for May 14, with the funding expected to come from NERC’s operating contingency reserves for 2021.
Upfront costs for the project of $3.8 million, which were not included in NERC’s budget for this year, will also require a variance to be filed with FERC, Sharp said. The organization expects to fund the investment with a projected $1 million surplus from the operating contingency reserves for this year, in addition to debt financing of $2.8 million.
Sharp told attendees that he is pursuing a 60-month term for this loan rather than the typical 36 months, as the current low interest rates mean overall servicing costs will be the same or lower than previous projections of debt service for this year.
“The costs of delay and implementation of these sorts of projects are significant, and they will increase if there is further delay,” NERC Board of Trustees Chair Roy Thilly said. “So what we need to do is move carefully, effectively and expeditiously at the same time to resolve these matters.”
Robb Delivers COVID-19 Update
Robb also provided listeners with an update on NERC’s response to the COVID-19 pandemic. The organization has now confirmed three cases of the coronavirus among its staff, including the first case reported in March. (See NERC Employee Tests Positive for Coronavirus.) However, all have either fully recovered or are recovering well, and Robb said there is “no evidence of any community spread through the NERC ecosystem.”
The ERO is presently in a “full remote work posture,” which it plans to maintain through July 4, though its offices are expected to formally reopen by May 25. In addition, all external meetings through June have been either canceled or converted to conference calls. Events previously scheduled for July and August are expected to undergo similar changes.
GridSecCon, the annual security conference sponsored by the Electricity Information Sharing and Analysis Center scheduled for Oct. 20-23, has also been canceled this year, while the inaugural Electric Power Human Performance Improvement Symposium, planned for Sept. 29 to Oct. 1, has been delayed to next spring.
NERC said earlier this month that the industry has “[taken] aggressive steps” in response to the pandemic, with most utilities either having a written response plan or currently developing one, and a majority pledging to support mutual aid requests from others involved in a pandemic emergency. (See Industry Pandemic Prep Encouraging, NERC Says.) The organization issued a Level 2 alert in March and has activated its Business Continuity Plan.
