By Holden Mann

In its annual report, NERC cast 2019 as a “true pivot point” for the ERO Enterprise, thanks to initiatives aimed at improving the effectiveness of the organization and sharpening its focus on emerging challenges.

Consolidations Boost Efficiency, Engagement

The report highlighted several moves to reorganize the operation of the ERO Enterprise, with the transition of the Western Interconnection to multiple reliability coordinators singled out as “a significant accomplishment for all new RCs, their customers … and the grid.” The dissolution of Peak Reliability in December 2019 capped an 18-month process that saw the former RC hand over its functions to West’s RC Transition Earns Plaudits.)

NERC also held up SERC Reliability’s takeover of the Florida Reliability Coordinating Council in July as an example of effective integration to improve grid reliability. (See SERC Rethinking Board After FRCC Integration.) NERC applauded SERC’s “dedication to working together with affected registered entities … resulting in a stronger, more reliable and more efficient region.”

High-level organizational changes were featured as well, including formation of the ERO Enterprise Executive Committee. NERC CEO Jim Robb said the committee, comprising the ERO’s senior leadership team and the CEOs of the regional entities, can “symbolize and operationalize” the organization’s commitment to respecting the independence of REs while working together toward a “common mission of assuring a reliable and secure bulk power system.”

NERC also touted the formation of the Stakeholder Engagement Team in May, which set in motion the creation of the new Reliability and Security Technical Committee (RSTC) to replace several existing bodies. (See Three NERC Committees Likely to Merge.)

Emerging Risks Highlighted

The organization’s work raising awareness of new risks garnered attention too, with its efforts divided into four key areas: grid transformation, extreme natural events, security risks and critical infrastructure interdependencies.

Security was the highlight of some of NERC’s biggest events in 2019. The most obvious example was the GridEx V security exercise in November, which featured the participation of more than 7,000 security professionals from nearly 530 industry and government organizations, 29 FBI field offices and 26 state governments. (See GridEx V Throws New Tech Curveball.) October’s GridSecCon 2019 provided opportunities for physical and cybersecurity experts to share knowledge on drones, insider threats, supply chain risks and a range of other topics. (See Overheard at GridSecCon 2019.)

Less visible, but equally important, was NERC’s behind-the-scenes work creating a base for knowledge-sharing and cooperation by players in the ERO Enterprise and industry. The Electricity Information Sharing and Analysis Center (E-ISAC) notched several key milestones last year, with the appointment of new CEO Manny Cancel and new information-sharing agreements with the natural gas, oil and water sectors, as well as state and local governments. (See Former Con Ed Exec to Lead E-ISAC.)

The organization also made progress in updating its reliability standards to address supply chain security risks, along with creating plans for recovery from an electromagnetic pulse attack. Task forces focused on each of these areas saw NERC’s Board of Trustees adopt their recommendations at its most recent meeting. (See “EMP, Supply Chain Recommendations Approved,” NERC Board of Trustees Briefs: Feb. 6, 2020.)

Knowledge Base Expansion Continues

Finally, NERC continued to develop its picture of the overall reliability landscape through the 2019 Long-Term Reliability Assessment, which predicted short-term challenges with resource adequacy in some regions but found opportunities for utilities in a changing resource mix. (See NERC Seeks Resilience Metrics, Focus on Resource Shifts.)

“NERC’s mission to enhance the reliability and resilience of the North American grid requires constant vigilance in the face of dramatic industry change and the emergence of new threats by bad actors,” board Chair Roy Thilly said. “I am pleased to report that NERC, together with industry and the regions, continues to be successful in meeting this important responsibility.”