Evaluation | Analysis | Assistance | Operating Experience SERC Reliability Corporation
Gary J. Taylor President & CEO Tim Ponseti Vice President, Operations
SERC Reliability Corporation 3701 Arco Corporate Drive, Suite 300 | Charlotte, NC 28273 Phone: 704.357.7372 | Fax: 704.357.7914 www.serc1.org
CORPORATE IDENTITY
Our Vision A highly reliable and secure bulk power system Our Mission To identify, prioritize, and assure effective and efficient mitigation of risks to the reliability and security of the bulk power system
Our History In 1968, a National Electric Reliability Council was created after 30 million people were left in the dark for 13 hours during a 1965 blackout Later changed to the North American Electric Reliability Council in 1981 to recognize Canadian membership Incorporated in 2006 as the North American Electric Reliability Corporation (NERC) In 1970, the Southeastern Electric Reliability Council (SERC) was formed in Birmingham, AL In 2005, SERC incorporated as the SERC Reliability Corporation In 2006, FERC certified NERC as the Electric Reliability Organization (ERO) in the United States NERC delegated authority to SERC to serve as a Regional Entity
Our Core Values and Principles • Accountability & Independence • Responsiveness • Fairness & Inclusiveness • Innovation & Adaption • Excellence & Efficiency • Integrity & Ethics
ERO Enterprise Strategic Planning • SERC utilizes the ERO Enterprise Strategic Plan as a strategy guidance document • As such, SERC pursues, as applicable for a regional entity, the strategic goals identified in that plan
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SERC RELIABILITY CORPORATION
Facts and Figures SERC is a nonprofit regulatory authority for administration of the bulk power system in all or parts of 16 southeastern states SERC is subject to oversight from the Federal Energy Regulatory Commission (FERC) SERC has been delegated its authority from the North American Electric Reliability Corporation (NERC) pursuant to Section 215 of the Federal Power Act SERC is comprised of 53 Members and 192 Registered Entities
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Approximately 560,000 square miles More than 53 million customers
SERC is cost-conscious, and manages costs in alignment with stakeholder objectives
• 244,000 MW of connected generation; 203,000 MW of internal demand (peak load) • Over 1 Billion MWh Net Energy for Load on an annual basis, over 25% of the load in the United States • SERC is tightly interconnected with entities in four adjacent Regions (SPP RE, FRCC, RF, and MRO) e.g. , 100% of FRCC and 95% of SPP RE interconnections are with SERC RE members
Based on preliminary 2018 Budgets submitted to NERC in May 2017:
SERC’s cost is 1.7 ¢ per MWh
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BUSINESS MODEL
Stakeholder Board Model
Technical Committees
SERC is a membership based corporation governed by a balanced stakeholder Board of Directors Each SERC member company may appoint one Director to the SERC Board of Directors
Allow and encourage active participation from all segments of industry
Foster an environment of industry engagement, education, and collaboration
SERC offers Registered Entity Forums, System Operator Training, Outreach programs, and Entity Assistance programs SERC entities can share information in an open and transparent fashion; receive valuable training/assistance; network; and discuss operating experiences and lessons learned
SERC is cost-conscious, and manages costs in alignment with stakeholder objectives
SERC’s estimated cost in 2018 is: 1.7 ¢ per MWh
SERC is tightly interconnected with entities in four adjacent Regions (FRCC, SPP RE, RF, and MRO)
Outreach and Assistance
Efficiency and Effectiveness
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GOVERNANCE
SERC Board of Directors • The SERC Board of Directors is responsible for managing SERC affairs pursuant to the SERC Bylaws and the NERC Delegation Agreement • The Board of Directors is comprised of representatives from all SERC member companies • Every member company is eligible to appoint a Director • The Board Executive Committee (BEC) – a subset of the Board of Directors – directs day-to-day functions of the organization • BEC is a balanced representation of 12 directors from 7 industry sectors • BEC members are elected from Board members by sector
Greg Ford, Chair Board of Directors CEO, Georgia System Operations Corporation
Board Compliance Committee (BCC)
Finance and Audit Committee (FAC)
Operating Committee (OC)
Engineering Committee (EC)
Board of Directors / BEC
Standing Technical Committees
Human Resources and Compensation Committee (HRCC)
Critical Infrastructure Protection Committee (CIPC)
Nominating Committee (NC)
Standards Committee (SC)
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STANDING TECHNICAL COMMITTEES
Committee Structure SERC and its members leverage the committee structure to perform SERC’s delegated activities, provide a venue for members to address compliance in a combined effort and create an environment to enhance reliability and security in the SERC region SERC representatives and the technical committees face known and emerging risks collaboratively The SERC Technical Committees encourage industry engagement, education, and input The Operating Committee (OC) facilitates a forum for representatives to coordinate and share experience and information to provide input on operating issues
SERC Board of Directors Board Executive Committee
Engineering Committee Operating Committee (OC) Engineering Committee (EC) Critical Infrastructure Protection Committee (CIPC) Standards Committee (SC) Operating Committee Standards Committee
Board Executive Committee
The Engineering Committee (EC) provides mechanism for coordination of SERC planning and engineering activities
The Critical Infrastructure Protection Committee (CIPC) focuses on physical and cyber security of electric systems The Standards Committee (SC) promotes development and maintenance of NERC and SERC Reliability Standards and the work plan for SERC Regional Criteria and Guidelines
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SERC ASSISTANCE PROGRAMS
Entity Assistance SERC is developing a value-based, targeted assistance program to directly aid registered entities where they need it the most. This new program will also be a further enhancement the opportunities currently offered. Compliance Seminars: In-person and web-based sessions to facilitate open and transparent dialogue between entities and SERC Compliance Staff throughout the year System Operator Conferences: Training with NERC-approved continuing education hours to maintain certifications FAQ & Lessons Learned: Website page, categorized by topic, to educate entities and provide a consistent message on FAQs Registered Entity Forum: Ability to ask questions anonymously in an open and transparent engagement with SERC Staff Newsletter: Published monthly; regular features include: hot topics; news items from SERC, NERC, and FERC; SERC technical committee information; and upcoming events Presentation Library: A searchable online repository of past SERC presentation material for various events
Data Analytics SERC has partnered with the University of North Carolina – Charlotte to develop a training curriculum on data analytics SERC is using its analytical prowess to develop customized Entity dashboards with the unique insights SERC can provide from both a high-level Regional perspective and a detailed granular entity-specific perspective SERC is engaging its entities on an individual basis to share its perspective and to collaborate on ways to improve BPS reliability Data Analytics also provides a foundation for engaging with Entities on customized assistance engagements
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SERC COMPLIANCE PROGRAMS
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Compliance Monitoring The Compliance and Reliability organization oversees the Compliance Monitoring, Entity Assessment, and Mitigation Plan functions of the SERC Compliance Monitoring and Enforcement Program (CMEP) The Compliance Monitoring department is staffed by O&P and CIP subject matter experts, many with NERC Operator, CIP, and audit certifications and credentials SERC’s Industry Subject Matter Expert (ISME) Program allows registered entity staff to participate on audits with SERC audit staff as a technical resource and supplement to the audit team Provides a unique audit perspective by
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Entity Assessments and Violation Processing The Entity Assessment and Mitigation (EAM) conducts Inherent Risk Assessments (IRAs) to assist in the development of the Compliance Oversight Plan (COP), and processes potential noncompliance issues after they are discovered EAM performs individual Entity Risk Profiles with additional granularity to refine and align the COP SERC utilizes a single-point-of-contact for Entity interactions with the EAM team, which allows our team to becomes familiar with individual Entity Compliance programs EAM handles all potential non-compliance processing and mitigation plan reviews for Entities, and is available to answer questions and provide insights to compliance matters Enforcement is handled through the Legal department which collaborates with the Compliance and Reliability staff to resolve violations
witnessing the SERC audit engagement with another Registered Entity, and potentially learning best practices from another entity
SERC RELIABILITY PROGRAMS
Integrated Risk Management SERC’s Integrated Reliability Risk Management Program synthesizes reliability and compliance programs through data analytics and outreach Stakeholder driven processes support annual risk identification, ranking and control efforts within the Region Lessons learned derived from the root cause of events and/or emerging risks promote stakeholder initiatives and outreach A centralized data management strategy develops insights on the performance of the Bulk Electric System
Reliability Assessments, Studies, and Models The Reliability Assessment and Performance Analysis (RAPA) department provides BPS analysis, data gathering, and investigation of events to identify risks through a number of initiatives and forums SERC Staff and SERC members jointly perform seasonal, long-term and scenario reliability assessments that support NERC and SERC initiatives SERC leads technical study groups that focus on steady-state BPS analysis as well as dynamics, short circuit, and resource adequacy considerations SERC manager Planning Coordinator model building programs that are designed to support Regional and eastern interconnection model building processes
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LEADERSHIP TEAM
Gary J. Taylor President & CEO
George Krogstie, CPA Director of Finance
Holly Hawkins General Counsel
August M. McClaine Corporate Secretary
Erin Kwon Human Resources Director
Tim Ponseti Vice President, Operations
Melinda Montgomery Director, Advanced Analytics & Technical Services
Brian F. Thumm, PE Senior Director of Compliance and Reliability
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BIOGRAPHIES
Gary J. Taylor President & CEO
Tim Ponseti VP, Operations
Gary is President and CEO of SERC Reliability Corporation, overseeing and providing leadership to all functions of the organization. Gary's extensive industry background and experience includes serving as group president of Entergy’s Utility Operations from 2007 to 2012. He was responsible for the regulated utility financial results, along with operational results of six electric and two natural gas companies located in Arkansas, Louisiana, Mississippi, Texas, and New Orleans with 2.8 million electric and 196,000 natural gas customers and $9 billion in annual revenues. He also oversaw utility regulatory support and regulated retail activities until his retirement in May 2012. He also previously served as chief executive officer and chief nuclear officer of Entergy’s nuclear businesses. In July 2006, under Gary’s guidance, Entergy Nuclear announced an agreement to purchase the Palisades nuclear power plant in Michigan from Consumers Energy. Gary has served as a U.S. Chamber of Commerce board member and chaired the Energy, Clean Air and Natural Resources Committee. He also served on the board of the United Way of Greater New Orleans, the Executive Committee of the Nuclear Energy Institute, and the INPO Board of Directors. He is currently a member of the board of directors of the American Nuclear Society and Trustee of the VMI foundation. He received his Bachelor of Science in Physics from the Virginia Military Institute and a Master of Science in Nuclear Science and Engineering from Virginia Polytechnic Institute and State University. He has also completed Harvard University’s Advanced Management Program and the INPO Senior Nuclear Plant Management course. Gary is a member of the National Physics Honor Society and was Honorably Discharged from the United States Air Force.
Tim is Vice President, Operations of SERC Reliability Corporation directing the day- to-day operations of SERC, including SERC’s program services; technical services; reliability assessments and services; compliance monitoring and enforcement program; along with IT and analytics activities. Tim’s extensive background includes control center operations, transmission operations, transmission planning, transmission maintenance, resource planning, load forecasting, distribution engineering, rate design and customer service, regulatory policy and compliance, industrial marketing, plus many years of experience serving on the SERC Board of Directors and NERC committees. Tim graduated summa cum laude from Tulane University, with a Bachelor of Science in Electrical Engineering. He is a member of the National Engineering Honor Society, the National Electrical Engineering Honor Society, the National Leadership Honor Society, and was a NERC Certified System Operator. After graduating from Tulane, Tim joined Entergy, where he worked a variety of jobs over the next 18 years. His last 5 years were spent in Pine Bluff, Arkansas, as the overall manager of Entergy’s System Operations Center, with BA and RC responsibilities. A portion of these years with Entergy were spent as a member of SPP. In 2003, Tim joined TVA, where he held a variety of executive level positions. From 2013 to 2017 he served as TVA’s VP of Transmission Operations & Power Supply (TOPS), where he had responsibility for TVA’s TOp , BA, and RC function across TVA’s 7 state area, plus SCADA, Operator Training, Compliance Execution, Real Time Power Trading, and Power Origination. Since October 2015, Tim served as the Vice Chair of the SERC Board of Directors; and since January 2016, he has been a member of the NERC Member Representatives Committee (MRC), and served as Chair of the Eastern Interconnect Planning Collaborative (EIPC).
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SERC RELIABILITY CORPORATION
For additional information, please contact: information@serc1.org
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