01-23-2017 BPU RPT 05 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 23, 2017 ITEM NO: 5 SUBJECT: NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION -WESTERN ELECTRICITY COORDINATING COUNCIL INTERNAL COMPLIANCE PROGRAM UPDATE ISSUE: Approve the third amendment to the Internal Compliance Program governing Riverside Public Utilities' compliance with North American Electric Reliability Corporation Reliability Standards applicable to all users, owners and operators of the bulk power system. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Adopt a resolution approving the attached third Amendment to the Riverside Public Utilities Internal Compliance Program; and 2. Authorize the City Manager, or his designee, to approve substantive modifications to the Riverside Public Utilities Internal Compliance Program which are necessary to comply with additional or revised Federal Energy Regulatory Commission, North American Electric Reliability Corporation, and/or the Western Electricity Coordinating Council regulations. BACKGROUND: The United States Energy Policy Act of 2005 authorized the creation of a self-regulatory "electric reliability organization" that would span North America, with Federal Energy Regulatory Commission ("FERC") oversight in the U.S. The legislation stated that compliance with reliability standards would be mandatory and enforceable. To help ensure reliable operation of the bulk electric system, FERC approved the first set of the North American Electric Reliability Corporation ("NERC") Reliability Standards, legally enforceable standards for the U.S. bulk power system, effective June 4, 2007. All bulk power system owners, operators, and users are required to register with NERC through the appropriate Regional Entity and must comply with NERC -approved Reliability Standards. The Western Energy Electricity Council ("WECC") is one of eight regional entities with the delegated authority from NERC to monitor compliance with the Reliability Standards. WECC is responsible for coordinating and promoting electric system reliability for the Western Interconnection which includes the City of Riverside. Riverside Public Utilities (RPU) was initially registered with NERC for six Functional Entities ("Functional Entity" means an entity responsible for a function that is required to ensure the Reliable Operation of the electric grid as identified in the NERC Reliability Standards.) Due to changes to the NERC Rules of Procedure, RPU is registered for two Functional Entities; Distribution Provider and Resource Planner. Currently, there are a total of 113 mandatory Reliability Standards and RPU must comply with 25. However, Reliability Standards are continually evolving through revisions, retirements or the approval of new standards to keep pace with technological and regulatory changes so the number of applicable Reliability Standards fluctuates.