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Compliance Report

WECC Board of Directors MeetingApril 21, 2006

Compliance Report

WECC Board of Directors MeetingApril 21, 2006

Steve RueckertDirector,

Standards and Compliance

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Presentation Overview• Compliance Results (RMS and NERC CEP) –Final results–Trends

• 2006 Compliance Enforcement Program

• 2007 and Beyond – Mandatory Compliance

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2005 Results

•WECC reported a total of 262 violations–150 violations of requirements of the 2005 NERC CEP •42 repeat offenders!!

–129 WECC RMS violations–17 violations were an overlap of CEP and RMS requirements

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RMS - 2005 vs. 2004•Reported violations–522 in 2004 was reduced to 129 in 2005

•Biggest improvements–Unscheduled Flow Mitigation (USF) violations were reduced from 349 to 65

–Balancing Authority Operator Certification violations were reduced from 52 to 15•None in September – December•Still 2 Transmission Operators in violation

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NERC CEP - 2005 vs. 2004

•Reported violations–129 in 2004 vs. 150 2005–Different subset of standards assessed

–2005 total includes violations identified during Readiness Audits

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2006 Compliance Program

•April 4-5, 2006 Workshop–Well attended

•60-70 participants–NERC Staff presentation on ERO–Looked at 2006 and 2007 and beyond

–Two breakout sessions–Reporting requirements and due dates similar to 2005

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2007 and Beyond• Change is coming!• Participation is no longer an option• Standards are applicable to all users, owners, and operators of the Bulk Electric System

• Registration of responsible entities is underway– Identifies who is responsible– Failure to register does not relieve organizations from their responsibility to comply

• Outreach and Education

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2007 and Beyond

•Utilize existing tried and proven RMS procedures and process

•Future of the RMS Program•Work with Canadian and Mexican authorities

•Field test of NERC Sanctions Table?

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ERO Sanction TableSeverity of Violation

Risk Low

Level 1

Moderate

Level 2

HighLevel

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SevereLevel

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Low $1,000 $3,000 $6,000 $10,000

Medium $5,000 $15,000

$25,000

$40,000

High $35,000

$50,000

$70,000

$100,000

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Compliance Report

WECC Board of Directors MeetingApril 21, 2006

Compliance Report

WECC Board of Directors MeetingApril 21, 2006

Questions?