“The frequency and voltage of interconnected bulk power systems shall be controlled within defined limits through the balancing of real and reactive power supply and demand.” As proposed, BAL-004-WECC-3 changes the standard’s focus from verification to operation. Each Balancing Authority (BA) operating synchronously in the Western Interconnection would be required to operate its system such that following the conclusion of each month, specific Primary Inadvertent Interchange values fall within a specified range. One way this is achieved is by maintaining a consistent frequency within the system. Reliability Principle 3 states: “Information necessary for the planning and operation of interconnected bulk power systems shall be made available to those entities responsible for planning and operating the systems reliably.” As proposed, BAL-004-WECC-3 specifies a specific software tool from which all true-up values will be derived. The proposed standard does not limit an entity’s ability to use alternative internal means of calculation; however, for purposes of true-up with external entities (other BAs) only the WECC Interchange Tool (WIT), or its successor can be used. This approach standardizes the information necessary for true-up and promotes a uniform operation of the system within parameters specified in Requirement R1, Sub Parts 1.1 and 1.2. Proposed Reliability Standards must contain a technically sound method to achieve the goal. The proposed Reliability Standard must be designed to achieve a specified reliability goal and must contain a technically sound means to achieve this goal. Although any person may propose a topic for a Reliability Standard to the ERO, in the ERO’s process, the specific proposed Reliability Standard should be developed initially by persons within the electric power industry and community with a high level of technical expertise and be based on sound technical and engineering criteria. It should be based on actual data and lessons learned from past operating incidents, where appropriate. The process for ERO approval of a proposed Reliability Standard should be fair and open to all interested persons. Order No. 672 at P 324. Standard Development
As mentioned in item 8 above, the proposed Reliability Standard is designed to enhance implementation of existing operational practices while standardizing and streamlining post-operational true up. Proposed Reliability Standards may consider costs to implement for smaller entities but not at consequence of less than excellence in operating system reliability. A proposed Reliability Standard may take into account the size of the entity that must comply with the Reliability Standard and the cost to those entities of implementing the proposed Reliability Standard. However, the ERO should not propose a “lowest common denominator” Reliability Standard that would achieve less than excellence in operating system reliability solely to protect against reasonable expenses for supporting this vital national infrastructure. For example, a small owner or operator of the Bulk-Power System must bear the cost of complying with each Reliability Standard that applies to it. Order No. 672 at P 330. During the four postings of this project the industry raised no cost concerns. Proposed Reliability Standards must be designed to apply throughout North America to the maximum extent achievable with a single reliability standard while not favoring one area or approach. A proposed Reliability Standard should be designed to apply throughout the interconnected North American Bulk-Power System, to the maximum extent this is achievable with a single Reliability Standard. The proposed Reliability Standard should not be based on a single geographic or regional model but should take into account geographic variations in grid characteristics, terrain, weather, and other such factors; it should also take into account regional variations in the organizational and corporate structures of transmission owners and operators, variations in generation fuel type and ownership patterns, and regional variations in market design if these affect the proposed Reliability Standard. Order No. 672 at P 331. In the Order 740 Remand at P4, the Commission states that: “Reliability Standards that the ERO proposes to the Commission may include Reliability Standards that are proposed to the ERO by a Regional Entity… When the ERO reviews a regional Reliability Standard that would be applicable on an interconnection-wide basis and that has been proposed by a Regional Entity organized on an interconnection-wide basis, the ERO must rebuttably presume that the regional Reliability Standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. In turn, the Commission must give “due weight” to the technical expertise of the ERO and of a Regional Entity organized on an interconnection-wide basis.”