Subject: UFTO Note – DOE Task Force on Elec. Reliability & EEI committee
Date: Wed, 23 Oct 1996 09:16:15 -0700
From: Ed Beardsworth <edbeards@batnet.com>
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| * UFTO * Edward Beardsworth * Consultant
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Following up on last week’s UFTO Notes about DOE’s Roundtable meetings and the mysterious account of the O’Leary-CEOs meeting, here are more developments.

1. More details on the proposed DOE SEAB Task Force on Elec. Reliability. There’s been no decision as yet. The writeup attached below appears on the DOE-SEAB web site, but with no links to it. (Thanks to Jerry Lonergan, KEURP, for the tip.)

2. A recent news story about EEI’s plans to form an industry committee, presumeably to represent IOUs in dealings with DOE and the task force.

Also, copies of the DOE report to the President about the July 2 western power outage (DOE/PO-0050) are available from the DOE Office of Policy. Contact is Jim Fremont, 202-586-5735. Jim also maintains their mailing list (in case you didn’t see their mailing about the Roundtable Meetings).
SECRETARY OF ENERGY ADVISORY BOARD

TERMS OF REFERENCE

TASK FORCE ON ELECTRIC SYSTEM RELIABILITY

Objectives and Scope of Activities: To provide advice, information, and recommendations to the Secretary of Energy Advisory Board on issues related to the reliability of bulk electricity systems in the United States.

Background

The major power outages in the western U.S. of July 2 and August 10, 1996 have brought widespread attention to the issue of electric system reliability. The electric industry is in the midst of a complex transition to competition. This transition will induce many far-reaching changes in the structure of the industry and the institutions which regulate it. The transition also raises many issues related to reliability, as new entities emerge in power markets and as generation becomes less integrated with transmission.

The role of the Task Force on Electric System Reliability will be to advise on critical institutional, technical, and policy issues that need to be addressed in order to maintain bulk electric system reliability in the context of a more competitive industry. Among other things, the Task Force will consider whether existing federal law should be modified and will also identify key technical issues that need to be addressed in order to maintain the reliability of the electric grid as it is used more intensively for regional power transfers. These issues should be framed as an agenda for a collaborative research program involving the Department, its national laboratories, the North American Electric Reliability Council and the regional reliability councils, the Electric Power Research Institute, academic institutions, corporate participants in wholesale power transactions, and others.

Description of the Task Force’s Duties:

The Task Force shall prepare periodic reports identifying and suggesting ways to address key institutional, technical, and policy issues associated with maintaining bulk electric system reliability in the context of a competitive electric industry.

Reporting:

The Task Force shall report to the Secretary of Energy Advisory Board.

Estimated Number and Frequency of Meetings:

The Task Force is expected to meet approximately six times per year. Meetings will be scheduled as the Task Force chair deems necessary for the Task Force to accomplish its duties and purposes.

Members:

The Task Force’s membership shall reflect a balance of expertise and viewpoints. Members shall include members of the Secretary of Energy Advisory Board, as well as members of the public, and shall include representatives of affected electricity producer and marketing groups, federal and state agencies, reliability organizations, academic and other experts on reliability, and other relevant stakeholder groups. Members shall be appointed for terms of two years, renewable for a second term.

Chairperson:

The Secretary of Energy shall designate a chair or two co-chairs for the Task Force on Electric System Reliability.

Working Groups:

To facilitate the functioning of the Task Force, the Task Force may establish working groups on its own initiative. The objective of a working group would be to undertake fact finding and analysis on behalf of the Task Force, with respect to matters within the responsibilities of the Task Force, focusing on short and long term requirements.

The Chairperson (or co-chairs), in consultation with the Department, will appoint members of working groups. Persons from outside the Task Force may be appointed to a working group to secure expertise needed to conduct committee business. Working groups shall meet as the Task Force deems appropriate.

Duration and Termination Date:

This Charter shall expire three years from the date of the Task Force’s establishment, subject to extension or dissolution by the Chairman of Secretary of Energy Advisory Board.
-#2——————————– U.S. utilities to study power grid reliability

Source: Reuters Oct 16, 1996

WASHINGTON, Reuters via Individual Inc. : The Edison Electric Institute, which represents investor-owned utilities, said Wednesday it had set up a panel of top executives to review U.S. power grid reliability and possibly recommend mandatory rules for operating the system.

The move comes after two major power outages in the West in July and August and comes amid sweeping changes drawing new players into the power market and widening use of the grid.

The committee plans to work with the Energy Department and the North American Electric Reliability Council (NERC), the main industry body which ensures transmission reliability.

The group plans to make recommendations for improving transmission operating standards, enforcing standards, pricing of transmission, and developing new technologies.

“Competition means that all players now must adhere to those rules, and perhaps new ones, to ensure reliability for all consumers,” EEI said.

In a recent letter to commissioner James Hoecker on the Federal Energy Regulatory Commission, EEI said that the voluntary system of complying with reliability rules “may no longer be adequate in the new competitive environment.”

“Many advocate that mandatory NERC operating and reliability standards most likely will be needed in order to maintain reliability regardless of how regional market structures evolve,” the EEI letter dated Oct 10 said.