Standard Authorization Request Form

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When cmpleted, email t: gerry.cauley@nerc.net Standard Authrizatin Request Frm Title f Prpsed Standard Frequency Respnse, versin 1 Request Date 4/1/06 SAR Requestr Infrmatin Name Dn McInnis (Terry Bilke as substitute fr Mr. McInnis) Primary Cntact Terry Bilke SAR Type (Put an x in frnt f ne f these selectins) x New Standard Revisin t existing Standard Telephne (317) 249-5463 Withdrawal f existing Standard Fax (317) 249-5994 E-mail tbilke@midwestis.rg Urgent Actin Purpse/Industry Need (Prvide ne r tw sentences) There is evidence f cntinuing decline in frequency respnse in the three Intercnnectins ver the past 10 years, while it shuld be increasing with increasing lad and generatin. The Intercnnectins may have sufficient frequency respnse fr nrmal peratins, hwever, it is nt knwn hw this respnse is dispersed r at what pint it will pse a reliability risk. The prpsed standard s intent is t ensure frequency f the Intercnnectins remains abve under-frequency lad shedding setpints during transient perid fllwing the sudden lss f generatin n the Intercnnectins. By addressing the requirements fr cntrl during the secnds timeframe, this prpsed standard crdinates with and cmplements the Balance Resurces and Demand standards, which addresses Intercnnectin frequency cntrl generally 5 minutes and lnger. (The whitepaper submitted with the riginal Frequency Respnse SAR prvides the ratinale and justificatin fr this standard.) SAR-1

Reliability Functins The Standard will Apply t the Fllwing Functins (Check bx fr each ne that applies by duble clicking the grey bxes.) Reliability Ensures the reliability f the bulk transmissin system within its Reliability area. This is the highest reliability authrity. Balancing Interchange Planning Resurce Planner Planner Service Prvider Owner Operatr Distributin Prvider Generatr Owner Generatr Operatr Purchasing- Selling Entity Market Operatr Lad-Serving Entity Integrates resurce plans ahead f time, and maintains lad-interchangeresurce balance within its metered bundary and supprts system frequency in real time Authrizes valid and balanced Interchange Schedules Plans the bulk electric system Develps a lng-term (>1year) plan fr the resurce adequacy f specific lads within a Planning area. Develps a lng-term (>1 year) plan fr the reliability f transmissin systems within its prtin f the Planning area. Prvides transmissin services t qualified market participants under applicable transmissin service agreements Owns transmissin facilities Operates and maintains the transmissin facilities, and executes switching rders Prvides and perates the wires between the transmissin system and the custmer Owns and maintains generatin unit(s) Operates generatin unit(s) and perfrms the functins f supplying energy and Intercnnected Operatins Services The functin f purchasing r selling energy, capacity and all necessary Intercnnected Operatins Services as required Integrates energy, capacity, balancing, and transmissin resurces t achieve an ecnmic, reliability-cnstrained dispatch. Secures energy and transmissin (and related generatin services) t serve the end user SAR-2

Reliability and Market Interface Principles Applicable Reliability Principles (Check bxes fr all that apply by duble clicking the grey bxes.) 1. Intercnnected bulk electric systems shall be planned and perated in a crdinated manner t perfrm reliably under nrmal and abnrmal cnditins as defined in the NERC Standards. 2. The frequency and vltage f intercnnected bulk electric systems shall be cntrlled within defined limits thrugh the balancing f real and reactive pwer supply and demand. 3. Infrmatin necessary fr the planning and peratin f intercnnected bulk electric systems shall be made available t thse entities respnsible fr planning and perating the systems reliably. 4. Plans fr emergency peratin and system restratin f intercnnected bulk electric systems shall be develped, crdinated, maintained and implemented. 5. Facilities fr cmmunicatin, mnitring and cntrl shall be prvided, used and maintained fr the reliability f intercnnected bulk electric systems. 6. Persnnel respnsible fr planning and perating intercnnected bulk electric systems shall be trained, qualified and have the respnsibility and authrity t implement actins. 7. The security f the intercnnected bulk electric systems shall be assessed, mnitred and maintained n a wide area basis. Des the prpsed Standard cmply with all f the fllwing Market Interface Principles? (Select yes r n frm the drp-dwn bx by duble clicking the grey area.) 1. The planning and peratin f bulk electric systems shall recgnize that reliability is an essential requirement f a rbust Nrth American ecnmy. Yes 2. An Organizatin Standard shall nt give any market participant an unfair cmpetitive advantage.yes 3. An Organizatin Standard shall neither mandate nr prhibit any specific market structure. Yes 4. An Organizatin Standard shall nt preclude market slutins t achieving cmpliance with that Standard. Yes 5. An Organizatin Standard shall nt require the public disclsure f cmmercially sensitive infrmatin. All market participants shall have equal pprtunity t access cmmercially nnsensitive infrmatin that is required fr cmpliance with reliability standards. Yes SAR-3

Detailed Descriptin (Prvide enugh detail s that an independent entity familiar with the industry culd draft, mdify, r withdraw a Standard based n this descriptin.) The prpsed standard will require r prvide the fllwing: A technically-sund calculatin and reprt f Balancing and Intercnnectin frequency respnse. Flexibility t meet specific needs f each Intercnnectin. Will require Balancing and Reginal analysis if respnse is measurably belw the Intercnnectin nrm. An bjective measure f the Balancing s and Intercnnectin s sub-minute respnse t changes in frequency. The standard will accmmdate bth fixed and variable bias. Will nt mandate a given amunt f frequency respnse, but will prvide lng-term Intercnnectin target levels fr average respnse t frequency excursins, perfrmance belw which triggers Balancing and Reginal Reliability Organizatins evaluatin and analysis. - Reasnable time t make crrectins, if analysis shw a Balancing needs additinal frequency respnse. Balancing Authrities t perate their autmatic generatin cntrl functin n tie-line frequency bias. Balancing Authrities t perfrm frequency respnse characteristic surveys when called fr by NERC. Generatr wners t equip generating units with nameplate ratings f 10 MW r greater, with a gvernr capable f prviding immediate and sustained respnse t frequency deviatins. - Gvernrs shall prvide drp characteristics within a specified range (t be determined during standard drafting. - Gvernrs shall, as a minimum, respnd t frequency deviatins with a deadband nt t exceed a specific limit (t be determined during standard drafting). Generatr wners seeking exceptin t the gvernr requirements t prvide specific infrmatin (t be determined during standard drafting) t their Balancing and Reginal Reliability Organizatin. SAR-4

Related Standards Standard N. BAL-001-0 thrugh BAL- 006-0 Balance Resurces and Demand draft standards MOD-013-0 Explanatin Balancing Standards, versin 0 Balancing Resurces and Demand BAL-007 thrugh BAL-012 draft standards, are in standards develpment prcess The prpsed standard wuld enable better input data t the mdeling standards. Related SARs SAR ID MOD-027 Explanatin Verificatin and Status f Generatr Frequency Respnse. The prpsed standard wuld prvide a mechanism t validate cmpliance with MOD-027. The prpsed standard culd als prvide a means t achieve MOD-027 (if the Balancing implements n n-line measurement f generatr frequency using SCADA data). Reginal Differences Regin ECAR ERCOT FRCC MAAC MAIN MAPP NPCC SERC SPP WECC Explanatin Single Balancing Intercnnectins calculate Frequency Respnse based n the change in generatin (r lad) rather than Tie-Line deviatin (ERCOT). SAR-5

SAR-6