Implementation Plan Project Alignment of Terms

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Revisions to Defined Terms in the NERC Glossary of Terms Used in Reliability Standards The drafting team proposes modifying the following Glossary of Terms definitions: <Term> <Definition> Blackstart Resource A generating unit(s) and its associated set of equipment which has the ability to be started without support from the System or is designed to remain energized without connection to the remainder of the System, with the ability to energize a bus, meeting the Operator s restoration plan needs for real Real and reactive Reactive power Power capability, frequency and voltage control, and that has been included in the Operator s restoration plan. Bulk Power System Bulk- Power System: (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and (B) electric energy from generation facilities needed to maintain transmission system reliability. The term does not include facilities used in the local distribution of electric energy. (Note that the terms Bulk-Power System or Bulk Power System shall have the same meaning.) Cascading The uncontrolled successive loss of system System elements Elements triggered by an incident at any location. Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies. Distribution Provider Provides and operates the wires between the transmission system and the end-use customer. For those end-use customers who are served at transmission voltages, the Owner also serves as the Distribution Provider. Thus, the Distribution Provider is not defined by a specific voltage, but rather as performing the Distribution distribution function at any voltage. 1

Element Any electrical device with terminals that may be connected to other electrical devices such as a generator, transformer, circuit breaker, bus section, or transmission line. An element Element may be comprised of one or more components. Generator Operator The entity that operates generating Facility(ies) unit(s) and performs the functions of supplying energy and Interconnected Operations Services. Generator Owner Entity that owns and maintains generating Facility(ies)units. Interchange Authority The responsible entity that authorizes the implementation of valid and balanced Interchange Schedules between Balancing Authority Areas, and ensures communication of Interchange information for reliability assessment purposes. Interconnected Operations Service A service (exclusive of basic energy and transmission servicesservices) that is required to support the reliable Reliable operation Operation of interconnected Bulk Electric Systems. Interconnection A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control. When capitalized, any one of the four major electric system networks in North America: Eastern, Western, ERCOT and Quebec. Load-Serving Entity Secures energy and transmission service Service (and related Interconnected Operations Services) to serve the electrical demand and energy requirements of its end-use customers. Planning Authority The responsible entity that coordinates and integrates transmission facility Facilities and service plans, resource plans, and protection Protection systemssystems. September 2015 2

Point of Receipt A location that the Service Provider specifies on its transmission system where an Interchange Transaction enters or a Generator generator delivers its output. Reactive Power The portion of electricity that establishes and sustains the electric and magnetic fields of alternatingcurrent equipment. Reactive power Power must be supplied to most types of magnetic equipment, such as motors and transformers. It also must supply the reactive losses on transmission facilities. Reactive power Power is provided by generators, synchronous condensers, or electrostatic equipment such as capacitors and directly influences electric system voltage. It is usually expressed in kilovars (kvar) or megavars (Mvar). Real Power The portion of electricity that supplies energy to the loadload. Reliability Coordinator The entity that is the highest level of authority who is responsible for the reliable Reliable operation Operation of the Bulk Electric System, has the Wide Area view of the Bulk Electric System, and has the operating tools, processes and procedures, including the authority to prevent or mitigate emergency operating situations in both next-day analysis and real-time operations. The Reliability Coordinator has the purview that is broad enough to enable the calculation of Interconnection Reliability Operating Limits, which may be based on the operating parameters of transmission systems beyond any Operator s vision. Reliability Standard A requirement, approved by the United States Federal Energy Regulatory Commission under this Section 215 of the Federal Power Act, or approved or recognized by an applicable governmental authority in other jurisdictions, to provide for reliable operation [Reliable Operation] of the bulk-power system [Bulk- Power System]. The term includes requirements for the operation of existing bulk-power system [Bulk- Power System] facilities, including cybersecurity protection, and the design of planned additions or modifications to such facilities to the extent necessary to provide for reliable operation [Reliable Operation] of the bulkpower system [Bulk- Power System], but the term does not include any requirement to enlarge such facilities or to construct new transmission capacity or generation capacity. September 2015 3

Reliable Operation Operating the elements of the bulk-power system [Bulk- Power System] within equipment and electric system thermal, voltage, and stability limits so that instability, uncontrolled separation, or cascading failures of such system will not occur as a result of a sudden disturbance, including a cybersecurity incident, or unanticipated failure of system elements. Reserve Sharing Group A group whose members consist of two or more Balancing Authorities that collectively maintain, allocate, and supply operating reserves required for each Balancing Authority s use in recovering from contingencies within the group. Scheduling energy from an Adjacent Balancing Authority to aid recovery need not constitute reserve sharing provided the transaction is ramped in over a period the supplying party could reasonably be expected to load generation in (e.g., ten minutes). If the transaction is ramped in quicker (e.g., between zero and ten minutes) then, for the purposes of Disturbance disturbance Control control Performanceperformance, the Areas areas become a Reserve Sharing Group. Resource Planner The entity that develops a long-term (generally one year and beyond) plan for the resource adequacy of specific loads (customer demand and energy requirements) within a Planning Authority Areaarea. System Operating Limit The value (such as MW, MVarMvar, Amperesamperes, Frequency frequency or Voltsvolts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria. System Operating Limits are based upon certain operating criteria. These include, but are not limited to: Facility Ratings (Applicable applicable pre- and post-contingency equipment Equipment Ratings or facility Facility ratingsratings) Transient transient Stability stability Ratings ratings (Applicable applicable pre- and post-contingency Stability stability Limitslimits) Voltage voltage Stability stability Ratings ratings (Applicable applicable pre- and post-contingency Voltage voltage Stabilitystability) System system Voltage voltage Limits limits (Applicable applicable pre- and post-contingency Voltage voltage Limitslimits) September 2015 4

Customer 1. Any eligible customer (or its designated agent) that can or does execute a transmission service Service agreement or can or does receive transmission serviceservice. 2. Any of the following responsible entities: Generator Owner, Load-Serving Entity, or Purchasing-Selling Entity. Operator The entity responsible for the reliability of its local transmission system, and that operates or directs the operations of the transmission facilitiesfacilities. Owner The entity that owns and maintains transmission facilitiesfacilities. Planner The entity that develops a long-term (generally one year and beyond) plan for the reliability (adequacy) of the interconnected bulk electric transmission systems within its portion of the Planning Authority Areaarea. Service Provider The entity that administers the transmission tariff and provides Service to Customers under applicable transmission service Service agreements. Requested Retirements None Prerequisite Approvals It is requested that all proposed changes to the definitions in the NERC Rules of Procedure are approved contemporaneously with the proposed revisions to the Glossary of Terms. Additionally, it is requested that the proposed revisions do not take effect until the first day of the first calendar quarter beyond the date that the definitions are approved by applicable regulatory authorities, but no earlier than 07/01/2016. September 2015 5

Background The purpose of is to align the defined terms found in the NERC Glossary of Terms found in Reliability Standards and the Rules of Procedure. This project is necessary because currently there are defined terms that appear in both the Glossary and ROP that are inconsistent in substance and form. This causes industry confusion and may lead to inconsistent interpretation or application of the meaning of a term. Consistent definitions will enhance reliability because owners, users and operators of the BES, along with the ERO Enterprise, will have a clear and consistent understanding of the terminology used in the NERC Reliability Standards and ROP. Of the fifty-five (55) cross-over terms, forty (40) contain inconsistencies or differences in the definition narratives. To achieve consistency and alignment of these cross-over terms, the SDT is proposing revisions to twenty-six (26) Glossary terms and sixteen (16) ROP terms. Effective Date The definitions shall be added to the NERC Glossary of Terms used in Reliability Standards effective on the first day of the first calendar quarter beyond the date that the definitions are approved by applicable regulatory authorities, but no earlier than 07/01/2016, or in those jurisdictions where regulatory approval is not required, the definitions become effective on the first day of the first calendar quarter beyond the date this standard is approved by the NERC Board of Trustees, but no earlier than 07/01/2016, or as otherwise made effective pursuant to the laws applicable to such governmental authorities. September 2015 6