Electric Reliability Organization Enterprise Strategic Plan 2013-2016This plan summarizes the ERO Enterprise’s mission, vision, values and goals; and provides strategic direction and priorities for 2013 and beyond. The plan will be reviewed, revised, and supplemented every two years or more frequently as needed. This plan was expanded and updated from 2012 to provide more transparency in the setting of goals for the ERO Enterprise and to accommodate the 2013 - 2016 planning period...Approved by the NERC Board of Trustees on May 9, 2013Electric Reliability OrganizationEROThe ERO Enterprise is a collaborative, international network comprised of the North American Electric Reliability Corporation (NERC) and the eight Regional Entities that brings together collective leadership, experience, judgment, skills, and technologies for ensuring the reliability of the North American bulk power system. North American Electric Reliability Corporation (NERC)NERC Board of TrusteesTo be the trusted leadership that ensures the reliability of the North American bulk power system by implementing relevant standards; promoting effective collaboration, cooperation, and communication around important risks to reliability; and utilizing expertise from the industry to produce outcomes that effectively manage risks to reliability.To ensure the reliability of the North American bulk power system. AccountabilityAccountability and Independence -- The ERO Enterprise will: * Be accountable for the public responsibilities delegated to it (a public trust obligation). * Be impartial, independent of special interests, and impervious to improper influence. * Balance its own independent regulatory judgment with the need to involve those with expert knowledge and experience in bulk power system reliability matters. IndependenceResponsivenessThe ERO Enterprise will act in a timely manner on the basis of unfolding events, emerging reliability risks, and the needs of industry and other stakeholders.FairnessFairness and Inclusiveness -- The ERO Enterprise will: * Be open and transparent. * Provide access for clear communication with stakeholders.* Ensure the legitimate interests of all parties, including costs imposed on registered entities, are duly considered and balanced in the development of policies and reliability standards, and in its programs and operations. * Conduct compliance and enforcement actions judiciously and in proportion to risk, paying regard to risks both potential and actual (realized).InclusivenessAdaptionAdaption and Innovation -- The ERO Enterprise will: * Continuously assess and prioritize its goals. * Embrace change and encourage new ideas that contribute to effective action. * Recognize the complex relationships and potential tensions between reliability objectives and business imperatives (including cost control). * Be nimble and artful in development of tools and dissemination of lessons learned and other information to respond to novel, unfamiliar, and emerging challenges InnovationExcellenceThe ERO Enterprise will: * Promote and rely upon the active participation of the best technical leaders from industry. * Strive for excellence and efficiency in all aspects of Enterprise activities.EfficiencyThe ERO Enterprise will make informed decisions regarding efficient use of its resources and resources shared by industry, with due consideration of the cost to industryIntegrityThe ERO Enterprise will: * Maintain the highest levels of professional and ethical conduct. * Be independent, impartial, fair, intellectually honest, truthful, and candid. * Be rigorous and thorough in all it does, doing the right things the right way. * Earn trust by treating every person with fairness and respect. * Work to meet or exceed expectations of stakeholders. SuccessFour Pillars for Success -- In order to succeed, the ERO Enterprise will emphasize: Reliabilityto address events and identifiable risks, thereby ensuring the reliability of the bulk power system through proper mitigation and remediation. Assuranceto provide assurance to the public, industry, and government for the reliable performance of the bulk power system. Learningto promote learning and continuous improvement of operations and adapt to lessons learned for bulk power system reliability.Risk-based Approachto focus attention, resources and actions on issues most important to bulk power system reliability.Reliability StandardsDevelop clear, reasonable and technically sound mandatory reliability standards in a timely and efficient manner. 1These standards establish threshold requirements for ensuring the bulk power system is planned, operated, and maintained in a manner that minimizes risks of cascading failures, avoids damage to major equipment, or limits interruptions of bulk power supply.Timeliness, Clarity & ResponsivenessStandards are timely, clear and responsive to reliability and security risks.1.aKey deliverables include: Complete standards development governance and process reforms as identified in 2012 resolutions by the NERC Board of Trustees.Deliverable 1.a.1NERC Board of TrusteesQuality & Results-Based CriteriaEnsure all existing and new standards meet quality and results-based criteria within five years with subsequent review every five years thereafterDeliverable 1.a.2Gap AnalysisEvaluate significant bulk power system events (Category 3 and above) to identify gaps in standards and address any gapsDeliverable 1.a.3Bulk Power SystemsRisk Profile & Standards AssessmentDevelop a bulk power system risk profile and assess standards compared to the profile, address the most important risk gapsDeliverable 1.a.4High-RisksAddress all high-risks designated for control by a standard within one year or two years if technical study is requiredDeliverable 1.a.5FERC DirectivesAddress all new FERC directives within one year or two years if technical study is required; close existing directives by 2015 (by filing or negotiated resolution)Deliverable 1.a.6FERCPracticality & Cost-EffectivenessStandards are practical to implement and cost effective.1.bKey deliverables include: New StandardsFacilitate smooth transition of new standards Deliverable 1.b.1(e.g., CIP Version 5)Standards Application GuidesConsolidate to a common set of application guides or RSAWs for all standardsDeliverable 1.b.2Requirements RetirementIdentify and file requirements to be retired (Paragraph 81 Phase 2)Deliverable 1.b.3Cost Effectiveness AssessmentExplore options for assessing the cost effectiveness of appropriate reliability standardsDeliverable 1.b.4EnforcementBe a strong enforcement authority that is independent, without conflict of interest, objective and fair.2The ERO retains and refines its ability to use standards enforcement when warranted and impose penalties and sanctions commensurate with risk.Registration & CertificationRegister entities commensurate with risk and ensure all key reliability entities are certified.2.aThe ERO registers entities commensurate with risk to the bulk power system and ensures all key reliability entities are certified to have essential capabilities.Key deliverables include: BES ExceptionsDevelop and implement BES exception processDeliverable 2.a.1Certification ProgramEvaluate certification program for sufficiency and effectiveness, modify as neededDeliverable 2.a.2Registration Framework & CriteriaDevelop framework and criteria for registration based on risk to the bulk power systemDeliverable 2.a.3Registration, Information & MethodsDevelop common and consistent registration processes, information systems and methods among regionsDeliverable 2.a.4AccountabilityHold industry accountable for violations2.bThe ERO holds industry accountable for violations that create serious risk to the bulk power system; resulting actions are timely and transparent to industry.Key deliverables include: Compliance ReformDevelop and implement Reliability Assurance Initiative (compliance reform) which includes the objective of improving the efficiency and effectiveness of NERC and Regional Entity operations, reducing unnecessary costs of compliance on registered entities while, in each case, ensuring reliability objectives are achieved.Deliverable 2.b.1NERCNERC Regional EntitiesCaseload & MitigationDevelop and implement new caseload and mitigation aging curves and monitor caseload and mitigation performanceDeliverable 2.b.2Enforcement StrategiesDevelop and implement enforcement strategies based on Reliability Assurance InitiativeDeliverable 2.b.3MonitoringMonitor registered entities and standards requirements commensurate with the risk and role of each type of registered entityDeliverable 2.cThe ERO monitors registered entities and standards requirements commensurate with the risk and role of each type of registered entity.Compliance CulturePromote a culture of compliance which is driven by a culture of reliability excellenceaddressing reliability risks across the industry. 3The ERO works with industry to identify standards, procedures, practices and controls to address reliability risks.Procedures & Programs[Ensure that] industry has effective procedures and programs to monitor, detect, correct, report, and prevent compliance, reliability, and security issues.3.aKey deliverables include: Compliance ReformDevelop and implement Reliability Assurance Initiative (compliance reform) Deliverable 3.a.1(same as 2b)Internal ControlsMake effective internal controls models and information available to industryDeliverable 3.a.2Learning PeriodsInitiate compliance phase-in learning periods for new standardsDeliverable 3.a.3Processes & DiscretionUse efficient processes and proportional exercise of discretion to verify that compliance objectives are metDeliverable 3.bThe ERO uses efficient processes and proportional exercise of discretion to verify that compliance objectives are met by industry.Key deliverables include: FFTContinue to expand use of discretion through Find, Fix, and Track (FFT)Deliverable 3.b.1Compliance ReformDevelop and implement Reliability Assurance Initiative (compliance reform) Deliverable 3.b.2(same as 2b)Identification & PrioritizationIdentify the most significant risks to reliability. 4The ERO identifies and prioritizes reliability risks, facilitates effective solutions and interventions, and monitors results.CriteriaIdentify and prioritize risks based on reliability impacts, cost/practicality assessments, projected resources, and emerging issues.4.aRisks are identified and prioritized based on reliability impacts, cost/practicality assessments, projected resources, and emerging issues.Key deliverables include: RISC & HILF IssuesContinue to mature RISC and develop risk profile to include HILF issuesDeliverable 4.a.1Annual ReportPrepare an annual state of reliability reportDeliverable 4.a.2High-Priority RisksDevelop project plans and business case assessments for high priority risks; implement or facilitate initiatives to address high priority risks Deliverable 4.a.3(see 5a first bullet)AnalysisConsistently analyze events and system performance4.bEvents and system performance are consistently analyzed for sequence, cause, and remediation to identify reliability risks and trends, and to inform standards, compliance, and other programs. Industry is well informed of system events, emerging trends, risk analysis, lessons learned and expected actions.Key deliverables include: Gap AnalysisAnalyze significant events to identify gaps in standards, compliance effectiveness, registration, and risk controls effectivenessDeliverable 4.b.1System Event ReportsMake all bulk power system event reports available to industry through secure portalDeliverable 4.b.2Lessons Learned & RecommendationsProvide lessons learned and recommendations from events and identified risksDeliverable 4.b.3Databases & Cause CodesMerge event driven databases and cause codes into one (e.g., event analysis, TADS, GADS, relay mis-operations)Deliverable 4.b.4MitigationBe accountable for mitigating reliability risks. 5The ERO works with industry stakeholders and experts to ensure the mitigation of known risks to reliability.TrackingTrack industry accountability for critical reliability and security recommendations5.aThe ERO is tracking industry accountability for critical reliability and security recommendations.Key deliverables include: Risk Control InitiativesManage risk control initiatives to be completed by ERO and coordinate other initiatives with industry (e.g., relay misoperations, situational awareness, human error, cyber attack)Deliverable 5.a.1Recommendations TrackingDevelop and deploy a recommendations tracking systemDeliverable 5.a.2Evaluation & ImprovementEvaluate and continuously improve industry security posture5.bIndustry is aware of and is effectively addressing security vulnerabilities and threats.Industry security posture is being evaluated and continuously improved. During crisis situations, ERO facilitates sharing of information among industry, Regions, and government.Key deliverables include: Security Maturity Model AssessmentsExpand security maturity model assessments to be widely accessible across industryDeliverable 5.b.1Security RecommendationsIssue and track security recommendations to protect the bulk power system Deliverable 5.b.2Bulk Power Systems(related to 5a second bullet)Information Sharing, Analytics & AnalysisExpand the use and value of security threat and vulnerability information sharing, analytics, and analysisDeliverable 5.b.3Security ExercisesImplement periodic wide area security exercises (e.g., GridEx)Deliverable 5.b.4Security ClearancesIncrease security clearances available to industry and facilitate access to secured briefings through local fusion centersDeliverable 5.b.5Reliability CulturePromote a culture of reliability excellence. 6The ERO facilitates a learning environment throughout the industry through event causal analysis, communication of lessons learned, tracking of recommendations, and implementation of best practices.Reliability Information[Serve as] a leading resource to industry and policy makers for reliability information6.aInustryPolicy MakersERO is a leading resource to industry and policy makers for reliability information.Key deliverables include: Reliability AssessmentsPublish quality reliability assessment reports (LTRA, seasonal and special reports)Deliverable 6.a.1Reliability GapsPromote effective actions as needed to address identified gaps in future reliabilityDeliverable 6.a.2Accuracy & Sharing[Ensure that] reliability models and data accurately represent system behavior and are shared among reliability entities.6.bReliability EntitiesReliability models and data accurately represent system behavior and are shared among reliability entities.Key deliverables include: Data & ModelingAssess data and modeling needs and develop recommendations to ensure quality planning and operating data/models are available to registered entities across each interconnectionDeliverable 6.b.1Registered EntitiesEvent DisturbancesEvaluate event disturbances using phasor measurements and other methods to assess sufficiency of data and modelsDeliverable 6.b.2Coordination, Collaboration & Process ImprovementEnsure effective coordination, collaboration and process improvements.7Improve transparency, consistency, quality and timeliness of results; operate as a collaborative enterprise; and improve efficiencies and cost effectiveness. The ERO accomplishes this through working with the Regional Entities and registered entities to ensure effective coordination, collaboration and process improvements. The ERO communicates expectations clearly and fosters collaboration to deliver important results in advancing system reliability. The ERO engages the support and expertise of stakeholders, is an efficient steward of resources, and leverages information systems to create efficiencies and process controls.TalentAcquire, engage, and retain highly qualified talent7.aThe ERO acquires, engages, and retains highly qualified talent suited to the mission.Key deliverables include: Hiring & RetentionImplement employee climate surveys and succession planning and promote favorable hiring and retention of ERO staffsDeliverable 7.a.1Qualifications & TrainingDevelop ERO qualifications requirements for auditors and other key positions across the ERO and implement training as neededDeliverable 7.a.2AuditorsInternal Risks & ProcessesManage internal risks and ensure that processes are effective, efficient, and continuously improved.7.bThe ERO internal risks are understood and managed; ERO processes are effective, efficient, and continuously improved.Key deliverables include: Applications, Platform & DatabaseDevelop test and deploy ERO enterprise applications, platform and databaseDeliverable 7.b.1Self-Assessment & Audit RecommendationsDevelop five-year ERO self-assessment and close all recommendations from three-year assessment and FERC auditDeliverable 7.b.2Risk Management ProgramImplement an ERO-wide internal risk management programDeliverable 7.b.32013-05-092016-12-312013-08-19http://www.nerc.com/gov/bot/FINANCE/Documents/ERO%20Enterprise%20Strategic%20Plan%202013-2016%20FINAL%2005%2009%2013.pdfOwenAmburOwen.Ambur@verizon.net