Enhancing NERC Compliance One Standard at a Time

The North American Electric Reliability Corporation (NERC) has established a mandatory reliability standard, “Facility Ratings” (FAC-008). This standard is designed to ensure that facility ratings used in the reliable planning and operation of the Bulk Electric System (BES) are determined and based on technically sound principles and actual system components. FAC-008 is crucial for determining system operating limits and the safe operation of the bulk power system.

The NERC compliance standard FAC-008 requires transmission and generation companies to develop a methodology for assessing BES facility ratings. The standard requires transmission and generation owners to review their BES transmission lines and transmission and generation BES assets to ensure that the limiting elements of the system are clearly understood and that the ratings reflect actual field conditions. Inaccurate ratings can compromise the reliability of the BES and pose safety risks to the public.

Importance of FAC-008

We are more dependent on electricity than ever, relying on the generation and transmission systems that produce and deliver this electricity across the country. It is paramount to ensure that the BES system is not only maintained but also operated to proper engineering standards. This remains a challenge for transmission and generation owners, as reconciling engineering design to new or historical as-built and field conditions can be cumbersome.

Nonetheless, it is a task that needs to be undertaken. Failure to comply with NERC standards carries financial consequences and loss of goodwill among regulators and customers. The consequences can vary depending on the duration and severity of the standard violation. Many consequences come in the form of monetary fines payable by the shareholders of the transmission or generation owner or the firm that maintains the facilities. More detrimental, however, is the damage to the reputation of those involved.

Verification of Existing Conditions and Ratings

Verifying existing conditions begins with the development of a well-thought-out and structured process. One effective method is outlined here: Assessment, Document, Solve, and Maintain. We will delve into each step in more detail.

Assessment

Assessments can come in many forms, but data gathering is a vital component. This includes record searches, reviewing construction documents, and conducting field surveys. Beyond GIS systems used for data management, technology such as drones and LIDAR can be helpful to map the current state of structures, conductors, and topography. Field surveys are particularly essential when data from historical as-built construction documents is missing. The method of data collection and collation by the field teams is critical. Utilizing mobile data collection applications for real-time data capture is practically required to ensure accuracy and efficiency.

Document - Verification of Equipment Ratings

The documentation and verification of equipment ratings require that asset owners maintain clear communication across all departments within organizations. The success of the project will not depend on one department or team but on the collective support of the entire asset organization.

The documentation step requires individuals to cross-reference key documents without prioritizing one document over another. All identified discrepancies are thoroughly investigated in the assessment phase and need to be documented correctly so facility ratings can be accurately revised. Communal data access and the use of common systems for data tracking facilitate the documentation process, allowing asset owners to address any data discrepancy across all platforms quickly.

Reviewers are urged to leverage technology to improve this process, including the burgeoning artificial intelligence (AI) practices. For those less familiar with those technologies, data integration tools and robust document management systems can help update rating documents effectively. Communication technologies are crucial for accelerating team engagement and managing remote data collection from the assessment phase, particularly in today’s hybrid work environment. Teams must establish clear channels with defined responsibilities for documenting equipment and maintenance discrepancies and preparing for their resolution.

By following these steps, organizations can compile accurate and efficient documentation and verification of equipment ratings, ultimately supporting the reliability and safety of the BES.

Solve - Development of Correction Solutions

Once the assets have been assessed, all discrepancies identified, and actual asset elements documented, the engineer must address any variations in ratings between the existing and corrected facility assets. In nearly all cases, this is done through engineering analysis and computational measures. In some extreme cases, asset owners may consider replacing a particular component to enhance a facility rating or avoid a facility derating.

As hundreds of asset components may be identified and dozens of discrepancies noted, it is imperative that the project team adopt a data management approach grounded in strong data governance and project management principles. Project management software can track progress, resources, and stakeholder engagement, while engineering modeling and simulation software helps identify the impacts of any facility rating change.

After confirming ratings or resolving discrepancies, the appropriate operating authority of the BES must be notified of the facility rating changes and alterations to any operating protocols or contingencies arising from such facility rating modification.

Maintain

Previous efforts become ineffective if they are not properly maintained or if new assets introduced to the grid lack rigorous oversight and data governance. It is important that asset owners regularly incorporate new survey results and changes in the BES asset landscape. Regular system patrols and the use of various monitoring technologies, such as sensors, LIDAR surveys, and drones, can help detect new issues or violations. Integrating BES asset data with other operational systems can improve access for engineering teams and provide a better analysis of the BES asset or element. New assets placed onto the system must undergo a thorough data review of records and field conditions to ensure that the final documented ratings reflect the actual asset elements.

CHA’s Verification Process at Work

A New York utility recently contracted CHA for engineering and survey services to perform a clearance evaluation on several transmission lines and produce a record set of drawings for their BES. The electrical system dates back to the 1920s, and available data was limited to lattice tower fabrication drawings, as well as plan and profile drawings. The utility plan and profiles are typically in the “as designed” condition and are not updated for facility replacement, maintenance, storm restorations, or other right-of-way modifications.

Due to their age, some BES lines predate current codes and standards, potentially resulting in higher thermal and mechanical loading than originally intended. This may create unknown compliance violations. CHA’s verification process will locate the potential violations, allowing the utility to re-rate, reconfigure, or rebuild the potential violating span(s). When complete in 2025, CHA’s verification of 165 circuit miles of high-voltage transmission lines will align with FAC-008 facility ratings that are accurate and confirm the utility is NERC compliant.

Future Considerations

As energy demand continues to rise, our grid must be ready to generate increased power output while meeting compliance standards. The grid is ever-changing, and many conditions are being imposed on the BES system with greater frequency than ever before. Renewable sources of energy are becoming more common, and we must be ready to integrate those systems into our current electrical grid in a manner that properly reflects the hosting capacity of that grid.

Changing climate conditions are impacting the reliability and resiliency of the BES assets. The changing nature of energy demand requires better and more efficient use of existing assets while considering potential grid expansion. Additionally, international events have a greater impact on local activities than previously noted, from supply chain disruptions to rising commodity prices. To mitigate these challenges, it will be important that the future US grid operate with as much self-reliance as possible. Compliance with NERC standards and maximizing the reliability and utilization of BES elements will enhance the value of these assets to ratepayers while minimizing cost impacts.

The CHA Solution

CHA is an innovative, full-service engineering, design, consulting, and program/construction management firm with over 1,900 professionals across seven major markets, including Utility Infrastructure. We have extensive experience working with investor-owned utilities nationwide, providing engineering and design for electric transmission lines, substations, distribution lines, gas facilities, and renewable energy facilities. We have established longstanding partnerships with our utility clients, often assisting in program and project implementation. Our solutions add value by facilitating prompt decision-making.

Our team includes experts with senior-level experience in utilities and regulatory environments, such as the Department of Public Service, Department of Environmental Conservation, and Agriculture and Markets (AGM). We have extensive experience in FERC proceedings and NERC standard development and compliance. This collective expertise offers a fundamental understanding of the operational and regulatory requirements for successful projects.

Contact CHA to further explore how our team can enhance your NERC compliance and support your utility infrastructure needs.