What NERC is
The North American Electric Reliability Corporation (NERC) is a non-governmental organization with statutory responsibility to regulate bulk power system users, owners, and operators through reliability standard creation and enforcement. In June of 2007 NERC was given the authority to make mandatory and enforce reliability standards for all users, owners, and operators of the bulk power system in the United States and the Canadian provinces of Ontario and New Brunswick.
NERC Regions
- FRCC - Florida Reliability Coordinating Council
- MRO - Midwest Reliability Organization
- NPCC - Northeast Power Coordinating Council
- RFC - ReliabilityFirst Corporation
- SERC - SERC Reliability Corporation
- SPP - Southwest Power Pool, RE
- ERCOT – Electric Reliability Council of Texas
- WECC - Western Electricity Coordinating Council
Long-term reliability assessments
NERC releases quarterly and annual long-term reliability assessments of the nation’s energy supply. It assesses both generation resources and transmission adequacy, identifying potential trouble spots based on economic forecasts and technology developments.
The economic recession of 2009 caused a drop in demand across the power system. Uncertainty over when and how quickly the market will recover has played a big role in outlining what challenges the bulk power system may face in the future.
Another factor that may significantly change the appearance of the bulk power system is the unprecedented change in generation fuel mix that is expected to occur in the near future.
The report also points out a correlation between increased amounts of renewables and increased need for new transmission lines. Successful integration of renewables into the power grid will require the development of an enhanced transmission system to fight line congestion.
Net Internal Demand and Annual Energy Growth
SOURCE: NERC 2009 Long-Term Reliability Assessment
What the stakes are
The reliable delivery of electricity to American households is a critical service. Electricity touches nearly every facet of our lives, from heating and cooling our homes to powering the nation’s industrial base. Making sure that the system is flexible and that enough generation capacity is available to meet ever-changing energy demand levels is a hefty task. By identifying trends and realizing their potential consequences, NERC is able to provide insight as to what users, owners, and operators of the bulk power system must do to keep the lights on.
AEP position
AEP believes long-term reliability assessments should play a key role in planning the nation’s electricity delivery system. In fact, AEP advocates longer-range planning than what is the industry norm, especially in assessing economic advantages of extra-high voltage transmission infrastructure and base load generation plants that will have useful lives stretching decades.
Long-term reliability assessments become increasingly critical as planning and siting become ever more complex at the federal and state levels.
