Power Production Quarterly Commission Update 1/14/2020 Powering our - - PowerPoint PPT Presentation

Quarterly Commission Update 1/14/2020

Powering our way of life.

Power Production

Department Purpose and Goal

Purpose: Provide safe, secure, economical, reliable and compliant power generation under the Priest Rapid Project Federal Energy Regulatory Commission (FERC) License Project No. 2114 while supporting the Wanapum relationship. Goal: Execute the aforementioned tasks while championing a culture of safety and operational excellence with continuous focus on the guiding values of safety, innovation, service, teamwork, respect, integrity, and heritage.

Acronym List

• PP – Power Production
• HPI – Human Performance Improvement
• NFPA 70e – National Fire Protection Association
• EAP – Emergency Action Plan
• ERTT – Emergency Response Team Training
• PRREIP – Priest Rapids Right Embankment Improvement

Project

• JHA – Job Hazard Analysis
• B2A’s – Budget to Actuals
• PPE – Personal Protective Equipment
• WMC – Wanapum Maintenance Center

2019 Q4 Review

• Safety Update
• Plant Performance
• Budget Review
• Schedule Adherence / Maintenance Health update
• Maximo Update
• Capital Projects
• PP Strategic Deployment
• Personnel
• 2020 Q1 Forecast

Safety Update

10 20 30 40 50 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Job Site Reviews

70% 75% 80% 85% 90% 95% 100% 105% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Safety Meeting Attendance

Target Actual

Safety Update

• Q4 Recordable incidents: 2 – PPE use on lathe and back strain
• Q4 Vehicle incidents: 1
• Renewed emphasis on job site reviews
• Goal: increase quality of job site reviews, recognize good

behavior/conditions, suggestions for areas of improvement

• Renewed emphasis on safety action items
• Goal: reduce time to resolve

60 65 70 75 80 85 90 95 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Project Availability

PR Actual Wan Actual Project Actual Target

Plant Performance

• P09 outages due to oil

head vibration

• Other minor unit
• utages (P03, P04)

P01, P07 Exciter fires

• W01 runner weld
• P01 overhaul ext.

Plant Performance

2 4 6 8 10 12 14 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Forced Outage Percentage

PR Actual Wan Actual Project Actual Target

2019 B2A’s thru 11/31

Capital O&M

Budget $25,609,386 Directs $23,189,755 Actual $10,567,433 $15,433,495 Remain $15,041,953 $7,756,260 Budget $4,226,729 Labor $22,147,961 Actual $4,460,891 $19,874,946 Remain $234,162 $2,273,051 Budget $29,836,115 Total $45,337,716 Actual $15,028,324 $35,308,441 Remain

$14,807,791 $10,029,275

Schedule Adherence

• 2977 WO (PR)
• Priorities
• Break in work
• Causes

Challenges

• Converting causes

into corrective actions

• Planning for the

unexpected

Maintenance Health (PR)

• New metrics at PR
• Provide additional

context for schedule adherence – a more complete picture 2020 Plans

• Spread processes &

practices to Wanapum & Maintenance Center

Maximo Update

• Maintenance Health
• Scheduling Software - Akwire
• Resource loaded schedules
• Plants, engineering, environmental affairs, cultural
• Continued Integration
• Human Capital Management System
• Planning
• Maximo version upgrade
• Inventory upgrades

Capital Project Update

• Priest Rapids Right Embankment Improvement Project
• Bids Opened 11/20/2019
• Construction cost: $33.4M vs. $46.2M engineer’s estimate
• IMCO – innovative company; completed PR Hatchery Renovation
• Other Notable Projects:
• PR/Wan Station Service & Substation Rehab - $10M through 2024
• PR/Wan control room renovations – planning; ~$1M/plant

Strategic Deployment: 2020 Goals

• Align all PP groups toward same goals
• Align goals with District mission and

initiatives

• Plan to measure progress
• Ensure staff availability and

commitment

Strategic Deployment: 2020 Goals

Goals established

• Safety
• Improve quality in hazard recognition
• From Job Hazard Assessment creation to Job Site Review
• Compliance
• Develop method to measure and report health
• Focus on leading indicators
• Operational Performance
• Lands & Rec, Fish & Wildlife, Hazardous Materials,

Operations: Move craft work into Maximo

• Develop & use resource loaded schedules (WWC & Akwire)
• Organizational Health
• Improve communication vertically & horizontally in PP
• Expect some performance improvements as well

Personnel

• Plant Manager
• Tony Hardenbrook – started Jan 7, 2019
• Priest Rapids Maintenance Supervisor
• Work Week Coordinator
• Maintenance Center resource plan
• Use of Maintenance Center resources after last

Wanapum upgrade.

2020 Q1 Forecast

• Plant Manager Tony Hardenbrook onboarding
• Plant Maintenance Supervisor selection & onboarding
• Preliminary plan for WMC resource deployment
• First steps in 2020 strategy deployment
• Assessing current state of quality in JHA/job briefs
• Akwire installed, scheduling process development
• Identify & organize craft work for Maximo
• Identify gaps for compliance reporting
• Communication improvements – begin in April
• PRREIP – contract award, partnering kickoff,

mobilization

Powering our way of life.

Grant PUD Commission Meeting – January 14, 2020

Grant PUD Lands & Recreation 2020 Q1 Business Report

Powering our way of life.

Departmental Purpose and Goal

• Lands & Recreation manages Priest Rapids Project lands and

recreation facilities, and provides company-wide real estate and geographic information system (GIS) services in alignment with Grant PUD’s safety, financial, and compliance goals.

2019 Business Review

• Safety
• Recordable incidents = 0
• Non-recordable incidents = 5
• Safety meeting attendance = 100%
• Job Briefs = 140
• Job Site Reviews = 20 (14%)
• Regulatory Review
• FERC filings by Grant PUD = 9
• Submitted on time = 9
• FERC approvals/orders = 8
• Summary/listing of major filings:
• GPUD submittal of Shoreline Management Plan,

FERC approval of Recreation Resources Management Plan

2019 Business Activities

• Real estate support - PR Right Embankment, Red

Rock 115kV, fiber build-out, office/storage space, etc.

• GIS support – Dam Safety field data collection,

Priest Rapids Right Embankment mapping, Wholesale Fiber mapping and analysis for grant applications, Fish & Wildlife mapping for publication, etc.

• Recreation facilities asset management
• Progress on Columbia Cliffs shoreline compliance
• Recreation Resources Management Plan

approved

• Shoreline Management Plan update filed
• Lot 51 resolution
• Recreation site O&M with successful

management of peak weekends, record crowds

• Shoreline management activities
• Crescent Bar lease management

2019 Spotlight:

Columbia Cliffs compliance

• More than 30

encroachments removed since October

• Temporary permit for

joint land-use authorization in development

• Long-term permit

pending FERC approval

• f revised land-use

classification

YTD budget-to-actuals (through November 30, 2019)

2019 Budget Actuals as of 11/30/2019 Budget Remaining % of Budget Spent Q4 YEP % Budget to YEP CAP $37,500 $531,081 ($493,581) 1416.22% $580,866 1548.98% O&M $1,321,606 $837,091 $484,515 63.34% $1,177,426 89.09% Labor $1,136,018 $1,044,408 $947,818 91.94% $1,136,109 100.01% TOTAL $2,495,124 $2,412,580 $938,752 96.69% $2,894,401 116.00%

2020 Q1 Forecast

Planned Projects & Work Activities

• Real estate support for large Power

Production/Power Delivery projects, property leases

• GIS-solutions for Dam Safety, Haz-

Mat, Fiber Expansion, Power Delivery projects

• Columbia Cliffs temporary joint-use

permit

• Public Recreation Development Plan

updates

• Power Production 2020 strategic

initiatives

• Preventative maintenance Maximo

work orders for rec sites

• Recreation monitoring surveys
• Encroachment monitoring

2020 Q1 Forecast

• Initiate capital

construction projects

• 2018 fire damage

Buckshot rebuild

• Priest Rapids Rec Area

dredging and erosion control

• Wanapum Upper

Boat Launch float replacement

• Crescent Bar office

trailer replacement

2020 Q1 Forecast

• Safety Goals
• Non-recordable incidents = 0
• Recordable incidents = 0
• Safety meeting attendance =

100%

• Regulatory Outlook
• Anticipated FERC filings = 0
• Anticipated FERC approvals = 1

(Shoreline Mgmt. Plan)

• Any regulatory threats or risks =

none known/anticipated

Questions?

GCPUD Enterprise Risk

Q1 2019 Update

Agenda

• Budget/Staffing
• Current Business
• Business Support

Budget / Staffing

GCPUD ERM: Staffing Changes

Enterprise Risk Manager (1)

• Paul Dietz

– Transitions to role in January from Wholesale Mkt Supply – Dual support role on special projects

• Devon Williams

– Departure in December

Risk Analyst (2)

• Leah Knopp
• Karrie Buescher

– Moving to EPMO in January

GCPUD ERM: Budget Nov

KEY DETAILS The Risk Department budget is dominated by insurance premiums. Based on Nov 2019 Actuals

Budget Actuals Variance Fav/(Unfav) Enterprise Risk 57,592 14,016 43,576 Insurance Risk 2,048,425 1,782,520 265,905 Sub - Total 2,106,017 1,796,536 309,481 Budget Actuals Variance Fav/(Unfav) Enterprise Risk 148,765 134,314 14,451 Insurance Risk 203,364 188,486 14,878 Sub - Total 352,129 322,800 29,329 Total 2,458,146 2,119,336 338,810 Labor O&M Directs

Current Business

GCPUD ERM: Current Business

Annual Insurance Renewal

• 2019-2020 final insurance premiums - $2,140,712
• Loss Control appreciation luncheon for Hydro efforts

is being scheduled sometime in January.

• Updates on Loss Control recommendations will be

submitted to lead underwriter this month.

GCPUD ERM: Current Business

Central Ephrata Substation Claim

• $4,500,000 – Gross Settlement from Insurance Carriers
• $250,000 – Deductible
• $4,250,000 – Net Proceeds

Middle Office Control Design

• Cross discipline approach
• Segregation of duties/best practices
• Nearly complete, implementation plan under-development

Business Support

GCPUD ERM: Business Support

Wholesale Model Review

• First Phase - Audit of Model (Complete)
• Second Phase – Use, Documentation,

Reporting

Forward Price Curve Review

• Review of Best Practices/Alternatives

Energy Risk Policy Update

• Completed
• Wholesale Mkt Supply
• Risk and FP&A
• For Commission review in January

GCPUD ERM: Business Support

Rate 17

• Confirm risk-based approach
• Address all queries

Slice Strategy Support

• Credit/Contract Review

KEY DETAILS Commercial Support is a key function of GCPUD’s Risk business model.

Thank you

grantpud.org

Powering our way of life.

Gene Austin

Compliance Manager

Reliability Compliance

January 14, 2020

Reliability Compliance Program The Year in Review - 2019 The Year Ahead - 2020

The Year in Review – 2019

2019 Objectives − Restore Confidence and Effectiveness − Establish RC Program Foundation − Validate District Compliance Posture

The Year in Review – 2019

Foundational Accomplishments: − Assessed Program; Planned Improvements − Defined Reliability Organizational Structure − Rebuilt how we Manage Compliance Information − Restored Compliance Tools to Track and Notify − Clarified Roles and Responsibilities − Trained/ Developed RC Staff − Revamped the NERC-CIP Compliance Program − Fortified Regulator Relationships − Restored Confidence in RC Workgroup

March 28, 2019

Reliability O y Org Structure

Engineering – PP, PD Operations – PP, PD Craft & Technical Shops

CIP Standard Owners/ SMEs CIP Program Lead O&P Standard Owners/ SMEs Chief Compliance Officer/ CFO Reliability Council CIP Sr. Manager/ COO Compliance Manager/ PCC

* Position required by Regulator

*/

Cyber Security Physical Security Network Operations System Support; EMS GMS EACM PACS HelpDesk HR, Training Procurement

GCPD Reliability Council

The Reliability Council provides executive leadership, direction,

accountability, and oversight for Reliability Compliance Program.

The Council establishes the expectations and governs the

• rganization so as to meet or exceed Regulatory obligations with:
• NERC Reliability Standards, and
• NERC-CIP Standards (Cyber and Physical Security)

GCPD Reliability Council

…provides executive leadership, direction, accountability, and oversight for Reliability Compliance Program…

Reliability Council

− Chief Compliance Officer*/ CFO − CIP Sr. Manager*/ COO − Chief Customer Officer − Power Production, Managing Director − Power Delivery, Managing Director − Chief Technology Officer − Primary Compliance Contact* (Chair)

Members

− Jeff Bishop − Rich Wallen − Dave Churchman − Ty Ehrman − Jeff Grizzel − Derin Bluhm − Gene Austin

* Position required by Regulator

Applicable NERC

Standards & Requirements

O&P Reliability Standards 70

Requirements 924

CIP Standards 12

Requirements 67

2019 Emphasis to Assure Compliance

Potential Non-Compliance Violations

Self-Reported PNCs are:

˗ 1 of 8 means of Violation Discovery ˗ Least ‘Aggravated’ form of Discovery ˗ Builds Credibility with Regulator

Open PNC’s – 13

˗ ( 2) Audit Findings – 2017 ˗ ( 1) Self-Report – 2018 ˗ (10) Self-Report – 2019 ˗ ( 2) Identified and under RC review

10

‘Simplify, Standardize, and Single Source’

11

CIP Responsibilities – who does what?

12

R4.1 – A Process to Authorize Access (electronic and Physical) based on need: −Electronic access; −Unescorted Physical Access into PSPs −Access to BES Cyber System Information R4.2 – Verify at least once each calendar quarter that individuals with active electronic access or unescorted physical access have authorization records

• R5. – Access Revocation base on Termination, Reassignment, or Transfer

CIP-004 “Cyber Security — Personnel & Training”

PURPOSE: To minimize the risk of impacting the Reliability of the Bulk Electric System, from individuals with access to Cyber Systems, through Personnel Risk Assessment, Training, and Security Awareness…

Old Process

13

Today’s Process…

Reliability Compliance Program The Year Ahead - 2020

Routine Compliance Activities Continued RC Program Enhancements

AUDIT Readiness

2020 Triennial NERC Audit

Audit Schedule:

• Preparation of Evidence –

Commenced 1/7/2020

• Audit Prep Support Jan 27th – Aug 21st
• Submit Audit Evidence – July 1st
• WECC Off-site review of doc and

evidence/ Data Requests

• Phone interviews with staff prior to the

start of the Audit

• Off-site Doc Review – Aug. 10th
• On-site interviews with staff, and

inspection of facilities – Aug. 21st

• Audit Closeout and Initial Findings
• Final Report; Public and non-Public –

September 2020 Determining the Audit Scope

Audit Readiness Schedule

9/1/2019 8/31/2020 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020

3/2/2020 2019 Self-Certification 8/10/2020 - 8/21/2020

Triennial NERC Audit

1/1/2020 Low Impact BES Cyber Systems Compliance CIP-003-7 1/6/2020 - 2/29/2020 Self-Cert Preparation 9/1/2019 - 12/31/2019 CIP Procedure Rewrite & Other Program Enhancements 1/7/2020 - 7/17/2020 NERC Audit Readiness 7/17/2020 Submit Audit Docs 7/1/2020 Supply Chain Management CIP-013-1 3/5/2020 Inherent Risk Assessment 1/7/2020 Audit Kickoff Mtg 1/27/2020 - 8/21/2020

Compliance Assessment and Audit Support GDS Associates

5/1/2020 Audit Notice

Reliability Compliance

Budget to Actual

Through 11/30/2019