W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

WECC Section 4.9 Review Progress Report

Standing Committees MeetingOctober 14, 2015

Section 4.9 Review

• Work Group Members– Kristine Hafner, Chair, Board Member– Rob Kondziolka, MAC Chair– Doug Larson / Maury Galbraith, WIRAB– Shelley Longmuir, Governance Committee– Joe McArthur, Governance Committee– Gary Tarplee, MAC 4.9 Review Task Force, Chair– Steve Goodwill, WECC staff

• Team Leads:– Melanie Frye– Steve Goodwill– Dave Godfrey

W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

4.9 Review Work Group Flow and Timeline

Final ReportDecember

Clarify Relationships

Align Committees

Understand Costs

Membership and StakeholdersProvide Input

Membership and StakeholdersParticipate and Provide Formal

CommentsMembership and Stakeholders

Provide Formal Comments

BoardDiscussion and Approval

Integration and Final ReportWork Group – Lead

Aug - Dec

UrgencyIm

port

ance

Potential Issues

Draft ReportSeptember

4.9 WG Outreach and Stakeholder Opportunities for Comment

Open Meetings− January 14− February 3− March 3− March 9− April 10− May 19− June 22*− July 14− August 6− August 24

“Town Hall” Webinars− April 21− August 26

Progress Reports via the Web− February 13− March 20− July 15

Initial Draft Posted for Comment− June 1-18**

*4.9 Summit with MAC and committee chairs**Comment period extended at stakeholder request

4.9 Review Team Focus Areas

1. Relationship between MAC, members, WECC and the Board: Need to clarify respective responsibilities and accountabilities in all aspects of WECC’s business operations

2. Committee Roles, Scope and Structure : Need for greater alignment between the strategic priorities of the standing committees and WECC management and the translation of these priorities into operational plans

3. WECC’s Costs to Members: Need for options to stabilize and effectively manage WECC’s costs to members

Section 4.9 Report Recommendations

Expanding Partnership

Building Alignment

Gaining Clarity

Improving Cost-Effectiveness

1. Expanding Partnership

• Build on WECC’s history of collaboration, continue to develop trust and mutual respect within the community, and commit to working effectively together to achieve WECC’s mission of reliability assurance across the Western Interconnection.

• Elevate the visibility to the Board of the important technical work being performed by the member committees; provide regular opportunities for Board meeting reports

• Develop a strong working partnership between the committees and WECC via the rechartered Joint Guidance Committee and supporting strategic and operational planning processes.

• Supplement the current stakeholder review and comment period with informational webinars prior to final Board approval in order to ensure member input during the development of the Business Plan and Budget.

1. Expanding Partnership

• Adopt a transparent, multi-year planning process where the MAC, the Standing Committees/TEPPC, and WECC management collaborate to set and align priorities and develop supporting operational plans, subject to Board approvals and oversight

• Re-charter the Joint Guidance Committee to: − ensure alignment of priorities and work plans of the

committees with WECC’s strategic intent and priorities− identify cross functional/cross committee issues and

strategies to address them − improve overall communications within and between

committees

1. Expanding Partnership2. Building Alignment

Coor

dina

tion

Current Communication Flow

Board of Directors

WECC Staff

WECC Exec.

Deliverables

Input

OCJGC

PCC

MIC

TEPPC

MAC

Strategic policy input

Communication Flow with Re-chartered Joint Guidance Committee

Board of Directors

WECC Staff

WECC Exec.

Deliverables

Joint Guidance Committee

MAC

Tactical Input

Work Assignment

OC

PCC

MIC

TEPPC

Strategic technical

input

Re-chartered Joint Guidance Committee

• Joint Guidance Committee Composition:− 1 representative from each standing committee

(OC, MIC, PCC) and TEPPC (committee chair or vice-chair – to be determined)

− 1 WECC executive (appointed by CEO)− 1 MAC liaison

• Joint Guidance Committee Chair: WECC executive

• New JGC to update committee charter

Proposed WECC 3-year Planning Cycle

• Builds on the Reliability Assurance Model with a more structured and robust linkage to WECC’s operational priorities and activities

• Shift from annual plan to rolling three year operating plan to inform the annual Business Plan and Budget

• Identify key reliability challenges and organizational mandates to shape three year operating plans of Standing Committees/TEPPC and WECC staff

• Promote stakeholder input into the strategic planning process (e.g. MAC, WIRAB)

• Adopt the Responsibility and Accountability Matrix (RAM) to strengthen participants’ understanding of their responsibilities, accountabilities, and decision rights in WECC activities. A living document, the RAM will evolve with the needs of the WECC enterprise.

• Clarify and communicate to members and stakeholders the most productive interactions between the MAC, the Standing Committees, and TEPPC in providing needed input to WECC staff and the Board of Directors.

3. Gaining Clarity3. Gaining Clarity

Responsibility & Accountability Matrix

Responsibility & Accountability Matrix

A = ACCOUNTABLE/APPROVER“The Buck Stops Here”Ultimately answerable for the activity or decision; “yes” or “no” authority and veto power. Only one “A” can be assigned to an action. R = RESPONSIBLE/RECOMMEND“The Doer”Responsible for action/implementation. Responsibility can be shared. The degree of responsibility is determined by the individual with the “A”. C = CONSULT“In the Loop”To be consulted prior to a final decision or action. Implies “I’ll be informed and I’ll be heard.” Consultation does not imply control. I = INFORM“Keep in the Picture”Needs to be informed after a decision or action is taken.

• Each committee, sub-committee, work group and task force should revisit charter requirements for in-person meetings to maximize their value and effectiveness.

4. Improving Cost Effectiveness4. Improving Cost Effectiveness

Costs to Participate in WECC Committees

In 2014:• WECC had 57 committees, subcommittees, work

groups and task forces with 2,157 members • WECC hosted 68 committee, subcommittee, work

group and task force meetings• There were 2,162 attendees at those meetings

(excludes webinar participants)• It costs about $2.6 million in labor and $1.3 million

in travel expenses for those participants• There was another $3.9 to $4.7 million in “at

home” labor cost for WECC members

4. Improving Cost Effectiveness

• Establish an annual adjustable cap (%) based on historical increases and forecasts of budgetary needs to limit fluctuations and increases in assessments.

• Amend the reserve policy to include a balancing account to support this cap.

Budget and Assessment Volatility

2011 2012 2013 2014 2015 2016

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Annual Percent Change in Historic Budget and Assessments

BudgetAssessments

Budget Year

Perc

ent

Completing the 4.9 Review

W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C O U N C I L

Prepare WG Recommendations Finalize Report

Timing September October November- December

Work group Activities

• Summarize WG recommendations and review with Board

• Seek public comments on draft final report

• Refine report based on comments

• Finalize recommendations and and submit to Board for approval

Key Dates • Sept 15/16: Board Presentation

• Sept. 17: WG meeting to finalize posting

• Sept 21: Post Draft report for public comment

• Oct 21: Comments on draft report close

• Nov 2: WG meeting to review comments

• Nov 9: WG meeting to agree on final report

• Nov 11: Notice recommendations

• Nov 17: Post final report

• Dec 2: Seek Board Approval

Public Comment

In Appreciation

Thanks to the many WECC members and staff who contributed to the Section 4.9

Review process over the past nine months.

W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C OU N C I L

Questions? Comments?

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