WECC Section 4.9 Review
Progress Report
Standing Committees Meeting
October 14, 2015
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Section 4.9 Review
• Work Group Members
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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
4.9 Review Work Group Flow and Timeline
Potential Issues
Importance
Urgency
Clarify
Relationships
Understand
Costs
Board
Discussion and Approval
Final Report
December
Align
Committees
Membership and Stakeholders
Provide Input
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Draft Report
September
Integration and Final Report
Work Group – Lead
Aug - Dec
Membership and Stakeholders
Participate and Provide Formal
Comments
L E C T R I C I T Y
C
Membership and Stakeholders
Provide Formal Comments
O O R D I N A T I N G
C O U N C I L
4.9 WG Outreach and Stakeholder
Opportunities for Comment
Open Meetings
“Town Hall” Webinars
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− April 21
− August 26
January 14
February 3
March 3
March 9
April 10
May 19
June 22*
July 14
August 6
August 24
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
 Expanding Partnership
 Building Alignment
 Gaining Clarity
 Improving Cost-Effectiveness
• 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.
2. Building Alignment
• 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
Current Communication Flow
MAC
PCC
MIC
Coordination
OC
Input
Board of Directors
WECC Exec.
JGC
WECC Staff
TEPPC
Deliverables
Communication Flow with Re-chartered
Joint Guidance Committee
MAC
Strategic
policy input
Board of Directors
Strategic technical
input
Joint Guidance
Committee
Tactical Input
Work Assignment
WECC Exec.
OC
WECC Staff
PCC
MIC
TEPPC
Deliverables
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)
3. Gaining Clarity
• 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.
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.
4.
4. Improving
Improving Cost Effectiveness
Effectiveness
• Each committee, sub-committee, work group
and task force should revisit charter
requirements for in-person meetings to
maximize their value and 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
Annual Percent Change in Historic Budget and Assessments
80.0%
70.0%
60.0%
50.0%
40.0%
Percent
30.0%
20.0%
10.0%
0.0%
2011
2012
2013
2014
-10.0%
-20.0%
-30.0%
-40.0%
Budget Year
Budget
Assessments
2015
2016
Completing the 4.9 Review
Prepare WG
Recommendations
Timing
Public Comment
September
Finalize Report
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
• Oct 21: Comments on
draft report close
• Nov 2: WG meeting to
review comments
• Sept. 17: WG
meeting to finalize
posting
• Nov 9: WG meeting to
agree on final report
• Nov 11: Notice
recommendations
• Sept 21: Post Draft
report for public
comment
• Nov 17: Post final report
• Dec 2: Seek Board
Approval
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In Appreciation
Thanks to the many WECC members
and staff who contributed to the
Section 4.9 Review process over the
past nine months.
25
Questions? Comments?
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