Section 4.9 Review Work Group Town Hall Webinar April 21, 2015.

Section 4.9 Review Work Group Town Hall Webinar

April 21, 2015

Section 4.9 Work Group Members

• Kris Hafner, Chair• Rob Kondziolka, MAC Chair• Doug Larson, WIRAB• Shelley Longmuir, Governance Committee• Joe McArthur, Governance Committee• Gary Tarplee, MAC 4.9 Review Task Force, Chair• Steve Goodwill, WECC staff

From Principles to Priorities

• Guiding Principles:– WECC’s future success in reliability assurance is our collective

interest and shared purpose.

– We will exercise informed judgment and fact-based decision-making.

– We are committed to a transparent process that fosters constructive sharing of information and consideration of different points of view.

– Majority vote is the rule; consensus is our aspiration.

• Prioritization of 23 potential issues stated in the Section 4.9 Review Charter and Scope

Western Electricity Coordinating Council

A1. Board operation (meeting schedule/agendas)A2. Board committee organizationB1. Member class structure (e.g. Class 1 and 2 delineators)B2. Member dues structure and voting rightsB3. WECC’s costs to members (direct & indirect)B4. CMEP benchmarks with Regional EntitiesC1. Relationship between MAC and membersC2. Role of standing committees D1. Effectiveness of WECC dispute resolution proceduresD2. Quality of WECC bylawsD3. Bylaws Section 9.5: CEO dutiesE1. WECC vision/missionE2. WECC strategy in support of the missionE3. WECC name change E4. WECC responsibilities/activitiesE4a. Activities WECC should not be performingE4b. Activities WECC should performE5. WECC/Peak Reliability relationshipE5a. Proper relationship for futureE5b. WECC bylaws/structure aligned?1. Overlapping services and functions between WECC and Peak2. Appropriate use of WECC section 215 funding 3. WECC/Peak Reliability bifurcation goals met?4. Current WECC committee scope and structure5. Nominating Committee structure

Identified 7 potential high priority issues

1. WECC vision, mission, strategy2. Committee roles, scope, structure

a. Responsibilities/activities WECC should perform3. Relationship between MAC and members4. WECC/Peak relationship: service overlaps, future

relationship, bifurcation goals met5. Member dues structure and voting rights; WECC’s costs to

members6. Appropriate use of Section 215 funding

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• = Section 4.9 Review focus; problem statements drafted; 2.a. was incorporated into 2 from a separate statement.

Approach for High Priority Issues• Section 4.9 Work Group Developed Problem Statements;

MAC provided input: – The “ideal” state: what WECC should look like; how it should

operate– The specific “problem” that is preventing attainment of the

ideal state

• Formed Work Teams to Develop Issue Papers (with WECC senior staff conveners)– Melanie Frye :Committee roles, scope & structure– Dave Godfrey: WECC’s costs to members– Steve Goodwill : Relationship between MAC, members and

WECC

Issue Papers

• - Problem statement to frame the issue• - Scope of inquiry to address the problem • - Metrics (how WECC will gauge success)• - Data collection and analysis (fact-based findings/

observations/conclusions)• - Specific stakeholder input required• - Draft recommendations for review by the Section

4.9 Review Work Group, the Board and the membership

• - Required by-law changes

Current Timeline - DRAFT

March June September

AnnualMeeting

Board Meeting

Progress report

2/16/15

Launch teams to develop

issue papers3/1/15

Town Hall Webinar 4/21/15

Board Reviews draft

recommendations6/23/15

Bylaws work; Public comment; Prepare

final report6/25 thru 8/14/15

Board Meeting

ApproveRecommendations

9/15/15

Post draft recommendations

for public comment6/1 thru 6/24

HOW TO PARTICIPATE

• Open, noticed meetings and related documents posted on WECC 4.9 Work Group page

• Email input to [email protected]

• Progress reports on the WECC website

• Work in progress postings – public review and comment

Next Meeting dates:-------------------• May 19 call

• June 22 mtg.

• July 9 town hall webinar

• July 14 call

• August 6 call

• September 14 mtg.

Western Electricity Coordinating Council

Section 4.9 Problem Work Teams

Melanie FryeSteve GoodwillDave Godfrey

Committee roles, scope, and structure

Ideal State: As the Regional Entity responsible for reliability assurance in the Western Interconnection, WECC prioritizes and coordinates its work across the entire organization to foster compliance with standards, promote best reliability practices, evaluate current and future reliability challenges, identify ways to mitigate those challenges, and act to implement mitigating measures. WECC uses committees, task forces, and work groups to effectively and efficiently engage and mobilize the skills of experts in the industry to transparently assist in accomplishing the above.

Committees, task forces, and work groups are created with defined accountability, deliverables and budget estimates and are retired as WECC reliability priorities change. WECC staff is responsible for delivering independent reliability analysis that is vetted with and informed by industry subject matter experts (SME).

Committee roles, scope, and structure

Problem: The 2014 WECC Integrated Reliability Assurance Model (IRAM) was introduced to set priorities and integrate WECC activities to address these priorities. Several issues have arisen during initial deployment: lackluster stakeholder participation; lack of clarity re: the translation of priorities to WECC's annual work plan; and data and information-sharing concerns. WECC lacks a process that allows members to become knowledgeable and participative in the setting of priorities while also allowing management the flexibility to focus resources on emergent issues as appropriate.

Likewise, the WECC committee structure lacks a flexible organizational design that effectively incorporates expertise by subject matter experts while retaining WECC's independent perspective. Expertise from energy companies inside/outside the Western Interconnect and among non-company experts is critical to identifying and analyzing reliability challenges and developing mitigating strategies. It is important to optimize the cost-effectiveness of member participation in WECC from the perspective of entity leadership.

Committee roles, scope, and structure

Team Members – convened by Melanie Frye:• Branden Sudduth, WECC Staff• Victoria Ravenscroft, WECC Staff• Ian McKay, Director• Doug Larson, Western Interconnection Regional Advisory Body• Maury Galbraith, Western Interconnection Regional Advisory Body• Rob Kondziolka, Salt River Project• Gary Tarplee, Edison Transmission• Brian Keel, Salt River Project• Darren Buck, Western Area Power Administration• JJ Jamieson, Gridforce

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Western Electricity Coordinating Council

Committee roles, scope, and structureWork Plan: • Review and understand problem statement• Map staff and committee activities to constitutional documents such as

Delegation Agreement and WECC Bylaws• Create a list of questions associated with problem statement to target

issues, identifying gaps between current and ideal state• Identify metrics and measures• Explore alternatives to more effectively and efficiently engage the

expertise of the membership

Objective: • Deliver draft issues summary paper and recommendations to Work Group

by May 12

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Relationship between MAC, members & staff

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

Ideal State: The relationships between the MAC, the membership and WECC staff reflect mutual trust built upon a collective interest in and commitment to advancing the reliability mission of WECC. Respective roles and responsibilities are clearly defined, and supported by effective communications among the entities and with the Board.

Problem: There is a need for greater clarity regarding the respective roles, responsibilities and expectations of each group. As a result, these entities are not always well positioned to collaborate effectively or to successfully undertake initiatives within their assumed realm of responsibility. In the absence of a defined framework for assigning both ownership for activities and roles of respective groups within these activities, preoccupations with process can overshadow the urgent need to address the pressing issues facing all WECC constituencies.

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Relationship between MAC, members & staff

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

Team Members – convened by Steve Goodwill:• Bob Easton, Western Area Power Administration• Raj Hundal, Powerex• Rob Kondziolka, Salt River Project• Doug Larson, Western Interconnection Regional Advisory Body• Maury Galbraith, Western Interconnection Regional Advisory Body

• Jim Robb, WECC CEO• Gary Tarplee, Edison Transmission• Richard Woodward, Director• Richard Ferreira, Transmission Agency of Northern California

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Relationship between MAC, members & staff

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

Possible recommendations:• Matrix document to define/clarify roles and responsibilities• Statement in final draft report stating guiding principles about how

various groups work together and communicate• More opportunities for the Board to hear from the Standing Committees

regarding work being done, issues of concern

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Western Electricity Coordinating Council

WECC’s Cost to MembersIdeal State: The total cost of participating in WECC activities (including labor, travel and employee expenses to attend and participate in WECC committee work) would be optimized, predictable, and sufficient to meet WECC’s obligations under its delegation agreement with NERC and to achieve WECC’s mission. The WECC assessments would be relatively level over time. There would be an economic and effective way to gather and leverage the expertise within the interconnection to address reliability issues in a meaningful way. There would be an accurate forecasting of future years assessments, with clear and transparent assumptions and a mechanism for member input into the budgeting process

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Western Electricity Coordinating Council

WECC’s Cost to MembersProblem: As companies continue to have increasing demands on their resources, we are seeing a negative trend in the participation in committee work, both in terms of the number of people that are available to attend meetings and the time they can dedicate to WECC work activities and assignments. At the same time, there appears to be a proliferation of work groups and task forces without clear sunset guidelines. While the budget has remained relatively flat for the Regional Entity portion of the WECC assessment over the last five years, assessments have had more volatility. This has been driven partially by the reliance on and the variability of penalty sanctions collected that offset future assessments.

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Western Electricity Coordinating Council

WECC’s Cost to MembersTeam Members – convened by Dave Godfrey:• Maude Grantham-Richards, Tri-State Generation and Transmission• Scott Waples, Avista Energy• Joe McArthur, Director• Jillian Lessner, WECC Staff• Tim Reynolds, WECC Staff

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Western Electricity Coordinating Council

WECC’s Cost to MembersApproach: • Collect budget and assessment data from 2010-2016 from WECC and

other NERC Regional Entities• Collect/estimate labor, travel and other employees expenses required to

participate in WECC committee work and activities• Explore options to obtain subject matter expertise to ensure the right

work is being undertaken and that it includes appropriate “peer reviews”• Develop options for reducing the volatility of assessments

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Western Electricity Coordinating Council

WECC’s Cost to MembersTimeline: • Complete data collection – April 8• Compile and analyze data – April 30• Develop engagement options – May 7• Develop smoothing mechanisms – May 7• Produce issues paper – May 15

HOW TO PARTICIPATE

• Open, noticed meetings and related documents posted on WECC 4.9 Work Group page

• Email input to [email protected]

• Progress reports on the WECC website

• Work in progress postings – public review and comment

Next Meeting dates:-------------------• May 19 call

• June 22 mtg.

• July 9 town hall webinar

• July 14 call

• August 6 call

• September 14 mtg.