1. Section 4.9 Review Work Group Update to Board of Directors March 11, 2015

2. 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

3. 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

4. Western Electricity Coordinating Council A1. Board operation (meeting schedule/agendas) A2. Board committee organization B1. Member class structure (e.g. Class 1 and 2 delineators) B2. Member dues structure and voting rights B3. WECC’s costs to members (direct & indirect) B4. CMEP benchmarks with Regional Entities C1. Relationship between MAC and members C2. Role of standing committees D1. Effectiveness of WECC dispute resolution procedures D2. Quality of WECC bylaws D3. Bylaws Section 9.5: CEO duties E1. WECC vision/mission E2. WECC strategy in support of the mission E3. WECC name change E4. WECC responsibilities/activities E4a. Activities WECC should not be performing E4b. Activities WECC should perform E5. WECC/Peak Reliability relationship E5a. Proper relationship for future E5b. WECC bylaws/structure aligned? 1. Overlapping services and functions between WECC and Peak 2. Appropriate use of WECC section 215 funding 3. WECC/Peak Reliability bifurcation goals met? 4. Current WECC committee scope and structure 5. Nominating Committee structure

5. Identified 7 potential high priority issues 1.WECC vision, mission, strategy 2.Committee roles, scope, structure 3.Relationship between MAC and members 4.Responsibilities/activities WECC should perform 5.WECC/Peak relationship: service overlaps, future relationship, bifurcation goals met 6.Member dues structure and voting rights; WECC’s costs to members 7.Appropriate use of Section 215 funding ______________________________________ = Section 4.9 Review focus; problem statements drafted

7. Approach for High Priority Issues Develop Problem Statements: – The “ideal” state: what WECC should look like; how it should operate – The specific “problem” that is preventing attainment of the ideal state Form Work Teams to Develop Issue Papers (with WECC staff conveners) – Melanie Frye — mfrye@wecc.bizmfrye@wecc.biz – Dave Godfrey — dgodfrey@wecc.bizdgodfrey@wecc.biz – Steve Goodwill — sgoodwill@wecc.bizsgoodwill@wecc.biz

8. Issue Papers - Problem statement - Scope of inquiry to address the problem - Metrics (how WECC will gauge success) - Data collection and analysis (fact-based findings/ observations/conclusions) - Stakeholder input required - Draft recommendations for review by the Section 4.9 Review Work Group, the Board and the membership - Required by-law changes

9. Current Timeline - DRAFT March JuneSeptember Annual Meeting Board Meeting Progress report 2/16/15 Launch teams to develop issue papers 3/1/15 Launch teams to develop issue papers 3/1/15 Town Hall Webinar 4/21/15 Post draft recommendations for public comment 6/1 thru 6/24 Post draft recommendations for public comment 6/1 thru 6/24 Board Reviews draft recommendations 6/23/15 Board Reviews draft recommendations 6/23/15 Bylaws work; Public comment; Prepare final report 6/25 thru 8/14/15 Bylaws work; Public comment; Prepare final report 6/25 thru 8/14/15 Board Meeting Approve Recommendations 9/15/15 Approve Recommendations 9/15/15

10. HOW TO PARTICIPATE Open, noticed meetings and related documents posted on 4.9WG page April 21 webinar July webinar TBA Email input to 4.9Review@wecc.biz4.9Review@wecc.biz Progress reports on the WECC website Work in progress postings – public review and comment Meeting dates: --------------------- TBA April May 19 June 22 July 14 August 6 September 14