1. MAC Committee Update Robert Kondziolka, MAC Chair

2. Major Activities Measures of Effectiveness for the Board – Approved by the MAC at February 2015 Meeting Measures of Effectiveness for the MAC – Approved by the MAC at February 2015 Meeting Communication Principles – Approved by the MAC at March 2015 Meeting 2016 Business Plan and Budget – Initial review Section 4.9 Review – Status and Outlook 2

3. Measures of Effectiveness for the Board Approved unanimously by MAC with one abstention Applies to the Board as a whole Aligns with WECC authoritative documents Opportunity for Board review and input Independent entity conducts survey – Limited scope – Estimated on the order of $10,000 MAC members respond to survey 3

4. Measures of Effectiveness for the MAC Approved unanimously by the MAC Applies to MAC as a whole and individual MAC member responsibilities Simpler than Board survey – different responsibilities Individual MAC member performance and evaluation is responsibility of each class Does not need independent entity to conduct survey MAC members respond to survey 4

5. Communication Principles Approved unanimously by the MAC Principles by MAC for communication with Board Focus on executive style less is more approach Incorporates – Guiding Principles & Procedures document – Written report format template – Oral report format template Addresses: – Class positions – Majority and minority positions 5

6. 2016 Business Plan and Budget Work group formed Received initial material and briefing last week Items from the MAC Meeting: – Encouraged by initial review – Positive feedback on approach for level assessments – Positive feedback on only slight increase to budget 6

7. Section 4.9 Review MAC work complementary with Board Work Group – No duplication – Value added MAC Input to Board Work Group – Problem and Vision Statements Concerns with schedule addressed Formation of MAC task force to evaluate current Bylaws on Nominating Committee representation 7

8. 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

9. 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

10. W ESTERN E LECTRICITY C OORDINATING C OUNCIL 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

11. 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 = Under consideration

12. 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)

13. 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

14. 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 4/16 thru 5/15 Post draft recommendations for public comment 4/16 thru 5/15 Board Reviews/ approves (draft) recommendations 6/23/15 Board Reviews/ approves (draft) recommendations 6/23/15 Bylaws work; Public comment; Prepare final report 6/23 thru 8/14/15 Bylaws work; Public comment; Prepare final report 6/23 thru 8/14/15 Post/notice bylaws recommendations 5/22 thru 6/2/15 Post/notice bylaws recommendations 5/22 thru 6/2/15 Board Meeting Approve Recommendations 9/15/15 Approve Recommendations 9/15/15

15. HOW TO PARTICIPATE Open, noticed meetings and related documents posted on 4.9WG page April 21 webinar 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: --------------------- March 23 April 9 May 19 June 22 July 14 August 6 September 14