Strategic Planning Process Independence Perspective Partnership Steve Goodwill Interim President and CEO

Background 2015 Section 4.9 Review called for a three-year planning process 2016 Strategic Direction Outline developed identifying five Strategic Focus Areas 2017-2020 Operating Plan developed 2017 ERO Enterprise Framework finalized WECC Strategic and Operating Planning Process developed 2018-2020 Operating Plan revised to align with ERO Enterprise Operating Plan 2018 Reliability Workshop (March) Board Reliability Workshop (April 30)

Design Principles Dovetail with the ERO Enterprise planning framework Reliability Issues Steering Committee (RISC) efforts ERO Enterprise Long-Term Strategy ERO Enterprise Operating Plan Provide opportunity for member and stakeholder input and engagement Focus on issues of unique impact and importance to the Western Interconnection and where WECC can make a material contribution

Annual Business Plan and Budget WECC Board ADVICE Charters Member Needs Advisory Bodies (MAC & WIRAB) APPROVE REVIEW APPROVE Committee Work Plans PERSPECTIVES NERC RISC Report Focus Areas 3-year Operating Plan Annual Business Plan and Budget Western SME Perspectives Strategic Direction Near-Term Priorities ERO Enterprise Long-Term Strategy Program Area Work Plans Explicit consideration of the NERC Reliability Issues Steering Committee (RISC) Report as the starting point for considering reliability risk priorities. (The previous Operating Plan was based on an internal WECC assessment of Reliability Challenges discussed with the Board in September of 2014) A clear opportunity for vetting the RISC priorities through a Western Interconnection lens utilizing the expertise of the Western Interconnection’s Subject Matter Experts in the technical committees as well as the key advisory bodies to the WECC Board (WIRAB and the MAC) Consideration of the ERO Enterprise Long-Term Strategy as approved by the NERC Board of Trustees. Separation of the WECC planning activities into a long-term strategic direction (e.g., the Strategic Direction Outline approved last year and its successors) and a formal process for the Board to approve near-term priorities that would guide WECC’s Operating Plan. Constitutional Documents COMMENTS COMMENTS COMMENTS NERC Priorities Delegation Agreement WECC Bylaws Stakeholders

Five Strategic Priorities Changing Market Structure Evolving Resource and Load Composition Key Vulnerabilities Sharing of Information High impact/low frequency events - Reliability Impacts of Changing Market Structure (eg. EIM expansion; multiple ISO/RTOs) - Reliability Impacts of Evolving Resource and Load Composition - Identification and Mitigation of Key Vulnerabilities - Appropriate Sharing of Operating, System, and Events Analysis Information - Analysis of future scenarios which could challenge BES reliability, including high impact/low frequency events Western Electricity Coordinating Council

Process Timing Overview Predictable Repeatable Stable

Key Dates Date Event April 30 Board Workshop to consider Strategic Direction and discuss input received from March 21 Workshop May 21 – June 6 Recommended Near-term Priorities posted for stakeholder comment June 13 Final draft and recommendations posted for Board meeting June 20 Expected Board approval of Near-term Priorities