WECC Section 4.9 Review Update Town Hall Meeting August 26, 2015

Section 4.9 Work Group Members Kris Hafner, Chair, Board Member Rob Kondziolka, MAC Chair Maury Galbraith, WIRAB Shelley Longmuir, Governance Committee Joe McArthur, Governance Committee Gary Tarplee, MAC 4.9 Review Task Force, Chair Steve Goodwill, WECC staff

4.9 Review Work Group Flow and Timeline 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

Identified 6 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 ______________________________________ = Section 4.9 Review focus; problem statements drafted = Incorporated into 2. above

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 Task Work Teams (selected member experts with WECC staff conveners) to conduct research, analysis, weigh input and draft recommendations/options

3 Key 4.9 Review Focus Areas 1.Relationship between MAC, members and WECC: Need to clarify respective roles and responsibilities of WECC, MAC, committees and members 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

1. Relationship between MAC, members and WECC Initial recommendations: – Adopt a Responsibility and Accountability Matrix Member feedback (public comment and June 22 Summit) – Desire for more detail to be provided on the matrix – Desire for more explanation of the role of members vs the role of elected member leaders

1. Revised Work Team Recommendations Adopt the Responsibility and Accountability Matrix (RAM) as a living document, to strengthen stakeholders’ understanding of their individual and collective roles in WECC’s governance and operational processes. Clarify and define the inter-relationships between the MAC and the three Standing Committees (OC, PCC, MIC) and TEPPC in support of the WECC mission. Adopt language in the 4.9 Report reflecting WECC’s collaborative history and the value of working together from positions of trust. Identify activities and processes to increase awareness across the organization of the important work being done by the technical Standing Committees.

2. Committee Roles, Scope and Structure Initial recommendations: – Align committee goals and work plans with WECC strategic priorities – Increase member/stakeholder input in priority setting – Design flexible mechanisms to address ad hoc issues – Create a Steering Committee to facilitate alignment between WECC and committees via a strategic planning process Member feedback (public comment and June 22 Summit) – General agreement on the need for alignment between WECC and standing committees and for more member involvement in setting WECC priorities – Minimal support for formation of Steering Committee; preference for re-chartered JGC

2. Revised Work Team Recommendations : Adopt a strategic planning process for the WECC “ecosystem” where MAC and Standing Committee members collaborate with the WECC Board and CEO/staff, in setting and aligning priorities and developing supporting operating plans. Re-charter the Joint Guidance Committee (Vs a new Steering Committee) to play a key role in: – Aligning the priorities and work plans of the standing committees/TEPPC with WECC priorities; – Addressing identified cross-functional issues; – Providing input on strategic direction and – Working to improve communications among committees.

2. Revised Work Team Recommendations : Determine the optimal composition and reporting relationship of the Joint Guidance Committee: – Reporting: Board Committee or Standing Committee – Composition (initial proposal): o 2 representatives from each standing committee (OC, MIC, PCC, TEPPC) o 1 WECC representative o 1 non-voting MAC representative. Develop a new charter for the JGC

3. WECC’s Costs to Members Initial Work Team recommendations : – Reduce the number of in-person meeting held each year, supplemented by regularly scheduled webinars. – Keep the total Regional Entity’s assessment flat and allow the budget to vary based on the use of reserves and other sources of income – Maintain the existing stakeholder budget review and comment period, supplemented with one or two informational webinars Member feedback (public comment and June 22 Summit) – General support for strategy to stabilize assessments – Support for additional informational budget meetings – Balance cost-containment with benefit of face-to-face meetings

3. Revised Work Team Recommendations – Each committee, sub-committee, work group and task force should revisit its charter requirements for in-person meetings to maximize their value and effectiveness. – An annual adjustable cap (%) based on historical increases and forecasts of budgetary needs should be established to limit fluctuations and increases in assessments. The reserve policy requires updates to include a balancing account to support this cap. – To ensure member input into the budget process, maintain the existing stakeholder review and comment period, supplemented with one or two informational webinars prior to final Board approval.

4.9 Review Work Group Flow and Timeline Western Electricity Coordinating Council We are here

4.9 WG - Current Focus Consider the suggestions from the work teams (thanks to all who participated!) Refine, clarify or further develop proposed solutions Assess the various recommendations in relation to one another View the proposed changes in the context of the WECC “ecosystem” Offer a strategic planning roadmap in support of the proposed changes

Completing the 4.9 Review Western Electricity Coordinating Council Finalize Work Stream input Prepare Work Group Recommendations Finalize Report TimingJulyAugustSeptemberOctoberNovember- December Work Team Activities Summarize member input Refine recommendations Submit revisions based on input Respond to work group requests Work group Activities Begin to synthesize work team recommendations and member comments Synthesize inputs into coherent set of recommendations Prepare first draft of WG report Summarize WG recommendations and review with Board Seek public comments on first draft of report Refine report based on comments Finalize recommendations and and submit to Board for approval Key Dates July 14: WG meeting to consider recommendations and comments received July 15: Standing Committee presentation Aug 6: WG meeting to discuss integrated recommendations and any open issues Aug 24: WG meeting to finalize Town Hall presentation Aug 26: Town Hall webinar (preview Board presentation) Sept 15/16: Board Presentation Sept. 17: WG meeting to finalize posting Sept 21: Post Draft report for public comment Oct 21: Comments on draft report close Oct 26: WG meeting to review comments/agree on changes Nov 2: Notice any Bylaw changes Nov 9: WG meeting to agree on final report Nov 11: Notice recommendations Nov 17: Post final report Dec 2: Seek Board Approval