1. Compliance Monitoring Strategy
Kim Israelsson
Manager, Compliance Program Coordination and Process Integration

2. Western Electricity Coordinating Council
Overview
How will Reliability Assurance Initiative (RAI) impact WECC’s Annual Audit Plan?
What does this mean to my Entity?
How and when will Entities be notified of an upcoming audit?
Western Electricity Coordinating Council

3. How RAI Impacts WECC’s Annual Audit Plan
WECC will identify which Registered Entities are subject to compliance monitoring activities (including Inherent Risk Assessment) in a given year based on NERC IRA Guidance:
Not applicable to Registered Entities required to be audited at a three-year interval per the NERC Rules of Procedure (BA, RC, TOP)
Moving away from traditional 6 year audit schedule
Provide flexibility to address emerging issues
Allow WECC to engage in a collaborative dialogue with each Registered Entity and focus efforts where needed
Western Electricity Coordinating Council

4. What does this mean to my Entity?
WECC will use an Inherent Risk Assessment to determine type and frequency of monitoring method for each entity
audit, spot-check, self-certification, etc.
WECC will focus efforts on Registered Entities with higher impact on Bulk Power System (BPS) and/or registered entities that pose a high risk to BPS
Western Electricity Coordinating Council

5. Western Electricity Coordinating Council
How/when will my Entity be notified of an upcoming monitoring activities?
WECC will post the Annual Audit Plan the first business day in August
With the exception of BA, TOP, RC functions, entities will be sorted quarterly
Entities included in the WECC Annual Audit Plan will be notified of impending IRA and/or audit deadlines approximately 280 days prior to start of audit engagement
Western Electricity Coordinating Council

6. Western Electricity Coordinating Council
References
WECC encourages Registered Entities to review the following NERC Guidance materials:
ERO Enterprise Inherent Risk Assessment Guide
Overview of ERO Enterprise’s Risk-Based Compliance Monitoring and Enforcement Program
2015 ERO Compliance Monitoring and Enforcement Implementation Plan
Western Electricity Coordinating Council

7. Western Electricity Coordinating Council
Questions
Kim Israelsson
Western Electricity Coordinating Council