WECC Section 4.9 Review Update
Town Hall Meeting
August 26, 2015
Section 4.9 Work Group Members
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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
Potential Issues
Importance
Urgency
Clarify
Relationships
Understand
Costs
Board
Discussion and Approval
Final Report
December
Align
Committees
Membership and Stakeholders
Provide Input
Draft Report
September
Integration and Final Report
Work Group – Lead
Aug - Dec
Membership and Stakeholders
Participate and Provide Formal
Comments
Western Electricity Coordinating Council
Membership and Stakeholders
Provide Formal Comments
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
Western Electricity Coordinating Council
Identified 6 Potential High Priority Issues
1.
2.
3.
4.
5.
WECC vision, mission, strategy
Committee roles, scope, structure
Relationship between MAC and members
Responsibilities/activities WECC should perform
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):
o2 representatives from each standing
committee (OC, MIC, PCC, TEPPC)
o1 WECC representative
o1 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
Potential Issues
Importance
Urgency
Clarify
Relationships
Understand
Costs
Board
Discussion and Approval
Final Report
December
Draft Report
September
Align
Committees
Membership and Stakeholders
Provide Input
Integration and Final Report
Work Group – Lead
Aug - Dec
We are here
Membership and Stakeholders
Participate and Provide Formal
Comments
Western Electricity Coordinating Council
Membership and Stakeholders
Provide Formal Comments
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
Finalize Work
Stream input
Prepare Work Group
Recommendations
August
Finalize Report
Timing
July
September
October
Work
Team
Activities
• Summarize
member input
• Refine
recommendations
• Submit revisions
based on input
• Respond to work
group requests
• Respond to work
group requests
• 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
Western Electricity Coordinating Council
November- December