2019 Draft Budget Overview Jillian Lessner – Chief Financial Officer Melanie Frye – VP, Reliability Planning and Performance Analysis Dave Godfrey - VP, Entity Oversight Western Electricity Coordinating Council

Western Electricity Coordinating Council 2019 Draft Budget Overview Assessments – $25.28 million No change from 2018 Penalties - $504K $1.60 million decrease (76.0%) from 2018 Expenditures - $26.95 million $147K decrease (0.5%) from 2018 Reserves – use of $620K Western Electricity Coordinating Council

Western Electricity Coordinating Council 2019 Budget Drivers Western Electricity Coordinating Council

Western Electricity Coordinating Council 2018 to 2019 Comparison Western Electricity Coordinating Council

Budget by Statutory Program Area Western Electricity Coordinating Council

Reliability Assessment and Performance Analysis Total FTE: 39 Management / Support                                                                                                    FTE: 6 Performance Analysis Event Analysis Reliability Planning Reliability vulnerability assessments Reliability Performance Index Special assessments/deep dive into emerging issues State of the Interconnection report Assurance visits and operational practices assessments NERC data management and analysis NERC/ERO support and facilitation Technical Committee support and facilitation Event Analysis and lessons learned Cause coding and Root Cause analysis Event trending Operational guidelines and good utility practices RAC support and facilitation Anchor Data Set development Base case development Production cost model development Short circuit data collection and analysis Study analysis and report generation Resource adequacy assessments using probabilistic and deterministic methods NERC and regional reliability assessments Special reliability assessments Database management and model development Scenario development BES exception processing Project coordination and Path Rating process FTE: 7 FTE: 4 FTE: 22 Western Electricity Coordinating Council

Compliance Monitoring and Enforcement Total FTE: 60 Management / International FTE: 3 Registration Risk and Mitigation Compliance Monitoring Enforcement Oversight Analysis and Program Services Process Registration Requests Ensure that WECC has the correct entities registered for the correct functions Identify and investigate compliance gaps Perform CIP and O&P Self Report, Mitigation Plan and Completion of Mitigation Plan reviews Validate Self Certification responses Support Enforcement Perform Inherent Risk Assessments and develop Compliance Oversight Plans Provide outreach Compliance Monitoring; audits, spots checks, and investigations Support for Risk Analysis, Internal Controls, and Enforcement Process Open Enforcement Action Conduct settlement activities Issue Entity Penalty Invoices Self-Logging Program management Entity Internal Compliance Program Analysis NERC/FERC reporting, interface, and data sync Coordinate NERC Enforcement Oversight Activities Program Coordination of all Compliance Monitoring Activities Compliance Monitoring Schedules/History Oversee Multi-Regional Registered Entity Coordinated Oversight Program Manage Document Control Management Reporting Process Integration FTE: 2 FTE: 11 FTE: 28 FTE: 8 FTE: 8 Western Electricity Coordinating Council

Western Electricity Coordinating Council Comment Period Open Draft BP&B posted on wecc.biz on April 30 Comments due Monday, May 21 Link to 2019 draft BP&B: https://www.wecc.biz/bod/pages/fac.aspx# Western Electricity Coordinating Council