Performance Measure Recommendations Greg Pierce – Chair, Performance Measures Task Force Compliance and Certification Committee Meeting September 8-9, 2010

Topics PMTF Tasks and Status Performance Measure Recommendations Performance Measure Trends Next Steps

Tasks Establish an open, consistent and repeatable metric development process to identify and evaluate metrics Develop compliance improvement measures at the highest levels to provide insight in terms of a set of compliance principles Coordinate and work with Regional Entities, RMWG, OC, PC and CIPC to ensure agreement Recommend how to benefit from the compliance improvement measures

Status Adopted RMWG’s open metric development process Reviewed data source on compliance and other key input factors Proposed a set of performance measures at high levels Gathered data and validated preliminary trends Received feedback from CCC, OC/PC, RMWG, Regional Entities and NERC staff since June 2010 The final report is available at http://www.nerc.com/docs/compliance/pmtf/Compliance_Performance_Measure_Recommendations_Final.pdf

Performance Measure Recommendations . Self Disclosure Compare self disclosed versus discovered violations Timeliness of CVI/CIQ Resolutions Average duration of CVI/CIQ and number of lessons learned issued Mitigation Plan Average duration for mitigation plan implementation Violation Risk Risk factor and severity level weighted average based on unmitigated violations Feedback Timeliness and Effectiveness Actionable lessons learned guidance from audits, operating experience, violations and disturbances Feedback to Standards Direct input to standards development, including results-based standards initiative Audit Results Timeliness Average duration for no-violation audit report completion Enforcement Results Timeliness Average duration for audit reports with potential violations

Self Disclosure

Self Disclosure (cont’d)

Timeliness of CVI/CIQ

Timeliness of CVI/CIQ (cont’d)

Average Duration of Mitigation Plan Completion

Violation Risk Index

Timeliness of Lessons-Learned Special Considerations: The speed by which the lessons learned are completed and issued may also relate to whether a particular lesson is common to the industry or some segment of the industry. The complete data to measure the Timeliness of Lessons Learned is currently not available.

Feedback to Standards

Average Duration of Audit Report Completion w/ No Violations

Average Duration of Audit Report Completion w/ Possible Violations

Scope for the Performance Measures Working Group

Performance Measures Working Group Continue to develop and improve performance measures in the areas: CMEP process efficiency Direct feedback to Standards Material timeliness Reliability enhancements Risk-informed guidance

Scope (cont’d) Define data collection and reporting guidelines Publish quarterly website updates on compliance performance measures Provide relevant prioritized feedback to enhance the performance under the compliance program and standards development programs, as well as enhance the reliability of the bulk power system Provide an annual report assesses trends and recommendations.  

Recommended Action by CCC

Recommended Action by CCC The PMTF recommends that the Compliance and Certification Committee Approve the report “Compliance Performance Measure Recommendations” Approve the scope of the Performance Measures Working Group

Questions & Answers