Grace Anderson Chair, Budget Work Group May 16, 2018 WECC 2019 Budget Review Grace Anderson Chair, Budget Work Group May 16, 2018

Work Group—2018 Activities WECC Staff budget and program briefing 2/22 Chair presents Initial Observations to FAC 3/7 Work Group meets weekly March-April, with staff Members reach consensus: Comments to MAC First Work Group report and straw poll of MAC 4/18 Work Group posts draft MAC Comments to Board Budget Resolution (5/9)

Highlights: 2019 Proposed Budget 2019 budget is approximately 0.5% decrease Load-Serving Entity assessment held constant Reserve levels slightly above FAC policy range Emergent Key Areas may need additional resources: Reliability Coordination Certification Low Impact Standards Generation Cases Special Studies

Major Drivers: Final 2019 Budget

2019 Budget: Revisions April 30 $85K in penalties collected $100K for Gas/Electric Interdependence refresh $34K for MAC-approved WECC Director 5% compensation increase

Budget by Statutory Program Area

MAC Comments to Board Effective collaboration continues: schedule, BP&B posting early, staff team Personnel cost increases: long term planning challenge Assessment stabilization may merit review Consultant/Contract funding reductions; budgeting for contingencies (emergent key areas) Low-impact standards Reliability Coordinator certification and related matters Reliability Assessment Committee implementation Special Analyses

MAC Recommendations to Board The MAC recommends Board support for the budget as proposed, subject to two conditions: Satisfactory resolution of matters raised by members in comments due May 21, 2018; and, Acceptability of contingency funding from reserves of likely emergent key areas. BWG posted Draft MAC Comments and Resolution May 9; BWG recommends delegate to MAC Chair judgement re condition 1 (above), based on input from BWG/members.

2019 Budget Milestones (1) April 30 Final Draft 2019 BP&B posted May 2, 14, 17 WECC Staff holds BP&B webinars May 16 Budget Work Group Second Report to MAC May 16 MAC May meeting action items (today): Comments to Board Budget Resolution

2019 Budget Milestones (2) May 21 Stakeholder comments due on draft BP&B May 25 MAC submits resolution to Board; or June __ MAC revises resolution; submits to Board June 20-21 Board action: approve 2019 BP&B July 6 Final 2019 budget submittal due to NERC Aug-Nov NERC and FERC review and approval

Thanks! Work Group Members Excellent consistent participation and substantive input from all classes: Gregg Lemler Class 1 Linda Jacobson-Quinn Class 2 Brian Theaker Class 3 Robert Nelson Class 4 Brenda Ambrosi International