1. Compliance Risk Analysis Update Ruchi Ankleshwaria Manager, Compliance Risk Analysis W ESTERN E LECTRICITY C OORDINATING C OUNCIL

2. Agenda Compliance Risk Analysis Team Status of CMEP Items Inherent Risk Assessment (IRA) Update Internal Controls Evaluation (ICE) Update Compliance Oversight Plan (COP) Update 2 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

3. Compliance Risk Analysis Team 3 W ESTERN E LECTRICITY C OORDINATING C OUNCIL CIP Del Ruesch Benjamin Scofield Open Position O&P Patrick Van Guilder Mike Curley Heath Tallman Open Position Analysis & Controls Jennifer Hart Ruchi Ankleshwaria

4. Compliance Risk Analysis Team Responsibilities 4 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Technical Review of CMEP Items (SR, SC, MP, CMP) Inherent Risk Assessment (IRA) Internal Controls Evaluation (ICE) Compliance Oversight Plans (COP) CRA Team

5. Compliance Risk Analysis Team Responsibilities 5 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Technical Review of CMEP Items (SR, SC, MP, CMP) Inherent Risk Assessment (IRA) Internal Controls Evaluation (ICE) Compliance Oversight Plans (COP) CRA Team

6. CEMP Items Processing W ESTERN E LECTRICITY C OORDINATING C OUNCIL

7. Compliance Risk Analysis Team Responsibilities 7 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Technical Review of CMEP Items (SR, SC, MP, CMP) Inherent Risk Assessment (IRA) Internal Controls Evaluation (ICE) Compliance Oversight Plans (COP) CRA Team

8. Inherent Risk Assessment (IRA) Activities Current Status – IRA Complete - 26 – Improving the Analysis – ERO Enterprise Exercise for IRA “Base Case IRA” 8 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

9. Base Case IRA Implementation 2017 Second quarter Outcome Refinement to ERO Enterprise IRA process Strengthen ERO Enterprise Framework Establish core set of IRA risk factors Purpose Build Consistency within ERO Enterprise Align RE process for IRA guides and practical applications 9 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

10. Compliance Risk Analysis Team Responsibilities 10 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Technical Review of CMEP Items (SR, SC, MP, CMP) Inherent Risk Assessment (IRA) Internal Controls Evaluation (ICE) Compliance Oversight Plans (COP) CRA Team

11. Internal Controls Evaluation (ICE) Activities 11 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Current Status Performing ICE for 2 Entities Build efficiencies in the process Future Plans ERO Enterprise ICE enhancement Process Implementation - 2017

12. Compliance Risk Analysis Team Responsibilities 12 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Technical Review of CMEP Items (SR, SC, MP, CMP) Inherent Risk Assessment (IRA) Internal Controls Evaluation (ICE) Compliance Oversight Plans (COP) CRA Team

13. Compliance Oversight Plan (COP) Activities Current Status Working on criteria for COP First COP shared with an entity Future Plans Share COP after every audit since 3 rd quarter of 2016 ERO Enterprise COP process 13 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

14. Summary Reduce CMEP Items queue Improve IRA Analysis Improve ICE Process Look forward to COP 14 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

15. Questions Ruchi Ankleshwaria rankleshwaria@wecc.biz (801) 883-6881 W ESTERN E LECTRICITY C OORDINATING C OUNCIL 15