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

2. 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)

3. 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

4. Major Drivers: Final 2019 Budget

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

6. Budget by Statutory Program Area

7. 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

8. 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.

9. 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

10. 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 Board action: approve 2019 BP&B
July 6 Final 2019 budget submittal due to NERC
Aug-Nov NERC and FERC review and approval

11. 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