1. Chair, MAC Budget Subcommittee
2020 Budget Review
April 2019
Brenda Ambrosi
Chair, MAC Budget Subcommittee

2. Subcommittee Members Class 1 – Cherilyn Randall
Class 2 – Linda Jacobson-Quinn
Class 3 – Brian Evans-Mongeon
Class 4 – Robert Nelson
Class 5 – Grace Anderson
International – Brenda Ambrosi, Chair

3. MBS Activities WECC staff budget overview 2/22
Initial observations presented to FAC and MAC 3/5
Meetings 2/26, 2/28, 3/29, 4/2
Consensus reached and draft documents finalized 4/5

4. 2020 Budget Milestones
April 24: MBS report to MAC including Comments and Recommendations to Board, and Budget Resolution
April 29: Final draft 2020 BP&B posted
May 2, 10, 13: WECC staff holds BP&B webinars
May 17: Stakeholder comments due on draft 2020 BP&B
May 22: MAC amends resolution, if required, and submits to Board
June 18-19: Board approval of 2020 BP&B
July 9: Final 2020 BP&B submittal to NERC including LSEs and NEL data
August-November: NERC and FERC review and approval

5. Highlights: 2020 Proposed Budget
2020 budget increases by $885k or 3.29%
2020 proposed budget $27,836,000
2019 approved budget $26,951,000
Major drivers
+ 3% merit, labor float adjustments, changes in position levels, refinement of taxes/benefits
+ Increase in office rent due to new lease and increased maintenance costs
+ Increase for one off-site Standing Committee meeting
+ Increase in computer licensing due to use of subscription-based services and tools
- Elimination of Compliance contractors
- Decrease in webCDMS licensing fees due to Align
- Decrease in organizational consulting
- Other net changes
Load-Serving Entity aggregated assessment held flat in 2020
Increases by 2% in 2021 and 2022

6. MBS Comments to MAC
Effective collaboration and quality of work continues to improve
2020 budget increase by $885k (3.29%) appears reasonable
Comparable to the rate of inflation for labor, and cost of building a single high voltage substation
Link near-term priorities to the budget
Increase clarity and transparency of explicit relationship between budget and priorities
WECC staff working on this request
Net Energy for Load changing dynamics may benefit from re-examination of the methodology
WECC staff to discuss with NERC at May meeting

7. MBS Comments to MAC Cont’d
Supplemental information of value
Compliance resource adequacy
WECC staff actively evaluates staffing levels for CMEP on monthly basis
WECC staff are developing programs to address personnel turnover
MBS comforted by WECC’s reassurance and commitment but feels importance of topic merits attention from Board year-round
Legal and regulatory resource adequacy
MBS’s concern alleviated by WECC’s reassurance
Reliability presentation by SMEs
SMEs will be leveraged from internal talent pool
Cost for external SMEs can be discussed with WECC staff on case-by- case basis
Critical Analysis
MBS request for WECC staff to perform analysis where 2020 budget is held constant with 2019 budget, understanding that there are few variable expenses

8. MBS Recommendations to MAC
MBS recommends MAC support the budget as proposed, subject to three conditions:
Review changes made to final proposed budget to be posted April 29,
Satisfactory resolution of matters raised by members in comments due May 17, and
Acceptability of contingency funding from reserves of potential emergent key areas identified in MBS comments
Motion to approve Resolution, as written

9. Brenda Ambrosi
MBS Chair