Compliance Monitoring Strategy

Kim IsraelssonManager, Compliance Program Coordination and

Process Integration

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Overview

• How will Reliability Assurance Initiative (RAI) impact WECC’s Annual Audit Plan?

• What does this mean to my Entity?• How and when will Entities be notified of an

upcoming audit?

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How RAI Impacts WECC’s Annual Audit Plan

WECC will identify which Registered Entities are subject to compliance monitoring activities (including Inherent Risk Assessment) in a given year based on NERC IRA Guidance:

• Not applicable to Registered Entities required to be audited at a three-year interval per the NERC Rules of Procedure (BA, RC, TOP)

• Moving away from traditional 6 year audit schedule• Provide flexibility to address emerging issues• Allow WECC to engage in a collaborative dialogue with each

Registered Entity and focus efforts where needed

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What does this mean to my Entity?

• WECC will use an Inherent Risk Assessment to determine type and frequency of monitoring method for each entity– audit, spot-check, self-certification, etc.

• WECC will focus efforts on Registered Entities with higher impact on Bulk Power System (BPS) and/or registered entities that pose a high risk to BPS

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How/when will my Entity be notified of an upcoming monitoring activities?

• WECC will post the Annual Audit Plan the first business day in August

• With the exception of BA, TOP, RC functions, entities will be sorted quarterly

• Entities included in the WECC Annual Audit Plan will be notified of impending IRA and/or audit deadlines approximately 280 days prior to start of audit engagement

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References

WECC encourages Registered Entities to review the following NERC Guidance materials:

• ERO Enterprise Inherent Risk Assessment Guide– http://

www.nerc.com/pa/comp/Reliability%20Assurance%20Initiative/ERO_Enterprise_Inherent_Risk_Assessment_Guide_20141010.pdf

• Overview of ERO Enterprise’s Risk-Based Compliance Monitoring and Enforcement Program– http://

www.nerc.com/pa/comp/Reliability%20Assurance%20Initiative/Overview%20of%20the%20ERO%20Enterprise%E2%80%99s%20Risk-Based%20CMEP.pdf

• 2015 ERO Compliance Monitoring and Enforcement Implementation Plan– http://

www.nerc.com/pa/comp/Reliability%20Assurance%20Initiative/Final_2015%20CMEP%20IP_V_1.1%20%28Posted_05052015%29.pdf

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Questions

Kim Israelsson801.819.7613kisraelsson@wecc.bizREoversight@wecc.biz