Finance and Audit Committee

Judy Walsh

FAC Chair

April 30, 2009

MOTION:

Approve the 2008 audited financial statements.

2

Performance Against Budget @ 3/31/2009 (in 000’s)

3

Actual Budget $

Variance%

Variance

Core1, 2 9,752 11,422 1,670 14.62%Timing except for salary overhead reclassifications of $300K.

RC 5,789 6,087 298 4.90%

Timing except for computer communications cost savings of $300K and salary related overhead actuals of $300K.

Other 277 394 117 29.70%

Totals 15,818 17,903 2,085 11.65%

1 Compliance (component of Core)

1,273 1,300 27 2.08%

Year to Date Expenditures

2 Excludes RCs, Training, DSW and WREGIS; Includes NERC/WIRAB Assessments

2009 Budget (in 000’s)

4

Core1, 2 29,749

RC 14,168

Other 1,747

Totals 45,664

1 Compliance (component of Core)

5,224

2 Excludes RCs, Training, DSW and WREGIS; Includes NERC, WIRAB and Reserves Increase

Potential 2009 Budget Issues

● CIP Audits ~ $250K

● NERC AUP Consultant ~ $200K

WECC will attempt to find savings elsewhere in the budget to cover these unanticipated 2009 expenditures.

5

2010 Budget – Major Drivers

● Increase of 32.5 FTEs; 21 in Compliance, 7 in RC Centers

● Increase of one million dollars for CIP audits

● Decrease of $540K due to termination of RC liability policy

6

2010 Budget – Open Issues

● NERC Assessments were budgeted to increase 5% ($290K) based on preliminary conversations with NERC in January

● Proposed and most current NERC budget increase is 41%; approximate $2.3 million increase in assessments to WECC region

7

WECC 2009/2010 Reserve Analysis 1 (in 000’s)

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Beginning Reserves, 1/1/2009 5,000

Plus: 2009 Budgeted Addition to Reserves 1,000Projected Reserves, 12/31/2009 6,000

Plus: 2010 Budgeted Addition to Reserves 1,000Projected Reserves, 12/31/2010 7,000

1 Excluding WREGIS; Rounded figures.