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2020 Budget Review: Summary, Recommendations, and Milestones

This document provides a comprehensive review of the 2020 budget, including highlights, comments from the MAC Budget Subcommittee, and recommendations. It also outlines the budget milestones and the approval process. The proposed budget shows an increase of $885k (3.29%) and includes major drivers for the adjustment. Stakeholder comments are due by May 17. The MAC is expected to amend and submit the final budget resolution to the Board by May 22.

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2020 Budget Review: Summary, Recommendations, and Milestones

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  1. 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 brenda.ambrosi@bchydro.com

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