Topic:"Cost Recovery" in M03324

e Regional Entity shall be limited to examination of the Regional Entity's compliance with the Delegation Agreement, the NERC ROP, the CMEP, FERC requirements, and directives issued pursuant to §8(c). Section 9, Funding. This section has b...

AI summary The Funding section of the Delegation Agreement mandates that the Regional Entity collaborate with NERC to develop an annual budget, ensuring delegated functions have adequate resources. Funding sources include end-user assessments and penalties, with allocation based on Net Energy for Load (NEL) or an approved alternative formula. FERC approval is required for funding arrangements.

s and assessments. The proposed business plan and budget and proposed assessment shall also provide for reasonable reserve mechanisms for unforeseen and extraordinary expenses and other contingencies. Section 3 addresses the allocation of...

AI summary The document outlines cost allocation mechanisms for a Regional Entity, requiring reserve funds for unforeseen expenses. It specifies that assessments are allocated based on Net Energy Load (NEL) among Load-Serving Entities (LSEs), subject to NERC and FERC approval. The Regional Entity's role as a billing agent for NERC is detailed, with compliance to prior FERC requirements.

In the August 20 meeting, the NERC Board also approved the proposed 2010 assessments to LSEs and designees to recover the 2010 statutory funding requirements for NERC, the Regional Entities and WIRAB. In summary, the processes followed by...

AI summary NERC's 2010 Business Plan and Budget development involved comprehensive processes with stakeholder input, leading to the approval of assessments to recover statutory funding. The process was inclusive and thorough, with iterative reviews by the Finance and Audit Committee and the MRC.

he registered entity. 21 These non-assessment sources of funding are projected to be $3,493,839, resulting in a 2010 net funding requirement of $37,063,569 to be funded by assessments to LSEs. Of . 20 Another potential source of non-assess...

AI summary NERC's 2010 budget relies on $3.5M in non-assessment funding sources, leaving a net funding requirement of $37.1M to be covered by LSE assessments. Penalty assessments from Regional Entities prior to June 30, 2009, are being used to offset their funding needs, though NERC had not received any such payments by that date.

k required during 2010 to process TFEs with existing (budgeted) staffing and resources and, if needed, can fund these activities by drawing on their Working Capital Reserves during 2010. 39 However, because the scope of work and resources...

AI summary The text discusses budgeting for TFE processing by Regional Entities in 2010, noting reliance on existing resources and Working Capital Reserves. It highlights potential supplemental funding requests due to uncertain work scope and NERC's evolving oversight role. Budget tables (Attachments 3-10) detail statutory and non-statutory funding, with adjustments for other income sources.

D. Overall Funding Requirement and Allocations by Country, Region and LSE The total ERO assessment funding requirement for 2010 (net of other NERC and Regional Entity income sources) is $138,169,469, consisting of $37,063,569 for funding o...

AI summary The total ERO assessment funding requirement for 2010 is $138.17 million, allocated to NERC programs, Regional Entity statutory activities, and WIRAB. NERC distributes its $37.06 million share based on NEL, with exceptions: IDC costs are allocated by usage in the Eastern Interconnection, and adjustments credit IESO and Québec for compliance activities outside the U.S.

nd Budget. Each Regional Entity Business Plan and Budget begins with an Introduction section that presents a table showing Total Regional 73 See Table 5 in Section B of Attachment 2 . Entity Resources for 2010, including statutory and non-...

AI summary The document outlines the structure of Regional Entity Business Plans and Budgets, including sections on statutory programs, administrative departments, and funding assessments. It details the inclusion of FTEs, expenses, capital expenditures, and cost impact analyses, with references to NERC's format and comparisons between 2009 and 2010 budgets.

that the 2010 Business Plan and Budget shows 23.4 FTEs as having been budgeted for 2009. ( See, e.g. , Table 5 in Section B.) 79 One of these positions has already been added during 2009. expects to draw on its Working Capital Reserve if n...

AI summary NPCC's 2010 budget includes 23.4 FTEs, a new position for the Reliability Assessment Program, and potential supplemental funding for processing TFEs. Capital expenditures decrease by $870k due to 2009 office relocation costs, while personnel and travel expenses increase. The target Working Capital Reserve for 2010 is $2.27M, requiring an additional $146k in assessments.

C. NERC Has Established Rules That Allocate Equitably Reasonable Dues, Fees and Charges Among End-Users for All Statutory Activities In accordance with the NERC Bylaws, Section 1100 of the Rules of Procedure, and the delegation agreements...

AI summary NERC allocates statutory funding requirements for reliability activities via NEL (Net Energy for Load) among load-serving entities in the U.S., Canada, and Mexico, as approved by FERC. NEL distributes costs across regions and LSEs, with specific exceptions for Ontario and Quebec noted in filings and a 2009 FERC order.

Table 1 Compliance Schedule for Standards CIP-002-1 through CIP-009-1 Balancing Authorities and Transmission Operators Required to Self-certify to UA Standard 1200, and Reliability Coordinators End of 2nd Qtr 2007 End of 2nd Qtr 2008 End o...

AI summary The text presents a compliance schedule for various standards (CIP-002-1 through CIP-009-1) related to cybersecurity, incident reporting, and recovery planning for Balancing Authorities, Transmission Operators, and Load-Serving Entities. It outlines compliance milestones including Baseline Work, Supplemental Compliance, Compliance, and Annual Compliance.

ERO Funding NERC and the Board acknowledge that the costs associated with I\JERC and regional councils are currently included, directly or indirectly, in thl~ rates of entities sUbject to the Board's jurisdiction. The parties agree on the...

AI summary NERC and the Board agree that current funding methods for NERC and regional councils should continue, with costs included in rates of entities under the Board's jurisdiction. NERC will file annual budgets with the Board for review, ensuring fair allocation based on net-energy-for-load shares.

J. Finance and Controls - 1. Reflecting stakeholder comments in budgets. - a. NERC will continue to strive to improve its business plan and budget development processes and presentations. NERC, in collaboration with the Regional Entities,...

AI summary NERC outlines improvements to budget processes, including stakeholder engagement, standardized terms, and multi-year planning. It addresses FERC queries, reaffirms NEL-based cost allocation, and discusses Canadian cost allocations considering FERC-specific requirements. Strategic goals and compliance monitoring are emphasized in business plans.