effectiveness and efficiency update and efficiency up… · structure/approach to improve...

Effectiveness and Efficiency Update

November 6, 2018

Working Draft

RELIABILITY | ACCOUNTABILITY2

• Objectives Enhance ERO effectiveness in executing its statutory functions, recognizing

the value of industry expertise Improve the efficiency of ERO operations and use of stakeholder resources

• Four-legged approach

Objectives and Approach

Stakeholder EngagementNERC

Initiatives

ERO Enterprise “Coordination costs/

Opportunities” Regional Entity

InitiativesWorking Draft


• Current and ongoing efforts E-ISAC long-term strategy Standards efficiency review Reorganization of departments and elimination of five open positions Travel and meeting cost-control efforts o Additional meeting space in Atlanta officeo Leveraging NERC and Regional Entity (RE) sites o Establishing multi-year commitments with hotels

• Future efforts Work with applicable stakeholder groups to evaluate program activities Continue to fine tune organization as programs mature

NERC Efforts

Working Draft


• Current and ongoing efforts Added meeting space/holding more meetings on site Reorganization of committee structures (FRCC, MRO, SERC, WECC) Limiting in-person attendance at offsite meetings when remote

attendance is practical Reallocation of staff in response to shifting priorities vs. increasing staff

• Future efforts Reduction in software licensing costs resulting from implementation of the

new Compliance Monitoring and Enforcement Program (CMEP) tool

Regional Entities


• Current and ongoing efforts Combined, weighted average of NERC and RE budgets

without E-ISAC decreasing in 2019 Multi-Regional Registered Entity (MRRE) program Centralized some enforcement processes (e.g., consolidated hearing process) Increased alignment in Compliance Monitoring and Enforcement Program ERO Enterprise IT programo Facilitates efficiency of data submittals, compliance resources, and information-

sharing (e.g., CMEP and Registration tools, TEAMS, MIDAS)o Leverages purchasing power for software licensing (e.g., CMEP tool, Deception

Technology software) Biennial ERO Enterprise Effectiveness Survey with resulting action plans

• Potential future efforts Examine joint purchasing/risk sharing opportunities Explore opportunities to use ERO IT program model to capture efficiencies

ERO Enterprise


Stakeholder Engagement /Committees

• The current model has been in place for over ten years Model is expensive and time consuming for NERC members The ERO Enterprise has matured Several REs have had success enhancing their committee models

• Committee “silos” blurring Committees activities increasingly overlap New technology requires cross-cutting rethinking of many utility paradigms

• Changing industry model Advances in new and unfamiliar technologies (e.g., inverters, batteries) Risk profiles changing (e.g., fuel assurance, ERS preservation with resource

mix changes)


Current NERC Stakeholder Committees


OC, PC, and CIPC: Increasing Convergence

Working Draft


OC, PC, and CIPC: Future State

• Is there a different structure? Strengthen alignment of stakeholder input with ERO Enterprise priorities Accommodate the changing industry model with focus on reliability and

security risks from a strategic planning, operating and security perspective Effectively address the increasing overlap between the committees driven

by the current and evolving industry model and convergence of issues? Achieve a higher level of industry participation (effectiveness) and more

cost-effectively leverage subject matter expertise (efficiency)? o Increase effectiveness of industry and ERO Enterprise resource allocationo Balance the burden and benefits of time and travelo Ensure continued availability of industry subject matter expertise o Consider committee succession planning to fortify stakeholder leadership

Right people working on the right issues


Potential Concept: Shift from Standing Committees to Mission-driven Task Forces

Planning Committee

Operating Committee Committee

CIPCommittee

SC1 SC2 TF1 TFn…

• Balanced participation model but with a participant selection process that ensures the best technical expertise is brought to bear

• Develop focused risk priorities across operating, planning, and CIP, and develop clearly chartered task forces to address risk mitigation

• Strengthen linkages to RISC and ERO Enterprise Operating Plan

• The “right people for the right task”

• Clear, results oriented charters

• Task Force disbands when mission is complete

• Subcommittees used only for sustained activities

• Mix of operating, planning, CIP, and blended issues, consistent with RISC priorities and ERO Enterprise Operating Plan

Technical Council(s)


Next Steps

• Create a joint staff/stakeholder working group reporting to the Board building on this concept

• Develop a proposal to restructure NERC’s technical committee structure/approach to improve effectiveness and efficiency: Assess where we are today, and need to be in the future Understand the REs’ experiences and approaches Develop an agreed upon model going forward and address key questions

(e.g., associated risks, pros/cons, how to populate membership, etc.) Create an implementation plan and, a proposed committee and task force

charter template

• Review the proposal with full MRC and stakeholders Take in stakeholder input for improvements

effectiveness and efficiency update and efficiency up… · structure/approach to improve...

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