Reliability Assurance I nitiative (RAI ) Progress Report Jerry - PowerPoint PPT Presentation

Reliability Assurance I nitiative (RAI ) Progress Report Jerry Hedrick, Director of Compliance Operations and Regional Entity Oversight February 26, 2014

2013 Year End Progress Report • The first version of auditor handbook was completed. Auditor Handbook • Training and rollout efforts to occur in 2014. • The results to-date of pilot programs are being compiled. Prototypes and • Evaluation criteria has been finalized Pilot Programs • The assessment timeline and 2014 deliverables are set. • User guide to support improved self reporting process completed Improvements to in December 2013. Self-Reporting • Request for broader industry review in January 2014. • Triage process implemented across ERO by January 1, 2014 to expedite disposition of minimal risk issues. FFT Enhancements • Enforcement pilots to test aggregation and exercise of enforcement discretion under way. 2 RELI ABI LI TY | ACCOUNTABI LI TY

2014 Timeline for Pilot Program Development Jan Feb March April May June July Aug Sep Oct Nov Dec January – Pilot evaluation criteria finalized April – ERO executive management presented with recommend audit design October – Finalized compliance audit design approved for training and deployment in 2015 Communication will occur through each phase of evaluation, design, and approval. Key Outputs • Defined risk approach that supports two way discussion • Evaluation criteria results in appropriately scoped audits based on an entities size and risk • Control evaluation is clearly defined and understood 3 RELI ABI LI TY | ACCOUNTABI LI TY

End-State RAI Processes Maturity Continuum Mature controls / No defined controls Risk assessment May require increased Eligible for adjustment scope, monitoring or in scope, monitoring testing and related testing Not eligible for May be eligible for aggregation/logging aggregation/logging Presumption of No presumption of discretion discretion 4 RELI ABI LI TY | ACCOUNTABI LI TY

Please send any questions or comments to: RAIcomments@nerc.net 5 RELI ABI LI TY | ACCOUNTABI LI TY