ERO Budgets up 3.8%; Assessments up 2.9%

Yardi Matrix

Jun 3, 2019 | Rich Heidorn Jr.

NERC and the regional entities are proposing almost $207 million in spending in 2020, a 3.8% increase, while assessments are projected to increase by 2.9%.

By Rich Heidorn Jr.

NERC and the regional entities are proposing almost $207 million in spending in 2020, a 3.8% increase. Assessments are projected to increase by 2.9%.

The Electric Reliability Organization Enterprise budgets include a 9.8% spending incr e ase for the Midwest Reliability Organization, which is absorbing the former SPP Regional Entity’s compliance enforcement duties, and a 35.2% jump for SERC Reliability, which is expanding to peninsular Florida with the phase out of the Florida Reliability Coordinating Council. (See FERC OKs SERC’s Expansion into Florida.)

Including the elimination of about 21 jobs at FRCC, and the addition of 20 at SERC, total ERO Enterprise headcount is projected at about 698, an increase of about 18.

The preliminary budgets were presented to the Board of Trustees’ Finance and Audit Committee (FAC) meeting Thursday. Final draft budgets will be posted July 15 and discussed at a July 18 FAC webinar. The board is scheduled to approve the budgets on Aug. 15 and submit them for approval by FERC and Canadian authorities Aug. 26.

The Compliance Monitoring and Enforcement Program (49%) and Reliability Assessment and Performance Analysis (18%) account for two-thi r ds of the ERO Enterprise’s spending.

NERC’s proposed budget is almost $83 million, a 3.8% increase driven by a 13.3% boost in spending for the Electricity Information Sharing and Analysis Center (E-ISAC). Excluding the E-ISAC — which will account for 11% of the ERO Enterprise budget and 27% of NERC’s — the organization’s spending will decrease slightly. (See “E-ISAC Continues Growth,” NERC Technology & Security Committee Briefs: May 8, 2019.)

In presentations to the committee, the REs projected salary inflation of about 3 to 3.5%, and benefits increases ranging from about 5 to 6% for MRO and SERC to 14% for Texas Reliability Entity.

TRE is also projecting its rent and utilities costs will increase nearly 28% when it renews the lease on its Austin headquarters in late 2020.

ReliabilityFirst’s budget, which is increasing 4.4%, includes funding for “overlap” hires to prepare for the departure for retiring employees. About 11% of RF’s employees are at or over retirement age.

SERC is projecting a 35% increase in meeting and travel costs related to the addition of the FRCC entities and the expansion of its board Executive Committee to 15 from 12.

BOT FAC MRO RF SERC Texas RE