2024-09-20T07:33:42-05:00 2023-12-31 561434747 GREERWALKER LLP 227 WEST TRADE ST SUITE 1100 CHARLOTTE NC 28202 990 2023-01-01 203311003 SERC RELIABILITY CORPORATION SERC 7043577372 3701 ARCO CORPORATE DRIVE 300 CHARLOTTE NC 28273 JASON BLAKE PRESIDENT & CEO 7043577372 2024-09-19 1 0 PAULA P TILLEY P00051456 7043770239 2024-08-27 2023 2024-08-08 14:25:15Z JASON BLAKE 3701 ARCO CORPORATE DRIVE 300 CHARLOTTE NC 28273 55106512 0 X WWW.SERC1.ORG X 2005 NC THE MISSION OF THE SERC RELIABILITY CORPORATION (SERC) IS TO ASSURE EFFECTIVE AND EFFICIENT REDUCTION OF RISKS TO THE RELIABILITY AND SECURITY OF THE BULK POWER SYSTEM. SERC PROVIDES STATUTORY FUNCTIONS CALLED FOR IN SECTION 215 OF THE FEDERAL POWER ACT, IN ACCORDANCE WITH ITS DELEGATION AGREEMENT BETWEEN SERC AND THE NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC). SERC PROVIDES THE FOLLOWING FUNCTIONS: ANALYZE EVENTS TO IDENTIFY LESSONS LEARNED THAT WILL IMPROVE RELIABILITY; PROMOTE BPS RELIABILITY, ADEQUACY AND SECURITY; HELP DEVELOP RELIABILITY STANDARDS FOR THE NORTH AMERICAN BULK POWER SYSTEM (BPS) AND THE SERC REGION; MONITOR AND ENFORCE APPROVED MANDATORY RELIABILITY STANDARDS; REGISTER AND CERTIFY RESPONSIBLE ENTITIES UNDER THE RELIABILITY COMPLIANCE PROGRAM; ASSESS THE BPS PAST, PRESENT, AND FUTURE RISK PROFILE IN ORDER TO ASSURE RELIABILITY, ADEQUACY, AND SECURITY; AND TRAIN OPERATING PERSONNEL TO ASSURE COMPETENCE. 18 18 109 788 0 0 0 0 26522464 32531176 118735 648813 0 0 26641199 33179989 0 0 0 0 21713060 24249602 0 0 0 4817420 4688300 26530480 28937902 110719 4242087 17708627 21744979 7013757 6684945 10694870 15060034 X THE MISSION OF THE SERC RELIABILITY CORPORATION (SERC) IS TO ASSURE EFFECTIVE AND EFFICIENT REDUCTION OF RISKS TO THE RELIABILITY AND SECURITY OF THE BULK POWER SYSTEM. SERC PROVIDES STATUTORY FUNCTIONS CALLED FOR IN SECTION 215 OF THE FEDERAL POWER ACT, IN ACCORDANCE WITH ITS DELEGATION AGREEMENT BETWEEN SERC AND THE NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC). SERC PROVIDES THE FOLLOWING FUNCTIONS: ANALYZE EVENTS TO IDENTIFY LESSONS LEARNED THAT WILL IMPROVE RELIABILITY; PROMOTE BPS RELIABILITY, ADEQUACY AND SECURITY; HELP DEVELOP RELIABILITY STANDARDS FOR THE NORTH AMERICAN BULK POWER SYSTEM (BPS) AND THE SERC REGION; MONITOR AND ENFORCE APPROVED MANDATORY RELIABILITY STANDARDS; REGISTER AND CERTIFY RESPONSIBLE ENTITIES UNDER THE RELIABILITY COMPLIANCE PROGRAM; ASSESS THE BPS PAST, PRESENT, AND FUTURE RISK PROFILE IN ORDER TO ASSURE RELIABILITY, ADEQUACY, AND SECURITY; AND TRAIN OPERATING PERSONNEL TO ASSURE COMPETENCE. 0 0 THE COMPLIANCE MONITORING AND ENFORCEMENT PROGRAM (CMEP) IS THE LARGEST PROGRAM AREA AT SERC, AND IS IMPLEMENTED PURSUANT TO SERC'S DELEGATION AGREEMENT AND THE NERC UNIFORM CMEP DEVELOPED UNDER SECTION 215(C) OF THE FEDERAL POWER ACT AND APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION. THE SERC CMEP IS IMPLEMENTED BY PERSONNEL THAT ARE INDEPENDENT OF STAKEHOLDERS AND REGISTERED ENTITIES. THE SERC CMEP IS FURTHER DIVIDED INTO FIVE AREAS: COMPLIANCE MONITORING; COMPLIANCE PROGRAMS AND SERVICES; ENTITY ASSESSMENT AND MITIGATION; ORGANIZATION REGISTRATION AND CERTIFICATION; AND ENFORCEMENT.1.) THE COMPLIANCE MONITORING AREA IS RESPONSIBLE FOR CONDUCTING COMPLIANCE AUDITS, SPOT CHECKS, AND COMPLIANCE INVESTIGATIONS; FOR SERVING AS SUBJECT MATTER EXPERTS FOR ALL STANDARDS; AND FOR IMPLEMENTING THE PROCESS FOR TECHNICAL FEASIBILITY EXCEPTIONS (TFE) TO THE NERC CRITICAL INFRASTRUCTURE PROTECTION (CIP) RELIABILITY STANDARDS.2.) THE COMPLIANCE PROGRAMS AND SERVICES AREA IS RESPONSIBLE FOR IMPLEMENTING AND DEPLOYING CMEP-RELATED ANALYTICS AND COMPLIANCE ASSESSMENTS.3.) THE ENTITY ASSESSMENT AND MITIGATION AREA IS RESPONSIBLE FOR IMPLEMENTING AND DEPLOYING ENTITY INHERENT RISK ASSESSMENTS (IRA) AND INTERNAL CONTROLS EVALUATIONS (ICE); FOR SERVING AS THE SINGLE POINT OF CONTACT FOR ALL NON-COMPLIANCE ISSUES DISCOVERED AND/OR SELF-REPORTED TO THE REGION; FOR DETERMINING THE COMPLETE SCOPE OF VIOLATIONS; FOR DETERMINING THE ACTUAL AND POTENTIAL RISK POSED BY VIOLATIONS TO BPS RELIABILITY; AND FOR REVIEWING REGISTERED ENTITY MITIGATING ACTIVITIES TO ENSURE THAT ENTITIES CORRECT ISSUES AND PREVENT RECURRENCE THROUGH APPROPRIATE MITIGATION.4.) THE ORGANIZATION REGISTRATION AND CERTIFICATION AREA IS RESPONSIBLE FOR REGISTERING OWNERS, OPERATORS, AND USERS OF THE BPS REQUIRED TO COMPLY WITH NERC RELIABILITY STANDARDS; AND FOR CERTIFYING APPLICABLE ENTITIES WHO PERFORM RELIABILITY-RELATED FUNCTIONS.5.) THE ENFORCEMENT AREA EVALUATES ALL POSSIBLE VIOLATIONS OF RELIABILITY STANDARDS BY SERC REGISTERED ENTITIES AND CONDUCTS A THOROUGH ASSESSMENT TO DETERMINE IF A VIOLATION ACTUALLY OCCURRED. THE ENFORCEMENT STAFF NOTIFIES THE REGISTERED ENTITY OF ITS FINDINGS REGARDING THE VIOLATION AND ANY APPLICABLE PENALTIES OR SANCTIONS. THE ENFORCEMENT STAFF MAY ALSO ENGAGE IN SETTLEMENT NEGOTIATIONS WITH THE REGISTERED ENTITY. THE PROPOSED ENFORCEMENT ACTION, ALONG WITH ANY PROPOSED PENALTY OR SANCTIONS, IS SUBMITTED TO NERC FOR ITS REVIEW AND APPROVAL, AND SUBSEQUENT SUBMITTAL TO FERC. IF A REGISTERED ENTITY CHALLENGES THE FINDINGS OF THE VIOLATION AND/OR PENALTY, THE ENFORCEMENT STAFF PROSECUTES THE CASE BEFORE A HEARING BODY MADE UP OF REPRESENTATIVES FROM THE NERC BOARD OF TRUSTEES AND SERC BOARD OF DIRECTORS. THE SECOND LARGEST PROGRAM AT SERC IS THE RELIABILITY ASSESSMENTS AND PERFORMANCE ANALYSIS (RAPA) PROGRAM. SERC'S RAPA PROGRAM PROVIDES ANALYSIS, DATA GATHERING, AND ANALYSIS OF EVENTS ON THE BPS. THE RAPA FUNCTION IDENTIFIES RELIABILITY RISKS TO THE BPS IN THE SERC FOOTPRINT FOR THE PURPOSE OF INTEGRATED RISK ANALYSIS. RAPA'S MISSION IS TO PROMOTE A CULTURE OF RELIABILITY EXCELLENCE AMONG THE OWNERS OF BPS ASSETS. THE PROGRAM ACCOMPLISHES THIS MISSION BY IDENTIFYING RISKS TO RELIABILITY, ANALYZING PERFORMANCE AND PRIORITIZING SIGNIFICANT RISKS.SERC CONDUCTS AN INDEPENDENT RELIABILITY ASSESSMENT OF THE BPS WITHIN THE SERC REGION, INCLUDING DATA GATHERING AND ANALYSIS. THE ASSESSMENT PROGRAM USES INFORMATION FROM ITS INTERNAL DATA COLLECTION SOURCES ALONG WITH OTHER PROGRAMS, SUCH AS NERC TRANSMISSION AVAILABILITY DATA SYSTEM (TADS), GENERATING AVAILABILITY DATA SYSTEMS (GADS), AND DEMAND RESPONSE AVAILABILITY DATA SYSTEM (DADS). SERC EVALUATES THE OVERALL RELIABILITY, PERFORMANCE, AND ADEQUACY OF THE SERC REGION AND REPORTS ITS RESULTS TO NERC. SERC'S WORK SUPPORTS NERC'S OBLIGATION TO PERFORM SIMILAR ANALYSIS OF THE INTERCONNECTED NORTH AMERICAN BPS. THE THIRD LARGEST PROGRAM IS TRAINING, EDUCATION, AND OPERATOR CERTIFICATION. THE SERC TRAINING, EDUCATION, AND OPERATOR CERTIFICATION PROGRAM PROVIDES EDUCATION AND TRAINING NECESSARY TO OBTAIN ESSENTIAL KNOWLEDGE ON THE OPERATIONS OF THE BPS. SERC TRAINING AND EDUCATION PROGRAMS SUPPORT THE CONTINUING EDUCATION CERTIFIED SYSTEM OPERATORS IN THE SERC REGION. THE PROGRAM'S TARGET AUDIENCE IS BPS OPERATING PERSONNEL, SYSTEM OPERATORS, OPERATIONS SUPPORT PERSONNEL, AND TRAINING PERSONNEL. SERC SUPPORTS THE DEVELOPMENT OF SERC'S STAFF TRAINING AND EDUCATION IN POWER SYSTEM OPERATING TOPICS.SERC ALSO PROVIDES EDUCATION TO REGISTERED ENTITIES THROUGH ROBUST OUTREACH ENGAGEMENTS, FOCUSING PRIMARILY ON COMPLIANCE ACTIVITIES, INTERNAL CONTROLS, AND EMERGING RELIABILITY ISSUES. 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 10 0 1 109 1 0 0 0 0 0 0 0 0 X 18 18 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 NC X GEORGE KROGSTIE 7043577372 3701 ARCO CORPORATE DRIVE STE 300 CHARLOTTE NC 28273 JASON BLAKE PRESIDENT/CEO 40.00 X 688172 0 78378 TIMOTHY PONSETI VICE PRESIDENT - OPERATIONS 40.00 X 456956 0 70952 HOLLY HAWKINS VP - GENERAL COUNSEL & CORPORATE SECRETARY 40.00 X 401971 0 47019 GEORGE KROGSTIE CFO & CORPORATE TREASURER 40.00 X 343664 0 78705 BRIAN THUMM IMPROVEMENT & RISK MANAGER 40.00 X 321133 0 66421 MELINDA MONTGOMERY SR DIRECTOR - ADVANCED ANALYTICS & TECHNICAL SERVI 40.00 X 309366 0 56315 STEPHEN BROWN DIRECTOR - CYBER & PHYSICAL SECURITY 40.00 X 245083 0 62507 WILLIAM PETERSON DIRECTOR - ENTITY DEVELOPMENT & COMMUNICATION 40.00 X 240668 0 68033 EDWARD FRANKS DIRECTOR - RELIABILITY ASSURANCE 40.00 X 236536 0 60142 TODD CURL SENIOR MANAGER - RISK AWARENESS & OVERSIGHT 40.00 X 235117 0 57010 LONNI DIECK LEAD INDEPENDENT DIRECTOR 3.00 X X 139462 0 0 DEBORAH WHEELER INDEPENDENT DIRECTOR 3.00 X 131952 0 0 SHIRLEY BLOOMFIELD INDEPENDENT DIRECTOR 3.00 X 128826 0 0 PANDELIS XANTHAKOS CHAIR 3.00 X X 0 0 0 LISA JOHNSON VICE-CHAIR 3.00 X X 0 0 0 ADRIANNE COLLINS DIRECTOR 2.00 X 0 0 0 BOB DALRYMPLE DIRECTOR 2.00 X 0 0 0 CHRISTOPHER PETERS DIRECTOR 2.00 X 0 0 0 DOUG LEGO DIRECTOR 2.00 X 0 0 0 ERIC LAVERTY DIRECTOR 2.00 X 0 0 0 GREG FORD DIRECTOR 2.00 X 0 0 0 KEVIN WALZ DIRECTOR 2.00 X 0 0 0 RICKY ERIXTON DIRECTOR 2.00 X 0 0 0 ROGER CLARK DIRECTOR 2.00 X 0 0 0 STACY DOCHOD DIRECTOR 2.00 X 0 0 0 TIM LYONS DIRECTOR 2.00 X 0 0 0 VENONA GREAFF DIRECTOR 2.00 X 0 0 0 VIRGIL HOBBS DIRECTOR 2.00 X 0 0 0 3878906 0 645482 86 0 1 0 NETWIZE INC 702 W CONFLUENCE AVENUE SALT LAKE CITY UT 84123 TECHNOLOGY 668496 SPIREMEDIA INC DBA KIN AND CARTA 111 N CANAL STREET SUITE 700 CHICAGO IL 60606 CUSTOM SOFTWARE DEVELOPMENT 182000 GARTNER 13200 PAUL J DOHERTY PKWY FORT MYERS FL 33913 CONSULTING SERVICES 139600 WALSER TECHNOLOGY GROUP 108 SOUTH MAIN STREET SUITE 200 SALISBURY NC 28144 IT CONTRACTORS 116764 REALITY TECH INC 114 PROSPECT AVENUE WOODMERE NY 11598 IT CONTRACTORS 110979 5 MEMBER ASSESSMENT 900099 26192877 26192877 PENALTY SANCTIONS 900099 6171940 6171940 WORKSHOP REVENUE 900099 160134 160134 CONTRACTS 900099 6225 6225 32531176 648270 648270 21927066 21926523 543 543 543 33179989 32531176 0 648813 2963296 16386791 2209105 1484221 1206189 16394 34171 36379 801467 390732 766748 842352 739094 386591 598213 76159 28937902 1676364 319011 1945415 1350418 483975 794787 5441683 3466199 1053572 1975484 9191558 15822065 3357743 1483214 17708627 21744979 4769641 5144293 11530 0 2232586 1540652 7013757 6684945 X 10694870 15060034 10694870 15060034 17708627 21744979 4242087 123077 0 X X 0 1 X 1 0 1309014 1038634 270380 849806 515966 333840 3282863 1911599 1371264 1975484 INVESTMENTS - DEFERRED COMPENSATION 664706 RIGHT-OF-USE ASSETS 818508 1483214 DEFERRED COMPENSATION 664706 SHORT-TERM LEASE LIABILITY 875946 1540652 X 33266687 123077 123077 33143610 36379 36379 33179989 28901523 0 28901523 36379 36379 28937902 PART X, LINE 2: THE CORPORATION IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE AND, THEREFORE, NO PROVISION FOR INCOME TAXES HAS BEEN MADE IN THE ACCOMPANYING FINANCIAL STATEMENTS. THE CORPORATION RECORDS LIABILITIES FOR INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN WHEN THOSE POSITIONS ARE DEEMED UNCERTAIN TO BE UPHELD IN AN EXAMINATION BY TAXING AUTHORITIES. NO LIABILITIES FOR UNCERTAIN INCOME TAX POSITIONS WERE RECORDED AS OF DECEMBER 31, 2023 AND 2022. PART VI, LINE 1E: SOFTWARE, COMPUTERS, AND FURNITURE MAKE UP THE AMOUNT IN THE "OTHER" FIXED ASSET CLASS. X 1 1 X X X X X 0 1 0 JASON BLAKE PRESIDENT/CEO 460711 0 203250 0 24211 0 43500 0 34878 0 766550 0 0 0 TIMOTHY PONSETI VICE PRESIDENT - OPERATIONS 315382 0 117569 0 24005 0 43500 0 27452 0 527908 0 0 0 HOLLY HAWKINS VP - GENERAL COUNSEL & CORPORATE SEC 311696 0 78064 0 12211 0 43500 0 3519 0 448990 0 0 0 GEORGE KROGSTIE CFO & CORPORATE TREASURER 266535 0 67899 0 9230 0 43500 0 35205 0 422369 0 0 0 BRIAN THUMM IMPROVEMENT & RISK MANAGER 249246 0 67768 0 4119 0 43500 0 22921 0 387554 0 0 0 MELINDA MONTGOMERY SR DIRECTOR - ADVANCED ANALYTICS & T 241853 0 64973 0 2540 0 43414 0 12901 0 365681 0 0 0 STEPHEN BROWN DIRECTOR - CYBER & PHYSICAL SECURITY 199619 0 43780 0 1684 0 34964 0 27543 0 307590 0 0 0 WILLIAM PETERSON DIRECTOR - ENTITY DEVELOPMENT & COMM 199827 0 40388 0 453 0 35151 0 32882 0 308701 0 0 0 EDWARD FRANKS DIRECTOR - RELIABILITY ASSURANCE 201511 0 33825 0 1200 0 34107 0 26035 0 296678 0 0 0 TODD CURL SENIOR MANAGER - RISK AWARENESS & OV 191102 0 42114 0 1901 0 29001 0 28009 0 292127 0 0 0 PART I, LINE 1A OCCASIONAL TAXABLE COMPENSATION IN THE FORM OF GIFT CERTIFICATES IS GROSSED UP FOR TAXES FOR ALL EMPLOYEES. PART I, LINE 4B SCHEDULE J, PART I, LINE 4B: 457B PLAN: LARRY BLAKE $22,500 457B PLAN: TIMOTHY PONSETI $17,935 457B PLAN: HOLLY HAWKINS $10,232 457B PLAN: GEORGE KROGSTIE $5,271 457B PLAN: BRIAN THUMM $1,936 FORM 990, PART VI, SECTION A, LINE 6 SERC RELIABILITY CORPORATION IS AN ORGANIZATION WITH MEMBERS WHO DESIGNATE THE REPRESENTATIVE TO THE GOVERNING BODY, WHICH MAKES SIGNIFICANT DECISIONS FOR THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A EACH BOARD MEMBER HAS A VOTE IN ELECTING MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B THE SERC RELIABILITY CORPORATION MEMBERS' BODY HAS THE AUTHORITY TO ELECT BOARD MEMBERS AND CHANGE BY-LAWS. FORM 990, PART VI, SECTION B, LINE 11B THE FINANCE AND AUDIT COMMITTEE REVIEWS AND AUTHORIZES THE FILING OF THE 990. A COMPLETE COPY OF THE 990 IS PROVIDED TO THE BOARD OFFICERS BEFORE IT IS FILED, AND A REDACTED COPY IS PROVIDED TO THE REMAINING BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 12C SERC HAS A WRITTEN CONFLICT OF INTEREST POLICY, IN WHICH ALL EMPLOYEES AND BOARD MEMBERS ARE REQUIRED TO REVIEW AND COMPLETE A WRITTEN QUESTIONNAIRE ON CONFLICTS ON AN ANNUAL BASIS. ALL SERC STAFF CONFLICTS ARE CONSOLIDATED ON A "SERC STAFF RECUSAL REQUIREMENTS" DOCUMENT. EACH SERC REPRESENTATIVE MUST RECUSE HIMSELF OR HERSELF FROM PARTICIPATION IN ANY PARTICULAR MATTER INVOLVING THE SUBJECT OF A CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE OFFICERS OF THE INDEPENDENT BOARD MEET IN EXECUTIVE SESSION TO REVIEW AND APPROVE THE SALARY AND INCENTIVE PAY FOR THE OFFICERS OF THE ORGANIZATION. THE BOARD OFFICERS RELY UPON INDUSTRY DATA AND COMPENSATION STUDIES PERFORMED TO DETERMINE THE REASONABLENESS OF THE EXECUTIVES' COMPENSATION PACKAGES. INDUSTRY AND COMPENSATION STUDY DATA IS REFRESHED ANNUALLY. THE DELIBERATION AND DECISION IS CONTEMPORANEOUSLY SUBSTANTIATED IN MEETING MINUTES. THE BOARD-APPOINTED HUMAN RESOURCE AND COMPENSATION COMMITTEE REVIEWS AND ENDORSES THE PRESIDENT'S RECOMMENDATIONS REGARDING THE COMPENSATION OF KEY EMPLOYEES AND OTHER HIGHEST PAID EMPLOYEES. THE COMMITTEE RELIES UPON INDUSTRY DATA AND COMPENSATION STUDIES PERFORMED TO DETERMINE REASONABLENESS OF THE COMPENSATION OF HIGHEST PAID EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 ALL GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR.