2017-10-27T10:29:57-05:00 2016-12-31 560574444 CHERRY BEKAERT LLP 1111 Metropolitan Ave Ste 1000 Charlotte NC 28204 990 2016-01-01 203311003 SERC RELIABILITY CORPORATION SERC 7043577372 3701 ARCO CORPORATE DRIVE No 300 CHARLOTTE NC 28273 GARY TAYLOR President & CEO 7043577372 2017-10-20 1 Amanda Adams P00748038 7043771678 68.142.180.174 2017-10-20 10:40:14 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 8E0118A2D78CC4B3215E9E542689DC78818A7208 2016 2021-01-29 14:40:06Z GARY TAYLOR 3701 ARCO CORPORATE DRIVE STE 300 CHARLOTTE NC 28273 15066066 0 X WWW.SERC1.ORG X 2005 NC TO IDENTIFY, PRIORITIZE, AND ASSURE EFFECTIVE AND EFFICIENT MITIGATION OF RISKS TO THE RELIABILITY AND SECURITY OF THE BULK POWER SYSTEM. 44 44 83 1045 0 0 0 0 13915544 13932121 4827 4376 2146932 1129569 16067303 15066066 0 0 0 0 11239535 12508815 0 0 0 4688849 4333276 15928384 16842091 138919 -1776025 8174625 6745411 3697580 4044391 4477045 2701020 X TO IDENTIFY, PRIORITIZE, AND ASSURE EFFECTIVE AND EFFICIENT MITIGATION OF RISKS TO THE RELIABILITY AND SECURITY OF THE BULK POWER SYSTEM. 0 0 SERC PROVIDES STATUTORY FUNCTIONS THAT SUPPORT THE ELECTRIC RELIABILITY ORGANIZATION (ERO), IN ACCORDANCE WITH ITS DELEGATION AGREEMENT BETWEEN SERC AND 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 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.SERC ONLY PERFORMS FUNCTIONS CALLED FOR IN SECTION 215 OF THE FEDERAL POWER ACT THAT HAVE BEEN DELEGATED FROM NERC TO SERC.THE COMPLIANCE MONITORING AND ENFORCEMENT PROGRAM (CMEP) IS THE LARGEST PROGRAM AREA AT SERC. THE CMEP IS IMPLEMENTED BY PERSONNEL THAT ARE INDEPENDENT OF STAKEHOLDERS AND REGISTERED ENTITIES. TO ACCOMPLISH THIS OBJECTIVE, SERC'S COMPLIANCE MONITORING AND ENFORCEMENT PROGRAM AREA IS FURTHER DIVIDED INTO FIVE AREAS: COMPLIANCE MONITORING; COMPLIANCE PROGRAMS AND SERVICES; ENTITY ASSESSMENT AND MITIGATION; ORGANIZATION REGISTRATION AND CERTIFICATION; AND ENFORCEMENT.SERC'S COMPLIANCE AND ENFORCEMENT STAFFS IMPLEMENT THE COMPLIANCE MONITORING AND ENFORCEMENT PROGRAMPURSUANT TO THE DELEGATION AGREEMENT AND UNIFORM COMPLIANCE MONITORING AND ENFORCEMENT PROGRAM (CMEP). THE COMPLIANCE PORTION OF THE PROGRAM CONSISTS OF FOUR PRIMARY FUNCTIONAL AREAS: MONITORING AREA, RESPONSIBLE FOR CONDUCTINGCOMPLIANCE AUDITS, SPOT CHECKS, AND INVESTIGATIONS, AND SERVING AS SUBJECT MATTER EXPERTS FOR ALL STANDARDS AND FOR IMPLEMENTING THE PROCESS FOR TECHNICAL FEASIBILITY EXCEPTIONS TO THE CIP STANDARDS; COMPLIANCE PROGRAMS AND SERVICES AREA, RESPONSIBLE FOR IMPLEMENTING AND DEPLOYING CMEP-RELATED ANALYTICS, AND COMPLIANCE ASSESSMENTS; ENTITY ASSESSMENT AND MITIGATION AREA, RESPONSIBLE FOR IMPLEMENTING AND DEPLOYING ENTITY INHERENT RISK ASSESSMENTS AND INTERNAL CONTROL EVALUATIONS, SERVING AS THE SINGLE POINT OF CONTACT FOR ALLNON-COMPLIANCE ISSUES DISCOVERED AND/OR SELF-REPORTED TO THE REGION, DETERMINING THE COMPLETE SCOPE OF THE VIOLATION, AND THE ACTUAL AND POTENTIAL RISK TO THE BPS RELIABILITY, AND REVIEWING THE REGISTERED ENTITY'S MITIGATING ACTIVITIES TO ENSURE THAT THE ENTITY CORRECTS THEISSUE AND PREVENTS RECURRENCE; AND ORGANIZATION REGISTRATION AND CERTIFICATION AREA, RESPONSIBLE FOR REGISTERING OWNERS, OPERATORS, AND USERS OF THE BULK POWER SYSTEM FOR COMPLIANCE WITH RELIABILITY STANDARDS AND CERTIFYING APPLICABLE ENTITIES.THE ENFORCEMENT PORTION OF THE CMEP IS PERFORMED BY SERC ENFORCEMENT STAFF, WHO EVALUATE ALL POSSIBLE VIOLATIONS OF RELIABILITY STANDARDS AND CONDUCT A THOROUGH ASSESSMENT TO DETERMINE IF THERE IS A VIOLATION. 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 ENFORCEMENTACTION, 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 THE BOARD COMPLIANCE COMMITTEE, WHICH ACTS AS SERC'S HEARING BODY. SERC HAS ORGANIZED THE REMAINING TECHNICAL STAFF INTO A RELIABILITY SERVICES GROUP AND A RELIABILITY ASSESSMENT GROUP TO ADDRESS THE OTHER STATUTORY FUNCTIONS LISTED ABOVE. THESE EXPERTS IN OPERATIONS, ENGINEERING, AND ANALYSIS ASSIST REGISTERED ENTITIES IN ASSESSING AND IMPROVING RELIABILITY. IT IS IN SUPPORT OF THESE AREAS THAT SERC ENGAGES THE MAJORITY OF INDUSTRY EXPERTS ON ITS TECHNICAL COMMITTEES. The second largest program is Reliability Assessments and Performance Analysis. SERC's Reliability Assessments and Performance Analysis (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 of 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. 0 0 0 0 0 0 0 0 0 1 0 0 0 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 30 0 1 83 1 0 0 0 0 0 0 X 44 44 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 GREG FORD - GEORGIA SYSTEM OPERATIO Chair 0.30 X X 0 0 0 TIM PONSETI - TENNESSEE VALLEY AUTH Vice Chair 0.30 X X 0 0 0 Marion Lucas- Alcoa Power Generatin Secretary- Treasurer 0.30 X X 0 0 0 Jason Marshall- ACES Power Marketin Director 0.30 X 0 0 0 Mark Ennis - Alabama Municipal Elec Director 0.30 X 0 0 0 Katherine Prewitt - Alabama Power C Director 0.30 X 0 0 0 Marion Lucas- Alcoa Power Generatin Director 0.30 X 0 0 0 Maureen Borkowski- Ameren Services Director 0.30 X 0 0 0 Roger Clark - Associated Electric C Director 0.30 X 0 0 0 Mike Chambliss- Big Rivers Electric Director 0.30 X 0 0 0 Steve Eckert- Brookfield Renewable Director 0.30 X 0 0 0 Brett Kruse- Calpine Energy Service Director 0.30 X 0 0 0 Tad Johnson- City of Columbia MO DIRECTOR 0.30 X 0 0 0 Nelson Peeler- Duke Energy Carolina Director 0.30 X 0 0 0 Dan Roethemeyer- Dynergy Inc Director 0.30 X 0 0 0 Denver York- East Kentucky Power Co director 0.30 X 0 0 0 Roy Jones - ElectriCities of North Director 0.30 X 0 0 0 Jim Schott- Entergy Director 0.30 X 0 0 0 DAVID TREGO - FAYETTEVILLE PUBLIC W Director 0.30 X 0 0 0 Silvia Parada Mitchell - Florida Po Director 0.30 X 0 0 0 Jerry Donovan - Georgia Transmissio DIRECTOR 0.30 X 0 0 0 Kevin Gaden - Illinois Municipal El Director 0.30 X 0 0 0 Tom Jessee- LGE and KU Services Com Director 0.30 X 0 0 0 DAN JEWELL - LOUISIANA GENERATING L Director 0.30 X 0 0 0 Alonzo Weaver- Memphis Light Gas an Director 0.30 X 0 0 0 Todd Hillman- Midcontinent Independ Director 0.30 X 0 0 0 Doug Lego- Municipal Electric Autho director 0.30 X 0 0 0 Kent Cochran- Nashville Electric Se Director 0.30 X 0 0 0 Venona Greaff - OCCIDENTAL CHEMICAL Director 0.30 X 0 0 0 MICHAEL SMITH - OGLETHORPE POWER CO Director 0.30 X 0 0 0 MARK RINGHAUSEN - OLD DOMINION ELEC Director 0.30 X 0 0 0 TIM LYONS - OWENSBORO KY MUNICIPAL Director 0.30 X 0 0 0 Lawrence Hopkins Jr- Piedmont Elect Director 0.30 X 0 0 0 Stanley H Williams - PJM Interconne director 0.30 X 0 0 0 JAY FARRINGTON - POWERSOUTH ENERGY Director 0.30 X 0 0 0 ALISHA ANKER - PRAIRIE POWER INC DIRECTOR 0.30 X 0 0 0 PANDELIS XANTHAKOS - SOUTH CAROLINA Director 0.30 X 0 0 0 SHAWN T TOM ABRAMS - SOUTH CAROLIN Director 0.30 X 0 0 0 NATHAN L BROWN - SOUTH MISSISSIPPI Director 0.30 X 0 0 0 KENNETH LEGG - SOUTHEASTERN POWER A Director 0.30 X 0 0 0 WILLIAM HUTCHISON - SOUTHERN ILLINO Director 0.30 X 0 0 0 MICHAEL DESSELLE - SOUTHWEST POWER Director 0.30 X 0 0 0 Brad Cox - TENASKA POWER SERVICES Director 0.30 X 0 0 0 LOU OBERSKI - VIRGINIA ELECTRIC AND Director 0.30 X 0 0 0 Robert Scott Henry President/ CEO until 6/8/16 40.00 X 497162 0 36684 Gary Taylor President/CEO (former VP & COO) 40.00 X 401267 0 51139 JENNIFER KELLY DIR. OF FINANCE until 9/8/16 40.00 X 217935 0 23051 MARISA SIFONTES General Counsel until 4/15/16 40.00 X 215964 0 20381 Carter Edge REMG Direcor 40.00 X 308295 0 55816 Joe Spencer Sr. Reliability Engineer 40.00 X 185854 0 33992 Napoleon Johnson Sr. Director, Program Services 40.00 X 218245 0 50334 Brian Thumm Sr. Director, Compliance & Reliability 40.00 X 211429 0 43694 Janice Carney Sr. Compliance Engineer 40.00 X 177765 0 39832 2433916 0 354923 15 0 1 0 Energy Cloud services 108 South Main Street Salisbury NC 28144 it contractors 586608 GuidanceSolutions 4134 Del Rey Ave Marina Del Rey CA 90292 it contractors 297354 The ABEO group po box 31024 charlotte NC 28231 Strategy/proj & change management consul 232350 3 MEMBER ASSESSMENT 900099 13730986 13730986 Workshop Revenue 900099 201135 201135 13932121 4376 4376 PENALTY SANCTIONS 900099 648500 648500 MISCELLANEOUS INCOME 900099 481069 481069 1129569 15066066 15061690 0 4376 X 1463582 8469993 1087529 927060 560651 85051 37875 2055359 316675 37413 634250 423897 289954 387470 47158 18174 16842091 3446987 3167272 3331496 2416799 223667 142868 262529 305394 2184452 1471374 909946 713078 8174625 6745411 2516280 2887448 742959 684268 438341 472675 3697580 4044391 X 4477045 2701020 4477045 2701020 8174625 6745411 -1776025 0 X X 0 1 X 1 0 449069 113554 335515 1735383 1357820 377563 713078 deferred rent 472675 472675 X 15066066 0 15066066 0 15066066 16842091 0 16842091 0 16842091 Part X, Line 2: MANAGEMENT HAS EVALUATED THE EFFECT OF THE FINANCIAL ACCOUNTING STANDARDS BOARD ("FASB") GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE GUIDANCE CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS BY PRESCRIBING A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE CORPORATION'S POLICY IS TO RECORD A LIABILITY FOR ANY TAX POSITION TAKEN THAT IS BENEFICIAL TO THE CORPORATION, INCLUDING ANY RELATED INTEREST AND PENALTIES, WHEN IT IS MORE LIKELY THAN NOT THE POSITION TAKEN BY MANAGEMENT WITH RESPECT TO A TRANSACTION OR CLASS OF TRANSACTIONS WILL BE OVERTURNED BY A TAXING AUTHORITY UPON EXAMINATION. MANAGEMENT BELIEVES THERE ARE NO SUCH POSITIONS AT DECEMBER 31, 2016 OR 2015 AND, ACCORDINGLY, NO LIABILITY HAS BEEN ACCRUED. THE CORPORATION IS NO LONGER SUBJECT TO TAX EXAMINATIONS FOR YEARS PRIOR TO 2013. X X X X 1 0 0 Robert Scott Henry President/ CEO until 6/8/16 147172 0 122664 0 227326 0 23850 0 12834 0 533846 0 0 0 Gary Taylor President/CEO (former VP & COO) 329219 0 72048 0 0 0 48001 0 3138 0 452406 0 0 0 JENNIFER KELLY DIR. OF FINANCE until 9/8/16 115360 0 38845 0 63730 0 13872 0 9179 0 240986 0 0 0 MARISA SIFONTES General Counsel until 4/15/16 75728 0 45576 0 94660 0 14253 0 6128 0 236345 0 0 0 Carter Edge REMG Direcor 217691 0 90604 0 0 0 32554 0 23262 0 364111 0 0 0 Joe Spencer Sr. Reliability Engineer 162614 0 23240 0 0 0 26020 0 7972 0 219846 0 0 0 Napoleon Johnson Sr. Director, Program Services 210000 0 8245 0 0 0 30554 0 19780 0 268579 0 0 0 Brian Thumm Sr. Director, Compliance & Reliabili 171429 0 40000 0 0 0 23571 0 20123 0 255123 0 0 0 Janice Carney Sr. Compliance Engineer 155000 0 22765 0 0 0 24887 0 14945 0 217597 0 0 0 Part I, Line 4a Robert Scott Henry's last day was on June 8, 2016. he received a severance payment amount of $227,326. Jennifer Kelly's last day was on September 8, 2016. She received a severance payment amount of $63,730. Marisa Sifontes' last day was on April 15, 2016. she received a severance payment amount of $94,660. 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 ITSELF OR THROUGH THE EXECUTIVE COMMITTEE MAKES SIGNIFICANT DECISIONS FOR THE ORGANIZATION. Form 990, Part VI, Section A, line 7a EACH BOARD MEMBER HAS A WEIGHTED VOTE IN ELECTING MEMBERS OF THE GOVERNING BODY. Form 990, Part VI, Section A, line 7b THE GOVERNING BODY IS MADE UP OF OUR MEMBERS. ONCE THE BOARD APPROVES, IT DOES NOT NEED ADDITIONAL APPROVAL BY THE MEMBERS. Form 990, Part VI, Section B, line 11b A complete copy of the 990 is provided to the board officers. A redacted copy is provided to the remaining Board members before it is filed. 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 determine the salary and incentive pay for the executives of the organization. The board officers rely upon industry data and compensation studies performed to determine the reasonableness of the executives' compensation packages. Compensation studies are performed at a minimum every other year and include sources such as Towers Watson and other sources and regional reports recieved for the organization's participation in regional compensation surveys. 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 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 IX, line 11g consulting expenses 876,246. OTHER PROFESSIONAL FEES 21,724. contracts 1,157,389. Form 990, Part XII, Line 2c: The process has not changed from prior year.