2016-10-04T16:00:56-05:00 2015-12-31 560574444 CHERRY BEKAERT LLP 1111 Metropolitan Ave Ste 1000 Charlotte NC 28204 990 2015-01-01 203311003 SERC RELIABILITY CORPORATION SERC 7043577372 3701 ARCO CORPORATE DRIVE No 300 CHARLOTTE NC 28273 GARY TAYLOR CEO 7043577372 2016-09-29 1 Kellianne F Benson P01345659 7043771678 2015 2017-02-10 21:41:12Z GARY TAYLOR 3701 ARCO CORPORATE DRIVE STE 300 CHARLOTTE NC 28273 16067303 0 X WWW.SERC1.ORG X 2005 NC TO PROMOTE AND IMPROVE THE RELIABILITY, ADEQUACY, AND CRITICAL INFRASTRUCTURE OF THE ELECTRICITY SUPPLY FOR THE SOUTH AND CENTRAL UNITED STATES. 52 52 83 956 0 0 0 0 13734499 13915544 2054 4827 2594692 2146932 16331245 16067303 0 0 0 0 11200344 11239535 0 0 0 4204281 4688849 15404625 15928384 926620 138919 9207473 8174625 4869347 3697580 4338126 4477045 X THE MISSION OF SERC RELIABILITY CORPORATION IS TO COMPREHENSIVELY MONITOR AND ENFORCE COMPLIANCE WITH THE RELIABILITY STANDARDS AMONG ALL USERS, OWNERS AND OPERATORS OF THE BULK-POWER SYSTEM IN THE SERC REGION. THE COMPLIANCE MONITORING AND ENFORCEMENT PROGRAM WILL BE CONDUCTED WITH INTEGRITY, CONSISTENCY, CONFIDENTIALITY, FAIRNESS, INDEPENDENCE AND IMPARTIALITY. The members are owners, operators, or users of the bulk electric system of the sixteen state region in the southeastern and central United States. 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 AND ORGANIZATION REGISTRATION AND CERTIFICATION PROGRAM IS IMPLEMENTED BY SERC'S COMPLIANCE AND ENFORCEMENT STAFFS, WHICH ARE INDEPENDENT OF STAKEHOLDERS AND REGISTERED ENTITIES. TO ACCOMPLISH THIS OBJECTIVE, SERC'S COMPLIANCE MONITORING AND ENFORCEMENT AND ORGANIZATION REGISTRATION AND CERTIFICATION PROGRAM AREA IS FURTHER DIVIDED INTO FOUR AREAS: COMPLIANCE MONITORING, COMPLIANCE PROGRAMS, ENTITY ASSESSMENTS AND MITIGATION, AND ENFORCEMENT. SERC'S COMPLIANCE STAFF IMPLEMENTS THE COMPLIANCE MONITORING PROCESSES AND ORGANIZATION, REGISTRATION, AND CERTIFICATION ACTIVITIES PURSUANT TO THE DELEGATION AGREEMENT AND UNIFORM COMPLIANCE MONITORING AND ENFORCEMENT PROGRAM (CMEP). THE COMPLIANCE PROGRAM CONSISTS OF FOUR PRIMARY FUNCTIONAL AREAS: MONITORING AREA, RESPONSIBLE FOR CONDUCTING COMPLIANCE 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 ALL NON-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 THE ISSUE 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.ENFORCEMENT STAFF 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 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 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 BES. The RAPA function identifies reliability risks to the BES 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 BES 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 BES 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 0 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 24 0 1 83 1 0 0 0 0 0 0 X 52 52 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 NC X JENNIFER KELLY 7043577372 3701 ARCO CORPORATE DRIVE STE 300 CHARLOTTE NC 28273 Jason Marshall- ACES Power Marketin Director 0.30 X 0 0 0 Ray Phillips - Alabama Municipal El 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 Cliff Evans- Cogentrix Energy Power 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 JOSEPH MATRANGA - OCCIDENTAL CHEMIC 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 Thomas Bowe- PJM Interconnection LL 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 CHRISTINE FARLEY - THE ENERGY AUTHO DIRECTOR 0.30 X 0 0 0 LOU OBERSKI - VIRGINIA ELECTRIC AND Director 0.30 X 0 0 0 DENNIS BOYD - CUSTOMER Director 0.30 X 0 0 0 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 Robert Scott Henry President/ CEO 40.00 X 441667 0 78034 JENNIFER KELLY DIR. OF FINANCE 40.00 X 200317 0 42427 MARISA SIFONTES General Counsel 40.00 X 265096 0 59920 Gary Taylor vice president/coo 40.00 X 265050 0 22650 Carter Edge Director of coordinated activities 40.00 X 219645 0 54122 Joe Spencer Liason 40.00 X 182486 0 39209 Janice Carney Senior Compliance Engineer 40.00 X 172611 0 37161 Mike Vastano Senior Compliance Auditor 40.00 X 170970 0 25976 mark ladrow senior compliance assessment engineer 40.00 X 171029 0 43903 2088871 0 403402 33 0 1 0 Energy Cloud services 108 South Main Street Salisbury NC 28144 IT CoNSULTING 201406 Power Advisors 4408 Jack in the Pulpit Circle Manlius NY 13104 Reliability Services Consulting 138055 WALSER TECHNOLOGY 108 SOUTH MAIN STREET SALISBURY NC 28144 IT CONSULTING 105151 3 MEMBER ASSESSMENT 900099 13731034 13731034 Workshop Revenue 900099 184510 184510 13915544 4827 4827 PENALTY SANCTIONS 900099 1787000 1787000 MISCELLANEOUS INCOME 900099 359932 359932 2146932 16067303 16062476 0 4827 1320642 7443529 931968 977760 565636 82370 65408 1351414 95607 171953 750800 526585 288236 377429 39558 CONTRACTS 917406 22083 15928384 4170822 3446987 3154941 3331496 896504 223667 184338 262529 1993851 1083905 800868 909946 9207473 8174625 2318594 2516280 2550753 1181300 4869347 3697580 X 4338126 4477045 4338126 4477045 9207473 8174625 138919 0 X X 0 1 X 1 0 317760 79328 238432 1676091 1004577 671514 909946 X 16067303 0 16067303 0 16067303 15928384 0 15928384 0 15928384 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, 2015 OR 2014 AND, ACCORDINGLY, NO LIABILITY HAS BEEN ACCRUED. THE CORPORATION IS NO LONGER SUBJECT TO TAX EXAMINATIONS FOR YEARS PRIOR TO 2012. X X X X 0 0 0 Robert Scott Henry President/ CEO 324167 0 117500 0 0 0 50469 0 27565 0 519701 0 0 0 JENNIFER KELLY DIR. OF FINANCE 158398 0 41919 0 0 0 28889 0 13538 0 242744 0 0 0 MARISA SIFONTES General Counsel 212379 0 52717 0 0 0 37390 0 22530 0 325016 0 0 0 Gary Taylor vice president/coo 265050 0 0 0 0 0 21467 0 1183 0 287700 0 0 0 Carter Edge Director of coordinated activities 181730 0 37915 0 0 0 31787 0 22335 0 273767 0 0 0 Joe Spencer Liason 160501 0 21985 0 0 0 25844 0 13365 0 221695 0 0 0 Janice Carney Senior Compliance Engineer 151068 0 21543 0 0 0 24395 0 12766 0 209772 0 0 0 Mike Vastano Senior Compliance Auditor 148960 0 22010 0 0 0 24038 0 1938 0 196946 0 0 0 mark ladrow senior compliance assessment enginee 150878 0 20151 0 0 0 24465 0 19438 0 214932 0 0 0 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 11 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 XII, Line 2c: The process has not changed from prior year.