2016-05-10T16:02:58-05:00 2015-12-31 GRANT THORNTON LLP 1100 PEACHTREE STREET SUITE 1200 ATLANTA GA 30309 990 2015-01-01 204821888 North American Electric Reliability Corp % MANAGEMENT NORT 4044462560 3353 Peachtree Road NE Suite STE 60 Atlanta GA 30326 MICHAEL A WALKER Sr. VP/CFO/TREASURER 4044462500 2016-05-10 true Michele N Melchior P00488037 4044462500 2016-05-10 2015 2016-09-27 15:27:22Z MICHAEL A WALKER 3353 Peachtree Road NESTE 600 Atlanta GA 30326 63688649 false X www.nerc.com X 2006 NJ To enhance the reliability and security of the bulk power in North America. 10 9 230 2300 0 0 0 58766485 63486737 -6312 6792 -57572 -159707 58702601 63333822 2500 2500 0 0 33220030 36702990 0 0 0 21388723 25633415 54611253 62338905 4091348 994917 51177783 55029893 38726843 41584036 12450940 13445857 COORDINATING, PROMOTING, AND COMMUNICATING THE RELIABILITY OF BULK POWER SYSTEM OF NORTH AMERICA, BY SETTING AND ENFORCING STANDARDS, ANALYZING SYSTEMS EVENTS, AND ASSESSING AND REPORTING ON THE ADEQUACY OF THE BULK POWER SYSTEM. false false Coordinating, promoting, communicating and enforcing the reliability of the bulk power system of North America, NERC's members are the eight regional entities, load serving entities, users, owners and operators of the bulk power system, as well as large and small end-use customers and governmental representatives. The load serving entities account for virtually all the electricity supplied in the US, Canada, and a portion of Baja California North Mexico. Acting as the electric reliability organization of the United States as certified by the federal energy regulatory commission and for Canada as recognized by applicable government and regulatory authorities in such countries. false false false true false false false false false true false false false true true true false false false true false false false false false false false false true false false false false false false false false false false false false false false true 57 0 true 230 true false false false false false false X 10 9 false false false false true true true true true false false true true true true true true true true false DE GA NC X MANAGEMENT 4044462560 3353 PEACHTREE ROAD NE STE 600 Atlanta GA 30326 Fred Gorbet Chairman 13.0 0.0 X X 132500 0 0 Paul F Barber Trustee 9.0 0.0 X 117500 0 0 Bob Clarke Vice-Chair (As of 8/15/2015) 9.0 0.0 X X 99375 0 0 Janice Case Trustee 13.0 0.0 X 107500 0 0 David Goulding Trustee 11.0 0.0 X 107500 0 0 Douglas Jaeger Vice-Chair (Through 8/15/2015) 10.0 0.0 X X 64063 0 0 Kenneth Peterson Trustee 11.0 0.0 X 107500 0 0 Bruce A Scherr Trustee (Through 2/15/2015) 9.0 0.0 X 13438 0 0 Jan Schori Trustee 9.0 0.0 X 107500 0 0 Roy Thilly Trustee 11.0 0.0 X 107500 0 0 Gerry W Cauley President & CEO 55.0 0.0 X X 757481 0 80985 George Hawkins Trustee (As of 2/12/2015) 7.0 0.0 X 85313 0 0 Charles A Berardesco SR. VP/GEN. COUNS./SEC. 49.0 0.0 X 443307 0 50757 Mark G Lauby Sr. VP & Chief Reliability off 58.0 0.0 X 373418 0 73623 Michael A Walker Sr. VP/CFO/TREASURER 47.0 0.0 X 421854 0 78092 Janet L Sena Sr. VP & Dir. of Policy 46.0 0.0 X 333201 0 38256 Thomas Burgess VP Reliabilty (Thru 7/1/2015) 46.0 0.0 X 219155 0 32557 Stan Hoptroff VP & CTO 46.0 0.0 X 259249 0 13792 Sonia C Mendonca Deputy Gen. Counsl&VP Compl. 46.0 0.0 X 308895 0 59645 Marcus Sachs Sr. VP and Chief Security Off. 47.0 0.0 X 257105 0 28022 Timothy E Roxey VP & E-ISAC operations off. 41.0 0.0 X 268374 0 52874 Rebecca J Michael Sr. Dir. Reliability 50.0 0.0 X 292494 0 69595 Jonathan S Jones Senior Director of Finance 46.0 0.0 X 265043 0 39967 Holly A Hawkins Associate General Counsel 45.0 0.0 X 262887 0 23430 Robert W Cummings Sr. Dir. Eng. & Reliability 51.0 0.0 X 243465 0 57021 James Merlo Sr. Director Reliability 57.0 0.0 X 244682 0 30742 6000299 0 729358 130 false true false Battlle Pacific Northwest Division POBox 84262 SEATTLE WA 981245562 CRISP data sharing 5212290 Atlanta Financial Center LLC 3353 Peachtree Road NE Suite 100 ATLANTA GA 30326 Landloard-ATL 1654551 Computer Technology Solutions Inc 300 Riverchase Parkway East BIRMINGHAM AL 35244 Consulting Firm 1302230 Behringer Harvard 1325 G Street LLC 1325 G St Nw WASHINGTON DC 200053104 Landloard-DC 942696 PricewaterhouseCoopers LLP 3109 W Dr MLK Jr Blvd TAMPA FL 33607 Project consulting 667917 27 0 ASSESSMENTS 900099 55308376 55308376 PENALTY SANCTIONS 900099 900000 900000 TESTING FEES 900099 1683977 1683977 THIRD-PARTY FUNDING 900099 5273658 5273658 WORKSHOPS 900099 249726 249726 71000 71000 63486737 10761 10761 0 0 188684 348547 -159863 0 -159863 -159863 2311 6280 -3969 -3969 -3969 0 0 0 MISCELLANEOUS- AMEX POINTS 900099 156 156 156 63333822 63486737 -152915 0 2500 0 0 5200330 0 24231243 2312886 3230581 1727950 0 372328 111453 63200 0 0 11657640 0 1599889 3187552 0 2819156 2068938 0 1272962 54407 0 2116797 279532 OTHER EXPENSES 29561 62338905 0 0 0 30768653 32260259 8042143 8048696 0 0 5059002 3986346 0 0 0 0 0 0 0 0 756727 1291805 15711410 7409678 5929366 8301732 0 0 0 0 0 0 0 0 621892 1141055 51177783 55029893 8930613 10048001 0 0 21620792 22743496 0 0 0 0 0 0 1151411 1641044 0 0 7024027 7151495 38726843 41584036 X 8485940 9735857 3965000 3710000 0 0 12450940 13445857 51177783 55029893 994917 X false true X true false false false true 55308376 79779 -24949 54830 17670 37160 0 1380676 607866 772810 0 9196545 2356944 6839601 0 5134189 4444868 689321 8301732 0 DEFERRED COMPENSATION 1038351 ACCRUED RETIREMENT LIABILITIES 1878830 DEFERRED RENT 3734314 INSURANCE RESERVE 500000 7151495 X 63682369 63682369 -348547 -348547 63333822 62687453 348548 348548 62338905 62338905 Schedule D, Part X, Line 2 The corporation has received a determination letter from the Internal Revenue Service concluding that it is exempt from federal income taxes under section 501(c)(6) of the internal revenue code. The corporation is subject to income taxes on revenues related to unrelated business activities. The corporation is subject to a proxy tax related to nondeductible lobbying and political expenses incurred. There was no proxy tax incurred in 2015 or 2014. The corporation recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authority, based on the technical merits of the position. The corporation is no longer subject to federal and state tax examinations by the respective taxing authorities for the years prior to 2012. Tax years 2012 through 2015 remain subject to examination by major tax jurisdictions. RECONCILIATION OF REVENUE, SCHEDULE D, PART XI, LINE 2b RECLASS OF RENTAL EXPENSES -$348,547 RECONCILIATION OF EXPENSES, SCHEDULE D, PART XII, LINE 2D RECLASS OF RENTAL EXPENSES $348,548. North America 0 0 Program Services Regulatory Obligations 5062604 North America 0 0 Program Services Regulatory Obligations 148815 0 0 0 0 5211419 5211419 false false false false false false Schedule F, Part I, Line 2 Expenditures are accounted for based upon the location of the activities. Schedule F Country - Canada Schedule F Country - Mexico X X X X false true false Gerry W Cauley President & CEO 479815 0 237500 0 40166 0 45792 0 35193 0 838466 0 0 0 Charles A Berardesco SR. VP/GEN. COUNS./SEC. 332038 0 94134 0 17135 0 37208 0 13549 0 494064 0 0 0 Mark G Lauby Sr. VP & Chief Reliability off 265963 0 102229 0 5226 0 38516 0 35107 0 447041 0 0 0 Michael A Walker Sr. VP/CFO/TREASURER 296646 0 113202 0 12006 0 42953 0 35139 0 499946 0 0 0 Janet L Sena Sr. VP & Dir. of Policy 240834 0 87538 0 4829 0 35986 0 2270 0 371457 0 0 0 Thomas Burgess VP Reliabilty (Thru 7/1/2015) 160706 0 56163 0 2286 0 24846 0 7711 0 251712 0 0 0 Stan Hoptroff VP & CTO 234458 0 22469 0 2322 0 11542 0 2250 0 273041 0 0 0 Sonia C Mendonca Deputy Gen. Counsl&VP Compl. 240029 0 66838 0 2028 0 29751 0 29894 0 368540 0 0 0 Rebecca J Michael Sr. Dir. Reliability 225397 0 64811 0 2286 0 30550 0 39045 0 362089 0 0 0 Marcus Sachs Sr. VP and Chief Security Off. 205557 0 50000 0 1548 0 25710 0 2312 0 285127 0 0 0 Timothy E Roxey VP & E-ISAC operations off. 206863 0 54653 0 6858 0 27642 0 25232 0 321248 0 0 0 Jonathan S Jones Senior Director of Finance 223233 0 41000 0 810 0 7770 0 32197 0 305010 0 0 0 Holly A Hawkins Associate General Counsel 207661 0 54686 0 540 0 19521 0 3909 0 286317 0 0 0 Robert W Cummings Sr. Dir. Eng. & Reliability 188062 0 51839 0 3564 0 26153 0 30868 0 300486 0 0 0 James Merlo Sr. Director Reliability 193508 0 50400 0 774 0 24433 0 6309 0 275424 0 0 0 Schedule J, Part I, Line 4b In 2015, NERC establised a 457f Plan for executive officers. Awarded contributions to the plan in 2015 totalled $271,200. Awards vest over time. No awards vested in 2015, and no amounts were paid out of the plan. Form 990, Part VI, Line 6 Membership in the corporation is voluntary and is open to any person or entity that has an interest in the reliable operation of the North American bulk power system and that registers with the corporation as a member, maintains its registration in accordance with the bylaws, and complies with the other conditions and obligations of membership as specified in the bylaws. Membership in a regional entity shall not be a condition for membership in the corporation. The secretary of the corporation shall maintain a roster of the members of the corporation. Members do not share in the profits or revenues of the corporation. Form 990, Part VI, Line 7a Independent trustees are elected by the member representatives committee, which is elected by the members. Form 990, Part VI, Line 7b The member representatives committee and the Board of Trustees must each approve changes to the bylaws and the organization's rules of procedure. They are subject to review and approval by the United States Federal Energy Regulatory Commission ("FERC"). Decisions of the compliance committee of the Board of Trustees regarding enforcement matters for U.S entities are subject to review and approval by FERC. Form 990, Part VI, Line 11b The organization must use the following process for preparation and review of its IRS Form 990: (1) each year, an outside CPA firm prepares a draft of the Form 990, working with the Chief Financial Officer. The CFO may also engage the services of outside counsel in preparing the draft Form 990. (2) Prior to filing the Form 990 each year, the Corporate Controller, Senior Director of Finance, CFO and General Counsel review the draft form 990. (3) Prior to filing the Form 990 each year, the draft Form 990 is sent to all members of the Board of Trustees for review. The Finance and Audit Committee (FAC) and the Corporate Governance and Human Resources Committee (CGHRC) include the review of the draft Form 990 on a meeting agenda, with the FAC review focused on the financial aspects and the CGHRC focused on the corporate governance aspects. (4) The minutes of the meetings of the FAC and the CGHRC record the timing and nature of that review. (5) The CFO prepares a memorandum for the file each year describing the timing, nature, and individuals involved in the preparation and review of the form 990. Form 990, Part VI, Line 12c The organization's conflict of interest and business ethics policy for Trustees, officers, and employees require assurance in writing annually from all employees, including Trustees, confirming the absence of any conflict of interest. The annual forms are reviewed by the organization's general counsel. Form 990, Part VI, Line 15a & 15b NERC uses the following processes for determining the compensation of independent trustees, the chief executive officer, other officers, and key employees: (A) Trustee compensation - consistent with its mandate, as amended from time to time, the CGHRC shall annually review the compensation plan for independent Trustees. The CGHRC evaluates the amount of work and level of responsibility Trustees are being asked to undertake and, from time to time, examines market data from peer organizations with respect to the compensation of the independent trustees, and is authorized to engage a consultant or other third party resource to assist in such review. The CGHRC discusses potential modifications to the Trustee compensation plan during an open meeting, and reports its recommendations to the Board at an open meeting. Any modifications to the compensation plan for independent Trustees must be approved by the Board during an open meeting, and take effect as determined by the Board. (B) Chief Executive and other officer compensation - the annual compensation, including incentive compensation, of the CEO is determined by the Board of Trustees, after review and recommendation by the CGHRC. The Committee and Board consider market data for peer group organizations provided by an independent consultant, as well as the degree to which the organization and CEO have achieved established annual goals. The decisions of the Committee and Board are documented and kept on file in the human resources department. The annual compensation, including incentive compensation, of other officers is reviewed, determined and documented in a similar fashion, except that the final compensation determinations are, upon recommendation of the CEO, approved by the CGHRC, rather than the Board of Trustees. (C) Key employees - the annual compensation of other key employees is determined by the CEO, after consultation with the CGHRC concerning overall corporate compensation structure, taking account of the degree to which organizational and personal goals have been achieved. The CEO also uses comparability data provided by an independent consultant in these determinations. The recommendations of the CEO are documented and kept on file in the human resources department. Form 990, Part VI, Line 19 The organization's bylaws, governing documents, conflict of interest policy, and other corporate policies, and detailed budget are all posted and available for public inspection on its website. The organization provides copies of its audited financial statements upon request, and files such statements with FERC. The Form 990 is also available on guidestar.org and by request to the organization. FORM 990 PART IX LINE 11G DESCRIPTION:E-ISAC TOTAL FEES:5901343 FORM 990 PART IX LINE 11G DESCRIPTION:RELIABILITY RISK MGT. TOTAL FEES:1960674 FORM 990 PART IX LINE 11G DESCRIPTION:RELIABILITY ASSESMENT&ANALYSIS TOTAL FEES:1195074 FORM 990 PART IX LINE 11G DESCRIPTION:ADMIN SERVICES TOTAL FEES:818314 FORM 990 PART IX LINE 11G DESCRIPTION:COMPLIANCE SERVICES TOTAL FEES:298485 FORM 990 PART IX LINE 11G DESCRIPTION:TRAINING EDUCATION CERTIF. TOTAL FEES:640590 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER SERVICES TOTAL FEES:773743 FORM 990 PART IX LINE 11G DESCRIPTION:MAINTENCE SERVICES TOTAL FEES:69417