FINAL DRAFT
SHOWNING ONLY SUBSTANTIVE CHANGES
(Redlined
for substantive changes from the 10/02/00 Draft WIO Bylaws. Changes from WIO to WECC etc. not redlined
in order to present a cleaner document.
Appendix C is redlined from the WSCC approved ADR Section 12. )
BY‑LAWS
OF
THE
WESTERN ELECTRICITY COORDINATING COUNCIL
TABLE OF CONTENTS
1. Mission......................................................................................................... 1
2. Furtherance of the WECC’s Mission...................................................................... 1
2.1 Activities to Carry Out WECC’s Reliability Mission................................................... 1
2.2 Activities to Carry Out WECC’s Non-Discriminatory Access Mission.............................. 3
2.3 Organizational Characteristics............................................................................... 3
2.4 Transition...................................................................................................... 4
2.5 Guiding Reference............................................................................................. 4
3. Definitions..................................................................................................... 4
3.1 Affiliate......................................................................................................... 4
3.2 Applicable Regulatory Authority........................................................................... 5
3.3 Backstop Authority.......................................................................................... 5
3.4 Board of Directors (Board).................................................................................. 5
3.5 Class............................................................................................................ 5
3.6 Commercial Practices......................................................................................... 5
3.7 Control Area................................................................................................... 5
3.8 Director......................................................................................................... 6
3.9 Electric Line of Business..................................................................................... 6
3.10 Entity........................................................................................................... 6
3.11 FERC........................................................................................................... 6
3.12 Good Utility Practice......................................................................................... 6
3.13 Grid Operating Entity........................................................................................ 6
3.14 Market Interface............................................................................................... 6
3.15 Material External Impacts (MEI)........................................................................... 6
3.16 Member......................................................................................................... 6
3.17 Member Class Director....................................................................................... 7
3.18 NAERO........................................................................................................ 7
3.19 NERC........................................................................................................... 7
3.20 Non-Affiliated Director...................................................................................... 7
3.21 Open Access Tariff........................................................................................... 7
3.22 Primary Authority............................................................................................ 7
3.23 Regional Entity (RE).......................................................................................... 7
3.25 Reliability Management System............................................................................ 7
3.26 Reliability Practices........................................................................................... 7
3.27 Transmission Facilities....................................................................................... 7
3.28 Western Interconnection..................................................................................... 8
4. Members and Membership.................................................................................. 8
4.1 Voluntary Membership...................................................................................... 8
4.2 Eligibility for Membership................................................................................... 8
4.3 Designation of Membership Class.......................................................................... 9
4.4 Changes in Membership Class.............................................................................. 9
4.5 Affiliates and Distinct Business Entities................................................................... 9
4.6 Rights and Obligations of Membership................................................................... 10
4.7 Limitations on Member Obligations...................................................................... 11
4.8 Compliance and Enforcement.............................................................................. 11
4.9 Review of Member Class Categories...................................................................... 12
5. Procedures for Member Decisions........................................................................ 12
5.1 Quorum....................................................................................................... 12
5.2 Organizing Meeting.......................................................................................... 12
5.3 Annual Member Meetings.................................................................................. 13
5.4 Special Member Meetings.................................................................................. 13
5.5 Notice of Member Meetings............................................................................... 13
5.6 Open Meetings............................................................................................... 14
6. Governance................................................................................................... 14
6.1 Board of Directors........................................................................................... 14
6.2 Composition of the Board.................................................................................. 14
6.3 Term of Office............................................................................................... 14
6.4 Selection and Compensation of Member Class Directors.............................................. 15
6.5 Selection and Compensation of Non-Affiliated Directors.............................................. 16
6.6 Tie Vote....................................................................................................... 18
6.7 Removal of Directors........................................................................................ 19
6.8 Resignation................................................................................................... 19
6.9 Procedures for Filling Vacant Director Positions........................................................ 19
6.10 Duties of Directors.......................................................................................... 20
6.11 Powers of Directors......................................................................................... 20
6.12 Delegation of Board Authority............................................................................ 20
7. Procedures for Board Decisions........................................................................... 21
7.1 Quorum....................................................................................................... 21
7.2 Majority Vote................................................................................................ 21
7.3 Attendance at Board Meetings by Teleconference...................................................... 21
7.4 Board Action by Unanimous Written Consent.......................................................... 21
7.5 Notice of Board Meetings.................................................................................. 22
7.6 Open Meetings............................................................................................... 22
7.7 Board Committees........................................................................................... 23
8. Member Committees........................................................................................ 23
8.1 Purpose....................................................................................................... 23
8.2 Standing Committees........................................................................................ 24
8.3 Other Committees........................................................................................... 24
8.4 Committee Assessment and Streamlining................................................................ 24
8.5 Procedures for Committee Decision-Making............................................................ 24
8.6 Notice of Committee Meetings............................................................................ 26
8.7 Open Meetings............................................................................................... 26
9. The Chief Executive Officer, Officers, and Employees................................................. 26
9.1 Designation of Officers and Terms of Office............................................................ 26
9.2 Chief Executive Officer Qualifications.................................................................... 27
9.3 Standards Applicable to All Employees.................................................................. 27
9.4 Employment.................................................................................................. 27
9.5 Chief Executive Officer's Duties........................................................................... 27
9.6 Secretary's Duties............................................................................................ 28
10. Transmission Service Obligations......................................................................... 28
10.1 Non-Discriminatory Transmission Access............................................................... 28
10.2 Service to be Provided....................................................................................... 29
10.3 Open Access Tariffs........................................................................................ 29
10.4 Requests Involving Members of Regional Entities...................................................... 30
10.5 Request Process and Dispute Resolution................................................................ 30
11. Dispute Resolution.......................................................................................... 31
12. Costs and Finances.......................................................................................... 31
12.1 Annual Dues.................................................................................................. 31
12.2 Balance of Operating Costs................................................................................ 31
13. Amendments to these By-Laws........................................................................... 31
13.1 Amendment by the Board.................................................................................. 32
13.2 Amendment by the Members.............................................................................. 32
13.3 Amendments in Response to Mandatory Membership................................................ 32
14. Termination of Organization............................................................................... 32
15. Miscellaneous Provisions................................................................................... 32
15.1 Limitation on Liability...................................................................................... 32
15.2 Indemnification............................................................................................... 32
15.3 No Third Party Beneficiaries............................................................................... 32
15.4 Informal Inquiries for Information......................................................................... 33
16. FERC Review................................................................................................ 33
17. Incorporation................................................................................................. 33
18. Governing Law............................................................................................... 33
APPENDICES:
A. Board
Member Standards of Conduct
B.
Officers and Employees
Standards of Conduct
C.
WECC Dispute Resolution
Procedures
BY‑LAWS
Of
The
WESTERN
ELECTRICITY COORDINATING COUNCIL
1. Mission.
The Western Interconnection is the
geographic area containing the synchronously operated electric grid in the
western part of North America, which includes parts of Montana, Nebraska, New
Mexico, South Dakota, Texas, Wyoming, and Mexico and all of Arizona,
California, Colorado, Idaho, Nevada, Oregon, Utah, Washington and the Canadian
provinces of British Columbia and Alberta.
The Western Electricity
Coordinating Council ("WECC") is a Utah nonprofit corporation with
the mission to do the following consistent with these Bylaws: (1) maintain a
reliable electric power system in the Western Interconnection that supports
efficient competitive power markets ("Reliability Mission"); and (2)
assure open and non-discriminatory transmission access among Members and
provide a forum for resolving transmission access disputes between Members
consistent with FERC policies where alternative forums are unavailable or where
the Members agree to resolve a dispute using the mechanism provided in Section
11 ("Transmission Access Mission").
2. Furtherance of the WECC's Mission
2.1 Activities to Carry Out WECC's Reliability Mission.
2.1.1
Regional
Coordination. The WECC will act as a
coordinating entity for the entire Western Interconnection for activities of
regional organizations with responsibilities for reliability and market
functions.
2.1.2
Standard Setting. The WECC will develop and adopt reliability,
operating, and planning standards, criteria and guidelines necessary to
maintain the reliable operation of the Western Interconnection's interconnected
bulk power system, including seeking, as appropriate, variances from standards
of the NERC (or any successor organization which may be created by legislation
or otherwise), as well as providing a process for regional variances.
2.1.3
Certification of Grid
Operating Entities. The WECC will
certify Grid Operating Entities in the Western Interconnection.
2.1.4
Reliability
Assessment. The WECC will ensure that
interconnected bulk electric system reliability assessments are conducted as
needed. The WECC will do this work in
conjunction with the Regional Entities to the greatest extent possible. The WECC will also facilitate coordinated
reliability assessments among Regional Entities.
2.1.5
Compliance Activities. With respect to enforcement of reliability
standards, the WECC will:
a) implement the Reliability
Management System as in effect as of the WECC's formation and as the
Reliability Management System may be subsequently modified in accordance with
its terms;
b) implement any new
enforcement mechanisms developed through national legislative initiatives and
corresponding NAERO activities; and
c) administer any other
enforcement mechanisms developed through voluntary processes after the WECC’s
formation, where the WECC is designated to perform administration.
2.1.6
Coordinated Regional
Planning. With respect to the
coordination of regional planning
activities, the WECC:
a) will develop coordinated
planning policies and procedures for the Western Interconnection, including
facilitation of market‑based solutions, consistent with WECC/NERC
standards, FERC policy, and Section 2.5
of these Bylaws.
b) will review and assess
Regional Entity (as that term is defined in Section 3 of these Bylaws) planning
processes to determine whether WECC planning procedures have been satisfied;
c)
will refer planning
matters back to the originating Regional Entity for revision or other
corrective actions when the WECC Board determines that WECC planning procedures
have not been satisfied; and
d)
may perform other
interconnection-wide studies as needed, but shall not perform expansion
planning studies.
2.1.7
Coordinated
Operations. With respect to
coordinating reliable operating activities within the Western Interconnection,
the WECC will develop, coordinate and promote consistent interregional
operating policies and procedures for the Western Interconnection, consistent
with WECC/NERC standards, FERC policy,
and Section 2.5 of these Bylaws.
2.1.8
Market Interface
Issues. With respect to Market
Interface issues (as the term "Market Interface" is defined in
Section 3 of these Bylaws), the WECC will:
a) facilitate development of
compatible and efficient practices across the Western Interconnection; and
b) exercise Backstop
Authority where an unresolved Market Interface issue will cause Material
External Impacts by taking some or all of the following actions: 1) providing a
forum for and coordinating voluntary solutions among Members; 2) recommending
specific solutions for voluntary adoption by Members; and 3) if necessary,
proposing solutions to an Applicable Regulatory Authority.
2.1.9
Commercial
Practices. The WECC will have no
authority with respect to adoption of or compliance with any Commercial
Practices, or to attempt to resolve or enforce any resolution of Commercial
Practices disputes among Members.
2.1.10 Dispute Resolution.
The WECC will provide a process for the timely resolution of disputes
between WECC Members as set forth in Section 11.
2.1.11 Avoiding Duplication with Regional Transmission
Organizations. The WECC will endeavor
to carry out the provisions of these Bylaws in a manner that does not conflict
with or duplicate any FERC-approved functions of a Regional Transmission
Organization including functions that may be delegated by the Regional
Transmission Organization to any Regional Entity.
2.2 Activities to Carry Out WECC's Non‑Discriminatory Access Mission.
2.2.1
In accordance with
Section 10 of these Bylaws, the WECC will ensure the provision of non‑discriminatory
transmission access between Members.
2.2.2
In accordance with
Section 10 of these Bylaws, the WECC will provide for the submission of Open
Access Transmission Tariffs (or petitions for exemption) by all Members that
own or operate Transmission Facilities.
2.3 Organizational Characteristics.
As the WECC carries out activities
to fulfill its mission, it will seek to develop and maintain the following
characteristics:
a) dedication to serving the
individuals, businesses, and other organizations that generate, transmit,
distribute, market, and use electrical energy in the Western Interconnection;
b)
efficiency in its
administration, decision‑making, policy and standards development, and
dispute resolution processes;
c)
the ability to qualify
as an Interconnection‑wide regional reliability entity and be afforded
deference and delegation by NERC (or NAERO upon the enactment of reliability
legislation under consideration in the Congress of the United States as of the
date of the WECC's formation); and
d) fair and open processes
through which practices, policies, and standards are developed and implemented
based on sound technical and policy analysis.
2.4 Transition.
One of the principal reasons for
formation of the WECC is to promote an efficient western electric market by
reducing or eliminating conflict, duplication and overlap among electric
organizations in the Western Interconnection, including, but not limited to,
the Western Regional Transmission Association, the Southwest Regional
Transmission Association, the Northwest Regional Transmission Association, the
Western Systems Coordinating Council, and the Western Interconnection
Coordination Forum. Existing standards,
policies, procedures, guidelines and market interface practices will generally
apply in the WECC upon formation. These
will then be subject to requests for review under due process procedures.
a) To that end, these Bylaws
contemplate that some or all of these organizations (and perhaps others) will
merge into the WECC or fold their interconnection‑wide functions into the
WECC through other means. Where merger
agreements are developed, they will provide for an orderly transition of
assets, contracts, policies, procedures and functions between merging
organizations and the WECC. These
merger agreements will also provide that members of any organization merging
with or into the WECC will become Members of the WECC by operation of the
merger; provided: 1) such members are otherwise eligible for membership under
these Bylaws, and 2) such members are given notice and an opportunity to
decline membership in the WECC. The
Board will respect and act consistently with any merger agreements or other
formal arrangements related to formation of the WECC, provided that nothing in
any merger agreement or other mechanism to transfer functions to the WECC may
either: a) supersede or be deemed to
amend these Bylaws; or b) limit the power of the Board under these Bylaws to
amend or rescind any policy, procedure, decision, guideline or recommendation that may be transferred to the WECC through
merger or other means.
b) Within one year of the
effective date of any merger involving the Western Systems Coordinating
Council, the WECC Board must consider whether to establish a Communications
Committee and an Environmental Committee pursuant to Section 8.3.
2.5 Guiding Reference.
These Bylaws are intended to
reflect the expectations and agreements of interested parties throughout the
Western Interconnection as embodied in the document, dated October 2, 2000,
entitled "Western Interconnection Organization ‑ A Detailed Proposal
for a Grid Management Organization in the Western Interconnection" (the
"Detailed Proposal"). While
the complete content of the Detailed Proposal is too extensive to incorporate into
these Bylaws, the Detailed Proposal describes with specificity the key elements
of broad consensus among regional participants concerning the activities and
authority of the WECC and Regional Entities.
Accordingly, the Board of Directors will refer to the Detailed Proposal
as a principal source for guidance concerning matters within the scope of WECC
activities not specifically addressed in these Bylaws.
3. Definitions.
3.1 Affiliate.
An Entity that directly or
indirectly through one (1) or more intermediaries, controls, or is controlled
by, or is under common control with, another Entity. An Entity "controls" any Entity in which it has the
power to vote, directly or indirectly, 5% or more of the voting interests in
such entity or, in the case of a partnership, if it is a general partner. Notwithstanding the foregoing definition,
for purposes of these By‑Laws:
(a) electric distribution cooperatives that are member‑owners of a
generation and transmission cooperative are not Affiliates of the generation
and transmission cooperative or of each other; (b) an entity controlled by or
operating as a unit, agency, or subdivision of a local, state, provincial, or
U.S. federal or Canadian or Mexican national government will not be considered
an Affiliate of any other entity controlled by or operating as a unit, agency,
or subdivision of a local, state, provincial, or federal government; (c)
separate agencies of a single state or province, or of the U.S. federal or
Canadian or Mexican national government will not be considered Affiliates of
each other, regardless of any commonality of political control, (d) members of
any joint powers authority, and such joint powers authority, will not be
considered Affiliates of each other, and (e) members of a Regional Transmission
Organization ("RTO") will not be considered Affiliates of such RTO or of each other solely as a result of
such membership.
3.2 Annual Meeting.
The annual membership meeting of WECC, as describ