Budget and Funding for MRO’s Non-Statutory Activities. In addition to its delegated functions and related activities, as specified in Sections 5, 6 and 7 of the Agreement and in Section 1 of this Exhibit E (such delegated functions and activities referred to in this Section 6 as “statutory activities”), MRO performs the following other functions and activities (such other functions and activities being referred to in this Section 6 as "non-statutory activities"):
Budget and Funding for MRO’s Non-Statutory Activities. In addition to its delegated activities and activities that are in furtherance of NERC’s responsibilities as the ERO under the Act, as specified in Section 1 of this Exhibit E (such functions and activities referred to in this Section 5 as “statutory activities”), MRO performs the following other functions and activities (such other functions and activities being referred to in this Section 5 as “non- statutory activities”): 2007/2008 Description of Non-Statutory Activities: MRO has a services agreement with MAPPCOR, a separate, non-profit corporation. MRO provides limited IT and administrative services through the end of 2008 to MAPPCOR, at cost, through the services agreement. The services agreement was a result of an Asset Purchase Agreement dated December 31, 2006 whereby MRO purchased assets and assumed employees from MAPPCOR related to reliability functions following the passage of the Energy Policy Act of 2005 and creation of the international ERO. MRO executed the Asset Purchase Agreement to assure complete organizational separation from a third party. Prior to the Asset Purchase Agreement, MRO obtained services from the third party, MAPPCOR. In order to assure continuity of operation, MRO agreed to provide these services to MAPPCOR. 2009 and Beyond: None MRO shall employ the following methods and procedures to (i) keep its funding mechanisms for its statutory activities separate from its funding mechanisms for its non-statutory activities, and (ii) record the costs it incurs in the performance of its non-statutory functions separately from the costs it incurs in the performance of its statutory functions: • MRO maintains separate accounts and billing procedures for its non- statutory services • Scope of services are limited to the service agreement and are “fee for services.” • MRO uses a labor reporting system to assure staff costs are properly recorded • Services agreement is with a third party which is subject to a rigorous cost “true-up” at the end of each year. • MRO has no other membership or initiation fees. The MRO Board of Directors approves the budget and may establish “initiation fees” for new members. MRO had established a $1,000 initiation fee to cover administrative costs, but waived the fee for small end use load members. In accordance with the Commission’s findings, the MRO Board has approved that no membership-related fees are assessed to new or existing members of MRO. MRO shall provide its budget for such non-statutory activitie...
