From the Board Chair and President and CEO

Dear Members and Stakeholders:

The Midwest Reliability Organization (MRO) Board of Directors held its first-quarter meetings this month, with the Organizational Group Oversight Committee (OGOC) meeting on March 11 followed by the board meetings on March 12. These meetings provided an opportunity for the board and stakeholders to review key reliability priorities, hear updates from MRO staff and organizational groups, and continue advancing the strategic initiatives that guide our work.

As the energy landscape evolves, our commitment to reliability and security of the North American bulk power system is more critical than ever. This quarter’s discussions underscored the importance of proactive risk management, adaptability, and strong stakeholder collaboration across the region.

Key Industry Insights

A highlight of the open board meeting was a briefing from Teresa Mogensen, former MRO Board Chair and now Chair, President, and CEO of American Transmission Company, as well as a current member and former chair of NERC’s Reliability Issues Steering Committee (RISC). She reviewed the RISC’s 2025 Reliability Risk Priorities Report, which outlines the changing risk profile of the North American grid.

Mogensen emphasized that the industry is now “operating the grid at the edges,” with much tighter supply-and-demand margins than in the past. Key risk drivers include:

• Increasing interdependence between the natural gas and electric sectors
• Rapid growth of large loads, especially data centers
• Rising fuel supply vulnerabilities during extreme weather
• Growing cyber threats as systems become more complex
• Changing energy policy increases risks and creates system planning challenges

These priorities align closely with MRO’s 2026 Regional Risk Assessment, reinforcing our regional focus on identifying and mitigating emerging threats. Mogensen also reframed the industry’s ongoing conversation about affordability as a value question: What is the value of a reliable power grid to our economy and way of life, and are the necessary investments worth that value?

Addressing Risk Through Collaboration

Jane Allen, Trustee on the North American Electric Reliability Corporation (NERC) Board, shared her perspectives as an industry veteran on the importance of strong governance and coordinated communication in addressing complex grid challenges. Allen chairs the newly created NERC Board of Trustees Committee — the Engagement and Outreach Committee (E&OC) — which was established to strengthen NERC’s engagement activities, ensure consistent messaging, and monitor the impact of outreach initiatives. She emphasized that this new committee helps ensure the right message gets to the right audience at the right time.

During a closed risk roundtable led by the OGOC, Mark Lauby, NERC’s Chief Engineer and Fellow, presented NERC’s Large Loads Action Plan. With demand from data centers and industrial electrification increasing rapidly, NERC issued a Level 2 Alert and plans to issue a Level 3 Alert in the coming months — indicating that certain actions may soon be mandatory to maintain grid stability. Updates to the NERC Rules of Procedure and Glossary of Terms are expected by year-end, along with registration requirements for large load owners and operators. NERC is publishing quarterly updates on this important initiative.

Continued engagement from members and registered entities remains essential. MRO’s Organizational Groups play a vital role in identifying emerging issues, sharing best practices, and advancing the principles of Highly Effective Reliability Organizations (HEROs). The OGOC reported that so far this year, our advisory councils have conducted webinars, published technical articles, and are preparing for MRO’s Reliability, Security, and CMEP Summit on May 12-13 in Omaha, Nebraska. We encourage your participation—summit details and registration are available here.

Advancing MRO’s Strategic Plan

MRO recently released its 2025 Annual Report in an eye-catching new format, highlighting meaningful progress toward the goals outlined in the board’s 2025–2028 Strategic Plan. The report reflects the collective efforts of MRO staff, registered entities, and stakeholders to:

• Strengthen reliability oversight
• Advance risk-informed activities
• Enhance collaboration across the region and with the ERO Enterprise
• Support employee engagement and development

Our accomplishments this past year include better risk identification and analysis, broader stakeholder engagement, and initiatives supporting reliability and security in a rapidly evolving industry.

Additional Board Updates

The audit firm Baker Tilly reviewed MRO’s 2025 draft financial statements and issued a clean audit opinion. The audit confirmed compliance with GAAP accounting principles, and management fully cooperated throughout the process.

Staff provided the semiannual update on the Organization Registration and Certification Program (ORCP) and the Compliance Monitoring and Enforcement Program (CMEP). Highlights included progress on the ERO Enterprise’s inverter-based resource registration initiative and record efficiencies gained in MRO’s processing of noncompliance cases in 2025.

Board Actions:

• Approved the nomination of Thomas Graham and Dr. Dana Born as Independent Directors with terms ending December 31, 2029, for election by the MRO Members.
• Accepted MRO’s 2025 audited financial statements.
• Approved the Regional Standards Process Manual.

The full meeting minutes, detailing the discussions and actions, will be available soon on MRO’s website.

Looking Ahead

As we move further into 2026, our industry faces complex and evolving challenges — from the transformation of the generation fleet to increasingly sophisticated cyber and physical security threats. Addressing these issues requires collaboration, transparency, and a shared commitment to reliability.

Resilience is not about heroic endurance, it’s about adapting effectively to daily changes while maintaining strength and stability. By fostering trust, partnership, and empowerment, MRO remains dedicated to supporting a secure and reliable bulk power system.

We are deeply grateful for the active participation and expertise that our members bring to this work, and together, we’ll continue building a more reliable and resilient grid.

Our future is bright!

Sincerely,

JP Brummond, Board Chair, and Sara Patrick, President and CEO