From the Board Chair and President and CEO

Dear Members and Stakeholders:

Resilience and success were key themes at the second quarter Midwest Reliability Organization (MRO) Board of Directors meeting held on June 12 in Saint Paul, Minnesota and by Webex. While we celebrated several achievements, we also reaffirmed our commitment to MRO’s vision of a highly reliable and secure North American bulk power system.

The board recognized MRO’s achievement as a top workplace in Minnesota for the second consecutive year—an honor based on employee feedback regarding workplace culture and benefits. Additionally, we honored Kristine Albrecht, Human Resources Generalist, and recipient of MRO’s annual Diamond Award, for her exceptional contributions, including spearheading the successful implementation of a new HRIS system that enhanced operational efficiency. Albrecht embodied MRO’s culture in her remarks to the board, expressing gratitude to her colleagues and reflecting on her interview process, where she observed that what her interviewers valued most about the organization was its people.

We were privileged to have NERC Trustee Kristine Schmidt and NERC Senior Vice President, General Counsel and Corporate Secretary Sônia Rocha attend the meetings and participate in the discussions. Their presence was a reminder of the collaborative strength that defines the ERO Enterprise. Schmidt offered positive feedback on the January cold weather event analysis, especially the improvements seen in natural gas-electric coordination. She noted the value of collaborative engagement and commended MRO’s ongoing work in risk identification.

Rocha emphasized the increasing complexity of the bulk power system and recognized MRO’s efforts to enhance regional and national collaboration. She also extended her gratitude to MRO staff for continued partnership on reliability matters and standards development. Rocha participated in part of the board’s executive session to provide insights into the collaborative process that led to revisions to the Regional Entities’ delegation agreements with NERC.

Bryan Clark, MRO’s Director of Reliability Analysis, highlighted the findings from the Canadian portion of the Interregional Transfer Capability Study, which was completed in April. The study revealed increased vulnerability to extreme weather and transmission constraints in Canada. It also underscored the reliability benefits—especially for a region like MRO, which spans parts of both Canada and the United States—of strengthening cross-provincial and cross-border transfer capability within the interconnected bulk power system. The results will help shape future reliability assessments.

The board also reviewed lessons from the FERC and NERC issued report on the January 2025 Arctic  Event, which included five consecutive storms bringing freezing temperatures, snow, and ice across the United States. While the bulk power and natural gas systems were strained, they performed well—reflecting industry-wide improvements in cold weather preparedness, communication, and coordination since the devastating Winter Storms Uri (in 2021) and Elliot (in 2022). Despite these improvements, cold weather preparedness remains a high priority for the region, requiring continued collaboration and investment.

The board’s Organizational Group Oversight Committee (OGOC) met the day prior to the board meeting to review mitigating activities for the region’s top reliability and security risks. A closed risk roundtable included discussions on global trade constraints and the impact on critical supply chains. The committee also raised trained workforce shortages in trades and engineering.

In closed session, the board reviewed MRO’s recent employee engagement survey, corporate risk program, security and IT initiatives, changes to independent director compensation, and progress on the implementation of MRO’s 2025-28 Strategic Plan and corporate metrics.

During the open session, the board approved the renewal of MRO’s five-year Regional Delegation Agreement with NERC and the 2026 Business Plan and Budget. The budget ensures MRO has the necessary resources to fulfill the responsibilities in the delegation agreement as well as the board’s strategic initiatives. It was posted in May for stakeholder feedback and no comments were received. The revised delegation agreement will proceed to FERC for final approval, and the budget will proceed to the NERC Board of Trustees for review and approval and then to FERC for final approval.

Actions taken by the board include:

• Approved MRO’s Post-Retirement Medical Funding, 2026 Reserves, and the 2026 Business Plan and Budget
• Approved revisions to MRO’s regional delegation agreement with NERC
• Approved appointment of Baker Tilly to audit MRO’s 2025 Financial Statements
• Approved independent director compensation for 2026 and 2027

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

We close this letter with a provocative question that was raised at a recent NERC summit: “What is the difference between reliability and resilience?” Reliability is complicated because it involves predictability, it depends on engineering rigor, consistent standards, and performance under known conditions. Resilience, on the other hand, is complex, it acknowledges that conditions change and that the unknown happens, focusing on how we adapt, respond, and recover.

Reliability is built through management; resilience is enabled through leadership. The work we do is complicated and how we do it is very, very complex. Our mission is not just about keeping the lights on; it is about lighting the path ahead.

As we approach this period of change and uncertainty, the word “FOCI” (a focus on what matters), remains top of mind. This means concentrating on how we act, how we respond, and how we lead through ever-evolving change, always with an eye toward MRO’s strategic priorities: People, Processes, and Partnerships. FOCI truly underlies what matters most to the region.

As always, we believe we are stronger together and that our future remains very, very bright!

Sincerely,

Dr. Dana Born, Board Chair, and Sara Patrick, President and CEO