From the Board Chair and President and CEO

Dear Members and Stakeholders:

The industry is adapting to significant changes in electricity generation and supply along with overwhelming increases in demand, while at the same time managing policy and regulatory pressures, supply chain shortages, and rapid proliferation of cyber threats and vulnerabilities. These were just some of the challenges discussed during MRO’s third quarter board meetings last week in Saint Paul, Minnesota and through Webex.

A closed session was held on Wednesday morning to review MRO’s Directors and Officers insurance coverage, discuss the status of 2024 strategic metrics, and consider open regional director candidates for the board. We are pleased to report that MRO is on track to meet all target goals by year-end and all but one of the stretch goals set for 2024.

The open board meeting included endorsement of the ERO Enterprise revised Long-Term Strategy, which outlines key focus areas to inform business planning processes as the enterprise works to achieve its shared vision and mission. The revised strategy was developed by over 100 ERO Enterprise leaders who helped identify four primary focus areas: Energy, Security, Engagement, and Agility and Sustainability. The four focus areas and related objectives are described in detail in the strategy document and will provide the foundation for ERO Enterprise work through multiple business planning cycles.

The board and leadership met the day after the board meeting in a strategic planning session to develop the next iteration of MRO’s strategic plan. George Hawkins from the NERC Board of Trustees provided engaging and inspiring remarks – setting the stage for constructive and meaningful discussions on the most pressing challenges and opportunities presented by the energy transformation. He emphasized the importance of reliable electricity through the lens of an end-use customer, leaning on his experience as the former General Manager of D.C. Water. Hawkins stressed the need to leverage the collective strength of the ERO Enterprise and our unique operating model as we design the grid of the future.

The importance of strategic planning has never been more critical as we navigate an increasingly complex and dynamic energy landscape. We also recognize the need to effectively manage both industry-wide risks and internal risks and challenges to the organization to remain resilient and advance our vision and mission. The 2025-2028 Strategic Plan will be published later this year on MRO’s website.

You will see great alignment between MRO’s strategic plan and that of the ERO Enterprise. This approach provides several benefits to MRO members and registered entities, including creating a unified approach to enhancing grid reliability, security, and resilience through a shared view of risk, strategic priorities, and resource investments.

Committee Reports

The Finance and Audit Committee provided year-to-date financials and information on MRO’s 2023 Form 990.

The Governance and Personnel Committee highlighted recent HR and talent management activities and provided information on the two open regional director seats on the board. The committee congratulated MRO for being designated a 2024 Top 200 Workplace with the Minnesota Star Tribune.

The Organizational Group Oversight Committee (OGOC) held its third quarter meeting adjacent to the board meeting. Discussions included recent advisory council and subgroup activities and related outreach as well as progress on each organizational group’s work plan. The OGOC continued its practice of holding a closed risk roundtable to provide an opportunity for board members, industry representatives from the advisory councils, and key staff to discuss risks to reliability and security of the bulk power system in a trusted setting. This roundtable focused on supply chain challenges, which was one of the top risks identified in MRO’s 2024 Regional Risk Assessment. The discussion focused on the implications of Nation State activity within critical infrastructure supply chains.

Board Actions

The board passed the following resolutions during the board meetings:

Also at the meeting, board member Michael Deselle announced his planned retirement from the Southwest Power Pool and subsequently the board of directors at year end. We will have an opportunity to recognize Michael and his contributions to regional reliability at the fourth quarter board meetings in November.

You can read more about the discussions and actions taken at the third quarter board meetings in the full meeting minutes, which will be available soon on MRO’s website.

MRO’s commitment to reliability, security, and resiliency of the bulk power system was clearly reflected in the meeting discussions this quarter. The work we do is vital and requires us to uphold the highest standards of excellence in everything we do. As the great Canadian hockey icon Wayne Gretzky says:

“A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”

The important work we do is not just about keeping the lights on; it is about lighting the way for our collective future.

Thank you for your participation. Our future is bright!

Sincerely,

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