BOD Draft Meeting Highlights_092310

Document Sample
BOD Draft Meeting Highlights_092310 Powered By Docstoc

Meeting Highlights:
Midwest Reliability Organization’s
Board of Director’s Meeting

Hilton Airport Hotel, Bloomington, MN
September 23, 2010

Dear Members and Stakeholders:
Below are highlights from the September 23, 2010, Midwest Reliability Organization (MRO) Board of
Directors meeting:

1. President’s Report
   President Skaar welcomed Bruce Scherr, Vice Chair of the NERC Board of Trustees to the meeting.
   Mr. Skaar discussed the challenges that face the industry and encouraged meeting attendees to view
   these challenges as opportunities for improvement. He reminded attendees that our essential purpose
   is to improve reliability, and emphasized the importance of not getting caught up in processes that
   impede results to our purpose. President Skaar also gave a report on the recent EEI CEO meeting
   that took place in Colorado Springs, CO. President Skaar’s report will be included in the full
   meeting minutes.

3. Chair Remarks and Summary of NERC Member Representatives Committee and Board of
   Trustees Meetings, Toronto, Canada
   Chair Landgren provided the board with a report on the NERC Member Representatives Committee
   (MRC) and Board of Trustees (BOT) meetings that took place recently in Toronto, Canada. Mr.
   Landgren’s report included matters pertaining to the proposed NERC BOT Executive Forum, the
   July 6 technical conference, Reliability Standards, cyber security and the 2011 budget. In addition,
   Mr. Landgren reported that the NERC Trustees are considering a NERC Trustees Standards
   Committee to provide more attention to the effectiveness of NERC’s standards process as this is an
   initiative the MRO board has supported. Mr. Landgren also provided an update to the board on the
   NERC BOT Compliance Committee (BOTCC) and the activities of the NERC Electricity Sub-
   Sector Coordinating Council (ESCC). Mr. Landgren pointed out that even though tensions in the
   industry still exist, relationships and communication between key industry players continues to

4. NERC Trustee Remarks
   NERC Board of Trustees Vice Chair, Bruce Scherr, thanked staff and the board for providing him
   the opportunity to attend this meeting. Mr. Scherr shared with the board and meeting attendees the
   importance of a strong set of reliability standards and discussed the proposed BOT Standards
   Committee. Mr. Scherr also discussed the importance of feedback and input from the regions and
   stakeholders to NERC and FERC on industry and policy matters. He also shared that NERC, FERC,
   and the Regions continue to improve and should be proud of what has been accomplished since the
   establishment of the Electric Reliability Organization (ERO).

5. Streamlining Enforcement
   Ms. Sara Patrick, Regulatory Affairs, Counsel and Enforcement Director, discussed with the board
   growing concerns regarding the slow speed of processing enforcement determinations and the

           2774 Cleveland Avenue N   • Roseville, MN 55113   • Phone (651) 855-1760   • Fax (651) 855-1712   •

   number of violations that are resolved through settlement across NERC and the Regions. Ms.
   Patrick emphasized the need to create a simpler, less costly alternative to the lengthy settlement
   process for minor and low risk violations and informed the board that on June 7, 2010, staff sent a
   proposal to NERC legal staff to expand the options for processing enforcement actions. MRO staff’s
   June 7 proposal to NERC can be found in agenda item 7 of the meeting agenda package at

6. Cyber Security and Other CIP Matters
   Mr. Wayne VanOsdol, Vice President Compliance, discussed with the board observations made by
   MRO auditors while conducting Spot Checks of NERC Reliability Standard CIP-002. Mr.
   VanOsdol also provided the board with a status on CIP Spot Checks, Technical Feasibility
   Exceptions (TFE), self-reports, self certifications and data submittals.

7. Board Consent Agenda
   The MRO Board of Directors approved the following consent agenda:
       •   Minutes from the June 24, 2010 MRO Board of Directors meeting
       •   Approved of the nominations of several committee and sub-committee members (a list of
           these nominations can be found in the agenda packet at:
       •   Approved of the following 2011 MRO Board of Directors meeting dates:
               −   Thursday, March 24, 2011
               −   Thursday, June 16, 2011
               −   Thursday, September 22, 2011
               −   Thursday, December 15, 2011

8. Recognition of Larry Larson, MRO Representative on the NERC Operating Committee
   Mr. Dan Schoenecker and Mr. Rod Scheel recognized Mr. Larry Larson of Otter Tail Power
   Company for his many years of dedicated service to MRO and the industry. Mr. Larson has
   participated on several MRO committees and his enthusiasm, breadth of knowledge and expertise
   will be sorely missed.

9. Disseminating Lessons Learned
   President Skaar reviewed with the board the recent efforts by NERC to disseminate lessons learned
   to the industry in a timely manner. Mr. Skaar also described efforts that MRO staff has made to
   communicate tips and lessons learned from compliance audits, enforcement actions, mitigation plans
   and event analyses, and welcomed suggestions from the board and meeting attendees regarding these
   items. Mr. Skaar also provided an update to the board on the protection systems analysis, including
   mis-operations, that was presented to the board at the last meeting and the MRO Operating
   Committee has been charged with finalizing for board consideration.

10. Discuss Outreach to Local Regulators
    Ms. Miggie Cramblit, MRO Director of External Affairs and Public Relations, reviewed MRO’s
    recently developed communication plan for state and provincial regulators with the board. Ms.

           2774 Cleveland Avenue N   • Roseville, MN 55113   • Phone (651) 855-1760   • Fax (651) 855-1712   •

   Cramblit shared with the board that the goal of MRO’s outreach efforts is to develop a relationship
   and dialogue with those who influence or approve policy matters that have an impact on reliability.

11. Culture of Reliability Excellence
    Vice Chair, Ed Tymofichuk, suggested that the board consider adding an ongoing agenda item where
    an MRO Registered Entity(s) is allowed the floor to discuss ways their organization is
    improving/promoting reliability and to share lessons learned. Mr. Tymofichuk also presented to the
    board for information and discussion, MRO’s proposed framework to improve its internal
    compliance, ethics and governance program. Staff will provide a program update to the board in

12. Event Analysis
    Mr. Dan Schoenecker, Vice President Operations, reviewed the status of pending Event Analyses and the
    progress on outstanding recommendations and lessons learned from previous system events in the MRO
    Region. Mr. Schoenecker also shared information on the activities of the NERC Event Analysis
    Working Group, including a draft Event Analysis Process Document the group created that would be
    applied consistently across all Regions.

13. Standing Committee Reports
    The MRO Operating, Planning, Standards, Compliance, and Security Committees reported their
    recent activities, and the activities of their respective subcommittees and working groups, to the
    board. Based on these reports, the board directed the committees to take the following actions:
       •   The Planning Committee should continue to diligently work with staff to develop SPS
           Criteria Guidelines for the Region.
       •   The Standards Committee should begin compiling MRO subject matter experts (SMEs) on
           PRC-012, PRC-013, and PRC-014 so that the SMEs are on-hand to submit comments to
           NERC as these standards move through the development process.
       •   The Security Committee should review the purpose and tasks of other industry security
           committees and provide the board with suggestions at the December meeting as to how this
           committee may be best utilized.

14. Strategic Initiatives Update
    President Skaar provided the board with a status on MRO’s 2010 Strategic Initiatives and reminded
    the board of an upcoming strategy session scheduled for Tuesday, October 19, 2010. The purpose of
    this strategy session will be to review the progress made on 2010 strategic initiatives and begin
    development of future initiatives. The board directed staff to provide the meeting objectives and an
    agenda prior to the meeting.

15. Board Committee Reports
       • Ms. Sara Patrick, Regulatory Affairs, Counsel and Enforcement Director, provided an update
          on Hearing Body activities.
       •   Mr. Bob Harris, Governance and Personnel Committee (GPC) Chair, reported that the GPC
           met recently to discuss MRO’s proposed framework for its internal Compliance, Ethics and
           Governance Program. The committee decided that this function should be overseen by the
           Finance and Audit Committee with support from the GPC as necessary.

           2774 Cleveland Avenue N   • Roseville, MN 55113   • Phone (651) 855-1760   • Fax (651) 855-1712   •

       •     Mr. Ed Tymofichuk, Finance and Audit Committee (FAC) Chair, reviewed year-to-date
             financials and informed the board that MRO is currently operating on budget.
       •     President Skaar provided a Membership Committee report to                          the board that included a
             proposed process for selection of the board chair and vice chair.                  The board approved of the
             process presented by the committee with a minor revision. Ms.                      Patrick informed the board
             that there are no disputes at this time, and that the following                    board members have been
             appointed to serve on the committee.
             −   Doug Curry, Lincoln Electric System, Chair
             −   Roger Harszy, Midwest ISO
             −   Guy Bruce, SaskPower
             −   Ken Goldsmith, Alliant Energy

16. Other Business
    The next meeting of the board of directors will be held on Thursday, December 2, 2010, at the
    Holiday Inn Select in Bloomington, MN. MRO will also host a Compliance and Reliability
    workshop on Wednesday, December 1, 2010, at the same location. Additional information on these
    events will be released soon.

Staff would like to remind you that more detailed minutes of the meeting will be available soon on the
MRO website at, and extend our
thanks for your continuous involvement and support.


Daniel P. Skaar, President
DPS: jrm

             2774 Cleveland Avenue N   • Roseville, MN 55113   • Phone (651) 855-1760   • Fax (651) 855-1712   •

Shared By: