From the Desk of the CEO

The year 2025 marked Texas RE’s 15^th anniversary as an independent organization. During our 10^th anniversary in 2020, we looked back on the maturation of the Electric Reliability Organization (ERO) Enterprise and the shift toward risk-based compliance enforcement. We celebrated Texas RE’s integration and independence within the state regulatory framework in the Texas Interconnection, and we looked forward to an electric reliability landscape on the verge of a transformation. In 2025, that transformation is well underway. In the process, our industry and Texas RE have changed in both expected and unexpected ways.

The most impactful event to unfold across the electric reliability industry since our 10^th anniversary was Winter Storm Uri in 2021 and its aftermath. The storm’s effect across the United States—and Texas in particular—resulted in targeted responses from the Public Utility Commission of Texas (PUCT), the Federal Energy Regulatory Commission (FERC), and the North American Electric Reliability Corporation (NERC). Texas RE worked hand-in-hand with these organizations on a state and national level to diagnose the issues our interconnection faced regarding extreme weather events and to implement mitigations that have strengthened the reliability of our grid. The result of these persistent efforts by stakeholders across the industry is a Bulk Power System (BPS) that is more reliable and resilient and will continue to improve in the future.

Another event that strongly influenced Texas RE since our 10^th anniversary was COVID-19. The global pandemic declared in 2020 stressed day-to-day operations of our electric infrastructure. Our employees had to develop new ways to connect and perform critical functions, with offices closed and work done remotely, and we substantially increased remote training opportunities for stakeholders. We were also impacted by the national trends of people switching jobs and early retirements that significantly altered the labor force. We used this as an opportunity to automate our recruiting processes and hire new, enthusiastic employees just as the change to new technologies in the BPS was accelerating. This new generation of auditors, engineers, and other critical staff has integrated exceptionally well into our organization. We have also adapted to the new normal of a hybrid work environment that gives more flexibility while still emphasizing collaboration, productivity, and innovation.

As a result of our successes, the Austin American-Statesman has just recognized Texas RE as a Top Workplace in central Texas for a third year in a row. Since our 10^th anniversary, we’ve undergone tremendous transformations internally, including moving to a new office building, evolving how we set targets and measure success with our corporate goals, and creating an enterprise risk management program. All of these improvements have helped Texas RE to hone in on the key challenges facing the Texas Interconnection, such as the rapid emergence of new large loads, the continued integration of inverter-based resources, and the ever-growing risks posed by cybersecurity threats.

The next major milestone for Texas RE will come in 2030, when we will celebrate our 20^th anniversary. Given the major events that shaped the last five years, I hesitate to make predictions. But one thing I can say with confidence is that over the next five years, Texas RE will continue to grow as an organization and stay focused on our shared responsibility to ensure the reliability and security of the electric grid.

Reliably,
Jim Albright