Power & Pipes

In October 2026, FERC’s Office of Electric Reliability, Division of Cyber Security released its annual Lessons Learned from Commission-Led CIP Reliability Audits summarizing findings from audits conducted during fiscal year 2026. Registered entities should assess their internal compliance programs in light of the trends and issues identified by FERC in preparation for future Critical Infrastructure Protection (CIP) audits, as the issues highlighted in these reports are often covered during audits.  The report highlights compliance with CIP 002-5.1a as a priority for FERC, including registration for new resources, properly accounting for functions performed by third parties, and using AI in a protected environment.

 

On August 26, US President Trump issued an executive order declaring a national emergency regarding risks associated with foreign-produced equipment used in the US bulk-power system. The order cites potential cyber, remote access, sabotage, and supply disruption risks, noting that growing electricity demand increases the consequences of potential attacks on the electric grid.

On June 18, 2026, the Federal Energy Regulatory Commission (FERC) directed each of the six regional grid operators it regulates (the Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs)) and their member transmission owners to justify or reform the terms of their tariffs related to interconnections for data center and other large energy users (Show Cause Orders).

The North American Electric Reliability Corporation’s (NERC’s) new Reliability Guideline, Risk Mitigation for Emerging Large Loads, provides a detailed framework for addressing reliability risks associated with rapidly growing large loads, including data centers, cryptocurrency mining facilities, hydrogen production facilities, manufacturing facilities, and arc furnaces.

The North American Electric Reliability Corporation (NERC) has issued a Level 3 Alert, the highest possible severity level and one that is rarely used by NERC, requiring the immediate attention of many NERC registered entities. While the Alert is not itself a new Reliability Standard, it directs certain registered entities to assess and report on proposed changes to modeling, studies, protection, and communications practices for large computational loads.

FERC recently approved a stipulation and consent agreement between the Los Angeles Department of Water and Power (LADWP) and Office of Enforcement and Regulatory Accounting to resolve an investigation into potential violations of the North American Electric Reliability Corporation (NERC) Rules of Procedure (ROP) and FERC regulations during a 2020 audit by the Western Electricity Coordinating Council. The settlement, and with it the large monetary penalty and additional compliance obligations, underscores the critical importance of transparency, accuracy, and truthfulness in reliability compliance monitoring and enforcement.

In our final dispatch from the CERAWeek conference by S&P Global, Felipe Alice shared some insights and key takeaways from a luncheon and dialogue session featuring tech entrepreneur, investor, and philanthropist Bill Gates.

Our coverage of the CERAWeek conference by S&P Global in Houston, running from March 18 to March 22, continues with more updates. Today’s missive comes from the Innovation Agora, which is connected to the Executive Conference at CERAWeek. The Innovation Agora is described as a “vibrant and interactive marketplace of ideas on energy innovation and emerging technologies.” It includes several amphitheaters or “hubs” that are designed for presentations and conversations involving the latest trends in climate change, carbon, hydrogen, and emerging energy technologies.

We’re back with another update from CERAWeek 2024 by S&P Global to highlight some key takeaways from day two of the conference. Many of the sessions on this day were dedicated to infrastructure development and highlighted the opportunities and the challenges facing energy project developers.

FERC recently issued an order approving revisions to the North American Electric Reliability Corporation (NERC) Rules of Procedures to modify the rules for developing mandatory reliability standards. These changes, reflected in Section 300 and Appendix 3A to the NERC Rules, will allow NERC to curtail the use of its traditional stakeholder-driven reliability standards development process where NERC leadership concludes that the process would be too cumbersome in addressing the reliability risk.