Power & Pipes

FERC, CFTC, and State Energy Law Developments
Following the increased spread of COVID-19 within the United States, the North American Electric Reliability Corporation (NERC) issued a Level 2 Alert on March 10 to all users, owners, and operators of the bulk-power system, outlining a series of recommendations and requiring certain responses from each entity about their plans for continued reliable operation under pandemic circumstances.
A cyberattack on a single gas compression facility resulted in the shutdown of a natural gas pipeline for two days, according to a recent alert from the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA).
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At its open meeting on November 21, FERC announced organizational changes to enhance the agency’s focus on cybersecurity threats and challenges to electric infrastructure. Commission staff unveiled five “focus areas” related to grid cybersecurity and announced organizational changes within the Office of Energy Projects (OEP) and Office of Electric Reliability (OER) designed to better position Commission resources to address cybersecurity concerns.
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FERC Staff issued an October 4 report on Commission-led critical infrastructure protection (CIP) reliability audits completed during fiscal year 2019. The report provides lessons learned and identifies voluntary practices that FERC Staff observed during those audits that could improve the protection of electric infrastructure from cyberattacks.
Facing what it deems an “unprecedented number of FOIA requests” for nonpublic information related to utility violations of the North American Electric Reliability Corporation (NERC) critical infrastructure protection (CIP) requirements governing cybersecurity compliance for critical electric infrastructure, FERC Staff has issued a white paper proposing to make publicly available additional information regarding those violations, including the names of the utilities involved.
FERC recently approved proposed Reliability Standard CIP-008-6, which expands the mandatory reporting requirements for Cyber Security Incidents that attempt to compromise the operation of the bulk power system.
The supply chain risks facing electric utilities have long been a concern for industry stakeholders and regulators alike. Reflecting those concerns, NERC submitted a report on May 28 to FERC recommending the expansion of requirements addressing supply chain cybersecurity risks for electric utilities, concluding that the scope of those requirements needed to expand to match the scope of the cybersecurity risk.
FERC Staff issued a report on March 29 on Commission-led critical infrastructure protection (CIP) reliability audits completed for fiscal years 2016 through 2018. The report provides lessons learned from those audits, as well as voluntary recommendations on cybersecurity practices to enhance the protection of electric infrastructure from cyberattacks.