Are there compelling reasons to be concerned about security for electric generation facilities since the Sept. 11, 2001 tragedy? Please include discussion of interconnection at a central location such as Palo Verde/ Hassayampa.

 

Nuclear power plants have been identified as a high security risk, especially since September 11, 2001. Such high-profile facilities are attractive terrorist targets. Critical electric facilities such as the Palo Verde/ Hassayampa interconnection could therefore also be at risk. Such facilities would be tempting targets for terrorists whether Arizona moves forward with restructuring or not.

There is an electric industry Critical Infrastructure Protection Working Group (CIPWG) under NERC that interfaces with a variety of federal agencies dealing with national security concerns of exercising due diligence in protecting and managing both our critical physical and cyber assets.

Staff has taken a very cautious position regarding such system security matters during siting of new generation facilities. In fact, Staff has advocated that it would be prudent to limit additional expansion at the Palo Verde hub and additional interconnections with transmission lines out of the hub until an assessment of special reliability provisions appropriate for large commercial hubs is performed. In fact, a condition was placed on the Palo Verde to Southwest Valley 500 kV line applicants, APS and SRP, in line siting Case # 115, to work with Staff in performing that assessment. The CIPWG issued a report in June 2001 entitled "An Approach to Action for The Electricity Sector" in which it advocates action organized around a four-tier model: avoidance, assurance, detection, and recovery. The principles of avoidance and recovery should be the core elements that shape the pending Arizona assessment for large commercial hubs.

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