One agency should have authority to deal with power grid threats: FERC chief

Washington (Platts)--12Feb2014/233 pm EST/1933 GMT

Congress should consider passing legislation that would give one agency "clear and direct authority" to respond to imminent threats to the US power system, Cheryl LaFleur, acting chairman of the Federal Energy Regulatory Commission has told lawmakers.

"This authority should include the ability to require action before a physical or cyber national security incident has occurred," LaFleur said in a Tuesday letter. Any new authority, she said, should not impede FERC's existing authority to work with the North American Electric Reliability Corp. to set reliability standards for the grid, a process that can often take months to complete.

LaFleur also said "it is appropriate to consider whether federal regulations are needed to ensure the risk of physical attacks on our electrical infrastructure is addressed adequately." Her letter came in response to concerns expressed in a Friday letter signed by several Senate Democrats.

In the letter, Senate Majority Leader Harry Reid of Nevada, Senators Ron Wyden of Oregon, Dianne Feinstein of California and Al Franken of Minnesota, asked FERC and NERC whether "additional minimum standards" are needed to ensure physical security at key points on the electric grid. The wrote in the wake of news reporters about what officials are calling a sophisticated attack in April on a Pacific Gas & Electric substation near San Jose, California, in which the assailants employed "military-style weapons," including AK-47s.

The senators wrote that FERC and NERC have "clear and unmistakable" authority under federal law to act on physical threats to critical substations and other essential facilities.

LaFleur agreed that protecting the grid from such attacks is "an issue of critical importance," and said officials from FERC and other federal agencies have worked to educate industry about security risks as well as identify "the most critical facilities" and what protections they should have.

She also said that FERC, NERC the FBI and others have launched a "13-city physical security campaign" to educate utilities, states and others about the issue.

"To date, our efforts have focused on strongly encouraging utilities to make improvements to their physical security, by explaining why and where they should be made. This approach has resulted in improvements being implemented more quickly and more confidentially than a mandatory regulation could have accomplished under our existing authority," LaFleur said.

But LaFleur also said it is appropriate to consider mandatory regulations, adding that she has directed staff to work with NERC on the matter. She also said that because FERC is subject to the Freedom of Information Act, "the confidentiality of sensitive security information, and the timeliness and certainty of the process, are appropriate concerns."

LaFleur said Congress could improve FERC and NERC's ability to address grid risks "by enhancing the confidentiality of sensitive security information concerning physical or cyber threats to, or vulnerabilities of, the bulk power system," saying that a "properly-defined" FOIA exemption would be helpful.

--Bobby McMahon, bobby.mcmahon@platts.com
--Edited by Jeff Barber, jeff.barber@platts.com

 

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