Tuesday, December 22, 2020
On Thursday, December 17, 2020, the Federal Energy Regulatory Commission (“FERC”) issued a
Notice of Proposed Rulemaking (“NOPR” or “Proposed Rule”) seeking comment on proposals that would allow public utilities to make a filing pursuant to Section 205 of the Federal Power Act (“FPA”) to seek incentive-based rate treatment for certain cybersecurity investments made to improve the security of the Bulk-Power System (“BPS”).
[1] The NOPR follows a white paper published by FERC staff in June 2020, which expressed concern that the promulgation of mandatory reliability standards in accordance with Section 215 of the FPA may not be effective in responding to complex and rapidly evolving cybersecurity threats, and solicited comments on whether the Commission should use its ratemaking authority to encourage utilities to undertake additional investments on a voluntary basis.
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On December 17, 2020, the U.S. Department of Energy (DOE or the “Department”), pursuant to President Trump’s May 2020 Executive Order 13920 on “Securing the United States Bulk-Power System” (EO),
1 which we addressed here, issued a Prohibition Order “prohibiting the acquisition, importation, transfer, or installation of specified bulk-power system (BPS) electric equipment that directly serves Critical Defense Facilities (CDFs).”
2 CDFs are facilities designated as such by the Secretary of Energy that are “located in the 48 contiguous States and the District of Columbia that are (1) critical to the defense of the United States; and (2) vulnerable to a disruption of the supply of electric energy provided to such facility by an external provider.”
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Editors’ Note: This is the first in our fifth-annual end-of-year series examining important trends in data privacy and cybersecurity in the coming year.
The Growing Threat of Ransomware
According to media reports, ransomware attacks against the manufacturing industry have more than tripled compared with last year. This dramatic rise in cyberattacks poses serious concerns about the vulnerability of critical energy infrastructure serving the nation’s electric grid, and the government has responded with measures designed to thwart any such efforts.
In the manufacturing sector, a ransomware attack typically involves blocking access to a victim’s computer files. Once the victim pays the specified ransom, access to the files is restored. As more and more manufacturing companies seek to reduce their energy costs and carbon footprints, they are deploying on-site energy equipment that is similar to that used in by el
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The Growing Threat of Ransomware
According to media reports, ransomware attacks against the manufacturing industry have more than tripled compared with last year. This dramatic rise in cyberattacks poses serious concerns about the vulnerability of critical energy infrastructure serving the nation’s electric grid and the government has responded with measures designed to thwart any such efforts.
In the manufacturing sector, a ransomware attack typically involves blocking access to a victim’s computer files. Once the victim pays the specified ransom, access to the files is restored. As more and more manufacturing companies seek to reduce their energy costs and carbon footprints, they are deploying on-site energy equipment that is similar to that used in by electric utility companies. There is increasing concern that these attacks are providing a training ground for coordinated attacks on energy infrastructure in order to disrupt operation of the nation’s bulk power system.