FERC Approves Rules to Strengthen Reliability of Bulk Power System

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The Federal Energy Regulatory Commission (FERC) approved several actions to strengthen and safeguard the reliability of the nation’s bulk-power system.

FERC approved two final rules, including one on virtualization reliability standards. This final rule approves 11 updated critical infrastructure protection (CIP) reliability standards that enable secure use of virtualization technologies. These technologies give entities greater flexibility to reduce hardware needs and strengthen cyber defenses across the bulk power system. The rule also reduces administrative burden for entities that require alternative mitigation measures while still meeting security objectives.

Further, the final rule directs the North American Electric Reliability Corporation (NERC) to maintain appropriate oversight and consistency when entities implement such alternative mitigation measures.

The second final rule approves modifications to the CIP reliability standard to improve baseline cybersecurity for low-impact bulk electric system (BES) cyber systems. These cyber systems include digital or computer systems that support the electric grid but do not meet the criteria for medium or high impact under the tiered approach of the CIP standards.

The modified CIP standard requires new password protocols for remote users, including safeguards for passwords and the detection of intrusions to low-impact BES cyber systems. The final rule represents significant progress in grid security as NERC continues to strengthen its overall security strategy, helping keep the grid resilient to both existing and new threats. Overall, the final rule improves reliability by reducing the risk of potential system disruptions stemming from coordinated cyberattacks on low-impact BES cyber systems.

“Our electric grid faces persistent reliability challenges from cybersecurity threats, extreme weather, and rising demand. The actions we approved today are centered on modernizing and securing grid reliability, with a special emphasis on cybersecurity, so every American can count on the grid and get power when they need it,” FERC Chairman Laura Swett said.

In addition, FERC updated the definition of “control center” in NERC’s Glossary. The revised definition improves reliability by helping entities better identify risks and protect high-risk assets.

NERC officials said they appreciate FERC’s focus on reliability and security matters. NERC officials added that they will continue to work toward assuring the reliability and security of the North American bulk power system.

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