By Paul Feldman and Dan Hill
Given the central importance of electricity in the modern American economy, corporate boards need to consider how to discharge their responsibility for cybersecurity. There is no one-size-fits-all answer.
lectricity is the engine of the modern American economy. If a cybersecurity breach were to bring down a major portion of our power grid, we could not pump water or fuel, could not access our financial records, and our communications networks would be silent. Electric utilities and their boards of directors need to be proactive in dealing with this threat. The purpose of this paper is to share some thoughts related to utility boards of directors’ governance and the responsibility for addressing cybersecurity.
What is a board’s responsibility for dealing with cybersecurity? The question does not have a simple answer. It’s essential that boards comply with best practice[i] protocols, but agreed-upon best practices for cybersecurity are scarce, especially in the board context. Any response requires a thoughtful understanding of the situation, careful consideration of the implications, and a decision-making system for proceeding in unique circumstances. There is no one size fits all – for either board governance or cybersecurity – so it should be no surprise that combining the two is tricky.
Click here to view article as fully-formatted PDF file.
By Randolph Elliott
If wholesale rates are to be truly ‘just and reasonable,’ regional market rules and lower court decisions interpreting those rules must take account of more options, including some permitted under the Federal Power Act, for meeting capacity needs at lower cost.
ince 2007, the regional transmission organization PJM Interconnection has held auctions to pay for capacity to meet the region’s yearly load and reserve requirements, a tariff construct PJM calls the “reliability pricing mechanism” (RPM).
By Scott Hempling
We certify all manner of professionals to safeguard individuals and protect the public interest. Should we not also wish to assure that those who oversee planning, transactions, and operations of our most vital infrastructure are equipped to discharge their duties effectively?
Accountants, architects, barbers, cosmetologists, crane operators, dentists, docking masters, doctors, electricians, engineers, foresters, home inspectors, interior designers, landscape architects, lawyers, land surveyors, pilots, plumbers, private detectives, real estate appraisers, real estate brokers, security systems technicians, security guards, and tax preparers.
he above professions are among those my state of Maryland certifies. Most states have similar lists. But missing from every state’s list is “utility regulators.”
By Mark Knight, Tom Sloan, Carl Zichella
Among visions of a more interactive grid with multilateral supplier and customer interactions, transactive energy is perhaps the most promising. There are more questions than answers at this point, but policies to guide its implementation are being developed.
I. What Is Transactive Energy?
n its Transactive Energy Framework, the GridWise Architecture Council (GWAC) defines transactive energy as “a system of economic and control mechanisms that allows the dynamic balance of supply and demand across the entire electrical infrastructure using value as a key operational parameter.” For many people transactive energy delineates a communications and business model through which electric customers interact with their utility to buy and sell electricity—or forego its use—based on economic and reliability signals. In a transactive energy system each participant chooses to take action (or not) based upon the monetary or other value to them of that action.
By Leah Y Parks
Transactive energy—some call it demand response on steroids—actually promises to be more than that, but it’s a concept that’s still being defined, refined, and proven. Many believe it will open the door to a new relationship between utilities and their customers.
EP: What drew you to attend and speak at this rather tech-oriented conference?
TS: I’m here because I’m a member of GWAC and because I want to stay abreast of technology that will help us to maintain a healthy electricity infrastructure in the future. New forces are putting pressure on the utility industry and transforming the way we use, produce, and distribute electricity. This transformation is putting pressure to change the way we will buy and sell electricity as well.
The decreasing costs of rooftop solar energy, ground-source heat pumps, and the increasing prevalence of smart apps that people can use to monitor their appliances or businesses—these are new tools. There is pressure on us to do better, and we can be greener and more reliant on efficiency and renewable energy. I believe we will be moving to a more distributed model where consumers both produce as well as consume electricity, and I believe a smart and transactive grid can help us manage that change.