WASHINGTON, DC - The Subcommittee on Energy, chaired by Rep. Fred Upton (R-MI), today held a hearing with all five commissioners of the Federal Energy Regulatory Commission (FERC) to receive an update on the commission’s work to date and what their priorities are in the years ahead.
Given recent news of cyberattacks on the grid, in his questioning, #SubEnergy Chairman Upton asked FERC Chairman Kevin McIntyre, “Can you shed any light on the degree and frequency of cyberattacks on the energy infrastructure?" To which Chairman McIntyre replied, “Attacks are constant but the degree of severity from the perspective of the perpetrators, success, that is what varies. But every day, not just governmental entities, the companies that we regulate are subjected to attacks and attempted attacks."
In his written testimony, FERC Commissioner Robert Powelson discussed the agency’s efforts on cybersecurity, commenting, “The Commission takes seriously its role in protecting the nation’s energy infrastructure, both from physical and cyber vulnerabilities. … Cybersecurity threats are continually evolving. In response, the Commission must remain vigilant in refining its standards and developing new standards to address emerging threats. Recent actions by the Commission include work by its Office of Electric Reliability (OER) initiating rulemaking proceedings to propose: (1) approving mandatory reliability standards to bolster supply chain risk management protections for the grid; and (2) the development of a revised CIP [Critical Infrastructure Protection] standard to improve mandatory reporting of cybersecurity incidents. In addition to developing reliability standards, the Commission conducts outreach to other federal agencies, state utility commissions, and the private sector on cyber related issues."
#SubEnergy is holding a markup tomorrow on four bills to provide the Department of Energy with the necessary tools to address emerging threats to our energy systems. More info HERE.
All Five FERC Commissioners testify before #SubEnergy
In his questioning, Rep. Tim Walberg (R-MI) asked each of the commissioners, “We can all agree the energy landscape is vastly different than it was back in 1978 and even in 2005. Do you believe that PURPA should be updated or modified to reflect today’s energy environment?" Chairman McIntyre stated, “Yes, I believe it’s time for us to look at this issue." Commissioner Cheryl LaFleur commented, “Yes, I believe it would be timely for Congress to look at PURPA." Commissioner Neil Chatterjee added, “Yes, but I think not only Congress should look at PURPA but FERC should look at our own regulations to see what steps we may be able to take." Commissioner Powelson commented, “Yes, PURPA needs to be modernized." Commissioner Richard Glick concluded, “I think it’s appropriate for FERC to take a look at some of the issues of PURPA. I think the major issues that were addressed in the 2005 Energy Policy Act need to be addressed by Congress."
Commissioner LaFleur, provided an update on the agency’s work on transmission planning and Order No. 1000, stating, “It has been nearly seven years since the Commission issued landmark Order No. 1000 rule to foster greater regional and interregional transmission planning. Much progress has been made in implementing regional planning and cost allocation, but challenges remain with respect to implementing the competitive processes."
Commissioner Chatterjee, spoke of the agency’s work to combat physical security issues to the grid, commenting, “FERC Approved NERC’s [North American Electric Reliability Corporation] proposed physical security reliability standard which requires three main elements. Utilities must: (1) identify their critical transmission facilities; (2) pinpoint the relevant threats and vulnerabilities for those facilities; and (3) develop and implement a plan to address those threats and vulnerabilities, including measures designed to deter, detect, delay, assess, communicate, and respond to potential threats… FERC also works collaboratively with utilities on physical security issues."
“As we recently heard at our hearing on energy infrastructure, building new pipelines and electric transmission towers is not an easy or simple task," said #SubEnergy Chairman Upton. “I understand that Chairman McIntyre announced that the commission is now taking a fresh look at its 1999 policy to evaluate the need for new natural gas pipelines. Obviously, a lot of changes have occurred over the past 20 years in the way infrastructure is developed, so I would be interested in hearing what may come from this review."
In his prepared testimony, FERC Chairman McIntyre discussed the recent review of FERC’s 1999 policy to evaluate the need for new natural gas pipelines, stating, “I believe that it is prudent to review FERC’s current approach to certification of natural gas pipelines. My colleagues and I continue to consider internally both the scope and format for this review… I intend that our review will provide the opportunity for thoughtful input from interested stakeholders and the public, which I hope will help us to identify whether there are areas in which we can improve our policy or processes, and if so, what those improvements may be."
Chairman Walden delivers his opening statement
“Since taking the gavel as chairman of this committee I have made it my promise to always put the consumer first in everything we do," concluded #FullCmte Chairman Greg Walden (R-OR). “The modern consumer expects greater control, convenience, and choice when it comes to their energy consumption. I am excited about the changes taking place and the opportunities that it presents for our nation’s economy and energy security."
The Majority Memorandum, witness testimony, and an archived webcast can be found on the committee’s website HERE.
