Docket No. RM22-19
Item E-1 | Presentation
FERC today issued a Notice of Proposed Rulemaking (NOPR) to establish rules providing incentive-based rate treatment for utilities making certain voluntary cybersecurity investments.
In the Infrastructure Investment and Jobs Act of 2021, Congress directed FERC to revise its regulations to establish incentive-based rate treatments by encouraging utilities to invest in advanced cybersecurity technology and participate in cybersecurity threat information sharing programs.
Under today’s NOPR:
- Cybersecurity expenditures would be eligible for an incentive including both expenses and capital investments associated with advanced cybersecurity technology and participation in a cybersecurity threat information sharing program.
- Eligible cybersecurity expenditures would be voluntary and have to materially improve the utility’s cybersecurity posture. FERC proposes to establish a pre-qualified (PQ) list of cybersecurity expenditures that are eligible for incentives that would be publicly maintained on the FERC.gov website.
- The incentives would take two forms: a return on equity adder of 200 basis points, or deferred cost recovery that would enable the utility to defer expenses and include the unamortized portion in its rate base.
- Approved incentives, with certain exceptions, would remain in effect for up to five years from the date on which the investments enter service or expenses are incurred.
R22-40
Original source can be found here.
