US Power Grid in Imminent Danger of Cyber-Attack

The US Energy Department says the electricity system "faces imminent danger" from cyber-attacks, which are growing more frequent and sophisticated, but grid operators say they are already on top of the problem.

In the department’s Quadrennial Energy Review, it warned that a widespread power outage caused by a cyber-attack could undermine "critical defense infrastructure" as well as much of the economy and place at risk the health and safety of millions of citizens, Bloomberg reported.

The report comes amid increased concern over cyber-security risks as US intelligence agencies say Russian hacking was aimed at influencing the 2016 presidential election.

"Cyber threats to the electricity system are increasing in sophistication, magnitude, and frequency," it said in the 494-page report. "The current cyber-security landscape is characterized by rapidly evolving threats and vulnerabilities, juxtaposed against the slower-moving deployment of defense measures."

The department detailed 76 recommendations to boost energy, including increasing the collection of data about online breaches from utilities. Separately, it called for extending tax credits to boost construction of new nuclear reactors.

Overall, the report said, total investment requirements necessary for grid modernization range from $350 billion to $500 billion.

The risks to the electric sector were highlighted within the past week as suspicious Internet traffic was found on a laptop computer at a Vermont electric utility. While the laptop was not connected to the grid, local officials alerted federal authorities of the risk.

Modified or new grid reliability requirements and increased data collection on cyber attacks will be needed to address the cyber risks, the report said. While there have not been major attacks in the US, the department review noted that a 2015 attack on the Ukrainian grid caused widespread power outages.

That "should be seen as an indicator of what is possible," it said.

The report also called for a new Energy Department assessment of cyber-security for natural gas pipelines.

Regional wholesale grid operators including PJM Interconnection LLC said they have implemented security measures, such as having redundant facilities, to counter cyber threats.

Energy utilities in the US have had "cyber incidents" like ransomware attacks, according to the US National Rural Electric Cooperative Association, which represents smaller, rural electric cooperatives.