New cybersecurity standard a step closer

By Electricity Forum


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The North American Electric Reliability Corporation NERC is one step closer to approving a new version of the cybersecurity standard, the Critical Cyber Asset Identification CIP-002-4.

The proposed changes provide significant improvements to the existing standard by including a specific list of criteria for entities to identify their critical assets.

“Confirmation by the registered entities of their critical assets was a key priority for my first year as president and CEO of NERC,” says Gerry Cauley, President and CEO of NERC. “Recognizing that protecting cyber assets is critical to the electric utility’s infrastructure, as well as national and international security, the revisions to CIP-002-4 were advanced ahead of other cyber security standard improvements. This initial passage by the stakeholders represents a major progression in protecting the North American grid and ensuring reliability. I commend the stakeholders and the standard drafting team for the tremendous work they have done.”

CIP-002-4 is a foundational standard with the remaining CIP standards CIP-002 through CIP-009 relying on a complete and accurate identification of assets critical to reliability. Because entities are so tightly interconnected, a vulnerability that seems insignificant to a single entity can place the entire grid in a state of vulnerability.

“While NERC’s ANSI-based standard process requires a final “recirculation” ballot to allow stakeholders to confirm or modify their previous ballots, this standard appears to be on a path for approval by the end of the year or shortly thereafter,” says Cauley. The standard then goes to the NERC Board of Trustees for approval and then the new standard is filed with the with the Federal Energy Regulatory Commission for approval under provisions of the Federal Power Act section 215.

In addition to working on the implementation of the CIP-002-4 standard, NERC is expediting implementation of the NERC/Department of Energy High Impact, Low Frequency reportÂ’s geomagnetic and electromagnetic pulse recommendations. As part of this effort, NERC will establish independent validation and industry approaches to develop and deploy Geomagnetic Disturbance mitigation strategies and technologies to protect the power grid.

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Alberta Introduces New Electricity Rules

Alberta Rate of Last Resort streamlines electricity regulations to stabilize the default rate, curb price volatility, and protect rural communities, low-income households, and seniors while preserving competition in the province's energy market.

 

Key Points

Alberta's Rate of Last Resort sets biennial default electricity prices, curbing volatility and protecting customers.

✅ Biennial default rate to limit price spikes

✅ Focus on rural, senior, and low-income customers

✅ Encourages competitive contracts and market stability

 

The Alberta government is overhauling its electricity regulations as part of a market overhaul aimed at reducing spikes in electricity prices for consumers and businesses. The new rules, set to be introduced this spring, are intended to stabilize the default electricity rate paid by many Albertans.


Background on the Rate of Last Resort

Albertans currently have the option to sign up for competitive contracts with electricity providers. These contracts can sometimes offer lower rates than the default electricity rate, officially known as the Regulated Rate Option (RRO). However, these competitive rates can fluctuate significantly. Currently, those unable to secure these contracts or those who are on the default rate are experiencing rising electricity prices and high levels of price volatility.

To address this, the Alberta government is renaming the default rate as the Rate of Last Resort designation (RoLR) under the new framework. This aims to reduce the sense of security that some consumers might associate with the current name, which the government feels is misleading.


Key Changes Under New Regulations

The new regulations, which include proposed market changes that affect pricing, focus on:

  • Price Stabilization: Default electricity rates will be set every two years for each utility provider, providing greater predictability by enabling a consumer price cap and reducing the potential for extreme price swings.
  • Rural and Underserved Communities: The changes are intended to particularly benefit rural Albertans and those on the default rate, including low-income individuals and seniors. These groups often lack access to the competitive rates offered by some providers and have been disproportionately affected by recent price increases.
  • Promoting Economic Stability: The goal is to lower the cost of utilities for all Albertans, leading to overall lower costs of living and doing business. The government anticipates these changes will create a more attractive environment for investment and job creation.


Opposition Views

Critics argue that limiting the flexibility of prices for the default electricity rate could interfere with market dynamics and stifle market competition among providers. Some worry it could ultimately lead to higher prices in the long term. Others advocate directly subsidizing low-income households rather than introducing broad price controls.


Balancing Affordability and the Market

The Alberta government maintains that the proposed changes will strike a balance between ensuring affordable electricity for vulnerable Albertans and preserving a competitive energy market. Provincial officials emphasize that the new regulations should not deter consumers from seeking out competitive rates if they choose to.


The Path Ahead

The new electricity regulations are part of the Alberta government's broader Affordable Utilities Program, alongside electricity policy changes across the province. The legislation is expected to be introduced and debated in the provincial legislature this spring with the potential of coming into effect later in the year. Experts expect these changes will significantly impact the Alberta electricity market and ignite further discussion about how best to manage rising utility costs for consumers and businesses.

 

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Ontario Energy Board Sets New Electricity Rate Plan Prices and Support Program Thresholds

OESP Eligibility 2024 updates Ontario electricity affordability: TOU, Tiered, Ultra-Low-Overnight price plans, online bill calculator, higher income thresholds, monthly credits for low-income households, and a winter disconnection ban for residential customers.

 

Key Points

Raises income thresholds and credits to help low-income Ontarians cut electricity costs and choose suitable price plans.

✅ TOU, Tiered, and ULO price plans with online bill calculator

✅ Income eligibility thresholds raised up to 35% on March 1, 2024

✅ Winter disconnection ban for residences: Nov 15, 2023 to Apr 30, 2024

 

Residential, small business and farm customers can choose their price plan, either Time-Of-Use (TOU), Tiered or the ultra-low overnight rates price plan available to many customers. The OEB has an online bill calculator to help customers who are considering a switch in price plans and monitoring changes for electricity consumers this year. 

The Government of Ontario announced on Friday, October 19, 2023, that it is raising the income eligibility thresholds that enable Ontarians to qualify for the Ontario Electricity Support Program (OESP) by up to 35 percent. OESP is part of Ontario’s energy affordability framework and other support for electric bills meant to reduce the cost of electricity for low-income households by applying a monthly credit directly on to electricity bills.. The higher income eligibility thresholds will begin on March 1, 2024.

The amount of OESP bill credit is determined by the number of people living in a home and the household’s combined income, and can help offset typical bill increases many customers experience. The current income thresholds cap income eligibility at $28,000 for one-person households and $52,000 for five-person households, and temporary measures like the off-peak price freeze have also influenced bills in recent periods.

The new income eligibility thresholds, which will be in effect beginning March 1, 2024, will allow many more families to access the program as rates are about to change across Ontario.

In addition, under the OEB’s winter disconnection ban, which follows the Nov. 1 rate increase, electricity distributors cannot disconnect residential customers for non-payment from November 15, 2023, to April 30, 2024.

 

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APS asks customers to conserve energy after recent blackouts in California

Arizona Energy Conservation Alert urges APS and TEP customers to curb usage during a heatwave, preventing rolling blackouts, easing peak demand, and supporting grid reliability by raising thermostats, delaying appliances, and pausing pool pumps.

 

Key Points

A utility request during extreme heat to cut demand and protect grid reliability, helping prevent outages.

✅ Raise thermostats to 80 F or higher during peak hours

✅ Delay washers, dryers, dishwashers until after 8 p.m.

✅ Pause pool pumps; switch off nonessential lights and devices

 

After excessive heat forced rolling blackouts for thousands of people across California Friday and Saturday, Arizona Public Service Electric is asking customers to conserve energy this afternoon and evening.

“Given the extended heat wave in the western United States and climate-related grid risks that utilities are monitoring, APS is asking customers to conserve energy due to extreme energy demand that is driving usage higher throughout the region with today’s high temperatures,” APS said in a statement.

Tucson Electric Power has made a similar request of customers in its coverage area.


APS is asking customers to conserve energy in the following ways Tuesday until 8 p.m.:

  • Raise thermostat settings to no lower than 80 degrees.
  • Turn off extra lights and avoid use of discretionary major appliances such as clothes washers, dryers and dishwashers.
  • Avoid operation of pool pumps.

The request from APS also came just hours after Arizona Corporation Commission Chairman Bob Burns sent a letter to electric utilities under the commission's umbrella, like APS, to see if they are in good shape or anticipate any problems given looming shortages in California. He requested the companies respond by noon Friday.


"The whole plan is to take a look at the system early in the Summer," Burns said. "Early May we look at the system, make sure we're ready and able to serve the public throughout the entire heat cycle."

Burns told ABC15 the Summer Preparedness workshop with utilities took place in May and the regulated utilities reported they were well equipped to meet the anticipated peaks of the Summer, even as supply-chain pressures mount across the industry. Tuesday's letter to the electric companies seeks to see if they are still able to "adequately, safely and reliably" serve customers through the heatwave, or if what happened in California could take place here.

"With the activities that are occurring over in California, including tight grid conditions that have repeatedly tested operators, we just want to double check," Burns said.

An APS representative told ABC15 they have adequate supply and reserve and don't anticipate any problems.

However, the rolling blackouts in California also caught the attention of Commissioner Lea Marquez Peterson. She is calling on the chairman to hold an emergency meeting amid wildfire concerns across California and the region.

"The risk to Arizonans and the fact that energy could be interrupted, that we had some kind of rolling blackout like California would have, would be really a public health issue," Peterson said. "It could be life and death in some cases for vulnerable populations."

 

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Hydro One employees support Province of Ontario in the fight against COVID-19

Hydro One COVID-19 Quarantine Support connects Ontario's Ministry of Health with trained customer service teams to contact travellers, encourage self-isolation, explain quarantine rules, and share public health guidance to slow community transmission.

 

Key Points

Hydro One helps Ontario's MOH contact travellers and guide self-isolation for quarantine compliance.

✅ Trained agents contact returning travellers in Ontario

✅ Guidance on self-isolation, symptoms, and quarantine compliance

✅ Supports public health while freeing front-line resources

 

Hydro One Networks Inc. ("Hydro One") announced support to the Ministry of Health (MOH) with its efforts in contacting travellers entering Ontario to ensure they comply with Canada's mandatory quarantine measures to combat COVID-19. Hydro One has volunteered employees from its customer service operations to contact thousands of returning travellers to provide them with timely guidance on how to self-isolate and spot the symptoms of the virus to help stop its spread.

"Our team is ready to lend a helping hand and support the province to help fight this invisible enemy," said Mark Poweska, President and CEO, Hydro One. "Our very dedicated customer service staff are highly professional and will be a valuable resource in supporting the province as it works to keep Ontarians safe and slow the spread of COVID-19."

"We have seen a tremendous response from all our companies across Ontario to help us fight the COVID-19 outbreak. With this one, Hydro One is helping the province to remind Ontarians they need to stay safe at home, especially self-isolating customers throughout Ontario," said Christine Elliott, Deputy Premier and Minister of Health. "We thank them for stepping up to be part of the fantastic province-wide effort acting together and allowing our front line workers to focus their efforts where they are needed most during this challenging time."

"We are pleased to see Hydro One volunteer its resources and expertise to support in the fight against COVID-19," said Greg Rickford, Minister of Energy, Northern Development and Mines. "In these unprecedented times, I am proud to see leaders in the energy sector rise to the challenge, from restoring power after major storms to supporting the people of our province."

Hydro One and its employees play a critical role in maintaining Ontario's electricity system. Since the COVID-19 outbreak began, Hydro One has been monitoring the evolving situation and adapting its operations, including on-site lockdowns for key staff as needed to ensure it continues to deliver the service Ontarians depend on while keeping our employees, customers and the public safe.

Hydro One has also developed a number of customer support measures during COVID-19, including a new Pandemic Relief Fund to offer payment flexibility and financial assistance to customers experiencing financial hardship, suspending late payment fees and returning approximately $5 million in security deposits to businesses across Ontario.

"Customers are counting on us now more than ever – not only to keep the lights on across the province, but to offer support during this difficult time," said Poweska. "Hydro One will continue to collaborate with industry partners and the province, including mutual aid assistance with other utilities, to find new ways to offer support where it is needed."

More information about how Hydro One is supporting its customers, including its ban on disconnections and other measures, can be found at www.HydroOne.com/PandemicRelief .

 

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Hydro One bends to government demands, caps CEO pay at $1.5M

Hydro One CEO Pay Cap sets executive compensation at $1.5 million under Ontario's provincial directive, linking incentives to transmission and distribution cost reductions, governance improvements, and board pay limits at the electricity utility.

 

Key Points

The Hydro One CEO Pay Cap limits pay to $1.5M, linking incentives to cost reductions and defined targets.

✅ Base salary set at $500,000 per year.

✅ Incentives capped at $1,000,000, tied to cost cuts.

✅ Board pay capped: chair $120,000; members $80,000.

 

Hydro One has agreed to cap the annual compensation of its chief executive at $1.5 million, the provincial utility said Friday, acquiescing to the demands of the Progressive Conservative government.

The CEO's base salary will be set at $500,000 per year, while short-term and long-term incentives are limited to $1 million. Performance targets under the pay plan will include the CEO's contributions to reductions in transmission and distribution costs, even as Hydro One has pursued a bill redesign to clarify charges for customers.

The framework represents a notable political victory for Premier Doug Ford, who vowed to fire Hydro One's CEO and board during the campaign and promised to reduce the annual earnings of Hydro One's board members.

In February, the province issued a directive to the board, ordering it to pay the utility's CEO no more than the $1.5 million figure it has now agreed to, as part of a broader push to lower electricity rates across Ontario.

Hydro One and the government had been at loggerheads over executive compensation, with the company refusing repeated requests to slash the CEO pay below $2,775,000. The board argued it would have difficulty recruiting suitable leaders for anything less, even as customers contend with a recovery rate that could raise hydro bills.

Further, the company agreed to pay the board chair no more than $120,000 annually and board members no more than $80,000 — figures Energy Minister Greg Rickford had outlined in his directive last month, amid calls for cleaning up Ontario's hydro mess from policy commentators.

"Hydro One's compliance with this directive allows us to move forward as a province. It sets the company on the right course for the future, proving that it can operate as a top-class electricity utility while reining in executive compensation and increasing public transparency," Rickford said in a statement issued Friday morning.

 

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Texas utilities struggle to restore power as Harvey hampers progress

Texas Gulf Coast Power Outages from Harvey continue as flooding, high winds, and downed lines paralyze Houston and coastal utilities, while restoration crews from out-of-state work to repair infrastructure and restore electricity across impacted communities.

 

Key Points

Power disruptions across Houston and the Gulf Coast from Harvey, driven by flooding, wind damage, and blocked access.

✅ CenterPoint warns multi-day outages in flooded zones.

✅ AEP Texas aided by crews from Kentucky, Illinois, Missouri.

✅ Entergy expects more outages as storm nears Galveston.

 

Hundreds of thousands of Texans were without power along the Gulf Coast as Tropical Storm Harvey left parts of the Houston area under water, with extended Houston outages compounding response efforts.

There were roughly 280,000 customers without power along the Texas's coast and in Houston and the surrounding areas on Monday, according to reported outages by the state's investor-owned utilities. Harvey, which made landfall on Friday, caused devastating flooding and knocked out power lines along its destructive path, similar to the Louisiana grid rebuild after Laura that required weeks of restoration.

CenterPoint Energy reported more than 100,000 outages earlier on Monday, though that figure was down to 91,744 shortly after 1 p.m. on Monday.

The company said it was unable to access hard-hit areas until floodwaters recede and electric infrastructure dries out, a challenge that, as seen in Florida power restoration efforts elsewhere, has taken weeks to resolve. Outages in the most flooded areas could last for several days, CenterPoint warned.

AEP Texas's coverage area south of Houston had 150,500 customers without electricity as of 11 a.m. ET on Monday. That was down from the peak of its outages on Saturday afternoon, which affected 220,000 customers.

Former FEMA deputy director: Texas has already begun recovery from storm  1:54 PM ET Mon, 28 Aug 2017 | 05:57

Corpus Christi and the surrounding areas along the Gulf Coast were still experiencing the most outages, while persistent Toronto outages after a spring storm underscored how long recovery can take in urban areas. AEP credited assistance from out-of-state workers for helping to get the lights back on.

"Thousands of resources have arrived from across the country to help AEP Texas with restoration efforts following this historic weather event. Crews from Kentucky, Illinois, Missouri and other states have arrived and are working on restoring power to those impacted by Hurricane Harvey," AEP said in a statement.

Entergy reported 29,500 customers were without power on Monday in areas north of Houston. The company warned that additional outages were expected if Harvey moves inland near the island city of Galveston on Wednesday as anticipated, a pattern similar to New Orleans during Ida where electricity failed despite levees holding.

Houston, Beaumont and Victoria are expected to see continued periods of torrential rain through Tuesday, before Harvey begins to move north on Wednesday and out of the flood zone by Thursday.

"Our crews are safely restoring power as quickly as possible, but the continued wind, rain and flooding are having an impact on restoration efforts," Entergy said in a statement.

South of Houston, about 7,500 Texas New Mexico Power Company customers were still experiencing outages, according to the company's outage map.

 

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