Opinion: Would we use Site C's electricity?


Site C Dam Construction

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Site C Dam Electricity Demand underscores B.C.'s decarbonization path, enabling electrification of EVs, heat pumps, and industry, aligning with BC Hydro forecasts and 2030/2050 GHG targets to supply dependable, renewable baseload power.

 

Key Points

Projected clean power tied to Site C, driven by B.C. electrification to meet 2030 and 2050 greenhouse gas targets.

✅ Aligns with 25-30% by 2030 and 55-70% by 2050 GHG cuts

✅ Supports EVs, heat pumps, and industrial electrification

✅ Provides dependable baseload alongside efficiency gains

 

There are valid reasons not to build the Site C dam. There are also valid reasons to build it. One of the latter is the rapid increase in clean electricity needed to reduce B.C.’s greenhouse gas emissions from burning natural gas, gasoline, diesel and other harmful fossil fuel products.

Although former Premier Christy Clark casually avoided near-term emissions targets, Prime Minister Justin Trudeau has set Canadian targets for both 2030 and 2050, and cleaning up Canada's electricity is critical to meeting them. Studies by my research group at Simon Fraser University and other independent analysts show that B.C.’s cost-effective contribution to these national targets requires us to reduce our emissions 25 to 30 per cent by 2030 and 55 to 70 per cent by 2050 — an energy evolution involving, among other things, a much greater use of electricity in buildings, vehicles and industry.

Recent submissions to the Site C hearing have offered widely different estimates of B.C.’s electricity demand in the decade after the project’s completion in 2025, some arguing the dam’s output will be completely surplus to domestic need for years and perhaps decades, even though improved B.C.-Alberta grid links could help balance regional demand. Some of this variation in demand forecasts is understandable. Industrial demand is especially difficult to predict, dependent as it is on global economic conditions and shifting trade relations. And there are legitimate uncertainties about B.C. Hydro’s ability to reduce electricity demand by promoting efficient products and behaviour through its Power Smart program. But some of the forecasts appear to be deliberate exaggerations, designed to support fixed positions for or against Site C.

Our university-based research team models the energy system changes required to meet national and provincial emissions targets, and we have been comparing estimates of the electricity demand implications. These estimates are produced by academics, as well as by key institutions like B.C. Hydro, the National Energy Board, and the governments of Canada and B.C.

Most electricity forecasts for B.C., including the most recent by B.C. Hydro, do not assume that B.C. reduces its greenhouse gas emissions by 25 to 30 per cent by 2030 and 55 to 70 per cent by 2050. When we adjust Hydro’s forecast for just the low end of these targets, we find that in its latest, August 30, submission to the Site C hearing, which followed the premier’s over-budget go-ahead on the project, Hydro has underestimated the demand for its electricity by about three terawatt-hours in 2025, four in 2030 and 10 in 2035. Hydro’s forecast indicates that it will need the five terawatt-hours from Site C. Our research shows that even if Hydro’s demand forecast is too high, appropriate climate policy nationally and in B.C. will absorb all the electricity the dam can produce soon after its completion.

B.C. Hydro does not forecast electricity demand to 2050. But, studies by us and others show that B.C. electricity demand will be almost double today’s levels if we are to reduce emissions by 55 to 70 per cent, even amid a documented risk of missing the 2050 target, in just over three decades while our population, economy, buildings and equipment grow significantly. Most mid- and small-sized vehicles will be electric. Most buildings will be well insulated and heated by electric resistance or electric heat-pumps, either individually or via district heating systems. And many low temperature industrial applications will be electric.

Aggressive efforts to promote energy efficiency will make an important contribution, such that energy demand will not grow nearly as fast as the economy. But it is delusional to think that humans will stop using energy. Even climate policy scenarios in which we assume unprecedented success with energy efficiency show dramatic increases in the consumption of electricity, this being the most favoured zero-emission form of energy as a replacement for planet-destroying gasoline and natural gas.

The completion of the Site C dam is a complicated and challenging societal choice, and delay-related cost risks highlighted by the premier underscore the stakes. There is unbiased evidence and argument supporting either completion or cancellation. But let’s stick to the unbiased evidence. In the case of our 2030 and 2050 greenhouse gas reduction targets, such evidence shows that we must substantially increase our generation of dependable electricity. If the Site C dam is built, and if we are true to our climate goals, all its electricity will be used in B.C. soon after completion.

Mark Jaccard is a professor of sustainable energy in the School of Resource and Environmental Management at Simon Fraser University.

 

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Electricity sales in the U.S. actually dropped over the past 7 years

US Electricity Sales Decline amid population growth and GDP gains, as DOE links reduced per capita consumption to energy efficiency, warmer winters, appliances, and bulbs, while hotter summers and rising AC demand may offset savings.

 

Key Points

US electricity sales fell 3% since 2010 despite population and GDP growth, driven by efficiency gains and warmer winters.

✅ DOE links drops to efficiency and warmer winters

✅ Per capita residential use fell about 7% since 2010

✅ Rising AC demand may offset winter heating savings

 

Since 2010, the United States has grown by 17 million people, and the gross domestic product (GDP) has increased by $3.6 trillion. Yet in that same time span, electricity sales in the United States actually declined by 3%, according to data released by the U.S. Department of Energy (DOE), even as electricity prices rose at a 41-year pace nationwide.

The U.S. decline in electricity sales is remarkable given that the U.S. population increased by 5.8% in that same time span. This means that per capita electricity use fell even more than that; indeed, the Department of Energy pegs residential electricity sales per capita as having declined by 7%, even as inflation-adjusted residential bills rose 5% in 2022 nationwide.

There are likely multiple reasons for this decline in electricity sales. Department of Energy analysts suggest that, at least in part, it is due to increased adoption of energy-efficient appliances and bulbs, like compact fluorescents. Indeed, the DOE notes that there is a correlation between consumer spending on “energy efficiency” and a reduction in per capita electricity sales, while utilities invest more in delivery infrastructure to modernize the grid.

Yet the DOE also notes that states with a greater increase in warm weather days had a corresponding decrease in electricity sales, as milder weather can reduce power demand across years. In southern states, the effect was most dramatic: for instance, from 2010 to 2016, Florida had a 56% decrease in cold weather days that would require heating and as a result, saw a 9% decrease in per capita electricity sales.

The moral is that warm winters save on electricity. But if global temperatures continue to rise, and summers become hotter, too, this decrease in winter heating spending may be offset by the increased need to run air conditioning in the summer, and given how electricity and natural gas prices interact, overall energy costs could shift. Indeed, it takes far more energy to cool a room than it does to heat it, for reasons related to the basic laws of thermodynamics. 

 

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Manitoba Hydro hikes face opposition as hearings begin

Manitoba Hydro rate hikes face public hearings over electricity rates, utility bills, and debt, with impacts on low-income households, Indigenous communities, and Winnipeg services amid credit rating pressure and rising energy costs.

 

Key Points

Manitoba Hydro seeks 7.9% annual increases to stabilize finances and debt, impacting electricity costs for households.

✅ Proposed hikes: 7.9% yearly through 2023/24

✅ Driven by debt, credit rating declines, rising interest

✅ Disproportionate impact on low-income and Indigenous communities

 

Hearings began Monday into Manitoba Hydro’s request for consecutive annual rate hikes of 7.9 per cent.  The crown corporation is asking for the steep hikes to commence April 1, 2018.

The increases would continue through 2023/2024, under a multi-year rate plan before dropping to what Hydro calls “sustainable” levels.

Patti Ramage, legal counsel for Hydro, said while she understands no one welcomes the “exceptional” rate increases, the company is dealing with exceptional circumstances.

It’s the largest rate increase Hydro has ever asked for, though a scaled-back increase was discussed later, saying rising debt and declining credit ratings are affecting its financial stability.

President and CEO Kelvin Shepherd said Hydro is borrowing money to fund its interest payments, and acknowledged that isn’t an effective business model.

Hydro’s application states that it will be spending up to 63 per cent of its revenue on paying financial expenses if the current request for rate hikes is not approved.

If it does get the increase it wants, that number could shrink to 45 per cent – which Ramage says is still quite high, but preferable to the alternative.

She cited the need to take immediate action to fix Hydro’s finances instead of simply hoping for the best.

“The worst thing we can do is defer action… that’s why we need to get this right,” Ramage said.

A number of intervenors presented varying responses to Hydro’s push for increased rates, with many focusing on how the hikes would affect Manitobans with lower incomes.

Senwung Luk spoke on behalf of the Assembly of Manitoba Chiefs, and said the proposed rates would hit First Nations reserves particularly hard.

He noted that 44.2 per cent of housing on reserves in the province needs significant improvement, which means electricity use tends to be higher to compensate for the lower quality of infrastructure.

Luk says this problem is compounded by the higher rates of poverty in Indigenous populations, with 76 per cent of children on reserves in Manitoba living below the poverty line.

If the increase goes forward, he said the AMC hopes to see a reduced rate for those living on reserves, despite a recent appeal court ruling on such pricing.

Byron Williams, speaking on behalf of the Consumers Coalition, said the 7.9 per cent increase unreasonably favours the interests of Hydro, and is unjustly biased against virtually everyone else.

In Saskatchewan, the NDP criticized an SaskPower 8 per cent rate hike as unfair to customers, highlighting regional concerns.

Williams said customers using electric space heating would be more heavily targeted by the rate increase, facing an extra $13.14 a month as opposed to the $6.88 that would be tacked onto the bills of those not using electric space heating.

Williams also called Hydro’s financial forecasts unreliable, bringing the 7.9 per cent figure into question.

Lawyer George Orle, speaking for the Manitoba Keewatinowi Okimakanak, said the proposed rate hikes would “make a mockery” of the sacrifices made by First Nations across the province, given that so much of Hydro’s infrastructure is on Indigenous land.

The city of Winnipeg also spoke out against the jump, saying property taxes could rise or services could be cut if the hikes go ahead to compensate for increased, unsustainable electricity costs.

In British Columbia, a BC Hydro 3 per cent increase also moved forward, drawing attention to affordability.

A common theme at the hearing was that Hydro’s request was not backed by facts, and that it was heading towards fear-mongering.

Manitoba Hydro’s CEO begged to differ as he plead his case during the first hearing of a process that is expected to take 10 weeks.

 

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Despite delays, BC Hydro says crews responded well to 'atypical' storm

BC Hydro Ice Storm Response to Fraser Valley power outages highlights freezing rain impacts, round the clock crews, infrastructure challenges, and climate change risks across the Lower Mainland during winter weather and restoration efforts.

 

Key Points

A plan for freezing rain events that prioritizes safety, rapid repairs, and clear communication to restore power.

✅ Prioritizes hazards, critical loads, and public safety first

✅ Deploys crews, contractors, and equipment across affected areas

✅ Addresses climate risks without costly undergrounding expansion

 

Call it the straw that broke the llama's back.

The loss of power during recent Fraser Valley ice storms meant Jennifer Quick, who lives on a Mission farm, had no running water, couldn't cook with appliances and still had to tend to a daughter sick with stomach flu.

As if that wasn't enough, she had to endure the sight of her shivering llamas.

"I brought them outside at one point and when I brought them back in, they had icicles on their fur," she said, adding the animals stayed in the warmth of their barn from then on.

For three and a half days, Quick and her family were among more than 160,000 BC Hydro customers in the Fraser Valley left in the dark after ice storms whipped through the region.

BC Hydro expects to get all customers back online Tuesday, five days after the storm hit.

And with another storm possibly on the horizon, the utility is defending its response to the treacherous weather, noting that windstorm power outages can be widespread.

BC Hydro spokesperson Mora Scott said the utility has a "best in class" storm response system, similar to PG&E winter storm prep in the U.S.

"In a typical storm situation we normally have 95 per cent of our customers back up within 24 hours. Ice storms are different and obviously this was an atypical storm for us," she said.

Scott said that in this case, the utility got power back on for 75 per cent of customers within 24 hours. It took the work of 450 employees called in from around B.C., working around the clock, a mobilization echoed by Sudbury Hydro crews after a storm, she said.

The work was complicated by trees falling near crews, icy roads, low visibility and even substations so frozen over the ice had to be melted off with blowtorches.

She said that in the long term, BC Hydro has no plans to make changes to how it responds to extreme ice storms or how infrastructure is built.

"Seeing ice build up in the Lower Mainland like this is a rare event," she said. "So to build for extremes like that probably doesn't make a lot of sense."

 

Climate change will bring storms

But CBC meteorologist Johanna Wagstaffe said that might not always be the case as climate change continues to impact our planet.

"The less severe winter events, like light snowfall, will happen less often," she said. "But the disruptive events — like last week's storm — will actually happen more often and we are already seeing this shift happen."

Marc Eliesen, a former CEO of BC Hydro in the early 1990s, said the utility needs to keep that in mind when planning for worst-case scenarios.

"This [storm] is a condition characteristic of the weather in the east, particularly in Ontario and Quebec, where freezing rain outages in Quebec are more common, which is organized to deal with freezing rain and heavy snow on the lines," he said. "This is a new phenomenon for British Columbia."

Eliesen questions whether BC Hydro has adequate equipment and crew training to deal with ice storms if they become more frequent, pointing to Hydro One storm restoration in Ontario as a comparison.

 

'Always something we can learn'

Scott disagrees with some of Eliesen's points.

She said some of the crews called in to deal with the recent storm come from northern B.C. and the Interior and have plenty of experience with snow.

"There's always something we can learn in every major storm situation," she said.

The idea of putting power lines underground was raised by some CBC readers and listeners, but Scott said running underground lines is five to 10 times the cost of running lines on pole, so it is done sparingly. Besides, equipment like substations and transmission lines need to be kept aboveground.

Meanwhile, Wagstaffe said that beginning Thursday, wintry weather could return to the Lower Mainland.

 

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Power Outage in Northeast D.C.

Northeast D.C. Power Outage highlights Pepco substation equipment failure, widespread service disruptions, grid reliability concerns, and restoration efforts, with calls for smart grid upgrades, better communication, and resilient infrastructure to protect residents, schools, and businesses.

 

Key Points

A Pepco substation failure caused outages, prompting restoration work and plans for smarter, resilient grid upgrades.

✅ Pepco cites substation equipment failure as root cause

✅ Crews prioritized rapid restoration and customer updates

✅ Calls grow for smart grid, resilience, and transparency

 

A recent power outage affecting Northeast Washington, D.C., has drawn attention to the vulnerabilities within the city’s energy infrastructure. The outage, caused by equipment failure at a Pepco substation, left thousands of residents in the dark and raised concerns about the reliability of electricity services in the area.

The Outage: What Happened?

On a typically busy weekday morning, Pepco, the local electric utility, reported significant power disruptions that affected several neighborhoods in Northeast D.C. Initial reports indicated that around 3,000 customers were without electricity due to issues at a nearby substation. The outages were widespread, impacting homes, schools, and businesses, and reflecting pandemic energy insecurity seen in many communities, creating a ripple effect of inconvenience and frustration.

Residents experienced not only the loss of power but also disruptions in daily activities. Many were unable to work from home, students faced challenges with remote learning, and businesses had to close or operate under limited conditions. The timing of the outage further exacerbated the situation, as it coincided with a period of increased demand for electricity, making efforts to prevent summer outages even more crucial for residents and businesses.

Community Response

In the wake of the outage, local community members and leaders quickly mobilized to assess the situation. Pepco crews were dispatched to restore power as swiftly as possible, but residents were left grappling with the immediate consequences. Local organizations and community leaders stepped in to provide support, especially as extreme heat can exacerbate electricity struggles for vulnerable households, offering resources such as food and shelter for those most affected.

Social media became a vital tool for residents to share information and updates about the situation. Many took to platforms like Twitter and Facebook to report their experiences and seek assistance. This grassroots communication helped keep the community informed and fostered a sense of solidarity during the disruption.

The Utility's Efforts

Pepco’s response involved not only restoring power but also addressing the underlying issues that led to the outage. The utility company communicated its commitment to investigating the cause of the equipment failure and ensuring that similar incidents would be less likely in the future. As part of this commitment, Pepco outlined plans for infrastructure upgrades, despite supply-chain constraints facing utilities nationwide, aimed at enhancing reliability across its service area.

Moreover, Pepco emphasized the importance of communication during outages. The company has been working to improve its notification systems, ensuring that customers receive timely updates about outages and restoration efforts. Enhanced communication can help mitigate the frustration experienced during such events and keep residents informed about when they can expect power to be restored.

Broader Implications for D.C.'s Energy Infrastructure

This recent outage has sparked a larger conversation about the resilience of Washington, D.C.’s energy infrastructure. As the city continues to grow and evolve, the demand for reliable electricity is more critical than ever. Frequent outages can undermine public confidence in utility providers and highlight the need for ongoing investment in infrastructure amid an aging U.S. grid that complicates renewable deployment and EV adoption across the country.

Experts suggest that to ensure a more reliable energy supply, utilities must embrace modernization efforts, including the integration of smart grid technology and renewable energy sources. These innovations can enhance the ability to manage electricity supply and demand, especially during unprecedented demand in the Eastern U.S. when heatwaves strain systems, reduce outages, and improve response times during emergencies.

The Path Forward

In response to the outage, community advocates are calling for greater transparency from Pepco and other utility companies. They emphasize the importance of holding utilities accountable for maintaining reliable service and communicating effectively with customers, while also promoting customer bill-reduction initiatives that help households manage costs. Public forums and discussions about energy policy can empower residents to voice their concerns and contribute to solutions.

As D.C. looks to the future, it is essential to prioritize investments in energy infrastructure that can withstand the demands of a growing population. Collaborations between local government, utility companies, and community organizations can drive initiatives aimed at enhancing resilience and ensuring that all residents have access to reliable electricity.

The recent power outage in Northeast D.C. serves as a reminder of the challenges facing urban energy infrastructure. While Pepco's efforts to restore power and improve communication are commendable, the incident highlights the need for long-term solutions to enhance reliability. By investing in modern technology and fostering community engagement, D.C. can work towards a more resilient energy future, ensuring that residents can count on their electricity service even in times of crisis.

 

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UK Energy Industry Divided Over Free Electricity Debate

UK Free Electricity Debate weighs soaring energy prices against market regulation, renewables, and social equity, examining price caps, funding via windfall taxes, grid investment, and consumer protection in the UK's evolving energy policy landscape.

 

Key Points

A policy dispute over free power, balancing consumer relief with market stability, renewables, and investment.

✅ Pros: relief for households; boosts efficiency and green adoption.

✅ Cons: risks to market signals, quality, and grid investment.

✅ Policy options: price caps, windfall taxes, targeted subsidies.

 

In recent months, the debate over free electricity in the UK has intensified, revealing a divide within the energy sector. With soaring energy prices and economic pressures impacting consumers, the discussion around providing free electricity has gained traction. However, the idea has sparked significant controversy among industry stakeholders, each with their own perspectives on the feasibility and implications of such a move.

The Context of Rising Energy Costs

The push for free electricity is rooted in the UK’s ongoing energy crisis, exacerbated by geopolitical tensions, supply chain disruptions, and the lingering effects of the COVID-19 pandemic. As energy prices reached unprecedented levels, households faced the harsh reality of skyrocketing bills, prompting calls for government intervention to alleviate financial burdens.

Supporters of free electricity argue that it could serve as a vital lifeline for struggling families and businesses. The proposal suggests that by providing a certain amount of electricity for free, the government could help mitigate the effects of rising costs while encouraging energy conservation and efficiency.

Industry Perspectives

However, the notion of free electricity has not been universally embraced within the energy sector. Some industry leaders express concerns about the financial viability of such a scheme. They argue that providing free electricity could undermine the market dynamics that incentivize investment in infrastructure and renewable energy, in a market already exposed to natural gas price volatility today. Critics warn that if energy companies are forced to absorb costs, it could lead to diminished service quality and investment in necessary advancements.

Additionally, there are worries about how free electricity could be funded. Proponents suggest that a tax on energy companies could generate the necessary revenue, but opponents question whether this would stifle innovation and competition. The fear is that placing additional financial burdens on energy providers could ultimately lead to higher prices in the long run.

Renewable Energy and Sustainability

Another aspect of the debate centers around the UK’s commitment to transitioning to renewable energy sources. Supporters of free electricity emphasize that such a policy could encourage more widespread adoption of green technologies by making energy more accessible. They argue that by removing the financial barriers associated with energy costs, households would be more inclined to invest in solar panels, heat pumps, and other sustainable solutions.

On the other hand, skeptics contend that the focus should remain on ensuring a stable and reliable energy supply as the UK moves toward its climate goals. They caution against implementing policies that might disrupt the balance of the energy market, potentially hindering the necessary investments in renewable infrastructure.

Government's Role

As discussions unfold, the government’s role in this debate is crucial. Policymakers must navigate the complex landscape of energy regulation, market dynamics, and consumer needs. The government has already introduced measures aimed at assisting vulnerable households, such as energy price caps and direct financial support. However, the question remains whether these initiatives go far enough in addressing the root causes of the energy crisis.

In this context, the government faces pressure from both consumers demanding relief and industry leaders advocating for market stability, including proposals to end the link between gas and electricity prices to curb price volatility. The challenge lies in finding a middle ground that balances immediate support for households with long-term sustainability and investment in the energy sector.

Future Implications

The ongoing debate about free electricity in the UK underscores broader themes related to energy policy, market regulation, and social equity, with rising electricity prices abroad offering context for comparison. As the country navigates its energy transition, the decisions made today will have far-reaching implications for both consumers and the industry.

If the government chooses to pursue a model that includes free electricity, it will need to carefully consider how to implement such a system without jeopardizing the market. Transparency, stakeholder engagement, and thorough impact assessments will be essential to ensure that any new policies are sustainable and equitable.

Conversely, if the concept of free electricity is ultimately rejected, the focus will likely shift back to addressing energy costs through other means, such as enhancing energy efficiency programs or increasing support for vulnerable populations.

The divide within the UK’s energy industry regarding free electricity highlights the complexities of balancing consumer needs with market stability. As the energy crisis continues to unfold, the conversations surrounding this issue will remain at the forefront of public discourse. Ultimately, finding a solution that addresses the immediate challenges while promoting a sustainable energy future will be key to navigating this critical juncture in the UK’s energy landscape.

 

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Symantec Proves Russian

Dragonfly energy sector cyberattacks target ICS and SCADA across critical infrastructure, including the power grid and nuclear facilities, using spearphishing, watering-hole sites, supply-chain compromises, malware, and VPN exploits to gain operational access.

 

Key Points

Dragonfly APT campaigns target energy firms and ICS to gain grid access, risking manipulation and service disruption.

✅ Breaches leveraged spearphishing, watering-hole sites, and supply chains.

✅ Targeted ICS, SCADA, VPNs to pivot into operational networks.

✅ Aimed to enable power grid manipulation and potential outages.

 

An October, 2017 report by researchers at Symantec Corp., cited by the U.S. government, has linked recent US power grid cyber attacks to a group of hackers it had code-named "Dragonfly", and said it found evidence critical infrastructure facilities in Turkey and Switzerland also had been breached.

The Symantec researchers said an earlier wave of attacks by the same group starting in 2011 was used to gather intelligence on companies and their operational systems. The hackers then used that information for a more advanced wave of attacks targeting industrial control systems that, if disabled, leave millions without power or water.

U.S. intelligence officials have long been concerned about the security of the country’s electrical grid. The recent attacks, condemned by the U.S. government, striking almost simultaneously at multiple locations, are testing the government’s ability to coordinate an effective response among several private utilities, state and local officials, and industry regulators.

#google#

While the core of a nuclear generator is heavily protected, a sudden shutdown of the turbine can trigger safety systems. These safety devices are designed to disperse excess heat while the nuclear reaction is halted, but the safety systems themselves may be vulnerable to attack.

The operating systems at nuclear plants also tend to be legacy controls built decades ago and don’t have digital control systems that can be exploited by hackers.

“Since at least March 2016, Russian government cyber actors… targeted government entities and multiple U.S. critical infrastructure sectors, including the energy, nuclear, commercial facilities, water, aviation, and critical manufacturing sectors,” according to Thursday’s FBI and Department of Homeland Security report. The report did not say how successful the attacks were or specify the targets, but said that the Russian hackers “targeted small commercial facilities’ networks where they staged malware, conducted spearphishing, and gained remote access into energy sector networks.” At least one target of a string of infrastructure attacks last year was a nuclear power facility in Kansas.

Symantec doesn’t typically point fingers at particular nations in its research on cyberattacks, said Eric Chien, technical director of Symantec’s Security Technology and Response division, though he said his team doesn’t see anything it would disagree with in the new federal report. The government report appears to corroborate Symantec’s research, showing that the hackers had penetrated computers and accessed utility control rooms that would let them directly manipulate power systems, he says.

“There were really no more technical hurdles for them to do something like flip off the power,” he said.

And as for the group behind the attacks, Chien said it appears to be relatively dormant for now, but it has gone quiet in the past only to return with new hacks.

“We expect they’re sort of retooling now, and they likely will be back,”

 


 

In some cases, Dragonfly successfully broke into the core systems that control US and European energy companies, Symantec revealed.

“The energy sector has become an area of increased interest to cyber-attackers over the past two years,” Symantec said in its report.

“Most notably, disruptions to Ukraine’s power system in 2015 and 2016 were attributed to a cyberattack and led to power outages affecting hundreds of thousands of people. In recent months, there have also been media reports of attempted attacks on the electricity grids in some European countries, as well as reports of companies that manage nuclear facilities in the US being compromised by hackers.

“The Dragonfly group appears to be interested in both learning how energy facilities operate and also gaining access to operational systems themselves, to the extent that the group now potentially has the ability to sabotage or gain control of these systems should it decide to do so. Symantec customers are protected against the activities of the Dragonfly group.”

In recent weeks, senior US intelligence officials said that the Kremlin believes it can launch hacking operations against the West with impunity, including a cyber weapon that can disrupt power grids, according to assessments.

The DHS and FBI report further elaborated: “This campaign comprises two distinct categories of victims: staging and intended targets. The initial victims are peripheral organisations such as trusted third-party suppliers with less-secure networks, referred to as ‘staging targets’ throughout this alert.

“The threat actors used the staging targets’ networks as pivot points and malware repositories when targeting their final intended victims. National Cybersecurity and Communications Integration Center and FBI judge the ultimate objective of the actors is to compromise organisational networks, also referred to as the ‘intended target’.”

According to the US alert, hackers used a variety of attack methods, including spear-phishing emails, watering-hole domains, credential gathering, open source and network reconnaissance, host-based exploitation, and deliberate targeting of ICS infrastructure.

The attackers also targeted VPN software and used password cracking tools.

Once inside, the attackers downloaded tools from a remote server and then carried out a number of actions, including modifying key systems to store plaintext credentials in memory, and built web shells to gain command and control of targeted systems.

“This actors’ campaign has affected multiple organisations in the energy, nuclear, water, aviation, construction and critical manufacturing sectors, with hundreds of victims across the U.S. power grid confirmed,” the DHS said, before outlining a number of steps that IT managers in infrastructure organisations can take to cleanse their systems and defend against Russian hackers. he said.
 

 

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