New FERC rule creates incentive-based rate treatment for utilities investing in cybersecurity
April 24, 2023
A final rule issued by the Federal Energy Regulatory Commission (FERC) last week could encourage the adoption of cybersecurity technology and collaboration among utilities, thanks to its creation of an incentive-based rate treatment.
That treatment will be available to utilities undertaking certain voluntary cybersecurity investments in items such as advanced cybersecurity technology or participating in cybersecurity threat information sharing programs. While a pre-qualified list of cybersecurity investments has been issued, others will be handled on a case-by-case basis, with utilities gaining the ability to request incentives for various solutions to their unique situations. Utilities will also be able to request incentives for early compliance with new cybersecurity reliability standards.