Utility Security Is So Bad, US DoE Offers Rate Cuts To Improve It

The US Department of Energy has proposed regulations to financially reward cybersecurity modernization at power plants by offering rate deals for everything from buying new hardware to paying for outside help. The Register reports: In a notice of proposed rulemaking published earlier this week (which nullified a similar 2021 plan), the DoE said the time was right "to establish rules for incentive-based rate treatments" for utilities making investments in cybersecurity technology. The DoE said these included products and services, and information like plans, policies, procedures and other info related to cybersecurity tech. [...] In addition to stimulating voluntary security improvements, the proposed policy also encourages utilities to join cyber threat information sharing programs, and mandates regular reports for the duration of incentives. The DoE's proposal includes a long list of things it said would be eligible for incentive-based rate treatments. While it's too long to include here, the DoE's language about what it will allow means it could essentially include anything that could "materially improve cybersecurity," be that a product, service or info-sharing program. The DoE said that hardware incentives would have a five-year depreciation period, while activities would cease to be incentivized once they become mandatory. As for how the rewards would be applied, the proposal specifies two methods: A return on equity (RoE) of 200 base points (2 percent) that would be applied to transmission rates, and a cost-recovery deferral that would allow them to amortize equipment purchased and treated as a regulatory asset.

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