FERC Proposes Incentives for Cybersecurity Investments

On December 17, 2020, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) to consider incentives for voluntary cybersecurity investments.


The proposed incentives for utilities include a 200 basis-point adder to the rate of return on equity (ROE) and deferred cost recovery for certain expenses related to cybersecurity.


FERC proposed the cybersecurity-related incentives on the same day the U.S. Department of Energy confirmed its systems were breached in the SolarWinds hack.


See the NOPR here: https://www.ferc.gov/media/e-2-rm21-3-000

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