Topic: Nerc

The North American Electric Reliability Corporation (NERC) warned that two-thirds of the United States faces a heightened risk of power outages this summer. High temperatures and surging demand are expected to strain the grid, particularly in the Midwest and Western U.S. The situation is compared to the California energy crisis under Gray Davis and the Enron scandal, suggesting political mismanagement of infrastructure.

A producer working for a major electric provider reports on a nationwide drill involving simulated drone attacks on substations. The drill's timing, occurring immediately after the Paris attacks, raises concerns about the potential for a real-world grid event.

Two major regional preparedness exercises are scheduled: "Urban Shield" in Alameda County and "Grid Ex II" nationwide. Grid Ex II will simulate a massive physical and cyber attack on the North American power grid, involving over 150 companies and government agencies from the US, Canada, and Mexico. The hosts view these drills as "slave training" and potential precursors to real-world incidents.

John Dixon details the business case for the smart grid, which allows utilities to remotely dampen electrical demand during peak times to save on infrastructure costs. However, he warns that making every thermostat an IP-addressable device creates a massive attack surface for nation-state actors like Iran or China. He notes the confusion within the private sector regarding which federal agency to follow during a large-scale infrastructure attack.

The Wall Street Journal reported that cyber spies have penetrated the U.S. electrical grid, a story the hosts characterize as a plant to secure stimulus funding for the "smart grid." The North American Electric Reliability Corporation (NERC) is identified as the source of the security warnings. Skepticism is expressed regarding why critical infrastructure is connected to the public internet at all.