Utilities and Regulators Contemplate The Potential Costs Of Enhanced Physical Security

Feb 24, 2014

Reading Time : 1 min

By: Shawn Whites (paralegal)

The security of the electric grid, both cyber- and physical, recently has received much public attention due to publicity surrounding a sniper attack on a California substation (see our blog post on grid security here). But FERC Commissioners John R. Norris and Philip D. Moeller advise against widespread panic and superfluous spending on security measures that could “inadvertently promote the prospect of additional copycat attacks” by publicly highlighting the grid’s areas of vulnerability. In their February 20, 2014 statements (available here and here), both Commissioners acknowledged that there is always room for improving security measures. Commissioner Norris suggested that utilities continue to focus on “modernizing” the grid with the further deployment of phasor measurement units, wide-area management systems, enhanced situational awareness to improve reliability and efficiency, and increased use of microgrids and smart grid technology to improve system resiliency. Norris also championed the planned initiatives between NERC and industry stakeholders as concrete, smart solutions to growing threats. Norris fears, however, that actions such as the erection of physical barriers—called for specifically by Sen. Charles E. Schumer (D-NY) (statement here)—are “20th century solution[s] for a 21st century problem.”

            Norris’s words of caution are well-timed. It has recently been reported that Dominion Virginia Power is planning to spend up to $500 million on the installation of anti-climb fences and other steel barriers around their most critical infrastructure. In addition, a recent order issued by the New York State Public Service Commission requires that Con Edison invest $1 billion over the next four years to protect its infrastructure from natural threats such as Hurricane Sandy, and human security threats such as the Metcalf incident. While Commissioner Norris conceded that some such measures may be warranted, he highlighted the risk of  “piling up billions in consumer costs in rate base” attempting to protect “400,000 miles of transmission lines and 55,000 substations” with walls and fences.  

Share This Insight

Previous Entries

Speaking Energy

March 3, 2026

Macroeconomic turbulence and volatile commodity markets significantly influenced oil & gas M&A activity throughout 2025, with deals showing renewed momentum only in the year's second half.  

...

Read More

Speaking Energy

February 24, 2026

On February 19, 2026, the Federal Energy Regulatory Commission (FERC) issued an order rescinding the soft price cap for bilateral spot market energy sales in the Western Electricity Coordinating Council (WECC) region.1 As previously covered, on July 15, 2025, FERC initiated a Federal Power Act Section 206 proceeding following the D.C. Circuit’s decision finding that FERC must apply the Mobile-Sierra public interest standard before ordering refunds for above-cap bilateral sales and vacating FERC’s orders requiring refunds for certain bilateral spot market transactions in the WECC region that exceeded the $1,000 MWh soft price cap.2 FERC’s Order follows through on the proposal it made last July to eliminate the WECCs soft price cap and marks a recognition that Western wholesale markets have evolved over the past two decades to become sufficiently competitive to render the soft price cap unnecessary.  

...

Read More

Speaking Energy

February 23, 2026

The oil & gas industry is experiencing a fundamental transformation in how companies access and deploy capital in 2026. Despite strong balance sheets and robust free cash flow generation, the sector is witnessing strategic shifts in funding sources and investment priorities that signal a new era of capital allocation.

...

Read More

Speaking Energy

February 23, 2026

Akin is proud to serve as a Summit Sponsor of Infocast’s Solar + Wind Finance & Investment Summit taking place March 15-18 in Phoenix.

...

Read More

© 2026 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.