FERC Bolsters Cyber Defenses for Low-Impact Power Grids
Published Date: 3/24/2026
Rule
Summary
The Federal Energy Regulatory Commission just approved a new cyber security rule called CIP-003-11 to better protect smaller electric facilities from cyberattacks. This update affects companies running low-impact electric systems and kicks in on May 26, 2026. It helps keep the power grid safer without adding big costs, by tightening security controls where it counts.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 3 costs, 0 mixed.
Stronger power-grid cyber defenses
The Commission approved Reliability Standard CIP-003-11 to strengthen cybersecurity protections for low-impact bulk electric system (BES) cyber systems, improving the reliability of the bulk electric system. The rule is effective May 26, 2026 and the Commission found the Standard "improves the reliability of the bulk electric system."
Paperwork and compliance burden for 1,673 entities
All 1,673 U.S. entities on the NERC Compliance Registry subject to CIP Standards must conform to CIP-003-11 and maintain documentation for audits. The Commission estimates a total annualized burden of 257,642 hours and a total cost of $24,991,274 (total for FERC-725B(5) under CIP-003-11), with an annual cost burden of $8,330,425 per year for Years 1-3.
Estimated per-small-entity implementation cost
The Commission estimates 406 of the affected entities are small entities; each of those 406 small entities will incur an estimated one-time implementation cost of approximately $19,000 plus an ongoing paperwork burden of $14,938 over Years 1-3, for a total estimated cost of $33,938 per small entity. The Commission certified the rule will not have a "significant economic impact" on small entities.
New low-impact cybersecurity controls required
CIP-003-11 requires registered entities responsible for low-impact BES Cyber Systems to implement controls that authenticate remote users, protect authentication information in transit, and detect malicious communications to or between assets with external routable connectivity. These operational requirements take effect May 26, 2026.
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