FERC Approves Updated Rules to Shield Power Grid from Physical Threats
Published Date: 9/15/2026
Notice
Summary
The North American Electric Reliability Corporation (NERC) just got the green light to update its physical security rules for electric transmission stations and substations. This new standard, CIP-014-4, replaces the old one to better protect our power grid from threats. Utilities must follow these updated rules soon, helping keep the lights on safely without extra costs for consumers.
Analyzed Economic Effects
6 provisions identified: 1 benefits, 4 costs, 1 mixed.
Federal approval of CIP-014-4
The Federal Energy Regulatory Commission approved NERC's new Physical Security Reliability Standard CIP-014-4 to strengthen protection of key transmission stations, substations, and primary control centers. The Commission approved the standard and its implementation plan, which becomes effective October 1, 2028.
36-month risk-assessment cycle
Transmission owners must review and, if needed, update their list of applicable transmission stations and substations at least once every 36 calendar months, and initial risk assessments required under Requirement R5 must be completed on or before the effective date. The single 36-calendar-month cycle replaces prior staggered cycles (30 or 60 months).
Stricter risk-assessment technical rules
CIP-014-4 requires transmission owners to maintain a documented risk-assessment methodology that includes: technically justified thresholds for unacceptable generation and load loss; both steady-state and dynamic simulations using at least one system peak load case and one system off-peak load case; and detailed simulation specifications (including assumptions like prior loss of communications).
1500-foot proximate-facility rule
Each transmission owner with an applicable station or substation must identify existing proximate Bulk Electric System transmission stations and substations within 1,500 feet (457 meters), measured fence line to fence line. That list of proximate facilities must be included in the required risk assessments.
Coordination for jointly owned facilities
Transmission owners that jointly own applicable transmission stations or substations must coordinate with other owners to determine and document individual and joint responsibilities under the risk-assessment and implementation requirements (Requirements R3 and R5).
Estimated paperwork burden and costs
FERC estimates the change in annual reporting and recordkeeping burden for U.S. transmission owners at 3,440 total hours across 344 respondents, with an estimated total cost of $286,862 and an average cost per respondent of $833.90. The estimates relate to the FERC-725U information collection for CIP-014.
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