Cybersecurity Incentives Policy White Paper

In March 2019, pursuant to section 219 of the Federal Power Act (FPA), the Commission issued a Notice of Inquiry seeking comment on the scope and implementation of its electric transmission incentives policy. In March 2020, the Commission issued a Notice of Proposed Rulemaking on several topics considered in the 2019 Notice of Inquiry. In the Transmission Incentives NOPR, the Commission acknowledged that, although reliability is clearly delineated as a benefit to be promoted by incentives, there are differing mandates for promoting reliability under FPA sections 2154 and 219. Further, the Commission stated that cybersecurity is an important part of reliability and indicated that it would address cybersecurity incentives independently in a separate, future proceeding. This staff paper discusses a potential new framework for providing transmission incentives to utilities for cybersecurity investments.

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