The Federal Energy Regulatory Commission is demanding heightened security standards needed to protect the nation's electrical grid. On March 7, it directed the North American Electric Reliability Corporation, a non-profit entity that sets standards for bulk power suppliers, to develop reliability standards, address the risk of physical security threats, and safeguard confidential information.

“Because the grid is so critical to all aspects of our society and economy, protecting its reliability and resilience is a core responsibility of everyone who works in the electric industry.” FERC Acting Chairman Cheryl LaFleur said in a statement.

The new standards require owners and operators to perform a risk assessment of their power facilities and determine whether they would have a critical impact on power transmission if rendered inoperable or damaged. They also must evaluate potential vulnerabilities at those facilities, and develop and implement a security plan to address potential threats.

FERC also directed NERC to include a procedure that ensures confidential treatment of sensitive or confidential information, but “still allows for the appropriate oversight to ensure compliance.” NERC was given 90 days to submit the proposed standards.