Utilities Brace For FERC Scrutiny Of Vendor Cybersecurity

Law360 (January 25, 2019, 3:39 PM EST) -- U.S. utility companies are preparing to satisfy new rules from the Federal Energy Regulatory Commission that transfer cybersecurity standards onto third-party vendors, an area expected to be an enforcement priority in the coming year with regulators and defense officials identifying contracted services as weak links in the nation's power grid.

Medium-sized and large power companies throughout the country have been ordered to keep tabs on the cybersecurity of thousands of contractors, a directive that took effect in the final days of 2018 and will enter compliance checks in the energy sector next year.

"It's hard enough for electric utilities to ensure...

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