Monday, December 5, 2022

Who shot the North Carolina power grid?

Presented by Equinor: Your guide to the political forces shaping the energy transformation
Dec 05, 2022 View in browser
 
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By Timothy Cama

Presented by Equinor

Workers work on equipment at the West End Substation, at 6910 NC Hwy 211 in West End, N.C., Monday, Dec. 5, 2022, where a serious attack on critical infrastructure has caused a power outage to many around Southern Pines, N.C. (AP Photo/Karl B DeBlaker)

Crews work on equipment at the West End Substation in West End, N.C., Monday, where a serious attack on critical infrastructure has caused a power outage. | AP Photo/Karl B DeBlaker

The deepest mystery in the energy world is a weekend shooting attack that damaged a pair of electric substations in Moore County, N.C. — a reminder that the power grid faces dangers from physical attacks, not just cyber ones.

About 34,000 customers are still without power after enduring frigid temperatures following Saturday's shootings, which law enforcement officials characterized as deliberate. Duke Energy Corp. has said outages could last until Thursday , and officials say repairs could be complex.

Meanwhile, the shooter or shooters remain unknown, as does the motive. (Theories abound online, including people noting that the outage struck during a drag show.) Whatever the reason for it, energy experts say the attack exposes a weakness in grid security.

"It clearly indicates that we're still vulnerable and we haven't taken sufficient action to address the vulnerabilities," said Jon Wellinghoff, a former chair of the Federal Energy Regulatory Commission, which oversees rules governing the grid.

While government and industry have recently focused on hardening the grid against cybersecurity threats and extreme weather from climate change, physical security hasn't gotten quite the same attention.

The last time federal regulators took major action on this type of threat was in 2013, after unknown attackers shot a high-voltage Pacific Gas & Electric Co. substation in Coyote, Calif. The attack caused millions of dollars in damage, though a quick response from grid operators meant the power stayed on. The Department of Homeland Security suspected an "insider" was involved , but no one was ever charged.

The incident spurred FERC to set new standards for electrical infrastructure security, including shielding high-voltage transformers. Certain kinds of transformers are in short supply nationwide , with wait times for some supplies stretching as long as two to three years, making them an especially worrying target.

Tom Alrich, an electric grid security consultant, said the protections resulting from the FERC action were rigorous — and expensive.

Wellinghoff, who was FERC chair at the time, believes at least one of the substations damaged in Saturday's attack should be subject to those regulations. But Alrich said they are probably not covered by the standard because their voltages are too low.

"However, even if the N.C. substations had been in scope, it's doubtful these attacks could have been prevented, although they might have had less impact," Alrich said.

It's Monday — Thank you for tuning into POLITICO's Power Switch. I'm your host today, Timothy Cama . Arianna will be back soon! Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to tcama@eenews.net.

Today in POLITICO Energy's podcast: Josh Siegel and Kelsey Tamborrino look at the four solar companies the Commerce Department said are trying to evade tariffs.

 

A message from Equinor:

The energy transition is the defining opportunity of our time. We all have a role to play. At Equinor, we're doing our part by growing our renewable energy portfolio and lowering emissions from production. By the time the global population reaches 9 billion in 2050, our goal is to have net-zero emissions. Discover more about Equinor at www.equinor.com/USA.

 
What Oil Woes?

FILE - An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022, one of the largest facilities for oil and petroleum products in southern Russia. Oil prices rose Monday Dec. 5, 2022 as the first strong measures to limit Russia's oil profits over the war in Ukraine took effect, bringing with them uncertainty about how much crude could be lost to the global   economy through the new sanctions or Russian retaliation. (AP Photo, File)

An oil tanker is moored at the Sheskharis complex, one of the largest facilities for oil and petroleum products in southern Russia. | AP

A pair of Western policies meant to crack down on Russia's oil industry took effect Monday, and so far, they don't appear to be causing price spikes.

Oil prices were down more than 3 percent Monday in both the West Texas Intermediate and Brent crude benchmarks, the main domestic and international measures.

The European Union is implementing both a ban on importing oil from Russia via ship, while the Group of Seven organization of major economies is instituting a $60 per barrel cap on Russian oil. POLITICO's Charlie Cooper writes about those policies , which are designed to punish Russia for its invasion of Ukraine.

 

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Power Centers

An ornament featuring Senator Joe Manchin (D-W.Va.).

An ornament featuring an image of Senate Energy and Natural Resources Committee Chair Joe Manchin (D-W.Va.) is seen in the committee's hearing room on Capitol Hill on Dec. 1. | Francis Chung/POLITICO

Permitting reform for the holidays

Top Democrats could try to include a version of permitting legislation backed by Sen. Joe Manchin (D-W.Va.) into the must-pass annual defense bill, Kelsey Brugger, Nick Sobczyk and Nico Portuondo write .

The move would revive sharp tensions within the party, stemming from a deal Manchin made with Senate Majority Leader Chuck Schumer (D-N.Y.) to support the Inflation Reduction Act. Democrats, under pressure from environmental justice advocates, decided against passing the permitting policies in September.

Speed bump in EV charger rollout

Federal "Buy America" requirements could hurt efforts to deploy a new national network of electric vehicle charging stations, Andres Picon reports .

State transportation officials and companies in the charging industry are pushing the Biden administration to delay a January deadline for chargers to be made in the United States, citing a need to ramp up domestic production first.

New normal for trade

The head of the European Commission wants the continent to rethink how governments help companies in response to domestic subsidies in the Inflation Reduction Act, Jones Hayden writes .

"The Inflation Reduction Act should make us reflect on how we can improve our state-aid frameworks, and adapt them to a new global environment," European Commission President Ursula von der Leyen said in a speech this weekend in Belgium. "The new assertive industrial policy of our competitors requires a structural answer."

 

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in other news

Gas from trash: Extracting natural gas from garbage dumps is gaining steam amid government incentives and emissions reduction efforts.

Conserving heat: New England's electric grid operator may need to ask customers to dial down their energy use during cold snaps this winter due to tight natural gas supplies.

 

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Voters line up to cast ballots in West Columbia, S.C. There's a push to make South Carolina the first state to vote in presidential primary elections.

Voters line up to cast ballots in West Columbia, S.C. There's a push to make South Carolina the first state to vote in presidential primary elections. | Meg Kinnard/AP Photo

In scheduling its first presidential primary of 2024 in South Carolina, the Democratic National Committee could give environmental justice a new boost .

The owners of Utah's largest coal plant decided against operating it with carbon capture and sequestration technology.

That's it for today, folks! Thanks for reading.

 

A message from Equinor:

The energy transition is the defining opportunity of our time. Our world needs energy to keep moving forward — but it must be affordable, reliable, and accessible. We all have a role to play. At Equinor, we're doing our part by helping accelerate the energy transition. We're growing our renewable energy portfolio and lowering emissions from production. We're already on the way to powering 2,000,000 New York homes with energy from the Empire Wind and Beacon Wind offshore wind projects. We're creating jobs, building tomorrow's infrastructure, and sparking new economic activity. But for us, that's only the beginning. By the time the global population reaches 9 billion in 2050, our goal is to have net-zero emissions. Discover more about Equinor at http://www.equinor.com/USA.

 
 

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