 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
grid security; cybersecurity; reviews; commission
Purpose
Requires the Arizona Corporation Commission (ACC) to conduct an annual grid security review and make outlined assessments and evaluations when conducting the review. Requires the ACC to encourage investor-owned utilities to rectify deficiencies that were identified in the grid security review.
Background
The ACC regulates investor-owned or privately-owned utilities that provide gas, water, electricity or telephone service (ACC). The ACC has the power to inspect and investigate the property, books, papers, business, methods and affairs of any corporation whose stock is offered for sale to the public and any public service corporation doing business within Arizona (Ariz. Const. art. 15 § 4). The ACC has the power and authority to enforce its rules, regulations and orders by the imposition of such fines as the ACC may deem just (Ariz. Const. art. 15 § 19).
The Arizona Constitution allows the Legislature to enlarge the powers and extend the duties of the ACC and to prescribe rules and regulations to govern proceedings by and before the ACC (Ariz. Const. art. 15 § 6).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the ACC to conduct an annual grid security review.
2. Requires the ACC, in conducting the review, to:
a) research and evaluate the generation and grid management technologies that will accommodate a two-way flow of electricity and that protect against a physical attack and cyberattack;
b) evaluate the dangers associated with an electromagnetic pulse and the steps necessary to secure a continuous supply of electricity to the residents of Arizona;
c) evaluate new information technology systems and how protections are implemented;
d) encourage investor-owner utilities to rectify deficiencies that were identified in the grid security review and develop security plans that evaluate and consider the time and costs that are associated with implementing changes; and
e) review, every two years, the cybersecurity and grid protection protocols.
3. Exempts electric cooperatives and public power entities from the outlined requirement for the ACC to require investor-owned utilities to rectify identified deficiencies.
4. Contains a statement of legislative findings and intent.
5. Makes technical changes.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Requires the ACC to conduct an annual grid security review, rather than an annual grid security review of a plant.
2. Removes the requirement that the ACC assess emerging technologies.
3. Requires the ACC when conducting the grid security review to evaluate the dangers associated with an electromagnetic pulse and the steps necessary to secure a continuous supply of electricity to the residents of Arizona.
4. Requires the ACC when conducting the grid security review to encourage, rather than require, investor-owned utilities to rectify deficiencies that were identified in the grid security review and develop security plans that evaluate and consider the time and costs that are associated with implementing changes.
5. Removes the requirement that the outlined security plans include potential funding sources from private capital investment for energy development.
6. Modifies the statement of legislative findings and intent.
7. Makes technical changes.
Senate Action
NR 2/11/25 DPA 5-2-1
Prepared by Senate Research
February 13, 2025
SB/slp