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net NERC Statement on Cyber Security Hearing

PRINCETON, N.J., May 21, 2008 Rick Sergel, President & CEO of the North American Electric Reliability Corporation, made a statement today in reference to todays Hearing of the House Subcommittee on Emerging Threats, Cybersecurity, and Science and Technology. At NERC, our mission is to ensure the reliability of the bulk power system in North America. We fully recognize and appreciate the importance of the reliability and security of our continents bulk power infrastructure to public safety, economic health, and the lifestyle we enjoy. We share the subcommittees commitment to ensuring that consumers can continue to rely on electric infrastructure as being safe, secure, and reliable. Cyber security is a critical component of grid reliability and this issue has been a top priority for our organization. We believe the actions we took to address the Aurora cyber vulnerability, however incomplete, improved reliability and were conducted with the best interests of security and infrastructure protection in mind. We deeply regret the confusion that has occurred as a result of our subsequent descriptions of those actions. The burden of clarity remains with NERC and our future communications will be clear, complete, and unambiguous. We look forward to working cooperatively with the subcommittee, the Federal Energy Regulatory Commission, governmental authorities in Canada, and the electric industry to ensure that the bulk power system is adequately protected and that present and future vulnerabilities are immediately addressed. We are committed to ensuring that the bulk power system in North America remains as reliable as possible and will support all efforts to achieve this goal.

The North American Electric Reliability Corporations (NERC) mission is to ensure the reliability of the bulk power system in North America. To achieve that, NERC develops and enforces reliability standards; assesses adequacy annually via a 10-year forecast and winter and summer forecasts; monitors the bulk power system; audits owners, operators, and users for preparedness; and educates, trains, and certifies industry personnel. NERC is a self-regulatory organization, subject to oversight by the U.S. Federal Energy Regulatory Commission and governmental authorities in Canada. Learn more at www.nerc.com.

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