State lawmakers in North Carolina are introducing multiple bills aimed at shoring up protection for electric utility infrastructure and to impose greater penalties for damaging such equipment following substation attacks in December 2022. Source: matejphoto/E+ via Getty Images |
Lawmakers in the Carolinas intend to shore up the defenses of critical electric infrastructure, and impose steeper penalties, after multiple rounds of gunfire damaged two Duke Energy Corp. substations and plunged more than 40,000 customers in Moore County, N.C., into darkness for days in December 2022.
State Rep. Ben Moss, a Republican who represents Moore and Richmond counties, filed the Energy Security Act of 2023 on Jan. 26. The proposed legislation would require public utilities to provide security systems for substations and operate them 24 hours a day. Moss said he hoped the brief bill, which he described as "only a starting point," would begin a statewide reevaluation of grid security in light of the recent attacks.
"My main objective is public safety, and my constituents weren't very safe or feeling very safe," Moss said. "I made a promise that I would try to do something to prevent this in the future. We have to be proactive instead of reactive."
The week before Moss filed his bill, another North Carolina substation was attacked. More gunfire damaged an EnergyUnited Electric Membership Corp. substation in Randolph County, N.C. The FBI, U.S. Energy Department and authorities in the state are investigating the incidents.
"At this time it is too early in the investigation to determine whether this case is connected to the ongoing investigation in Moore County," the FBI said in a statement.
A Carteret-Craven Elecric Cooperative substation on the eastern side of the state also was vandalized in November 2022, leaving 12,000 people in the dark for hours.
North Carolina is not the only state to experience attacks on utility infrastructure recently: Substations in the Pacific Northwest came under multiple attacks in December 2022.
"Since the summer of 2022 there have been incidents at a number of power plants around the country which have caused damage and sometimes disrupted services to customers," the FBI said. "At this time, we have not determined that a single individual or group is responsible or that incidents in different cities are linked."
State lawmakers in the Carolinas appear unwilling to wait for investigation results to be made public before taking action.
Moss said he believed his bill, co-sponsored by fellow Republican Reps. James Clampitt and Donna White, had enough support from General Assembly colleagues to advance. The only concerns Moss said he had heard — with which he said he agreed — were whether ratepayers would bear the cost of such security upgrades. Moss said he intends to avoid placing an additional burden on customers already struggling with electricity costs.
"This is not a partisan issue," Moss said.
In the direct aftermath of the Duke substation attacks, state Sen. Tom McInnis, a Republican who also represents Moore County, said he expected to file legislation that would increase punishment for intentional damage to utility infrastructure. That bill had not yet been filed as of Jan. 27.
"Sometimes our laws and our penalties are not parallel or equal," McInnis said at the time. "Sometimes they have not been brought forward and brought up to modern standards of the things that are happening in our world today."
Moss said he hoped the bills would bring to the table state leaders, utility executives and others to begin a broader conversation about grid security across North Carolina. Duke intends to join the discussion.
"Protecting our infrastructure is a top priority so we can deliver the essential service our customers and communities rely on," Duke spokesperson Jeff Brooks said. "We look forward to participating in the conversation around how to deter attacks on the electric grid as we work to continually enhance protections for our infrastructure."
Duke, headquartered in Charlotte, N.C., serves 4.5 million electric customers in North and South Carolina through subsidiaries Duke Energy Carolinas LLC and Duke Energy Progress LLC.
North Carolina Gov. Roy Cooper, a Democrat, called for better grid protection after the Duke substation attack, saying it would lead to a reassessment of utility infrastructure protection and hardening. Cooper also urged a "national conversation" about substation security.
"Any attack on infrastructure is a serious crime and needs full investigation along with a complete assessment of how we prevent and mitigate these attacks in the future," Cooper press secretary Sam Chan said in an email. "Similar attacks nationwide show the importance of smart investments to protect energy facilities and improve their resilience in the event of damage."
Chan said Cooper looked forward to working with legislators on solutions.
South Carolina
In South Carolina, a bill similar to Moss' was introduced in the state House on Jan. 10 by state Rep. Michael Rivers, a Democrat. The proposal would require that electrical utilities that own or are responsible for operating electrical substations have security cameras, and would fine anyone found guilty of maliciously damaging utility infrastructure $30,000, along with a sentence of up to 10 years. House Bill 3577 has been referred to committee.
Another bill filed Jan. 10, Senate Bill 330, would add tiered penalties for damage to utility systems. The bill was sponsored by Republican state Sens. Luke Rankin, Thomas Alexander and Danny Verdin and has been referred to committee. Under the proposed bill, a person who destroys or damages utility infrastructure, obstructs utility services or transmission, or who aids and abets a person to do so would be guilty of a felony upon conviction, facing fines and a prison term.
A similar bill, Senate Bill 331, specifically refers to malicious damage to gasoline, natural gas, propane or electric utility infrastructure by a "firearm or destructive device." Senate Bill 331 has also been referred to committee.
S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.