Common Compliance Issues: What Are the Most Fined NERC Requirements?

Compliance with the Security and Reliability Standards created by the North American Electric Reliability Corporation (NERC) is required by the Federal Energy Regulatory Commission (FERC) for all responsible entities within the power utility industry. By failing to maintain compliance with these requirements, a company can be cited for multiple violations and face penalties upwards of one million dollars per day, per violation.

While it is wise for all entities to address compliance issues in order to ensure the reliability and optimal efficiency of the electrical grid, it is also reasonable for an energy company to ask, “What are the most fined NERC requirements?” By becoming aware of the common missteps of electric utility companies when they come up short of the increasingly rigorous NERC standards, an organization’s internal compliance program can take necessary precautions against potential losses through financial penalties. More importantly, however, staying on top of these frequently fined noncompliance issues can keep responsible entities reliable and profitable.

 

Keeping Up with the Most Fined NERC Standards

Within the last several years, fines issued by NERC amount to more than $150 million (US). On the one hand, this demonstrates just how challenging it can be for an energy company to maintain compliance with NERC standards. On the other hand, considering how many individual and regional entities are under NERC supervision, this figure suggests that there is hope for power utility companies to make the changes necessary for passing NERC audits.

If you are struggling with issues related to regulatory compliance, you will need a comprehensive approach to addressing what are the most fined NERC requirements. But as a first and most important step toward achieving compliance with Security and Reliability Standards, you should familiarize yourself with the Critical Infrastructure Protection (CIP) standards. CIP Version 5 requirements should start being enforced throughout 2014 and 2015, in order to keep the grid protected against new threats, both internal and external, against cyber security.

The most frequently violated NERC CIP standards include:

  • CIP-001

  • CIP-002

  • CIP-003

  • CIP-004

  • CIP-006

  • CIP-007

These regulations deal with sabotage reporting, critical cyber asset identification, personnel issues, and systems security management, among other common problems within responsible entities’ infrastructure security oversight.

 

Versify’s Portal Compliance: Protection Against the Most Fined NERC Requirements

Versify Solutions provides energy companies with a comprehensive software suite that enhances reliability, efficiency, and ability to comply with NERC regulations. If you are looking for a way to protect your company from significant financial penalties, Versify’s Portal Compliance not only keeps you accountable and informed about what are the most fined NERC requirements; it also helps you gather real-time data, analyze all compliance-related information, and report on incidents with a simple yet powerful user interface.

If you would like to arrange a full capabilities demonstration, contact Versify now, and let us help you keep your company safe from major losses during your next NERC audit.