Should have done this 5 years ago.

Bruce


http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005
-08-11T184858Z_01_N11355191_RTRIDST_0_PICKS-BIZUTILITIES-GRID-SECURITY-DC.XM
L
US utilities ready spare parts in event of attacks Thu Aug 11, 2005 2:48 PM
ET By Leonard Anderson

SAN FRANCISCO (Reuters) - U.S. electric utilities are working to build a
computer database of spare equipment such as transformers and switches to
replace critical parts that could be knocked out of service in an attack on
the nation's power grid, industry officials say.

The goal is to identify in advance available spare gear, domestic and
overseas manufacturers of electrical equipment, and transportation options
to quickly find and deliver needed replacement parts in the event of a
crippling attack somewhere in the United States.

A power industry security official likens the effort to the U.S. Department
of Energy's strategic petroleum reserve, the nation's emergency oil
stockpile stored in underground salt caverns along the coast of the Gulf of
Mexico.

"The electric industry does not keep a pool of spare parts like the
government has with the oil reserve," said Michael Lynch, manager of
corporate security and investigations at DTE Energy Co. (DTE.N: Quote,
Profile, Research), owner of two big utilities in Michigan.

The Edison Electric Institute, a utility trade group, is overseeing the
program to build a computer database of equipment, with more than 50
utilities involved so far, EEI spokesman Jim Owen said.

The North American Electric Reliability Council, whose job is to ensure the
reliability and security of the electric system in the U.S. and Canada, also
is involved with a "critical spares task force."

"There is a lot of sensitivity around this," NERC spokeswoman Joanne
Callahan said.

DTE Energy's Lynch said the utility industry must join with the federal
Department of Homeland Security. "There has to be a joint venture. Our
industry cannot be expected to finance a huge effort like this on its own.
So perhaps the government has parts strategically placed that we can call
on," he said.

HELPING IN DISASTERS

Gas and electric utilities have a long history of mutual aid agreements to
help each other when natural disasters like hurricanes and earthquakes
strike, causing heavy damage to power systems.

Utility repair crews often will travel thousands of miles to erect new power
poles and string new electric lines in storm-ravaged areas to get the lights
back on or repair broken gas lines for a sister utility's customers.

Finding and replacing a big piece of equipment like a damaged power plant
transformer, however, can take months.

A power plant in Iowa operated by a unit of Midwest utility Alliant Energy
Corp. (LNT.N: Quote, Profile, Research) shut last Feb. 24 when a transformer
broke down and the plant did not get back on the grid until early May after
the utility located and shipped a replacement from Texas.

The attacks of Sept. 11, 2001, dramatically altered security planning for
electric utilities, said Lynch.

"Traditional utility security often was mainly a defense against vandalism
and theft, like the theft of copper wire from substations. The new threat
paradigm is the threat of terrorism and we have to be very conscious of
that," he said.

Since 9/11, DTE Energy has developed a "rapid response plan" that depends on
constant two-way communication with local and Michigan state police, the
FBI, U.S. Attorney, and other officials about potential threats and other
problems.

The top officers of DTE Energy wanted a robust security system that matched
the risks, not "rent-a-cops," Lynch said.

An alarm or "unexplained failure" at a substation can trigger a rapid
response by armed law enforcement officials at other DTE Energy facilities,
"another level of protection" for the company's power system and customers,
he said. "We can't do it by ourselves."

C Reuters 2005. All Rights Reserved.





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