Protecting Our Critical Infrastructure

Published Feburary 2008

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Introduction

Electricity in the United States is supplied by a vast, complex power system. Citizens and the economy rely on this system to provide power around the clock. If part of the electricity system fails—due to aging infrastructure, natural disaster or terrorist attack, for example—other important systems that depend on a constant flow of electricity will be affected. Transportation, water and communications could be disrupted and the economy also may suffer, as illustrated by the Northeast blackout in August 2003. Costs associated with the blackout ranged from $4 billion to more than $8 billion in lost wages, emergency service costs, utility costs, and lost or spoiled commodities.

Critical infrastructure includes the assets, goods and services that are essential to the U.S. economy and national security. Water systems, pipelines, communications systems, transportation networks, emergency operations centers, and almost all other critical infrastructure depend on a reliable supply of electricity.

The devastation following the major emergencies of the past decade spurred a national call to better protect the nation’s citizens, critical infrastructure and essential services. Providing this protection is the responsibility of federal and state governments, which must work with owners of the infrastructure to reduce possible damages.

This report offers policy options in three areas—information and security disclosure, security investments, and distributed energy resources—for consideration as legislators and utilities work to protect the nation’s critical infrastructure.