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North American Electric Reliability Corporation Critical Infrastructure Protection.
It is a set of mandatory cybersecurity standards designed to protect the Bulk Electric System (BES) — the large-scale electric grid in North America (United States, Canada, and parts of Mexico) — from cyber threats.
Modules include:
- CIP-002: BES Cyber System Categorization
- CIP-003: Security Management Controls
- CIP-004: Personnel & Training
- CIP-005: Electronic Security Perimeter(s)
- CIP-006: Physical Security
- CIP-007: Systems Security Management
- CIP-008: Incident Reporting and Response Planning
- CIP-009: Recovery Plans
- CIP-010: Configuration Change Management and Vulnerability Assessments
- CIP-011: Information Protection
- CIP-013: Supply Chain Risk Management
- CIP-014: Physical Security (against physical attacks)
About this standard
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Who creates and enforces it? NERC (a not-for-profit regulatory authority) develops the standards. In the U.S., the Federal Energy Regulatory Commission (FERC) approves them and enforces compliance through fines.
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Who must comply? Entities that own or operate parts of the Bulk Electric System, including:
- Utilities (investor-owned, municipal, co-ops)
- Independent power producers
- Transmission owners/operators
- Some large generators (typically >75 MW aggregated in the U.S.)
These entities are classified by risk level:
- High Impact: Control centers that can affect >1,500 MW, nuclear plants, major transmission substations, etc.
- Medium Impact: Most generation and transmission assets above certain thresholds.
- Low Impact: Smaller distribution-only assets (still have some requirements, but lighter).
FAQ
What is NERC CIP in simple terms?
NERC CIP is a set of mandatory cybersecurity standards that protect the North American bulk electric grid from cyber attacks. It applies to utilities, generators, and transmission owners operating high-voltage systems.
Who has to comply with NERC CIP standards?
Any entity registered with NERC as a Balancing Authority, Reliability Coordinator, Transmission Owner/Operator, Generator Owner/Operator, or Distribution Provider that owns or operates BES (Bulk Electric System) assets in the U.S., Canada, or parts of Mexico.
What is the difference between High, Medium, and Low Impact BES Cyber Systems?
- High Impact: Control centers affecting ≥1,500 MW, nuclear plants, and major transmission interconnections.
- Medium Impact: Most generation ≥1,500 MW aggregate, transmission 200–500 kV, certain control centers.
- Low Impact: Everything else (e.g., most distribution substations) — lighter requirements under CIP-003-8 Section 4.
How often do you have to review BES Cyber System categorization (CIP-002)?
At least once every 15 calendar months (annual review is common practice).
What are the fines for NERC CIP violations?
Up to $1 million per violation per day in the U.S. (FERC maximum). Real-world penalties range from $50,000 to over $10 million, depending on severity and self-reporting.
Does NERC CIP apply to nuclear power plants?
Partially. Generation and certain transmission assets at nuclear plants fall under NERC CIP. However, nuclear safety-related systems are regulated by the NRC (10 CFR 73.54) instead—not NERC CIP.
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