U.S. utilities are structuring intelligence into their networks with the aim to make power distribution more efficient; however these efforts are getting caught in the myriad of regulations that leave their security efforts incomplete, inadequate and uncoordinated. According to a new report released by researchers at the Massachusetts Institute of Technology (MIT), a single federal agency should be in charge of the nation’s critical infrastructure security, instead of being spread across a group of organizations, as it currently is. The findings also stated that this greater reliance on data communications in the grid increases the importance of standardization for interoperability and of cybersecurity and raises serious issues of privacy. Additionally, the report also discussed the potential risk factors to the grid from the impact of federal regulations, rising prices for fossil fuels and competition from sources of renewable energy. It largely stated that with the right policy measures, the grid would be able to handle the influx of electric vehicles as well as renewable generation sources including wind and solar.

Another major finding and point of concern in the report was the lack of research and development spending by utilities. While noting that regulators provide utilities very little incentive to spend more on R&D, it recommended that utilities put more money into research and development. This would allow them to make effective use of new technologies to monitor and control the grid, and on customer response to pricing policies or incentives.

The report’s Advisory committee includes UTC members including American Electric Power, Southern California Edison, Cisco, and UTC International Division Co-Chair Miguel Angel Sánchez Fornié of Iberdola S.A.