US electric grid operators must now vet their equipment suppliers for national security risks
What happened
The US government just ordered the organization that sets electric grid reliability rules to create new standards for supply chain security. This means companies running the grid will have to check their equipment and service providers for national security risks.
Why it matters
For years, electric grid operators could manage supply chain risks as they saw fit. Now, they will have specific, mandatory rules about vetting the companies that provide their equipment and services. This will likely make it harder for certain foreign-made components to enter the US power grid.
The signal
Watch for NERC's proposed new standards and how specifically they define "national security risks" and "certain entities" — that language will determine the real impact.