Session 4C - Ensuring Reliable Supply and Protection of Energy Infrastructure
Policy Options to Promote Investments for Critical Infrastructure Protection
Mr Hans Konow, President and Chief Executive Officer,
Canadian Electricity Association, Canada
The Canadian Electricity Association has been the nexus for the Canadian electricity sector’s
business continuity activities since the launch of our Y2K program in the late 1990s, and we
have continued to play a pivotal role since the millennium roll-over through our Critical
Infrastructure Protection (CIP) program. Over the past half-decade, through Y2K, the
September 11 terrorist attacks and subsequent events, we have continually fine-tuned our
approach to ensuring protection to the system and continuity of service to customers.
The most critical lesson learned is the imperative of communications: with governments;
within the electricity sector; with the inter-connected industry in the United States; and with
other infrastructure service providers. Every effort was made from the outset of our activities
to ensure coordination and communication with all of these vital partners.
During the lead-up to Y2K, our program focused first on the electricity sector within Canada,
second with our US counterparts, and third with other Canadian infrastructure service
providers. We made every effort to ensure that government officials and regulators were
briefed regularly on both our activities and the state of readiness of the industry. We viewed
the education of government and regulatory authorities as essential, so that they would be
able to make sound policy decisions, an approach which we have continued and built upon in
our CIP activities.
Within the electricity sector, we sought to assess the state of readiness of the industry, and
to understand the potential impacts of failures within the system. This led us to identify and
assess interdependencies the electricity sector in the US and with other infrastructure
sectors in Canada. For instance, the dependability of our interconnections with the US grid
and the effective management of potential cascading failures was addressed. Similarly, the
reliability of the telecommunications networks was crucial to the proper functioning of our
control and information systems.
Coordination with the US electricity sector, was achieved through the North American
Electric Reliability Council (NERC). Coordination with other infrastructure sectors in Canada
was more difficult as there was no pre-existing body. CEA worked with the banking and
telecommunications sectors to establish an informal forum for coordination of sectoral
activities and interface with the government.
While many now regard Y2K as a non-event, CEA viewed it as a success, as it provided the
blueprint for our CIP program. Individual companies are responsible for ensuring service
continuity to their customers. Coordination at a national level occurs through CEA’s CIP
Working Group. Cross-border electricity issues and the management of interconnections
takes place through NERC. And CEA continues to work closely with other Canadian
infrastructure sectors and the federal government through an informal alliance of
infrastructure service providers.
CEA has launched a number of innovative programs for infrastructure protection, most
notably our Early Warning System. The value of our early warning procedures was in
evidence on September 11. A CEA delegation was meeting with Canadian Energy Ministers
that fateful morning. When initial reports began coming in, the scheduled meeting was
suspended in order to focus on events in New York and Washington, and their potential
impact on infrastructure. In a matter of minutes, CEA was able to report as to the state of the
electricity grid, the alert level of the sector, and the types of security measure which were
being implemented as a result of the alert.
A successful infrastructure program requires: engagement of all market participants;
coordination with interdependent sectors; clear communications with all stakeholders; and
informed government decision-makers.