On June 18, 2020, the Federal Energy Regulatory Commission (FERC) released a white paper on transmission incentives for utilities making cybersecurity enhancements to the electric grid.[1] The white paper asks stakeholders to address a variety of questions, including whether a project- specific return on equity (ROE) for voluntarily employing cybersecurity enhancements is enough to incentivize investments that exceed the requirements of the Critical Infrastructure Protection (CIP) Reliability Standards. For non-ROE incentives, the white paper proposes that cybersecurity investments be eligible for Construction Work in Progress, recovery of abandoned plant costs, and accelerated depreciation which are the same incentives offered under FERC’s electric transmission incentives policy. Construction Work in Progress incentives allow a party to record the current costs related to long-term projects. Recovery of abandoned plant costs is the ability of an entity to recover costs if the project is canceled for reasons beyond the entity's control. Accelerated depreciation allows for greater tax deductions in the early years of an asset. The white paper requests comments on the paper within 60 days and reply comments within 75 days.

[1] https://www.ferc.gov/sites/default/files/2020-06/notice-cybersecurity.pdf