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Report: Cyber-Spies Studying U.S. Electricity Grid

April 8, 2009 By Matt Williams

Computer spies from China, Russia and other countries are tunneling into the U.S. electricity grid with increasing frequency in order to study America's infrastructure, The Wall Street Journal reported Wednesday. An unnamed intelligence official told the newspaper that hackers have left behind software tools that could be turned on during a war in order to damage critical infrastructure systems.

The revelation comes amid growing public sentiment for transforming the U.S. electrical grid into a "smart grid." It would rely upon IT to help utility companies manage peak loads and allow consumers to sell back excess power to the grid during off-peak hours.

An estimated $11 billion from the economic stimulus bill President Barack Obama signed in February is dedicated to enacting standards for the smart grid and funding test cases. Millions of sophisticated "smart meters" have already been installed in homes in cities such as Los Angeles; Austin, Texas; and Boulder, Colo.

Industry insiders expect the federal government to release guidance for the stimulus money as soon as next week. Analysts say a nationwide build-out of the smart grid ultimately could cost trillions of dollars.

Watchdogs caution that the smart grid could be a hacker's paradise because its network of sensors, wireless technology and home-based energy meters would allow multiple entry points into the system. CNN.com reported last month that security services firm IOActive determined a malicious hacker "with $500 of equipment and materials and a background in electronics and software engineering" could simultaneously take command of smart-grid metering infrastructure of thousands or millions of homes and businesses.

Power Industry Aware of Security Deficiencies

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Cyber-Criminal Demands $10 Million Ransom After Breaching Virginia Medical Records

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