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The CAISO Smart Grid Objectives > Cyber Security - Pg. 156

156 PART | II Smart Supply: Integrating Renewable & Distributed Generation Currently, the CAISO has market mechanisms and products, such as proxy demand resources that allow aggregators access to the wholesale market, sup- porting the increased participation of storage, demand response, and distributed energy resources and enabling these resources to enjoy comparable treatment as generating resources. As yet, however, no model exists that allows these resources to participate fully. Meanwhile, Western Electricity Coordinating Council rules are evolving, albeit slowly, to allow participation in spinning reserve and regulation markets. The CAISO is actively participating in wholesale smart grid standards development efforts led by the National Institute of Standards and Technol- ogy (NIST) through the North American Energy Standards Board (NAESB) and the ISO/RTO Council (IRC). The CAISO is also closely involved with demand response policies being considered at the California Energy Commission and smart grid proceedings at the California Public Uti- lities Commission. 13 The enabling demand response, storage, and distributed energy resources roadmap includes pilots to better understand technology capabilities, expecta- tions for continued participation in national standards development efforts, and developing and piloting approaches for reflecting grid conditions that can be directly sent to smart grid devices. Cyber Security Cyber security becomes a priority concern as additional technologies connect to grid systems and provide more real-time data as well as two-way communi- cations. The need exists to assess risks and vulnerabilities all along the commu- nications chain from data sources to consumers, much of which is outside CAISO control. There is little doubt that situations will emerge that require new security controls and monitoring to ensure that grid monitoring, operations, and control systems are not compromised. At the same time it is clear that much of the potential benefit from smart grid will be due to the significantly increased information available to the CAISO, participating transmission owners, genera- tors, and consumers. For this benefit to be realized, the cyber security rules must not be overly burdensome or so slow to be developed that they impede the progress of the new technologies. A number of national forums are addressing security concerns. One is the National Institute of Standards and Technology that recently released NISTIR 7628, Guidelines for Smart Grid Cyber Security. This is a three-part document covering smart grid from a high-level functional requirements standpoint. 13 Information on California Energy Commission programs can be found at .gov. Information on California Public Utilities Commission proceedings can be found at http://