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NERC CIP

Mandatory cybersecurity standards for bulk electric system owners, operators, and users in North America.

Definition

What is NERC CIP?

NERC CIP (North American Electric Reliability Corporation Critical Infrastructure Protection) is a set of mandatory cybersecurity standards established by NERC and enforced by FERC for owners, operators, and users of the North American bulk electric system (BES). The CIP standards span CIP-002 through CIP-014, covering BES Cyber System categorization, security management, personnel training, electronic security perimeters, physical security, systems security management, incident reporting, recovery planning, vulnerability management, configuration management, and physical security of transmission stations.

Why It Matters

Power grid attacks are among the most consequential cyber threats facing national security. Nation-state actors including Volt Typhoon have demonstrated persistent access to U.S. critical infrastructure specifically targeting the ability to cause disruption during conflict. NERC CIP violations carry fines of up to $1M per violation per day. For utilities, independent power producers, and transmission operators, NERC CIP compliance is not optional — but achieving it in operational technology (OT) environments presents unique challenges that require specialized expertise.

How It Works

NERC CIP compliance begins with asset categorization (CIP-002) — identifying BES Cyber Systems and categorizing them as High, Medium, or Low impact based on their connectivity and criticality. Each impact level carries different control requirements. Evidence collection is comprehensive and must be maintained for at least three years. Internal audits and NERC regional audits verify compliance; findings must be self-reported.

Our Approach

Paxanimi's Approach to NERC CIP

Paxanimi's energy practice covers the full NERC CIP suite from CIP-002 through CIP-014. We use passive, non-intrusive assessment methods in OT environments — no active scanning that could destabilize industrial processes. We support both high and medium impact BES Cyber Systems and maintain current knowledge of NERC CIP revision cycles. Our engagements include gap assessments, evidence management programs, and internal audit preparation.

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