Dive Brief:
- Large, privately-owned regulated utilities tend to be more prepared to combat cyber threats than smaller energy companies, according to a new report from Moody’s Investor Services. The ratings agency called cybersecurity preparedness an “increasingly important component of credit analysis” for electric utilities.
- The report also concludes security posture is stronger among vertically integrated utilities, which also own generation, than it is for those owning only transmission and distribution, due to the greater risk of severe operational disruptions for utilities that own power plants.
- Smaller utilities, and not-for-profits in particular, lean more heavily on cyber insurance to mitigate risk, according to Moody’s. But according to the American Public Power Association (APPA), smaller utilities face less risk and utilize information sharing tools to boost security.
Dive Insight:
Moody’s is digging into the growing threat faced by utilities, and says its Wednesday analysis is the “first of a series of cyber themed research reports” it will release as security plays a growing role in assessing company financials.
“Our survey of global…
