Another Reason CRE Properties Need Utility Backup — Terrorism

Having backups for electrical power would be a wise move for CRE properties in a world where extreme weather, work stoppages, and other factors can cut off service. But one of the forces that can bring down utility is direct action, whether that is accidental or intentional.

There have been terrorist attempts to bring down electrical systems for decades. In 2001, someone tried to breach the computer system at the California Independent System Operator (Cal-ISO), CNN reported. The people behind the attack started in late April and weren’t detected until the second week of May. No serious damage was done — a good thing because the state was undergoing widespread rolling blackouts without any help.

It’s an old story, but far from isolated. In 2005, criminals targeted the computer networks of multiple power companies and the federal government warned them to beef up their security, the Washington Post reported. In 2009, the Wall Street Journal wrote about cyberspies penetrating the national electrical grid. Cyberattackers again in 2015 got into the networks running the grid, according to the Associated Press. Suspects with neo-Nazi ties were accused of planning to take Baltimore’s power grid down in 2023, according to Politico. In early 2024, FBI Director Chris Wray told House lawmakers that Chinese government-backed attackers have targeted water treatment plants, the electrical grid, and transportation systems, the Associated Press reported. And in July 2024, a pair of former Marines, who were active in a neo-Nazi community, allegedly stole military equipment from Camp Lejeune to attack a power substation in the Pacific Northwest, The Hill wrote.

“What they think will happen is that, if there’s a crisis, it will provide cover for violence, but it will also force normal people to engage in violence. And that’s not what will happen,” Molly Conger, a researcher based in Charlottesville, VA, told the news outlet.

These are unlikely the only examples of attempts on electrical systems and other utilities in the U.S. Being ready to operate through a terrorism attack without having a building’s operational system crash is part of CRE business in today’s world.

Owners and operators must consider why solar panels, backup battery systems, water and power monitoring, and other tools need to be on the premises. There have to be plans in case something goes wrong and tenants should be aware of how to respond if there is a problem. It’s just another aspect of operations that needs preparation.