Smart Card/PKI Case Study

Internet Power Plays

Multi-million dollar deals. Brokers fighting for power. High stakes requiring the highest levels of security. A world where power truly is money.

Welcome to the California Independent System Operator (California-ISO), the New York Stock Exchange of power management and sales. This is a place that sees more than US $7 billion of electrical energy traded and routed annually. A place where buyers and sellers of power compete fiercely against each other to gain transmission rights across the state of California. And a place where power management is a matter of life and death, protecting everything from hospital equipment to home security systems.

California-ISO is a not-for-profit public benefit corporation charged with managing the state's power transmission grid and overseeing power sales. High-level security across the organization's operations isn't only critical, it's non-negotiable. Fraudulent transactions could wreak financial havoc, leaks about expected bids would offer unfair advantages to brokers with insider information, and any security breach in the transmission of power could have life-threatening consequences.

With a scenario that would compare to "Mission Impossible," the independent power entity found itself facing these daunting security challenges when it was created by the state legislature after Californians voted in a new, free market for power. At the same time, California-ISO had to promote increased industry competition by opening power auctions to greater numbers of buyers and sellers - without compromising security or incurring high operational costs. An impossible mission? Not with SPYRUS' bag of high-security e-business tricks.

Powering up security

SPYRUS, a leading Internet ID company for secure e-business, stepped in and solved the power organization's mission-critical security issues in just four months. The security leader rapidly deployed its Public Key Infrastructure (PKI) system solution, a comprehensive, high-assurance e-business infrastructure. With the SPYRUS PKI, California-ISO was able to leverage the Internet to streamline business processes while eliminating security risks. In fact, SPYRUS saved the power entity more than $1 million and 10 years in deployment time.

"Our mission is to be the one-stop shop for e-business security," explained Sue Pontius, SPYRUS President and CEO. "By enabling companies to turn to a single vendor, we can quickly implement comprehensive, highly secure systems based on a variety of tightly integrated components that act as the foundation for secure e-commerce applications."

Tapping the power of the Internet

Today's e-business environment promises more efficient communications, lower networking costs, and increased system simplicity - while also holding the threat of sophisticated, security-breaching hackers.

With SPYRUS, California-ISO was able to implement a high-capacity, streamlined Internet system capable of interconnecting thousands of sites and utility generators from Canada through Mexico. The SPYRUS PKI system solved all of the power agency's top-level security concerns while enabling it to reap the extensive benefits of e-business:

  • Online power auctions offer cost-savings while supporting unlimited competition. Power brokers now log in to online auctions using software certificates. Their browser software simply utilizes certificates issued by the SPYRUS PKI to assure the trader's access rights and to authorize transactions.
  • Online meter access eases third-party communications. Third parties can use SPYRUS-made Rosetta smart cards to read meters online, staying abreast of kilowatts supplied to customers. They just insert their Rosetta card into their Rosetta smart card reader, providing medium-assurance authorization through a unique digital certificate issued by the SPYRUS PKI.
  • Online dispatching of power generation streamlines operations. High-assurance LYNKS Privacy Cards support tamper-proof and efficient power generation across California, with remote generators located statewide.
  • Online invoicing provides a speedy, secure way to submit invoices.
  • Online problem management supports quick, efficient problem resolution.

A new highlight is using the highly-secure Internet access to power auctions for an unlimited number of participants in the new free market, maximizing the competitive bid process to better serve consumers.

Another important capability is the system's ability to actually pinpoint demand in any given place and time, with the smart cards enabling third party providers to meter exact usage and demand in a real-time environment - thus managing power to suit particular weather conditions, such as the massive summer heat waves in recent weeks.

"Mission Impossible" becomes "Mission Profitable"

The single-vendor SPYRUS solution saved California-ISO more than US $1 million through its rapid implementation and by using just the right level of security for each required task. California-ISO will also gain extensive, additional cost-savings due to its shift from expensive dedicated leased lines to the Internet. Instead of facing an impossible mission, the power agency now has a highly secure e-business infrastructure ready to take on the challenges of the future.


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