CYBERATTACKS ON THE RISE

SDG&E spends millions each year on cybersecurity, while the state’s grid operator fends off millions of threats every day

It’s the nightmare scenario that utilities and grid operators fear the most: A cyberattack that shuts down the power system for days, even weeks. With organizations becoming increasingly digital, the exposure to hackers breaching critical infrastructure is a constant concern.

“You’re always on guard,” said Robert Melis, director of information security and network operations at the California Independent System Operator, the agency that manages grid operations for about 80 percent of the Golden State, as well as 26,000 circuit miles of transmission lines.

“We are continuously cautious,” Melis said. “We’re also continuously looking at our systems, our security posture and our technology to try to do our best to keep up and stay ahead of the changes in the threat landscape.”

No major cyberattacks have taken down U.S. grid assets for extended periods of time, but attempted hacks are on the rise.

The International Energy Administration recently reported the average number of weekly cyberattacks more than doubled in the global utilities sector between 2020 and 2022.

And the danger is not just focused on grid assets. The IEA analysis said the health care and finance/banking sectors experienced even larger numbers of attempted hacks during the same period of time.

“I think there’s a 100 percent chance that organizations in the critical infrastructure space at some point will experience some short of breach,” said Stephanie Benoit Kurtz, lead cybersecurity faculty at the College of Business and Information Technology at the University of Phoenix. “No longer are the days when organizations can say, ‘We’ll never be breached.’ It’s not if, it’s when.”

Locally, San Diego Gas & Electric officials are reluctant to say how much the utility budgets for cybersecurity, but said it runs into the millions of dollars each year.

“We spend a tremendous amount of time internally, across all aspects of the company, talking about cybersecurity because we believe it’s as important as, say a wildfire, in this day and age,” said Ben Gordon, SDG&E’S chief information and digital officer.

“Without a doubt, these utility organizations are attacked millions of times a day. They have to get it right every time. Bad actors only need to get it right once to get in.” Stephanie Benoit Kurtz lead cybersecurity faculty at the University of Phoenix

home’s total basis would be $606,000 (which is $456,000 plus $150,000). If you sold the house for $912,000, your capital gain could be $306,000, which would be well below the $500,000 exemption you could take if you sell the house within two years of the death. If you sell after the two-year mark, the gain above your single $250,000 exemption would be taxable.

The rate you would pay depends on your taxable income and what state you live in.

For example, a single person with taxable income of between $47,026 and $518,900 in 2023 would pay a 15 percent federal capital gains rate, plus whatever rate their state imposes. (California doesn’t have a separate capital gains tax system, so any taxable gain would be subject to the state’s regular income tax.)

These numbers are just

to give you an idea of how capital gains taxes work. Your mileage may vary. If you renovated the kitchen or did any other significant improvements on the home, those costs could be added to your tax basis to reduce any potentially taxable gain. Also, selling costs will reduce what you actually pocket from the sale and your potentially taxable gain. For more information, see IRS Publication 523, Selling Your Home.

Taxes shouldn’t be your only consideration, of course. Relocating can be disruptive and expensive. Getting the house sold before the two-year mark makes sense if you were planning to move anyway, but don’t let fear of taxes scare you out of a home that otherwise suits you.

Using 529 accounts on groceries

Dear Liz: You said 529 accounts could not be used for groceries. I searched on the Internet and found that

students can use 529 money to purchase meals off campus and buy groceries. Which is correct?

Answer: The original letter writer’s child lived on campus, so the amount the family can withdraw tax free from the 529 account is limited to what they spent on a campus meal plan. Grocery runs and restaurant meals aren’t covered.

Once the child moves off campus, the family can use the college’s official “cost of attendance” figures to determine the maximum they can withdraw tax free to pay for food. The child should keep all receipts as proof to back up the withdrawal.

Please be careful about assuming that the results of any Internet search are reliable, especially if artificial intelligence is involved in creating — or inventing — the answer. Tax law can be particularly tricky to interpret, which is why I rely on tax experts such as Mark Luscombe, principal analyst for Wolters Kluwer Tax

CALIFORNIA INDEPENDENT SYSTEM OPERATOR A director at the California Independent System Operator, which oversees the electric grid for about 80 percent of the state, said cybersecurity is a high priority.