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NERC CIP Compliance Traceability for Energy & Utility Organizations Power utilities operate in an environment where system failure can have a wide impact. In August 2003, a massive power failure hit multiple places, including the northeastern U.S., due to a software alarm failure, and it plunged 50 million people into darkness. To avoid such issues, the NERC (North American Electric Reliability Corporation), a regulatory body that ensures the reliability and security of power grid systems in N