America's retaliation against Russian hacking.

A code associated with the Russian hacking operation dubbed Grizzly Steppe by the Obama administration has been detected within the system of a Vermont utility, according to U.S. officials.

While the Russians did not actively use the code to disrupt operations, according to officials who spoke on the condition of anonymity to discuss a security matter, the discovery underscores the vulnerabilities of the nation’s electrical grid. And it raises fears in the U.S. government that Russian government hackers are actively trying to penetrate the grid to carry out potential attacks.

Officials in government and the utility industry regularly monitor the grid because it is highly computerized and any disruptions can have disastrous implications for the country’s medical and emergency services.

Burlington Electric said in a statement that the company detected a malware code used in the Grizzly Steppe operation in a laptop that was not connected to the organization’s grid systems. The firm said it took immediate action to isolate the laptop and alert federal authorities.

Friday night, Vermont Gov. Peter Shumlin (D) called on federal officials “to conduct a full and complete investigation of this incident and undertake remedies to ensure that this never happens again.”

“Vermonters and all Americans should be both alarmed and outraged that one of the world’s leading thugs, Vladimir Putin, has been attempting to hack our electric grid, which we rely upon to support our quality-of-life, economy, health, and safety,” Shumlin said in a statement. “This episode should highlight the urgent need for our federal government to vigorously pursue and put an end to this sort of Russian meddling.”

Sen. Patrick J. Leahy (D-Vt.) said he was briefed on the attempts to penetrate the electric grid by Vermont State Police on Friday evening. “This is beyond hackers having electronic joy rides — this is now about trying to access utilities to potentially manipulate the grid and shut it down in the middle of winter,” Leahy said in a statement. “That is a direct threat to Vermont and we do not take it lightly.”

American officials, including one senior administration official, said they are not yet sure what the intentions of the Russians might have been. The incursion may have been designed to disrupt the utility’s operations or as a test to see whether they could penetrate a portion of the grid.

Officials said that it is unclear when the code entered the Vermont utility’s computer, and that an investigation will attempt to determine the timing and nature of the intrusion, as well as whether other utilities were similarly targeted.

“The question remains: Are they in other systems and what was the intent?” a U.S. official said.

This week, officials from the Department of Homeland Security, FBI and the Office of the Director of National Intelligence shared the Grizzly Steppe malware code with executives from 16 sectors nationwide, including the financial, utility and transportation industries, a senior administration official said. Vermont utility officials identified the code within their operations and reported it to federal officials Friday, the official said.

The DHS and FBI also publicly posted information about the malware Thursday as part of a joint analysis report, saying that the Russian military and civilian services’ activity “is part of an ongoing campaign of cyber-enabled operations directed at the U.S. government and its citizens.”

...“Vermonters and all Americans should be both alarmed and outraged that one of the world’s leading thugs, Vladimir Putin, has been attempting to hack our electric grid, which we rely upon to support our quality-of-life, economy, health, and safety,” Shumlin said in a statement. ...

"We regard the recent unfriendly steps taken by the outgoing US administration as provocative and aimed at further weakening the Russia-US relationship. This runs contrary to the fundamental interests of both the Russian and American people. Considering the global security responsibilities of Russia and the United States, this is also damaging to international relations as a whole.

As it proceeds from international practice, Russia has reasons to respond in kind. Although we have the right to retaliate, we will not resort to irresponsible ‘kitchen’ diplomacy but will plan our further steps to restore Russian-US relations based on the policies of the Trump Administration.

The diplomats who are returning to Russia will spend the New Year’s holidays with their families and friends. We will not create any problems for US diplomats. We will not expel anyone. We will not prevent their families and children from using their traditional leisure sites during the New Year’s holidays. Moreover, I invite all children of US diplomats accredited in Russia to the New Year and Christmas children’s parties in the Kremlin.

It is regrettable that the Obama Administration is ending its term in this manner. Nevertheless, I offer my New Year greetings to President Obama and his family.

My season’s greetings also to President-elect Donald Trump and the American people.

I wish all of you happiness and prosperity."