Somewhere in the American power grid, there are 500 large transformers manufactured in China. Each one weighs up to 400 tons. Each one took two years to build and ship. And each one, according to intelligence officials, could contain a hidden kill switch—a digital backdoor that would allow Beijing to plunge millions of Americans into darkness with the push of a button. This is not a hypothetical scenario. In 2020, federal agents seized a Chinese transformer bound for Colorado after discovering hardware that could permit remote access. The transformer sent to a National lab for comprehensive testing. The other 500 remain in service.

David Tice thinks about those transformers every day. A fourth-generation Texan who built his fortune predicting the 2008 financial crisis, Tice should be enjoying retirement, watching his four grandchildren grow up in the comfort secured by decades of successful investing. Instead, he's become what he calls "a Paul Revere for the digital age," trading spreadsheets for screenplays and portfolio management for documentary production. His message isn't about British troops crossing the Atlantic—it's about an enemy that's already here, embedded in the very infrastructure that keeps our civilization running.

"Grid Down Power Up," Tice's documentary featuring Dennis Quaid, represents his attempt to wake a sleeping nation. What started as an abandoned film project he discovered "on the side of the road" has become a crusade that's taken him from the Texas statehouse to the halls of Congress, briefing anyone who will listen about a threat that Cabinet officials publicly acknowledge but seem powerless to stop. The most chilling part isn't the vulnerability itself—it's that we know exactly how to fix it, and we're choosing not to.

What specific moment of regulatory inaction pushed you from concerned citizen to investing your own capital in "Grid Down Power Up"? Was there a particular briefing, study, or event that made you realize traditional advocacy wasn't enough?

"There wasn't one lightning bolt moment," Tice admits. "The film actually fell into my lap. I found it abandoned on the side of the road—metaphorically speaking—about 75% complete. I'm a low-hanging fruit entrepreneur, so I saw an opportunity."

But his deeper motivation stems from years of geopolitical study and personal stakes. "I've been tracking Russia and China's adversarial intentions for decades. I've had the highest-ranking GRU defector ever to reach the West in my living room, testifying to Congress about Russia's plans against America," he explains. The GRU (Glavnoye Razvedyvatelnoye Upravleniye, or Main Intelligence Directorate) is Russia's military intelligence service, established in 1918 and operating as a sister organization to the better-known KGB. While the KGB focused on political intelligence and internal security, the GRU specialized in military intelligence and operated with even greater secrecy—its existence wasn't officially acknowledged by the Soviet government until 1992.

"What really crystallized it for me was becoming a grandfather," Tice continues. "During production, I realized my grandkids were four, three, two, and one years old. Instead of thinking 'blast off,' all I could think was 'Houston, we have a problem.' The technology exists today to protect our grid, but it's not being implemented because of bureaucratic ineptitude. That's when I knew I had to act."

The investment required more than anticipated. "I thought the film was nearly done, but getting it to broadcast quality—the level of polish needed for primetime release—took significantly more work and capital than expected."

Which space asset failure would cause the most catastrophic cascade effect on our terrestrial power grid? Walk us through what happens in the first 72 hours after that failure occurs.

"Let me clarify—we're talking about four main threat vectors: physical attack, cyber attack, electromagnetic pulse, and geomagnetic disturbance," Tice explains. "An EMP from a nuclear detonation in the atmosphere is the most devastating. It could black out the entire continental United States in seconds."

An electromagnetic pulse works by releasing a burst of electromagnetic energy that induces damaging voltage surges in electrical equipment. When detonated at high altitude (typically 30-400 kilometers above Earth), a nuclear weapon creates three distinct EMP waves: 

• E1 (a fast, intense pulse that destroys electronics)
• E2 (similar to lightning, damaging unprotected infrastructure)
• E3 (a slow pulse that can destroy power transformers). 

The 1962 Starfish Prime test, where the U.S. detonated a 1.4-megaton nuclear weapon 400 kilometers above the Pacific, knocked out streetlights and damaged telephone systems in Hawaii, 1,400 kilometers away—demonstrating the massive reach of high-altitude EMPs.

While not specifically a space asset failure, the EMP scenario illustrates the grid's vulnerability to atmospheric and space-based threats. A more likely space-related scenario involves GPS disruption affecting grid synchronization (power grids rely on GPS timing signals to synchronize AC frequency across regions), or a coordinated cyber attack on satellite communications that utilities depend on for SCADA (Supervisory Control and Data Acquisition) systems—the industrial control systems that monitor and control infrastructure processes.

"Here's what happens: You wake up, and nothing works. No sirens, no broadcasts—just silence," Tice describes. "The government might not even announce what happened to prevent mass panic. Cell phones are dead. Internet's gone. At first, people are confused. Then memories of apocalyptic movies kick in."

"Within six hours, there's a rush on grocery stores. But can they even open? Credit card readers don't work. Do they have protocols for cash-only operations? We're in completely uncharted territory," he continues. "The real panic sets in by day three. That's when utility workers face an impossible choice: report to work or protect their families? When those workers stop showing up, society begins to unravel. It becomes what I call a zombie apocalypse without zombies."

The Federal Energy Regulatory Commission (FERC), established by Congress in 1977 to regulate interstate electricity transmission, concluded in a classified 2013 study (later partially declassified) that destroying as few as nine critical substations could cause a coast-to-coast blackout lasting 18 months or longer. "If you lose those key nodes, the cascading failures are unstoppable," Tice warns.

Has making "Grid Down Power Up" actually moved the needle on policy, or are we still dangerously complacent? What's the most frustrating response you've received from someone in power?

There have been victories and frustrations. "Just last week, Governor Greg Abbott signed Senate Bill 075, creating a commission to better protect Texas's power grid," Tice reports. "Senator Bob Hall, one of our film's protagonists, is 80 years old and has been fighting for grid protection legislation through five legislative sessions. We finally broke through."

Senate Bill 075 (Hall/Wilson) creates the Grid Security Commission to evaluate and provide recommendations to address all hazards to the ERCOT grid. The commission is tasked with developing security standards for the grid, coordinating with federal agencies on threat assessments, and ensuring utilities implement necessary protective measures—particularly against electromagnetic pulses and geomagnetic disturbances. The bill represents one of the most comprehensive state-level grid security initiatives in the nation.

Texas benefits from having its own grid through ERCOT (Electric Reliability Council of Texas), which manages about 90% of the state's electric load. Unlike the Eastern and Western Interconnections that span multiple states and fall under federal jurisdiction, ERCOT remains largely within Texas borders, giving the state more autonomy over its power infrastructure. "That independence gives us more control over implementing protections," Tice notes. "We're creating a model other states can replicate—a cookie-cutter approach. Tennessee could be next, especially since Dennis Quaid lives there."

Federal progress has been more frustrating. "President Trump signed Executive Order 13920 in May 2019 protecting the grid, codified in the 2020 National Defense Authorization Act. But there's been nothing but bureaucratic stalling at DOE and DHS since then," Tice says, his frustration evident.

Executive Order 13920, titled "Securing the United States Bulk-Power System," declared a national emergency regarding threats to the U.S. electrical system and prohibited the acquisition of bulk-power system equipment from foreign adversaries. The 2020 National Defense Authorization Act (NDAA) then incorporated these protections into law, requiring the Secretary of Energy to work with other agencies to protect critical electric infrastructure. However, implementation has been slow, with agencies citing the complexity of identifying vulnerable components and establishing replacement protocols.

"We've gone office to office in Congress with Dennis Quaid, briefing staffers and members. They nod, they agree it's critical, then nothing happens. The most maddening response is always some variation of 'it's complicated' or 'we're studying it.' Meanwhile, Former DOE (or Department of Energy) Secretary Jennifer Granholm and Senator Angus King have publicly stated our adversaries are already inside our grid systems. They're there right now, waiting."

If you were advising China or Russia on asymmetric warfare, what would be their most effective space-to-grid attack vector? What keeps you up at night about their current capabilities?

"Cyber attack, without question," Tice responds immediately. "We have over 500 large power transformers from China installed across America. Every single one could contain backdoors—remote kill switches. But it's more insidious than that."

Large power transformers (LPTs) are massive devices—some weighing over 400 tons—that step voltage up or down in the transmission system. The U.S. has approximately 2,000 LPTs critical to grid operations, and replacing one can take 18-24 months due to limited manufacturing capacity. Most are now manufactured overseas, with China becoming a major supplier due to cost advantages. In 2020, the Department of Energy seized a Chinese transformer destined for Colorado, citing security concerns and evidence of embedded hardware that could allow remote access.

He explains the supply chain vulnerability: "Even transformers manufactured in Germany or South Korea contain Chinese components—inverters, microprocessors, control systems. Every chip is a potential weapon. Malware can be embedded at manufacture, lying dormant until activated by a specific signal."

"What keeps me up at night is the axis of evil—Russia, China, North Korea, and Iran—working together to break U.S. hegemony," Tice continues. This alliance has deepened significantly since Russia's invasion of Ukraine in 2022. North Korea has supplied Russia with artillery shells and ballistic missiles, Iran provides drones and technical expertise, while China offers economic lifelines through energy purchases and technology transfers. "Iran's been aggressively cyber attacking the UK. We're essentially at war with Iran now, and they likely have sleeper cells here. Between 25,000 and 100,000 single military-age men have crossed our border—sometimes carrying identical backpacks and equipment."

The sophistication of potential attacks is what's most concerning. "Watch 'Leave the World Behind,' produced by the Obamas. It shows oil tankers crashing from compromised navigation, planes falling from the sky, hundreds of Teslas creating highway blockades—all from simultaneous cyber attacks on microprocessors. That's not fiction; that's the playbook."

Where would you deploy $100 million today to best protect America's grid-space infrastructure interdependencies? Which technologies or approaches offer the highest return on resilience investment?

"Honestly, $100 million isn't nearly enough," Tice states bluntly. "Experts estimate $3-4 billion could protect us from a nationwide outage caused by a massive solar storm—and those risks are increasing with current solar activity."

The concern about solar storms is well-founded. The Carrington Event of 1859, the most powerful geomagnetic storm in recorded history, caused telegraph systems worldwide to fail, with some operators receiving electric shocks and telegraph paper catching fire. If a similar event occurred today, the impact on our electronic-dependent civilization would be catastrophic. One prominent space weather expert estimates there's a 12% chance of a Carrington-class event occurring in any given decade. The protection Tice references involves installing devices like neutral ground blockers and series capacitors that can prevent geomagnetically induced currents from damaging transformers.

But forced to prioritize, Tice has a clear strategy: "First, wake up the regulators. Force utilities to deploy existing protection technology. This isn't charity—there's a mechanism for utilities to spend this money and get reimbursed through rate adjustments. Yes, bills might increase slightly, but it's a small price for survival."

"If I had Trump's ear today, I'd say: 'Mr. President, kudos for your 2019 executive order. Now appoint a grid czar with real authority—like Leslie Groves in the Manhattan Project.' We need someone who can break down doors and override bureaucratic resistance," Tice emphasizes.

General Leslie Groves, immortalized by Matt Damon in Christopher Nolan's "Oppenheimer," was the U.S. Army Corps of Engineers officer who directed the Manhattan Project. Known for his forceful personality and ability to cut through red tape, Groves managed a project employing 130,000 workers across multiple secret sites, ultimately delivering atomic weapons in under three years. His authority to override normal procurement procedures, commandeer resources, and make unilateral decisions became the model for emergency national projects.

"Give them the power to implement protections at critical nodes immediately." The urgency cannot be overstated. "The Doomsday Clock has never been closer to midnight. This is fifth-dimensional chess—our adversaries know that bringing down our grid would justify massive retaliation. But if they're careful, if they make it look like an accident or natural event, we might not even know who to strike back at."

The Doomsday Clock, maintained by the Bulletin of the Atomic Scientists since 1947, represents how close humanity is to catastrophic destruction (represented by midnight). Originally focused on nuclear war, it now incorporates climate change and disruptive technologies. In January 2023, the Clock was set to 90 seconds to midnight—the closest it's ever been—largely due to Russia's war in Ukraine and nuclear threats.

"Every week we delay, we're rolling the dice. Even protecting a portion of the grid could mean the difference between regional blackouts we can recover from and total civilizational collapse. The framework exists—we just need the political will to implement it before it's too late."

Author’s Analysis

David Tice's warnings about grid vulnerability aren't coming from a doomsday prepper or conspiracy theorist—they're coming from a successful financier who discovered an abandoned documentary and realized he'd stumbled onto perhaps the most under-reported national security threat facing America. His transformation from investment manager to grid security evangelist illustrates a troubling pattern: those who dig deepest into our infrastructure vulnerabilities often become the most alarmed.

What makes Tice's advocacy particularly compelling is his pragmatism. He's not calling for a complete grid overhaul or trillion-dollar moonshot. Instead, he's identified specific, achievable protections—many already codified in law but stalled in implementation. The Texas model proves state-level action is possible when political will exists. Senate Bill 075 didn't require federal approval or massive appropriations—just legislators willing to acknowledge the threat and act.

The most chilling aspect of our conversation wasn't the attack scenarios—it was the bureaucratic inertia. When sitting Cabinet members publicly acknowledge that adversaries have penetrated our grid, yet protective measures authorized years ago remain unimplemented, we face a crisis of competence as severe as any external threat. Tice's call for a "grid czar" with Manhattan Project-level authority may sound extreme, but extraordinary threats require extraordinary responses.

The intersection of geopolitical tensions, border security concerns, and infrastructure vulnerability creates what military strategists call a "threat convergence"—multiple risks combining to amplify danger. With the Doomsday Clock at 90 seconds to midnight and the axis of autocracies cooperating more closely than ever, the window for protective action is narrowing.

Perhaps most importantly, Tice's work demonstrates that citizen advocacy can move mountains—or at least state legislatures. His evolution from concerned grandfather to documentary producer to legislative champion shows that individuals, properly motivated and informed, can break through institutional paralysis. The question is whether enough Americans will join him before the lights go out.

About David Tice

David Tice founded the Prudent Bear Fund (BEARX) serving as portfolio manager from 1996-2008. During his last ten-year tenure as manager, BEARX increased in value at a 8.0% annualized rate, while the S&P 500 lost 1.4% annually. His time at BEARX ended upon his successful sale of the fund in December of 2008 to Federated Investors, a NYSE company

David’s investment career began in 1988 with the publication of `Behind the Numbers’, an investment research service giant that focused on “Quality of Earnings Warnings and Sell Recommendations” for more than 150 money managers.Tice gained national recognition making dozens of guest appearances on national business television networks while authoring articles published in Barron's. David dutifully assumed the role of a “Cassandra” to warn investors about the perils of investing near the end of a secular bull market; including the risk of relying on credit growth to expand the economy. In September 1999, Mr. Tice hosted the New York symposium, "The Credit Bubble and its Aftermath" to alert media, investors and policy makers about the threats created by the historic expansion of credit. The very next day, the Symposium was featured on the front page of The Wall Street Journal. In June 2001, Tice testified before Congress regarding conflicts of interest on Wall Street and the consequences of capital markets that lack integrity.

Since his sale of Prudent Bear, Tice currently serves as acting President of Tice Capital, Senior Advisor of the Ranger Equity Bear ETF (HDGE), and partner of Moran Tice Capital Management, LLC, a firm that offers ‘fiat money defense’ money management through SMAs and a fund. In the early 2000’s, Tice served as Executive Producer and financier of the major motion picture Soul Surfer, released in 2011.David's passion for film led him to further success as an early-stage investor when he co-financed the script for the Sony feature film When the Game Stands Tall. In the last two years, David completed production on a documentary about the vulnerability of our power grid, currently entitled Grid Down, Power Up. The documentary will serve as a springboard to initiate an organized social action movement to secure our nation's power grid.

Further Reading & Resources:

• Shawn Ryan Podcast – 1 h 25 m conversation with David Tice
• The Dinesh D’Souza Podcast – Tice segment begins at 21 min 47 s
• Grid Down Power Up – Official Website
• 7-Minute Documentary Teaser (YouTube)
• Full Documentary on SalemNOW (55 min) – free account required
• Take Action – Petition to Protect the Grid