Is the Ultrasonic Fence broken?

In Civ-BE vanilla, the Ultrasonic Fence made it impossible for aliens to come within 2 tiles of a city. In Rising Tide, the mechanics were changed to merely discourage aliens to come close.

But how exactly does that work?

I assumed that the discouragement effect only gets weaker if the aliens are angry, but in a recent game I treated them super friendly (not attacking a single time) and a Kraken still completely ignored the fence and destroyed all my improvements. I even had the +1 range quest reward.

Am I missing something or is the fence currently broken?

The latest patch (1.1.2.3007) contains the following change:

Ultrasonic Fence is a stronger deterrent to keeping aliens away.

So it seems that, yes, the fence was weaker than intended. Let's see if this patch fixes the issue...