INFORMATION TECHNOLOGY PROGRAM DESCRIPTIONS OPERATIONAL INVESTMENTS

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1 EB-0-0 Exhibit D Schedule - Page of INFORMATION TECHNOLOGY PROGRAM DESCRIPTIONS OPERATIONAL INVESTMENTS SCADA SECURITY, GOVERNANCE AND OPERATIONS Program Overview Within THESL s operations, there is a segment referred to as the Supervisory Control and Data Acquisition ( SCADA ) network. The SCADA network is a vital component of the organization s grid management system. 0 The backbone of the network consists of dark fiber and a SONET ring as the backup communication medium. The SONET backup ring, however, does not extend to all substations, leaving them more at risk in the event of an outage. The network is used to transmit critical grid status information and is monitored via THESL s SCADA systems. It is also used to control the flow of electricity from the supply side of the grid to the various loads on the load side of the grid. While today the flow out to the grid is only one way, this is subject to change with the advent of the Green Energy and Green Economy Act, 0 ( GEA ). The SCADA network is also connected to THESL s internal IT network via a firewall. Based on two independent studies conducted by external consultants in late 0, it has been determined that the current SCADA network has several audit gaps, resulting in a high risk of network compromise. It was also found that the current network infrastructure lacks scalability, adequate redundancy and the ability to properly apply patching for new Security vulnerabilities. This is largely due to the lack of a Test network.

2 EB-0-0 Exhibit D Schedule - Page of With upcoming initiatives such as Green Energy Act Enablement, bi-directional communication over the SCADA network will be required. This change in purpose and function changes the nature of the SCADA network, and its interface with operable components, indicators and other systems. Introducing the new capabilities also means that security measures and control solutions must be completely reviewed to ensure that proper safeguards are in place for the SCADA network. 0 The focus areas for IT&S in 0 include the delivery of the following components/ features: New SCADA design as per architecture review and assessment; Governance model to address network changes, testing protocols for the SCADA network; Dedicated Electronic Policy Orchestrator ( EPO ) servers for SCADA network, including redundant service; Implementation of Field fire wall devices; Review and assessment completed for field fire wall devices; Physical security access mechanism to control access to high security areas, such as control rooms, substations, etc.; Logical access controls to establish enforcement points for access to devices and resources within the SCADA network and into THESL s network; and Overall preparedness to accommodate future requirements of the GEA. Program Benefits Commencing in, the following benefits are expected: Mitigate cyber and physical attacks; High reliability and availability; Infrastructure re-build to ensure that security systems are within the most stable and supported platforms;

3 EB-0-0 Exhibit D Schedule - Page of Eliminate single points of failure; Consistent Security Policy enforcement; Effective logging, comprehensive auditing and timely reporting; Ability to demonstrate effective controls through auditing, logging, reporting, access control; and Ability to report on user access activities and security events. 0 Progress to-date Pursuant to the narratives in THESL s last Cost of Service application (EB-0-00), progress has been made on this program with funding from the approved budget of the Security, Disaster Recovery and Business Continuity program. By the end of 0, the program will have accomplished the deliverables outlined: New SCADA design implemented as per architecture review and assessment; Dedicated EPO servers for SCADA network implemented; and Review and Assessment completed for field fire wall devices. 0 Program Plan IT&S plans to deliver the following capabilities related to two main initiatives/areas: Security and Operations. The SCADA Security and Governance project will address the following: Re-design the SCADA network to be in alignment with THESL s multi-tier network. This will allow for the proper protection to THESL s internal network. o With THESL s upcoming initiatives, this is an important step, since the SCADA communication will need to happen with other THESL internal systems such as OMS/DMS, CC&B, Smart Meter, etc. o There may also be implications of the SCADA information being reflected

4 EB-0-0 Exhibit D Schedule - Page of at the Web presentation layer. This requires complex cross network communication, a foundation that is not in place today Ensure the right governance model is in place to sustain the SCADA network (e.g., changes to the network, testing protocols, etc.) and demonstrate effective controls through logging, reporting and auditing. Control room physical security enhance physical security access mechanisms to increase control access to high security areas, such as control rooms, substations, etc. 0 SCADA Infrastructure The SCADA Infrastructure project will address the following: Extend the robustness and redundancy of the SCADA dark fiber and incorporate it within THESL s Dense Wavelength Division Multiplexing ( DWDM ) (triangle) initiative; Re-design the SONET backup network, especially to the substations where there is no redundancy in place today; and Replace the existing legacy Network equipment with technically advanced intelligent switches, firewalls and proper centralized monitoring software. Program Costs The 0 SCADA program costs in this application are properly scaled and will allow THESL to deliver on time and realize the stated benefits.

5 EB-0-0 Exhibit D Schedule - Page of Table : Program Costs ($ millions) Project Name 0 Historical 0 Bridge 0 Test SCADA Security and Governance 0. SCADA Infrastructure 0. Total.

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