January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 57 of 684E. Non-infrastructureIn addition to the direct spending on its electric network, the Company also invests aportion of its budget in systems, tools, and general plant. The “non infrastructure”category of investment is for capital expenditures that do not fit into one of the foregoingcategories, but which are necessary to run the electric system. Work in this category isfor physical security work at substations. The total 5-year non-infrastructure investmentfor transmission is $1.6m.Transmission - Physical SecurityThis program (C34224) provides for implementation of state-of-the-art security measuresto deter and/or detect unauthorized access to fifteen bulk power substations. Thesecurity measures are intended to deter intrusion by the obviousness of the measuressuch as camera installations and card readers, while at the same time providingtechnology to detect and report intrusions to a 24 x 7 security control center.Examples of proposed security measures are as follows:• Deployment of card reader technologies at select locations at targetedsubstations• State-of-the-art video capabilities connected to remotely monitored cameras• Remote control of certain lights to illuminate the area in case of intrusion• 24 x 7 monitoring of select facilities by a security control centerThese measures will enhance physical security at targeted substations. There is alsoone stand alone project within this program for the Porter substation (C36192).It should also be noted that the installation of additional security measures at larger nonbulkpower stations will be investigated and a plan implemented in FY13, two years inadvance of the original budget plan which shows spend in FY15 and FY16 under projectCNYAS86. Funding in FY13 will be addressed as emergent work.Drivers:This program is driven by the need for additional physical security measures at certainsubstations to mitigate break-ins and the increasing risk that unauthorized access willlead to injury or death of a trespasser who comes in contact with energized equipment. 19Reducing and detecting unauthorized access also reduces risk of vandalism anddamage to electric system equipment.The substations included in this project are already in compliance with the relevantNERC critical infrastructure protection (CIP) requirements, including CIP-006-1a“Physical Security of Critical Cyber Assets.” CIP-006-1a calls for “six walled” securityaround critical cyber assets. For these substations, the six walls usually refer to the19 The Company and the Director of Utility Security at the Department of Public Service havediscussed the need to enhance physical security at certain substations in light of an increase inunauthorized substation access incidents nationwide.II-4058