1. 1 Thoughts on ERCOT-Wide Critical Infrastructure Protection Committee Bill Muston October 31, 2006

2. 2 Electric Sector as a Critical Infrastructure The electric industry is a “critical infrastructure” as established in Presidential Directives Critical infrastructures are those essential services necessary to the economy of the United States and to the freedom of its citizens These infrastructures also are increasingly critical to national security, but many are owned and operated by the private sector or non-federal governmental sector Interdependencies studies suggest that electric sector and communications are the 2 most critical sectors, since all others depend upon on them PDD-63 – Presidential Decision Directive 63 issued by President Clinton, 1998 HSPD – 7 – Homeland Security Presidential Directive 7 issued by President Bush

3. 3 Electric Sector Critical Infrastructure Protection (CIP) Security –Physical security –Cyber security –Operational security Information sharing Prevention & preparedness Response & recovery

4. 4 Roles of an ERCOT-Wide Program Inclusive of all players in ERCOT Formal activities: review & establish position on proposals from NERC, DOE, & DHS; threat assessment and communication; linkage with local and state authorities; response and recovery plans Informal activities: Sharing best practices; networking Representation to include Physical security Cyber security Operations Risk management Generation, transmission, substations, distribution

5. 5 Next Steps Review CIP roles in other NERC regions All other NERC regions have established CIP functions as committees or subcommittees of other standing committees Consider additional role changes as NERC becomes the ERO Prepare for use of HSIN Establish a next meeting around topics agreed to at this 1 st meeting Establish executive outreach to garner support to the effort, targeting both ERCOT management and owner/operators within ERCOT system Goal Define a permanent body and role. Gain ERCOT Board approval. Perhaps a year to complete this.