2015 Utility Industry Survey NERC CIP Survey Results Summary Published: September 2015

Contents • • • • •

Authorized usage General survey respondent information Survey findings Contact information Legal notice Copyright © 2015 BRIDGE Energy Group

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Authorized Usage • • •

Refer to Legal Notice at end of presentation You are free to share this document, in its entirety, with others (both inside & outside your company) You are free to quote the contents as long as you clearly reference the source as: – “Source: BRIDGE Energy Group® – 2015 Utility Industry Survey”

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General Survey Respondent Information

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Respondents by Type/Size/Role By Utility Type

Surveyed: Geography:

Over 20,000 Utility Employees North America

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Respondents by Type/Size/Role (cont.) By Organization By Role

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Representative Set of Respondents • • • • • • • • • • • • • • • • • • • • • • • •

Alta Municipal Utilities Ameren American Electric Power Ashburnham Municipal Light ATCO Electric BC Hydro Beltrami Electric Coop BGE Blue Ridge Mtn. EMC Bon Homme Yankton Electric California PUC CenterPoint Energy Central Georgia EMC Central Hudson Charleston Water System Chelan County PUD City of Boerne City of Independence Power & Light City of Manassas ComEd Concho Valley Electric coop Connecticut Light and Power Consumers Energy Decatur Utilities

• • • • • • • • • • • • • • • • • •

Dominion Virginia Power DTE Energy Duke Energy Eugene Water & Electric Board Eversource Exelon Florida Keys Electric Cooperative FPL Garland Power and Light Groton Utilities Holland Board of Public Works Hydro Quebec Idaho Power Company Indianapolis Power & Light Lakeland Electric Lexington Electric System Lynches River Electric Cooperative Madison Gas & Electric Co

• Magic Valley Electric Cooperative • Manitoba Hydro • Minnesota Rural Electric Assoc • MWD of Southern California • National Grid • North Alabama Electric Coop • North Central Mo. Electric • Northeast Utilities • NRG • NSTAR Electric & Gas • Oakville Hydro • OGE • Oncor Electric Delivery • Ontario Power Authority • PacifiCorp • Pasco County Utilities • Pepco Holdings • PHI • Philadelphia Gas Works • Portland General Electric • Powersouth Energy co-op • PPL Electric Utilities • Presque Isle Electric & Gas Co-op

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PSEG Salt River Project Sam Houston Electric Co-op San Diego Gas & Electric Sharyland Utilities Silicon Valley Power SMECO SMUD Southern California Edison Southern Company Southern Nuclear Company Southern Rivers Energy Southside Electric Co-op Tri-State G&T TVA Union City Electric System United Illuminating Unitil Service Corp. Vectren Corp Village of The Branch Virgin Island Water & Power WESCO Distribution Westar Energy, Inc. Wisconsin Public Service Xcel Energy

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Survey Findings

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Nearly One Third of All Utilities Didn’t have a CIP v5 Strategy in Place at the Start of 2015

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68% of utilities do not consider themselves “well prepared” for CIP v5 32% didn’t have a strategy in place in January 2015 “Many utilities are finding that much work remains as deadline for NERC CIP v5 compliance approaches.” - BRIDGE Energy Group

“Fundamentally, NERC CIP has changed the way utilities have to manage compliance for their electric operations at the substation and smaller generating units.” - BRIDGE Energy Group Copyright © 2015 BRIDGE Energy Group

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OT Team Leading Most CIP v5 Compliance Initiatives, but Not All •

Operations is leading NERC CIP readiness efforts in 75% of utilities, IT in the remaining 25%

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92% feel that the correct department is leading this effort

Department Leading NERC CIP Readiness

“Respondents overwhelmingly believe that the correct department is leading this effort.” - BRIDGE Energy Group

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Complexities and Lack of Clear Roles May Prevent Many from Meeting April 2016 Deadline •

Top 3 issues impacting CIP v5 readiness:

Issues impacting CIP v5 Readiness

– Complexity establishing compliance requirements, – Understanding role/required action, and – Complexity of OT/IT issues “As of mid-2015 the complexity of the IT/OT issues and the operational realities driven by relays, RTU and other field devices illustrate that full compliance and operational support by April 2016 is a aggressive goal for some.” - BRIDGE Energy Group Copyright © 2015 BRIDGE Energy Group

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System/Resource Limitations and “Hot Potato” Management Hindering v5 Compliance •

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55% of utilities using/used outside help for CIP v5 compliance efforts 69% rank current tool/system limitations and integration of systems as top project impediments Not surprisingly, 78% of utilities that are “Not well prepared” rank staffing needs as their top project need “As of mid-2015 many utilities are on their 2rd or even 3rd owner of the NERC CIP Version 5 Implementation Program. A definite risk factor.“ - BRIDGE Energy Group Copyright © 2015 BRIDGE Energy Group

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Contact Information To find out more about this survey or to discuss pragmatic solutions for improving operational performance, please contact BRIDGE at: Main: 1.508.281.7133 Toll Free: 1.888.351.8999 [email protected] www.BridgeEnergyGroup.com

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Legal Notice This Report is based on responses to a survey of North American utility employees. BRIDGE Energy Group, Inc. [BRIDGE] assumes no legal liability or responsibility for the accuracy or completeness of any information, or process disclosed. This Survey may include facts, views, opinions and recommendations of individuals and organizations deemed of interest and assumes the reader is sophisticated in this industry. User waives any rights it might have with respect to this Report under any doctrine of third-party beneficiary. Use of this Survey is at user’s sole risk and no reliance should be placed upon any other oral or written agreement, representation or warranty relating to the information herein. THIS REPORT IS PROVIDED ON AN “AS-IS” BASIS. BRIDGE DISCLAIMS ALL WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. NEITHER BRIDGE, NOR ITS, AFFILIATES, SERVICE PROVIDERS, LICENSORS, OFFICERS, DIRECTORS OR EMPLOYEES SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATING TO THIS REPORT OR RESULTING FROM THE USE OF THIS REPORT, INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, USE, DATA OR OTHER INTANGIBLE DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. This Survey (and the content and information included therein) is copyrighted, owned or licensed by BRIDGE who may restrict your access to this Report, or any portion thereof, at any time without cause. User shall abide by all copyright notices, information, or restrictions contained in any content or information accessed through this Report. User shall not reproduce, retransmit, disseminate, sell, distribute, perform, display, publish, broadcast, circulate, create new works from, or commercially exploit this Report (including the content and information made available through this Report), in whole or in part, in any manner, unless authorized as stated therein or without the written consent of BRIDGE, nor use the content or information made available through this Report for any unlawful or unintended purpose.

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