UNITED STATES DEPARTMENT OF AGRICULTURE 

Rural Utilities Service 

Bulletin 1730B-2 

 RD-GD-2005-51

SUBJECT: Guide for Electric System Emergency Restoration Plan

TO: RUS Electric Borrowers and RUS Electric Staff

EFFECTIVE DATE: Date of Approval 

OFFICE OF PRIMARY INTEREST: Electric Staff Division, Electric Program

FILING INSTRUCTIONS: This is a new bulletin and file with 7 CFR Part 1730. 

AVAILABILITY: This bulletin is available on the RUS electric website at: 

http://www.usda.gov/rus/electric/bulletins.htm.

PURPOSE: This guide bulletin contains information to assist RUS electric borrowers in the 

development of a vulnerability and risk assessment (VRA) and an Emergency Restoration Plan 

(ERP). This guide bulletin provides references to existing resources and suggested practices 

with respect to security of critical electric infrastructure. 

January 7, 2005 

___________________________________ _________________

James R. Newby Date 

Assistant Administrator, Electric Program 

Disclaimer: The contents of this guidance document does not have the force and effect of law and is not meant 

to bind the public in any way. This document is intended only to provide clarity to the public regarding 

existing requirements under the law or agency policies.
RUS Bulletin 1730B-2 

Page 2 

TABLE OF CONTENTS 

1 GENERAL...............................................................................................................5 

2 BACKGROUND .....................................................................................................5 

3 VULNERABILITY AND RISK ASSESSMENT (VRA).....................................12 

4 EMERGENCY RESTORATION PLAN (ERP) ...................................................16 

5 REVIEW AND EVALUATION OF VULNERABILITY AND RISK 

ASSESSMENTS AND ERP BY RUS ..................................................................19 

Exhibits

Exhibit A – Federal Emergency Response Telephone and Contact Information 

Exhibit B – Tables of Probability and Impacts 

Exhibit C – FEMA’s Sample Guide for Creating and ERP 

INDEX: 

 Emergency Restoration Plan (ERP) 

 Vulnerability and Risk Assessment (VRA) 

ABBREVIATIONS 

CIPC Critical Infrastructure Protection Committee 

DHS Department of Homeland Security 

DOE U.S. Department of Energy 

ERP Emergency Restoration Plan 

ES Electric Sector 

ESISAC Electric Sector Information Sharing and Analysis Center 

FBI Federal Bureau of Investigation 

FERC Federal Energy Regulatory Commission 

G&T Generation and Transmission Cooperative 

GFR General Field Representative 

HLS Homeland Security 

HSPD Homeland Security Presidential Directive 

IAIP Information Analysis and Infrastructure Protection 

IOU Investor Owned Utility 

ISAC Information Sharing and Analysis Center 

NERC North American Electric Reliability Council 

NIPC National Infrastructure Protection Center 

NRC Nuclear Regulatory Commission 

NRECA National Rural Electric Cooperative Association 

O&M Operations and Maintenance 

PDD Presidential Decision Directive 

POC Point of Contact 

PSD Power Supply Division 

REA Rural Electrification Administration 

RUS Rural Utilities Service 

SCADA Supervisory Control and Data Acquisition Systems 

VRA Vulnerability and Risk Assessment 
RUS Bulletin 1730B-2 

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DEFINITIONS 

Bulk transmission facilities: Are the transmission facilities connecting power supply facilities 

to subtransmission facilities, including both the high and low voltage sides of the transformers 

used to connect to the subtransmission facilities, as well as the supervisory control and data 

acquisition systems (SCADA). 

Cyber-based systems: Electronic, radio-frequency, or computer-based information, 

communication, or control components or assets of a business. 

Disaster: A sudden calamitous event bringing damage, loss, or destruction. The term "disaster" 

lends itself to a preconceived notion of a large-scale event, usually a "natural disaster." In fact, 

however, each event must be addressed within the context of the impact it has on the utility and 

the consumer. What might constitute a nuisance to a large utility or consumer could be a 

"disaster" to a small utility or consumer. 

Distribution facilities: Includes all electrical lines and related facilities beginning at a 

consumer’s meter base and continuing back to and including the distribution substation. 

Emergency Management: Emergency Management is the process of preparing for, mitigating, 

responding to and recovering from an emergency. Emergency management is a dynamic 

process. Planning, though critical, is not the only component of the process. Training, 

conducting exercises and drills, testing equipment and coordinating activities are other important 

emergency management process functions. 

Emergency: An emergency is any unplanned event that can involve deaths or significant 

injuries to employees, customers or the public, or that can shut down a business, disrupt 

operations, cause physical or environmental damage, or threaten a business’ financial standing or 

public image. Numerous events can be "emergencies," including: winter storms, hurricanes, 

tornados, floods, earthquakes, fires, hazardous materials incidents, losses of key suppliers or 

customers, communications failures, chemical or radiological accidents and civil disturbances. 

Generation facilities: Includes the electricity production plant and related facilities, including 

the building containing generation facilities, all fuel handling facilities, the step-up substation 

used to convert the generator voltage to transmission voltage, as well as related energy 

management (dispatching) systems. 

Likelihood of occurrence: Defined in terms of the ease or difficulty of an action to happen in 

relationship to the probability of discovery or denial of action along with the time to achieve the 

desired results. 

North America: Includes the United States, Canada and Mexico 
RUS Bulletin 1730B-2 

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Physical and financial loss: With respect to RUS borrowers, physical and financial loss is 

defined in terms of loss of life, risk to public health, impact to the ability to serve a large portion 

of customers for an extended period of time, impact to the reliability or operability of the energy 

grid, or impact to the continuity of business to the point where the repayment of RUS loan funds 

is jeopardized. 

Private Sector: Individuals and business organizations that are not affiliated with Federal, state 

or local Government entities. 

Subtransmission facilities: Includes the transmission facilities that connect the high voltage 

side of the distribution substation to the low voltage side of the bulk transmission or generating 

facilities, as well as related SCADA facilities. 

Tabletop Exercise: A hypothetical emergency response scenario in which participants get 

together around a table and identify the policy, communications, resources, data, coordination, 

and organizational elements associated with an emergency response. 

Transmission facilities: Includes all electrical lines and related facilities, including certain 

substations, used to connect distribution facilities to generation facilities. Transmission facilities 

include bulk transmission and subtransmission facilities. 

FORMS 

RUS Form 300, “Review Rating Summary” 
RUS Bulletin 1730B-2 

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1 GENERAL 

This guide bulletin is to assist Rural Utilities Service (RUS) borrowers in understanding 

the purpose and aid in the development of a Vulnerability and Risk Assessment (VRA) 

and an Emergency Restoration Plan (ERP). The underlying principle of possessing an 

ERP is to assure the security of RUS loan funds as well the security of the electric 

infrastructure in rural America. The electric infrastructure covered in this guide bulletin 

includes the generation of energy and transmission and distribution of electric power to 

Rural Electrification Act (7 U.S.C. 901 et seq.) beneficiaries. This guide bulletin 

references and contains general methodologies, practices and planning related to 

procedures which support the protection of electric systems and support homeland 

security in the protection of the electric infrastructure. This guide bulletin outlines RUS’ 

minimal requirements and suggested practices with respect to instituting security 

measures. 

This guide bulletin identifies KEY provisions that should be incorporated in an ERP and 

provides references to assist utilities in the development of an ERP through the use of a 

VRA. Utilities may determine that additional provisions beyond what is discussed in this 

guide bulletin may be required for their system. 

Making the "Case" for Emergency Management 

Emergency management requires upper management support if it is to be successful. The 

tone is set by the chief executive by authorizing planning to take place and directing the 

involvement of senior management. Avoid dwelling on the negative effects of an 

emergency (e.g., deaths, fines, criminal prosecution,) when presenting the "case" for 

emergency management, and emphasize the positive aspects of preparedness, prudent 

utility practice and RUS requirements (when applicable). Emergency management helps 

companies fulfill their moral responsibility to protect employees, the community and the 

environment, as well as facilitates compliance with regulatory requirements of Federal, 

State and local agencies. Emergency management enhances a company's ability to 

recover from physical and financial losses, avoid regulatory fines, minimize loss of 

market share, minimize damage to equipment or products or business interruption and 

reduces exposure to civil or criminal liability in the event of an incident. Emergency 

management enhances a company's image and credibility with employees, customers, 

suppliers and the community and may reduce insurance premiums. 

2 BACKGROUND 

a. Legislation. 

(1) Electric power systems were identified in Presidential Decision 

 Directive 63 (PDD-63 1998) as one of the critical infrastructures of the 

United States. PDD-63 states, “Critical infrastructures are those physical 

and cyber-based systems essential to the minimum operations of the 
RUS Bulletin 1730B-2 

Page 6 

economy and government. They include, but are not limited to, 

telecommunications, energy, banking and finance, transportation, water 

systems and emergency services, both governmental and private.” 

(2) On December 17, 2003, the President signed Homeland Security 

Presidential Directive -7 (HSPD-7), “Critical Infrastructure Identification, 

Prioritization, and Protection.” This directive established a national policy 

for Federal departments and agencies to identify and prioritize United 

States critical infrastructure and key resources and to protect them from 

terrorist attacks. HSDP-7 also directed coordination with the Private 

Sector in accordance with applicable laws or regulations. Federal 

department and sector-specific Federal agencies were directed to 

collaborate with appropriate private sector entities and continue to 

encourage the development of information sharing and analysis 

mechanisms. Additionally, Federal department and sector-specific 

Agencies were directed to collaborate with the private sector and continue 

to support sector-coordinating mechanisms to identify, prioritize, and 

coordinate the protection of critical infrastructure and key resources; and 

to facilitate sharing of information about physical and cyber threats, 

vulnerabilities, incidents, potential protective measures, and best practices. 

HSDP-7 superseded PDD/NSC-63 of May 22, 1998 ("Critical 

Infrastructure Protection"), and any Presidential directives issued prior to 

this directive to the extent of any inconsistency. 

b RUS Requirements. 

(1) On October 12, 2004, RUS amended 7 CFR Part 1730, “Electric System 

Operations and Maintenance,” to include the requirement that each 

borrower complete a vulnerability and risk assessment of its entire 

business (physical and cyber) and utilize the results of that assessment to 

create and maintain an ERP. The ERPs that are created are expected to 

benefit the individual electric utilities, rural America and support the 

national strategy for the physical and cyber security of critical 

infrastructures and key assets. RUS believes the security requirements set 

forth in 7 CFR Part 1730 are in line with Homeland Security Presidential 

Directives and prudent utility security practices in light of present-day 

concerns of threats of terrorism to the electric infrastructure of the United 

States. 

(2) RUS intentionally provided a degree of flexibility in the language of 

 7 CFR Part 1730 regarding extent of detail or specificity to provide 

borrowers a degree of latitude in conducting a VRA and in 

development of an ERP. RUS purposely did not attempt to dictate or 

specify a specific, unilateral, plan to all borrowers, as all electric 

utilities are not the same and one size does not fit all. The sheer 

number of variations in RUS borrowers’ systems and their consumers 
RUS Bulletin 1730B-2 

Page 7 

make fixed templates for a standard VRA and ERP unmanageable, 

inefficient, fiscally imprudent and detrimental to enhancing the 

security of the electric sector. RUS recognizes that the borrowers 

themselves know their systems better than any Federal department or 

agency and that it is prudent that borrowers develop their own VRAs 

and ERPs through that knowledge. 

(3) When known as the Rural Electrification Administration (REA), RUS 

promoted and recommended that each electric borrower have a “Disaster 

Plan” or “Emergency Restoration Plan” in place. The 1960 edition of 

REA Bulletin 60-7, “Service Reliability” stated: 

“Every system should have an emergency plan which outlines a 

course of action in the event of source or substation transformer 

failure, excessive storm damage, ect. The plan should provide for 

obtaining outside help from neighboring systems and contractors 

when needed. The coordination of outside help with system 

personnel requires planning ahead of the disaster. Such details as 

availability of system maps, staking sheets and other records, 

communication facilities, housing and food for extra personnel 

should be considered. The plan must be tested periodically to see 

that it is operational.” 

(4) In January of 1998, REA Bulletin 60-7 was rescinded and replaced by 

RUS Bulletin 1730-1, “Electric System Operation and Maintenance 

(O&M).” Bulletin 1730-1 further identified the need for borrowers to 

have an ERP. This bulletin also updated the October 1978 issuance of 

REA Bulletin 161-5, “Electric System Review and Evaluation.” RUS 

Bulletin 1730-1 states that: 

“Each borrower should have a written plan detailing how to 

restore its system in the event of a system wide outage resulting 

from a major natural disaster or other causes. This plan should 

include how to contact emergency agencies, borrower 

management and other key personnel, contractors and equipment 

suppliers, other utilities, and any others that might need to be 

reached in an emergency. It should also include recovery from 

loss of power to the headquarters, key offices, and/or operation 

center facilities. It should be readily accessible at all times under 

any and all circumstances.” 

(5) All electric utilities including RUS borrowers utilize restoration plans in 

responding to service disruptions caused by natural disasters such as 

tornados, hurricanes, ice storms, malicious acts and major equipment 

failures. Not all plans have been placed in writing as the RUS regulation 

now requires. 
RUS Bulletin 1730B-2 

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(6) The September 11, 2001, attacks by terrorists and the continuing threats 

upon our way of life in the United States has precipitated the necessity of a 

next generation restoration plan to not only restore electric service after 

system failure but to take measures to identify possible vulnerabilities and 

to put in place measures to counteract these vulnerabilities and protect the 

electric power system. 

(7) This guide bulletin details features of REA Bulletin 60-7 and RUS 

Bulletin 1730-1, along with new aspects, and provides guidance to 

borrowers for performing a VRA and developing an ERP. 

(8) This bulletin does not supercede any of the requirements for nuclear 

power facilities as specified by the United States Nuclear Regulatory 

Commission (NRC) and any guidance in this document is in addition to 

those mandated by the NRC. 

c Security Advisory System. 

(1) On March 11, 2002, the President signed into law Homeland Security 

Presidential Directive-3 (HSPD-3). HSPD-3 established a comprehensive 

and effective means to disseminate information regarding the risk of 

terrorist acts to Federal, State, and local authorities and to the American 

people. The Directive decreed that the system would provide warnings in 

the form of a set of graduated "Threat Conditions" that would increase as 

the risk of the threat increases. At each Threat Condition, Federal 

departments and agencies would implement a corresponding set of 

"Protective Measures" to further reduce vulnerability or increase response 

capability during a period of heightened alert. 

(2) The system was intended to create a common vocabulary, context, and 

structure for an ongoing national discussion about the nature of the threats 

that confront the homeland and the appropriate measures that should be 

taken in response. The system aspires to inform and facilitate decisions 

appropriate to different levels of government, the private sector, and to 

private citizens at home and at work. The Homeland Security Advisory 

System is binding on the executive branch and is suggested, on a 

voluntary basis, to other levels of government and the private sector. 
RUS Bulletin 1730B-2 

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d Threat Alert System. 

(1) There are five Threat Conditions, each identified by a description and 

corresponding color. 

Homeland Security Advisory System 

Low Condition (Green). This condition is declared when there is a low risk 

of terrorist attacks.

Guarded Condition (Blue). This condition is declared when there is a general 

risk of terrorist attacks.

Elevated Condition (Yellow). An Elevated Condition is declared when there is a 

significant risk of terrorist attacks.

High Condition (Orange). A High Condition is declared when there is a high 

risk of terrorist attacks.

Severe Condition (Red). A Severe Condition reflects a severe risk of terrorist 

attacks.

 The higher the Threat Condition, the greater is the risk of a terrorist attack. 

Risk includes both the probability of an attack occurring and its potential 

gravity. For the Federal Government, the threat conditions are assigned 

by the Attorney General in consultation with the Assistant to the President 

for Homeland Security. Except in exigent circumstances, the Attorney 

General shall seek the views of the appropriate Homeland Security 

Principals or their subordinates, and other parties as appropriate, on the 

Threat Condition to be assigned. Threat Conditions may be assigned for 

the entire Nation, or they may be set for a particular geographic area or 

industrial sector. Assigned Threat Conditions are reviewed at regular 

intervals to determine whether adjustments are warranted. 

(2) The Color-coded Threat Level System is used to communicate with public 

safety officials and the public at-large so that protective measures can be 

implemented to reduce the likelihood or impact of an attack. Raising the 

threat condition has economic, physical, and psychological effects on the 

nation. The Homeland Security Advisory System can place specific 

geographic regions or industry sectors on a higher alert status than other 

regions or industries, based on specific threat information. The national 

threat advisory level can be accessed through DHS at 

http://www.DHS.gov. 

(3) The specific threat alert level system for the electric sector is posted at the 

Electric Sector Information Sharing and Analysis Center (ESISAC) 

website which can be accessed at http://www.esisac.com. The Department 

of Energy designated the North American Electric Reliability Council 

(NERC) as the Sector Coordinator for the Electricity Sector (ES). NERC, 

through its Critical Infrastructure Protection Committee (CIPC), has 

developed two guidelines related to the threat alert system: “Threat Alerts 

System and Physical Response Guidelines for the Electricity Sector,” and 
RUS Bulletin 1730B-2 

Page 10 

“Threat Alerts System and Cyber Response Guidelines for the Electricity 

Sector.” RUS encourages electric borrowers to refer to these two NERC 

guidelines at http://www.esisac.com/library-guidelines.htm. These guides 

will assist in understanding the threat alert level definitions specific to the 

electric sector. RUS has by federal mandate adopted the five level color 

coded Threat Alert System and fully supports NERC that has also adopted 

the federal threat alert system. 

e North American Electric Reliability Council (NERC). 

(1) NERC is a not-for-profit corporation whose members are comprised from 

the ten Regional Reliability Councils. The members of these councils 

come from all segments of the electric industry: investor-owned utilities, 

federal power agencies, rural electric cooperatives, state, municipal and 

provincial utilities, independent power producers, power marketers, and 

end-use customers. These entities account for virtually all the electricity 

supplied and used in the United States, Canada and a portion of Baja 

California Norte, Mexico. NERC was established in 1968 and since that 

time has grown and has operated successfully as a voluntary organization, 

relying on reciprocity, peer pressure and the mutual self-interest of all 

those involved to ensure that the bulk electric system in North America is 

reliable, adequate, and secure. 

(2) NERC sets standards for the reliable operation and planning of the bulk 

electric system, monitors, assesses and enforces compliance with 

standards for bulk electric system reliability, provides education and 

training resources to promote bulk electric system reliability, coordinates 

critical infrastructure protection of the bulk electric system and many other 

functions which can be found at their website (www.nerc.com). 

(3) NERC's activities are overseen by committees and working groups 

composed of representatives from all industry segments who provide 

unmatched expertise in the planning, engineering and operating aspects of 

electric system reliability, security, and competitive wholesale electricity 

markets. One subcommittee, the Critical Infrastructure Protection 

Committee (CIPC), oversees NERC activities promoting cyber and 

physical security of the industry. 

f Critical Infrastructure Protection Committee (CIPC). 

(1) The CIPC is one of the NERC committees that serve as the focal point for 

coordinating information exchange on critical infrastructure issues 

between the electricity industry and the federal government. The group is 

comprised of industry experts in the areas of cyber security, physical 

security, operational security, and policy from both the private and public 

sector. CIPC is the body that develops and coordinates NERC's security 
RUS Bulletin 1730B-2 

Page 11 

initiatives. Through CIPC, government and industry work together to 

develop guidelines and best practices for utilities to draw on for 

information to better protect the electricity infrastructure and recover from 

physical and cyber attacks. This coordination ensures that the industry is 

able to speak with one voice and take action in a consistent and effective 

manner. The majority of the membership of the CIPC is comprised of 

electric utilities but other members include: DHS, DOE, and NRECA. 

RUS is an active participant in this committee. The NERC Board of 

Directors has approved CIPC’s document entitled, “Security Guidelines 

for the Electricity Sector” which is comprised of fifteen individual 

Security Guidelines (as well as an Overview document) for the electric 

sector. The fifteen guidelines are: 

1. Vulnerability and Risk Assessment, 

2. Threat Response, 

3. Emergency Plans, 

4. Continuity of Business Processes, 

5. Communications, 

6. Physical Security, 

7. Cyber Security - Risk Management, 

8. Cyber Security - Access Controls, 

9. Cyber Security - IT Firewalls, and 

10. Cyber Security - Intrusion Detection, 

11. Employment Background Screening, 

12. Protecting Potentially Sensitive Information, 

13. Securing Remote Access to Electronic Control and Protection 

 Systems, 

14. Threat and Incident Reporting, and 

15. Physical Security – Substations 

(2) RUS endorses the use of NERC security guidelines, in part or in whole, as 

deemed suitable, by RUS borrowers. These guidelines can be found and 

downloaded free of charge on the ESISAC website 

http://www.esisac.com/library.htm, under Security Standards and 

Guidelines; Threat Alert Systems. 

g Electricity Sector Information Sharing and Analysis Center (ESISAC). NERC 

operates the Information Sharing and Analysis Center for the Electricity Sector 

(ESISAC). The ESISAC is utilized to share information through out the electric 

sector via website postings. ESISAC serves the Electricity Sector by facilitating 

communications between electric sector participants, the Federal government and 

other critical infrastructure industries and disseminates threat indications, 

analyses, and warnings, together with interpretations, to assist electricity sector 
RUS Bulletin 1730B-2 

Page 12 

participants in taking protective actions. The threat alert level for the electric 

sector is posted and continuously updated at the ESISAC website. Utilities can 

obtain current ESISAC information by going to the website at 

http://www.esisac.com. 

 NOTE: Initial emergency or incident reporting of suspicious and/or 

malicious acts should always be to local law enforcement and local FBI. 

h Department of Homeland Security, Directorate of Information Analysis and 

Infrastructure Protection (IAIP). The Department of Homeland Security (DHS), 

specifically the Directorate of Information Analysis and Infrastructure Protection 

(IAIP) will be the lead federal organization in coordinating the national effort to 

secure the nation's critical infrastructure. The DHS IAIP will have the capability 

to identify and assess current and future threats to the homeland; map those 

threats against our vulnerabilities, issue timely warnings and take preventive and 

protective action. The IAIP team will establish partnerships with key 

government, public, private and international stakeholders to create an 

environment that enables all partners to better protect their respective 

infrastructure. IAIP will also create awareness programs, develop information 

sharing mechanisms, and sector focused best practices and guidelines. The DHS 

IAIP website can be accessed at www.dhs.gov. 

 NOTE: Initial emergency or incident reporting of suspicious and/or 

malicious acts should always be to local law enforcement and local FBI. 

3 VULNERABILITY AND RISK ASSESSMENT (VRA) 

a A vulnerability and risk assessment is recognized as effective decision support 

tool for prioritizing and determining sites and functions within a business in need 

of security investment and development of a meaningful ERP. While it is not 

financially feasible to reduce risk to all potential physical and cyber targets of an 

electric system, vulnerability and risk assessments can help ensure that the 

available resources and actions taken are justified and implemented based on 

threat, vulnerability of a business asset to attack, and the importance of the asset. 

The VRA is intended to obtain the “big picture.” 

(1) Title 7 CFR Part 1730 requires RUS borrowers to prepare a VRA and use 

it to develop an ERP. The VRA should be designed and focused to 

specifically identify: 

● Business facilities and functions that are considered critical facilities, 

● Facilities and functions with possible exposure to harm, 

● Methods and methodologies to mitigate identified exposures to 

harm, and 

● Priority of remedial attention of those identified facilities and 

functions, if any, to best utilize funds in the most prudent manner. 
RUS Bulletin 1730B-2 

Page 13 

(2) Section 1730.27 requires each borrower to identify critical business asset 

components or elements in its system. RUS recommends that borrowers 

utilize the following criteria to assist in identifying critical facilities or 

business functions: 

“Those facilities or business functions that if damaged or destroyed 

would cause significant loss of life, risk to public health, 

negatively impact the ability to serve a large portion of its 

customers for an extended period of time, have a detrimental 

impact on the reliability or operability of the energy grid, or impact 

continuity of business to the point where the repayment of RUS 

loan funds are jeopardized.” 

b Vulnerability Assessment Criteria. 

(1) A VRA should identify and quantify the utilities facilities, assets, or 

infrastructure that would have significant impact on utility operations if 

damaged or destroyed. The VRA should quantify the estimated criticality 

along with the physical and financial loss with the likelihood of 

occurrence. Additionally, the VRA should explore external system 

impacts (interdependency), if any, with loss of identified system 

components to other sectors or other sectors they are dependent on (i.e., 

transportation, telecommunications, fuel, etc.,) and any business or facility 

unique to the utility business that might affect homeland security 

concerns. 

(2) RUS does not dictate a specific method for electric borrowers to 

employ in developing a VRA. Utilities need to utilize their unique 

knowledge of their systems to develop and execute a candid VRA specific 

to their system. RUS recommends that borrowers analyze the 

vulnerability of all their assets. Particular awareness should be given, but 

not limited to, facilities serving: military bases, chemical and 

pharmaceutical plants, hospitals and rural health clinics, fire, police, and 

emergency response centers. Many other critical infrastructures are 

dependant upon the electric sector such as: emergency medical response 

stations, all forms of communications facilities (telecommunications, 

commercial radio, television, air transportation control, etc.,) food 

processing and associated transportation related facilities, banks and 

banking facilities, and major fuel storage and pipeline facilities. For these 

other critical infrastructures, it is not the responsibility of the RUS 

borrower to perform a VRA, develop an ERP or utilize their own 

funds to fortify other critical infrastructures. RUS’ desire is to 

emphasize that utilities need to develop (if they have not done so) bridges 

of communication with their customers to be able to serve their needs, 

particularly if they are critical infrastructures. 
RUS Bulletin 1730B-2 

Page 14 

(3) One technique to begin the development of a VRA is for the utility to 

bring together personnel that have the knowledge to identify the possible 

events and specific physical and cyber facilities or equipment that if 

compromised or damaged could result in significant physical and financial 

loss as defined in this section. Fault tree analysis or flow charts are also 

good tools to utilize to identify specific events, facilities, and equipment 

that could result in system failure on some level of criticality. Critical 

assets that are identified can be ranked according to what their loss would 

represent. 

(4) Vulnerability and threat identification is the most important step in the risk 

assessment process. (If vulnerabilities and threats are not accurately 

identified, the risks they represent cannot be reduced or eliminated). 

Identified vulnerabilities and associated threats are then paired with 

company assets. Risk-assessment identifies weaknesses in the company's 

critical assets that could be exploited by the threats identified and 

determines their nature and source. Methods used to identify 

vulnerabilities include evaluating data obtained through surveys and 

historical data from related incidents and applying formal vulnerability 

analysis techniques. Asset vulnerabilities can include operations and 

processes, policies and procedures, physical and technical security, 

information security, personnel security, and operations security. 

(5) Mitigation or feasible actions are measures taken by the utility that either 

eliminate the causes or reduce the effects of one or more identified 

vulnerabilities. Actions can include controlling access to a facility, 

security cameras, personnel background investigations, new procedures, 

etc. The utility prudently selects actions on the basis of factors such as: 

whether the actions will reduce the probability of an undesired event 

occurring, the cost of the implementing actions, and whether there are any 

enforcement and audit requirements. Actions can be prioritized by 

considering the amount of resulting risk reduction, cost, difficulty to 

implement, or a combination thereof. Usually, there is a point beyond 

which adding countermeasures will raise costs without appreciably 

enhancing the protection afforded. RUS does not dictate specific actions, 

if any, that borrowers must employ; RUS is leaving this decision making 

up to the discretion of borrowers. 

(6) The identification of critical transformers on a system provides a good 

illustration of a methodology to use for the VRA process. It is impractical 

to try to include all pole or pad mounted distribution transformers in a 

VRA or to mitigate possible threats to them. However, there will be some 

service transformers for which mitigation should be considered. These are 

transformers that supply energy to specific customers who provide 

services determined to be critical such as such as military facilities, 
RUS Bulletin 1730B-2 

Page 15 

hospitals, chemical plants and pharmaceutical plants, etc. (These 

customers should be contacted to discuss the need for any remedial efforts 

and the costs, if it is decided there is a need to provide protection). Except 

for the special case service transformers just discussed, it is more likely 

that certain substation transformers, step transformers or voltage 

regulators and, other specific transformers critical to the utility to maintain 

business continuity or serve utility-identified specific customers would 

need to be included in a VRA. If certain substations were identified as 

critical and there was significant associated risk identified through the 

VRA, the utility would seek to implement the most cost and security 

effective design to mitigate the risk. For the purpose of this example the 

utility may decide that the most efficient and effective mitigation action 

would be to replace the chain link fence with a cement block, sand filled 

wall. This removes equipment in the substation from line of sight and 

reduces the possibility of someone being able to utilize a projectile (bullet) 

to damage equipment causing a failure and an associated outage. The 

utility would also need to have determined if the cost of constructing the 

barrier (cement block wall) was reasonable compared to the cost of repair 

or replacement of the equipment and the level of risk loss of that 

transformer will cause. 

(7) RUS recognizes and recommends the use of part or all of the NERC 

Guide, “Vulnerability and Risk Assessment” which can be found at 

http://www.esisac.com/library-guidelines.htm, as well as, the “FEMA 

Emergency Management Guide for Business and Industry,” Exhibit C to 

this bulletin, provides assistance in conducting a VRA on a utility system. 

(8) RUS advocates that follow-up VRAs be performed when major system 

changes are made or if a new credible threat to the company’s electric 

system that has not been evaluated is discovered. 

c Certification to RUS of Completion of VRA. 

(1) Section 1730.26 (b) requires RUS borrowers to send RUS written 

certification that they have conducted a VRA of their entire electric 

system and business. Borrowers with loans approved prior to 

 July 12, 2005, are required to send a letter to RUS certifying that a VRA 

has been completed. This letter needs to be submitted to RUS on or prior 

to July 12, 2005. Distribution borrowers should send this letter to their 

respective Regional Divisional office. Generation and Transmission 

borrowers should send this letter to the RUS Power Supply Division 

(PSD). 
RUS Bulletin 1730B-2 

Page 16 

(2) All loan requests submitted to RUS on or after July 12, 2005, will need to 

include a certification of completion of a VRA with the loan application. 

(3) An example of certification language is “[ABC Electric Cooperative] 

certifies to RUS that on [INSERT DATE], it completed a vulnerability and 

risk assessment of its electric system to include both physical and cyber 

assets. [ABC Electric Cooperative] will retain in its records the results of 

the VRA.” This letter is required be signed by the borrower’s Manager or 

Chief Executive Officer. 

NOTE: RUS does not want the actual VRA to be included in the loan 

package or sent to RUS. Only a letter certifying that a VRA has been 

completed should be included in the loan application or be sent to RUS. 

d Record keeping of completed VRA. Title 7 CFR Part 1730 requires RUS 

borrowers to maintain in their records the results of their VRAs as well as a copy 

of the original letter to RUS stating that a VRA has been completed. 

4 EMERGENCY RESTORATION PLAN (ERP) 

a The development of an emergency restoration plan offers a utility the opportunity 

to prepare and plan the most efficient means in which to restore its system in the 

event of either a small isolated outage or a system wide outage resulting from a 

major natural disaster or other cause. The ERP needs to be a practical and 

functional tool which a utility can rely on for initial recovery efforts. It should be 

the foundation under which a utility, under possible adverse and confusing 

conditions, can begin to restore its system including both the physical (pole, 

wires, transformers etc.,) and cyber (telecommunications and SCADA) 

components and efficiently utilize its resources. 

b Requirements for Compliance of Emergency Restoration Plan. Section 1730.28 

requires each borrower to now have a written ERP in place and to incorporate the 

following in this ERP: 

(1) A list of key contact emergency telephone numbers (emergency agencies, 

borrower management and other key personnel, contractors and equipment 

suppliers, other utilities, and others that might need to be reached in an 

emergency). RUS has provided a list of key federal emergency response 

numbers and contacts that need to be included in borrowers’ ERPs; these 

telephone numbers can be found in Exhibit A of this bulletin. Borrowers 

should add any additional contacts that they deem suitable for their ERP. 

(2) A list of key utility management and other personnel and identification of 

a chain of command and delegation of authority and responsibility each 

individual has during an emergency. 
RUS Bulletin 1730B-2 

Page 17 

(3) Procedures for recovery from loss of power to the headquarters, key 

offices, and/or operation center facilities. 

(4) A business continuity section describing a plan to maintain or re-establish 

business operations following an event which disrupts business systems. 

This should include computer (i.e., SCADA), telecommunications, 

financial (metering revenue and data) and other business systems. 

(5) Any other items identified by the borrower as essential for inclusion in the 

ERP. RUS highly recommends that borrowers develop and include in 

their ERP mutual aid agreements and investigate participating in spare 

parts emergency supply agreements. 

(6) The ERP is required to be signed by the Manager or CEO and approved by 

the Board of Directors. 

 ERP’s are to be developed by the borrower through the borrower’s unique 

knowledge of its system, prudent utility practices and the borrower’s completed 

VRA. Most utilities presently have a storm plan that addresses the majority of the 

requirements of the new ERP RUS requires. In many cases, borrowers will 

conclude that they can simply modify their existing storm plan after completing 

their VRA. RUS recommends that borrowers read the NERC Security Guidelines 

(see paragraph 3.b.7) and to implement the components germane to their system, 

as well as the FEMA Emergency Management Guide for Business and Industry. 

c Joint development of an Emergency Restoration Plan. Borrowers may develop a 

joint electric utility ERP, provided that each RUS borrower prepares an addendum 

to meet the requirements specified in § 1730.28 (a). The term “joint electric 

utilities” is intended to mean the incorporation of all electric utilities within an 

area and to include non-RUS borrowers and IOU’s. Borrowers may also prepare 

a joint ERP utilizing their power supplier (G&T) as the lead to facilitate the 

creation of an ERP. RUS recognizes that there may be opportunities for 

borrowers to pool their resources in the development of their ERPs. 

d Exercising an ERP. Title 7 CFR Part 1730 requires RUS borrowers to exercise 

their ERP at least annually to ensure operability and employee familiarity with the 

plan. A borrower may exercise its ERP in a number of ways: 
RUS Bulletin 1730B-2 

Page 18 

(1) After a natural event (i.e., storm event) that requires the utility to utilize 

a significant portion of its ERP. Once recovery efforts are complete the 

utility can verify that the numbers and names of the Point of Contacts 

(POC’s) listed in the ERP are correct. 

(2) Participate in joint exercises with other utilities (including non-electric 

utilities), with other borrowers, or State or County Agencies. State or 

County Agencies may offset associated costs by utilization of HLS 

funds that may be available. 

(3) Performing a tabletop exercise. A cooperative may conduct a tabletop 

exercise which is a hypothetical emergency response scenario in which 

participants get together around a table and identify the policy, 

communications, resources, data, coordination, and organizational 

elements associated with an emergency response. The tabletop 

exercise allows the revue of the response process and minimizes costs 

associated with a live exercise. This provides for a non-threatening 

method to exercise response, confirms understanding of procedures and 

provides a venue to voice concerns on responsibility. 

e Certification to RUS of Completion of an ERP. 

(1) Section 1730.26 (b) requires RUS borrowers to certify that they have 

completed and placed an ERP in place. This certification can be written in 

letter form. Borrowers with loans approved prior to January 12, 2006, are 

required to send a letter to RUS certifying that an ERP has been 

completed. This letter needs to be submitted to RUS on or prior to 

January 12, 2006. Distribution borrowers should send this letter to their 

respective Regional Divisional office. Generation and Transmission 

borrowers should send this letter to the RUS Power Supply Division. 

(2) All loan requests submitted to RUS on or after January 12, 2006, will need 

to include a certification of completion of an ERP with the loan 

application. 

(3) An example of certification language is “[ABC Electric Cooperative] 

certifies to RUS that on [INSERT DATE], it has completed a written ERP 

for its electric system to include both physical and cyber assets. [ABC 

Electric Cooperative] will retain for its records the date of establishment 

of the ERP. [ABC Electric Cooperative] has provided copies of its ERP to 

key personnel.” This letter is required be signed by the borrower’s 

Manager or Chief Executive Officer. 

NOTE: RUS does not want the actual ERP to be included in the loan 

package or sent to RUS. Only a letter certifying that an ERP has been 

completed should be included in the loan application or be sent to RUS. 
RUS Bulletin 1730B-2 

Page 19 

f Record keeping of completed ERP. RUS borrowers are required to maintain 

records that confirm that an ERP has been completed. Upon request, the records 

denoting that the ERP was completed, shall be made available to RUS. 

Borrowers need to record completion of the ERP on RUS Form 300, “Review 

Rating Summary.” The RUS General Field Representative (GFR) who normally 

conducts the O&M, may request to see the ERP for the sole purpose of verifying 

that the ERP has been completed and is readily available for cooperative 

personnel. The GFR will not be reviewing the document for content or 

applicability. RUS borrowers shall also maintain, for its records, a copy of the 

original letter to RUS stating that an ERP has been completed. 

5 REVIEW AND EVALUATION OF VULNERABILITY AND RISK ASSESSMENTS 

AND ERP BY RUS 

a Each borrower is responsible for maintaining records of the VRA conducted and 

the establishment of an ERP and updates of each. Any or all of these records may 

be examined by RUS during its review and evaluation as identified in § 1730.24 

and RUS Bulletin 1730-1, Section 2.1, Records. RUS will conduct periodic 

reviews of theses records to determine borrower compliance with RUS policy. 

b Distribution Borrowers’ Reviews. 

(1) The RUS GFR is responsible, within the GFR's assigned territory, for 

initiating and conducting a periodic review to verify that the borrower has 

completed a VRA and maintains and exercises [at least annually] an ERP. 

The GFR will not be reviewing the VRA or ERP for content but shall 

validate that the borrower has an ERP that is readily available and that the 

borrower checked the Emergency Restoration Plan item on the RUS Form 

300. The GFR is responsible for conducting this review and evaluation at 

least once every 3 years. 

(2) If adequate information is available, the GFR will complete the review and 

evaluation and consult with the borrower regarding its programs and 

records for conducting a VRA and possessing an ERP. The GFR's 

signature on the RUS Form 300 signifies that the borrower has satisfied 

the VRA and ERP provisions to the satisfaction of RUS. 

(3) If the borrower has not completed a vulnerability assessment, does not 

have a written ERP signed by the proper management, or has not 

performed and recorded, at a minimum, an annual test of operability, the 

GFR's review and evaluation will be deferred until the borrower has 

remedied the deficiencies. A borrower that is not in compliance with the 

VRA and ERP provisions will not be able to obtain advances of loan funds 

or loan approval until full compliance with 7 CFR Part 1730, in regard to 

the ERP, is demonstrated. 
RUS Bulletin 1730B-2 

Page 20 

Rev. 03/2005 

(4) Upon completion of the O&M review and evaluation, the GFR will 

communicate his/her findings to the borrower. 

c Power Supply Borrowers. 

(1) The RUS Power Supply Division (PSD) is responsible for initiating and 

conducting a periodic review to verify that the borrower has completed a 

VRA and maintains and exercises [at least annually] an ERP. PSD will 

not be reviewing the VRA or ERP for content but shall validate that the 

borrower has an ERP that is readily available and that the borrower 

checked the Emergency Restoration Plan item on the RUS Form 300, 

“Review Rating Summary.” PSD will determine the frequency of this 

review and evaluation. 

(2) If adequate information is available, the PSD representative will complete 

the review and evaluation and consult with the borrower regarding its 

programs and records for conducting a VRA and possessing an ERP. The 

PSD representative’s signature on the RUS Form 300 signifies that the 

borrower has satisfied the VRA and ERP provisions to the satisfaction of 

RUS. 

(3) If the borrower has not completed a vulnerability assessment, does not 

have a written ERP signed by the proper management, or has not 

performed and recorded, at a minimum, an annual test of operability, the 

PSD representative’s review and evaluation will be deferred until the 

borrower has remedied the deficiencies. A borrower that is not in 

compliance with the VRA and ERP provisions will not be able to obtain 

advances of loan funds or loan approval until full compliance with 7 CFR 

Part 1730, in regard to the ERP, is demonstrated. 

(4) Upon completion of the O&M review and evaluation, the PSD 

representative will communicate findings to the borrower. 

(5) A RUS GFR may, upon request by PSD, assist in the review and 

evaluation, particularly with respect to transmission, sub-transmission, and 

substation facilities 
RUS Bulletin 1730B-2 

Exhibit A 

Page 1 

EXHIBIT A 

Federal Emergency Response Telephone and Contact Information 

Criminal/Terrorist Incident 

To locate local office 

Federal Bureau of Investigation 

http://www.fbi.gov/contact/fo/territory.htm

DHS/IAIP (NIPC) http://www.dhs.gov or http://www.nipc.gov 1-202-323-3204

 Email: nicc@dhs.gov 

 Phone: 202-282-9201 

 Fax: 703-607-4998 

U.S. National Response Team http://www.nrt.org

Chemical Incident National Response Center 1-888-424-8802

Biological Incident Medical Research Institute of Infectious Diseases 1-800-872-7443

Radiation Incident Armed Forces Radiobiology Research Institute 

AFRRI/MRAT 301-295-0530

 1-800-SKY-PAGE PIN 801-0338

REAC/TS 8:00 AM- 4:30 PM (CST) 1-865-576-3131

 AFTER 4:30 PM (CST) 1-865-576-1005

Health Incident Health and Human Services http://www.hhs.gov

Center for Disease Control http://www.cdc.gov

http://www.bt.cdc.gov

Public Inquires 404-639-3534 or 1-800 311-3435

Center for Disease Control and Prevention 1-404-639-3311

ESISAC Email: esisac@nerc.com

Internet: http://www.esisac.com 

Phone: 609-452-8060 (NERC office hours) 

Fax: 609-452-9550 

NOTE: Any additional numbers that the utility deems needed (local hazmat, fire and police 

departments, etc.) should be added to this list. 

RUS Bulletin 1730B-2 

Exhibit B 

Page 1 

EXHIBIT B 

Tables of Probability and Impacts 

Table I

Probability

Probability 

Level 

Threat Level of Undesired 

Event 

Corresponding Sector Threat Alert 

Level 

 5 Severe or Obvious Red 

 4 High or Significant Orange 

 3 Elevated or Considerable Yellow 

 2 Guarded or Minor Blue 

 1 Low or remote Green 

Table II

Impact

Levels of Criticality and Consequences 

Impact Level Criticality Characteristics 

5 Catastrophic High mortality, acute injury, health/safety crisis, extended 

system loss or collapse, or severe environmental damage 

4 Critical Low mortality, severe injury, health/safety crisis, major 

system loss or environmental damage 

3 Marginal Minimal injury or health/safety issue, or minimal or short 

term system or environmental damage 

2 Insignificant No injury or health/safety event, small or short term system 

loss or environmental damage 

1 Remote No injury or health safety event, no system loss or 

environmental damage 

These two general tables can be utilized to assist in categorizing the risk, threat, probability, 

criticality and consequences. Once the events, facilities and equipment are identified and the 

threat, probability and consequences have been categorized and prioritized, the utility can utilize 

the criteria in Tables I and II to develop matrixes to categorize the vulnerabilities and risk. 

RUS Bulletin 1730B-2 

Exhibit C 

Page 1 

EXHIBIT C 

FEMA’s Sample Guide For Creating an ERP

This fundamental guide was created by FEMA and provides step-by-step advice on how to create 

and maintain a comprehensive emergency management program or plan. It can be used by 

utilities, manufacturers, corporate offices, retailers, or any organization where a sizable number 

of people work or gather. RUS has made slight modifications in the FEMA Guide to make it 

more electric sector specific. 

To utilize this guide, you need not have in-depth knowledge of emergency management. What is 

necessary is the authority to create a plan and a commitment from the chief executive officer to 

make emergency management part of your corporate culture. 

If you already have an Emergency Restoration Plan, as most electric utilities do (i.e., Storm 

Plan), use this guide as a resource to assess and update your plan. 

SECTION 1 -- 4 STEPS IN THE PLANNING PROCESS 

Step 1 -- Establish a Planning Team 

Step 2 -- Analyze Capabilities and Hazards -- Your Vulnerability and Risk Analysis (VRA) 

Step 3 -- Develop the Emergency Restoration Plan (ERP) 

Step 4 -- Implement the ERP 

STEP 1 -- ESTABLISH A PLANNING TEAM. 

There must be an individual or group in charge of developing the ERP. The following is 

guidance for making the selection. 

Form the Team. The size of the planning team will depend on the facility's operations, 

requirements and resources. Usually involving a group of people is best because: 

• It encourages participation and gets more people invested in the process. 

• It increases the amount of time and energy participants are able to give. 

• It enhances the visibility and stature of the planning process. 

• It provides for a broad perspective on the issues. 

Determine who can be an active member and who can serve in an advisory capacity. In many 

cases, one or two people will be doing the bulk of the work. At the very least, you should obtain 

input from all functional areas. Remember: 

• Upper management 

• Line management 

• Labor 

• Human Resources 

• Engineering and maintenance 

• Safety, health and environmental affairs 
RUS Bulletin 1730B-2 

Exhibit C 

Page 2 

• Public information officer 

• Security 

• Community relations 

• Sales and marketing 

• Legal 

• Finance and purchasing 

Have participants appointed in writing by upper management. Their job descriptions should be 

amended to reflect this important assignment. 

Establish Authority. Demonstrate management's commitment and promote an atmosphere of 

cooperation by "authorizing" the planning group to take the steps necessary to develop a plan. 

The group should be led by the chief executive or the manager. Establish a clear line of 

authority between group members and the group leader, though not so rigid as to prevent the free 

flow of ideas. 

Issue a Mission Statement. Have the chief executive or manager issue a mission statement to 

demonstrate the company's commitment to emergency management. The statement should: 

• Define the purpose of the plan and indicate that it will involve the entire organization 

• Define the authority and structure of the planning group 

• Establish a Schedule and Budget. Establish a work schedule and planning deadlines. 

Timelines can be modified as priorities become more clearly defined. Develop an initial 

budget for such things as research, printing, seminars, consulting services and other 

expenses that may be necessary during the development process. 

STEP 2 -- ANALYZE CAPABILITIES AND HAZARDS -- VRA. 

This step entails gathering information about current capabilities and about possible hazards and 

emergencies, and then conducting a vulnerability analysis to determine the capabilities for 

handling emergencies. 

Where Do You Stand Right Now? 

Review Internal Plans and Policies 

Documents to look for include: 

• Storm Plan 

• Restoration plan 

• Mutual aid agreements 

• Evacuation plan 

• Fire protection plan 

• Safety and health program 
RUS Bulletin 1730B-2 

Exhibit C 

Page 3 

• Environmental policies 

• Security procedures 

• Insurance programs 

• Finance and purchasing procedures 

• Plant closing policy 

• Employee manuals 

• Hazardous materials plan 

• Process safety assessment 

• Risk management plan 

• Capital improvement program 

Meet with Outside Groups 

Meet with government agencies, community organizations, other utilities and law enforcement. 

Ask about potential emergencies and about plans and available resources for responding to them. 

Sources of information include: 

• Community emergency management office 

• Mayor or Community Administrator's office 

• Local Emergency Planning Committee (LEPC) 

• Fire Department 

• Police Department 

• Emergency Medical Services organizations 

• American Red Cross 

• National Weather Service 

• Public Works Department 

• Planning Commission 

• Telephone companies 

• Hazardous material response teams 

• Neighboring businesses 

ILLUSTRATION While researching potential emergencies, one facility discovered that a dam 

50 miles away posed a threat to its community. The facility was able to plan accordingly. 
RUS Bulletin 1730B-2 

Exhibit C 

Page 4 

Identify Codes and Regulations

Identify applicable Federal, State and local regulations such as: 

• RUS regulations 

• Occupational safety and health regulations 

• Environmental regulations 

• Fire codes 

• Seismic safety codes 

• Transportation regulations 

• Zoning regulations 

• Corporate policies 

Identify Critical Products, Services and Operations 

You'll need this information to assess the impact of potential emergencies and to determine the 

need for backup systems. Areas to review include: 

• Lifeline services such as electrical power, water, sewer, gas, telecommunications and 

transportation 

• Products and services provided by suppliers, especially sole source vendors 

• Operations, equipment and personnel vital to continued functioning 

• Company products and services and the facilities and equipment needed to produce them 

Identify Internal Resources and Capabilities 

Resources and capabilities that could be needed in an emergency include: 

• Personnel – law enforcement, hazardous materials response team, emergency medical 

services, security, emergency management group, evacuation team, public information 

officer, fire brigade. 

• Equipment -- fire protection and suppression equipment, communications equipment, 

first aid supplies, emergency supplies, warning systems, emergency power equipment, 

decontamination equipment. 

• Facilities -- emergency operating center, media briefing area, shelter areas, first-aid 

stations, sanitation facilities. 

• Organizational capabilities -- training, evacuation plan, employee support system. 

• Backup systems -- arrangements with other facilities to provide for: 

• Payroll 

• Communications 

• Production 

• Customer services 

• Shipping and receiving 

• Information systems support 

• Emergency power 

• Recovery support 
RUS Bulletin 1730B-2 

Exhibit C 

Page 5 

ILLUSTRATION One way to increase response capabilities is to identify employee skills 

(medical, engineering, communications, foreign language, etc.,) that might be needed in an 

emergency. 

Identify External Resources 

There are many external resources that could be needed in an emergency. In some cases, formal 

agreements may be necessary to define the facility's relationship with the following: 

• Local emergency management office 

• Fire Department 

• Hazardous materials response organization 

• Emergency medical services 

• Hospitals 

• Local, State and Federal law enforcement 

• Community service organizations 

• Utilities 

• Contractors 

• Suppliers of emergency equipment 

• Insurance carriers 

Do an Insurance Review 

Meet with insurance carriers to review all policies. 

Conduct a Vulnerability Analysis 

The next step is to assess the vulnerability of your facility -- the probability and potential impact 

of each emergency. Use an uncomplicated Vulnerability Analysis Chart to guide the process, 

which entails assigning probabilities, estimating impact and assessing resources, using a 

numerical system. In the example Vulnerability Analysis Chart below, the lower the score the

better. 

VULNERABILITY ANALYSIS CHART 

(The lower the total the better) 

Impacts 

High Impact 5 Ù 1 Low Impact 

Resources 

TYPE OF Weak 5 Ù 1 Strong 

EMERGENCY 

Probability 

High 5Ù1 Low Human Property Business Internal External TOTAL 

 

List Potential Emergencies 
RUS Bulletin 1730B-2 

Exhibit C 

Page 6 

In the first column of the Vulnerability Analysis Chart, list all emergencies that could affect your 

facility (ies), including those identified by your local emergency management office. Consider 

both: 

• Emergencies that could occur within your system 

• Emergencies that could occur in your control area and community 

Below are some other factors to consider: 

• Historical -- What types of emergencies have occurred in the community, in your system 

or facility and at other facilities in the area? 

• Severe weather 

• Hazardous material spills 

• Transportation accidents 

• Utility outages 

• Fires 

• Earthquakes 

• Hurricanes 

• Tornadoes 

• Terrorism 

• Geographic -- What can happen as a result of the facility's location? Keep in mind: 

o Proximity to flood plains, seismic faults and dams 

o Proximity to companies that produce, store, use or transport hazardous materials 

o Proximity to major transportation routes and airports 

o Proximity to nuclear power plants 

• Technological -- What could result from a process or system failure? Possibilities 

include: 

o Power failure 

o Fire, explosion, hazardous materials incident 

o Safety system failure 

o Telecommunications failure 

o Computer system failure 

o Heating/cooling system failure 

o Emergency notification system failure 
RUS Bulletin 1730B-2 

Exhibit C 

Page 7 

• Human Error -- What emergencies can be caused by employee error? Are employees 

trained to work safely? Do they know what to do in an emergency? Human error is the 

single largest cause of workplace emergencies and can result from: 

o Poor training 

o Poor maintenance 

o Carelessness 

o Misconduct 

o Substance abuse 

o Fatigue 

• Physical -- What types of emergencies could result from the design or construction of the 

facility? Does the physical facility enhance safety? Consider: 

o The physical construction of the facility 

o Hazardous processes or byproducts 

o Facilities for storing combustibles 

o Layout of equipment 

o Lighting 

o Evacuation routes and exits 

o Proximity of shelter areas 

• Regulatory -- What emergencies or hazards are you regulated to deal with? 

Analyze each potential emergency from beginning to end. Consider what could happen as a 

result of: 

• Prohibited access to the facility 

• Loss of electric power 

• Communication lines down 

• Ruptured gas mains 

• Water damage 

• Smoke damage 

• Structural damage 

• Air or water contamination 

• Explosion 

• Building collapse 

• Trapped persons 

• Chemical release 

Estimate Probability 

In the Probability column of the Vulnerability Analysis Chart, rate the likelihood of each 

emergency's occurrence. This is a subjective consideration. Use a simple scale of 1 to 5 with 1 

as the lowest probability and 5 as the highest. 
RUS Bulletin 1730B-2 

Exhibit C 

Page 8 

Assess the Potential Human Impact 

Analyze the potential human impact of each emergency -- the possibility of death or injury. 

Assign a rating in the Human Impact column of the Vulnerability Analysis Chart. Use a 1 to 5 

scale with 1 as the lowest impact and 5 as the highest. 

Assess the Potential Property Impact 

Consider the potential property for losses and damages. Again, assign a rating in the Property 

Impact column, 1 being the lowest impact and 5 being the highest. Consider: 

• Cost to replace 

• Cost to set up temporary replacement 

• Cost to repair 

ILLUSTRATION The construction of a solid physical barrier at substations or switch yards 

such as a wall could limit the line of sight of expensive and hard to replace equipment and 

reduce the likelihood of damage from projectiles such as bullets. 

Assess the Potential Business Impact 

Consider the potential loss of market share. Assign a rating in the Business Impact column. 

Again, 1 is the lowest impact and 5 is the highest. Assess the impact of: 

• Business interruption 

• Employees unable to report to work 

• Customers unable to reach facility 

• Company in violation of contractual agreements 

• Imposition of fines and penalties or legal costs 

• Interruption of critical supplies 

• Interruption of product distribution 

• Assess Internal and External Resources 

Next assess your resources and ability to respond. Assign a score to your Internal Resources and 

External Resources. The lower the score the better. To help you do this, consider each potential 

emergency from beginning to end and each resource that would be needed to respond. For each 

emergency ask these questions: 

• Do we have the needed resources and capabilities to respond? 

• Will external resources be able to respond to us for this emergency as quickly as we may 

need them, or will they have other priority areas to serve? 
RUS Bulletin 1730B-2 

Exhibit C 

Page 9 

If the answers are yes, move on to the next assessment. If the answers are no, identify what can 

be done to correct the problem. For example, you may need to: 

• Develop additional emergency procedures 

• Conduct additional training 

• Acquire additional equipment 

• Establish mutual aid agreements 

• Establish agreements with specialized contractors or other utilities 

ILLUSTRATION NERC presently maintains a voluntary spare transformer database where 

utilities can submit requests for transformers to temporarily replace damaged transformers in 

cases of emergency need and until a replacement transformer can be delivered. 

Add the Columns 

Total the scores for each emergency. The lower the score the better. While this is a subjective 

rating, the comparisons will help determine planning and resource priorities -- the subject of the 

pages to follow. 

ILLUSTRATION When assessing resources, remember that community emergency workers -- 

police, paramedics, firefighters -- will focus their response where the need is greatest. Or they 

may be victims themselves and be unable to respond immediately. That means response to your 

facility may be delayed and you should have contingencies available. 

STEP 3 -- DEVELOP THE ERP 

You are now ready to develop an ERP. This section describes how. 

PLAN COMPONENTS 

Your plan should include the following basic components. 

Executive Summary 

The executive summary provides management a brief overview of: the purpose of the plan; the 

facility's ERP policy; authorities and responsibilities of key personnel; the types of emergencies 

that could occur; and where response operations will be managed. 

Emergency Management Elements 

This section of the plan briefly describes the facility's approach to the core elements of an ERP, 

which are: 

• Direction and control 

• Recovery and restoration 

• Communications 

• Life safety 

• Property protection 

• Community outreach 
RUS Bulletin 1730B-2 

Exhibit C 

Page 10 

Administration and logistics. 

These element, are the foundation for the emergency procedures that your facility will follow to 

protect personnel and equipment and resume operations. 

Emergency Response Procedures 

The procedures spell out how the utility will respond to emergencies. Whenever possible, 

develop them as a series of checklists that can be quickly accessed by senior management, 

department heads, response personnel and employees. 

Determine what actions would be necessary to: 

• Assess the situation 

• Protect employees, customers, visitors, equipment, vital records and other assets, 

particularly during the first three days 

• Get the business back up and running. 

Specific procedures might be needed for any number of situations such as bomb threats or 

tornadoes, and for such functions as: 

• Warning employees and customers 

• Communicating with personnel and community responders 

• Conducting an evacuation and accounting for all persons in the facility 

• Managing response activities 

• Activating and operating an emergency operations center 

• Fighting fires 

• Shutting down operations 

• Protecting vital records 

• Restoring operations 

• Support Documents 

Documents that could be needed in an emergency include: 

• Emergency call lists -- lists of all persons on and off site who would be involved in 

responding to an emergency, their responsibilities and their 24-hour telephone numbers 

• Building and site maps that indicate: 

• Utility shutoffs 

• Water hydrants 

• Water main valves 

• Water lines 

• Gas main valves 

• Gas lines 

• Electrical cutoffs 

• Electrical substations 

• Storm drains 

• Sewer lines 
RUS Bulletin 1730B-2 

Exhibit C 

Page 11 

• Location of each building (include name of building, street name and number) 

• Floor plans 

• Alarm and enunciators 

• Fire extinguishers 

• Fire suppression systems 

• Exits 

• Stairways 

• Designated escape routes 

• Restricted areas 

• Hazardous materials (including cleaning supplies and chemicals) 

• High-value items 

• Resource lists -- lists of major resources (equipment, supplies, services, etc.,) that 

could be needed in an emergency; mutual aid agreements with other companies and 

government agencies. 

ILLUSTRATION In an emergency, all personnel should know: 

• What is my role? 

• Where should I go? 

ILLUSTRATION Some facilities are required to develop: 

• Emergency escape procedures and routes 

• Procedures for employees who perform or shut down critical operations before an 

evacuation 

• Procedures to account for all employees, visitors and contractors after an evacuation is 

completed 

• Rescue and medical duties for assigned employees 

• Procedures for reporting emergencies 

• Names of persons or departments to be contacted for information regarding the plan 

THE DEVELOPMENT PROCESS

The following is guidance for developing the plan: 

• Identify challenges and prioritize activities 

• Determine specific goals and milestones. 

• Make a list of tasks to be performed, by whom and when. 

• Determine how you will address the problem areas and resource shortfalls that were 

identified in the vulnerability analysis. 
RUS Bulletin 1730B-2 

Exhibit C 

Page 12 

Write the Plan 

Assign each member of the planning group a section to write. Determine the most appropriate 

format for each section. Establish an aggressive timeline with specific goals. Provide enough 

time for completion of work, but not so much as to allow assignments to linger. Establish a 

schedule for: 

• First draft 

• Review 

• Second draft 

• Tabletop exercise 

• Final draft 

• Printing 

• Distribution 

Establish a Training Schedule 

Have one person or department responsible for developing a training schedule for your facility. 

Coordinate with Outside Organizations 

Periodically meet with or call local government agencies and community organizations. Inform 

appropriate government agencies that you are creating an ERP. While their official approval 

may not be required, they will likely have valuable insights and information to offer. 

Determine State and local requirements for reporting emergencies, and incorporate them into 

your procedures. 

Determine protocols for turning control of a response over to outside agencies. Some details that 

may need to be worked out are: 

• Which gate or entrance will responding units use? 

• Where and to whom will they report? 

• How will they be identified? 

• How will facility personnel communicate with outside responders? 

• Who will be in charge of response activities? 

Determine what kind of identification authorities will require to allow your key personnel into 

your facility during an emergency. 

ILLUSTRATION Your emergency planning priorities may be influenced by government 

regulation. To remain in compliance you may be required to address specific emergency 

management functions that might otherwise be a lower priority activity for that given year. 
RUS Bulletin 1730B-2 

Exhibit C 

Page 13 

Maintain Contact with Other Corporate Offices and Utilities 

Communicate with other offices and divisions in your company or others utilities to learn: 

• Their emergency notification requirements 

• The conditions where mutual assistance would be necessary 

• How offices will support each other in an emergency 

• Names, telephone numbers and pager numbers of key personnel 

Incorporate this information into your procedures. 

Review, Conduct Training and Revise 

Distribute the first draft to group members for review. Revise as needed. 

For a second review, conduct a tabletop exercise with management and personnel who have a 

key emergency management responsibility. In a conference room setting, describe an emergency 

scenario and have participants discuss their responsibilities and how they would react to the 

situation. Based on this discussion, identify areas of confusion and overlap, and modify the plan 

accordingly. 

Seek Final Approval 

Arrange a briefing for the chief executive officer and senior management and obtain written 

approval. 

Distribute the Plan 

Place the final plan in three-ring binders and number all copies and pages. Each individual who 

receives a copy should be required to sign for it and be responsible for posting subsequent 

changes. 

Determine which sections of the plan would be appropriate to show to government agencies 

(some sections may refer to corporate secrets or include private listings of names, telephone 

numbers or radio frequencies). Distribute the final plan to: 

• Chief executive and senior managers 

• Key members of the company's emergency response organization 

• Company headquarters 

• Community emergency response agencies (appropriate sections) 

 

Have key personnel keep a copy of the plan in their homes. Inform employees about the plan 

and training schedule. 

ILLUSTRATION Consolidate emergency plans for better coordination. Stand-alone plans, 

such as a Storm Plan, Spill Prevention Control and Countermeasures (SPCC) plan, fire 

protection plan or safety and health plan, should be incorporated into one comprehensive plan. 
RUS Bulletin 1730B-2 

Exhibit C 

Page 14 

STEP 4 -- IMPLEMENT THE PLAN. 

Implementation means more than simply exercising the plan during an emergency. It means 

acting on recommendations made during the vulnerability analysis, integrating the plan into 

company operations, training employees and evaluating the plan. 

INTEGRATE THE PLAN INTO COMPANY OPERATIONS 

Emergency planning must become part of the corporate culture. 

Look for opportunities to build awareness; to educate and train personnel; to test procedures; to 

involve all levels of management, all departments and the community in the planning process; 

and to make emergency management part of what personnel do on a day-to-day basis. 

Test how completely the plan has been integrated by asking: 

• How well does senior management support the responsibilities outlined in the plan? 

• Have emergency planning concepts been fully incorporated into the facility's accounting, 

personnel and financial procedures? 

• How can the facility's processes for evaluating employees and defining job classifications 

better address emergency management responsibilities? 

• Are there opportunities for distributing emergency preparedness information through 

corporate newsletters, employee manuals or employee mailings? 

• What kinds of safety posters or other visible reminders would be helpful? 

• Do personnel know what they should do in an emergency? 

• How can all levels of the organization be involved in evaluating and updating the plan? 

CONDUCT TRAINING, DRILLS AND EXERCISES 

Everyone who works at or visits the facility requires some form of training. This could include 

periodic employee discussion sessions to review procedures, technical training in equipment use 

for emergency responders, evacuation drills and full-scale exercises. Below are basic 

considerations for developing a training plan. 

• Planning Considerations 

Assign responsibility for developing a training plan. Consider the training and 

information needs for employees, contractors, visitors, managers and those with an 

emergency response role identified in the plan. 

Determine for a 12 month period: 

o Who will be trained? 

o Who will do the training? 

o What training activities will be used? 

o When and where each session will take place? 

o How the session will be evaluated and documented? 
RUS Bulletin 1730B-2 

Exhibit C 

Page 15 

Consider how to involve community responders in training activities. Conduct reviews 

after each training activity. Involve both personnel and community responders in the 

evaluation process. 

• Training Activities 

Training can take many forms: 

o Orientation and Education Sessions -- These are regularly scheduled discussion 

sessions to provide information, answer questions and identify needs and 

concerns. 

o Tabletop Exercise -- Members of the emergency management group meet in a 

conference room setting to discuss their responsibilities and how they would react 

to emergency scenarios. This is a cost-effective and efficient way to identify 

areas of overlap and confusion before conducting more demanding training 

activities. 

o Walk-through Drill -- The emergency management group and response teams 

actually perform their emergency response functions. This activity generally 

involves more people and is more thorough than a tabletop exercise. 

o Functional Drills -- These drills test specific functions such as medical response, 

emergency notifications, warning and communications procedures and 

equipment, though not necessarily at the same time. Personnel are asked to 

evaluate the systems and identify problem areas. 

o Evacuation Drill -- Personnel walk the evacuation route to a designated area 

where procedures for accounting for all personnel are tested. Participants are 

asked to make notes as they go along of what might become a hazard during an 

emergency, e.g., stairways cluttered with debris, smoke in the hallways. Plans are 

modified accordingly. 

o Full-scale Exercise -- A real-life emergency situation is simulated as closely as 

possible. This exercise involves company emergency response personnel, 

employees, management and community response organizations. 

• Employee Training 

General training for all employees should address: 

o Individual roles and responsibilities 

o Information about threats, hazards and protective actions 

o Notification, warning and communications procedures 

o Means for locating family members in an emergency 

o Emergency response procedures 

o Evacuation, shelter and accountability procedures 

o Location and use of common emergency equipment 

o Emergency shutdown procedures 

The scenarios developed during the vulnerability analysis can serve as the basis for 

training events. 
RUS Bulletin 1730B-2 

Exhibit C 

Page 16 

ILLUSTRATION OSHA training requirements are a minimum standard for many facilities 

that have a fire brigade, hazardous materials team, rescue team or emergency medical response 

team. 

• Evaluate and Modify the Plan 

Conduct a formal audit of the entire plan at least once a year. Among the issues to 

consider are: 

o How can you involve all levels of management in evaluating and updating the 

plan? 

o Are the problem areas and resource shortfalls identified in the vulnerability 

analysis being sufficiently addressed? 

o Does the plan reflect lessons learned from drills and actual events? 

o Do members of the emergency management group and emergency response team 

understand their respective responsibilities? Have new members been trained? 

o Does the plan reflect changes in the physical layout of the facility? Does it reflect 

new facility processes? 

o Are photographs and other records of facility assets up to date? 

o Is the facility attaining its training objectives? 

o Have the hazards in the facility changed? 

o Are the names, titles and telephone numbers in the plan current? 

o Are steps being taken to incorporate emergency management into other facility 

processes? 

o Have community agencies and organizations been briefed on the plan? Are they 

involved in evaluating the plan? 

In addition to a yearly audit, evaluate and modify the plan at these times: 

o After each training drill or exercise 

o After each emergency 

o When personnel or their responsibilities change 

o When the layout or design of the facility changes 

o When policies or procedures change 

Remember to brief personnel on changes to the plan.