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Power distribution system cyber-security concerns are increasing rapidly with growing demands for open accesses to the distribution systems for electricity generation and trading imposed by new government deregulations. This paper proposes a new integrated network security protocol layer, located below the data-link layer of DNP3 - a popular utility protocol, to enhance the data transmission cyber-security for power distribution systems. The security layer utilizes distribution system characteristics to provide comprehensive security while maintaining virtually no impact on the existing DNP3 specification. The proposed security layer provides end-to-end security and link security through encryption, authentication, and padding operations. 'Recipe' formats, with independent cipher and authentication, are designed for the security layer operations to increase flexibility, coverage and quality of service capabilities of the security layer and to provide rapid responses for changes in cyber-security threats in the power distribution systems. This paper describes its significant applications in distribution system stability controls.