This paper proposes methods of securing Smart Grid system against various types of cyber threats by separating AMI networks from the public network, the Internet, and providing an AMI specific authentication framework. Due to the fact that thousands and millions of AMI devices to be deployed would be directly or indirectly connected to the public network without any authentication procedures for access control, currently being developed AMI architectures could be widely exposed to considerable number of penetrating attacks. Furthermore, there have not been a sufficient number of researches on authentication frameworks with basis on the specific circumstances of AMI networking that should support varied authentication protocols among security associations and AMI linking devices. This work makes a proposal of isolating smart meters from HAN devices and the Internet and integrating network/application level authentication frameworks with an EAP-based authentication architecture. These approaches are beneficial to deploy AMI with security and efficiency.