January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 113 of 684Service Commission. The NYISO notes that because " ... renewable resources are bytheir nature intermittent and have varying locations, increasing their integration into theelectric system will require close monitoring and control of system dynamics.” TheProject will enhance the NYISO's ability to continue to monitor the operation of the NewYork power grid in a reliable manner as increasing numbers of renewable resources arebrought online. The capacitor project itself is expected to improve transfer capability,reduce system losses, improve voltage control, and free up dynamic reactive supplyfrom rotating generators for use during system contingencies and significantly improvethe reliability of the New York bulk power system.Customer Benefits:While this project is regulatory driven, capacitor installation is in-line with the drivers ofthe transmission system Northeast Region Reinforcement Project. 11 The project calls forcapacitor installations to address inadequate thermal performance and improve reliabilityin the transmission system. While this project is not directed at specific inadequatethermal issues, capacitors will improve the overall thermal performance of the system.This project will result in reliability improvement through improved transmission systemvoltage profile, increased generator MVAr reserve, and increased interface transferIimits.11 "Northeast Region Reinforcement Project" SG097 - Projects C18250, C18253, CNYX39, andCNYPL6.IV-37 37114