January 2012 Capital Investment - National Grid

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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
Exhibit ___ (EIOP-19)Page 114 of 684IV E. Non-InfrastructureThis spending rationale includes items that do not fit into the previous four categories butare necessary for the operation of the distribution system. They include capitalized toolssuch as micro-processor based relay test equipment and SF6 gas handling carts. Inaddition, radio system expansion and upgrade projects across the system are includedin this spending rationale.Drivers:Specialized tools are required by Operations personnel to perform equipmentmaintenance and complete capital projects. Radio communication systems upgradesand replacements are necessary for real time communications while performingswitching and for other operational needs.Customer Benefits:The proper tools allow Operations personnel to work safely and efficiently thus reducingoverall costs. Radio communications promote personnel safety by allowing the controlcenters to direct Operations personnel during field switching. In addition, timelycommunications allow a coordinated response to interruptions thereby limiting customerinterruption durations.2011 to <strong>2012</strong> Variance:The projected investment is shown in the table below.Table IV-28Non-InfrastructureVariance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 4.4 4.5 4.6 4.7 4.8 - 22.9<strong>2012</strong> - 4.7 4.7 5.8 5.3 5.1 25.7IV-38 38115
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January 2012 Capital Investment - National Grid

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