January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 9 of 684I B. Investment by SystemFollowing is a summary of planned investment by system. Chapters II, III and IV detailthe transmission, sub-transmission and distribution system spending, respectively.Transmission System SummaryThe transmission system consists of approximately 6,000 miles of transmission line, 313transmission substations, more than 500 large power transformers and over 700 circuitbreakers at operating voltages above 69kV. Over the five year period covered by thisPlan, the Company expects to invest approximately $772 million on the transmissionsystem, as shown in Table I-4 below. Of this investment, 35% ($271.4 million) isrequired for mandatory projects in the Statutory or Regulatory and Damage/Failurecategories and a further 65% ($499 million) is required to replace existing assets tomaintain the reliability of the system. It should be noted that the Statutory or Regulatoryspending rationale has a significant downward trend due to the completion of specificmajor projects. However, spend may increase significantly if NERC approves a pendingmeasure to classify certain transmission assets above 100kV as Bulk Electric System asdescribed in Chapter II.Table I-4Transmission System Capital Expenditure by Spending Rationale ($millions)Rationale FY13 FY14 FY15 FY16 FY17 TotalStatutory orRegulatory63.6 68.5 46.9 18.3 13.3 210.6Damage/Failure 13.8 14.7 10.6 10.5 11.1 60.8System Capacityand Performance13.0 13.3 17.0 38.4 45.6 127.2Asset Condition 40.2 48.6 85.4 97.8 99.9 371.8Non-Infrastructure1.5 0.0 0.1 0.1 0.0 1.6Total 132.0 145.0 160.0 165.0 170.0 772.0I-710