January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 22 of 684standard two-transformer bank Eastover Road substation layout. This analysisdetermined that the new Eastover Road substation with a ring bus layout and a single230/115kV bank was still superior to other solutions that did not involve the addition ofEastover Road substation. However, the reduced scale of the initial Eastover Roadsubstation layout allows for initial CAPEX savings while still allowing for expansion of thesubstation to two banks as warranted by future load growth in the area. The latter needis expected to occur beyond the time frame of this five year Plan.Table II-2Transmission – Northeast Region ReinforcementProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 19.5 50.1 52.1 19.8 5.7 - 147.22012 - 41.9 44.4 24.3 8.6 9.0 128.1Substation Compliance UpgradesThis program relates to the need to upgrade the Clay 115kV (C28705) and Porter 115kV(C28686) substations to meet recently applicable NPCC criteria. The applicability of theNPCC criteria to these two stations has been confirmed by the New York ISO; therefore,investments are required to comply with the relevant NPCC requirements. 4Drivers:In accordance with NPCC criteria adopted in April 2007, testing of major substationsacross New York State was performed by the NYISO. The results indicate that Clay andPorter 115 kV substations as facilities that are required to be brought into compliancewith specific NPCC design, protection and operation requirements.Customer Benefits:In addition to compliance with NPCC and NYSRC requirements, the benefits ofcompleting these projects are reductions in system vulnerability to certain severecontingencies identified in system studies. Customers throughout central New York willbenefit from reduced vulnerability of the transmission system to such contingencies.2011 to 2012 Variance:The scope of work for the Clay 115kV project has become better defined as the projectmoved through preliminary engineering into final design and more accurate estimateswere established.In 2010, the project at Porter was re-phased and broken out into 115 and 230kVportions. A breaker-and-a-half configuration was initially proposed, but further analysisdetermined that a 115kV straight bus design could be utilized by rebuilding in place. A4 This program was discussed in more detail in Appendix 1, Attachment 4 of the April 21, 2009Petition to Defer Electric Transmission & Distribution Investment Costs (Case 07-E-1533).II-523