January 2012 Capital Investment - National Grid

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Exhibit ___ (EIOP-19)Page 23 of 684straight bus design will require less total bus work to be installed and will avoid the needto expand the substation yard to accommodate a breaker-and-a-half configuration.Thus, considerable CAPEX savings will be realized. The current construction sequencehas the project completing the 115kV work by FY16 prior to the 230kV work. The 230kVwork is expected to be completed beyond the time frame of this five year Plan.Table II-3Transmission – Substation Compliance UpgradesProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 15.6 18.2 21.0 9.0 8.1 - 71.92012 - 13.9 22.2 12.3 0.8 0.0 49.3Conductor Clearance StrategyOn October 7, 2010 a NERC Alert (Recommendation to Industry: Consideration ofActual Field Conditions in Determination of Facility Ratings) was issued stating that:“NERC and the Regional Entities have become aware of discrepanciesbetween the design and actual field conditions of transmission facilities,including transmission conductors. These discrepancies may be bothsignificant and widespread, with the potential to result in discrepancies inline ratings. The terms “transmission facilities” and “transmission lines” asused herein include generator tie lines, radial lines and interconnectionfacilities.”All recipients of the NERC Alert were required to review their current Facility RatingsMethodology for their solely and jointly owned transmission lines to verify that themethodology used to determine facility ratings is based on actual field conditions. TheCompany believes our current program will be sufficient to address NERC’s concern onthis issue. However, as more information is reviewed by NERC, they could imposefurther requirements on the industry.In response to this alert, strategy SG163 (Conductor Clearance Program for the A-10Bulk System) was approved on June 30, 2011. This presently impacts about 65transmission circuits in New York including most 345 kV and 230 kV lines, as well as anumber of 115 kV transmission lines. This program is expected to be completed by theend of FY13.The conductor clearance correction program will increase the clearance of certainoverhead conductors to address locations that may not meet clearance standardsprescribed by the National Electrical Safety Code (NESC) under certain loadingconditions. The need for greater clearances has been identified as a result of an ongoingAerial Laser Survey (ALS), also known as LiDAR for Light Detection and Ranging, beingconducted on the transmission system. Clearances are in the process of beingmeasured with aerial surveys providing an accuracy which was previously available byground inspection only.II-624
Exhibit ___ (EIOP-19)Page 24 of 684The code requirements vary depending on when the transmission line went into service.Clearance projects will be prioritized based upon NERC requirements. This is alsoexpected to enhance public safety by assuring appropriate codes are met.Drivers:The primary driver for this work is the October 7, 2010 NERC Alert referred to above aswell as the safety of both the public and Company personnel as they work and travelunder the overhead lines. The NESC sets required conductor clearances of overheadlines from the ground and other ground based objects. The NERC Alert places areliability driver on a portion of this work. This program assures that transmission linesmeet the governing National Electrical Safety Code (NESC) under which they wereconstructed by improving ground to conductor clearances in substandard spans. Thisfollows standard industry practice and a Public Service Commission Order (Case 04-M-0159, effective January 5, 2005) that the Company shall adhere to the NESC.Customer Benefits:While safety events caused by substandard clearance conductors are rare, theirconsequences can be very serious and are difficult to quantify. Application of the NESCcriteria provides a reasonable means to manage the issue and mitigate the risk fromsuch events.2011 and 2012 Variance:The Company has focused solely on conductor clearance issues on bulk power lines inresponse to the NERC Alert in FY12 and FY13 which has lead to a reduction in ourplanned investments in FY13 and FY14 from the prior Plan under Strategy SG029(Overhead Line Ground Clearance Improvements). Clearance projects under SG029will resume in FY14.Table II-4Transmission – Conductor Clearance StrategyProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 9.2 10.6 10.0 15.0 15.0 - 59.82012 - 5.9 7.3 15.4 15.0 15.0 58.6BES 100kV BrightlineInvestments in FY13 and beyond will potentially be impacted by NERC plans toimplement a program to redefine circuits rated at 100kV such that they will become partof the Bulk Energy System (BES). Once this definition is officially issued, the industrywill have a limited time to bring these circuits into conformance with NERC requirement.The definition is likely to be officially issued sometime in 2012. However, because thedefinition is not yet firm, the Company has not entered specific line items into the planrelated to this definition change. The implementation plan submitted by NERC includes aII-725
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January 2012 Capital Investment - National Grid

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