January 2012 Capital Investment - National Grid

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Exhibit ___ (EIOP-19)Page 27 of 684• The target RTUs and equipment are obsolete and in most cases no longersupported by the manufacturer. Replacement parts are either difficult to obtainor unavailable. 8 Failure of an RTU may be un-repairable, requiring a completeunplanned replacement on short notice. This situation could occur when datafrom the failing RTU is most critical, such as during system events, resulting inreduced reliability performance.• Test equipment is obsolete and cannot be readily obtained or maintained. ThePC based test equipment required for maintenance was acquired in the early1990s and uses a DOS software platform. Both the RTUs and test sets utilizethe M9000s communication protocol. This protocol is the legacy protocol of theoriginal Energy Management System (“EMS”) and cannot be upgraded to becompatible with the planned EMS system replacement.• The target RTUs are not suitable for future integration of new substation devicesand technology. The equipment does not have and cannot be modified toprovide the capabilities required for modern supervisory control and dataacquisition. 9 This type of functionality is becoming standard to meet currentreliability needs.Customer Benefits:The new RTUs will provide more timely and reliable data than their predecessors. In theevent of a system disturbance, accurate data received in a timely manner is a necessityin the customer restoration process. Data received from the new RTUs will quicklyidentify key devices that have failed or have been affected by the event. The data willexpedite isolation of the problem, reduce the duration of the outage and in some casesavoid expansion of the outage to other system components.Furthermore, if obsolete RTUs are not replaced, they will not be able to communicatewith the new Energy Management System which would then prevent the requiredmodern supervisory control and data acquisition of the transmission system from takingplace. This type of functionality is required to meet the reliability needs of customers.2011 to 2012 Variance:Generally the targeted RTU replacements have been delayed due to both the difficulty inoutage scheduling and the length of time necessary to install the digital communicationcircuitry needed for the new RTUs. Between 2006 and 2010 the Company has invested$13.8 million on the replacement of obsolete RTU equipment. The average cost perinstallation is $147,000 for a transmission RTU. The project is now expected to becompleted in FY13. Final engineering on the remaining 25 is in process.Table II-5Transmission – Remote Terminal Unit Replacement StrategyProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 2.3 3.9 3.3 3.3 0.5 - 13.32012 - 3.9 0.0 0.0 0.0 0.0 3.98 SG002 – Revised Asset Replacement Strategy for RTUs, October 31, 2005.9 SG002 – Revised Asset Replacement Strategy for RTUs, October 31, 2005.II-1028
Exhibit ___ (EIOP-19)Page 28 of 684NYISO Interconnection Meter Investment ProgramThere are approximately 230 NYISO reportable points in New York State for whichNational Grid is the metering authority. These reportable points include generation pointsand transmission tie line points between zone and sub-zones in the NYISO that arerequired to settle commodity charges between market participants. The meter authorityis responsible for meter accuracy and the transmission of meter data in accordance withthe NYISO meter standards, tariff and Transmission Owners agreement. Meteringauthority responsibilities also include the calibration, repair, and maintenance of themetering circuits at these points. Documentation and reporting of compliance concerningthe performance of these responsibilities is also required, and to be made available onrequest by the NYISO or other market participants. These requirements are mandatesand are specified in the NYISO Revenue Metering Requirements Manual (Manual 25)and the NYISO Control Center Policies and Procedures Manual that National Grid isbound to follow based on our Transmission Owner Agreement with the NYISO.Drivers:Compliance with the NYISO’s requirement for revenue grade metering circuits at all ISOreportable points.Customer Benefits:The use of revenue grade meters at zone and sub-zone points is necessary forsettlement purposes as to not adversely affect the competitive energy market, which ishighly dependent on accurate and timely information for success.2011 to 2012 Variance:A sanction paper with updated cost estimates was completed in November 2011. Thisproject was not presented in detail in the 2011 Plan.Table II-6Transmission – Interconnection Meter Investment ProgramProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 0.5 0.0 0.0 0.0 0.0 - 0.52012 - 5.1 3.2 0.0 0.0 0.0 8.3B. Damage/Failure Strategies and ProgramsDamage/Failure category projects are those capital expenditures required to replacefailed or damaged equipment and to restore the electric system to its originalconfiguration and capability following equipment damage or failure. Damage may beII-1129
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January 2012 Capital Investment - National Grid

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