January 2012 Capital Investment - National Grid

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Exhibit ___ (EIOP-19)Page 37 of 684Table II-11Transmission – 3A/3B Tower StrategyProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 .04 .03 0.0 0.1 6.1 - 6.32012 - 0.0 0.0 0.0 0.0 0.0 0.0Relay Replacement StrategyProtective relays are maintained in accordance with Company substation maintenancestandards and NERC or NPCC requirements, where applicable. Overall the populationof approximately 4,000 relay packages remains adequate but approximately 6% of thepopulation requires investment based on their condition, performance or obsolescence.The program will commence by replacing the worst 6% of the relays over the next eightyears. Beyond that, studies and pilot programs will be initiated to explore the mostefficient and cost effective approach to addressing the remaining population. The longtermobjective is to have an asset management approach that allows a morecommoditized approach to relay replacement. This approach will be necessary formodern microprocessor relays that are expected to have only 15 to 20 year asset lives.Strategy SG157 (C34690), approved in late 2010, identifies relay replacementcandidates based on historical performance (relay models from the same manufacturerwith known performance issues) or obsolescence where parts and technical support areno longer available. The sanctioned scope included the replacement of about 245 highpriority relay packages, 18 communication packages and 7 control houses over the nextsix years 11 , however, to reduce the costs of the Plan, the replacement period has beenextended a further two years. The conceptual funding level (-25%/+50%) for this projectis expected to be $55 million. This project represents the first phase of the multi-year“NY protection and control replacement” project. Specific projects are being engineeredand will be sanctioned in due course. As a result of deferral of $125 million associatedwith the substation rebuild program beyond the five-year period of this Plan in 2011, theCompany will be reevaluating whether the scope of the relay replacement programshould be revised.Drivers:This strategy ensures that reliable protective relay systems are in place to preserve theintegrity and stability of the transmission system following a fault. This strategy isneeded now because properly functioning protective relays are essential for rapidisolation of faults on the system thus protecting customers from potential outages andprotecting equipment from damage.Customer Benefits:Properly functioning elements of relay protection schemes limit the extent and durationof outages. Further, the protection system is designed to protect high value assets11 For the list of specific relays, sites and timescales please refer to Strategy paper SG157II-2038
Exhibit ___ (EIOP-19)Page 38 of 684against failure in the event of system anomalies thereby reducing the potentialinvestment needed to recover from an event. The primary benefit of this strategy will beto maintain the reliability performance of the system and customer satisfaction as knownpoor performing relay families are replaced with modern microprocessor based relays.The new microprocessor based relays will also yield additional operational data that wasnot previously available, allowing better analysis of system failures to preventreoccurrences which will improve overall system performance for the benefit ofcustomers. With the availability of real time data, future applications can be developedsuch that more of the transmission system can be automated and designed to respondautomatically to system events. The speed of data acquisition and analysis also presentsystem operators with a better understanding of system anomalies andrecommendations for remedial actions. For example, distance-to-fault data (DTF) canidentify fault location with greater accuracy than currently possible. Accurate DTF datahas the potential to reduce O&M costs since less effort will be required to patroloverhead lines after a fault. In addition, this data will be brought back to the controlcenter for use by operations and engineering personnel to ensure the root causes offaults are identified to prevent recurrences.2011 to 2012 Variance:The difference between the 2011 and 2012 Plans is due to the project being re-phasedfor inclusion in the Plan as poorly performing relay protection presents an unacceptablerisk to the reliable operation of the system.Table II-12Transmission Relay Replacement StrategyProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 0.7 3.7 5.1 5.6 5.5 - 20.62012 - 1.3 8.6 11.4 14.7 16.9 52.9U Series Relay StrategyThe Westinghouse U series line of relays was introduced in the early to mid 1970s andproduction and support for these relays ceased in the mid 1980s. Westinghouse Useries relays are installed on a number of important 345kV lines. The replacement ofthese relays with new technology presents significant advantages such as enhancedreliability, improved protection schemes and the ability to record operational data forsystem performance analysis. There were four different projects within this programincluding replacing relays at the Oswego, Elbridge, Lafayette, Rotterdam, New Scotland,Leeds and Edic Stations (C05150, C24661, C24662 and C24663 respectively).Drivers:Replacement parts and support for the Westinghouse U Series Relays are no longeravailable making continued maintenance of these devices difficult. Spare parts removedII-2139
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January 2012 Capital Investment - National Grid

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