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January 2012 Capital Investment - National Grid

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Exhibit ___ (EIOP-19)Page 41 of 684Drivers:Battery and charger systems are critical components that are needed to ensuresubstation operational capability during both normal and abnormal system conditions. Along term Battery Replacement Strategy Paper was approved by the Company in 2009.Battery systems will now have a planned replacement schedule or as condition warrantsbased on periodic testing. Not adopting a planned replacement approach for batterysystems may, in the longer term, lead to failures of interrupting devices to trip in theevent of a fault and extended fault duration on the power system with the consequentialpossibility of system instability. Common end of life failure modes are positive gridcorrosion and electrolyte dilution. These failure modes are inherent in the design,inevitable and irreversible. 12Customer Benefits:This program provides for the proactive replacement of battery systems at end of theirexpected life based on industry data and Company experience, minimizing the risk ofbattery system failure. A battery system that does not perform adequately could result inserious reliability consequences, including over-tripping of the system for a fault, thusimpacting customers.2011 to <strong>2012</strong> Variance:This is a recurring program that will replace station batteries and chargers that are over20 years old or as condition dictates. The program is proceeding as expected with nomajor variances expected.Table II-15Transmission – Substation Battery ReplacementProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 0.6 0.6 0.6 0.6 0.6 - 3.0<strong>2012</strong> - 0.6 0.6 0.6 0.6 0.6 3.0Shield Wire Replacement StrategyThis program concerns the replacement of shield wire on 115 kV transmission lines. Theoverhead assets targeted by this program are referenced in the 2011 Asset Conditionreport 13 . Four remaining projects within this program remain; the Huntley–-Gardenville38-39 project (C28676), the Gardenville-Buffalo 145-146 project (CC28683) which is12 David Linden and Thomas B Reddy, Handbook of Batteries, McGraw-Hill, New York, 200213 Report on the Condition of Physical Elements of Transmission and Distribution Systems, 06-M-0878, October 1, 2011, pg. II-21.II-2442

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