January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 64 of 684III B. Damage/FailureThe Damage/Failure investment level for the sub-transmission system is primarily basedon historical actual costs for such work. Where condition renders the asset unable toperform its intended electrical or mechanical function on the delivery system, theCompany initiates the timely replacement of such asset under the Damage/Failurespending rationale. Comparison of the sub-transmission Damage/Failure investmentlevels from the 2011 Plan and the 2012 Plan are set forth in Table III-5 below.2011 to 2012 Variance:The variance between the 2011 Plan and this year’s Plan is based on recent historicalspending.Table III-5Damage/FailureVariance Summary ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 3.5 2.9 3.1 3.1 3.2 - 15.82012 - 4.0 3.6 3.8 3.9 4.1 19.5III-6 665