January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 68 of 684Sub-Transmission AutomationIn a continuing effort to modernize the grid the Sub-Transmission Automation Strategyencompasses advanced distribution automation methodologies as well as SCADA forreclosers, fault locators, and switches; and the interface of distribution automationenabled line devices with substation feeder breakers. It also encompasses thecommunication of these devices with each other and to central operations centers anddatabase warehouses. The Company often refers to such devices and communicationstechnology as Advanced Grid Applications.Drivers:Following the success of pilot automation installations in 2008 and 2009, which verifiedthe capability of advanced distribution automation enabled equipment, the Companyrecognized the additional benefit of identifying projects where the installation ofmodernized switching schemes would provide increased reliability to the subtransmissionsystem.The number of Advanced Grid Application switches per circuit or installation will varydepending on the number of substations the circuit supplies, the desired segmentation ofthe line, and the configuration of the supply system. Many of the automation schemesare unique in nature and are developed considering an analysis of expected costs andbenefits.Customer Benefits:Distribution lines or substations not equipped with automated sectionalizing or throwover schemes may be subject to extended service interruptions as Operations personnelmust travel to the field locations to perform switching. This program provides anopportunity to continue to modernize the grid for the benefit of customers by reducingthe number of customer interruptions that result from a given contingency and the timerequired to reconfigure the system to restore service to as many customers as possiblewhile a faulted section of the system is being repaired.2011 to 2012 Variance:The projected investment is shown in the table below and the current forecast is basedon individual project estimates through FY15 and an expectation to continue thisprogram throughout the plan horizon. The prioritization of projects and the timing of theirimplementation will be based on the performance of the various individual circuits.Table III-8Sub-Transmission AutomationProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 1.4 1.8 2.6 2.9 3.0 - 11.72012 - 2.0 3.7 2.9 3.0 3.0 14.6The following specific project will exceed $1 million:• Project C35866, DA - NC Sub-Transmission Auto Lines 21/23/26. This projectprovides for sub-transmission automation in the form of sectionalizing viaIII-10 1069