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January 2012 Capital Investment - National Grid

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Exhibit ___ (EIOP-19)Page 73 of 684Underground CableVarious projects are in place to refurbish or replace sub-transmission undergroundassets to ensure the system continues to perform in a safe and reliable manner.Drivers:Failures of individual sub-transmission cables do not typically impact customer reliabilitysince the portions of the system where they are utilized are generally networked.However, because these systems are located below ground and are out of sight, failuresof underground sub-transmission cables can be difficult to locate and time-consuming torepair leaving the system at riskAs noted in the 2011 Asset Condition Report, there are approximately 1,100 miles ofsub-transmission underground cable. Approximately one-half are more than 47 yearsold and one-third are more than 60 years old. The sub-transmission underground cableasset replacement program replaces cables that are in poor condition, have had ahistory of failure or of a type known to have performance issues. Given the timerequired to design and plan large scale cable replacement projects it is advisable tobegin a replacement program.Customer Benefits:Through a proactive approach, cable replacement projects reduce the likelihood of cablefailures, and resulting exposure to the risk of extended outages.2011 to <strong>2012</strong> Variance:The projected program investment is shown in the table below. The decreased levels ofsub-transmission underground cable funding reflects recognition of the complexity of theunderground cable replacement work and the high concentration of work required in theWestern Division resulting in resource and outage constraints.Table III-11Underground CableProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 5.2 6.8 4.7 7.3 8.0 32.0<strong>2012</strong> - 2.1 1.9 3.2 2.9 1.4 11.6Not represented in the investment forecasts in the table above are four cablereplacement projects C28892, Buffalo 23kV Reconductor - Huntley; C28893, Buffalo23kV Reconductor - Huntley2; C28903, Buffalo 23kV Reconductor - Kens2; andC28894, Buffalo 23kV Reconductor - Kensington. These planned projects are includedin the forecasts for spending in the System Capacity and Performance SpendingRationale, in the Capacity Planning program, because they were also driven by loadingissues.III-15 1574

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