January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 78 of 684IV A. Statutory or RegulatoryStatutory or Regulatory investment levels are based primarily on review of historicalblanket spending and forecasted spending on known specific work. These estimatesreflect consideration given to inflation, estimates of materials, labor, indirect cost, marketsector analysis, overall economic conditions and historical activity.The variance between the 2011 Plan and this year’s Plan for blanket spending is basedlargely on spending trends during the recent economic downturn and an expectation of aslow recovery. This is most notable in the new business residential and new businesscommercial blankets. The planned spending in this rationale forecasted in the 2012Plan and the 2011 Plan are set forth below.BlanketsSpecific ProjectsTable IV-2Statutory or RegulatoryVariance Summary ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 85.5 90.5 95.3 101.3 105.2 - 477.92012 - 87.0 91.3 96.6 100.9 104.2 480.02011 18.6 11.2 10.6 11.2 11.4 - 62.92012 - 17.4 17.2 17.8 18.3 18.5 89.2Inspection and 2011 29.0 25.1 22.1 20.0 18.5 - 114.6Maintenance 2012 - 36.7 29.2 20.6 20.6 20.6 127.8Total2011 133.8 128.2 129.4 134.1 136.6 - 662.22012 - 141.1 137.6 135.1 139.8 143.3 697.0IV-2 279