January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 79 of 684Blanket ProgramsThe distribution Statutory or Regulatory blankets include items such as New BusinessResidential, New Business Commercial, Outdoor Lighting, Public Requirements,Transformer Purchase and Installation, Meter Purchase and Installation, Third PartyAttachments, and Land Rights. Exhibit 3 shows the detailed investment for all blanketsin this rationale. Blankets are described in more detail below:Transformer PurchaseTransformers are purchased and are shipped to locations within the Company wherethese items are put into stores.New Business ResidentialInstallation of new overhead or underground services to residential customers,reconnections as well as miscellaneous equipment related to providing or upgradingservices based on customer requests. Project spending can also include costs for theextension of distribution feeders directly related to providing service to a new residentialcustomer or development; and actual spending is net of any CIAC contribution.New Business CommercialInstallation of new services to commercial customers, reconnections as well asmiscellaneous equipment related to providing or upgrading services based on customerrequests. Project spending can also include costs for the extension of distributionfeeders directly related to providing service to a new residential customer ordevelopment; and actual spending is net of any CIAC contribution.Public RequirementsOverhead and underground facilities relocations resulting from bridge or roadwayrebuilds, expansions, or relocations;Municipality requests to relocate overhead facilities underground;Other public authorities requesting or performing work that requires equipment orfacilities to be relocated.Public Outdoor LightingInstallation and removal of street lighting or private area lighting and related equipment.IV-3 380