January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 80 of 684Inspection and MaintenanceIn this program, the Company performs visual inspections on all overhead andunderground distribution assets once every five years. Each inspection identifies andcategorizes all necessary repairs, or asset replacements, against a standard and interms of criticality to improve customer reliability in compliance with the Commission’sSafety Order in Case 04-M-0159. 2The Company also performs annual elevated voltage testing per the Commission’sSafety Order on all facilities that are capable of conducting electricity and are publiclyaccessible, such as street lights. The Inspection and Maintenance program wasexpanded to absorb and/or replace asset replacements that were previously included inprior programs such as: feeder hardening, manholes and vaults, oil fused cutouts, woodpoles, miscellaneous overhead and miscellaneous underground.2011 to 2012 Variance:Current investment forecasts are based on actual expenditures being incurred with theon-going Inspection and Maintenance program and an expectation that the number ofdefects found in future year inspections will decrease as the inspection cycle repeats.Table IV-3Inspection and MaintenanceProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 29.0 25.1 22.1 20.0 18.5 - 114.62012 - 36.7 29.2 20.6 20.6 20.6 127.8Mercury Vapor Street Light ReplacementThis program has been discontinued after further analysis in response to considerationsraised in Case 10-E-0050. 32 Case 04-M-0159, Proceeding on Motion of the Commission to Examine the Safety of ElectricTransmission and Distribution Systems, Order Adopting Changes in the Electric Safety Standards(issued and effective Dec. 15, 2008) (“Safety Order”).3 Case 10-E-0050, In the Matter Of Niagara Mohawk Power Corporation d/b/a National Grid,Prepared Testimony of Staff Infrastructure Panel, page 118.IV-4 481