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January 2012 Capital Investment - National Grid

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Exhibit ___ (EIOP-19)Page 88 of 684Remote Terminal Unit (RTU)This strategy covers the addition of Remote Terminal Units (RTUs) and relatedinfrastructure at substations presently lacking remote monitoring and control capabilities.RTUs in substations communicate with the EMS (Energy Management Systems) andprovide the means to leverage substation data that provide operational intelligence andsignificantly reduce response time to abnormal conditions through real time monitoringand control.There is also a significant investment in replacing outdated RTUs based on their assetcondition. That investment is documented in the Asset Condition spending rationalesection, and in Chapter II in the Statutory and Regulatory spending rationale section.Drivers:RTUs will allow for remote operation and management of the system at these stationsproviding benefits in contingency response and recovery and thus improvingperformance and reliability. In addition, RTUs are key components of automation andmodernization of the Company’s infrastructure.Customer Benefits:This strategy provides the means to leverage operational intelligence and significantlyreduce response time to abnormal conditions through real time monitoring and control.The strategy also enables the distribution automation, sub-transmission automation, andfuture modernization strategies which will improve service to customers. When used tomonitor and control the distribution feeder breakers and associated feeder equipment,RTUs and EMS facilitate the isolation of faulted equipment and the time required toreconfigure the distribution system to re-energize customers in non faulted segments ofthe distribution system. This switching flexibility improves the expected averagecustomer outage duration (CAIDI) when compared with a similar feeder that is notequipped with these facilities.2011 to <strong>2012</strong> Variance:The projected investment is shown in the table below. The variance below is based alevelized expansion program year on year.Table IV-8Remote Terminal UnitProgram Variance ($millions)CIP FY12 FY13 FY14 FY15 FY16 FY17 Total2011 2.9 2.8 4.4 4.4 4.4 - 18.9<strong>2012</strong> - 2.8 2.8 2.7 2.7 2.7 13.5IV-12 1289

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