January 2012 Capital Investment - National Grid

Exhibit ___ (EIOP-19)Page 94 of 684National Grid has developed a planning approach to be followed when considering theuse of Advanced Grid Applications within specific portions of its distribution system. Assuch, with the selection of a candidate location (group of feeders and/or substations),specific project scope and cost estimates can be developed. However, performancemetrics and benefits monitoring of actual installations are still required and will ultimatelyfeed into and refine our expansion strategy and modernization priorities.In order to move the Advanced Grid Applications (AGA) forward in a consistent manner,guidelines for the application of the grid modernization approaches are being developed.Collectively these guidelines are being referred to as a “reference model” which willdirect the planning and installation of AGA across the system.The reference model will define standard approaches to be used when installing AGAdevices, a few examples are listed below:• Guidelines on the planning analysis to be completed• Peak load and/or number of customers between automated switches• Standard capacitor bank size and control settings• Guidelines on feeder and transformer monitor installationAdditionally the reference model will provide guidance on the “standard” distributionfeeder to be built including:• Number of customers served• Peak design loading• Types of construction and wire size• Guidelines on capacitor bank locations (distances between banks, allowablevoltage rise, etc.)• Guidelines on the installation of stepdown banks and line regulators• Number and location of automated switchesIt is expected that the adoption of this reference model will apply mainly to newconstruction and/or areas undergoing significant rebuilding. The reference model will bea living document being updated as we learn more about how our system operates viathe enhanced monitoring and control AGA will deliver as well as adding newtechnologies into the model as they become available.Developing a plan to expand the use of AGA across the system is another key elementrequired to efficiently leverage the grid modernization process. The current thinking onthis subject is to use the new grid monitoring data combined with reference modelguidelines, feeder asset data, reliability statistics and other internal and external data tobuild a ranking model for all feeders across the system. This ranking model wouldidentify feeders and/or groups of feeders with characteristics that indicate the potentialfor significant benefit when AGA technology is installed. The creation of this model isIV-18 1895