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Asset Category Batteries LPN Asset Stewardship Report 2013 Brian Matthews

Approved by Richard Wakelen / Barry Hatton Approved date 03.06.2013 / 04.06.2013 Document Management and Governance by Victoria Patrick Document History Version Date Details Prepared by 1.0 13/03/2013 Initial Draft Brian Matthews 1.1 15/03/2013 Expenditure reduced to allow for Black Start project Brian Matthews 1.2 15/03/2013 Richard Wakelen comments addressed Brian Matthews 1.3 15.03.2013 Approved at Silver Status Richard Wakelen 2.0 25/03/2013 Silver comments addressed Gold draft Brian Matthews 2.1 26.03.2013 Approved at Gold Status Richard Wakelen 2.2 10/04/2013 Gold comments addressed Brian Matthews 3.0 07/05/2013 Aligned with 17 April NAMP Brian Matthews 3.1 09/05/2013 Approved at Gold with Gold Feedback and queries 3.2 30/05/2013 RIGS mapping changes Vols and costs aligned to 30 May NAMP. Gold feedback incorporated. Richard Wakelen Brian Matthews 3.3 03/06/2013 PA Platinum comments addressed. Brian Matthews 3.4 03.06.2013 Awaiting platinum approval by Richard Wakelen Victoria Patrick 3.5 03.06.2013 Approved and signed off Richard Wakelen 3.6 04.06.2013 Approved and completed Barry Hatton 3.7 11.06.2013 Finalised Asset Stewardship Report 2013 Victoria Patrick UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 2

Contents 1.0 Executive Summary... 4 1.1 Scope... 4 1.2 Investment Strategy... 4 1.3 ED1 Proposals... 4 1.4 Innovation... 5 1.5 Risks and opportunities... 5 2.0 Description of Battery Population... 6 3.0 Investment Drivers... 7 4.0 Asset Assessment... 7 5.0 Intervention Policies... 8 6.0 Innovation... 8 7.0 ED1 Expenditure Requirements for Batteries... 9 8.0 Deliverability... 11 UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 3

1.0 Executive Summary 1.1 Scope This document details UK Power Networks NLRE replacement and refurbishment proposals for batteries during the RIIO-ED1 period. There are 1062 battery and charger installations in Grid, Primary and Secondary substations and a further 25,018 assets containing batteries namely Remote Terminal Units (RTU) and Fault Passage Indicators (FPI). Replacement costs for these assets are held in the following locations in Ofgem and UK Power Networks investment planning documents: Investment type ED1 Investment m NAMP LINE RIGS reference Table CV3 Batteries 9.0m 1.01.xx Additions Row 51 - HV - Batteries at GM HV Row 85 - EHV - Batteries at 33kV Row 86 - EHV - Batteries at 66kV Row 102-132kV - Batteries at 132kV Removals Row 165 - HV - Batteries at GM HV Row 199 - EHV - Batteries at 33kV Row 200 - EHV - Batteries at 66kV Row 216-132kV - Batteries at 132kV Table 1 - Investment summary 1.2 Investment Strategy The investment strategy for RIIO-ED1 is detailed in EDP 00-0012 Asset Lifecycle Strategy - Major and is based on achieving an optimal balance between maintenance and replacement by adopting industry best practice testing techniques to maximise battery life. 1.3 ED1 Proposals Table 2 shows the investment profile for batteries in SPN through RIIO- ED1. UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 4

NAMP Line Intervention 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 ED1 Total m 1.01 Replacement 0.99 1.18 1.24 1.25 1.40 0.74 0.91 1.29 9.01 Total 0.99 1.18 1.24 1.25 1.40 0.74 0.91 1.29 9.01 Table 2: RIIO-ED1 investment in m 1.4 Innovation Automatic battery discharge testing is now incorporated into the Grid and Primary battery charger specification, which will optimise the timing of battery replacement. It is anticipated that battery life will be extended by one or two years by the use of this feature. 1.5 Risks and opportunities Opportunity Risk Risk Description of similarly likely opportunities or risks arising in ED1 period Battery life for VRSL cells improved 10% by use of automatic discharge testing Black Start installation delayed or not timed to coincide with existing replacement dates Life of VRSL cells reduced 10% by use of automatic discharge testing Table 3 - Risk and opportunities Level of (uncertainties)/cost growth( m) (0.1) 0.7 max* 0.1 * The worst case risk is that each installation occurs within a year of routine scheduled replacement. UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 5

2.0 Description of Battery Population Substation batteries and their associated chargers play an essential role in maintaining DC supplies to circuit breakers, inter-tripping supplies, SCADA equipment, emergency lighting and numerical protection relays. There are 1,062 battery and charger installations with nominal output voltages ranging from 30V up to 110V located in substations. In addition, there are 25,018 batteries contained within other items of plant, principally Remote Terminal Units (RTU) at secondary substations, some designs of Fault Passage Indicators (FPI) and all Parasitic Load Trip Units (PLTU) - a relay designed to shed specific load in the event of an 11kV cable fault in the interconnected area. Table 4 shows a volume breakdown by battery type and location. Location Planté VRSL Dry Other Total Grid and Primary substation 334 140 61 7 542 Secondary substation 9 447 6 58 520 Total Battery/Charger installations in substations 343 587 67 65 1,062 RTU installations (GM) 0 9112 0 0 9,112 FPI installations (GM) 0 0 14802 0 14,802 PLTU installations 0 1104 0 0 1,104 Table 4 Analysis of batteries by type and location Source: Ellipse BC extract 11 March 2013 All routine NLRE battery replacements proposed for ED1 are listed under NAMP lines 1.01. The volume of routine replacements are depressed in during part of ED1 due to the Black Start Resilience (BSR) project which has its own separate NAMP line 1.13. Details of the NAMP lines are given in Table 5 and RIGS mapping to the NAMP lines in Table 6. NAMP Line Description 1.01.01 Replace Tripping Primary Batteries and Chargers 1.01.04 Replace Remote Control Batteries - GM Equipment 1.01.06 Replace Tripping Batteries (Distribution) 1.01.07 Replace Tripping Grid Batteries and Chargers 1.01.09 Replace EFPI Batteries 1.01.10 Replace PLTU Batteries 1.01.12 Replace 50V Primary RTU Batteries UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 6

Table 5 Battery NAMP Lines NAMP Line Line (Additions) Line (Removals) Description 1.01.01 CV3 85 CV3 213 Batteries at 33kV 1.01.04 CV105 6 Substation RTUs, marshalling kiosks, receivers 1.01.06 CV3 51 CV3 179 Batteries at GM HV 1.01.07 CV3 102 CV3 230 Batteries at 132kV 1.01.09 CV3 51 CV3 179 Batteries at GM HV 1.01.10 CV3 51 CV3 179 Batteries at GM HV 1.01.12 CV105 6 Substation RTUs, marshalling kiosks, receivers Table 6: RIGS/NAMP mapping 3.0 Investment Drivers During the ED1 period 895 battery and charger installations at Grid and Primary substations will be replaced as part of the Black Start resilience project and so have been excluded from the ED1 NLRE volumes and costs. Full details of this project are given in Commentary Document 18. 4.0 Asset Assessment The condition of batteries and battery chargers is best determined by monitoring the amount of outstanding battery defects recorded against them. At Grid and Primary substations the majority of battery chargers send alarms to the control centre via the SCADA system which providing serious battery defect notifications at the time they occur. Otherwise battery defects are noted by the substation inspectors at routine inspection used the Ellipse hand held device. The exact nature of the battery defect is noted on the free text attached to the record with the majority being: A high impedance alert. Failed discharge test. A reminder that the battery is due for replacement. Battery defects are classified as high priority P5 defects under the Defect Management Programme and new defects should be rectified within 3 months. Figure 1 shows the number of defects recorded against the batteries at grid and primary substations. There are just 14 defects more than 6 months old; these UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 7

represent 2.5% of the installed population. UK Power Networks plans to clear the backlog by the end of 2013. Figure 1 Outstanding Battery Defects 5.0 Intervention Policies Healthy batteries are essential for maintaining the correct operation of protection and switchgear. Document EMS 10-0005, Inspection and Maintenance of Batteries and Chargers, outlines the testing required on substation batteries and determines the criteria for replacement. Valve regulated sealed lead acid or gel type cells are usually replaced at between five- and ten-year intervals, as detailed in EMS 10-0002, Inspection and Maintenance Frequency Schedule, but may be replaced earlier if they fail a test. Free breathing Planté cells are replaced only when their impedance starts to rise above set parameters or if they fail a load discharge test. The policy is now to replace existing Planté cells with VRLA cells. The replacement frequencies are based on industry best practice detailed in EA Technology STP Report 6190 Substation Battery Maintenance. 6.0 Innovation Automatic battery discharge testing is now incorporated into the Grid and Primary battery charger specification which will optimise the timing of battery replacement. It is anticipated that battery life will be extended by one or two years by the use of this feature. UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 8

7.0 ED1 Expenditure Requirements for Batteries With the exception of Planté cells, the programme of battery changes in ED1 has been constructed using the Maintenance Scheduled Task (MST) feature of the Ellipse asset register. The Planté cell replacement has been based on historic trends. The estimated replacement volumes during ED1 are shown in figure 2 with the corresponding investment plan shown in figure 3. Note that the maximum life for to dominant VRSL cell type is eight years so the majority will be changed in ED1. Volumes Figure 2 LPN Battery Replacement Volumes DPCR5 (Actual and Forecast from RIgs) Year end 2011 2012 2013 2014 2015 FBPQ 0 0 0 0 0 Replacement 2546 3970 2843 2687 2862 Volumes ED1 Plan Year end 2016 2017 2018 2019 2020 2021 2022 2023 FBPQ Replacement 3222 3525 4003 4607 4783 3126 2144 2724 Volumes ED2 Plan Year end 2024 2025 2026 2027 2028 2029 2030 2031 FBPQ Replacement 2351 3397 4916 4274 4196 3536 2665 2172 UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 9

Estimates for battery replacement were not provided for FBPQ. The volumes previously reported via RIGS did not include FPI and RTU batteries at HV substations and so are substantially below the DPCR5 figures given above which have been derived from closed battery change work orders and so give a more accurate indication of replacements. In future, RIGS reports will include all FPI and RTU battery replacements. Figure 3 LPN Battery Replacement Investment Investment ( 'm) DPCR5 (Actual and Forecast from RIgs) 2011 2012 2013 2014 2015 FBPQ 0.00 0.00 0.00 0.00 0.00 Replacement 0.92 1.41 0.80 0.73 0.88 Investment ( 'm) ED1 Plan 2016 2017 2018 2019 2020 2021 2022 2023 FBPQ Replacement 0.99 1.18 1.24 1.25 1.40 0.74 0.91 1.29 Investment ( 'm) ED2 Plan 2024 2025 2026 2027 2028 2029 2030 2031 FBPQ Replacement 0.94 1.48 1.61 1.32 1.50 1.27 0.89 0.99 Due to the impact of the Black Start project, replacement volumes beyond ED1 are estimated only and will be refined during ED1. UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 10

8.0 Deliverability Battery replacement is a routine task which has been carried out for many years and so no problems are anticipated in meeting the proposed volumes. For deliverability of the Black Start project please refer to Commentary Document 18. UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP 11