2016 | WEL ASSET MANAGEMENT PLAN WEL.CO.NZ PLAN ASSET MANAGEMENT BEST IN SERVICE, BEST IN SAFETY BEST IN SERVICE, 2016 | WEL ASSET MANAGEMENT PLAN 2 2016 | WEL ASSET MANAGEMENT PLAN 3
Garth Dibley Executive Chief 22 March 2016 22 March Dear Stakeholder Management Asset WEL Networks Limited taking the review for time to you Thank 2016. (AMP) Plan on our capital expenditure intended In is a snapshot of our the 2016 AMP essence and performance rationale It outlines the investment the next years. ten network over safe, a strong, provide to our commitment of our assets and reinforces measurements for customers. reliable supply and efficient, key initiatives and highlights It reflectsto be our objective in Best Service, Best in Safety, decisions. business performance, and investment our; planning, will improve that our improve need to we our serviceconsistent, While remains urban customers to service areas. in rural reliability a more delivering the 2015 revision on from follows AMP of this year’s format The stakeholders - from encourage to want We document. read and easy to informative on, with, and comment engage - to partners customers commercial residential to the projects outlined in this document. comment to you invite and I’d progress our business to for is essential feedback Your or phone emailing me ([email protected]) outlined either by on the initiatives 0800 800 935. FOREWORD ...... 108 ...... 85 ...... 100 ...... 37 ...... 17 ...... 21 CH TO ASSET MANAGEMENT ASSET TO CH VERVIEW view of Performance Objectives ...... 109 Objectives view of Performance view ...... 22 of WEL ormance Evaluation ...... Evaluation ormance 117 pose ...... 18 pose CKGROUND estment Planning ...... 101 Planning estment Perf Over ASSET MANAGEMENT PERFORMANCE MANAGEMENT ASSET Inv ASSET MANAGEMENT GOVERNANCE MANAGEMENT ASSET APPROA INTRODUCTION Pur BA Over O ASSET 6.4...... E ciency Cost 115 6.5...... 116 Performance Asset 6.6. 6.1. 6.2...... 110 Safety 6.3. experience...... Customer 112 5.3...... Plan Works 105 6. 5.1. 5.2. Approvals...... Expenditure 104 4.1...... 86 Requirements Stakeholder 4.2...... 89 Management Framework Asset 4.3...... 92 Risk Management Framework 4.4...... 97 Management Performance of Asset Assessment 5. 3.1...... 38 Summary Population Asset 3.2...... 40 Subtransmission 3.3...... 48 Substations Zone 3.4...... 53 Lines Distribution and LV 3.5...... 60 Cables Distribution and LV 3.6...... 63 Transformers Distribution and Substations 3.7...... 67 Distribution Switchgear 3.8...... 76 assets Other xed system 3.9...... 82 Other Assets 3.10...... 84 GXPs WEL at by owned Assets 4. 1.2...... 19 and Initiatives Themes Key 1.3...... 20 Document Structure 2. 2.1. 2.2...... 30 Our Customers 2.3...... 32 Our Network 3. TABLE OF CONTENTS TABLE ...... FOREWORD 3 ...... PLAN SUMMARY 7 1. 1.1.
2016 | WEL ASSET MANAGEMENT PLAN 4 2016 | WEL ASSET MANAGEMENT PLAN 5 ...... 123 ...... 201 ...... 209 ...... 173 ...... 227 ...... 148 DISCLOSURE COMPLIANCE DISCLOSURE SCHEDULES DISCLOSURE ...... 194 CERTIFICATION ...... 197 AND MAINTENANCE AND OF EXPENDITURE FORECASTS EXPENDITURE OF DIRECTOR INFORMATION INFORMATION CBRM GLOSSARY
view of Approach ...... view of Approach 124 ...... Plans view of Network Development 134 ...... 149 and Renewals view of Maintenance all Expenditure summary ...... 171 summaryall Expenditure E C D A troduction ...... troduction 174 NETWORK DEVELOPMENT AND NON NETWORK AND INVESTMENTS NETWORK DEVELOPMENT Over Over RENEWALS Over Over SUMMARY In APPENDIX APPENDIX APPENDIX APPENDIX APPENDIX APPENDIX B APPENDIX APPENDIX
7. 7.1. 7.2...... 131 Demand Forecast Peak 7.3. 7.4...... GXP Investment 134 7.5. Plan...... Urban Development 7.6. 135 ...... 142 Plan Development Rural 7.7...... 145 Summary Investment Network Capital 7.8...... Non-Network Investments 146 8. 8.1. 8.2...... Maintenance 149 8.3...... Renewals 8.4. 152 ...... 154 Management Cycle Life Asset 8.5. 9. 9.1. 9.2...... 175 Expenditure Capital 9.3...... 186 Expenditure Operational 6 2016 | WEL ASSET MANAGEMENT PLAN 6 2016 | WEL ASSET MANAGEMENT PLAN 7
ts to maintain network safety; maintain ts to viding additional capacity in localised areas of forecast growth; and growth; of forecast viding additional capacity in localised areas y is our highest priority. Our vision places safety rst and foremost, making priority it the top rst and foremost, in safety Our places vision y is our highest priority. Addressing network security issues. Addressing Pro Projec - - - Safet and the public. contractors our sta , for environments safe ensure to strive We everything do. we our that identi ed have We quality emphasis on delivering service a strong our customers. place to We our rural In expectations. contrast, our urbannetwork performance customers’ comfortably exceeds a As do. they currently than minutes less interruption signi cantly expect experience customers to network, of the rural high risk and aged assets targeting is on a renewal of this AMP a key focus result, on the performance In network, our focus of the rural to addition outages. customer our reduce to includes: network development and in work delivery and corporate information systems. This will drive further will drive This e ciencies across systems. information deliveryand in work and corporate our business. established performance in objectives and measures and have improvement continuous for strive We e ciency cost and asset performance. experience, customer safety, areas: key asset management four Our core capabilities are in health and safety management, asset management, operational control, control, operational asset management, management, in health and safety capabilities are Our core lifting currently our capability in these areas are We and service management reliability restoration.
PLAN SUMMARY INTRODUCTION characteristics and of our assets and investment describes the nature (AMP) Management Plan Asset The and procedures, systems, an overview planning, of our asset management providing requirements objectives vision, our asset management with our corporate It the interaction practices. demonstrates plan. plan and business as the strategic such documents other corporate with our and the relationship all stakeholders. for resource a valuable create our aim is to In an AMP preparing a traditional from away moved on this objective as we 2015 delivered of the plan in refresh A signi cant e ciency and For information. understand easy to user-friendly, towards based document technical version. of this year’s the format been made to have changes few consistency, the that ensure is to This undertaken. plan has been capital works of the 10 year review A signi cant future challenge the anticipated below, listed in line with the key initiatives projects are put forward analysis. of the network and can withstand commercial developments to and value meaning provides that it in a way explain aim to we information is technical there Where all of our stakeholders. all of our stakeholders. 2026. 31 March 1 April to 2016 period the from covers AMP This KEY INITIATIVES period. the AMP for describe our key themes and initiatives and explain we this document Throughout are: They • • • •
HALF MOON BAY HALF MOON BAY DANNEMORA FLAGSHIP PORCHESTER ROAD OAKLANDS HALF MOON BAY HALF MOON BAY DANNEMORA FLAGSHIP PORCHESTER ROAD OAKLANDS N N TO TO HOROTIU HOROTIU GORDONTON GORDONTON HUNTLY HUNTLY HAMIL HAMIL MARAMARUA MARAMARUA ATA TE KAUWH ATA TE KAUWH RAGLAN RAGLAN NGARUAWAHIA NGARUAWAHIA
KIRKDALE KIRKDALE KIRKDALE requires being diligent shareholders and sharing the pro ts of WEL’s business operation business operation WEL’s of and sharing the pro ts shareholders being diligent requires AN PLACE AN PLACE AN PLACE RY RY
SOUTHGATE SOUTHGATE SOUTHGATE HULME PLACE HULME PLACE BRICK STREET BRICK STREET
Figure S2 – Map of WEL external networks Figure Figure S1 – Map of WEL Networks area Figure WEL NETWORKS AREA NETWORKS WEL with our community through annual discounts and community grants. and community grants. annual discounts with our community through our customers utility services by reliable valued high quality, “Provide Our business vision is to of our activities, By the forefront at keeping our vision whilst protecting and enabling our community.” role a pivotal play We service enhancing customer on serve. the community we and protecting focus we of wellbeing environmental social and the economic, services to essential are providing that by the community. OVERVIEW NETWORK and Auckland. and small networks in Cambridge WEL supplies electricityWaikato the northern to of reliability. a high level enjoy customers City where Hamilton is the main electrical load centre shown are Our network areas rural. predominantly is CityOutside of Hamilton the network area S1 and S2 below. in Figures OVERVIEW OF WEL NETWORKS LTD (WEL) LTD NETWORKS WEL OF OVERVIEW our for investment “Growing purpose Trust’s The (Trust). Trust WEL Energy the by WEL is owned community”
2016 | WEL ASSET MANAGEMENT PLAN 8 2016 | WEL ASSET MANAGEMENT PLAN 9
840 5302 3487 3080 51646 57952 72829 41314 km km No. No. No. No. No. No. UNIT QUANTITY Load Control Relays Control Load Smart Meters Ring Main Units Transformers Crossarms Cables Poles ASSET TYPE Lines Table: S1 – Summary of Assets Table: programmes based on our assessment of asset health, condition and risk. of asset health, condition based on our assessment overview An these of programmes is described further 8. programmes and in detail within Chapter below ASSET TO MANAGEMENT AND GOVERNANCE APPROACH continuously need to we that identi ed have We is evolving. asset management to Our approach achieving our vision, to Good is central asset management and build additional capability. improve 6. the performance and business plans and set out in Chapter outcomes strategic In general, our assets are in good condition. We have targeted our renewal and maintenance and maintenance our renewal targeted have We in good condition. our assets are In general, An overview of our network development plan is described overview furtherAn network of our development 7. and in detail within Chapter below OUR STAKEHOLDERS utmost importance. have to our stakeholder requirements consider we company community a owned As have We and meeting stakeholder expectations. on identifying focus considerable have we Accordingly (including Transpower regulators, community, customers, are These of stakeholders. groups broad eight of Directors. and our Board sta , electricity service (SO)), Operator providers, retailers, as System their role we surveys expectations ensure and direct through to interaction our customers’ identi ed have We discussed in Our is important stakeholder requirements, on what our customers. focus to continually detail in Section plans. expenditure 4.1, drive ASSET OVERVIEW than 6,400 kmOur than 200,000 individual asset network is more of more in length and is comprised stations and 17 switching substations 25 zone and operate maintain the network we Within components. a summary provides S1 below of (11kV)Table supply of electricity enable a reliable to our customers. to operate. the assets we Our network is supplied by four Grid Exit Points (GXP) owned by Transpower and two large embedded large and two Transpower by owned (GXP) GridExit Points four Our network is supplied by with zone network Our connects 33kV subtransmission Uku. the GXPs Te Rapa and Te at generators network voltage our low network feeds This which in turn supply our distributionsubstations network. supplying the majority of our customers. AND DEMAND ELECTRICITY DELIVERED peak demand of with a coincident be 1,219GWh to electricity total during is forecast 2016 The delivered at remained electricity has generally while peak demand increase to Delivered has continued 258MW. primarily driven modestly during period, the AMP grow to demand has been forecast 2011. Peak since subdivision activity residential the north in continued by activity subdivision and new residential in the Tasman in the and industrial connection growth commercial residential, along with east of Hamilton and Rotokauri). Base The (between area substation additional network capacity plan proposes and securityOur network meet the development projects to constraints. existing address of the network and to demand in localised areas peak in forecast growth
We invest in non-network assets to increase operational exibility and to operational increase in non-network assets to invest We Development: ork egration and optimisation of network development, renewal, and maintenance works. and maintenance renewal, of network development, and optimisation egration Our strategic approach to maintenance and asset renewal is to maintain is to and asset renewal maintenance to approach Our strategic and Renewals: enance In line with customer expectations our strategic objective for network objective for In expectations line with customer our strategic Development: ork Int management. scheduling and programme and resource Works delivery. Management of works 2. 3. 1. development is to maintain our urban reliability level while improving the performance of the while improving our urban level reliability maintain is to development the planning period of network security against the consideration over involves This network.rural supply localised areas to capacity maintain required need to will We established security criteria. will seek projects with we these cost-e ectively, achieve To within the urban network. of growth such as demand and non-network alternatives as network such automation bene t ratios high cost discussed further are approach this strategic from result and projects that initiatives The management. 7. in Chapter Non-netw Netw utilising now are We supports that the information decision making. our asset management improve e cient services ensure and to customers to improve to and exibility this provides the information this investment from result and projects that initiatives The made. decisions are investment further discussed are 7. in Chapter Maint for principal methodology employed The the long-term. of risk over and sustainable level a consistent further Based Risk which is explained Managementthis is Condition (CBRM) B. in Appendix period the AMP over expenditure and maintenance renewal and resulting approach strategic This is discussed further 8. in Chapter
• discussed further planning are works 5. in Chapter for arrangements governance The delivery and works is key to of our planning process and optimisation understand the integration We a number of integrating currently are We e ciency objectives. and a ordability achieving our safety, opportunities delivery our works methodology. into improvement strategy and business plans to our Asset Management Policy. This in turn determines key strategies in turn key strategies determines This Management Policy. our Asset and business plans to strategy and maintenance and renewal non-network investment within our network development, contained the plan and incorporate our work form and together in this AMP recorded are Our strategies plans. of our Each component the performance meet stakeholders. to by activities sought lifecycle required is further framework asset management described below. POLICY ASSET MANAGEMENT Its primary arrangements. governance objective our corporate informs Management Policy Asset The quality and customers’ meets that the long-term network over and reliable a safe deliver is to expectations. price ASSET MANAGEMENT STRATEGY links our policy projects and asset the network strategy objectives development management to Asset supports adopted strategy three The 8. 7 and plans described in Chapters and maintenance renewal distinct components. • • decisions by optimise investment seek to We approach. is our whole of life our asset strategy to Central the full life-cycletaking account into of our assets. costs PLANNING WORKS deliver e ciently is to Our focus meeting the needs of our stakeholders. to planning is integral Works It meet customer to services also includes operational both planned and unplanned works. required key steps. three and involves requirements We have established an asset management framework that links the Trust’s purpose, our vision, purpose, Trust’s links the that framework an asset management established have We
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Works Plan (PDD) Project De nition and Cost Estimation GOVERNANCE, PRIORITISATION, APPROVALS Need Identi cation Options Analysis Figure S3 – Investment Planning Framework Planning S3 – Investment Figure authority nancial delegated endorsed the updated In of Directors 2015 our Board December use of the nancial functionality. FRAMEWORK RISK MANAGEMENT be to processes robust It discipline. Risk requires asset management is a fundamental management risk and e cient an e ective in place have We risk. asset-related assessing and managing for in place assessed risk business and network is routinely risks and managing where identifying for framework and re-evaluated. EXPENDITURE APPROVALS activities. Our of our asset management planning capability many to planning is fundamental Investment and quality price on customer expectations. delivering e ciently to is central identi cation needs from all investments, stages for fundamental has the same process Our development prioritisation and governance, under an overarching managed stages are These delivery. to through below. as illustrated framework approvals subject challenge an internal are plans to expenditure approval, to Prior the business. structure for with our organisational been established commensurate limits have approval expenditure The process. within position or role a person’s to set corresponding meaning higher limits are structure, the organisation. ASSET MANAGEMENT IMPROVEMENT gauges our performance against the (AMMAT) Tool Management Maturity Asset The Assessment Management Asset the ISO 55000:2014 standard) by 55:2008 (replaced of the PAS selected components believe of competency we us and stakeholders about the level informs self-assessment This framework. discussions and views our internal from bene t derive We the time of assessment. at reached have we our stakeholders for capability of asset management and competency the level appropriate around opportunities. of improvement and the identi cation ASSESSMENT 2016 AMMAT the last over in our scores an improvement indicating below shown are the 2016 year from results The undertaking starting our delivery are are we of work to the initiatives improve suggests that to This year. the ISO 55000:2014 standards. to alignment achieving a better are take e ect and we The works delivery plan and our operations scheduling is expected to improve as we build on our initial build on our as we delivery improve expected scheduling is works to The operations plan and our and extract further our SAP a project to instigating bene ts from currently integrate are We initiatives. a powerful of utilisation the enhanced module and increased scheduling by in particular, and, system
2016 AVERAGE 2015 AVERAGE management review and information controls and Systems, integration Documentation, ASSESSMENT 4.0 3.0 2.0 1.0 0.0 participation Communication and Asset strategy and delivery Our objective is to make the right investment choice at the right time, and to deliver deliver and to the right time, at choice Our make the right investment objective is to Our customer objective is to deliver the quality sought of supply (reliability) deliver objective Our is to customer erience: y: Our asset performance optimise the price-quality objectiveformance: is to trade-o Safety is our highest priority. Our objective is to provide a safe environment for our sta , our sta , for environment a safe Our provide objective is to is our highest priority. Safety y: entive and corrective maintenance decisions are made using quantitative analytical techniques analytical techniques made using quantitative decisions are maintenance and corrective entive authority Structure, ASSET MANAGEMENT MATURITY ASSET MANAGEMENT capability and Competency and training Our asset management investment decisions re ect safety as our top priority as our top optimised based decisions re ect safety and are investment Our asset management trade-o on a quanti able risk and reliability. expenditure, capital and operational between Prev (FMEA). Modes and E ects Analysis Based Risk or Failure Managementsuch as Condition (CBRM) trade-o a quanti able risk, for allow techniques expenditure, These capital and operational between considerations. and safety reliability our network. and operate maintain plan, build, we the way our Smart inform to data leverage Box We peak capacity planning and remediation, fault identi cation analysis, exception includes voltage This and optimised load control. contractors, and the public. contractors, Exp Customer possible while achieving our quality cost and ownership total the lowest for programme our works targets. safety Per Asset will support further this by our asset management We developing based on our stakeholders needs. and supporting network con guration, business processes. asset strategies, capability, Safet them with a service and provide they value. our customers by E cienc Cost
Furthermore our purpose, vision and values drive the priorities de ned within our Strategic Plan. the priorities drive de ned within our Strategic vision and values our purpose, Furthermore practices. our business and asset management for context also provide They Plan. de ned in our Strategic strategies asset management ve are There • • • • • • • ASSET MANAGEMENT OBJECTIVES key areas. four objectivesOur cover asset management Figure S4 – AMMAT Assessment S4 – AMMAT Figure
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Our customer experience objectives cover both reliability (quality both reliability of supply) objectives cover experience Our customer 29.8 30.0 30.125.4 30.1 25.489.8 30.2 25.5 90.4 30.2 25.6 91.1 30.3 25.6 91.9 30.4 25.7 92.5 30.5 25.7 93.1 30.5 25.8 93.7 25.9 94.3 26.0 94.6 95.2 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 137.2 138.4 139.5 140.4 141.2251.2 142.1 253.4 143.5 255.6 144.9 257.5 146.4 259.0 147.6 260.4 262.2 264.0 265.6 267.4 erience: erience: The performanceThe of our assets directly the quality determines of and cost formance: Safety is our highest priority. Our safety performance objectives cover aspects performance Our safety of our culture objectives cover is our highest priority. Safety y: Cost e ciency is driven by making the right investment choices at the right time the right at choices E ciency: e ciency making Cost by Cost is driven the right investment possible while achieving cost ownership total the lowest for programme our works and delivering and capital expenditure per customer cost operating measure We our quality targets. and safety performance and e ciency as key cost measures, Per Asset of the asset management in turn, is a direct consequence This, services our customers. providing to Re ecting make on a daily basis. these linkages,decisions we asset performance our objective to is GXP load factor measure We needs. optimise the price-quality trade-o on our stakeholders’ based and leadership, how we operate, equipment purchased and requirements for continuous improvement improvement continuous for requirements and purchased equipment operate, we how and leadership, and targets performance. Our our safety key measures measure We communications. and improved Injury Recordable Rate (TRIFR), Frequency incidents. and public safety sta behaviours Total include our Exp Customer such as the time taken with customers, our interactions and the quality through service of deliver we as supply restoring safely to committed are we In measures these addition to a complaint. resolve to our urban to power undertake we restore to Accordingly an interruption. soon as possible following customers. our rural six hours of an outage to hours of an outage and within within three customers receive to entitled are customers and small commercial our residential If do not meet this timeline, we WEL Promise. is knownThis as the us. $150 from will receive customers commercial $40 and our large of our asset performance. as key initiators utilisation and transformer How, when and who we use to deliver our AMP are key inputs in our investment decisions. inputs in our investment key are our AMP deliver use to who we when and How, externally as a leading recognised and are team business metering operational an e ective have We in the smartplayer business environment. metering Safet
GXP 11kV Hamilton 33kV Hamilton 33kV Huntly 33kV Kowhai Te Peak System Table S2 – GXP Demand Forecast Table The network development initiatives that result from our peak demand forecast are summarised in the are our peak demand forecast from result that initiatives network development The page. following • • • DEVELOPMENT INVESTMENTS anticipate in electricity we period, more the AMP e ciency over investing our customers initiatives With also expect see to we However, than in the past. rate a slower at electricity grow the total to delivered in residential of the network, growth in peak demand in some localised areas by driven small increases in peak expect increase a slow we Accordingly, sectors. subdivisions and the commercial/industrial as set out below. period, the AMP demand over • • PERFORMANCEASSET MANAGEMENT our asset by covered areas been established in four have targets and measures objectives, Performance period the AMP which for and targets performance Each includes measures objectives. management area Our performance Plan. are: objectives and measures our Strategic directly from ow • The ‘WEL promise’ does not apply to faults beyond our control such as storms, lightning, vehicle accidents, or third party or third accidents, vehicle damage. lightning, such as storms, ‘WEL The our control beyond faults does not apply to promise’ 1 1
2026
2025
2024 2023
NONNETWORK 2022
RURAL 2021
URBAN 2020
GXP
2019
2018 2017 -
8,000 6,000 4,000 2,000
20,000 18,000 16,000 14,000 12,000 10,000 $000 10 YEAR DEVELOPMENT EXPENDITURE Figure S5 –Development Expenditure Figure However, one of the two transformers at Hamilton GXP is a smaller capacity GXP Hamilton than the other and due to at transformers two one of the However, time that Until capacity the GXP will increase. this occurs at When in 2024. Transpower by be upgraded WEL. by and switching load management be managed through the GXP will demand at PLAN URBAN DEVELOPMENT City. in Hamilton localised growth the needs arising from addresses Plan Urban Development The activities in the north subdivision development residential expected is and southeast of from Growth Base The (between area Tasman and industrial connections in the commercial and residential, Hamilton the needs meet speci cally to required investment and Rotokauri). has also been included for Expenditure our and updating improving for also provides Plan Urban Development The works. of individual customer and works. investments related and speci c safety equipment and automation control RURAL DEVELOPMENT PLAN performance voltage and security on improve the need to addresses Plan Development Rural The Weavers, at substations zone of the rural development at network.our rural is targeted Expenditure aimed also included a number of distribution network improvements have We Uku. Te and Gordonton tripping. circuit avoidable due to interruptions and reducing levels voltage enhancing security, at and renewal maintenance network will primarily from of the rural the reliability come to Improvement of the assets. INVESTMENT NON-NETWORK computer on planning expenditure our during period cover the AMP Our non-network investments support used to management of software asset and hardware including the periodicequipment renewals renewals. functions. vehicle It and motor equipment also includes plant, of a review year This is summarised below. expenditure and Non-network Urban, investment Rural GXP, The future and anticipated undertaken capital project plan was with present the 10 year the drivers rea rm to be reduced capital spend pro le the 10 year that recommended review The on the network.developments also undertaken was the spend pro le. atten to Work $25.8M. by GXP DEVELOPMENT PLAN GXP DEVELOPMENT GXP. the supply capacity the Hamilton at augment a need to implies Our peak demand forecast
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2026 2025
MAINTENANCE 2024
2023
2022
2021 2020
SERVICE INTERRUPTIONS AND EMERGENCIES
2019 2018
VEGETATION 2017 -
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
0 $00 10 YEAR MAINTENANCE, VEGETATION AND FAULTS EXPENDITURE 10 YEAR MAINTENANCE, VEGETATION ensure safety risks are identi ed and mitigated identi ed risks safety are ensure expenditure with renewal together maintenance of optimise the costs regulatory requirements meet any network availability. improve possible, where
Figure S6 – Maintenance, Vegetation and Faults Expenditure and Faults Vegetation S6 – Maintenance, Figure RENEWAL AND MAINTENANCE RENEWAL on maintenance expenditure between the right balance our performanceDelivering objectives requires of our costs whole of life the considered In striking have in renewals. we this balance and investment interventions during their lifecycle. assets and required MAINTENANCE minimise the it is structured which After to focused. safety activity maintenance All is rst and foremost selecting by is achieved This time. performance their of our assets while managing costs over whole of life that: and processes techniques maintenance • • • • MANAGEMENT VEGETATION and with the safe interfere to has the potential our assets that in and around manage vegetation We with the mandatory supply of electricity Electricityreliable in accordance from our customers to (Hazards predict when future a model to and created inspection increased rates have We Regulations 2003. Trees) is expenditure Vegetation model). growth type (vegetation based on vegetation will be required work the over will reduce our model predicts expenditure cutting rates current Using based on this model. AMP period. period. AMP AND EMERGENCY MANAGEMENT SERVICE INTERRUPTION be undertaken. to Service required faults work to Interruption and Emergency Management relates e ciency due to of the the introduction gains from in our faults expenditure a decrease forecast have We and reduction in line testing diagnostic enhanced on defects due to repairs proactive new faults team, programme. the conductor asset renewal due to breaks and faults activities below. is shown vegetation on maintenance, expenditure Our forecast
DISTRIBUTION AND LV LINES ZONE SUBSTATIONS SUBTRANSMISSION OTHER SYSTEM FIXED ASSETS DISTRIBUTION SWITCHGEAR DISTRIBUTION SUBSTATIONS AND TRANSFORMERS DISTRIBUTION AND LV CABLES
2026
2025
2024
2023
2022
2021
2020
2019
2018 2017 -
8,000 6,000 4,000 2,000
14,000 12,000 10,000 $000 10 YEAR RENEWAL EXPENDITURE Figure S7 – Renewal Expenditure S7 – Renewal Figure SUMMARY OVERALL aim we and targets measures, a clear description of the objectives, provides Management Plan Asset The on behalf of our stakeholders. achieve to these activities the next and how will be 10 years make over need to we It describes the investments customers. and future of our current meet the requirements deliver managed to RENEWALS primarily the variable expenditure vary period, due to the AMP to over is forecast Renewal expenditure and distribution on our planned transformer evident also changes are Step renewal. substation on zone known as asset renewals to re ects our riskThis approach based 2019. from line expenditure and LV network safety, the highest risk to present of assets that prioritises the renewal approach This CBRM. performance and the environment. electricity deliver numerous to methodology is used by internationally The distributioncompanies asset management. risk related e ective below. is shown on renewals expenditure Our forecast
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2016 16 1. INTRODUCTION
ding the investment requirements we foresee over the AMP period so we can continue in can continue period the AMP so we over foresee we requirements ding the investment eying our asset management and planning processes, which have been set in place to meet to been set in place which have and planning processes, eying our asset management summarises our key themes and initiatives included in this AMP. (1.2): summarises our key themes and initiatives and Initiatives Themes and operate and operate recor utility services our customers reliable, by valued high quality, “provide with our vision to accordance our community” and enabling whilst protecting our asset management into incorporated are an overview stakeholder interests of how providing and practices procedures systems, planning, vision and our asset our corporate the plans, between the interaction demonstrating objectivesmanagement conv e ciency cost and high quality experience, customer objectives of safety, our asset management asset performance plan and its importance as a key strategic with our of the AMP describing the relationship planning document. providing readers with an appreciation of the nature and characteristics of the assets we own own and characteristics we of the assets of the nature with an appreciation readers providing explains the purpose of the AMP, the period covered, the date ap proved by our Board our Board by ap proved the date the period covered, the purpose (1.1): explains of the AMP, Purpose audience. intended and the its scope of Directors, Key a summary provides Structure (1.3): Document structure. and its of the AMP
INTRODUCTION • • • • • meaning and provides that it in a way explain aim to we in this AMP information is technical there Where all our stakeholders. to value AMP THE BY PERIOD COVERED long-term with any period). As 2026 (AMP 31 March 1 April 2016 to period from year a ten plan covers This of state predict the near-term as it is easier to in the earlier years accurate be more to plan, the details tend actions, plans and expenditure. our assets and required DATE APPROVAL 2016. on 22 March of Directors Board WEL Networks Limited the by and approved reviewed plan was This SCOPE OF THE AMP WEL assets used in the delivery of electricity the distribution services the customers covers AMP to This our network.connected to INTENDED AUDIENCE and Electricity Commission the Commerce includes: our customers, this AMP for audience intended The parties. interested and other our sta and contractors, Authority (our key regulators), The purpose of this AMP is to communicate with our stakeholders by: communicate is to purpose of this AMP The • • • • The Asset Management Plan (AMP) describes the nature and characteristics of our assets and investment characteristics and of our assets and investment describes the nature (AMP) Management Plan Asset The and procedures systems, an overview planning, management of our asset it also provides requirements; last year, to layout and content while similar in format (AMP), Management Plan 2016 Asset This practices. versions. previous plan from expenditure our capital works of review includes a signi cant and is structured as follows. our AMP, introduces chapter This PURPOSE
1.1 1.
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2016 18 2016 | WEL ASSET MANAGEMENT PLAN 191919 TIVES ts to maintain network safety; maintain ts to viding additional capacity in localised areas of forecast growth; and growth; of forecast viding additional capacity in localised areas y is our highest priority. Our vision places safety rst and foremost, making priority top it the foremost, rst and in safety Our vision places y is our highest priority. Addressing network security issues. Addressing Pro Projec - - - Safet and the public. contractors, our sta , for environments safe ensure to strive We everything do. we our that identi ed have We quality on delivering emphasis service a strong customers. our place to We our rural In expectations. contrast, our urbannetwork customers’ performance comfortably exceeds experience. than they currently minutes interruption less signi cantly expect experience customers to network, of the rural high risk and aged targeting is on a renewal of this AMP a key focus result, a As performance on the In network, our focus of the rural addition to outages. customer reduce assets to includes: our network development Our core capabilities are in asset management, health and safety, operational control, reliability control, operational health and safety, in asset management, capabilities are Our core further plans to have lift and in our capability in these areas We and servicemanagement restoration. further will drive This our business. e ciencies across systems. information deliverywork corporate and established performance in objectives and have and measures improvement continuous for strive We e ciency cost and asset performance. experience, customer safety, areas: key asset management four
KEY THEMES AND INITIATIVES period. the AMP for describe our key themes and initiatives and explain we this document Throughout are: They • • KEY THEMES KEY THEMES AND INITIA • • 6. set out in Chapter are and targets measures Our performance initiatives, objectives, 1.2 E s e T ocesses we equirement . t 10 years. t 10 years. GEMENT GOVERNANC or replacement and CHAPTER 8 RENEWALS AND CHAPTER 8 RENEWALS MAINTENANCE Sets out the r f maintenance expenditur over the nex CHAPTER 3 ASSET OVERVIEW own Describes the assets we and operate along with their current condition. CHAPTER 5 ASSE MANA Describes the pr use to manage our assets and network 8 k r or ORK APPENDICES W tw
OUR 10 YEAR PLAN our
t 10 rmance rmance s,
S ed TO
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GEMENT S . e levels delivered ove WEL Network INTRODUCTION (THIS CHAPTER) INTRODUCTION MENT AND NON NET P BACKGROUND INFORMATION ON WEL NETWORKS BACKGROUND INFORMATION GEMENT PERFORMANCE rmanc
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vides supporting and the detailed regulatory schedules information fo troduces ANA e are seeking to achieve and the Pro xpenditure over the next 10 years. 10 years. xpenditure over the next xpenditure the last two years. the last two years. per e w DEVE INVESTMENT developing Sets out our plans for the network over the nex years, along with our non-ne e OF CHAPTER 9 SUMMARY EXPENDITURE FORECAST Summarises our proje Sets out the approach we take Sets out the approach to asset management. CHAPTER 6 ASSET M Describes both the per CHAPTER 7 NE CHAPTER 2 B In customers and networ CHAPTER 4 APPR ASSET MANA 9 7 23
45 6 OUR APPROACH TO ASSET MANAGEMENT AND PERFORMANCE OBJECTIVES OUR APPROACH TO ASSET MANAGEMENT Figure 1.3 AMP Structure Figure The document is structured as illustrated in Figure 1.3. in Figure is structured as illustrated document The DOCUMENT STRUCTURE DOCUMENT 1.3
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provides background information on WEL, including our governance WEL, including our governance on information background WEL (2.1) provides of view provides an overview electricity. distribute of the network assets used to (2.3) provides Our Network describes our customers and the quality of supply they require from our network. from and the quality (2.2) describes our customers of supply they require Our Customers Over and stakeholders. vision, values, purpose, arrangements,
the aspirations of the Trust and how we operate as a business. operate we and how Trust of the the aspirations provides cost e ective and reliable services to our customers. By keeping our vision at the forefront of the forefront By services keeping our vision at and reliable our customers. to e ective cost provides utilising our pro ts e ectively in our community through an annual discount on individual electricity an annual discount in our community through e ectively utilising our pro ts . www.welenergytrust.co.nz at and its activities can be found Trust about the information More WEL is locally owned. The company has one shareholder, the WEL Energy Trust (Trust). The bene ciariesThe (Trust). Trust WEL Energy the has one shareholder, company The WEL is locally owned. WEL and its direct predecessors have supplied electricity to the Northern Waikato for nearly 100 years. nearly 100 years. for supplied electricityWaikato have the Northern to WEL and its direct predecessors WEL operates for the bene t of customers and the community. The Trust monitors the performance monitors Trust The and the community. the bene t of customers for WEL operates accounts and through a programme of community grants. of community grants. a programme and through accounts Council. As the Trust is community owned the income it generates bene ts the community that WEL bene ts the community that it generates the income is community owned Trust the As Council. Our business vision and values are are Our values business vision and detailed below. and objectives are vision, values Our corporate driven directly from the Trust’s purpose statement. This ensures that there is a clear line of sight between is a clear line of sight there that ensures This purpose statement. Trust’s the directly from driven our company purpose, vision and values. purpose, our company District Waipa District and Council Waikato City Council, Hamilton the local councils; are Trust of the centres of Raglan, Gordonton, Horotiu, Ngaruawahia, Huntly, Te Kauwhata and Maramarua. Te Huntly, Ngaruawahia, Horotiu, of Raglan, Gordonton, centres of Directors. of Directors. our activities, we focus on enhancing our customers’ experience and protecting the community we serve. the community and protecting we experience our customers’ on enhancing focus our activities, we our distribution network (network) that serves our customers. The chapter is structured as follows: chapter The our distribution network serves (network) that our customers. serves. The Trustees of the Trust are elected by WEL’s customers, with elections held every three years. with elections every held customers, years. three WEL’s elected by are Trust of the Trustees The serves. of WEL and is consulted on our strategic initiatives including asset management measures and targets. and targets. measures management including asset initiatives on our strategic WEL and is consulted of our community” OUR VISION: WEL ENERGY TRUST’S PURPOSE: TRUST’S PURPOSE: WEL ENERGY BACKGROUND OVERVIEW OVERVIEW OF WEL CORPORATE OBJECTIVES CORPORATE OWNERSHIP AND OWNERSHIP GOVERNANCE The next election is scheduled for June 2017. The Trust is responsible for appointing WEL’s Board Board WEL’s appointing for is responsible Trust The nextThe election June 2017. is scheduled for The northern Waikato region includes the major population centre of Hamilton City, and the regional and the regional City, of Hamilton centre includes the major population region Waikato northernThe along with detail, structure in more and governance ownership WEL’s sections describe following The The Trust’s purpose is to grow investment for our community by being diligent shareholders and by and by shareholders being diligent our community by for investment grow purpose is to Trust’s The high quality a electricity develop continually principle of our vision is to overriding network whichThe This chapter introduces WEL Networks Limited (WEL)WEL Networks Limited an overview It of provides and our customers. introduces chapter This • • • “Provide high quality, reliable utility services valued by our customers whilst protecting and our customers enabling utility reliable by services valued high quality, “Provide “Growing investment for our community” investment “Growing
2.1.2 2.1.1 2.1 2.
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be easy, but are the right thing to do. thing to the right but are be easy, Everyone focusing every day on their own safety, their colleagues’ their colleagues’ every safety, on their own focusing Everyone day Earn respect for our actions. Making Earn respect for not always might that decisions Having the exibility to respond when the situation demands it. when the situation the exibility respond to Having Being quick and responsive to change and opportunities. change and to Being quick and responsive that our business is always as e cient and e ective as it can be. as it can be. and e ective as e cient is always our business that Working well with people in our business, respecting and providing respecting and providing with people in our business, well Working Grow our business’ in uence and competitiveness. Making sure sure and competitiveness. Making in uence our business’ Grow Continuously improving what we do. we what improving Continuously safety, and the public’s safety. and the public’s safety, service to our community, caring about the assets we own and operate. own caring about the assets we service our community, to
Our objective is to make the right investment choice at the right time, and to and to the right time, at choice Our make the right investment objective is to
Our customer objective is to deliver the quality sought of supply (reliability) deliver objective Our is to customer erience: y: Safety is our highest priority. Our objective is to provide a safe environment for our sta , our sta , for environment a safe Our provide objective is to is our highest priority. Safety home safe Every day day Every Do the right thing Do the right Build the Business people, customers customers people, and assets Care for our for Care Agility y: entive and corrective maintenance decisions are made using quantitative analytical techniques analytical techniques made using quantitative are decisions maintenance corrective and entive by our customers and provide them with high quality services. and provide our customers by Prev decisions; and key inputs in our investment are our AMP deliver use to when and who we How, player in the smartplayer business environment. metering performance targets. Safet We have an e ective operational business metering team and are recognised externally a leading as recognised and are team business metering operational an e ective have We We leverage our Smart Box data to inform the way we plan, build, maintain and operate our network. and operate maintain plan, build, we the way our Smart inform to data leverage Box We Customer Exp Customer and reliability considerations; and reliability and optimised load control; Cost E cienc Cost Our asset management investment decisions re ect safety as our top priority as our top optimised based decisions re ect safety and are investment Our asset management deliver our works programme safely for the lowest total ownership cost possible while achieving our cost ownership total the lowest for safely programme our works deliver contractors and members of the public. contractors on a quanti able trade-o on a quanti able risk and reliability; expenditure, capital and operational between such as Condition Based Risk Management (CBRM) and Failure Modes and E ects Analysis (FMEA). (FMEA). Modes E ects Analysis and and Failure Based Risk Managementsuch as Condition (CBRM) These techniques allow for a quanti able trade-o a quanti able risk, for allow techniques expenditure, These capital and operational between peak capacity planning and remediation, fault identi cation analysis, exception includes voltage This E D B C A
wellbeing of the community we serve. of the community we wellbeing INFORMING OUR ASSET MANAGEMENT OBJECTIVES INFORMING OUR We play a pivotal role by providing services that are essential to the economic, social and environmental social and environmental the economic, services to essential are providing that by role pivotal a play We asset management objectives. Our asset management objectives cover four key areas; safety, customer customer safety, key areas; four objectives Our cover asset management objectives. asset management Our vision is supported values. our fundamental by Our purpose, vision and values drive the priorities de ned within our Strategic Plan. They also provide also provide They Plan. the priorities drive de ned within our Strategic vision and values Our purpose, experience, cost e ciency cost and asset performanceexperience, as outlined. context for our business and asset management practices. The asset management strategies de ned in strategies asset management The practices. management our business and asset for context are: Plan our Strategic customers and the community. and the community. customers OUR VALUES:
The strategic plan in turn provides the performance requirements, targets and initiatives for each of our for and initiatives targets the performance in turn plan requirements, provides strategic The As a business we take pride in these values and demonstrate them in every our with take pride demonstrate interaction and in these values business we a As • • • • • • • •
rust. ectors y retailers wer (including their role as System Operator (SO) Operator as System their role (including wer e providers business processes. Board of Dir Board Electricit Regulators WEL T Energy Community Customers developing our asset management capability, asset strategies, network con guration, and supporting network con guration, asset strategies, capability, our asset management developing on our stakeholders’ needs. We will support this by more clearly understanding our customer needs, will support needs, clearly understanding our customer more this by We needs. on our stakeholders’ Servic Sta Our performance asset the price-quality optimise objective Performance: is to Asset trade-o based Transpo
Each group is described below. Each group interactions and regular consultation. We understand retailers’ requirements of us as an electricity requirements understand retailers’ We consultation. and regular interactions in the level of service sought by the di erent groups, all customers are concerned with four key service with four concerned are all customers groups, of service the di erent in the level by sought into six groups; domestic, non-domestic, small scale distributed generation, streetlight, unmetered unmetered streetlight, non-domestic, generation, small scale distributed domestic, groups; six into the direct contractual relationship with customers. with customers. the direct relationship contractual we provide. Their interests are accommodated within our asset management practices through delivering delivering practices through within our asset management accommodated are interests Their provide. we representatives of our customers. of our customers. representatives RETAILERS We maintain frequent communication with retailers through our operational, billing and payment billing and payment our operational, through with retailers communication frequent maintain We We identify our customers’ needs through surveys, feedback and direct interaction. While there is diversity there While and direct interaction. feedback surveys, through needs our customers’ identify We We place a strong emphasis on delivering quality service to our customers. We have di erentiated them di erentiated have We quality emphasis on delivering service a strong our customers. place to We arrangements. Retailers are viewed as customers in their own right in addition to their role as their role right in addition to in their own as customers viewed Retailers are arrangements. addition, retailers in most situations are responsible for collecting revenue on our behalf and maintaining collecting revenue for responsible are in most situations addition, retailers acceptable asset management, technical and performance technical asset management, standards. acceptable areas; public safety, quality of supply, price of the service they receive, and the level of customer service of customer and the level of the service price they receive, quality of supply, public safety, areas; and large. In addition we have domestic and non-domestic and Auckland in Cambridge on customers In have addition we and large. Our customers are further are Our customers discussed in Section 2.2. Central Business District (CBD), urban or rural areas of our network. We also have a number of generation a number of generation also have We of our network. areas urban Business District or rural (CBD), Central Our asset management performance objectives are set out in more detail within Chapter 6. detail within Chapter performanceOur asset management set out in more objectives are distributor. These requirements include: the delivery of e ective business to business services; include: the delivery business to of e ective use requirements These distributor. of transparent, simple and appropriate network tari structures and fair contractual and prices; simple and appropriate of transparent, our external networks. These groups can be further groups within theThese characterised as either being located our external networks. who injectcustomers electricity our network. into eight broad groups of stakeholders: groups broad eight CUSTOMERS CUSTOMERS STAKEHOLDERS There are approximately 15 retailers who sell electricity 15 retailers and ancillary approximately In services are our customers. to There As a community owned company we consider our stakeholder requirements to have utmost importance. have to our stakeholder requirements consider we company a community owned As have We stakeholder expectations. and meeting on identifying focus considerable have we Accordingly, • • • • • • • • • • 2.1.3
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tion prise value and the long-term sustainabilityprise and the long-term value of the business the long-term management of our assets management the long-term managing business risk managing providing a safe environment for sta , service and the public providers sta , for environment a safe providing developing organisational capability. organisational developing e cient opera e cient enter with the community ensuring a good reputation engagement customer seeking opportunities growth for
forward work planning so sta can maintain a work/life balance. a work/life planning so sta can maintain work forward for, amongst other things, maintaining the integrity of the electricity system including the coordination of of the electricity the integrity maintaining including the coordination amongst other things, system for, New Zealand transmission company. Transpower also holds the role of System Operator (SO) responsible responsible (SO) Operator of System also holds the role Transpower company. transmission New Zealand include safety and the impact our assets have on the environment. These needs are paramount to us and to paramount needs are These the environment. on and the impactinclude safety have our assets trust and as such the wider community needs are an important focus for us. We have developed our developed have We us. an important for wider communitytrust and as such the are needs focus working environment and to be fairly remunerated for the work they perform. We strive to be a good to strive We they perform. the work for be fairly remunerated and to working environment transparent and commercially sound. and commercially transparent responsible for establishing and regulating an e cient electricity an e cient aspectsregulating establishing and of market and other related for responsible understanding of the community’s needs through a number of channels including the Trust. These needs These Trust. including the a number of channels needs through community’s understanding of the REGULATORS various Acts including the Commerce Act and the Electricity Industry Act. The regulations are primarily are Act and the Electricity regulations The various Acts including the Commerce Industry Act. We receive our electricity supply via transmission lines owned and operated by Transpower, the Transpower, by our electricity and operated lines owned receive supply via transmission We We have a responsibility to the wider community in which we operate. Our owner is a community Our owner operate. the wider community in which we to a responsibility have We administered by the Commerce Commission and the Electricity Authority. The Commerce Commission is Commission Commerce The and the Electricity Commission Authority. the Commerce by administered and Operator an electricity with the System interactions such as pricing structure, distribution business, are accommodated in our asset management practices. Our objectives and approach to public safety and public safety to Our objectives and approach practices. in our asset management accommodated are BOARD OF DIRECTORS DIRECTORS OF BOARD asset management plans, commercial relationship and other industry issues. We have established have We and other industry relationship issues. commercial plans, asset management Our sta are the driving force behind our business. They value job satisfaction, a safe and enjoyable and enjoyable job satisfaction, value a safe They behind our business. the driving force Our sta are Our service providers are essential to our ability supply electricity to to essential Our service are distribution services providers our customers. to our economic regulator. It manages regulations around price-quality It around disclosure and public manages regulations requirements, regulator. our economic ElectricityThe Authority is WEL. applies to that of important Disclosure) (Information information WEL. also apply to that with retailers agreements commercial environmental issues are described in Chapter 6. described in Chapter issues are environmental employer and have incorporated health and safety policies and initiatives, performance reviews and performance reviews policies and initiatives, health and safety incorporated and have employer circumstances require it. require circumstances electricity generation. Transpower and WEL consult extensively with each other regarding our respective our respective with each other regarding extensively WEL consult and Transpower electricity generation. safe, e ective and e cient manner. They in turn require our interactions with them to be predictable, be predictable, them to with our interactions in turn require They manner. and e cient e ective safe, systems and protocols with the SO for immediate communications regarding operational matters should matters operational regarding communications immediate with the SO for and protocols systems STAFF SERVICE PROVIDERS SERVICE PROVIDERS COMMUNITY The Board of Directors are the shareholder’s representatives in setting direction for the business. the business. in setting direction for representatives the shareholder’s are of Directors Board The As an electricity established underAs subject regulations are to distribution business our operations Accordingly we are focused on ensuring they perform focused of them in a the services are and deliver we required Accordingly As such they are concerned, amongst other things, with: amongst other things, concerned, such they are As TRANSPOWER • • • • • • • • •
O ce Project
IT Support Technology Systems and Management Development GIS Management Technology
GM
Centre Business Assurance Regulatory Commercial Distribution Procurement Pricing & Billing Commercial GM Safety Services Customer Health and eople & Management Development Organisational HR And Payroll Administration Human Resource Communications e GM P Performance ecutiv Chief Ex Works Project Services Services Overhead Scheduling and Design Management First Response Works Planning Subtransmission Performance and ing report Financial TION STRUCTURE TION STRUCTURE Services GM WEL Figure 2.1.4 Organisation Structure 2.1.4 Organisation Figure Executive Support & Administration & t Asset Network Services Planning Metering Contract & & Planning Information Automation Operation Engineering Maintenance Management Management Asset Strategy Network Design Customer Project Work Programme GM Asse Management ing performance against the strategies, objectives and targets in relation to the above the above to in relation objectives and targets ing performance against the strategies, val of the annual business plan and budgets. val plan. work and corresponding of the AMP val val of strategic plans. of strategic val Finance Treasury Accounting Management Finance Individual project approval (for projects greater than $2M). projects greater (for Individual project approval GM Monitor governance activities. governance Appro Appro Appro
works plan. The divisions are: Finance, Asset Management, People and Performance, Commercial and Commercial and Performance, People Management, Asset Finance, divisions are: The plan. works the company, capital expenditure and progress against established timeframes, risk and management against established timeframes, and progress capital expenditure the company, WEL Networks Chief Executive. WEL is structured into ve divisions plus a wholly owned subsidiary divisions plus a wholly owned deliverymajority the ve WEL is structured for into for of the and organisation structure is to ensure the necessary accountabilities are in place for good for in place the necessary are ensure structure is to accountabilities and organisation asset management. asset management. ARRANGEMENTS AND GOVERNANCE OF DIRECTORS BOARD compliance, performance and any customer complaints. performance customer and any compliance, of our Executive Management, Asset Management and Operational teams. The aim of the governance aim of the governance The teams. Management and Operational Asset Management, of our Executive governance processes. governance ORGANISATION STRUCTURE ORGANISATION CORPORATE AND CORPORATE ORGANISA Technology. Figure 2.1.4 below illustrates our organisational structure. WEL Services reports the to structure. organisational our illustrates 2.1.4 below Figure Technology. The Board receives regular reports and information on the operational revenue and expenditure of and expenditure revenue reports on the operational regular information and receives Board The The Trust appoints the Board of Directors, who govern the company and appoint the Chief Executive. the Chief Executive. and appoint the company who govern of Directors, the Board appoints Trust The activities. governance related asset management level the key Board are These This section describes the governance arrangements, organisation structure and key responsibilities structure key responsibilities and organisation arrangements, sectionThis describes the governance Their interests are identi ed and incorporated into asset management practices through our practices through asset management into incorporated and identi ed are interests Their • • • • • 2.1.4
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t of maintenance standards, policies and procedures standards, t of maintenance e of project optimisation tools e of project optimisation work Management System (NMS), network automation, Smart (NMS), network automation, Grid Management System work ing asset performance outcomes ol and permitting of access to the network to ol and permitting of access olio Management t end management of customer initiated works initiated of customer t end management tegy and business planning tegy estment planning to meet the needs of stakeholders planning to estment Management of outsourced work through contract management contract through work Management of outsourced Monitor Management of the renewal and maintenance programme and maintenance Management of the renewal Manage Land Access, Consenting and Resource Management Act requirements and Resource Consenting Manage Land Access, Fron Portf Renewals and Maintenance strategy Renewals and Maintenance Developmen and external servicesDesign internal customers. for external by contractors provided works of design Review and approval Inv maintenanc Works programme management, works plan & spend pro le development development plan & spend pro le works management, programme Works Contr and communications Optimisation of lifecycle costs of network assets costs of lifecycle Optimisation SLA and KPI management Stra SCADA/Net 24/7 monitoring and operation of the network and operation 24/7 monitoring
KEY RESPONSIBILITIES • • • • • • • • • • • • • • • • • • •
Management Maintenance Strategy Strategy Maintenance Principal Advisor Principal Network Operate Network Operate Network Design and Restore and Engineering & Programme Contract Asset Planning Asset TEAMS In 2015 WEL Networks undertook a review of our delivery model as planned in the WEL Networks WEL Networks undertook of our delivery a review In model as planned in the 2015 made with regards to insourcing and outsourcing of maintenance and capital works. The project followed project followed The capital works. and of maintenance and outsourcing insourcing to made with regards and evaluation. non- nancial analysis network assets. This includes ensuring the assets are developed, renewed, maintained, operated and operated maintained, renewed, developed, includes ensuring are the assets This network assets. used on a long-term sustainable basis to meet the needs of all stakeholders. Their key responsibilities key responsibilities Their meet the needs of all stakeholders. basis to sustainable used on a long-term EXECUTIVE EXECUTIVE MANAGEMENT TEAM a robust methodology and included learnings from other organisations as well as thorough nancial and as thorough as well other organisations methodology and included learnings from a robust are set out in the following table. table. set out in the following are and leadership within the organisation. The executive team is headed by Chief Executive, Garth Dibley. Chief Executive, by is headed team executive The the organisation. and leadership within Our Asset Management team has overall responsibility for the management and operation of the and operation management the for responsibility has overall Management team Our Asset Our Chief Executive and executive management team are responsible for developing our strategy strategy our developing for responsible are team management and executive Our Chief Executive Strategic Plan (developed February 2015). The aim was to ensure the right commercial decisions are decisions are the right commercial ensure to aim was The 2015). February (developed Plan Strategic WEL SERVICES SUBSIDIARY ASSET TEAM MANAGEMENT The models evaluated were: status quo; partial outsourcing; full outsourcing; an alliance and a subsidiary. and a subsidiary. quo; partial status an alliance full outsourcing; outsourcing; were: models evaluated The Table 2.1.4.1 Asset Management Team Responsibilities 2.1.4.1 Asset Management Team Table
t and handover of work to resources to of work t and handover tion of work order costs, SAP processing and reporting processing SAP costs, order tion of work y of maintenance, customer work, customer projects faults and capital y of maintenance, vide project management servicesvide project management support to planning and Reconcilia Receipt of incoming work, complete detailed design where required where detailed design work, of incoming Receipt complete manage resources e ciently to and schedule all work Plan Deliver Pro scheduling on complex projects scheduling on complex Assignmen
KEY RESPONSIBILITIES • • • • • •
build a exible, high performance culture within the team re ecting its role as a service to re ecting high performance its role within the team provider build a exible, culture Level Agreements underpinning its performance Agreements Level to one or more service one or more to providers. there is outsourcing of some capex works, such as customer initiated works and major project capex works initiated such as customer works, capex of some is outsourcing there renewal works renewal WEL Networks, as well as a partner. as well WEL Networks, a wholly owned Subsidiary delivers maintenance, rst response, second response and asset response second rst response, Subsidiarya wholly owned maintenance, delivers develop a more commercially astute team with strong commercial drivers and associated Service and associated drivers commercial with strong team astute commercially a more develop Planning &Planning & DeliveryDispatch Management Project Scheduling Administration TEAMS
information systems. systems. information of this AMP. implementation will result from a ‘combination’ model, in which: model, ‘combination’ a from will result the 2015-16 nancial year preparing the organisation for the wholly owned subsidiary the wholly owned for model. the organisation preparing the 2015-16 nancial year programmes in place we have identi ed, and are in the process of forming plans to lift plans to our capability of forming in the process and are identi ed, have we in place programmes management objectives and performance.management responsibility for the operational delivery of the Works Plan assigned to them and is divided into four four them and is divided into to assigned Plan Works delivery the operational the of for responsibility set out below. are key responsibilities The primary sub-teams. management information is contained within the WEL Networks asset management documentation documentation NetworksWEL management asset within the is contained information management now recognised as WEL Services. as recognised now We will establish a capability development programme to ensure we meet future challenges including meet future we ensure to programme will establish a capability development We and service restoration. While all sta and contractors are competent and have appropriate training appropriate and have competent are all sta and contractors While and servicerestoration. business acumen and corporate delivery, works also applies to This and competency in these areas. Commercial and People and Performance teams. Each team provides essential services essential in the areas provides Each team teams. and Performance and People Commercial establishing the subsidiary an opportunity provide will to: capabilities; asset management, health and safety, operational control, and reliability management and reliability control, operational health and safety, capabilities; asset management, outlined in our organisation structure (Figure 2.1.4) and contributes to the ful lment of our overall asset of our overall the ful lment to 2.1.4) and contributes structure (Figure outlined in our organisation structure and WEL services is still part of the WEL company structure. The WEL Services has overall team The structure. WEL servicesWEL company is still partstructure and of the OTHER TEAMS OTHER CAPABILITY The results of our investigation demonstrated that the best long term cost/bene t value for WEL for value cost/bene t term the best long that demonstrated of our investigation results The This model rated the highest on both nancial and non- nancial evaluation criteria. In both nancial and non- nancial evaluation the highest on addition, model rated This The Asset Management and WEL Services teams are supported by the Finance, Information Services, Information WEL Services supported are the Finance, teams by Management and Asset The This model was endorsed by the WEL Networks Board and work undertaken and work WEL Networks Board of in the remainder the endorsed by model was This The WEL Networks subsidiary was in in place for the beginning of the 2016-17 nancial year and is the 2016-17 nancial year of WEL Networks subsidiary the beginning for in in place was The The formation of WEL Services will not a ect WEL Networks core asset knowledge as core asset asset knowledge as core WEL Networks core WEL Services a ect will not of formation The An assessment of our organisational capability has recently been completed con rming our core our core con rming been completed capability has recently of our organisational assessment An Table 2.1.4.2 WEL Services Team Responsibilities 2.1.4.2 WEL Services Team Table • • • •
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permitted to access access to permitted Regulation. Land access Vegetation Climate Topography he sections below discuss each environmental factor. he sections discuss each environmental below
factors that determine the operational environment. These include: These environment. factors the operational determine that landowner’s and WEL’s legal rights. Obtaining an easement is usually straightforward when a private land when a private is usually straightforward Obtaining an easement legal rights. WEL’s and landowner’s LAND ACCESS time consuming. time consuming. with wetlands in the Waikato lowlands and large tracts of native forest in the western hill country. country. hill in the western forest tracts large of native and lowlands Waikato in the with wetlands events. during weather debris and failure windblown from subject interference which are to the Electricity Act. practical in the planning process. A conservative approach is taken to the amount of land required for an for of land required the amount is taken to A conservative approach practical in the planning process. accordingly. vegetation remove new assets to transit private land where the landowner gains no bene t is often challenging and no bene t is often gains challenging the landowner where land private transit new assets to rights and the ability for WEL to access and maintain the equipment. WEL is also the equipment. and maintain access WEL to rights and the ability for reliability of our assets. Weather related events cause the highest incidence of interruptions to our to of interruptions cause the highest incidence events related Weather of our assets. reliability designated road reserves for installation, maintenance and repair of electrical repair and under equipment maintenance installation, reserves for road designated We acquire easements for the installation of new assets on private property in order to formalise both the property formalise of new assets on private to the installation in order for easements acquire We assets built prior to 1992. These special rights give equipment established prior to 1992 existing use 1992 existing established prior equipment to special rights give These 1992. assets built prior to Vegetation located close to our assets has the potential to interfere with the safe and reliable supply and reliable with the safe interfere to our assets has the potential close to located Vegetation Our ability to gain access to our existing assets or secure land for new assets is fundamental to our to new assets is fundamental land for assets or secure our existing to Our ability gain access to On occasions unpredictable extreme weather conditions negatively impact the performance negatively conditions and unpredictable weather extreme On occasions easement to reduce expense and delay in the delivery in and delay expense new assets. of reduce to easement of electricity to our customers. We manage all vegetation in accordance with the requirements of with the requirements in accordance manage all vegetation We of electricity our customers. to owner will directly bene t from the easement e.g. a new connection. However, obtaining an easement for for obtaining an easement a new connection. However, e.g. the easement will directly bene t from owner continuing operations. As a Network Operator WEL has special rights under the ElectricityWEL has special rights under the Act 1992 for a Network Operator As operations. continuing of our region is largely free-draining and cultivated. However, there are also areas of peaty soils loam, peat also areas are there free-draining However, is largely of our region and cultivated. assets lines and outdoor of overhead the presence is due to This particularly customers, areas. in rural sites where vegetation could interfere with the safe and reliable supply to our customers. We trim or We our customers. supply to and reliable with the safe interfere could vegetation where sites South Auckland and Hauraki Plains to the steep slopes of the western hill country towards Raglan. The soil The Raglan. hill countrySouth Auckland slopes of the western towards and Hauraki the steep to Plains CLIMATE VEGETATION VEGETATION OUR OPERATING ENVIRONMENT OUR OPERATING The Electricity (Hazards from Trees) Regulations 2003. We do this by patrolling, monitoring and recording and recording monitoring patrolling, do this by We Regulations 2003. Trees) Electricity The from (Hazards This adds complexity to the design, construction and operation of our network. construction the design, operation and adds complexity to This the west. winds from with prevailing climate a moderate enjoys region Waikato northernThe The topography of our region varies greatly from the gently undulating landscapes of Central Waikato, Waikato, landscapes of Central undulating the gently from varies greatly of our region topography The T The environment we operate in is an important factor in delivering our services. There are a range of a range are There in is an important operate factor our services. we in delivering environment The As such, our planning systems ensure work commences on obtaining the necessary on commences as soon as work easement ensure such, our planning systems As TOPOGRAPHY • • • • • 2.1.5
n/a 246 (MW) 160 (65%) DEMAND 14 1,208 9 (1%) 2 (0 %) (GWH) 217 (18%) 485 (40%) 86 (35%) 481 (40%) DELIVERED ELECTRICITY 406 278 748 1,846 87,969 72,632 12,059 NUMBER OF ACTIVE ICPS of Waikato to Districtto Board Health erra/Canpac International erra/Canpac Foodstu s Hamilton CityHamilton Council Font University University Waika Solid Energy AFFCO Large Large Non-Domestic Embedded Networks Domestic Streetlights and Unmetered and Unmetered Streetlights Small Scale Generators Distributed TOTAL CUSTOMER GROUP CUSTOMER
Board. E ective engagement with customers requires a targeted approach. Our largest customers are are customers Our largest approach. a targeted requires with customers engagement E ective Board. teams as outlined in Section withteams 2.2.2. Regular undertaken surveys groups, are all other customer across survey customer undertakenthe latest in June 2015. the design and operation of our network. For example additional security levels may be required in the be required additional security example may levels of our network. and operation the design For threshold contained within Part 4 of The Commerce Act 1986, we are exempt from direct and quality price from exempt are Act 1986, we Commerce The 4 of within Part contained threshold regularly consulted on a range of issues important to them through our key account and customer works works and customer issues important of our key account on a range them through consulted to regularly REGULATION WEL supplies electricity to a mix of customers across our CBD, urban and rural environments. environments. urban and rural WEL supplies electricity our CBD, across a mix of customers to We remain in regular contact with all of our major customers to ensure their needs are considered in our considered their needs are ensure to contact with all of our major customers in regular remain We We operate in a highly regulated environment. As we are community owned and our size is below the is below and our size community owned are we As environment. in a highly regulated operate We asset planning and service delivery. In some instances the speci c needs of these customers in uence in uence In the speci c needs of these customers asset planning and service some instances delivery. Our customers range from low-use domestic though to very large users such as Waikato District Health Waikato very domestic though to as users such large low-use from range Our customers connection of some customers, while others require fast response times to fault events to ensure that ensure to fault events times to response fast while others require connection of some customers, are: major customers largest Our ten can continue. operations essential our networks located in Auckland and Cambridge. The breakdown of load by customer group for the for group customer of load by breakdown The in Auckland and Cambridge. our networks located control by the Commerce Commission. We remain subject to all other regulatory controls including subject regulatory all other remain controls to We Commission. Commerce the by control signi cant Information Disclosure requirements. requirements. Disclosure Information signi cant OUR CUSTOMERS CUSTOMER PROFILES CUSTOMER MAJOR CUSTOMERS 2015 year is set out in the table below. 2015 year There are over 86,000 connections across WEL’s traditional network area with an additional 1,800 within network area traditional WEL’s 86,000 connections across over are There Table 2.2.1 Electricity Group and Demand Delivered Customer by Table • • • • • • • 2.2.1 2.2.2 2.2
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2016 30
2016 | WEL ASSET MANAGEMENT PLAN 31 Electricity Delivered (GWh) Delivered Electricity
1240 1220 1200 1180 1160 1140 1120 2016 24 9.2%
PEAK TIME 2015 DEMAND(MW) nergy Delivered (GWh)
E
2014 2013 170 14.1%
ELECTRICITY 2012
DELIVERED (GWH)
2011
2010
2009 2008 . HAM0111 HAM0331 HLY0331 TWH0331 MER0331 0 50
300 250 200 150 100 ressive Enterprises ressive
eak Demand (MW) Demand eak P ENERGY DELIVERED AND PEAK DEMAND ENERGY DELIVERED AND PEAK Prog Pact Group Holdings Group Pact Sealed Air Percentage of WEL Traditional Network Traditional WEL of Percentage Top 10 Customers Top
has generally been at since 2011. since been at has generally For urban customers load is generally high in the morning with a trough during the day and then during the day high in the morning with a trough load is generally urban customers For increasing again in the late afternoon and early evening as residential customers prepare the evening the evening prepare customers afternoon as residential and early again in the late evening increasing meal. Peak load occurs during winter. The rural pro le follows a similar pattern with the addition that a similar pattern follows pro le rural The during winter. load occurs Peak meal. Figure 2.2.3 Electricity Delivered and Peak Demand 2.2.3 Electricity and Peak Delivered Figure Our two largest customers Waikato District Health Board and Hamilton City Council are, like us, suppliers like us, are, District City and Hamilton Council Health Board Waikato customers Our largest two dairy farms peak in summer during milking times in early morning and mid-afternoon. of essential services. Accordingly they warrant special consideration and priority of attention in the event and priority in the event special consideration of attention they warrant services.of essential Accordingly and Emergency Management Act 2002. Defence of the Civil of loss of supply under provisions ELECTRICITY DELIVERED AND DEMAND AND ELECTRICITY DELIVERED 258MW. As illustrated in Figure 2.2.3, electricity delivered has continued to increase while peak demand increase to 2.2.3, electricity has continued delivered in Figure illustrated As 258MW. The majority of customers across our network have two distinct load pro les throughout the day. the day. distinct two throughout load pro les our network majority have The across of customers The total electricity delivered during 2016 is forecast to be 1,219 GWh with a coincident peak demand of with a coincident 1,219 GWh be to electricity total during 2016 is forecast The delivered Table 2.2.2 Major Customers Electricity Delivered and Peak Time Demand Time Electricity 2.2.2 Major Customers and Peak Delivered Table • • • 2.2.3
Figure 2.3.1.1 Figure Map of WEL Networks area N TO HOROTIU GORDONTON HUNTLY HAMIL MARAMARUA ATA TE KAUWH
RAGLAN NGARUAWAHIA lighting and appliances and on an average will only take delivery of electricity of 5,200kWh on an average and and appliances lighting p.a.; AREA NETWORKS WEL in a reduction of 2,000 kWh p.a. of delivered electricity; of delivered p.a. in a reduction of 2,000 kWh includes a strong peak time demand price component and it is evident many of our large customers customers of our large many and it is evident component demand price peak time includes a strong New domestic premises connecting to our network tend to be double glazed with electrically be double glazed to connecting our network e cient tend to New domestic premises as the cost of photovoltaic (PV) installation becomes more a ordable. Each conversion typically results (PV) conversion Each of photovoltaic as the cost a ordable. more becomes installation are actively managing their demand during actively times; these managing are during period. the AMP distributed generators connected to our network in the past year. This increase is expected to continue continue is expected to increase This our network in the past year. connected to generators distributed eventually see electricity used in street lighting drop by up to 80%; and up to see electricity by drop eventually lighting used in street delivered quantity has fallen to 6,700 kWh p.a. from over 8,000 kWh p.a. or 16% in recent years. years. in recent or 16% p.a. 8,000 kWh over from p.a. 6,700 kWh quantity has fallen to delivered since 2013, while their peak demand has declined by 2% on average. Our large customers’ pricing customers’ Our large 2% on average. demand has declined by 2013, while their peak since The use of electric vehicles has commenced. We anticipate the use of electric increase will anticipate vehicles We use of electricThe has commenced. vehicles Our local councils have started to utilise LED technology for street lighting. LED technology could could LED technology lighting. street started for utilise LED technology to have Our local councils Small scale distributed generation conversions are increasing. Approximately 150 new small scale Approximately increasing. are conversions generation Small scale distributed Delivery of electricity to our large customers on average has also declined by approximately 1% p.a. 1% p.a. approximately Delivery also declined by has of electricity on average customers our large to A declining amount of electricity delivered on average to our domestic customers. The average average The our domestic customers. to electricity of A declining amount on average delivered
illustrated in Figure 2.3.1.1 below and 2.3.1.2 on page 33. 2.3.1.1 below in Figure illustrated their function. patterns. Examples include: patterns. We also own and operate small embedded networks in Cambridge and Auckland. Our coverage area is area Our coverage small embedded networks and Auckland. in Cambridge and operate also own We We have observed of electricity in the quantities a number of changes and in peak demand have delivered We Chapter 7. Chapter Our region stretches from Hamilton City in the southeast, to Raglan in the west to Maramarua in the north. Raglan to City to Hamilton in the southeast, in the west from stretches Our region CHANGING ELECTRICITY DELIVERED, PEAK DEMAND AND GENERATION AND GENERATION PEAK DEMAND ELECTRICITY DELIVERED, CHANGING OUR NETWORK NETWORK OVERVIEW NETWORK The impactThe of these changes on our plans is discussed further section in forecasting in the demand This section describes our network and provides an overview of our assets grouped according to to according section an overviewThis of our assets grouped describes our network and provides • • • • • 2.3.1 2.3
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2016 32 2016 | WEL ASSET MANAGEMENT PLAN 33
HALF MOON BAY HALF MOON BAY DANNEMORA FLAGSHIP PORCHESTER ROAD OAKLANDS
KIRKDALE KIRKDALE AN PLACE AN PLACE RY oltage network that then connectsoltage network houses and businesses. that directly to SOUTHGATE SOUTHGATE HULME PLACE BRICK STREET
Figure 2.3.1.2 Map of WEL external networks Figure WEL NETWORKS AREA NETWORKS WEL Low v Distribution assets (11kV) that move power from the zone substations to areas of local supply; areas Distribution to assets (11kV) substations and the zone from power move that Grid Exit Points (GXPs) which connect our network to the National Grid; which connect the National our network to (GXPs) Grid Exit Points Subtransmission circuits and zone substations that transport the bulk supply across the region (33kV); transport that substations the region zone and the bulk supply across circuits Subtransmission
main components: The map on page 34 provides a high level depiction of the GXPs and Subtransmission network. and Subtransmission depiction a high level of the GXPs map on page 34 provides The The network assets that are used to provide electricity to the WEL geographic area consist of four of four consist area WEL geographic electricity provide the used to to are network assets that The • • • • RY D TION ION TION NNECTION TAT ORKS BOUNDA HOEKA TW CKES RD OVERHEAD UNDERGROUN CO NE SUBSTA WEL NE PUKETE COGENERATION ZO HOEKA SUBS PROPOSED 33KV 33KV POINT OF CO SUBSTA WINDFARM CLAUDELANDS PEA ON D LEGEN BORMAN RD CHARTWELL SANDWICH RD HAMILT GORDONTON BHAM DR CT BRYCE ST BRYCE CO THAM ON RD LA PUKETE YS FINLA TIU A KIMIHIA KENT ST GLASGOW ST HORO UWHAT ALON DR ALON TE KA AV LLACE RD LLACE WA HAMPTON DOWNS HAMPTON TA TASMAN RD TASMAN MEREMERE WHA AHIA TA Y AW WHA UNTL WEAVERS H NGARU WHAI KO
TE TE UKU WINDFARM TE UKU
W K TE UKU OVERVIEW IE WOR T ERV GLAN RA OV NE Figure 2.3.1.3 - Map of GXP and Zone Substation Network 2.3.1.3 - Map of GXP and Zone Figure
2015 | WEL A SSET MANAGEMENT PLAN
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2016 3434 34 2016 | WEL ASSET MANAGEMENT PLAN 35
level of backup and security for Hamilton City. City. of backup Hamilton and securitylevel for from Hamilton provides a degree of interconnectivity with Te Kowhai providing an additional providing Kowhai Te with of interconnectivity a degree provides Hamilton from be required. be required. Hamilton GXP supplies electricity at both 33kV and 11kV. Our 33kV subtransmission network Our 33kV subtransmission GXP supplies electricityHamilton both 33kV and 11kV. at Huntly GXP supplies electricity at 33kV. The Huntly GXP can also be supplied from the from GXP can also be supplied Huntly The GXP supplies electricityHuntly 33kV. at primarily of check meters, auxiliary power supplies, load control plants, SCADA and SCADA plants, load control auxiliary supplies, primarily of check meters, power capability GXP. with Hamilton of interconnection has a degree Kowhai Te network from neighbouring Bombay GXP via Meremere and a 33kV subtransmission circuit, should this circuit, and a 33kV subtransmission neighbouring GXP via Meremere Bombay We own some protection and ancillary equipment located at the Hamilton GXP consisting and ancillary GXP consisting some protection Hamilton the own at located equipment We includes This GXP. Kowhai Te and ancillary protection own within the located equipment We We own all the 33kV equipment on site including the 33kV switchgear, protection equipment protection including the 33kV switchgear, on site all the 33kV equipment own We and ancillary equipment. Commissioned in 2005 Te Kowhai GXP supplies electricity at 33kV. The 33kV subtransmission The GXP supplies electricity Kowhai 33kV. at Te in 2005 Commissioned equipment. equipment. communications equipment. communications check meters, auxiliary power supplies, load control plant, SCADA and communications and communications SCADA plant, load control auxiliary supplies, check meters, power Hamilton Huntly GXP GENERAL DESCRIPTION Te Kowhai Te level of security, over and above that provided in the subtransmission network. The CBD distributionThe network. in the subtransmission provided that and above over of security, level Hamilton GXP has the largest supply capacity and is the principal supply point for Hamilton City. City. Hamilton supply capacity GXP has the largest for and is the principal supply point Hamilton interconnecting within the CBD network. The interconnection of the 11kV feeders provides an additional provides of the 11kV feeders interconnection The network. within the CBD interconnecting that supply smaller loads with a single transformer (N security). supply smaller loads with a single transformer that that in turn supply the 11kV distribution network. The subtransmission network is 429km subtransmission The in length and in turnthat supply the 11kV distribution network. customers. to DISTRIBUTION partial backup. We take supply from three GXPs (owned by Transpower) located at Hamilton, Te Kowhai and Huntly. and Huntly. Kowhai Te Hamilton, at located Transpower) by (owned GXPs three take supply from We and overhead lines, generally known generally as feeders. lines, and overhead all but our Raglan and Finlayson zone substations. For Raglan and Finlayson the zone substations are are substations the zone Raglan and Finlayson For substations. zone all but our Raglan and Finlayson Our distribution system takes supply from zone substations and the Hamilton GXP at 11kV. 11kV. GXP at and the Hamilton substations zone takes supply from Our distribution system Our 33kV subtransmission network transports electricity from Transpower’s GXPs to our zone substations our zone to GXPs Transpower’s networkOur transports 33kV subtransmission electricity from distribution transformers and switching stations and consists of approximately 2,600km of 11kV cables of approximately and consists stations and switching distribution transformers criteria discussed further 7. in Chapter except Whatawhata, Finlayson, Raglan and Hampton Downs, which are smaller rural zone substations zone smaller rural which are Raglan Downs, and Hampton Finlayson, Whatawhata, except consists of a 33kV interconnected mesh around Hamilton City and double radial 33kV circuits supplying City 33kV circuits Hamilton and double radial mesh around of a 33kV interconnected consists system has provided a high level of reliability to the CDB and its urban customers. the CDB and its urban customers. to of reliability a high level has provided system supplied from single radial 33kV subtransmission circuits with our 11kV distribution network providing with our 11kV distribution network providing circuits 33kV subtransmission single radial supplied from GXPS SUBTRANSMISSION AND ZONE SUBSTATIONS SUBTRANSMISSION The following sections describe each network component in more detail. sections in more describe network each component following The The level of security supplied available at each zone substation is in accordance with our network security is in accordance substation each zone of security at level supplied available The cables, underground lines on poles and crossarms, of 11kV overhead is comprised distribution system The trunk feeders City Hamilton CBD 11kV distribution of 11kV underground networkThe consists The level of security provided in the majority of security network is known of the subtransmission level provided The as N-1. supply electricity to and continue the network can withstand the loss of one component means that This (N-1) transformers or more two on the network. have substations substations 25 zone zone All are There A general description of assets at each GXP is provided in Table 2.3.1.1. Table in provided description each GXP is of assets at A general Table 2.3.1.1 GXP General Description 2.3.1.1 GXP General Table
covers the small substations and transformers that and transformers the small substations covers ansformers: includes switches and reclosers that are utilised on the distribution system to to utilised on the distribution system are that and reclosers includes switches : includes the 11kV and LV underground cables. underground ables: includes the 11kV and LV overs all the other ancillary assets we utilise in providing services all the other ancillary our customers. utilise in providing overs to assets we Distribution substations and tr Distribution substations Distribution switchgear covers the 11kV and LV conductors, poles and other equipment associated associated and other equipment poles conductors, the 11kV and LV Lines: covers Distribution and LV c Distribution and LV within zone substations. within zone lines. with our overhead includes switching stations and the transformers, switchgear and buildings located and buildings located switchgear and the transformers, stations includes switching Substations: Zone the lines, cables and switchgear associated with the 33kV subtransmission system. with the 33kV subtransmission associated cables and switchgear the lines, Subtransmission: Other assets: c covers the important ancillary assets: covers control used on the network to xed equipment Other system the network.and monitor convert electricityconvert LV. 11kV to from or fault situations. of the network during maintenance change the con guration
high voltage switchgear enclosed or adjacent to the unit and customers are typically supplied from these typically supplied from are customers the unit and to enclosed or adjacent switchgear high voltage LV assets include overhead lines, poles, insulators, cables, supply pillars, fuses and other pillars, supply cables, insulators, poles, lines, assets include overhead LV LOW VOLTAGE NETWORK VOLTAGE LOW Residential berm type substations consist of enclosed ground mounted transformers with integrated with integrated transformers mounted Residential berm enclosed ground of type consist substations the fuses above high voltage with transformers of pole mounted Residential pole type consist substations the to fuses adjacent with high voltage transformers of pole mounted pole typeRural consist substations Industrial and commercial distribution substations typically consist of enclosed, ground mounted mounted ground distribution typicallyIndustrial of enclosed, substations consist commercial and In other areas the 11kV distribution network is mostly overhead lines except where they traverse the they traverse where lines except the 11kV distributionIn network overhead is mostly areas other transformers with integrated high voltage switchgear enclosed or adjacent to the unit. They are either site either site are They the unit. to enclosed or adjacent switchgear high voltage with integrated transformers with underground cables in accordance with district plan requirements. cables in accordance with underground rural or urban, are reticulated with underground cables. with underground reticulated or urban, are rural residential berm, residential pole mounted and rural substations. Each has di erent characteristics. Each has di erent substations. and rural mounted pole berm, residential residential newer residential areas. All recent and new subdivisions, whether they are rural or urban, are reticulated reticulated or urban, are rural whether they are and new subdivisions, recent All areas. residential newer units via fuses and underground LV cables. LV units via fuses and underground cables. underground lines or overhead LV these units via fuses to supplied from are Customers unit. lines. overhead and LV supplied via fuses are Customers unit. More detail on each asset class is included in Chapter 3. detail on each asset class is included in Chapter More We group our assets into asset classes. We have utilised these asset classes throughout the AMP. the AMP. asset classes throughout utilised these have We asset classes. our assets into group We We manage approximately 3,400km of low voltage (LV) lines and cables. Approximately 90% of rural and 90% of rural Approximately lines and cables. 3,400km (LV) voltage of low manage approximately We ancillary equipment. operates these where it is contracted to do so. do to it is contracted these where operates customers is protected using either fuses or circuit breakers (CBs) located within the unit. located (CBs) breakers using either fuses or circuit is protected customers speci c or only distribute electricity to a small number of customers. Low voltage distribution to these distribution to voltage electricityspeci c or only distribute Low of customers. a small number to ASSET CLASSES These asset classes are de ned below and align with those required for Information Disclosure purposes. purposes. Disclosure Information for required with those and align de ned below asset classes are These There are four main types the network, of distribution on four substations are industrial and commercial, There Asset classes utilised throughout this AMP. classes utilised throughout Asset A number of our large customers own distribution networks within their sites. WEL only maintains andWEL only maintains distribution networks own within their sites. customers A number of our large 40% of the urban low voltage network is overhead lines. All new residential subdivisions, whether they are whether they are subdivisions, new residential All lines. network is overhead voltage 40% of the urban low • • • • • • • • 2.3.2
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2016 36 3. ASSET OVERVIEW
84 41 2 53 180 75 55 29 31 21 1767 858 23 1923 965 105
WEL CONDITION SCORE 2 000 0023 000 000 0000 00003 0000 012345
44 60 238 191 125 2646 2911 our distribution and LV line assets. line our distribution LV and km km No. No. No. No. No. UNIT QUANTITY ibes our subtransmission assets. ibes our subtransmission ibes our other assets.
4 3 ASSET CATEGORY Subtransmission Subtransmission Breakers Circuit Subtransmission Cables Subtransmission Lines Zone Substations Zone Transformers Power Other descr assets (3.9) GXPs. Transpower’s installed at own (3.10) lists assets we GXPs WEL at by owned Assets quanti es the population and condition of our assets. and condition the population (3.1):quanti es Population Asset (3.2) descr Subtransmission describes our zone substation assets. substation (3.3) describes our zone Substations Zone describes lines (3.4) Distribution and LV describes our distribution and LV cable assets. cables (3.5) describes our distribution and LV Distribution and LV Distribution substations and transformers (3.6) describes our distribution and substation and transformers Distribution substations assets. transformer (3.7) describesDistribution assets. our distribution switchgear switchgear assets. xed assets (3.8) describes our other system xed Other system SECTION 3.2 3.2.1 Poles 3.2.2 Crossarms 3.2.5 3.2.4 3.2.3 3.3 3.3.1 3.3.2 Switchboards Condition score based on age score Condition Condition score based on age score Condition
For regulatory reporting purposes these condition pro les are translated into the Commerce Commission’s C1 to C4 condition scale in the scale C4 condition C1 to Commission’s the Commerce into regulatory reporting translated are pro les For purposes these condition • • ASSET OVERVIEW ASSET schedules attached to this AMP. The translation from our 0 to 5 condition scale to the Commerce Commission’s prescribed C1 to C4 scales is: C4 scales C1 to prescribed Commission’s the Commerce to scale 5 condition our 0 to from translation The this AMP. schedules attached to C2, 4 is C3 and 5 is C4. C1, 2 and 3 become to 0 and 1 is translated WEL Condition 4 2 3 A summary of the population and condition of our assets is shown in Table 3.1.1 below. The condition is condition The 3.1.1 below. Table A summary in is shown of our assets and condition of the population condition new’ ‘as an asset in 5 represents Condition our assets. grading use for in the scale we presented replacement’. for ‘due 0 when it is condition and an asset is at as follows. • • This chapter describes the population, age pro le, and condition of our assets. The chapter is structured chapter The of our assets. and condition describes age pro le, the population, chapter This • • • • • •
3. 3.1 SUMMARY ASSET POPULATION
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2016 38 2016 | WEL ASSET MANAGEMENT PLAN 39 4 952 57952 70 0 98 18 222 206 589 449 10 17 10 67 513 827 821 134 15 658 0 71 60 196 349 18 685 2656 1900 18 84 474 169 23 19 10343 14177 757 26 337 2177 WEL CONDITION SCORE WEL CONDITION 25 491 959 3050 15323 18844 544 957 34992 13361 20331 001 0 0 00 00 000 000 00 00 0030 0026 0000 00 0 000 00000 012345 5 000041 32 17 676 745 431 115 832 3296 2166 5258 1046 1019 38668 70186 24562 57952 km km km No. No. No. No. No. No. No. No. No. No. No. No. No. No. UNIT QUANTITY ASSET CATEGORY Substation Buildings Distribution and LV Lines Distribution and LV Distribution and LV Distribution and LV conductors Distribution and LV Cables Distribution and LV Distribution Cables LV Cables LV Distribution Substations and Transformers and Distribution Substations Distribution Stations Switching Distribution Transformers Distribution Switchgear Ring Main Units Distribution Circuit Distribution Circuit Breakers Distribution Air Switches Break Distribution Sectionalisers & Reclosers Other System Fixed Assets Fixed Other System Pillars LV Protection Relays Protection Network Management System Load Control Control Load Equipment SECTION 3.3.3 3.4 3.4.1 Poles 3.4.2 Crossarms 3.4.3 3.5 3.5.1 3.5.2 3.6 3.6.1 3.6.2 3.7 3.7.1 3.7.2 3.7.3 3.7.4 3.8 3.8.1 3.8.2 3.8.3 3.8.4 3.8.5 Meters Table 3.1.1 Asset Population and Condition Summary and Condition 3.1.1 Asset Population Table OBABILITY R High Medium Low Very low OF FAILURE REMNANT LIFE P At EOL (<5 years) 5-10 years 10-20 years >20 years eakers ms
HEALTH INDEX
0
0
CONDITION Poor Fair Good 1 Bad Subtransmission poles Subtransmission crossar Subtransmission Subtransmission lines Subtransmission cables Subtransmission br circuit Subtransmission
The subtransmission system transports bulk electricity across the region. It connects Transpower’s GXPs GXPs transportsTranspower’s system subtransmission It bulk electricityThe the region. connects across substations. zone between of interconnection a level It substations. also provides zone our to 33kV and is 429km at network in length, of which 191km operates and subtransmission The is overhead while the underground areas in the rural majority lines are The of the overhead 238km is underground. network areas. the urban is split between and rural category: included within the subtransmission are asset categories following The • • • • • Figure 3.1.2 CBRM Health Indices Figure an asset category and age pro le for been included along with the population, it has an AHI exists Where sections. in the following information condition sections.Each asset category is described in the following Our asset renewal strategy discussed in Chapter 8 utilises the CBRM methodology. In the implementing 8 utilises the CBRM methodology. in Chapter discussed strategy Our asset renewal some of the asset categories. for established an AHI have we CBRM approach of asset measure comprehensive a more generate and risk to environment condition, age, AHIs combine with the AHI and combined from is derived (PoF) of failure A probability score. health than a condition condition new’ ‘as 0 means the asset is in AHI of An a risk establish level. to losses in order consequential of with a high probability means it is near the end of its life an AHI of 10 whereas with a very PoF, low 3.1.2. in Figure is illustrated This failure. ASSET HEALTH INDEX (AHI) ASSET HEALTH 3.2 SUBTRANSMISSION 3.1.1
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70 45 45 Softwood LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY
N Hardwood CONDITIO
P O L E M A T E R I A L Steel
0 1 2 3 4 5 Concrete 0 0 500
800 600 400 200 3000 2500 2000 1500 1000
2000 1800 1600 1400 1200 1000
Number of Poles of Number Number of Poles of Number CONDITION OF SUBTRANSMISSION POLES SUBTRANSMISSION POLES BY TYPE SUBTRANSMISSION ASSET poles (both softwood and hardwood) Wooden Poles Steel Concrete poles Concrete Figure 3.2.1.2 Condition of Subtransmission Poles of Subtransmission 3.2.1.2 Condition Figure Table 3.2.1.1 Life Expectancy Poles of Subtransmission Table CONDITION inspections Field 3.2.1.2 below. in Figure poles is shown of the subtransmission pro le condition The poles is good. of subtransmission the condition in general that indicate Figure 3.2.1.1 Subtransmission Pole Types Pole 3.2.1.1 Subtransmission Figure AGE PROFILE 3.2.3.2, as in Figure shown lines, as subtransmission the same age pro le poles share Subtransmission a shorter have poles that and steel this is wooden to exception The the same time. installed at they are the due to concrete New poles installed are earlier replacement. require expectancylife and therefore dictate otherwise. considerations unless site expectancy, life increased POPULATION construction the distribution material. by shows 3.2.1.1 Figure poles. 2,646 subtransmission have We poles remaining. and steel hardwood with a small number of softwood, poles, majority concrete The are SUBTRANSMISSION POLES SUBTRANSMISSION 3.2.1 Hardwood L STEEL Age (Years) WOOD C R O S S A R M M A T E R I A Steel 10 15 20 25 30 35 40 45 50 55 60 0 05 500 2500 2000 1500 1000 0
50
400 350 300 250 200 150 100 Number of Crossarms of Number SUBTRANSMISSION CROSSARMS BY TYPE SUBTRANSMISSION Crossarms of Number AGE PROFILE OF SUBTRANSMISSION CROSSARMS AGE PROFILE OF SUBTRANSMISSION Figure 3.2.2.2 Age Pro le of Subtransmission Crossarm of Subtransmission Pro le 3.2.2.2 Age Figure AGE PROFILE 3.2.2.2. in Figure shown is crossarms of the subtransmission age pro le The Figure 3.2.2.1 Subtransmission Crossarm Types Crossarm 3.2.2.1 Subtransmission Figure POPULATION It is our current majority vast with the crossarms being hardwood. 2,911 subtransmission have We expectancy life their increased on the network and due to crossarms steel install galvanised practice to cost. whole of life resultant lower SUBTRANSMISSION CROSSARMS SUBTRANSMISSION 3.2.2
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Condition 60 35 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY AAAC) C) 012345 0
500
2500 2000 1500 1000 Number of Crossarms of Number CONDITION OF SUBTRANSMISSION CROSSARMS CONDITION OF SUBTRANSMISSION Copper (ACSR) reinforced conductor steel Aluminium aluminium (AA All ( aluminium alloy All
Hardwood crossarms Hardwood ASSET crossarms Steel Table 3.2.2.1 Life Expectancy Crossarms of Subtransmission Table Subtransmission lines connect GXPs to the zone substations at 33kV, and are overhead conductors. conductors. overhead and are 33kV, at substations the zone to lines connectSubtransmission GXPs POPULATION 21km and 12km urban 158km area within the Hamilton areas, lines in rural of subtransmission have We Figure 3.2.2.3 Condition of Subtransmission Crossarms of Subtransmission 3.2.2.3 Condition Figure CONDITION inspections Field 3.2.2.2. in Figure is shown crossarms of the subtransmission pro le condition The is good. crossarms of subtransmission the condition in general that indicate in Huntly. used on our network. types of conductors are Four of conductors (wire). lines consist Subtransmission • • • • of high cost conductor installed on the network. the original was the 1980s the relatively Copper Since was ACSR of various aluminium conductors commenced. its use and the installation precluded copper as been adopted have AAAC and AAC recently but more the rst aluminium conductor utilised, network standards. Wooden crossarms have half the life expectancy during a once least at half the life line so must be replaced of the have crossarms Wooden lifetime. line’s 3.2.3 LINES SUBTRANSMISSION Copper
E AAAC Age (Years)
C O N D U C T O R T Y P AAC
10 15 20 25 30 35 40 45 50 55 ACSR 05 0
80 60 40 20 5 0
35 30 25 20 15 10 160 140 120 100
Length (km) Length ) (km ength SUBTRANSMISSION CONDUCTOR BY TYPE SUBTRANSMISSION L AGE PROFILE OF SUBTRANSMISSION CONDUCTOR AGE PROFILE OF SUBTRANSMISSION Figure 3.2.3.2 Age Pro le of Subtransmission Lines of Subtransmission Pro le 3.2.3.2 Age Figure Figure 3.2.3.1 Subtransmission Conductor Types Conductor 3.2.3.1 Subtransmission Figure AGE PROFILE expectancy life The of conductors is lines. of our subtransmission the age pro le 3.2.3.2 shows Figure been periods of major have There the length of line installed in each year. shows graph The 58 years. the construction to of (2010) corresponds ve year spike at The lines. in our subtransmission investment Weavers and Horotiu In(1998), the link between 17 year Farm. Wind Uku Te the line to a subtransmission in strengthened network were of the subtransmission A number of areas constructed. was substations (1977). 38 year Figure 3.2.3.1 shows the quantity of subtransmission conductor by type. conductor the quantity by of subtransmission shows 3.2.3.1 Figure
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2016 44 2016 | WEL ASSET MANAGEMENT PLAN 45
5
Raglan Ngaruawahia
XLPE Huntly CONDITION LOCATION
PILC Hamilton
01234 Rural 0 80 60 40 20 120 100
0
Length (km) Length 80 60 40 20
160 140 120 100
) (km ength L CONDITION OF SUBTRANSMISSION LINES CONDITION OF SUBTRANSMISSION LOCATION OF SUBTRANSMISSION CABLES Figure 3.2.4.1 Location of Subtransmission Cables of Subtransmission 3.2.4.1 Location Figure Figure 3.2.3.3 Condition of Subtransmission Lines of Subtransmission 3.2.3.3 Condition Figure underground. placed 33kV and are at substations the zone to cables connectSubtransmission GXPs POPULATION the geographical 3.2.4.1 shows 266km with 81km Figure cables, subtransmission of have in Hamilton. We Cross-linked types two cables in use. of subtransmission are There cables. of our subtransmission location various types of are remainder The (XLPE)use. 88% of cables in polyethene cables comprise aluminium aluminium XLPE cables to PILC copper from move The cables. copper (PILC) lead covered paper insulated, single core on the use of XLPE insulated standardised have We cables began in the mid-1970s. insulated screens. wire aluminium conductor cables with copper CONDITION inspections that indicate Field 3.2.3.3. in Figure lines is shown of the subtransmission pro le condition The lines is good. of subtransmission the condition in general, 3.2.4 CABLES SUBTRANSMISSION ), and vacuum 6 XLPE AGE YEARS PILC 70 45 10 15 20 25 30 35 40 45 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY 05 0
60 50 40 30 20 10 AGE PROFILE OF SUBTRANSMISSION CABLES AGE PROFILE OF SUBTRANSMISSION (km) Length XLPE Cables CABLE TYPE CABLE Cables PILC Table 3.2.4.1 Life Expectancy Cables of Subtransmission Table The majority of subtransmission CBs are located within substations on incoming circuits. Their main Their circuits. incoming on within substations located majorityThe CBs are of subtransmission can be operated that device A CB is also a switching each substation. at function transformers protect is to of electricity the ow it interrupts automatically if the operated When either manually or automatically. level. a predetermined exceeds current POPULATION (SF in use on our network; types gas insulated of CB are oil, Three 125 33kV CBs. own We CONDITION only issues The good. be generally to cables is considered of our subtransmission condition The been attributed have failures These number of cables. in a limited failures joint are date to experienced poor workmanship of partialto section on that of the cable network during A programme installation. the extent of these problems. determine to has been initiated tests discharge Figure 3.2.4.2 Age Pro le of Subtransmission Cables of Subtransmission Pro le 3.2.4.2 Age Figure 3.2.4.1. Table expectancy life The in of the cables is shown WEL does not have any gas or oil lled subtransmission cables in the network. cables in the or oil lled subtransmission gas any have WEL does not AGE PROFILE 33 to from ranges cables age of PILC The cables. subtransmission for age pro le the 3.2.4.2 shows Figure of the XLPE age average weighted The old. 45 years new to in age from and XLPE cables range 45 years due was ve peak in year The old. is 38 years age of the PILC average the weighted and cables is nine years 10 was peak in year The Whatawhata. and Kowhai Te connecting of the cables the installation Avalon, to Uku windfarm project.. Te as part the cables installed due to of the breakers. Typically the older oil circuit breakers were installed in outdoor switchyards, while the newer while the newer switchyards, installed in outdoor were breakers the older oil circuit Typically breakers. the older outdoor years, Over recent often installed indoors. more are and vacuum) types (gas insulated only 24 % of the eet remains Consequently indoor switchgear. to has been upgraded switchgear type. the distribution by 3.2.5.1 shows Figure outdoors. 3.2.5 SUBTRANSMISSION CBS
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2016 46
2016 | WEL ASSET MANAGEMENT PLAN 47 Vacuum (Indoor) Vacuum OUTDOOR AGE YEARS INDOOR 45 60
CIRCUIT BREAKER TYPE Mineral Oil (Outdoor) Oil Mineral 10 15 20 25 30 35 40 45 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY
type.
6 SF6 (Indoor) SF6 05 5 0 0 30 25 20 15 10
80 60 40 20
120 100
Number of CBs of Number Number of Breakers of Number SUBTRANSMISSION BREAKER TYPES SUBTRANSMISSION AGE PROFILE OF SUBTRANSMISSION CBs AGE PROFILE OF SUBTRANSMISSION Indoor Breakers Outdoor Breakers Outdoor ASSET Table 3.2.5.1 Life Expectancy CBs of Subtransmission Table The expected lives are shown in Table 3.2.5.1. Table in shown are expected lives The Figure 3.2.5.2 Age Pro le of Subtransmission CBs of Subtransmission Pro le 3.2.5.2 Age Figure Figure 3.2.5.1 Subtransmission CBs by Type CBs by 3.2.5.1 Subtransmission Figure AGE PROFILE on the network. of the CBs installed the the age pro le Most 3.2.5.2 shows 33kV CBs installed over Figure indoor SF were last 10 years
CONDITION ds 012345 0
80 70 60 50 40 30 20 10
er transformers Number of CBs of Number CONDITION OF SUBTRANSMISSION CBs CONDITION OF SUBTRANSMISSION Pow Indoor switchboar Substation buildings Substation
voltage (11kV).voltage POPULATION 10MVA two are There 2015. 1960 to from ranging dates with installation transformers 44 power own We readily are that substations in our zone located strategically transformers power spare 15MVA and two when needed. available 15/23 MVA at majority rated The are transformers. distribution of our power the size 3.3.1.1 shows Figure air-cooling. with forced Power transformers reduce the voltage from the subtransmission voltage (33kV) voltage subtransmission the from the voltage distribution reduce to transformers Power Substations include buildings, outdoor structures, foundations, fences, oil interception equipment and equipment oil interception fences, foundations, structures, outdoor include buildings, Substations at located items major plant The supplies. and DC power auxiliary AC voltage such as low equipment switchgear. and the associated transformers include power substations asset categories: three are asset class there substation the zone Within • • Zone substations transform power from the 33kV subtransmission to the 11kV distribution voltage. distribution the 11kV voltage. to the 33kV subtransmission from power transform substations Zone circuits, substation zone di erent load between the capability switch to provide stations Switching security or planned maintenance. of supply during providing fault conditions thereby 2012. Six of the the 1950s to from ranging with construction sites dates substations 25 zone operate We transformers, instrument outdoor which include 33kV CBs, switchyards outdoor have substations 25 zone N security N-1 security in have and eight have substations 17 of the zone and busbars. insulators switches, in further which is discussed WEL security 7. standard, detail in Chapter with the accordance • Figure 3.2.5.3 Condition of Subtransmission CBs of Subtransmission 3.2.5.3 Condition Figure CONDITION in practices and are maintenance with recognised in accordance maintained regularly 33kV CBs are All 3.2.5.3. in Figure CBs is shown of the subtransmission pro le condition The good condition. POWER TRANSFORMERS POWER 3.3.1 3.3 ZONE SUBSTATIONS
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2016 48 2016 | WEL ASSET MANAGEMENT PLAN 49 15/23 15 AGE YEARS 10 TRANSFORMER RATING MVA 7.5 10 15 20 25 30 35 40 45 50 55 5 05
5 0
5 4 3 2 1 0
30 25 20 15 10 Number of Transformers of Number Number of Transformers of Number DISTRIBUTION OF POWER TRANSFORMER RATINGS DISTRIBUTION OF AGE PROFILE OF POWER TRANSFORMERS Figure 3.3.1.2 Age Pro le of Power Transformers of Power Pro le 3.3.1.2 Age Figure expectancy life The of power old. 21 years currently eet is transformer age of the power average The this lifespan. achieve to refurbishment a mid-life undergo Some transformers is 60 years. transformers their but because the load has exceeded not because of old age, upgraded, often are Transformers another smaller one. to one substation from the transformers rotate In we such situations capacity. CONDITION (DGA) Gas Analysis utilising annual Dissolved by is monitored of the transformers condition internal The then correlated are results Test life. of remaining an indication give to analysis and periodic furans and (SFRA) Response Analysis Frequency such as Sweep testing other diagnostic from with the results in a good are transformers our power that shows testing of the results overall The tests. Factor Dissipation 3.3.1.3. in Figure is illustrated This condition. AGE PROFILE 3.3.1.2. in Figure is shown transformers of our power age pro le The Figure 3.3.1.1 Distribution of Power Transformer by Ratings by Transformer 3.3.1.1 Distribution of Power Figure AGE YEARS CONDITION 10 15 20 25 30 35 40 45 50 012345 05 7 6 5 4 3 2 1 0
5 0
45 40 35 30 25 20 15 10
Number of Switchboards of Number Number of Power Transformers Power of Number AGE PROFILE OF SWITCHBOARDS CONDITION OF POWER TRANSFORMERS CONDITION OF POWER Figure 3.3.2.1 Age Pro le of Indoor Switchboards Pro le 3.3.2.1 Age Figure Switchboards contain switchgear that provides control and protection for the network. There are two are There the network. for and protection control provides that switchgear contain Switchboards GIS is (GIS). and Gas Insulated Switchgear (AIS) main types Insulated Switchgear of switchgear; Air with outdoor substations zone Rural indoors and installed in our newly constructed substations. located indoor. to being converted progressively are switchyards POPULATION AIS and nine GIS within our subtransmission with 51 being 60 33kV and 11kV switchboards, own We is a re ection of the age of the substations. the type of switchboards network. Generally, AGE PROFILE is age of switchboards average The 3.3.2.1. in Figure is shown of the indoor switchboards age pro le The expectancy is 60 years. life The of switchboards 18 years. Figure 3.3.1.3 Condition of Power Transformers of Power 3.3.1.3 Condition Figure 3.3.2 SWITCHBOARDS
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2016 50 2016 | WEL ASSET MANAGEMENT PLAN 51 AGE YEARS CONDITION 10 15 20 25 30 35 40 45 012345 05 7 6 5 4 3 2 1 0
5 0
35 30 25 20 15 10 Number of Substations of Number Number of Switchboards of Number AGE PROFILE OF SUBSTATION BUILDINGS CONDITION OF SWITCHBOARDS Figure 3.3.3.1 Age Pro le of Substation Buildings Pro le 3.3.3.1 Age Figure Figure 3.3.2.2 Condition of Switchboards 3.3.2.2 Condition Figure unauthorised entry factors and prevent against environmental protection buildings provide Substation members of the public. risk safety to reducing POPULATION WEL operates. that sites substation the 25 zone buildings across substation 32 zone are In there total the time of construction. the at As regulatory and requirements meet speci c site built to were These designs. di ering decades they have several over construction occurred of our substations AGE PROFILE for the age pro le 3.3.3.1 shows Figure buildings is 50 years. of the substation working design life The buildings. substation CONDITION for be a problem to appears discharge Partial is good. of the majority condition of our switchboards The some of the older ones. SUBSTATION BUILDINGS SUBSTATION 3.3.3
To be assessed be To
work planned work Strengthening
CONDITION > 33% < 75% of NBS of 75% < 33% >
012345 >75%+ of NBS of >75%+ 8 6 4 2 0 20 18 16 14 12 10
5 0 Number of Buildings of Number BUILDINGS SEISMIC CONDITION OF SUBSTATION 25 20 15 10 CONDITION OF ZONE SUBSTATION BUILDINGS CONDITION OF ZONE All new WEL Zone Substation buildings will be designed and built to IL4 standard. Seismic strengthening IL4 standard. and built to buildings will be designed Substation WEL Zone new All practical IL4 and a minimum of 75% of National shall be to buildings where substation zone of existing then a level the required a building to it is not practical strengthen to Where (NBS). Building Standard will be carried the most practical determine assessment out to level. cost-risk Figure 3.3.3.3 Distribution of Substation Building Seismic Conditions Figure Figure 3.3.3.2 Condition of Zone Substation Buildings of Zone 3.3.3.2 Condition Figure of a programme WEL commenced also been assessed. of most of the buildings has seismic ratings The in shown are date to of the seismic assessment results The in 2007. specialised seismic assessment Figure 3.3.3.3. Figure CONDITION quantity surveyors part as registered of a nancial also assessed by buildings were Our substation as the majority in good condition, that of them are found assessment The in 2013. process valuation usually the buildings are refurbished is substantially a substation When 3.3.3.2. in Figure illustrated rebuilt. or completely reinforced
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2016 52 2016 | WEL ASSET MANAGEMENT PLAN 53
Steel Hardwood POLE MATERIAL
V LINES
Softwood Concrete 0 msDistribution and LV conductors msDistribution LV and
5000
40000 35000 30000 25000 20000 15000 10000 Number of Poles of Number DISTRIBUTION OF POLE MATERIAL IN HV AND LV NETWORKS DISTRIBUTION OF POLE MATERIAL Poles Crossar
AGE PROFILE an average poles have poles and wooden Both concrete of our poles. the age pro les 3.4.1.2 shows Figure age of 31 years. Figure 3.4.1.1 Distribution of Pole Material in HV and LV Networks in HV and LV Material 3.4.1.1 Distribution of Pole Figure The distribution network conveys electricity from zone substations to the LV network. The LV network LV The network. the LV electricity to substations zone from distribution network conveys The cables. lines and underground network overhead includes The supplies the majority of our customers. 6,000km, line. of which 55% is overhead length is approximately total The Lines: Distribution included within and LV which are asset categories sectionThis describes the following • • contact with conductors and preventing in isolating a key role play They support lines. the overhead Poles people and property. POPULATION construction the distribution by material. 3.4.1.1 shows Figure 38,600 poles. approximately own We poles remaining. and steel with a small number of softwood, hardwood poles, majority concrete The are DISTRIBUTION AND DISTRIBUTION L 3.4.1 POLES 3.4
60 65 70 75 80 WOOD POLES 50 55 40 45 AGE YEARS CONDITION 30 35 25 45 70 20 CONCRETE POLES/STEEL STRUCTURE 15 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY 10 012345 0 05 8000 6000 4000 2000 0 20000 18000 16000 14000 12000 10000
500
3500 3000 2500 2000 1500 1000 Poles of Number Number of Poles of Number CONDITION OF POLES AGE PROFILE OF POLES AGE PROFILE ASSET Poles Concrete Wooden Poles Wooden Table 3.4.1.1 Life Expectancy of HV and LV Poles 3.4.1.1 Life Expectancy of HV and LV Table life expectancy. expectancy. life The majority of concrete poles are in good condition as the average age is young compared to their to compared age is young as the average in good condition poles are majorityThe of concrete Figure 3.4.1.3 Condition of Poles 3.4.1.3 Condition Figure CONDITION 3.4.1.3. in Figure is shown distribution condition of pole The The life expectancy of concrete poles is 70 years and 45 years for wooden poles as illustrated in Table Table in poles as illustrated wooden for 45 years and expectancy poles is 70 years life The of concrete ones. than the concrete end of life poles is older and closer to of wooden population The 3.4.1.1. Figure 3.4.1.2 Age Pro le of Poles Pro le 3.4.1.2 Age Figure
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2016 54 2016 | WEL ASSET MANAGEMENT PLAN 55 Result 10+) No 9-10)( 7-8) (8-9)( 5-6) (6-7)( HI CATEGORY (0-1) (1-2) (2-3) (3-4) (4-5)( 0
5000
25000 20000 15000 10000 Number of Poles of Number POLES HEALTH INDEX PROFILE POLES HEALTH INDEX Crossarms are found at the top of our poles. They support They the conductors and separate and insulate of our poles. the top at found are Crossarms hardwood, constructed from were all of our crossarms recently Until phase conductors. each of the three currently are We steel. to on HV circuits new crossarms for standard changed our design have we however due to and expect be installing these next crossarms to year, composite the use of breglass investigating WEL has also installed expectancy less weight. similar life but signi cantly having steel these crossarms to the pole. the line directlyvirtual to attaches that a type of insulator which are crossarms expectancy half the life of the concrete which have wooden, the majority are As crossarms of the existing of the pole. the life through half way replaced generally they are poles, POPULATION in as shown wooden majorityThe are of crossarms installed on our network. 70,186 crossarms are There 3.4.2.1. Figure Figure 3.4.1.4 Poles Health Index Pro le 3.4.1.4 Poles Figure There are approximately 500 hardwood poles remaining on our network that range in condition from from in condition range on our networkthat poles remaining 500 hardwood approximately are There ago and 15 years network poles on the approximately installing hardwood WEL stopped poor. good to hardwood All period. in the AMP be replaced poles will need to most wooden as such, it is expected that as identi ed were and poles that level ground at hidden rot for and monitored been tested poles have ones. concrete with been replaced have needing replacement of our poles. AHI pro le the 3.4.1.4 shows Figure 3.4.2 CROSSARMS
rtual i SteelV AGE YEARS WOOD METAL MATERIAL 35 60 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY Wood 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 05 0 0
70000 60000 50000 40000 30000 20000 10000
6000 5000 4000 3000 2000 1000
Number of Crossarms of Number Number of Crossarms of Number AGE PROFILE OF CROSSARMS DISTRIBUTION OF CROSSARM MATERIAL DISTRIBUTION OF Metal Crossarms ASSET Crossarms Wooden Figure 3.4.2.2 Age Pro le of Crossarms Pro le 3.4.2.2 Age Figure is 60 expectancy and metal crossarms is 35 years 3.4.2.1 the life crossarms of wooden Table in shown As there Consequently their expected lives. exceed already crossarms of the wooden many Therefore, years. to designed strategies 8 details the maintenance Chapter especially of the insulators. rate, is a high failure these issues. address 30 years. AGE PROFILE age of the eet is average The and metal crossarms. of wooden the age pro le 3.4.2.2 shows Figure Figure 3.4.2.1 Distribution Material of Crossarm Figure Table 3.4.2.1 Life Expectancy of Crossarms Table
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2016 56 2016 | WEL ASSET MANAGEMENT PLAN 57 Result 10+) No 9-10)( 7-8) (8-9)( 5-6) (6-7)( HI CATEGORY CONDITION V CONDUCTORS 012345 (0-1) (1-2) (2-3) (3-4) (4-5)( 0 0
5000
9000 8000 7000 6000 5000 4000 3000 2000 1000 40000 35000 30000 25000 20000 15000 10000
Number of Crossarms of Number CONDITION RATING OF CROSSARMS CONDITION RATING Assets of Number CROSSARM HEALTH INDEX PROFILE Figure 3.4.2.4 Crossarm Health Index Pro le 3.4.2.4 Crossarm Figure network. lines transport on the LV our customers electricity to substations zone from Distribution and LV POPULATION of which 1,940km lines, is 11kV distribution lines and 3,296km distribution own and LV of overhead We 1,356km is LV. Figure 3.4.2.3 Condition of Distribution Crossarms 3.4.2.3 Condition Figure number a signi cant that indicates graph The 3.4.2.4. in Figure is shown our crossarms for AHI pro le The AHI and the factors assess an used to The be replaced. they will need to the stage where approaching are in section explained asset are 3.1. CONDITION 3.4.2.3. in Figure is shown distribution of our crossarms condition The DISTRIBUTION AND DISTRIBUTION L 3.4.3
)
2
Iodine
Copper Bare (35mm Bare Copper
Krypton
)
2
)
2
Taupiri
ABC (35mm ABC Copper Bare (40mm Bare Copper
)
2
Aluminium Medium Aluminium
ABC (95mm ABC Dog
Te Kauwhata Te
Beetle
Raglan
Other Aluminium Light Aluminium
)
2
Stoat
) LOCATION
2 CONDUCTOR TYPE
Copper PVC (25mm PVC Copper Ngaruawahia
Flourine
Copper PVC (16mm PVC Copper
Mink Huntly
Dingo
)
2
)
2
Hamilton
)
2
Copper Bare (25mm Bare Copper
Copper Bare (70mm Bare Copper Ferret
Rural
)
2 Copper PVC (70mm PVC Copper
0 Gopher 500
0
3000 2500 2000 1500 1000
Copper Bare (16mm Bare Copper
900 800 700 600 500 400 300 200 100
Length (km) Length DISTRIBUTION AND LV CONDUCTOR TYPES DISTRIBUTION AND (km) Length LOCATION OF DISTRIBUTION LINES Figure 3.4.3.2 Location of Distribution of LV Lines of Distribution of LV 3.4.3.2 Location Figure AGE PROFILE age of average The conductors. of all types of the distribution the age pro le and LV 3.4.3.3 shows Figure conductors is 33 years. our overhead Figure 3.4.3.1 Distribution and LV Conductor Types Conductor 3.4.3.1 Distribution and LV Figure Urban areas lines is primarily areas. in the rural of the distribution and LV the location 3.4.3.2 shows Figure cables. with underground typically reticulated are Figure 3.4.3.1 shows the distribution of overhead conductor types. the distribution of overhead shows 3.4.3.1 Figure
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2016 58 2016 | WEL ASSET MANAGEMENT PLAN 59
2 AGE YEARS CONDITION 10 15 20 25 30 35 40 45 50 55 60 012345 05 0 0
50 500
350 300 250 200 150 100 2500 2000 1500 1000
Length (km) Length Length (km) Length CONDITION OF DISTRIBUTION AND LV CONDUCTORS CONDITION OF DISTRIBUTION AND S DISTRIBUTION AND LV CONDUCTOR AGE PROFILE OF copper conductors which are being analysed for replacement through the CBRM model. the CBRM model. through replacement for being analysed conductors are which copper Figure 3.4.3.4 Condition of Distribution and LV Conductor of Distribution and LV 3.4.3.4 Condition Figure 500km of 3.4.3.5. Approximately is further condition The supported in Figure the AHI shown by 16mm predominantly are These poor in condition. becoming line conductors are distribution overhead Figure 3.4.3.3 Age Pro le of HV and LV Conductor of HV and LV Pro le 3.4.3.3 Age Figure of the network during expansion the the rapid to conductors spike in installing of new corresponds The expectancy depending on conductor life type.. The 60 years of conductors to is 55 1970s. CONDITION 3.4.3.4. in Figure line conductors is shown distribution of overhead condition The Result 10+) No 9-10)( copper type. This issue and This type. copper 2 7-8) (8-9)( 5-6) (6-7)( HI CATEGORY V CABLES (0-1) (1-2) (2-3) (3-4) (4-5)( 0
900 800 700 600 500 400 300 200 100
1000 Length (km) Length DISTRIBUTION CONDUCTOR HEALTH INDEX PROFILE HEALTH INDEX CONDUCTOR DISTRIBUTION remedial actions further discussed remedial are 8. in Chapter Distribution cables form partDistribution cables form of the 11kV distribution network. POPULATION PILC. 1976 was the 11kV cable installed prior of All to cables. 676km own of 11kV underground We with predominantly area CBD installed in the Hamilton Between XLPE cable was 1976 and 1990 Most been XLPE. of the 11kV have 1990 most cable installations Since installed in other areas. PILC is copper. aluminium conductor (71%), the remainder network is now underground AGE PROFILE and cable is 39 years age of PILC average The of the distribution cable. the age pro le 3.5.1 shows Figure age of XLPE cable is 15 years. the average The distribution network conveys electricity from the zone substations to our customers via the LV via the LV our customers electricity to substations the zone from distribution network conveys The length is total The cables. lines and underground network is a mixture of overhead The network. sectionThis describes our Distribution cables. 6,000km, 45% of which is underground approximately Cables. cables and LV The majority of the conductors with an AHI of 7 or greater are the 16 mm are majorityThe of the conductors with an AHI of 7 or greater Figure 3.4.3.5 Distribution Conductor Health Index Pro le 3.4.3.5 Distribution Health Index Pro le Conductor Figure DISTRIBUTION AND AND DISTRIBUTION L 3.5.1 CABLES DISTRIBUTION 3.5
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2016 60 2016 | WEL ASSET MANAGEMENT PLAN 61 AGE YEARS PILC XLPE 45 70 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY 10 15 20 25 30 35 40 45 50 55 05
5 0
45 40 35 30 25 20 15 10 AGE PROFILE OF DISTRIBUTION CABLE OF DISTRIBUTION AGE PROFILE (km) Length ASSET XLPE Cables PILC Cables PILC The LV cables convey electricity from distribution transformers to customers at a domestic voltage level. a domestic voltage at customers electricity to distribution transformers from cables convey LV The POPULATION is XLPE. and the rest of which 7km cable, is PILC underground 2,165km of installed LV have We 3.5.2.2 shows Figure area. XLPE cable is in the Hamilton the majority that of LV 3.5.2.1 shows Figure in Huntly. with a small amount cable is in Hamilton, PILC virtually all the LV While some of the XLPE cables may be reaching the end of their expected life, experience has shown that has shown experience the end of their expected life, be reaching some of the XLPE cables may While much longer than 45 years. for operated XLPE cables can usually be safely CONDITION cable health of underground main indication The assess. to cable is hard of underground condition The factor A key determining on it. of cable health is the quality occur is the number of faults that of its built around the CBD was 11kV ring around The in good condition. generally cables are The installation. regarding 3.5.1 as the records in gure this is not shown very1945 and still supplies customers reliably, not reliable. are the installation Figure 3.5.1 Age Pro le of Distribution Cable Pro le 3.5.1 Age Figure 3.5.1. Table expectancy life The in of cables is shown Table 3.5.1 Life Expectancy of Distribution Cables Table LV CABLES LV 3.5.2
Raglan
Taupiri
Te Kauwhata Te
Ngaruawahia
Raglan
Taupiri
Subdivisions External LOCATION
LOCATION
Te Kauwhata Te
Ngaruawahia
Rural
Huntly
Rural
Huntly Hamilton
0 Hamilton 800 600 400 200
1800 1600 1400 1200 1000
7 6 5 4 3 2 1 0
Lenght (km) Lenght Length (km) Length DISTRIBUTION OF LV XLPE TYPE CABLE DISTRIBUTION OF DISTRIBUTION OF LV PILC TYPE CABLE DISTRIBUTION OF LV PILC TYPE Figure 3.5.2.2 Location of LV PILC Type Cable Type PILC of LV 3.5.2.2 Location Figure AGE PROFILE age of PILC average The cables in the network. LV of the underground the age pro le 3.5.2.3 shows Figure age of XLPE and the average the years, been installed over have because small amounts cable is 65 years, cable is 21 years. Figure 3.5.2.1 Location of LV XLPE Type Cable XLPE Type of LV 3.5.2.1 Location Figure 3.5.2.2. in Figure as shown Cable PILC is similar for situation This
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2016 62 2016 | WEL ASSET MANAGEMENT PLAN 63 AGE YEARS PILC LENGTH KM KM XLPE LENGTH 45 70 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY ormers. 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 05 0 80 60 40 20
140
120 100 AGE PROFILE OF LV CABLE AGE PROFILE OF LV (km) Length Distribution switching stations; and stations; Distribution switching Distribution transf
ASSET XLPE Cables Cables PILC Table 3.5.2.1 Life Expectancy of LV Cable 3.5.2.1 Life Expectancy of LV Table There are two asset categories within the distribution substations and transformers asset class: within the distribution and transformers substations asset categories two are There • • 11kV circuits interconnected between the capability switch to provide stations Distribution switching security or planned maintenance. of supply during providing fault conditions POPULATION 1967 and 2012. installed between were that stations 17 11kV switching WEL operates CONDITION the number of failures date to However access. cables is dicult to LV of underground condition The external factors damage from been caused by majorityThe of faults have has been small. experienced Hamilton. around bre of ultra-fast with the installation associated such as the works Figure 3.5.2.3 Age Pro le of LV Cable of LV Pro le 3.5.2.3 Age Figure expectancy life a design expectancy 45 years of a life and XLPE cables have of 70 years cables have PILC However, expectancy. end of their life the reaching 3.5.2.1. Some of the cables are Table in as shown than 45 years. much longer for operated XLPE can be safely that shows experience operational DISTRIBUTION SWITCHING STATIONS DISTRIBUTION AND TRANSFORMERS 3.6.1 3.6 SUBSTATIONS DISTRIBUTION
CONDITION AGE YEARS 10 15 20 25 30 35 40 45 50 55 012345 05
8 6 4 2 0 5 4 3 2 1 0
12 10
Number of Switching Stations Switching of Number Number of Switching Subs Switching of Number CONDITION OF SWITCHING STATIONS AGE PROFILE OF SWITCHING STATIONS AGE PROFILE OF Figure 3.6.1.3. Figure The seismic ratings of most of the buildings have also been assessed. WEL commenced a programme of a programme WEL commenced also been assessed. of most of the buildings have seismic ratings The in shown are date to of the seismic assessment results The in 2007. specialised seismic assessment Figure 3.6.1.2 Condition of Switching Substations of Switching 3.6.1.2 Condition Figure Figure 3.6.1.1 Age Pro le of Switching Substations of Switching Pro le 3.6.1.1 Age Figure CONDITION 3.6.1.2. in Figure is shown stations of switching pro le condition The AGE PROFILE 3.6.1.1. in Figure is shown stations of switching age pro le The
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2016 64 2016 | WEL ASSET MANAGEMENT PLAN 65
To be assessed be To
work planned work
Strengthening
> 33% < 75% of NBS of 75% < 33% > >75%+ of NBS of >75%+ 7 6 5 4 3 2 1 0 OF SWITCHING STATION BUILDINGS SEISMIC CONDITION Distribution transformers step down electricity supply from the 11kV distribution voltage to LV. electricity LV. down to step the 11kV distribution voltage Distribution supply from transformers within statutory remains limits. the supply voltage so adjustments allow Transformers the Christchurch Following on poles or the ground. either mounted are Distribution transformers mounted. ground earthquakes always industry are transformers larger practice has changed so that POPULATION transformers. mounted and 1,860 ground transformers 3,898 pole mounted own We sizes. number of prede ned in a limited transformers purchase of scale we economies Due to ground Standard 1, 30, 50 and 100kVA. utilise are we sizes transformer pole mounted standard The 100, 200, 300, 500, 750 and 1,000kVA. are sizes transformer mounted 3.6.2.1. in Figure is shown in each size of transformers population The Figure 3.6.1.3 Seismic Condition of Switching Substations 3.6.1.3 Seismic of Switching Condition Figure Seismic strengthening IL4 standard. and built to buildings will be designed station WEL switching new All IL3 and a minimum of 75% of NBS. be to shall practical, where buildings, station switching of existing will be analysis then a cost-risk level the required a building to it is not practical strengthen to Where carried the most practical determine out to level. DISTRIBUTION TRANSFORMERS DISTRIBUTION 3.6.2 2000 500 1 000 1 50 200 300 400 500 750 01 10 POLE MOUNTED GROUND MOUNTED kVA Rating AGE YEARS POLE MOUNTED GROUND MOUNTED 20 25 30 50 75 15 10 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 15 0.5 05 0 0 800 600 400 200
50
2000 1800 1600 1400 1200 1000 300 250 200 150 100
Number of Transformers of Number Number of Transformers of Number AGE PROFILE OF DISTRIBUTION TRANSFORMERS POPULATION OF DISTRIBUTION TRANSFORMERS OF DISTRIBUTION POPULATION CONDITION of our distribution transformers. pro le the condition 3.6.2.3 shows Figure Figure 3.6.2.2 Age Pro le of Distribution Transformers Pro le 3.6.2.2 Age Figure Figure 3.6.2.1 Population of Distribution Transformers 3.6.2.1 Population Figure AGE PROFILE age is 19 years. average The of our distribution transformers. the age pro le 3.6.2.2 shows Figure programme an active replacement by driven was the last 20 years made over investment signi cant The in load necessitating and the growth (often pole mounted) in poor condition of older transformers compared is young of distribution population transformers the overall Consequently capacity upgrades. expectancy, their life exceeded have that a small number of transformers are There asset eets. other to e ectively. still operating but they are
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2016 66 2016 | WEL ASSET MANAGEMENT PLAN 67 Result 10+) No 9-10)( 7-8) (8-9)( HI CATEGORY 5-6) (6-7)( and Vacuum types) Vacuum and CONDITION 6 s). 012345 tionalisers. (0-1) (1-2) (2-3) (3-4) (4-5)( 0 eakers. 0 500
3500 3000 2500 2000 1500 1000 500
3500 3000 2500 2000 1500 1000
Number of Transformers of Number CONDITION OF DISTRIBUTION TRANSFORMERS CONDITION OF DISTRIBUTION Assets of Number DISTRIBUTION TRANSFORMERS HEALTH INDEX PROFILE DISTRIBUTION TRANSFORMERS HEALTH Ring Main Units (RMU Circuit Br Circuit (includes the modern SF Switches Break Air Reclosers and Sec
Four switch types exist within our network. These are: These types switch within our network. exist Four • Figure 3.6.2.4 Distribution Transformers Health Index Pro le 3.6.2.4 Distribution Transformers Figure with a transformers The the eet is in good health. that show and the health indices pro le condition The expectancy. their life exceeded have those that to correspond ‘8-9’, very of poor health index • • Figure 3.6.2.3 Condition of Distribution Transformers 3.6.2.3 Condition Figure AHI and the factors an assess The used to 3.6.2.4. in Figure is shown distribution transformers AHI for The in section explained asset are 3.1. • sections. typeEach switch in the following is discussed 3.7 SWITCHGEAR DISTRIBUTION F6 SF6 AGE YEARS OIL TYPE LS OI 10 15 20 25 30 35 40 45 50 55 60 gas-insulated switchgear. switchgear. gas-insulated 6 05 0 0
50
80 70 60 50 40 30 20 10 500 450 400 350 300 250 200 150 100
Number of RMUs of Number AGE PROFILE OF RMUS RMUs of Number TYPE OF RMUs Figure 3.7.1.2 Age Pro le of RMUs Pro le 3.7.1.2 Age Figure Figure 3.7.1.1 RMU Types Figure AGE PROFILE age is 15 years. average The 3.7.1.2. in Figure is shown of RMUs age pro le The RMUs are ground mounted switchgear that connects to 11kV cables. There are 745 RMUs in operation on in operation 745 RMUs are There connects 11kV cables. that to switchgear mounted ground are RMUs with typically oil insulated are Older RMUs old. years 60 approximately to new from the network ranging being SF all new RMUs POPULATION 3.7.1.1. in Figure a mixture as shown lled and gas lled types, of oil RMU are The RMUS 3.7.1
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2016 68 2016 | WEL ASSET MANAGEMENT PLAN 69
Result 10+) No 9-10)( 7-8) (8-9)( 5-6) (6-7)( HI CATEGORY CONDITION 40 55 LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY 012345 (0-1) (1-2) (2-3) (3-4) (4-5)( 0 50 0 300 250 200 150 100
50
500 450 400 350 300 250 200 150 100
Number of Assets of Number Number of RMUs of Number RMU HEALTH INDEX CONDITION OF RMUs ASSET RMU Oil Filled Gas Filled RMU Gas Filled Figure 3.7.1.4 RMU Health Index Pro le 3.7.1.4 RMU Health Index Pro le Figure A few oil lled RMUs failed from an incorrect set up of the internal contacts. Consequently a rigorous a rigorous Consequently contacts. an incorrectthe internal set up of failed from oil lled RMUs A few this of a result As replaced. were the RMUs appropriate Where instigated. was inspection programme is shown RMUs for AHI pro le The is good. RMUs for and health pro le condition the overall programme in section explained AHI and the factors are 3.1. assess an asset used to The 3.7.1.4. in Figure Figure 3.7.1.3 Condition of RMUs 3.7.1.3 Condition Figure CONDITION 3.7.1.3. in Figure is shown distribution of RMU conditions The The life expectancy of RMUs is detailed in Table 3.7.1.1. Table expectancy life The detailed in is of RMUs Table 3.7.1.1 Life Expectancy of RMUs Table
SF6 VACUUM OIL AGE YEARS TYPE SF6 and vacuum as shown in Figure 3.7.2.1. in Figure as shown and vacuum 6 and vacuum types. and vacuum 6 OIL 10 15 20 25 30 35 40 45 50 55 60 VACUUM 05 0
50 5 0
50 45 40 35 30 25 20 15 10 250 200 150 100
Number of CBs of Number Number of Cbs of Number DISTRIBUTION CB TYPES AGE PROFILE OF DISTRIBUTION CBs The oil- lled CBs are the oldest followed by SF by the oldest followed oil- lled CBs are The Figure 3.7.2.2 Age Pro le of Distribution CBs Pro le 3.7.2.2 Age Figure Figure 3.7.2.1 Distribution CB Types Figure AGE PROFILE age of the eet is 20 years. average The 3.7.2.2. in Figure is shown age pro le The a mix of technologies which which includea mix of technologies oil lled, SF Distribution CBs are used to control and protect the distribution network. The CB is a switching device device CB is a switching The the distribution and protect network. control used to Distribution CBs are the they interrupt automatically operating When manually or automatically. can be either operated that limits. predetermined of electricity ow exceeds if the current POPULATION are CBs deployed The old. 45 years over new to in age from 430 CBs on our network which range have We DISTRIBUTION CIRCUIT BREAKERS (CBS) BREAKERS CIRCUIT DISTRIBUTION 3.7.2
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2016 70 2016 | WEL ASSET MANAGEMENT PLAN 71
5 55 55 45 CBs are now used for all new installations, as they have they have as all new installations, used for now CBs are 6 CONDITION LIFE EXPECTANCY (YEARS) LIFE EXPECTANCY 1234 0 0
700 600 500 400 300 200 100 Number of ABSs of Number 6 CONDITION OF ABSs Vacuum ASSET Oil SF Figure 3.7.2.3 Condition of CBs 3.7.2.3 Condition Figure Since the problems. number maintenance no signi cant are there indicates monitoring Routine condition the expectancy life exceed limits, is likely to operational below is well breakers of the circuit of operations and SF Vacuum type each of CB. for life standard as load categorised ABSs are and switching. isolation installed on the network and used for ABSs are through is owing when current switch open a load break able to are or non-load break. Operators break is owing. only open when no current to is designed switch A non-load break it. POPULATION room. control our centralised from remotely 77 can be operated approximately 1,046 ABSs where own We in of our ABSs is shown location The safety. SAIDI and improving of reducing has the dual advantage This provides capability areas in rural control as remote areas proportion in the rural 3.7.3.1. A large are Figure bene t than in urban areas. greater CONDITION 3.7.2.3. of CBs is summarised in Figure condition The The life expectancy of CBs by type is shown in Table 3.7.2.1. Table expectancy life The type in by of CBs is shown low maintenance requirements. maintenance low Table 3.7.2.1 Life Expectancy of Distribution CBs Table DISTRIBUTION AIR BREAK SWITCHES (ABS) AIR BREAK DISTRIBUTION 3.7.3
Taupiri
Te Kauwhata Te Raglan AGE YEARS
LOCATION
Ngaruawahia
Huntly Hamilton
10 15 20 25 30 35 40 45 50 55 60 65 70 75 Rural 0
05 600 500 400 300 200 100 Number of ABSs of Number 0
70 60 50 40 30 20 10
AGE PROFILE OF ABSs DISTRIBUTION OF ABSs DISTRIBUTION OF Number of ABSs of Number Figure 3.7.3.2 Age Pro le of ABs Pro le 3.7.3.2 Age Figure our ABSs is discussed further for in programme replacement The expectancy life The of ABSs is 35 years. 8. Chapter CONDITION of ABSs is shown AHI pro le The 3.7.3.3. in Figure as re ected good, of ABSs is generally condition The an which signi es a medium AHI value, number of ABSs have a substantial indicates 3.7.3.4 and in Figure this is discussed address to strategy renewal The period. the AMP over of asset degradation rate increasing 8. in Chapter Figure 3.7.3.1 Distribution of ABSs Figure AGE PROFILE age is 22 years. average The 3.7.3.2. in Figure of ABSs is shown age pro le The
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2016 72 2016 | WEL ASSET MANAGEMENT PLAN 73 Result 10+) No 5 9-10)( 7-8) (8-9)( 5-6) (6-7)( HI CATEGORY CONDITION 1234 0 (0-1) (1-2) (2-3) (3-4) (4-5)( 0 50 0 300 250 200 150 100
700 600 500 400 300 200 100
Number of ABSs of Number Number of Assets of Number CONDITION OF ABSs ABS HEALTH INDEX PROFILE Sectionalisers to used in conjunction circuit-opening self-contained, devices with reclosers are sections faulted a fault of the network. isolate locate automatically to Sectionalisers operators also allow one fault. any by a ected as minimising the number of customers as well and quickly, accurately more is a circuit after itbreaker close the breaker can automatically equipped with a mechanism that A recloser, detect momentary the used to and interrupt Reclosers a fault. are has been opened due to faults and have the line subject to the fault. to power restore ability automatically to Figure 3.7.3.4 ABS Health Index Pro le Figure of the eet is in only about a third shows but the health index is good, of the ABS eet condition The and the extra assessment of the condition lies in the nature the di erence for reason The fair condition. is based on a visual assessment condition The factors of the health index. included in the assessment failure. does not include weaknesses such as impending insulator inspection, provided so the information to factors such as proximity old age of the eet and environmental the relatively for AHI accounts The AHI. age in particularThe on the above in uence has a strong and the sea. waterways Figure 3.7.3.3 Condition Pro le of ABs Pro le 3.7.3.3 Condition Figure DISTRIBUTION RECLOSERS AND SECTIONALISERS RECLOSERS DISTRIBUTION 3.7.4 40 35 RECLOSERS 30 Enclosed 25 RECLOSER 20 DROPOUTS SECTIONALISERS AGE YEARS 15 Type of Recloser or Sectionaliser SECTIONALISER 10 Dropout ENCLOSED SECTIONALISERS 05 0 80 60 40 20 120 100
5 0
25 20 15 10
Number of Reclosers and Sectionalisers and Reclosers of Number Number of Reclosers and Sectionalisers and Reclosers of Number RECLOSERS AND SECTIONALISERS BY TYPE RECLOSERS AND SECTIONALISERS BY TYPE RECLOSERS AND SECTIONALISERS Figure 3.7.4.2 Age Pro le of Reclosers & Sectionalisers Pro le 3.7.4.2 Age Figure years. age of the eet is ve average The expectancy life The of sectionalisers is 40 years. and reclosers AGE PROFILE number of dropout and sectionalisers. A large of the reclosers age pro le 3.7.4.2 shows Figure programme, part in 2004 and 2005 which was installed sectionalisers improvement were of a reliability and are been problematic these units have reliability the ability improve while the sectionalisers to have replacement. for targeted now Figure 3.7.4.1 Distribution of Recloser & Sectionaliser Types Figure POPULATION sectionalisers a mix of the dropout and enclosed are There 51 sectionalisers own and 64 reclosers. We sectionalisers on our network as and reclosers shown in 3.7.4.1. Figure
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2016 74 2016 | WEL ASSET MANAGEMENT PLAN 75 Result 10+) No 9-10)( 7-8) (8-9)( 5-6) (6-7)( CONDITION HI CATEGORY 012345 (0-1) (1-2) (2-3) (3-4) (4-5)( 0 70 60 50 40 30 20 10 0
90 80 70 60 50 40 30 20 10
100
Number of Reclosers and Sectionalisers and Reclosers of Number Number of Assets of Number RECLOSERS AND SECTIONALISERS HEALTH INDEX PROFILE RECLOSERS AND SECTIONALISERS CONDITION OF RECLOSERS AND SECTIONALISERS CONDITION OF RECLOSERS Figure 3.7.4.4 Reclosers & Sectionalisers Health Index Pro le Figure overall. the eet is in good condition young majority a large of the eet is comparatively Since Figure 3.7.4.4 shows the AHI of the sectionalisers and reclosers. The AHI is furtherThe in section explained 3.1. the AHI of the sectionalisers 3.7.4.4 shows and reclosers. Figure Figure 3.7.4.3 Condition of Reclosers & Sectionalisers 3.7.4.3 Condition Figure CONDITION is only done testing Therefore sectionalisers of old Routine testing their reliability. is detrimental to good in generally are reclosers All has occurred. an incorrect operation that is an indication when there periodically. maintained and battery are protection Ancillarycondition. systems such as COMMs devices 3.7.4.3. in Figure is shown pro le condition The AGE YEARS 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 05 0 ection Relays
800 600 400 200
1400 1200 1000 Number of Pillars of Number AGE PROFILE OF LV PILLARS LV Pillars LV Prot NMS Equipment Control Load Meters
CONDITION but if the lid is open they in good condition, are They 3.8.1.2. in Figure pillars is shown of LV condition The regularly. patrolled can be a public health riskso are Figure 3.8.1.1 Age Pro le of LV Pillars of LV Pro le 3.8.1.1 Age Figure The LV pillars provide termination points for LV cables, as well as fusing and isolation points. points. as fusing and isolation as well cables, LV for points termination pillars provide LV The POPULATION pillars; distribution pillars and service the Distribution pillars are pillars. types two of LV are There close to usually located are They easy back feeding. for and allow supplies, LV larger connection for points and a service feeder main to Service of connection the point the main LV between pillars are centres. town pillars on the network. 24,562 LV are There the customer. AGE PROFILE 3.8.1.1. in Figure pillars is shown of LV age pro le The • • • • • This section covers the electrical protection, load control equipment and other system xed assets and is xed and other system equipment the electrical section load control protection, This covers asset class: structured by LV PILLARS LV 3.8.1 3.8 ASSETS FIXED SYSTEM OTHER
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2016 76 2016 | WEL ASSET MANAGEMENT PLAN 77 Numeric CONDITION TYPE OF PROTECTION ElectroMechanical 012345 0 0 500 400 300 200 100
8000 6000 4000 2000
14000 12000 10000
Number of PIllars of Number Number of Protection Equipment Protection of Number TYPE OF PROTECTION EQUIPMENT CONDITION OF LV PILLARS CONDITION OF LV Figure 3.8.2.1 Type of Protection Equipment of Protection 3.8.2.1 Type Figure Figure 3.8.1.2 Condition of LV Pillars of LV 3.8.1.2 Condition Figure Electrical is the primary protection are the electricity within system safety relays network. Protection act to quickly a second. thousandths of required and tripwithin a few a CB POPULATION with with a mixture of electromechanical and numeric relays, protection in total, 831 relays own We below. 3.8.2.1 in Figure is shown distribution of relays The the older relays. electromechanical representing 3.8.2 RELAYS PROTECTION NUMERIC AGE YEARS CONDITION ELECTROMECHANICAL 10 15 20 25 30 35 40 45 50 55 012345 05 0
700 600 500 400 300 200 100 0
80 70 60 50 40 30 20 10
Number of Protection Equipment Protection of Number AGE PROFILE OF PROTECTION EQUIPMENT AGE PROFILE OF PROTECTION Equipment Protection of Number CONDITION OF PROTECTION EQUIPMENT In managing numerical relays the con guration data is critical to the correct operation of the relays in the of the relays the correct operation is critical to data the con guration In numerical relays managing database. uses a protection WEL of this data the integrity ensure In to eld. order Figure 3.8.2.3 Condition of Protection Equipment of Protection 3.8.2.3 Condition Figure Figure 3.8.2.2 Age Pro le of Protection Equipment of Protection Pro le 3.8.2.2 Age Figure expectancy life all typesThe of for on our network is 19 years. relays of the protection age average The is 30 years. relays protection CONDITION is discussed furtherThis in need replacing. but the older relays is good, relays of the newer condition The 3.8.2.3. in Figure is shown distribution of their condition The 8. Chapter AGE PROFILE equipment. of the protection the age pro le 3.8.2.2 illustrates Figure
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2016 78 2016 | WEL ASSET MANAGEMENT PLAN 79 Poletop LOCATION Ripple Plant Control Substation 0
50
250 200 150 100 Number of RTUs of Number DISTRIBUTION OF RTUS Distribution Management System (DMS); Distribution Management System and (OMS); Outage Management System with smart integration. information meter Taker, Call Trouble
Figure 3.8.3.1 Location of Remote Terminal Units Terminal of Remote 3.8.3.1 Location Figure The NMS enables the fast and ecient control of the electricity network for the operator. It of the consists of the electricity the operator. control NMS enables the fast and ecient network for The with our SCADA integrated software package systems storage and data Fusion General Electric PowerOn Units Terminal network includes Remote Supervisory (SCADA) The Acquisition Data And network. Control of key business bene t The time. in real equipment room the control back to communicate (RTUs) that network, of the management as provide and ecient as well reliable the safe, enhance is to the system service. customer e ective subsystems: of the following NMS consists The • • • users and it to It and disseminates of the NMS. time information collects DMS is the core the real The easily see to operators the DMS is the connectivity of A key element allows model that other subsystems. (preparation, steps management all switching Itthe e ects of actual also controls and planned switching. is a particularlyThis all stages. throughout logic safety built in so can enforce and execution) validation perspective. powerful a safety aspect especially from of the system, of prioritisation and administration aid in the management, to designed OMS is an application The call taker customer associates OMS automatically The outages on the network and individual customers. this OMS do To supplying them. devices the respective and to the one incident of calls to calls and clusters and the connectivity relationship of the DMS. transformer (ICP) to Point on the Installation Control relies fault location. improve the OMS to with has been integrated the Smart from data Boxes ‘Last gasp’ information The Dispatch. to vital information calls and provides customer records Taker Call Trouble The faults. of faults or likely future predict the location OMS to with the the calls is integrated from derived as the well as team WEL dispatch the internal It to is available analysis. It post event can also be used for sta . external after-hours call centre System Management, System authorisation hierarchy. functionality NMS in a secure to is controlled Access di erent Only provide View Report or Engineering, Access Dispatcher, Taker, Call Operator, Administration, browser. a web or through installed on a workstation can be via a full client Access access. of system levels POPULATION improved provide to or replaced being upgraded progressively older eet are The 343 RTUs. own We of our RTUs. the location 3.8.3.1 shows Figure functionality capability. and communications NETWORK MANAGEMENT SYSTEM (NMS) SYSTEM MANAGEMENT NETWORK 3.8.3 30 23 15 AGE YEARS 10 05 0
80 60 40 20
160 140 120 100 Number of Units of Number AGE PROFILE OF NMS AND RELATED EQUIPMENT NMS AND RELATED EQUIPMENT AGE PROFILE OF Load control is an important is an part control Load peak loads on the network. of managing the NMS It from is initiated located the ripple injection to the ripple signals which in turn relays plants signal control which provides of the ripple injection consists equipment and ripple plants relays. control Load site. each customers at network monitor to intelligence centralised within the NMS provides system load management The service load within of interruptible control and managing expected demand, forecasting peak demand, functionality load management Furthermore is used targets. demand does not exceed ensure to levels the load by provided Demand Other (RCPD). controls Peak Coincident Regional manage the total to control. tari rate and meter lighting include street system management POPULATION 283Hz. at ripple 33kV static injection sets which operate three 11kV static sets and two own We exist. issues propagation other signal and where GXPs at located is generally Equipment Control Load Weavers GXP and Kowhai Te GXP, the Hamilton at located Speci cally the 33kV injection are plants 11kV zone and Hamilton Pukete at located sets are 11kV static The the Northern for substation area. substations. region the central across premises customer installed at were Between new ripple 2004 and 2006 relays for of the justi cation Part the northern left was with the old relays. region of the network. However, with in the northerninstalling Smart the opportunity was the old ripple relays Boxes region replace to has been switched the old ripple plant nished, project is now This the Smart to new ones tted Boxes. o and decommissioned. AGE PROFILE is equipment of our load control pro le age The expectancy is 20 years. plant life The of a load control 3.8.4. in Figure shown Figure 3.8.3.2 Age Pro le of NMS Infrastructure Pro le 3.8.3.2 Age Figure CONDITION in March replaced hardware is good with all computer NMS equipment room of the control condition The 2017. in March be completed next to is planned The software upgrade 2015. AGE PROFILE NMS software initially commissioned was The 15 years. of the NMS software lifecycle is approximately The 2015. in March completed was the last upgrade 2010 and in December age is 8.5 average The expectancy life The of the supporting is 15 years. the RTUs, including infrastructure, 3.8.3.2. in Figure (RTUs) is shown equipment of NMS related age pro le The years. LOAD CONTROL EQUIPMENT CONTROL LOAD 3.8.4
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2016 80 2016 | WEL ASSET MANAGEMENT PLAN 81 2015 2014 2013 AGE YEARS 10 15 20 25 30 2012 2011 05 0 3 2 1 0
5000
Number os Sets os Number 30000 25000 20000 15000 10000 Number of installed meters installed of Number AGE PROFILE OF LOAD CONTROLLERS AGE PROFILE OF SMART METERS INSTALLED PER YEAR Figure 3.8.5 Smart Installed per Year Meters Figure Figure 3.8.4 Age Pro le of Load Controllers of Load Pro le 3.8.4 Age Figure CONDITION expectancycondition within their life in good generally are plants and are load control The about the information smart Further meters. LV to down 33kV meters from of meters WEL has a range support that within sectionsystems is contained Smart 1.9.4. Boxes POPULATION operation, load control, protection, revenue for used are and distribution meters subtransmission The vast The smart installed. meters 57,952 LV WEL has currently and network protection. fault management approximately except meters, in series with revenue installed as check meters majority are meters of these loggers at WEL has also installed a small number of data meters. used as revenue currently 500 which are work. smart All meters investigative for as required can be relocated which of special interest, locations qualitycan also act data information. loggers returning as data AGE PROFILE smart voltage low The meters is 3 years. and distribution meters age of the subtransmission average The under the Electricity meters installed as compliant requiring are Industry 2010 (Code), Code Participation their total and inspection over management maintenance and a controlled strict auditing of procedures 3.8.5. in Figure is shown years recent installed over number of SmartThe Boxes span of 15 years. life METERS 3.8.5
ection relays s are always in stock so not included in the critical spares list explicitly. The zone transformers will be transformers zone The list explicitly. so not included in the critical spares in stock always s are 33kV and 11kV air break switches 33kV and 11kV air break 4km 33kV line of overhead batterySubstation bank Prot equipment communication Substation transformers 15MVA two and 10MVA two transformers, zone Four breaker One 33kV circuit 33kV and 11kV sectionalisers and reclosers
The core software packages within WEL are an Enterprise Resource Planning system (ERP system), a (ERP system), system Planning Resource an Enterprise WEL are software packages core The within the include systems focused and the NMS. Smaller and more (GeoIS) System Information Geographic and improves monitors WEL continuously and the Smart system head end. management Box vegetation framework. an information through qualitythe data within these systems SYSTEM (GEOIS) GEOGRAPHIC INFORMATION the most basic level so at area, geographical a large over distributed WEL are assets managed by The information this spatial GeoIS contains The of each asset. location knowWEL needs to the geographical describing the electrical data GeoIS also contains of assets, The attributes as asset speci cations. as well (which includes property landbase data maps details), topological boundaries and owner connectivity, GeoIS is the primaryThe tool with other systems. Some is integrated of this data and aerial photography. assets. locate assisting eld sta to for We own our Head Oce building and the depot for our eld sta . These buildings are 7 and 8 years 7 and 8 years buildings are These our eld sta . our Head Oce own building and the depot for We • RMU should bridges River Waikato sides of the the networkopposite and on across geographically distributed in a disaster. be destroyed in very Both buildings are eciency Our star energy Head Oce rating. has a four old respectively. good condition. We hold the following critical spares reserved for emergency reserved conditions: for critical spares hold the following We • • • • • • • We have three emergency generators, one in the new Disaster Recovery Centre (DRC), the Recovery one for one in the new Disaster Centre emergency three generators, have We is only the DRC site at generator new 100kVA The the old DRC. at and depot and one oce corporate old and in is six years generator 100kVA depot’s The 5). (condition condition old and in excellent a year 4). (condition good condition This section not directly partThis describes are the asset classes that network. of the normal of the operation CONDITION and the Code under the maintained are meters voltage of all these assets is good; all low condition The housed indoors. are meters subtransmission COMPUTER HARDWARE, SOFTWARE AND DATA SOFTWARE COMPUTER HARDWARE, HEAD OFFICE AND DEPOT BUILDINGS AND DEPOT HEAD OFFICE EMERGENCY CRITICAL SPARES EMERGENCY CRITICAL OTHER ASSETS OTHER 3.9.4 3.9.3 3.9.2 3.9 3.9.1 BACKUP GENERATORS
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2016 82 2016 | WEL ASSET MANAGEMENT PLAN 83
tion and enhancement of mobility solutions. tion and enhancement ved reporting through the application of Business Intelligence; and of Business Intelligence; reporting the application ved through Impro Implementa
NMS is discussed in equipment NMS is described section in load control The 1.8.3 and the associated section 1.8.4. MANAGEMENT DATABASE VEGETATION removal. manage the tracking better to of vegetation WEL in order by commissioned was application This It a landbase and GeoIS interface is recorded extract. from has a graphical which is derived vegetation All includes the priority, Information against a span or sub‐span of the line. and registered in the system created are Job cards as required. and other notes noti cations work, previous previous species, owner, the into information update done to are eld patrols and direct eld work. Periodic the system from be visually observed issues to mapping environment. in a spatial interface tree The allows system. regulations. with the vegetation comply WEL to in allowing is a key element system The SMART METER support that Spring of applications Network (SSN) head end hosts a suite Silver The the Smart Box is a agreement and the contractual States in the United head end itself is hosted The implementation. interface. via a web WEL oce in the is accessed application The agreement. “Software as a Service” the head end via an to WEL oce the from ows trac and other application devices from trac Data Internet VPN. METER MANAGEMENT ADVANCED used for Meter Management module within the SSN head end is the main application Advanced The reports schedules, setting up and exports. and for points) access relays, (meters, devices managing and alarms from along with events can be monitored cycle states life in various number of devices The selectable can be performed at of devices frequencies and control On demand interrogation devices. scheduled intervals. obtained at are services. and events Smartusing web readings meter Box The GeoIS aims to leverage existing data and present it in a way that decision makers can easily decision makers that it in a way and present data existing leverage GeoIS to aims The which it leverages to the degree increase the GeoIS is to for focuses One of the strategic comprehend. all levels. the bene t of decision makers at for data company existing a means of and is also the company across savings cost provides of aerial photography purchase The include the criticality addition project, initiatives enhancement data Other recent quality. data improving and aerial cable, bundled controllers light street generation, of distributed implementation of easements, criticality the GeoISThe project leverages features. of vertical as communication as well heights recording is particularly addition of easements The important for decisions. optimise asset replacement to data a full model to a relational from upgrade The risks legal and responsibilities. the associated managing reporting. eciencies in compliance improved model has enabled spatial (ERP) SYSTEM ENTERPRISE RESOURCE PLANNING and procurement. capital works maintenance, supports asset management, an ERP system, nance, SAP, In party addition a third delivery. works scheduling package for purchased was particular with a associated all costs of work. piece which capture orders, is based on work system The of productivity a measure and eciency provides of the eld sta , this data from derived Information Asset the Financial added to are the close of capital jobs the costs At control. which in turn aids cost of its asset base. knows the value WEL always so Register, SAP supports module in and capital work maintenance of all maintenance plant the management The management as the inventory as well undertaken application, orders the work on the network through planned create to module enables engineers maintenance The applications. and purchasing important occur. when faults schedules and capture work information maintenance in the functionality include: improvements Continuous • •
t t t ing equipment ing equipment ing equipment ection relays ection relays ection relays RTUs Prot 33kV Switchgear Meter RTUs Prot equipmen Communications Ripple Plant (load control equipment) Ripple (load control Plant Meter RTUs Prot equipmen Communications Ripple Plant (load control equipment) Ripple (load control Plant Meter Communications equipmen Communications
• • • • • • • • • GXP HUNTLY assets. GXP has the following Huntly • • • • • GXP TE KOWHAI assets. GXP has the following Kowhai Te The WEL owned assets located at GXPs are covered in the above sections. However, for clarity for they are sections. However, in the above covered are GXPs at assets located WEL owned The equipment. and load control metering include switchgear, generally They summarised below. GXP HAMILTON assets. GXP has the following Hamilton • Therefore we are progressively developing our systems and processes to aid the capture and retention of and retention aid the capture to and processes our systems developing progressively are we Therefore being developed reporting are and associated tools systems good quality management Meter data data. resulted setting of priorities have and so far decisions, asset management improved leading to in house, is an on-going development and The the next 10 years. of $10-15M over savings in asset management tools. available or commercially the lack of either published information to due process iterative and vehicles. equipment test equipment, assets including safety a number of miscellaneous have We as needed. is replaced equipment and test safety The that WEL revealed undertaken analysis by Financial eet is leased. vehicle WEL’s of a third Approximately vehicle As vehicles. its own WEL owned if advantage nancial and operational a signi cant was there replacements. WEL is purchasing leases expire METER DATA MANAGEMENT METER DATA it depends upon. data as the source is only as good derived the information that recognise We OTHER OPERATIONAL ASSETS OTHER OPERATIONAL 3.10 GXPS AT WEL BY ASSETS OWNED 3.9.5
| WEL ASSET MANAGEMENT PLAN
2016 84 4. APPROACH TO ASSET MANAGEMENT 4. APPROACH TO ASSET MANAGEMENT
This chapter describes our approach to asset management. Asset management is the core of what we do and as such our approach is fundamental to achieving the service level outcomes sought by our customers and stakeholders. Within this context this chapter covers the following: • Stakeholder Requirements (4.1) describes the performance requirements expected from each of our stakeholders. These form the basis for the level of investment and expenditure required to meet these expectations; • Asset Management Framework (4.2) describes the strategic approach and framework we utilise in managing and developing our assets over the AMP period; • Asset Life Cycle (4.3) explains our long-term whole of life approach to asset management; • Risk Management Framework (4.4) describes our risk management approach, speci cally in relation to network assets; and • Asset Management Performance Assessment (4.5) describes our asset management performance and improvement initiatives. This section discusses our assessment using the Asset Management Maturity Assessment Tool (AMMAT) prescribed by the Commence Commission.
4.1 STAKEHOLDER REQUIREMENTS
Chapter 2 identi ed our stakeholders. In this section we describe our understanding of our stakeholders and our environmental management requirements. The remainder of this section is structured to describe the requirements of: • Our customers • Retailers • Community • Environment management • Regulators • Transpower (including in their role as SO) 2016 • Service providers • Sta |
WEL ASSET MANAGEMENT PLAN • Board of Directors. Their requirements and expectations are described below. Stakeholder requirements are incorporated into our asset management practices through the metrics we use to measure our performance and in our network design and security standards. The metrics used to measure our performance against these requirements is described in Chapter 6 and our design and security standards are discussed in Chapter 7.
CUSTOMER REQUIREMENTS Our customers were last surveyed in June 2015. The survey informs us of customers’ views about the price and quality of service that we provide. Table 4.1 below compares our actual performance to our customers’ expectations of average power outages per customer, measured in minutes (SAIDI). It also includes a measure of the industry average for each sector. This was determined by averaging the SAIDI recorded against electrical distribution companies that are either largely urban or largely rural. This was a weighted average therefore it takes into account the number of customers in each company.
86 The companies used for the urban benchmark were: • Electricity Invercargill • Nelson Electricity • Wellington Electricity • WEL – Urban. The companies used for the rural benchmark were: • Alpine Energy • Electricity Ashburton • Eastland Network • Horizon Energy • MainPower NZ • Marlborough Lines • Northpower • The Lines Company • Top Energy • Network Waitaki • Westpower • WEL – Rural.
CUSTOMER ACTUAL INDUSTRY CUSTOMER CUSTOMER GROUP PERFORMANCE WEIGHTED EXPECTATIONS EXPECTATIONS 2015 AVERAGE FEBRUARY 2014 JUNE 2015 (MINUTES) 2015 (MINUTES) (MINUTES) (MINUTES)
Urban 50 41 122 103
Rural 329 406 145 104
All Customers 106 316 126 103
Table 4.1 Customer Outage Expectations
Of particular signi cance is that the survey results indicate that our rural customers’ expectation of performance improvement, through the reduction of the duration and number of outages, is a 28% reduction in outage minutes. Our current performance comfortably exceeds urban customers’
expectations but falls well below that of rural customers. A comparison of our current urban and rural 2016 performance and recent trends in these are provided in more detail in Chapter 6. |
The survey also indicated that our customers expect us to maintain our current cost structure. Of the rural WEL ASSET MANAGEMENT PLAN customers surveyed 94% indicated that they would not want an increase in reliability if it would require additional cost to the customer. There is a large focus in this AMP on improving rural performance and we are targeting a signi cant improvement in this area; however our expectation is that, even after challenging ourselves to improve, innovate and with reallocation our available resources, the rural network performance may still fall short of our customers’ expectations of performance improvement during the AMP period. Our rural performance improvement initiatives will largely come from the renewal of aging assets in these areas and is discussed in Chapter 8. Our large customers communicate directly with us about their expectations and requirements. Our commercial and customer project teams are set up to interact with them on a day-to-day basis.
87 COMMUNITY Public safety and community prosperity (economic and social) are primary concerns for our community. Our assets form part of the landscape in which our communities live and work. Accordingly public safety is a key concern and consideration in our asset management planning, equipment design and network operations. These requirements are re ected in our safety objectives and performance measures and implementation of a Public Safety Management System. WEL contributes to the community’s prosperity on many levels but primarily through the safe and e cient delivery of our services.
ENVIRONMENTAL MANAGEMENT Our environmental and sustainability policy aims to reduce our impact on the environment. We have identi ed that in order to reduce our environmental impact we must ensure all sta and contractors are aware of their responsibilities and are actively engaged and committed to improving our environmental performance. As part of giving e ect to the policy we have developed an Environmental Management System as a basis for managing our activities in the eld. Our eld sta are trained in how to identify potential environmental impacts and discuss any environmental considerations prior to commencing work.
TRANSPOWER (INCLUDING IN THEIR ROLE AS SO) Transpower is one of our largest suppliers of services and we are co-dependant on each other for the e ective delivery of electricity to meet our customer expectations. Transpower requires that we keep them informed of our plans and events with the potential to a ect them. In their role as SO they require that we maintain instantaneous communications and are able to respond to their instructions. They, in turn, must take into account our requirements. We maintain communications through our regular planning discussions and through our Network Operation Control Centre. All Code requirements are met by our established procedures and practices, and monitored through our risk and compliance framework.
REGULATORS’ REQUIREMENTS We are subject to regulation under various Acts including the Commerce Act administered by the Commerce Commission and the Electricity Industry Act administered by the Electricity Authority. Our compliance with regulation is a key requirement of theirs and is a key focus for us. The publication of an AMP is an example of a regulatory requirement we meet. In general, our regulators require our compliance, constructive input and collaboration to assist them in ful lling their duties.
SERVICE PROVIDERS 2016 We rely on service provides to carry out a number of functions. These include providing critical components of equipment and services. The requirements of service providers vary depending on the |
WEL ASSET MANAGEMENT PLAN nature of the services they are required to deliver. However to be e ective they require appropriate payment for services and good working relationships. Accordingly we put signi cant e ort into ensuring sustainable working relationships are fostered with all service providers.
STAFF Our sta are critical to our business. They enable us to deliver on customer and stakeholder expectations. As such, sta safety and wellbeing are critical to our success.
BOARD OF DIRECTORS The Board of Directors is responsible for the delivery of outcomes sought by our stakeholders including the Trust. Their requirements are therefore related to the purpose of “growing the investment for our community.”
88 4.1.1 BALANCING STAKEHOLDER REQUIREMENTS
With a wide range of stakeholders, striking the appropriate balance between their requirements is necessary where the outcomes sought are mutually exclusive. In a majority of cases our stakeholder requirements align and can therefore be met without con icting outcomes. However, when they don’t align we always prioritise safety requirements ahead of all other needs, followed by other legal and regulatory requirements. Any remaining unserved stakeholder requirements are prioritised on a case by case basis depending on the particular circumstances.
4.2 ASSET MANAGEMENT FRAMEWORK
E ective asset management is critical to achieving our objectives. We have developed an asset management framework that links our corporate objectives and day-to-day activities. It comprises the following: • Asset Management Policy: aligns our asset management approach with our corporate objectives (Vision, Values and Strategic Plan). Our asset management objectives re ect these objectives by focusing on risk management and the skills and competencies of our workforce. • Asset Management Strategy: translates the Asset Management Policy into drivers and high level objectives. The strategies employed currently sit within our network development, renewal and maintenance and non-network development plans. • AMP: (this document) re ects our asset lifecycle model, aligns our high level objectives to relevant processes and activities, and details our 10 year investment plans. • Work Plans: apply our strategies to individual assets and set out intervention plans. Our work plans consider each element of the asset lifecycle. Together these components align with the performance objectives established for the urban and rural network. The asset management framework is depicted below. 2016 |
WEL ASSET MANAGEMENT PLAN
89 PURPOSE, VISION AND VALUES
SSTRATEGICTR PLAN Corrporatep objectives, iinitiativesnitia and targets LINE OF SIGHT
ASSET MANAGEMENT POLICY Establishes AM objectives and accountabilities
ASSET MANAGEMENT STRATEGIES
Network Development Non-Network Investment Renewal and Maintenance OUR AMP STAKEHOLDER EXPECTATIONS
WORKS PLAN Delivery of asset lifestyle activities
CONTINUOUS IMPROVEMENT
PURPOSE,ENABLERS VISION AND VALUES
Health and safety Information systems Capability Corporate 2016 Figure 4.2 Asset management framework |
WEL ASSET MANAGEMENT PLAN 4.2.1 ASSET MANAGEMENT POLICY
The Asset Management Policy is established within the corporate governance arrangements. The General Manager Asset Management has overall responsibility for asset management with the primary objective of delivering a safe and reliable network over the long-term that meets the customers quality and price requirements.
4.2.2 ASSET MANAGEMENT STRATEGY
Asset Management Strategy links our policy objectives to the network development projects and asset renewal and maintenance plans we have described in Chapters 7 and 8. The strategy adopted considers three distinct components, network development; non-network investments and maintenance and renewals.
90 NETWORK DEVELOPMENT In line with customer expectations our strategic objective for network development is to maintain our urban reliability level while improving the performance of the rural network. This involves consideration of network security over the AMP period against the established security criteria. We will need to maintain capacity required to supply localised areas of growth within the urban network. To achieve our customers’ requirements in a cost e ective manner, we will seek projects with high cost bene t ratios such as network automation and non-network alternatives such as demand management. The initiatives and projects that result from this strategic approach are discussed further in Chapter 7.
NON-NETWORK INVESTMENTS We invest in non-network assets to increase operational exibility and to improve the information that supports our asset management decision making. We are now utilising the information and exibility this provides to improve services to customers and to ensure e cient investment decisions are made.
MAINTENANCE AND RENEWALS Our strategic approach to maintenance and asset renewal is to maintain a consistent and sustainable level of risk over the long-term. The principal methodology employed for this is CBRM. This strategic approach and the resultant renewal and maintenance expenditure over the AMP period is discussed further in Chapter 8.
DOCUMENT CONTROL AND REVIEW WEL uses promapp for the control and review of its asset management process. Promapp is process management software that allows us to clearly de ne our process and set review periods. Each process describes the actions that are required and links to all controlled documents. Each process is assigned an owner and it is the owner’s responsibility to ensure that a review of the process and supporting documentation is undertaken within the interval set. We also undertake internal and external audits (including certi cation to ISO9001) of our asset management strategies and policy which ensures their alignment and accuracy.
4.2.3 WORKS PLAN
The integration of outcomes across the three strategic components are implemented through our works planning process. Work planning is integral to meeting the needs of our stakeholders. The focus of works planning is safety and e ciently delivering both planned and unplanned works. It also includes operational services required to meet customer requirements. It involves three key steps:
• Integration and optimisation of network development, renewal, and maintenance works. 2016 • Works and resource scheduling and programme management. |
• Management of delivery through WEL Services and external contractors. WEL ASSET MANAGEMENT PLAN The governance arrangements for works planning are discussed further in Chapter 5, and the associated performance metrics and targets are described in Chapter 6.
ASSET LIFECYCLE Management of our assets is based on taking a whole of life approach to asset management. This involves considering ve aspects of the asset lifecycle, as depicted in Figure 4.2.3. The approach to each of the ve asset lifecycle components is strongly linked to the overall strategic approach described in 4.2.2 above. These are: Figure 4.2.3 The asset life cycle
91 • Plan – identifying speci c network requirements that will deliver on stakeholder expectations for service and price, investigating options and authorisation of expenditures. Our planning processes are discussed in Chapter 5 and our expenditure plans are discussed in Chapters 7 and 8. • Deliver – implementation of the planning process through works delivery. This is discussed in Chapter 5. • Operate – operate the network and assets in such a way as to deliver the service levels sought by customers. Network operations and eld delivery is discussed in Chapter 5. • Maintain – e ciently maintain the equipment and network through defect identi cation and planned maintenance activities. The treatment of each asset class is identi ed in strategic asset management decisions. Our approach to maintenance is set out in Chapter 8. • Dispose – e cient, safe and environmentally appropriate disposal of assets. Any speci c requirements for disposal of an asset are discussed in Chapter 8.
4.3 RISK MANAGEMENT FRAMEWORK
This section describes our approach to risk management. Risk management is a fundemental asset management discipline that supports the management of our assets. It requires that robust processes are in place for assessing and managing asset-related risk. It is key to ful lling our ultimate aim of keeping people safe.
4.3.1 RISK MANAGEMENT POLICY
Our Risk Management Policy identi es risk management as a key requirement when managing day-to- day operations and longer-term network planning. It ensures that risk management is an integral part of our management and operating processes. It seeks to improve decision making, so that the business can maximise improvement opportunities while managing risk. We have developed and maintain a ‘risk aware’ culture, where sta are empowered and enabled to identify relevant risks. We have in place processes to evaluate, prioritise and mitigate these identi ed risks. Other than safety related decisions, we seek to balance the costs of mitigation with the residual risk.
RISK ACCOUNTABILITIES
2016 Ultimate responsibility for risk management resides with the Board of Directors. The Board of Directors have delegated management of this responsibility to the Audit and Risk sub-committee. The sub- committee meets every six months to review risk and audit and assurance activity. The full Board is |
WEL ASSET MANAGEMENT PLAN updated on a monthly basis by the Chief Executive as part of the regular management reporting functions. We have established an internal Risk and Audit Management Committee (RAMC) comprising a cross business representation of managers including the Chief Executive, all General Managers, the Business Assurance Manager, the Risk and Quality Auditor, and senior operational, corporate and health and safety managers. The RAMC provides management oversight of our risk management and audit processes. This includes reviewing all new risks entered in the risk database to validate the data, determine the classi cation of the risks and approve the treatments. This committee meets on a quarterly basis. Speci c actions are then delegated to the relevant managers. Each sta member is responsible for ensuring they understand the risk management process and how it applies to them. This includes being actively engaged in the identi cation of new risks and ensuring these are appropriately escalated.
92 4.3.2 RISK MANAGEMENT FRAMEWORK
Our Risk Management Framework is aligned to the ISO 31000 standard. It consists of ve process steps for systematically managing risk, as illustrated in Figure 4.3.2 below.
Establish the Context
RISK ASSESSMENT
Risk Identi cation
COMMUNICATION MONITORING AND AND CONSULTATION Risk Analysis REVIEW
Risk Evaluation
Risk Treatment
Figure 4.3.2 Risk Management Framework
The following describes our approach to each process step in the framework.
ESTABLISH THE CONTEXT The risk context is established from many factors including; accessibility by the public, location e.g. rural or urban, asset age and condition, inspection programmes and data quality.
RISK IDENTIFICATION Our asset management risks are identi ed via the hazard identi cation process, regular risk meetings, audit results or event analysis. Any new risk will then be assessed and rati ed by the RAMC. 2016 Managers from our Asset Management team meet on a monthly basis to review a selection of risks.
This provides a formal mechanism for risk assessment, risk monitoring and the identi cation of new or |
emerging risks. WEL ASSET MANAGEMENT PLAN
RISK ANALYSIS When a potential new risk is raised a process of analysis is completed to understand the nature and extent of the risk. This includes discussion with relevant sta .
RISK EVALUATION Each risk is evaluated against established criteria to determine the degree of acceptability. The criteria are discussed in Section 4.3.3.
RISK TREATMENTS Options to mitigate risks are identi ed. The costs (both initial and on-going) of the proposed treatment options are estimated. The treated risk is then evaluated against the ‘inherent’ risk. The ‘gap’ indicates the e ectiveness of the treatment option.
93 Once agreed treatment actions are included in business plans and budgets where necessary, priorities are set and timeframes for actions are agreed with the risk owner and relevant managers.
MONITORING AND REVIEW An active programme of risk monitoring and review is in place. Our internal audit programme also assesses key risks and the e ectiveness of controls. The results of these audits are reported to the RAMC with improvement opportunities discussed and additional actions approved. The internal audit programme utilises both our internal auditors and independent third party auditors to conduct a range of internal audits to verify performance.
RISK MANAGEMENT DATABASE To support our risk management framework, we use the Quantate Risk Management application. This software‐based process supports ISO 31000. It helps to ensure we have a structured approach to the risk management processes, and has assisted with the e cient administration of risk management reporting.
4.3.3 RISK CLASSIFICATION
Figure 4.3.3 below illustrates our risk management classi cations. Risk classi cation bands (indicated by di erent colours) have been set to re ect our tolerance for risk. These settings were determined by establishing the potential impact and degree of acceptability.
RISK CLASSIFICATION
100
Class 4 Class 3
10 Class 2
Likelihood Class 1
2016 1 110 100 Consequence |
WEL ASSET MANAGEMENT PLAN Figure 4.3.3 Risk Classi cation
There are two aspects to the classi cation of risk: likelihood and consequence. Likelihood (y axis) is determined from: • Historical data – from our company and other similar companies • Empirical data – externally sourced data e.g. equipment manufacturer information
Consequences (x axis) are considered and rolled up into three broad categories of: • Health and safety – the risk of a health and safety impact e.g. is there a risk of single or multiple fatalities, serious harm or minor injury. • Financial impact – includes the service, environment and reliability factors estimated as cost impacts from $0 to > $100,000,000.
94 • Reputation – this looks at the impacts on various groups of internal and external stakeholders including our customer and community and is categorised in ve bands from 1 (very serious impact) to 5 (very minor impact). Each combination of consequence and likelihood has been given a value according to the potential impact on the business. The classi cation of risks, shown by the colour bands in Figure 4.3.3 above, and description are: • Class 4 (Extreme) risks are considered intolerable. Risk reduction actions must be applied to reduce the likelihood or consequences of the risk. • Class 3 (High) risks are unacceptable without further controls unless the cost of such controls outweighs the bene ts. • Class 2 (Medium) risks are tolerable but undesirable. Higher consequences (those further over to the right hand side of the chart) are less desirable. Low cost mitigation may be justi ed unless the cost of such controls outweighs the bene ts. • Class 1 (Low) risks are acceptable.
4.3.4 IDENTIFIED TOP 10 RISKS
We have identi ed the following asset risks as being the top 10 inherent.
RISK INHERENT RESIDUAL KEY MITIGATIONS CLASSIFICATION CLASSIFICATION
Sub-optimal investment in assets Extreme Extreme Strategic Asset Management due to changing patterns in Approach consumer energy e ciency Project Prioritisation Tool practices and the impacts of emerging technologies
Asset class failure prior to Extreme Extreme Asset Management scheduled replacement e.g. Condition-based Assessment 16mm copper conductor failure Major storm or natural disaster Extreme High Contingency Planning Network Design Sta or contractors injured Extreme Medium Training while working on the network Processes Harm to member of the public Extreme Medium Asset Management through equipment failure Maintenance 2016 Harm to member of the public Extreme Medium Asset Security through deliberate contact Maintenance
with the network |
WEL ASSET MANAGEMENT PLAN Harm to sta or member of the Extreme Medium Training public through defective work Processes and Standards Harm to sta or member of the Extreme Medium Maintenance public through theft of earthing Work with NZ Police Harm through failure of Extreme Medium Test and Inspection safety equipment Purchasing Standards Harm and or reliability impact Extreme Medium Commissioning Process from critical network systems As-built Process e.g. NMS not being accurate
Table 4.3.4 Top 10 Inherent Risks
95 4.3.5 MANAGING ASSET-RELATED SAFETY RISK
Safety management is a critical component of the overall risk management framework and, due to the inherent nature of our electricity network, many network risks have a signi cant safety consequence weighting. Minimising both the likelihood of safety events occurring, and the ability to minimise the consequences when events do occur are therefore of paramount importance to us. Our Public Safety Management System re ects our approach to managing asset based safety risk. The key principle in managing asset and infrastructure risk is to reduce the residual risk to being as low as reasonably practical.
ASSET FAILURE RISK MANAGEMENT Safety risk due to asset failure is a key concern for WEL. The Asset Management team is responsible for managing risk associated with our assets, the delivery of our works programs and the operation of the assets. WEL services and our contractors also have a responsible for managing any operational or delivery risks. WEL has employed the technique of exposure rate analysis to assess the likelihood (frequency) of asset failure and related impacts. Risk assessments have been conducted for the various classes of network asset. This approach is inherently built into our CBRM asset management tool, discussed further in Chapter 8.
4.3.6 RESILIENCE AND HIGH IMPACT LOW PROBABILITY EVENTS
Even though natural disasters and emergency situations are unlikely, they would have a signi cant impact on our assets and operations. Re ecting this, our planning in this area is extensive and includes the following aspects. While the network is not designed to withstand signi cant natural events, we actively identify areas and sections of the network that may be subject to HILP events and have response plans in place.
LIFELINE UTILITY As a critical infrastructure provider in New Zealand, WEL is a Lifelines Utility and has a signi cant Civil Defence Emergency Management (CDEM) role to play. Section 60 of the CDEM Act 2002 requires WEL to: • function at the fullest possible extent during and after an emergency • have plant for such functioning • participate in CDEM planning at national and regional levels
2016 • provide technical advice on CDEM issues where required. We are a participating member of Waikato Lifelines Utility Group (WLUG) which has overall goals to: |
WEL ASSET MANAGEMENT PLAN • assist members to meet their obligations under the CDEM Act • coordinate and work to progress the completion of projects which bene t lifeline organisations in their regionstrive to ensure that member organisations get value for money through their participationendeavour to meet ever increasing customer expectations that Lifeline Utilities will deliver secure services. Lifeline utilities are responsible for strengthening relationships within and across sectors, and individually committing to actions that ensure continuity of operation and delivery of service. Through our membership in WLUG, we have access to regional and national studies carried out on natural, technological and biological hazards. From these we have identi ed the top hazards and developed a comprehensive vulnerability assessment which identi es the risks in terms of importance, vulnerability, resilience, and impact of each major asset on the network.
96 MAJOR EVENT PROCEDURES A major event procedure has been established and is applied when events e.g. weather, ood or earthquake have a major impact on our ability to supply electricity, or when a Civil Defence Emergency is declared. It is designed to prepare resource levels beyond those normally available or on call. The procedure requires the following actions to be taken. • Prepare for impending weather that has been forecast. Teams are required to make preparations and resources are put on notice. • Manage increased or increasing numbers of faults due to weather conditions. Resources are increased accordingly. • Liaise with Civil Defence in the event of a Civil Defence Emergency being declared. • Respond to Civil Defence requirements to prioritise the restoration of supply to critical sites. We also have a communications process for major events which covers external communications during an event.
CONTINGENCY PLANNING We have developed contingency plans for loss of signi cant assets or groups of assets. Further development of speci c plans for zone substations and critical 33kV circuits is ongoing. Our contingency plans include switching processes to ensure essential services, as much as is practicable, are able to continue to receive power supply in the event of a major outage. We have also entered into arrangements to gain priority access to emergency generation should the need arise.
EMERGENCY EXERCISES We undertake annual emergency response exercises. These alternate between desktop and full scale emergency scenario simulations. Typically these have involved full scale alarms being initiated without prior warning. A range of scenarios have been staged including major rolling storms, signi cant failure of the communications network (a ecting SCADA) and failure of a Transpower point of supply. Most recently we simulated a signi cant earthquake event, putting into practice some of the learnings from the Canterbury earthquakes. Following every exercise we discuss any potential improvements to be made and record lessons learnt.
DISASTER RECOVERY SITE We operate our control centre under normal circumstances from our Maui Street premises. When this is not available for any reason, our Disaster Recovery site provides a full back-up of the
Network Management, SCADA and major corporate systems. The Disaster Recovery site allows full 2016 monitoring and control of the network to continue. |
WEL ASSET MANAGEMENT PLAN 4.4 ASSESSMENT OF ASSET MANAGEMENT PERFORMANCE
In this section we describe the assessment tool we and all other electricity distributors are required to use to assess our respective asset management capability.
4.4.1 AMMAT
AMMAT is a prescribed set of questions identi ed by the Commerce Commission for the self-assessment of electricity distributors’ asset management performance and maturity. The Commerce Commission developed the tool to help all electricity distribution businesses and stakeholders to assess and understand their performance and to encourage continuous improvement.
97 The tool uses a selection of 31 questions, which are grouped into six key areas. The questions relate to the key components of the internationally recognised ISO 55000 framework for asset management. In addition the Electricity Engineer’s Association has developed guidelines to assist in the assessments process. We made this resource available to all key personal invited to participate in the 2016 assessment.
4.4.2 THE PURPOSE OF AMMAT
The purpose of the assessment is to gauge our performance against the selected components of the ISO 55000 framework. The self-assessment informs us and stakeholders about the level of competency we believe we have reached at the time of assessment. While we have no immediate aspirations to seek ISO 55000 certi cation, we do agree at this stage that there is bene t to be obtained from performing the assessment. The bene t comes from our internal discussions and views around the level of asset management capability and competency appropriate for our stakeholders, and the identi cation of improvement opportunities.
4.4.3 IMPROVEMENTS IMPLEMENTED DURING 2015
Since the survey in 2014 we have implemented a number of improvement initiatives. • We reviewed our delivery model to ensure the right commercial decisions are made with regard to the insourcing and outsourcing of maintenance and capital work. The project followed a robust methodology which included learning from other organisations as well as thorough nancial and non- nancial analysis and evaluation. • CBRM tools have been implemented across a number of eets and the results are starting to be used to inform our planning and decision making. • Safety Improvements - Safety by design concepts have been formally incorporated into our design processes. - Improvements have been made to the identi cation of safety hazards, their documentation and handover to external contractors. • Contract Management – we have revised our tender documents under NZS3915:2005 to improve their consistency and to better manage commercial risks. • Resource Management – we have employed a dedicated Works Programme Manager and have improved the visibility of resource scheduling in our works plan. More work in this key area has been identi ed for 2016. 2016
| 4.4.4 2016 AMMAT ASSESSMENT
WEL ASSET MANAGEMENT PLAN
Our 2016 assessment is summarised below. We have undertaken detailed analysis of the responses to gain a deeper understanding of our latest performance assessment. Overall we believe our performance and maturity in asset management is good. We aspire to be better and we believe our revised AMP is a signi cant step in the right direction. The results shown indicate an improvement in the scores over our last assessment undertaken in 2015. This indicates that the initiatives we are undertaking to improve our delivery of work is starting to take e ect and we are obtaining a better alignment to the ISO 55000:2014 standards.
98 ASSET MANAGEMENT MATURITY 2016 Average ASSESSMENT 2015 Average
Asset strategy and delivery 4.0
3.0 Documentation, Competency controls and and training 2.0 review
1.0
0.0
Structure, Systems, integration capability and and information authority management
Communication and participation
Figure 4.4.4 2015 AMP AMMAT Summary Results
The conclusion drawn from the result is that we are maturing as asset managers and our works delivery improvements are resulting in improved performance.
4.4.5 2015 IMPROVEMENT AREAS AND INITIATIVES
Of particular note is that the two lowest areas of assessment in 2015 are Communication and Participation, and Competency and Training. Activities we undertook to improve in these areas included improving the communication of our plans. There was a greater involvement across the company in the development of last year’s AMP and the 2016 communication of the AMP was also greatly improved. As part of the works delivery project there has also been an improvement in the clarity that each role within the company has in the delivery of our |
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Works Plan
(PDD) Project De nition and Cost Estimation
lan. t de nition and cost estimation (Project De nition Document (PDD)) (Project estimation t de nition and cost explains our methodology applied to investment planning including an investment our methodology applied to explains Planning (5.1) estment Needs Identi cation Options analysis GOVERNANCE: PRIORITISATION; APPROVALS Needs identi cation Options analysis Projec P Works Inv stages four The implementation. decisions and investment to approach stage of our four explanation of and establishment estimation, project and cost de nition options analysis, identi cation, need are: prioritisation and governance, undertaken stages are plan. All a works under overarching controls. approval including the arrangements a description of our governance (5.2) provides Approvals Expenditure sectionThis nancial authoritydelegated framework, and our challenge and prioritisation processes. . process summarising the decision support by approval concludes underpinning our expenditure tools delivery the associated delivery, and optimise our works integrate we Plan (5.3) describes how Works It materials to determined. also describes our approach this are for the resources and how model, management. and works management
ASSET MANAGEMENTASSET GOVERNANCE and associated expenditure can be found in Chapters 7 and 8. in Chapters can be found expenditure and associated Figure 5.1 Investment Planning Model Planning 5.1 Investment Figure investment for employed processes The described below. stages are planning related rst three The delivery described and works in sections are projects 5.2 and 5.3. Details of the proposed approvals Investment planning is fundamental to many of our activities. Our planning capability is also central to to of our activities. Our planning capability many is also central to planning is fundamental Investment and quality price on customer requirements. delivering e ciently delivery. to through needs identi cation from all investments, the same for is fundamentally Our process as framework prioritisation and approvals governance, managed under an overarching stages are These stages are: These below. illustrated • • • • This chapter sets out WEL’s asset management governance framework, in which established processes framework, in which established processes governance asset management WEL’s sets out chapter This later The approvals. expenditure and clear accountability planning decisions with support investment is structured as follows: chapter The delivery. works sections to describe our approach of the chapter • • •
5.1 PLANNING INVESTMENT 5.
ity formance equests y Reliability per Safet and health condition Asset secur and Growth r Customer change Technology requirements. regulatory and environmental Legal,
GROWTH AND SECURITY GROWTH recon gure to required is generally additional investment new capacity from peak demand grows As starts demand on the network process and of expected The with an assessment future the network. network meet expected capacity demand and security to current is insu cient where identifying in the network of security has been established as part each level level at required The requirements. is the and security investment growth securityof our network design the need for criteria. Assessing team. and Engineering Planning of the Asset responsibility ASSET CONDITION AND HEALTH ASSET CONDITION asset maintain the need to is primarily by driven and renewals on asset maintenance Expenditure asset condition identify to programme and continuous a comprehensive have We and health. condition and inspections carried line crews out by are Field requirements. maintenance and health, which informs the renewal into then fed are requirements and maintenance renewal The of inspectors. team a dedicated process. planning and maintenance sits with the Maintenance investment related asset health and condition for responsibility overall The we and how and health assessments of our asset condition detailed explanation A more team. Strategy 8. issues is set out in Chapter manage identi ed RELIABILITY PERFORMANCE performance the reliability of sections of the network can degrade. age and or demand grows, assets As to In investment these instances apparent. issues become reliability In unidenti ed addition, previously network in additional automation, this will result Typically performance reliability maintain is required. as part identi ed issues are These of our further or the addition of new feeders. sectionalising of circuits, propose to It team and Engineering Planning of the Asset is the responsibility network planning process. and manage these performance issues. SAFETY majorityThe asset issues is a high priority us. for related and safety concerns safety address to Investment and selection in the design on the network, risks of equipment can be addressed through related of safety on within our expenditure drivers In will be speci c safety addition, there process. in design” “safety our speci c safety where instances are There and security. and health, and growth asset condition reliability, assessed on their individual merits. are meetings and risk review from emerge investments related • • • • • • • drivers. than one of the above will meet more or a series of investments, an investment, instances In many the that ensure a very to clear de nition of the need being met in order have to it is imperative such As being proposed. solutions are most prudent below. discussed are drivers investment The Investments are made in response to a number of needs. Over the AMP period our network expenditure Over period the AMP our network expenditure a number of needs. to made in response are Investments will be primarily by: driven NEED IDENTIFICATION 5.1.1
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ASSESSMENT PROCESS options then ranking these to feasible all technically considering involves process Our options analysis In take assessing options we outcomes. and reliability cost whole of life select of safety, the best in terms of lost load (VoLL), value SAIDI and other reliability customers’ metrics such as the a ected account into such as available, are timeframes development di erent In where some instances improvements. timing expenditure for account to analysis use economic we years, several the constructionstaging over (NPV)Value assessment. includes Net Present analysis This the best option. and identify di erences Following need identi cation, potential solutions are identi ed and considered. The number and The and considered. identi ed solutions are potential need identi cation, Following type and complexity of the investment. value of options (or solutions) varies depending on the type, renewals to is related based on whether the capital expenditure is also tailored Our options analysis or network development. B. as detailed in Appendix and processes our CBRM framework by is informed Renewals analysis is described further process This in high risk assets. based on targeting are renewals Accordingly 8. Chapter considered. explicitly options are and development maintenance needs, all other investment For network automation, network recon guration, include; maintenance, options considered Typical such as demand management. and non-network investments assets, additional capacity upgrades, needs. meets the identi ed option that is the least cost sought outcome The TECHNOLOGY CHANGE expenditure. investment need for the change can also drive and technology obsolescence Technology electricity continued for supply. is particularlyThis is required equipment critical operational true where and corporate network monitoring, software includes network management and communications, This lies with individual business investment technology support proposing Responsibility for technologies. (IT) systems, all corporate for accountable is team Technology the Information example, For units. is accountable team and Engineering Planning while the Asset and software investments, hardware AND ENVIRONMENTAL REGULATORY LEGAL, regulatory, legal, all relevant with comply to endeavour we that policy compliance Our requires formal to steps will take all reasonable non-compliant we are nd we we Where obligations. and environmental either are we that in our needs identi cation a key consideration It is therefore compliance. towards work the through compliance achieve taking to steps or are all reasonable compliance maintaining for SCADA and network automation investments. and network automation SCADA for period. AMP CUSTOMER REQUESTS CUSTOMER connection. their existing Individual often to connections seek new customers upgrade or an Network changes are also frequently requested due to road layout changes e.g. widening or safety e.g. changes layout road due to requested also frequently Network changes are of the choice have Customers Expressway. Waikato the being built e.g. or new roads improvements, with their the change request can initiate They channels. a number of contact with us through initiating direct can make connections familiar with the and customers process contact centre WEL’s call retailer, team. Projects manager or our Customer their relationship contact through in a timely manner the request will process team Projects our Customer used, of the channel Regardless is part team Project of the Customer The request. of the of the status informed and keep the customer the be paid by to costs advise any required, and will assess the works team wider asset management required contribution capital Any request. the customer ful l to required the works and initiate customer main purpose ofThe Policy. Contribution with our Capital in accordance is calculated the customer from of further is to A copy Policy the best option selected viable. is nancially Contribution ensure the Capital . www.wel.co.nz the policy on our website can be found OPTIONS ANALYSIS 5.1.2
ALS ACH y sis sis k Reliability k Capacity y considerations and operating processes and operating y considerations Health and Safet Networ Networ Environmental Risk Analy Ratios) VoLL/Cost Bene t, NPV, (Cost Analysis Economic trade-o sExpenditure / Operational Expenditure Capital CBRM. Technical Analy Technical Safet
PRIORITISATION applies a systematic tool The its capital work. evaluating for a prioritisation tool WEL has developed criteria: the following and considers on a risk is based evaluation tool The all projects. to process • • • • Our Board has established a delegated nancial authority structure for the business. The structureThe nancial authority the business. a delegated has established structureOur for Board the General of the Chief Executive, level approval amongst other criteria sets the expenditure and senior managers. Management team DELEGATED FINANCIAL AUTHORITY structure, with our organisational been established commensurate limits have approval expenditure The position within the organisation. a person’s to set corresponding meaning higher limits are expenditure. and unforeseen budgeted between further limits are expenditure di erentiated The budgeted that given expenditure than budgeted lower set signi cantly limits are expenditure Unforeseen business in our strategic, incorporated process preliminary undergone approval has already expenditure limit expenditure budgeted Chief Executive’s The planning processes. planning and asset management monthly Transpower’s e.g. this amount above payments regular any $2 million excluding has been set at may Board The $500,000. limit has been set at expenditure unforeseen Chief Executive’s The charges. amounts. greater approve Expenditure approval is governed by the delegated nancial authority structure within WEL. Prior to to WEL. Prior nancial authority the delegated structure within by is governed approval Expenditure sectionThis describes the subject challenge process. internal an plans are to expenditure approval, organisation. in the each level at and the accountabilities the challenge process, model, approval • • • • of our development and the maintenance for help us assess and choose the best option tools These systems. distribution network and associated • cost project scope, a high level provide to each capital project and approved is written PDD for The • resource budgets, of the PDD and associated approval expenditure Following estimations. and resource project a high level project and construction produce detailed design is used to planning for delivery timeline. DECISION DECISION TOOLS SUPPORT as appropriate: include, These of decision support use a number process. in our assessment tools We GOVERNANCE APPRO GOVERNANCE EXPENDITURE APPROV 5.2.1 5.2 5.1.3 AND COST ESTIMATION DOCUMENT (PDD) DEFINITION PROJECT
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2016 104 2016 | WEL ASSET MANAGEMENT PLAN 105 TION aints ed nancial authority limits t prioritisation tool ent book value. ent Delegat strategies business and AMP Our strategic, stage of the options analysis results e.g. analysis Economic Projec PDD documents. Regulatory requirements Outage planning constr Life cycle cost Life Curr
This section describes our works delivery model. The aim of the works delivery aim of the works manageThe model is to sectionThis delivery describes our works model. delivery The process works. and development renewals delivery and e cient of maintenance, the safe stages. the following involves This section describes the process utilised in delivery of planned projects, and responding to unplanned to section utilised in deliveryThis and responding describes of planned projects, the process delivery of works is driving focus e ciencies and ensuring timely outcomes. The events. and the integration understand that We improvement. on continuous WEL is a maturing business focused e ciency and least delivery and work our safety, achieving is key to of our planning process optimisation practices. our current to enhancements a number of potential identi ed have We objectives. cost further established to the Manager enhance recently was & Programme of the Contracts role The Manager A primary & Programme process. of the Contracts responsibility and optimisation integration requirements, resource for plan accounts The Delivery Plan. Works and manage the develop is to WEL Services through delivered Work delivery planned projects. and high level timelines for expenditure Delivery Plan. Works against the and measured this role and external is managed through contractors WEL Services establish a delivery to and external Delivery contractors is utilised by Plan Works The planned delivery achieve in a nancial year. to month) schedule (by of works and optimisation opportunities integration in the a number of improvement identi ed have We faults. for Response team of our First the reorganisation change during 2015 was One signi cant delivery. on scheduled works. a fault can have the impact attending that has reduced This the next as in accuracy 12 months over Delivery improve expected to and scheduling are Plan Works The further a project to instigating currently integrate are We initiatives. build on our initial improvement we of a powerful utilisation the enhanced through (SAP) and extract system our enterprise bene ts from scheduling module. DECISION SUPPORT TOOLS decision support the key are: approvals tools expenditure For • • • • • • • • • enables projectsThis ranking. a criteria these and provides from bene t ratio a cost calculates tool The manner. and repeatable transparent in a constant, be evaluated to drivers with di ering DELIVERY MODEL DELIVERY INTEGRATION AND INTEGRATION OPTIMISA 5.3.2 5.3.1 5.3 PLAN WORKS
e utilise standard designs and construction techniques as documented in our construction and as documented designs techniques e utilise standard quali cation ts identi cation applies to internal resources and external service providers. Capital Projects Projects Capital and external service resources providers. internal applies to tion Handover: : all capital projects and any other project with a budget that exceeds a de ned exceeds other project with a budget that : all capital projectst Closeout and any te and monitor quality. quality. and monitor te val mation for growth and security, renewal and scheduled maintenance activities. For customer customer activities. For and scheduled maintenance renewal and security, growth for mation Requiremen Supplier pre- (RFP) Proposal or Request for Tender Appro Purchase order raised or Preferred Supplier Agreement established Supplier Agreement or Preferred raised order Purchase Evalua nancial threshold, require a close out report to be completed, circulated and a meeting held to capture capture to held meeting a and circulated reportout close a completed, be to require threshold, nancial and discuss lessons learned. driven and reactive maintenance work, historical resource utilisation and expenditure are used are and expenditure utilisation work, resource historical maintenance and reactive driven safety, manage any e ectively and the project manager to design meeting between a handover have delivery risks or complexity. Projec The Works Delivery based on PDD plan is a high level Plan Works The forecasting: and expenditure Resource infor forecasting. for Detailed Design: W categories Asset e ciency. cost and standardisation quality, and construction drive design manual to substation zone lines, include subtransmission been developed have designs standardised where be assisting assets to concepts in design safety incorporate designs All and switchgear. equipment typically are designs Opportunities standardised and maintained. develop to operated accessed, safely strategies. of maintenance and development as partidenti ed process of the asset renewal capability gaps. and cover support design ows Specialist independent work help manage to is sought the delivery delivery monitoring types, Scheduling schedule for of all work Plan: A detailed monthly of resources. coordination improve against the plan to Construc
TENDERING process tender The of $100,000. the value over generally requirements, all major equipment tender We selecting suitable suppliers, establishing timeframes, assessing business requirements, encompasses written a formal and nally developing and evaluation, preparation tender detailing speci cations, recommendation. This section describes our materials procurement activities. The objective of the materials procurement procurement objective of the materials The activities. sectionThis procurement describes our materials and delivery the asset management speci ed by functions the materials at acquire e ciently is to process quantity the speci cation, and quality required. given an optimal cost are: process stages of the procurement The • • • • • • in our process been recorded activities have procurement and business rules for processes The inventory, e.g. items means of procuring be a highly e ective to has proven This systems. management centralised The is centralised. these items model for because the procurement and vehicles equipment measurable, are the bene ts and results to, adhered are because the business processes well model works supported clearly de ned and are senior management. are by responsibilities RESOURCING and cost full utilisation ensure To requirements. Delivery our resourcing establishes Plan Works The sta . only internal using programme our full works deliver e ciency do not plan to sta we of our internal required. as specialist resource peak times and contract at works selectively outsource Instead we of external the timely procurement enable as early identi ed as possible to are outsourcing for Projects performance contractor and managing is described in the Section of engaging process 5.3.4 The support. Management. Works • • • • • 5.3.3 PROCUREMENT MATERIALS
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HANDOVER PATH HANDOVER & Programme Contract is primarily from Handover Planning Management (WELWorks the Networks) to WEL Services work. delivered all for Team delivery is external contractors through Work Management & Programme managed via Contract Management. within Asset Supervisor for the Faults to Handover management dispatch Proactive maintenance maintenance Proactive of asset inclusive replacements projects Reactive & time limited maintenance` tion for Tender template based on the New Zealand Standard Conditions of contract for building for of contract Conditions Standard based on the New Zealand template Tender tion for Design services templates using Conditions of Contract for Consultancy Services for of Contract servicesDesign using Conditions as a base document templates and in New Zealand; acceptance its relative due to Invita constructionand civil engineering (NZS:3915). WORK SOURCEWORK DETAIL Maintenance Maintenance Driven Customer works customer Small & large ProjectsCapital planned long-term Complex Faults
Table 5.3.4 Work management handover paths management handover 5.3.4 Work Table now incorporate: now • • Revised contract templates have been developed for the engagement of contracted service of contracted the engagement and for been developed have Revised templates contract Our works management function has been centralised into two key teams to provide a holistic approach a holistic approach provide to key teams two into function management Our works has been centralised Management Management within Asset delivery the & Programme to Contract types. of all work manages Customer of works, the annual programme planning and timelines for all resource completes WEL Within manages all external and contract and construction design requirements. Work Initiated design for ow work priorities determine work to assigned manages Team Planning Works Services, the construction. Priority 1 works for being dispatched planning and scheduling prior to when required, work as break-in process the dispatch planning and scheduling directly into bypass (Typically Faults) WEL Tenders Committee. Approvals for values over $500,000 are approved by the Board. the by approved are $500,000 over values for Approvals Committee. Tenders WEL PREFERRED SUPPLIERS established a number of have we of category and the use of RFP, management the process Through consistency and certainty are supplier arrangement of bene ts of a preferred The suppliers. preferred quality assurance market stable pricing optimal and conditions, structures which re ect current supply, options. rebate and volume COST PERFORMANCE MONITORING quality and cost speci cations, required ensure to suppliers monitoring for use various techniques We benchmarking, and product market include cost analysis These being achieved. are requirements evaluation. and new technology trends exchange and foreign material raw monitoring a timely response. for 5.3.4. Table in shown are paths handover management works The For purchases or categories up to $499,000, a written recommendation approval is sought from the from is sought approval recommendation a written $499,000, up to or categories purchases For WORKS MANAGEMENT WORKS 5.3.4
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Our customer experience objectives cover both reliability (quality both reliability of supply) objectives cover experience Our customer Cost e ciency is driven by making the right investment choices at the right time, time, the right at choices e ciency makingCost by is driven the right investment erience: erience: y: The performanceThe of our assets directly the quality determines of services and cost formance: Safety is our highest priority. Our vision places safety rst and foremost, making it the top rst and foremost, safety Our vision places is our highest priority. Safety y: describes our safety objectives, initiatives, and measures for the AMP period. the AMP for and measures initiatives, objectives, y (6.2) describes our safety provides an overview of our performance Objectives (6.1) provides objectives, of Performance view ormance Evaluation (6.6) describes performance. our historical Evaluation ormance and delivering our works programme for the lowest total ownership cost possible while achieving cost ownership total the lowest for programme our works and delivering our quality targets. and safety Per Asset decisions of the asset management in turn, is a direct consequence This, our customers. to provided our asset performance further by our asset will improve developing We make on a daily basis. we capabilitymanagement and decisions. priority in everything we do. We strive to ensure safe environments for our sta , contractors, and contractors, our sta , for environments safe ensure to strive We priority in everything do. we members of the public. Exp Customer the time taken to e.g. with customers our interactions and the quality through of service deliver we a complaint. resolve E cienc Cost Safet Over and measures. initiatives Safet and measures initiatives, objectives, experience (6.3)describes our customer Experience Customer period. the AMP for the for and measures E ciency e ciency (6.4) describes our cost initiatives, Cost objectives, period. AMP for and measures (6.5) describes our asset performance initiatives, Performance objectives, Asset period. the AMP Perf
ASSET MANAGEMENTASSET PERFORMANCE • described in more each performance are for area and targets measures initiatives, objectives, The detail below. • • We have established performance objectives in four key areas, safety, customer experience, cost e ciency cost experience, customer safety, established performance key areas, objectives in four have We our stakeholders as described in by sought objectives re ect outcomes The and asset performance. support plan and ultimately our plan, strategic our business also directly linked to are They 4. Chapter vision. corporate our objectives can be summarised follows. as for of focus areas The • This chapter describes our performance objectives, initiatives, measures, and targets for the AMP period. period. the AMP for and targets measures, describes our performance chapter initiatives, This objectives, is structured follows: as chapter The • • • • • •
6.1 OF PERFORMANCE OBJECTIVES OVERVIEW 6.
esponsibility. ely engaging sta in health and safety across the business. across sta in health and safety ely engaging Routine earth testing of all of our substation fencing and earth grids has commenced. This practice willThis Routine earth and earth fencing of all of our substation has commenced. testing grids pose don’t assets actions be necessary our fencing corrective may ensure where to site any help identify an electrocution people or animals; risk to using an has been introduced standard a new design theft earth potential of copper Due to conductor, is aimed initiative The value. resale has a lower conductor that capacity wire steel current equivalent risk property safety of electrocution to or damage the associated as a theft reduce to discouraging at of unknownresult missing earth and cables on our equipment; Ensuring everyone understands our Health and Safety Strategy, objectives and accountabilities; Ensuring everyone Strategy, understands our Health and Safety performance. in our health and safety improvement Raising of continuous the standard issues. our performance health and safety Communicating and any Developing strong and sustainable leadership in health and safety. and sustainable leadership in strong Developing risks. and manage associated hazards identify to Ensuring competence Activ We always design and plan our work in a manner that puts safety rst. puts safety in a manner that and plan our work design always We risks. and control hazards identify to competent Our people are reoccurrences. prevent them to learn from and always can occur errors that accept We support and tools improvement. Our systems our continuous No business outcome is more important is more than safety. No business outcome supports and sustainable leadership that people of openness where committed a culture have We speak up and actively participate. and take personal r engaged Our people are
• • PUBLIC SAFETY harm. will During period the public from this AMP we protecting to commitment a strong have We members of our risks safety to asset-related or control eliminate to make improvements to continue planned include: or are in progress are that initiatives public safety The community. 4. 5. 6. objectives. achieving our vision and safety to signi cantly will contribute these initiatives consider We To support these objectives, we are undertaking support are we six initiatives. these objectives, the following To 1. 2. 3. • • • • Our safety objectives are comprehensive. They specify safety outcomes and inform aspects and inform of our culture outcomes specify safety They comprehensive. objectivesOur are safety them will achieve To purchase. we including the equipment operate we how cover They and leadership. objectives can be summarisedThe communications. and improved improvement continuous require as follows: • • • WEL aspires to being ‘Best in Safety’. This underlines our commitment to ensuring the health and safety to underlines our commitment This ‘Best in Safety’. being to WEL aspires Health year a ve developed have this we help achieve To in. operate we of our sta and the communities summarised below. are of the strategy deliverables key The 2020. to Strategy and Safety SAFETY INITIATIVES SAFETY OBJECTIVES SAFETY 6.2.2 6.2.1 6.2
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ARGETS 0000000000 ≤2 ≤2 ≤1 ≤1 ≤1 ≤1 ≤1 ≤1 ≤1 ≤1 20% 25% 25% 30% 30% 30% 30% 30% 30% 30% ≥95% ≥95% ≥95% ≥95% ≥95% ≥95% ≥95% ≥95% ≥95% ≥95% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Implementation Rate Indicators ≥85% ≥85% ≥85% ≥85% ≥85% ≥85% ≥85% ≥85% ≥85% ≥85% Improvement Improvement Behaviours We have three key measures for sta behaviour related improvements. These are: These improvements. related sta behaviour for key measures three have We viours. This measures the occurrence of a speci c set of safety of a speci c the occurrence measures This Behaviours. y Improvement This measures the occurrence of a speci c set of safety behaviours behaviours of a speci c set of safety the occurrence measures This Indicators. y Improvement that sta witness. that Safet supporting sta themselves. by behaviours This is the number of safety improvements improvements is the number of safety This Rate. Implementation A Safety Improvement sta . suggestions made by the number divided by implemented, Safet
- - - Data for the safety improvement measures will be informed by a sta safety culture survey. survey. culture a sta safety by will be informed measures improvement the safety for Data health and safety. to of sta in relation the behaviours measures This We have commenced reporting TRIFR as our reporting commenced have We Injury (TRIFR). Rate Recordable Frequency Total Injury Frequency than Lost-Time comprehensive more TRIFR is primary performance. of safety measure period all injuries a given within TRIFR measures as our key measure. used previously Rates (LTIFR) it the measure standardise In to in the same period. order number of hours worked the total to relative is reported hours. against a base period work of 200,000 Sta BehaSta Our Public Safety Management System (certi ed the risk our highest to identi ed NZS 7901), has to Management Safety System Our Public this our inspection help control To service damaged public is electrocution or shocks from pillars. warning a safety Additionally, cycle. year a three to a ve from pillars has been modi ed for programme on every placed number has been label and contact telephone pillar. . This measures the reported incidents involving the public. the reported involving incidents measures This Safety. Incidents Public
MEASURE TRIFR Sta Behaviours Public Safety Incidents Safety Public
Our safety performanceOur safety are: measures • • • SAFETY MEASURES T AND • is of what based on our judgement period are the AMP over measures our safety for targets The re ect very of safety would high levels if achieved that levels been set at have They achievable. 6.2.3. Table performance target The is set out in performance amongst electricity distribution businesses. Table 6.2.3 Safety Targets 2016-2026 6.2.3 Safety Targets Table 6.2.3
ing Technology. We will actively monitor and assess new technology to maximise the to and assess new technology will actively monitor We Technology. ing y of electricity our customers. the service at by sought level estment in urban network capacity and security. The investment will address localised areas of localised areas will address investment The in urban estment network capacity and security. Continuous improvement in our internal processes, so that customer interactions and broader and broader interactions customer so that processes, in our internal improvement Continuous supported centrally and co-ordinated. are management relationship and benchmarkMeasure delivery improvement. services for times for and set key targets decision making our asset management into processes. fully integrated needs are customer that Ensure of the AMP. in the development stakeholder engagement includes proactive This key stakeholders, that plan. Ensure improvement relationship a customer and implement Develop Renewal of the rural network, targeted at improving its reliability performance. This is described furtherThis performance. its reliability improving network, at Renewal of the rural targeted 8. in Chapter Inv is described furtherThis 7. in Chapter growth. forecast in our Smart will further from data Boxes leverage We of our smart utilisation Better data. metering decision makingsupport processes. of our investment Monitor like PV and EV. technologies opportunities emerging from available this plan. to central and their business needs are Deliver multiple mediums. and can contact us across know are who we Customers know will act and customers we on it. give is easy to feedback Customer meet their needs. us to on and can rely the services value o er we Customers within the community and within the industry. ‘partner of choice’ be a to WEL is considered
• • • • CUSTOMER SERVICE INITIATIVES CUSTOMER serviceOur include: customer initiatives • • • • Our customer experience initiatives have been categorised into two keys aspects: keys two network performance into been categorised have initiatives experience Our customer service.and customer INITIATIVES PERFORMANCE NETWORK will be pursued during period: the AMP network initiatives reliability following The Customer experience is a measure of how customers feel about the service and the value they receive. about the service feel they receive. value customers and the of how is a measure experience Customer interact we how receives, each customer of reliability includes the level experience WEL, customer For supply we the package from and the information derived of serviceswith them, the value provide we is happening on our network.on what are: experience customer ‘Best in Service’ providing Our objectives for • • • • • WEL aspires to being ‘Best in Service’. This epitomises our objective to provide excellent customer service. customer excellent provide our objective to epitomises This ‘Best in Service’. being to WEL aspires are and community groups councils with businesses, in our community, relationships that also believe We is a high priority experience customer performance is key that area Accordingly, success. our future vital to our on-goingto business. CUSTOMER EXPERIENCE INITIATIVES CUSTOMER 6.3.2 6.3.1 EXPERIENCE OBJECTIVES CUSTOMER 6.3 EXPERIENCE CUSTOMER
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– System Average Interruption Duration Index (weighted). SAIDI (un-weighted) is the SAIDI (un-weighted) Index Interruption Duration (weighted). Average – System . ed) – Is a measure of the number of actual interruptions experienced by each of the number of actual by experienced – Is a measure interruptions ed Interruptions – System Average Interruption Frequency Index (weighted). SAIFI measures the SAIFI measures Index (weighted). Interruption Frequency Average – System (weighted) Review our customer feedback process to ensure that the customers’ concerns and opinions are and opinions are concerns the customers’ that ensure to process feedback Review our customer clearly identi ed. SAIDI (weight an average for duration interruption It the average signi es indicator. used reliability most frequently a SAIDI example, For usually minutes. It in units of time, measured is of a year. the course over customer, without 60 minutes on the network experienced consumer a on average that indicates of 60 minutes us allow to customers urban between and rural been di erentiated have Our SAIDI targets power. re ect the Commerce network below performance. on rural In shown the targets addition, focus to planned outages. 50% for by (adjust) SAIDI outcomes weight to approach revised Commission’s below targets The included in the measure. are of planned outages duration means only half of the This 50% of planned outages. incorporate SAIFI a SAIFI example For per year. interruption a power will have a customer number of times on average with As in a year. on the network interruptions has two customer the average that indicates of two on rural focus us to allow to urban between and rural been di erentiated have SAIDI, our SAIFI targets planning outages. for network performance and weighted Repeat or less outages two experience that of urban customers the percentage measure Our targets customer. or less outages per year. four experience that customers of rural and the percentage in each year the targeted exceed didn’t segment in the relevant means 90% of our customers 90% example For number of interruptions. Reinforce our vision and values with our sta , particularly the ‘Best in Service’ objective by providing providing objective by ‘Best in Service’ particularly the with our sta , values our vision and Reinforce additional training
• network into been categorised have measures experience our customer above, our initiatives Similar to performance service. and customer PERFORMANCE MEASURES NETWORK Commission. the Commerce Our network by performance include those prescribed measures are: measures The • • • network planned the performance performance based on our historical for for Our are adjusted targets programmes. network, and maintenance in our rural our renewal primarily from improvements period. the AMP over each measure for 6.3.3.1 sets out the targets Table • CUSTOMER EXPERIENCE MEASURES AND TARGETS AND MEASURES EXPERIENCE CUSTOMER 6.3.3 6 hours 3 hours URBAN RURAL 42 42 42 42 42 42 42 42 42 42 79 78 78 77 77 77 77 77 77 77 226 225 223 221 221 221 221 221 221 221 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 4.74 4.70 4.67 4.63 4.63 4.63 4.63 4.63 4.63 4.63 1.41 1.40 1.39 1.39 1.39 1.39 1.39 1.39 1.39 1.39 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 75% 77% 79% 80% 80% 80% 80% 80% 80% 80% – we regularly survey gauge their performance regularly atisfaction to a sample of customers – we – the average number of work days to provide a resolution to any any to a resolution provide to days number of work – the average Response Time
– measures the average number of working days it takes us to provide a provide it takes us to number of workingonnection days the average – measures Quote Time expectations, the price they’re prepared to pay, and their satisfaction with our service. During the AMP pay, to prepared they’re the price expectations, 90%. 85% to satisfaction in customer from an improvement targeting are period we New C Customer S Customer an and new connections our network. targeting to upgrades are During period for the AMP we quote 10 working 15 to days. in our quoting times from improvement Complaint period of ten our resolution maintain will seek to During period the AMP we receive. we complaint working days.
Maximum time to restore power Maximum restore time to MEASURE 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Urban SAIDI (weighted) Rural SAIDI Rural (weighted) Total SAIDI Total (weighted) Urban SAIFI (weighted) Rural SAIFI Rural (weighted) Total SAIFI Total (weighted) Urban Repeat Interruptions is 2 or less) (target Rural RepeatRural Interruptions is 4 or less) (target Table 6.3.3.2 Restoration Promise 6.3.3.2 Restoration Table In addition to these measures we are committed to restoring supply as soon as possible following an soon as possible following supply as restoring to committed are we In these measures addition to hours of within three our urban customers to power undertake we restore to Accordingly interruption. our residential do not meet this, If we customers. our rural to an outage and within six hours of an outage $150. will receive customers commercial $40 and our large will receive customers and small commercial accidents vehicle lightning, such as storms, our control faults beyond does not apply to ‘WEL Promise’ The partyor third damage. of the the duration apply for 6.3.3.2 and, Table in detailed below are restoration maximum times for The period. AMP • • • CUSTOMER SERVICE MEASURES CUSTOMER serviceOur customer performance are: measures Table 6.3.3.1 Network Customer Experience Performance Targets 2017 - 2026 Targets Performance Experience 6.3.3.1 Network Customer Table
| WEL ASSET MANAGEMENT PLAN
2016 114 2016 | WEL ASSET MANAGEMENT PLAN 115 14 13 12 11 10 10 10 10 10 10 <10 <10 <10 <10 <10 <10 <10 <10 <10 <10 85% 86% 86% 87% 87% 88% 88% 89% 90% 90% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 We have undertaken a review to optimise our works delivery model and are in the process of undertaken delivery in the process optimise our works to model and are have a review We the outcomes. implementing aligned. they are and ensure deliveryReview our works policies and procedures management functionality systems deliveryAlign with our works model. key deliveryReset for activities. performance and targets indicators and performance approaches reporting. improvement our continuous Enhance Works delivery is safe, of high quality and on time. delivery is safe, Works skills and retained. core knowledge developed and Essential are use enable and support we delivery. systems e cient The in the delivery tension model. commercial appropriate through money is achieved for Value and and cost) time, quality, our delivery and monitor performance measure continuously (safety, We improve. to ways seek always reoccurrences. prevent learn to and always can occur errors understand that We
MEASURE Customer Satisfaction Customer New Connection Quote (workdays) Time Complaint Response Complaint (workdays) Time Our targets are based on our historical performance adjusted for steady improvement over the AMP over improvement steady performance on our historical based for are adjusted Our targets period. AMP the over each measure for the targets shows 6.3.3.3 Table period. To achieve our cost e ciency objectives there are a number of initiatives we are in the process of putting in the process are we e ciency a number of initiatives our cost are achieve objectives there To include: They in place. • • • • • Our overarching cost e ciency objective is to implement our works plan, without compromise to safety, safety, to e ciency plan, without compromise cost our works implement objective is to Our overarching e ciency Our cost primarily with the objectives concerned customers. are to cost the least feasible at e ciency delivery of our works function. capability. Section our asset management addresses 6.5 below e ciency cost Our objectives are: for • • • • • • for the right incentives and provide achieve wish to our objectives position we re ect the cost Collectively delivery services. and the safe of projectscapability and maintenance development COST EFFICIENCY INITIATIVES Table 6.3.3.3 Other Customer Experience Performance Targets 2017 – 2026 2017 Targets 6.3.3.3 Other Performance Experience Customer Table 6.4.2 6.4.1 COST EFFICIENCY OBJECTIVES 6.4 COST EFFICIENCY 281 279 278 276 274 273 271 270 268 266 ± 5% ± 5% ± 5% 5% ± ± 5% ± 5% ± 5% ± 5% ± 5% ± 5% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 – operating costs that are allocated, in accordance with Information Disclosure Disclosure with Information in accordance allocated, are that costs – operating ustomer ustomer y performance is maintained. entive and corrective maintenance decisions are made using quantitative analytical techniques analytical techniques made using quantitative decisions are maintenance and corrective entive Full scope of the project delivered. scope Full Safet met. are and constructionDesign standards met. are Timeframes and in a timely manner. accurately captured are and drawings information built As - - - - - Our asset management investment decisions are optimised and are based on appropriate trade-o s based on appropriate and are optimised decisions are investment Our asset management risk and reliability. expenditure, capital and operational between Prev support techniques These trade-o s quanti able expenditure, operational between such as FMEA. and reliability. asset condition our and operate maintain plan, build, we the way our Smart inform to data fully leverage Box We peak capacity and remediation, fault identi cation analysis, exception includes voltage This network. planning and optimised load control. decisions. key inputs in our investment plan are our works deliver use to when and who we How, in the externally as a leading player recognised and are team metering operational an e ective have We the bene t of our community. for streams enabling new revenue smart environment metering Cost Per C Per Cost electricity under Generally as an asset to treated distribution service costs requirements, excluding interest revaluation, payments, tax subvention in NZ, depreciation, Practice Accounting Accepted the number of connections; divided by and costs and recoverable and pass-through expenses – project delivery (excluding Performance performance capital works Expenditure Capital for of projects with the budget cost the delivered comparing by will be measured initiated) customer performance conditions The is subject the following to challenged). (which has been appropriately being met:
Capital Expenditure Expenditure Capital performance % Cost per customer ($) per customer Cost MEASURE Table 6.4.3 Cost E ciency Performance Targets 2017 - 2026 E ciency 6.4.3 Cost Targets Performance Table • • • • • Our asset performance ensure: to objectives are Asset performance is a direct consequence of our asset management decisions and processes. performance decisions and processes. Asset of our asset management is a direct consequence our asset performance on further objectives focus our asset management developing Accordingly, capability. • • The measures we have established for cost e ciency cost are: established for have we measures The ASSET PERFORMANCE OBJECTIVES ASSET PERFORMANCE The targets are based on achieving the expenditure levels forecast. Table 6.4.3 shows the targets for each for the targets 6.4.3 shows Table forecast. levels based on achieving the expenditure are targets The period. the AMP over measure 6.5.1 6.5 6.4.3 TARGETS AND EFFICIENCY MEASURES COST
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2016 116 2016 | WEL ASSET MANAGEMENT PLAN 117
>35% >35% >35% >35% >35% >35% >35% >35% >35% >35% >60% >60% >60% >60% >60% >60% >60% >60% >60% >60% xperience ormance – maximum coincident demand divided by total total demand divided by – maximum coincident Utilisation Capacity ransformer y Safet e Customer e ciencyCost perfAsset – measures the e ciency of assets we contract from Transpower at GXPs. Low Low GXPs. at Transpower the e ciency from contract – measures of assets we GXPs at Factor Load can also cause concern capacity values while higher and cost of excess the provision indicate values and capacity su cient available; not having due to T Total transformer capacity. transformer a review of our asset management planning and decision making processes to ensure the right ensure planning and decision making to of our asset management a review processes and decision support and then implemented identi ed processes are tools capabilities, particularly enhance to approach tools diagnostic of using of our maintenance in the area a review practices maintenance and manage our assets we the way of opportunitiesan assessment use Smart improve to to data Box our network; and operate the performance of improve PV to e.g. technologies emerging assessing opportunities integrate to network assets. and future existing
Total Transformer Transformer Total Utilisation Load Factor at Factor Load GXPs MEASURE 2017 2018 2019 2020 2021 2022 2023 2024 2025 2025 Table 6.5.3 Asset Performance Targets 2017 - 2026 Targets 6.5.3 Asset Performance Table This section describes our historical performance for the measures we have established under each have sectionThis we describes performance the measures our historical for new are of the measures many initiatives, improvement re ecting our recent performance However, area. information. historical no relevant and have location, faults the time, For systems. within our information Our performance is recorded information Other and reported performance is captured and fault category duration information is recorded. reporting and Board management processes. in monthly regularly going the targets and scale for context this section data, with historical provides those measures For sectionThe performance is structured by areas. forward. • • • • In the short as our capability on network utilisation performance our asset measures term focus measures performance initial asset are: These measures developed. being are • • The basis of the targets is maintaining our historical performance. Table 6.5.3 shows the targets for each for the targets 6.5.3 shows Table performance. our historical is maintaining basis of the targets The period. the AMP over measure The initiatives we are undertaking are we performance our asset initiatives achieve objectives in the next to The include: year • • • • ASSET PERFORMANCE MEASURES AND TARGETS AND ASSET PERFORMANCE MEASURES ASSET PERFORMANCE INITIATIVES ASSET PERFORMANCE PERFORMANCE EVALUATION 6.6 6.5.3 6.5.2 % 43% 74 00 09 24 11 54% 3.0 2.1 36% TARGET ACTUAL VARIANCE YEAR TO DATE AT NOVEMBER 2015 NOVEMBER AT DATE TO YEAR % (64%) 2015 00 01 36 59 n/a n/a n/a n/a 4.8 240500 280 533 15% 7% 200 336 172 376 (14%) 12% TARGET ACTUAL VARIANCE
69 97 79 83 70 74 65 68 80 93
1.53 1.84 1.40 1.63 1.12 1.19 1.00 1.36 1.27 1.45 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SAIFI (weighted) Injury (lost days severity rate per 200,000 man hours) Site ObservationsSite by Supervisors and Managers Injury lost days related TRIFR per 200,000 man hours TRIFR per 200,000 man Number of near miss and suggestions improvement (weighted) ANNUAL PERFORMANCE SAIDI SAFETY MEASURE Public Safety Incidents Safety Public (Actual harm) (Actual Public Safety Incidents Safety Public (Potential harm) (Potential Table 6.6.2.1 Network Customer Experience Historical Performance 2006 and 2015 Performance Historical Experience 6.6.2.1 Network Customer Table Our network performance over the last two years is presented below in greater detail and also on a in greater below is presented Our years network the last two performance over indicated. basis where weighted Traditionally our measures of customer experience have focused primarily on network performance. focused have experience of customer our measures Traditionally with the length and is associated the majority performance have the historical of we data Accordingly, performance historical on a Our 10 year is shown supply. power customer’s frequency to of interruptions presentation The approach. measurement revised Commission’s re ecting the Commerce basis, weighted in shown performance the targets basis makes the historical to directly comparable on a weighted in the SAIDI and SAIFI outcomes. included planned are Section were as only 50% of outages that 6.3.3 We remain concerned by the level of public safety incidents involving our network. objectives Our safety involving incidents of public safety level the by concerned remain We our performance. improve continuously been established to have and initiatives The table below shows our safety performance against the targets we set for 2015 and 2016. Note that the that 2015 and 2016. Note set for performance our safety we against the targets shows table below The year. those used last from di er AMP established in this measures CUSTOMER EXPERIENCE CUSTOMER SAFETY Table 6.6.1 Safety 2016 2015 and Performance Table 6.6.2 6.6.1
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2016 118 2016 | WEL ASSET MANAGEMENT PLAN 119 % -7% -7% -22% -22% 52 42 81 86 236 227 4% 73% 68% 1.41 1.29 9% FORECAST AT DECEMBER 2015 AT FORECAST TARGET FORECAST VARIANCE % -11% -32% -19% -22% -12% 45 2015 41 76 93 n/an/a 0.61 4.86 n/a n/a 0.59 4.72 0.72 3.64 23% 216 285 90% 91% 1% 90% 90% 0% 80% 65% 1.29 1.45 TARGET ACTUAL VARIANCE
tive equipment (28%) mainly from distribution lines. (28%) mainly from equipment tive A major storm between the 10th and 12th June 2014 resulted in 16.33 SAIDI minutes. This storm met storm This in 16.33 SAIDI minutes. the 10th and 12th June 2014 resulted between A major storm by the daily limits of 13.25 minutes as the time lost exceeded a major event the regulatory criteria for on 11th June 2014. 1.93 minutes debris winds and vegetative of strong the combination from resulted were 7.47 SAIDI minutes lines. onto thrown - - Adverse weather (30%): weather Adverse Defec cables: 15.26 SAIDI and diggers hit party accidents vehicle Third (25%) mainly from interference accidents. vehicle caused by were minutes
CUSTOMER CUSTOMER EXPERIENCE MEASURES Urban SAIDI (weighted) Rural SAIDI Rural (weighted) Total SAIDI Total (weighted) Urban SAIFI (weighted) SAIFI Rural (weighted) SAIFI Total (weighted) Urban Repeat Interruptions is 2 or less) (target Rural RepeatRural Interruptions is 4 or less) (target WORST PERFORMING FEEDERS WORST Reporting the performance monitor of individual lines and cables supplying customers. on our worst We the poor service action improve plans to appropriate performing and develop helps identify feeders issues with these feeders. broader address and to customers a ected by received 9 months performingOur during 2015 along with the most recent 10 worst the period 2011 to feeders 6.6.2.3 below. Table performance in is shown With the exception of urban repeat outages, for the year ended March 2015 we did not meet our network 2015 we ended March the year for outages, of urban repeat the exception With to contribution with the percentage below, shown primary this are The for reasons performance targets. each category in brackets: from shown SAIDI minutes total • NETWORK PERFORMANCE NETWORK • • expect come higher than expected we to is signi cantly accidents the SAIDI impactAlthough vehicle from 2016. for target in on or close to Table 6.6.2.2 Network Customer Experience Performance 2015 and 2016 Performance Experience 6.6.2.2 Network Customer Table 1.82 0.05 0.71 0.84 0.68 2.47 1.22 0.13 0.29 1.84 2016 07/12/15) (YTD AS AT (YTD AS AT 3.61 2.75 2.74 2.53 2.22 1.73 1.84 1.74 2.03 1.87 SAIDI AVERAGE AVERAGE WEIGHTED Te Uku Te Kopuku Matangi Matangi Te Ohaki Te Rotowaro Taupiri, Orini Taupiri, Hamilton East Hamilton Eureka, Tauwhare Horotiu, Ngaruawahia Horotiu, SILCB4 SILCB1 RAGCB3 GORCB1 HORCB6 WEACB6 WEACB3 HAMCB2822 HAMCB2802 1 2 3 4 5 6 9 7 8 10 FINCB2 RANK FEEDERS AREA SUPPLIED 2011-2015 An explanation of the performance for each feeder is summarised below together with ongoing initiatives with ongoing initiatives together is summarised below of the performance each feeder explanation An for service. improve to Table 6.6.2.3 Top 10 Worst Performing Feeders 10 Worst 6.6.2.3 Top Table
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2016 120 2016 | WEL ASSET MANAGEMENT PLAN 121 % n/a
FORECAST AT DECEMBER 2015 AT FORECAST TARGET FORECAST VARIANCE % 2015 85% 99% 14% 85% n/a TARGET ACTUAL VARIANCE Performance has been a ected by failing insulators and 16mm2 copper conductor. conductor. and 16mm2 copper insulators failing by has been a ected Performance (storm) weather adverse due to were that years the previous Unplanned outages in prioritise is to this strategy Improvement the performance a ected feeder. of this have particularly programme our re-conductoring in our renewal feeder projects and add minimise impact to on outages. additional automation in being addressed are These conductor failures. and 16mm2 Copper insulator and, projects. and ongoing capital programme our renewal the performance a ected strikes the lines and lightning have onto debris blown Tree has been undertaken minimize programme to vegetation Proactive of this feeder. the lines. onto debris blown tree outages due to risks of feeder being now has been impacted sectionaliser which are by Performance failures in performance in 2014 storms drop also due to was large The replaced. progressively events. pole” vs “car and a number of the a ected have events pole” vs “car the lines and onto debris blown Tree been have and RMUs A number of network switches performance of this feeder. minimise outages. installed to poor have to caused this feeder have strikes” “birds and events pole” vs “car as and networks switches insulators, of crossarms, replacements performance. Proactive years. in recent been initiated sectionalisers have the a ected have strikes” “birds and events pole” vs “car External such as in uences of sectionalisers fuses and HV replacements Proactive performance of this feeder. years. in recent been initiated have poor performance. A number of RMU and network switch have to this feeder minimise outages. to been undertaken years have in recent replacements failed insulators the lines, falling onto vegetation has been impacted by feeder This Re-conductoring in been initiated conductor. projects have and 16mm2 Copper the projects which will improve including automation nancial year the previous performance in the future. of the this feeder CUSTOMER CUSTOMER EXPERIENCE Customer Satisfaction Customer SILCB4 / SILCB1 SILCB4 been impacted line clashes by performance has predominantly The of both feeders RAGCB3 GORCB1 HORCB6 HAMCB2802 along with other external such in uences failures arrester and lightning Insulator WEACB3 HAMCB2822 caused have strikes” “birds and events pole” vs “car External such as in uences FINCB2 FEEDER WEACB6 STRATEGY Table 6.6.2.5 Network Customer Experience Performance 2015 and 2016 Performance Experience 6.6.2.5 Network Customer Table The results of our performance against our target are shown in Table 6.6.2.5 below. Table in shown of our performance are results against our target The CUSTOMER SERVICE CUSTOMER satisfaction. customer is for data historical have we measure service single customer The related Table 6.6.2.4 Worst Performing Feeder Strategies Performing Feeder 6.6.2.4 Worst Table
% % 6% (5%) (11%) (17%) FORECAST AT JANUARY 2016 JANUARY AT FORECAST 26.7 25.2 FORECAST AT DECEMBER 2015 AT FORECAST 60%35% 57% 29% TARGET FORECAST VARIANCE TARGET FORECAST VARIANCE % % (3%) (2%) (18%) 2015 2015 226 201 11% 226 251 32.8 33.9 60%34% 59% 28% TARGET ACTUAL VARIANCE TARGET ACTUAL VARIANCE
ASSET PERFORMANCE MEASURES COST EFFICIENCY Cost per Customer ($) per Customer Cost Work Capital Delivery ($M) GXP Load Factor (%) Factor GXP Load Transformer Utilisation (%) Our load factor performance has remained below target in both years, without any additional capacity any without in both years, Our load factor target performance below has remained in 2016 primarily higher due to increase to is forecast utilisation Our transformer GXPs. being added at peak demand. Our asset performance for 2014 and forecast for 2015 is shown below. 2015 is shown for Our asset performance 2014 and forecast for We met our cost per customer e ciency targets in 2015. We forecasted to be over the target in 2016. the target be over to forecasted We e ciency per customer in 2015. met our cost targets We We completed our capital delivery programme in 2015 but are predicting a variance in 2016. predicting a variance in 2015 but are our capital delivery completed programme We Our performance measures for cost performance e ciency are shown in Table 6.6.3 below. 6.6.3 below. Table performance cost Our performance e ciency in for shown measures are Table 6.6.3 Cost E ciency 6.6.3 Cost 2014 and 2015 Performance Table ASSET PERFORMANCE Table 6.6.4 Asset Performance 2015 and 2016 6.6.4 Asset Performance Table 6.6.4 6.6.3 EFFICIENCY COST
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123 123
describes our non-network related projects and expenditure. (7.8): describes our non-network related Investments work y issues arising from reduced back-up capacity due to growth in peak demand. capacity growth due to back-up reduced y issues arising from explains the core elements of our approach to network planning. network planning. to of our approach elements the core (7.1): explains of approach view a summary plans (7.3): provides of GXP development development of our network view fundamental input that in uences the expected timing for growth and security related investment investment and security related growth the expected timing for in uences input that fundamental Non-Net describes how we forecast electricity demand for the AMP period. This is a This electricity period. the AMP forecast demand for we (7.2): describes how Demand forecast technologies to impact the AMP and the changes that have occurred due to the review of the the review due to occurred impact have to and the changes that the AMP technologies network; and network spend; and requirements and outlines our urban and rural development plans; development and outlines our urban and rural requirements presents the summary of the total forecasted the summary (7.7): presents forecasted Expenditure of the total Summary Development Network and expected timing for the required growth and security related investment in the urban network; investment and security related growth the required and expected timing for Over Over across the network;across Capacity constraints forecasted to arise due to peak demand growth in speci c areas within the in speci c areas peak demand growth arise due to to forecasted Capacity constraints changing delivery requirements, the potential for small scale distributed generation and emerging and emerging generation small scale distributed for the potential deliverychanging requirements, network; in the rural investment and security related growth the required expected timing for Securit describes our proposed investment at Transpower’s GXPs; Transpower’s at investment (7.4): describes our proposed GXP Investment presents the needs analysis, options, development projects, and projects, development options, needs analysis, the Plan (7.6): presents Network Rural The presents the needs analysis, options, development projects, projects, development options, the needs analysis, Plan (7.5): presents Network Urban The This covers planning assumptions, security criteria, de nition of the equipment ratings we use, use, security we ratings planning assumptions, criteria, de nition of the equipment covers This 10 year plan; 10 year
we have in place for the AMP period. The chapter is structured as follows: chapter The period. the AMP for in place have we may need to be re ned. need to may Our approach to network planning and non-network development is aligned with our vision is aligned network planning and non-network development to Our approach operating environment changes the investments forecast for the mid to latter part latter the mid to period of the AMP for forecast changes the investments environment operating community” based investment targeted leads to approach This performance objectives 6. describedoverall in Chapter of the network.on needs in each area OVERVIEW OVERVIEW OF APPROACH AND NON-NETWORK AND NON-NETWORK INVESTMENTS NETWORK DEVELOPMENT DEVELOPMENT NETWORK The projects identi ed in this chapter are our view of what is appropriate. It as the is possible that is appropriate. our view of what are in this chapter projects identi ed The The two fundamental performance needs addressed by our network development investments are: investments our network performance development fundamental two by The needs addressed This chapter sets out our approach to network and non-network development and describes plans the network and non-network development to sets out our approach chapter This Accordingly, our plans have been reviewed and aligned with the requirements of our customers and the of our customers with the requirements and aligned been reviewed our plans have Accordingly,
• • • • • • • • • •
“Provide high quality, reliable utility ourenabling and protecting whilst services reliable customers our by valued high quality, “Provide
7.1 7.
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2016 124 2016 | WEL ASSET MANAGEMENT PLAN 125
ements. An investment need or primary driver for an investment is identi ed. is identi ed. need or primary an investment for investment driver An ation: formulated and considered. The number of options will vary number of options The depending on the type and complexity and considered. formulated Need identi c Need Equipment ratings based on the manufacturer nameplate ratings as detailed in Section ratings based on the manufacturernameplate 7.1.3. ratings Equipment Future peak demand growth as forecast in Section 7.2. as forecast peak demand growth Future the corresponding performancethe corresponding 6. objectives discussed in Chapter with the exception of asset condition and health, which is covered by renewals and maintenance and maintenance renewals by and health, which is covered of asset condition with the exception and health, growth and security, customer requests, technology change, or legal, regulatory and or legal, change, technology requests, customer and security, and health, growth Following need identi cation, potential options that meet the need identi ed are are meet the need identi ed that options potential need identi cation, Following Options analysis: Voltage requirements and other regulated limits. and other regulated requirements Voltage demand following a major power outage. a major power demand following discussed in Chapter 8. discussed in Chapter environmental requirements. Network development projects can fall under all the need categories Network development requirements. environmental of need(s). Non-network options and demand management solutions are considered as a potential as a potential considered are solutions of need(s). Non-network options and demand management option and undertaken if practical e ective. and cost Speci c individual customer and stakeholder requir and stakeholder Speci c individual customer The inputs required to forecast electricity as set out in Section and demand, forecast consumption to 7.2. inputs required The The large embedded generation plants operated at Te Uku and Te Rapa will not be available to meet to Rapa will not be available Te Uku and Te at operated plants embedded generation large The overloads. prevent to and can be operated designed network is well The 2 and and stakeholders as detailed in Chapter performance reliability customers our The by sought The needs considered fall under the categories: safety, reliability performance, reliability asset condition safety, fall under the categories: needs considered The
lowest whole of life cost. There are occasions where a speci c externality adopt in a decision to where occasions will result are There cost. whole of life lowest and non-network investment. In summary, our approach consists of two stages. stages. of two consists our approach In summary, and non-network investment. an alternative investment path e.g. regulation. All investments are subject to the governance framework framework subject the governance are to investments All regulation. e.g. path investment an alternative 5. described in Chapter and processes Chapter 5 describes our process and approach to all investment projects, including network development network including development projects, all investment to and approach 5 describesprocess our Chapter determines the ability of the network to maintain supply following the failure of an asset. Our of an asset. security the failure the abilitydetermines supply following maintain of the network to criteria are speci ed to achieve our performance objectives (Chapter 6) and the reliability performance our performance 6) and the reliability achieve objectives speci ed to (Chapter criteria are sought by our customers and stakeholders (Chapter 2). and stakeholders (Chapter our customers by sought Security criteria set the minimum required level of network redundancy. The degree of redundancy degree The of network redundancy. Security level criteria set the minimum required OUR APPROACH KEY PLANNING ASSUMPTIONS AND INPUTS There are many inputs utilised in the planning process, the key inputs are: the inputs utilised in the planning process, many are There The key assumptions informing our network development planning are: our network development key assumptions informing The The investment option selected is the one that ensures safety, and best meets identi ed need(s) for the need(s) for and best meets identi ed safety, selected option ensures one that is the investment The • • • • • • • • • • 7.1.2 SECURITY CRITERIA 7.1.1
Majority restored Majority restored Restore 100% Restore Restore 100% Restore 100% Restore Restore 90%, repair 90%, repair Restore in repair time in repair INTERRUPTION in repair time in repair time in repair within two hours, hours, within two time 100% time 100% restore 90%, repair 90%, repair restore Within three hours three Within hours three Within AFTER 2ND TIME TO TIME TO RESTORE 100% in repair time 100% in repair , is factored into our planning into , is factored
5
* Maintain 100% Restore 100% Restore in repair time in repair INTERRUPTION Maintain 100% three hours 90%, three three hours 90%, three hours 75%, three restore 75%, within restore time 100% repair restore 75%, within restore time 100% repair 50%, within restore time 100% repair Within 15 minutes 15 minutes Within Within one hour Within one hour Within of PCD of PCD AFTER 1ST TIME TO TIME TO RESTORE N N N N LEVEL SECURITY >300 <300 >5000 N-1 >2000 >1000 >2000 N-1 IMPACT CUSTOMER CUSTOMER Medium urban zone Rural feeder, urban spur, urban spur, feeder, Rural Rural zone subs and urban zone Rural interconnected feeders interconnected feeders interconnected (PCD) MVA RANGE OF POST Under 1 MVA Urban & rural zone substations zone distribution transformers substations CBD zone and switching and switching CBD zone Small GXP or large urbanSmall GXP or large 5 to 10 MVA 5 to substations CONTINGENT DEMAND CONTINGENT DEMAND 2.5 to 5 MVA 2.5 to 10 to 25 MVA 10 to 1 to 2.5 MVA 1 to 10 to 25 MVA 10 to The transformer emergency capacity rating is used for planning purposes. All new power transformers are designed with an emergency are transformers All new power is used for planning purposes. emergency rating capacity transformer The Post Contingent Demand (PCD) is the peak demand after demand reduction through contracted load control services. load control Demand Contingent contracted (PCD) is the peakafter demand demand reduction through Post 5 based on the capacity rating stated on the nameplate. on the nameplate. based on the capacity stated rating helps to mitigate the residual planning risk. This means that should load increase faster than expected, than expected, faster should load increase means that This planning risk. the residual mitigate helps to then the transformer can be overloaded for short for durations. can be overloaded then the transformer were designed to. If applied within the guidelines of the standards it will accelerate the aging of the the aging If it will accelerate applied within the guidelines of the standards to. designed were the risk of failure. increase but does not greatly transformer WEL Networks puts considerable e ort into ensuring our loading forecasts are accurate and up to date. date. and up to accurate are e ort ensuring our loading forecasts WEL Networksconsiderable puts into PLANNING RISK MITIGATION equipment normal operation conditions. However, the ability to overload transformers for short for durations transformers the ability overload to However, conditions. normal operation equipment emergency overload of 120%. Distribution transformers have an emergency overload rating of 150%. rating emergency an overload have of 120%. Distribution transformers emergency overload overload rating of 130%. Older power transformers without an emergency overload rating stated on the nameplate are assumed to have an have to assumed are on the nameplate stated rating without an emergency overload transformers of 130%. Older power rating overload The security criteria used by us are set out in Table 7.1.2. Table out in set securityThe us are criteria used by The process used is detailed in section 7.2. It is rare for the load to increase at a rate which exceeds which exceeds a rate at increase used is detailed in section load to the 7.2. It for process The is rare The overloading of the transformers is in line with the international standards that the transformers the transformers that standards is in line with the international of the transformers overloading The All equipment, with the exception of power and distribution transformers of power with the exception equipment, All Table 7.1.2 WEL’s Planning Security Planning Criteria 7.1.2 WEL’s Table * STRATEGIES OPERATION 7.1.3 ENERGY EFFICIENT AND NETWORK PLANNING RISK MITIGATION
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YEAR 2011 2012 2013 2014 2015 2016 0 800 600 400 200 1600 1400 1200 1000
being reassessed and determined that replacement is not warranted. This results in an increase in in an increase results This is not warranted. replacement that and determined being reassessed transformers. This will allow us to determine the peak loading with more accuracy and into half hour accuracy and into the peak loading with more determine us to will allow This transformers. in e ciency. improvement and therefore utilisation transformer be shifted the two between load to allows This is underutilised. the neighbouring transformer the e ciency improving of both. thereby transformers We are testing a model that will use our smart a model that the load on all distribution testing determine to are meters We durations. This has resulted in transformers that were scheduled for replacement based on ADMD replacement for scheduled were that in transformers has resulted This durations. The use of this model will also allow us to identify transformers that are overloaded and where and where overloaded are that transformers identify us to also allow use of this model will The CUMULATIVE CAPACITY KW CAPACITY CUMULATIVE - - CUMULATIVE CAPACITY OF PV CONNECTIONS Load management: A few of the transformers on the network operate in overload at times of peak at in overload on the network operate of the transformers A few management: Load transformer. This also has the reduce the loading on the conductors and further improves the e ciency the loading on the conductors and further also has the reduce This improves transformer. demand. The use of load control will reduce any overload and therefore improve the e ciency of the improve and therefore overload any will reduce use of load control The demand. of the network. Smart meters:
feeders. While the prime reason for this is to provide alternate supply in a fault scenario, it can also be supply in a fault scenario, alternate provide this is to for the prime reason While feeders. by transferring load from Chartwell to Borman substations. This has removed to need to install a third install a third need to to has removed This Chartwell load from Borman transferring to substations. by Figure 7.1.4 shows the recent growth in PV installations. in PV installations. growth the recent 7.1.4 shows Figure If the neighbouring zone substation or feeder is lightly loaded it can also be used as a solution to be used as a solution to loaded it can also is lightly If or feeder substation the neighbouring zone to increase as the cost becomes more a ordable during the AMP period. Our policy during period. connecting the AMP for a ordable more becomes as the cost increase to transformer at Chartwell at transformer substation. possible. Most distributed generation is expected in the form of PV installations that generate electricity generate that of PV installations is expected in the form Most generation distributed possible. used to mitigate planning risk by providing capacity short in the providing planning risk by periods. planning medium term mitigate to used to Many sections of WEL’s network has the ability to be ooaded to neighbouring zone substations and substations neighbouring network has the ability zone be ooaded to to WEL’s sectionsMany of Figure 7.1.4 Installed PV Connection Capacity 7.1.4 Installed PV Connection Figure WEL applies a number of strategies around network energy e cient operation, these include: operation, e cient network energy around of strategies WEL applies a number NETWORK ENERGY EFFICIENT OPERATION ENERGY EFFICIENT OPERATION NETWORK and Te Uku (64MW wind) and one small generation unit at Hamilton City Council’s Waste Water Plant Plant Water Waste City Hamilton Council’s unit at Uku wind) and one small generation (64MW Te and distributed generation is to comply with the regulated terms and to facilitate connections as as e ciently facilitate and to terms with the regulated comply is to generation distributed evenings. peak demand during winter reduce materially during hours and as such, it is unlikely to sunlight capital investment. An example of this is where, in 2010, 6MW of peak load reduction was achieved achieved 2010, 6MW of peak load reduction in was where, of this is example An capital investment. (1MW cogeneration). (1MW cogeneration). INFLUENCE OF DISTRIBUTED GENERATION, EMERGING TECHNOLOGY EMERGING GENERATION, INFLUENCE OF DISTRIBUTED There are two large embedded generators in WEL’s network located at Te Rapa cogeneration) (50MW Te at network located WEL’s in embedded generators large two are There The amount of small-scale distributed generation within our network is small, however this is expected however our network within is small, generation of small-scale distributed amount The • • INITIATIVES AND DEMAND MANAGEMENT 7.1.4
we expect gain a better we to 6 Probabilistic risk modelling was used to evaluate the cost vs bene t of a number of projects, bene t of a number of projects, vs the cost evaluate risk used to modelling was Probabilistic in the voltage/load rated issues, where the conservative planning assumptions were able to be able to the conservative planning assumptions were where issues, rated in the voltage/load than the value of the risk being addressed. In it this case although the risk less than the cost was of the risk than the value being addressed. be replaced to controls lighting the risk critical further street for reduce allowing possible to was by or mesh control. via either the ripple signal control for allow These with smart boxes. network has resulted in a number of changes. of changes. in a number network has resulted nancial cost for each asset class. The proposed program ensures the total risk pro le will remain will remain risk pro le the total ensures program proposed The each asset class. for nancial cost and the relative importance, in terms of risk, for safety, network performance, environment and network performance, environment importance, of risk, in terms safety, for and the relative Condition Based Risk Management (CBRM) has provided greater clarity around asset renewals clarity asset renewals around greater Based Risk has provided ManagementCondition (CBRM) challenged and more informed investment decisions made. decisions made. investment informed challenged and more stable over the planning period. stable over such as the Avalon ripple plant, where it was determined that the cost was signi cantly higher signi cantly was cost the that determined it was where ripple plant, such as the Avalon Smart box data to improve the assumptions made. This is best demonstrated by the reduction by demonstrated is best This made. the assumptions Smart improve to data box The challenging of load growth assumptions and the need for improved security the across improved assumptions and the need for of load growth challenging The 3. 2. 4. 1. Ministry of Business, Innovation and Employment funded forum assessing the impact generation. of distributed and Employment Ministry Innovation of Business, level of demand based initiatives are accounted for in our planning. Similar to the impact Similar to of PV and EV in our planning. we for accounted are of demand based initiatives level is di cult to quantify at this time. at quantify is di cult to investment at this time it may drive the need for further network investment during the AMP period. during further the AMP the need for drive network investment time it may this at investment In undertaking maintain project capital guiding principle to plan the was of the 10 year the review In addition to PV, EV and residential and commercial battery storage systems are the main examples are battery systems storage and commercial EV and residential In PV, addition to Like PV generation, EVs do not at this time in uence our network planning or investment. our network planning or investment. this time in uence do not at EVs Like PV generation, change during period. the AMP this to for potential is signi cant there However, would expect that the impact of demand initiatives is likely to increase over the AMP period, however this however period, the AMP over increase expect is likely to the impactwould that of demand initiatives the current reliability in the subtransmission and urban areas and allow for improvement in the rural in improvement for and allow urban and areas subtransmission in the reliability the current DEMAND INITIATIVES performance. The tools used in this review included: used in this review tools The performance. understanding of the potential impacts of emerging technology on our network. technology impacts potential understanding of the emerging of EMERGING TECHNOLOGY We assume that the current level of load control will continue for the AMP period. Accordingly, a base Accordingly, period. the AMP for will continue of load control level the current assume that We While the growth in PV installations does not have a material in uence on the network design and on the network design in uence a material does not have in PV installations the growth While and anticipated future developments on the network. capital developments the 10 year that future and anticipated recommends review The of emerging technologies with the potential to impact on the design and operation of our network. impact to and operation on the design potential with the technologies of emerging spend pro le be reduced by $25.8M. Work was also undertaken to atten the spend pro le. also undertaken was the spend pro le. atten to Work $25.8M. by be reduced spend pro le 6 The table 7.1.5 gives a summary of the major components that have resulted in the change. in the change. resulted a summary have that table 7.1.5 gives The components of the major This year a review of the 10 year capital projects was undertaken to rea rm the drivers with the present undertaken capital projects was with the present of the 10 year the drivers rea rm a review to year This Through our participationThrough in an industry called GreenGrid forum 7.1.5 PLAN PROJECT CAPITAL YEAR THE 10 IN CHANGES
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All All All All All All 24/25 24/25 25/26 16/17 16/17 18/19 19/20 19/20 YEAR 16/17,17/18 19/20, 20/21 22/23, 23/24 All excluding 16/17 excluding All 16/17, 19/20, 20/21 -892 -525 -666 -244 -809 8,395 -1,681 -1,431 -1,281 -7,197 -9,167 15,604 -2,712 -8,605 -3,925 -1,996 -4,678 -2,138 -1,878 ($,000) -25,826 AL CHANGE AL CHANGE TOT e were a number of GFN projects outlined in the previous plan. However given the issues given plan. However of GFN projects a number outlined in the previous e were in a reduction in capital commitments. in a reduction commitments. in capital that have occurred on the commissioning of the Weavers GFN unit, it has been decided to complete the complete it has been decided to GFN unit, Weavers of the on the commissioning occurred have that that has been used previously is conservative and in a number of locations has driven the early has driven is conservative and in a number of locations has been used previously that replacement of transformers. We have also used the voltage related issues from the smart boxes andthe smart issues from boxes related also used the voltage have We of transformers. replacement undertaken a risk based prioritisation to address the voltage related issues. Both of these have resulted resulted Both of these have issues. undertaken related the voltage a risk address based prioritisation to GFN – Ther Voltage/load Related Issues – Via the data from smart boxes we have been able to more accurately accurately more been able to have we smart from the data boxes Via Issues – Related Voltage/load commissioning of this unit and evaluate its performance before considering any additional units. additional units. any considering its performance of this unit and evaluate before commissioning estimate transformer loadings. This has con rmed that the ADMD (After Diversity Maximum Diversity Demand) the ADMD (After that has con rmed This loadings. transformer estimate Mitigation of line clashing near Zone HAM 11kV Interconnections 11kV HAM Huntly to Kimihia to Huntly 33kV Cable Reliability Projects Huntly to Glasgow 33kV Cable Glasgow to Huntly Weavers Transformer Upgrade Transformer Weavers Caro Switching Station Switching Caro Gordonton Zone Transformer Replacement Transformer Zone Gordonton 33kV GIS Glasgow GFN (Ground Fault Neutraliser) Neutraliser) Fault GFN (Ground COB to ALE trunk for CBD ALE trunk for to COB Glasgow Glasgow Second Transformer Other Customer Works Driven Voltage / Load Related Issues Related / Load Voltage Substations Total Avalon Ripple Plant Avalon Airport Substation Zone
Transpower Transfers Asset Transpower 11kV Cable Zone Interconnections Upgrades Interconnections Zone 11kV Cable
PROBABILISTIC RISK MODELLING PROBABILISTIC USE OF SMART BOX DATA DATA USE OF SMART BOX smartboxes includes: smartboxes The summary of capital expenditure changes driven from improved planning information via planning information improved summary from The changes driven of capital expenditure The summary of capital expenditure changes driven from probabilistic risk modelling includes: probabilistic summary from The changes driven of capital expenditure Table 7.1.5 Major capital project plan changes project 7.1.5 Major capital Table • •
ton Zone Transformer Replacement – It was planned to replace the transformers at the time of at transformers the – It Replacement replace planned to was Transformer Zone ton t Zone Substation – Given the changes to some of Peacockes’ circuits and slower than expected and slower circuits some of Peacockes’ the changes to – Given Substation t Zone ers Transformer Upgrade – It was planned to replace the transformers at Weavers Substation Weavers at the transformers – It replace Upgrade planned to was Transformer ers e Kowhai 33kV board from Transpower. A cost bene t has been completed that determined that it that determined that bene t has been completed A cost Transpower. from 33kV board e Kowhai liquidation of Solid Energy and the proposed retirement of the Genesis Energy generators it has been generators of the Genesis Energy retirement and the proposed of Solidliquidation Energy be required, and may in fact need to be removed to return the mine land to the required state. state. the required the mine land to return to in fact be removed and may need to be required, backup for the existing ripple plants. A cost bene t analysis has been completed and determined that and determined has been completed bene t analysis A cost ripple the existing plants. backup for been proposed to defer until there is greater clarity regarding any potential load increase in the CBD. load increase potential any clarity regarding is greater there until defer to been proposed has been determined that with some minor improvements the Garden Place Switching Station can be Station Switching Place the Garden with some minor improvements that has been determined Huntly to Kimihia 33kV cable – The Kimihia Zone Substation predominantly supplies the Huntly East supplies the Huntly predominantly Substation KimihiaThe Zone Kimihia to Huntly 33kV cable – However this equipment is Transpower owned therefore it is considered that this risk resides with this risk that resides it is considered therefore owned Transpower is equipment this However Hamilton 11kV Interconnections – The Hamilton 11kV has a number of feeders that cannot be that feeders 11kV has a number of Hamilton The – 11kV Interconnections Hamilton improved interconnection. It was decided to place these works on hold as the urban is reliability It these works place decided to interconnection. was improved will also continue use of smartThe mesh control box plant. install the Avalon to e ective it is not cost this is appropriate. this is appropriate. the area. the area. load or to not related are upgrade behind the substation the drivers However upgrade. the substation will mean that This the transformers. replace not to it is proposed Therefore condition. the transformer the liquidation of Solid Energy, it is likely that the load on the Weavers Zone Substation will decrease. will decrease. Substation Zone Weavers the load on the it is likely that of Solidthe liquidation Energy, to be investigated and will be deployed for control of critical street lighting locations. locations. lighting of critical street control for and will be deployed investigated be to was not cost e ective to purchase these assets. assets. these purchase to e ective not cost was the T upgraded and the equipment remain in place. in place. remain and the equipment upgraded Mine. Given the liquidation of Solid Energy it is possible that the Kimihia Zone Substation will no longer Substation the Kimihia it is possible that of Solid the liquidation Zone Energy Mine. Given Mitigation of line clashing near Zone Substations - The areas that had the greatest impact have been impact have had the greatest that areas The - Substations Mitigation of line clashing near Zone Weav at times the Gordonton Zone Substation will not have N-1 security, however given the size of the load, of the load, the size given however N-1 security, will not have Substation Zone times the Gordonton at at the same time as the switchgear replacement. This was to allow for load growth, however given given however growth, load for allow to was This replacement. the same time as the switchgear at Gordon Alexandra to Substation Cobham from install a trunk feeder ALE trunk - It to to proposed was COB Glasgow 33kV GIS / Huntly to Glasgow 33kV Cable / Glasgow Second Transformer – Given the – Given Transformer Second / Glasgow 33kV Cable Glasgow to 33kV GIS / Huntly Glasgow Consequently the upgrade has been postponed until there is certainty regarding future loading in is certainty future there has been postponed until regarding the upgrade Consequently Caro Switching Station – It was proposed to relocate the Garden Place Switching Station. However it However Station. Switching Place the Garden relocate – It to Station proposed was Switching Caro decided to delay any upgrades in the Huntly area. area. in the Huntly upgrades any delay decided to deemed acceptable. deemed acceptable. growth in the airport area, it was decided to delay the installation on the Airport in the airport the installation delay Substation. decided to it was Zone growth area, completed and no furthercompleted is planned in this space. work ooaded to other substations. Therefore a fault on this board could result in signi cant outages. outages. in signi cant result could a fault on this board Therefore other substations. ooaded to Switching Station which would provide greater security should the load in the CBD increase. It security has should the load in the CBD increase. greater provide which would Station Switching Transpower and not WEL. and not Transpower Transpower Asset Transfers – Last year’s AMP had proposed to purchase the Hamilton 11kV Board and 11kV Board Hamilton the purchase to had proposed AMP – Last year’s Transfers Asset Transpower Airpor Avalon Ripple Plant – It was proposed to install a ripple plant at the Avalon Zone Substation to act to Substation as a Zone the Avalon at install a ripple Ripple – It plant to Plant proposed was Avalon 11kV Cable Zone Interconnection Upgrades – This was to increase urban reliability by providing providing urban by reliability increase to was This – Upgrades Interconnection Zone 11kV Cable
LOAD GROWTH ASSUMPTIONS LOAD GROWTH CBRM The summary of capital expenditure changes driven from a review of load growth assumptions include: of load growth a review summary from The changes driven of capital expenditure The summary of capital expenditure changes driven from CBRM includes: summary from The changes driven of capital expenditure • • • • • • • • • • • •
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on applications received and our received on applications ime of Use Tari s (enabled by smart impact unlikely to (enabled by peak demand in - are meters) Tari s ime of Use temperature can impact peak demand. Colder winters can increase demand by demand by can increase winters can impact Colder impacts peak demand. ature - temperature growth in these areas is expected to be modest and we be modest and we is expected to in these areas – growth Districtto & Agricultural Residential no adjustment has been made for small scale distributed generation due to due to generation small scale distributed has been made for – no adjustment Generation Distributed Residential T Residential is assumed at current levels throughout the planning period. throughout levels current - is assumed at Control Load residential growth is expected in the northeast in the Borman area, growth and - residential City Residential Hamilton our growth forecast is based forecast – our growth Industrial and Commercial have assumed a continuation of the historical trend observed adjusted for the step change as a result of change as a result the step observed for trend of the historical adjusted assumed a continuation have its limited ability to impact peak demand. This assumption will be reviewed in future forecasts as our forecasts in future assumption will be reviewed This ability impactits limited to peak demand. is estimated using the best information available. We have forecast 20MVA demand increase in the demand increase 20MVA forecast have available. We using the best information is estimated Waika the immediate future. However, Time of Use (TOU) tari s may become a feature of future retail tari s retail of future (TOU) a feature of Use become may Time tari s However, future. the immediate the Te Kauwhata Structural change; Plan Te the understanding of PV and other emerging technologies improves and these technologies become become and these technologies improves technologies understanding of PV and other emerging prevalent. more new subdivisions planned for Ruakura in the southeast of Hamilton City. We have estimated a total of a total estimated have We City. in the southeast of Hamilton Ruakura new subdivisions planned for as much as 10% compared to average winters. This variation is allowed for in our contingency planning. for is allowed variation This winters. average to as much as 10% compared assumed 2 MVA of peak demand for Ruakura during the AMP period. during Ruakura the AMP of peak demand for assumed 2 MVA discussions with developers. A diversity factor is assigned to the new demand and an uptake rate the new demand and an uptake rate factor to diversity is assigned discussions with developers. A o erings so we have assumed a 1% reduction in peak demand from 2020 onwards. assumed a 1% reduction in peak demand from have so we o erings 9MVA of peak demand growth for the Borman area. Due to uncertainty of timing and intensity, we have have we uncertainty Due the Borman to area. for of timing and intensity, of peak demand growth 9MVA Temper Tasman area (between The Base and Rotokauri) and 2MVA for the adjacent Horotiu area. Horotiu the adjacent for Base and Rotokauri)The and 2MVA (between area Tasman
forecast AMP period. The drivers are set out. are drivers The period. AMP forecast Forecasting future peak demand is inherently challenging and somewhat subjective. For example, we we example, For subjective. and somewhat challenging is inherently peak demand future Forecasting in peak demand between GXPs and the total network peak demand. One-o network peak demand. the total and repeat not likely to GXPs in peak demand between events DRIVERS OF PEAK DEMAND related investment across the network the period. duringthe AMP across investment related ESTABLISHING BASE DEMAND ESTABLISHING are eliminated from these actual peaks. This establishes a baseline demand level for our forecasts. for level establishes a baseline demand This these actual from peaks. eliminated are are currently observing of electricity our domestic amount to currently are a reduction being delivered in the average of uncertaintyand the level involved. Our forecast of peak demand is a fundamental input and determines the expected timing for growth growth the expected input and determines timing for a fundamental of peak demand is Our forecast is discussed in this section, including our assumptions demand forecasts developing to Our approach is assessed and Each component a number of components. methodology involves Our forecasting Our network is currently delivering just over 1,200 GWh of electricity 1,200 GWh peak with coincident just over per year delivering Our network is currently demand of 251MW. This peak demand is the principle driver of our network development investment. investment. of our network peak demand is the principle development driver This demand of 251MW. generally don’t occur at the same time, due to diversi cation in customer use. Similarly, there is diversity there Similarly, use. in customer diversi cation due to the same time, at occur don’t generally customers, at peak demand across the network and increasing amounts of PV being installed. of PV being installed. amounts the network and increasing peak demand across at customers, Historically of peak demands during period. our peaks the AMP our best estimate produce to combined months. during winter occur FORECASTING METHODOLOGY FORECASTING The most recent peaks for 2016 were measured at zone substations, GXPs and in total across our network. across and in total GXPs substations, zone at measured 2016 were peaks for most recent The meaning they coincident, not generally GXP are and their respective substations zone peaks between The The second component of the methodology assesses the drivers of peak demand growth during the growth of peak demand methodology assesses the drivers of the component second The • • • • • • • 7.2.1 7.2 DEMAND FORECAST PEAK
19.4 19.5 19.5 19.5 19.6 19.6 19.7 17.0 18.0 18.6 19.2 19.9 20.5 21.1 21.1 21.1 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 15.7 15.8 15.98 16.12 16.3 16.4 16.5 16.7 16.9 17.0 14.6 14.7 14.7 14.7 14.7 14.8 14.8 14.8 14.8 14.8 20.4 20.4 20.5 20.5 20.6 20.6 20.6 20.6 20.6 20.7
7 (MVA) FIRM (N-1) CAPACITY 89.8 90.4 91.1 91.9 92.5 93.1 93.7 94.3 94.6 95.2 25.4 25.4 25.5 25.6 25.6 25.7 25.7 25.8 25.9 26.0 29.8 30.0 30.1 30.1 30.2 30.2 30.3 30.4 30.5 30.5 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 251.2 253.4 255.6 257.5 259.0 260.4 262.2 264.0 265.6 267.4 137.2 138.4 139.5 140.4 141.2 142.1 143.5 144.9 146.4 147.6 N-1 23.8 18.9 19.1 19.3 N-1 22.9 SECURITY ork delivers. The impact on peak demand will depend on how and when customers charge charge impact customers and when The depend on how on peak demand will ork delivers. growth in EV usage has the potential to signi cantly increase the amount of electricity the amount increase signi cantly our to in EV has the potential usage – growth EVs their EVs. No allowance for the impact of EVs is included in the forecast, however we are monitoring are we however in the forecast, is included impact the for of EVs No allowance their EVs. netw developments and will review our assumptions as necessary. assumptions as necessary. our and will review developments Borman N-1 20.6 16.0 Bryce St SUBSTATION ZONE Chartwell N-1 25.9 Claudelands N-1 22.9 Avalon Dr Avalon Hamilton 11kV Hamilton Hamilton 33kV Hamilton Huntly 33kV Huntly GXP System Peak System Te Kowhai 33kV Kowhai Te
Based on emergency thermal chain rating forecast and the demand forecast for the AMP period. period. the AMP for and the demand forecast forecast forecast is expected to be less accurate in the later years of the AMP period. The uncertaintyThe will be period. of the AMP years the later in be less accurate is expected to forecast FORECASTING UNCERTAINTY FORECASTING rm capacity means the 4 hour emergency thermal chain rating. We expect to see small increases in localised peak demand caused by connection growth in residential in residential connection peak demand caused by growth in localised expect see small increases to We the individual GXP 7.2.2 shows Table period. the AMP over expect modestly increase peak demand to We Our development plans and corresponding investments may be amended in subsequent revisions of our revisions be amended in subsequent may investments plans and corresponding Our development greater where there are changing circumstances or the potential for new activities. for or the potential circumstances changing are there where greater our network. subdivisions and the commercial/industrial sectors. subdivisions and the commercial/industrial DEMAND FORECAST 2017 TO 2026 TO 2017 DEMAND FORECAST 7 The zone substations where growth is expected to exceed the rm capacity are highlighted. In the table rm the highlighted. capacity are exceed is expected to growth where substations zone The Table 7.2.3 shows the expected peak demand at each of our zone substations. substations. zone the expected each of our peak demand at 7.2.3 shows Table All forecasts involve a degree of uncertainty our demand a degree a result particularly As longer periods. involve over forecasts All on circumstances stakeholders and changing and needs of our customers re ecting the emerging AMP Table 7.2.2 GXP demand forecast to 2026 to 7.2.2 GXP demand forecast Table • 7.2.3 DEMANDS ZONE SUBSTATION 7.2.2
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2016 132 2016 | WEL ASSET MANAGEMENT PLAN 133 35.1 35.4 20.6 20.7 33.0 20.6 3.7 3.7 3.8 3.9 4.0 4.0 4.1 4.1 4.2 4.2 3.5 3.5 3.5 3.6 3.6 3.6 3.7 3.7 3.7 3.7 9.2 9.3 9.3 9.4 9.5 9.6 9.7 9.7 9.7 9.8 7.6 7.7 7.8 7.9 7.9 8.0 8.1 8.1 8.1 8.1 7.3 7.4 7.5 1.6 7.6 1.7 7.6 1.7 7.7 1.7 7.8 1.7 7.8 1.7 7.8 1.7 7.8 1.8 1.8 1.8 7.2 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.6 7.9 8.1 8.3 8.6 8.8 9.1 9.1 9.2 9.2 4.3 4.4 4.5 4.6 4.8 4.9 5.0 5.2 5.2 5.2 4.6 4.7 4.8 4.9 5.0 5.1 5.2 5.2 5.2 5.2 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 5.0 5.0 5.1 5.2 5.3 5.3 5.4 5.4 5.5 5.5 2.0 2.0 2.1 2.1 2.2 2.2 2.2 2.3 2.3 2.3 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10.2 10.4 10.7 11.0 11.2 11.5 11.8 11.8 11.9 11.9 12.3 12.3 12.3 12.3 12.3 12.3 12.3 12.4 12.4 12.4 13.6 13.6 13.6 13.7 13.7 13.7 13.7 13.7 13.7 13.8 14.3 14.8 15.0 15.1 15.2 15.3 15.5 15.6 15.6 15.6 26.3 26.5 26.8 27.0 27.2 27.5 27.6 27.7 27.9 28.0 20.4 20.5 20.5 20.6 20.6 20.6 20.6 17.0 17.0 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 19.0 19.0 19.0 19.0 19.0 19.0 19.0 19.1 19.1 19.1 20.8 22.0 23.3 24.5 26.6 28.7 30.9 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0
7 5 10 10 9.1 7.5 25.9 22.9 11.4 (MVA) FIRM (N-1) CAPACITY N N N N N N N N-1 22.9 N-1 22.9 N-1 15.4 N-1N-1 10 N-1 25.9 N-1 28.2 N-1 12.6 SECURITY This reduction has not be factored into Table 7.2.3 as the future of these mines is unclear at this stage. at this stage. of these mines is unclear 7.2.3 as the future Table into reduction has not beThis factored Substations run at N Security, however these substations have an N-1 capacity of: Gordonton 5MVA and Weavers 7.5MVA. and Weavers of: an N-1 capacity these substations have 5MVA Gordonton however Substations run at N Security, substations. will be a reduction in the load of Kimihia close then there and Weaver Solid (in receivership) by Energy If the mines operated
Finlayson Rd Finlayson Hampton Hampton Downs Horotiu N-1 18 Kent St Kent Kimihia** Latham CourtLatham Ngaruawhia N-1 7.5 Hoeka Rd Pukete-Anchor N-1 30 Peacockes Rd Peacockes Pukete - 11kV Pukete Raglan HAM11 N-1 40 SUBSTATION ZONE Gordonton N* 10 Glasgow St Glasgow Cobham N-1 25.9 Whatawhata Weavers** N* 15 Wallace Rd Wallace Sandwich Rd Te Kauwhata Te Uku Te Tasman N-1 25.9
Based on emergency thermal chain rating ** * 7 Table 7.2.3 Zone Substation demand forecast to 2025 to Substation demand forecast 7.2.3 Zone Table
95.2 30.5 26.0 2026 147.6 89.8 25.4 29.8 2017 137.2 PEAK DEMAND FORECAST (MVA) PEAK DEMAND FORECAST
9 82.0 40.0 136.0 132.0 (MVA) FIRM (N-1) CAPACITY
8 80.0 200.0 220.0 120.0 (MVA) chgear CAPACITY INSTALLED INSTALLED t
t t load control. Hamilton 11kV GXP switchgear Hamilton 33kV GXP switchgear Hamilton Rural developmen Rural is scheduled for 2024. is scheduled for that reductions in the peak demand can be achieved by improving the reinstatement of our the reinstatement improving by reductions in the peak demand can be achieved that Urban developmen GXP investmen One of the two transformers at Hamilton (T5) Hamilton at transformers One of the two be upgraded. is smaller than the other and due to Our peak demand forecast shows a need to augment the supply capacity at the Hamilton GXP. GXP. the supply capacity the Hamilton at augment a need to shows Our peak demand forecast demand of approximately 3MVA). demand of approximately or will be investigated and implemented:. Improved load management. Initial investigations indicate indicate Initial load management. investigations Improved and implemented:. or will be investigated Te Kowhai 33kV GXP swit Kowhai Te Transpower’s life cycle replacement of T5 will add additional rm capacity of 9MVA. The replacement replacement The T5 will add additional rm capacity of 9MVA. of cycle replacement life Transpower’s The Gordonton load has been shifted from the Hamilton GXP to the Huntly GXP (coincident peak GXP (coincident the Huntly GXP to the Hamilton load has been shifted from Gordonton The To address the capacity issue at the Hamilton 33kV GXP the following measures have been undertaken have measures 33kV GXP the following the capacity the Hamilton issue at address To Huntly Hamilton 33kV Hamilton Hamilton 11kV Hamilton GXP Te Kowhai Te
Based on continuous rating Based on continuous Based on emergency thermal chain rating investigated: removed from the 10 year plan. the 10 year from removed PLANNED INVESTMENT Our network development plan is comprised of three component plans: component of three plan is comprised Our network development expectations discussed in Chapter 4. The following sections each plan component. discuss following The 4. expectations in Chapter discussed GXP INVESTMENT OVERVIEW OF NETWORK DEVELOPMENT PLANS DEVELOPMENT OF NETWORK OVERVIEW 8 9 There are no further GXP investments planned over the AMP period. the AMP planned over no further are GXP investments There This analysis indicated that this would not have been an economic transfer for WEL and was therefore therefore WEL and was for transfer been an economic have not this would that indicated analysis This The option of transferring ownership of the equipment listed below from Transpower to WEL was to Transpower from below listed of the equipment ownership option of transferring The Table 7.4.1 below shows the rm capacity at each GXP and the forecast peak demand in 2017 and 2026. the rm capacity the forecast each GXP and shows at 7.4.1 below Table These re ect the performance requirements described in Chapter 6 and align with our stakeholder 6 and align described in Chapter re ect the performanceThese requirements Table 7.4.1 GXP Capacity and Demand Forecast Table • • • • • • • • • 7.4 7.3
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2016 134 2016 | WEL ASSET MANAGEMENT PLAN 135
TIMING 2017 to 2025 2017 to 4,207 ESTIMATED ESTIMATED COST ($000) load to existing substations. existing load to Increased demand growth Increased demand growth Need: Investment INVESTMENT NEED /OPTIONS Upgrade the capacity to Upgrade Options Considered: at TAS substation due to increased industrial increased due to substation TAS at CONSIDERED commercial development. development. commercial Tasman, develop a new zone substation, or o substation, a new zone develop Tasman, ts speci cally requested by individual customers. individual customers. by ts speci cally requested ement in network control and automation in network control ement LV Distribution increasing the subtransmission capacity to the Tasman substation Tasman capacity the the subtransmission to increasing improv network investments related safety identi ed investmen Other system xed Assets Other xed system works. driven Customer developing a new zone substation and substation a new zone developing ooading to neighbouring zone substations. neighbouring zone ooading to Subtransmission Zone Substation Zone PROJECT / PROJECT PROGRAMME GXP –TAS 33kV link GXP –TAS Te Kowhai (TWH) Kowhai Te
between the transformers and the 11kV board. This will increase the rm capacity to will increase of the substation This the 11kV board. and the transformers between includes increasing the capacity at TAS as discussed in Section 7.5.2 below. Work undertaken this year Work as discussed in Section 7.5.2 below. TAS the capacity at includes increasing investment required over the AMP period. It period. the AMP is structured as follows: over required investment and industrial growth expected within the Tasman area (between The Base and Rotokauri) The will require (between area Tasman expected within the and industrial growth this included: address capacity 2020. Options to additional subtransmission by One subtransmission investment need has been identi ed over the AMP period. Residential, commercial commercial Residential, period. the AMP over need has been identi ed investment One subtransmission Our Urban Development Plan addresses the need for additional capacity additional security and the need for localised areas in addresses Plan Our Urban Development determined that the capacity of the TAS substation could be increased by installing additional cables by be increased could substation TAS the capacity that determined of the of a new sub-transmission cable is expected to take two years and therefore the physical works are are works the physical and therefore of a new sub-transmission years take two cable is expected to of growth within Hamilton City. It also re ects including: additional needs City. Hamilton within of growth scheduled to startscheduled to in 2023. 32MVA, thereby delaying the need for increased capacity in sub-transmission until 2025. The installation The capacity in sub-transmission increased 2025. until the need for delaying thereby 32MVA, The subtransmission project for the period is summarised in Table 7.5.1.1. Table the period is summarised in project for subtransmission The The preferred option is the installation of additional capacity to the Tasman substation (TAS). This option This (TAS). substation Tasman of additional capacity the option is the installation to preferred The This section describes the identi ed development needs, the options considered, and the resulting and the resulting the options considered, needs, sectionThis development describes the identi ed Table 7.5.1.1 Urban subtransmission development projects 2017 to 2026 2017 to projects development 7.5.1.1 Urban subtransmission Table • • • • • • • • • • • • 7.5.1 SUB-TRANSMISSION 7.5 DEVELOPMENT PLAN URBAN - 1,200 2,947 - - - - - 60 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 arc ash protection detects the ash of light produced by an by detects protection produced ash the ash of light arc lash protection upgrade: y related investments. A number of projects are planned to improve the safety of the equipment the safety improve planned to of projects A number are investments. y related the equipment is old and the substation is damp. Together these characteristics make substation Together is damp. is old and the substation the equipment above. listed the conditions improve to released during such events and reduces the risk and severity of injury for the equipment operator. the risk and severity of injury operator. and reduces the equipment during such events for released we are planning to upgrade the access control in all zone in all zone control the access upgrade planning to are we Project: Security Site Access Substation electrical arc and then automatically trips the e ected equipment. This greatly reduces the energy energy the reduces greatly This equipment. tripselectrical the e ected and then automatically arc safety complex to manage. Therefore, to improve the safety for our employees an upgrade will occur will occur an upgrade our employees for the safety improve to Therefore, manage. to complex safety system. reader card with an improved substations the Garden Place switching station has limited space, space, has limited station switching Place the Garden upgrade: station switching Garden Place Arc F
- - - at the Latham 33kV zone substation does not interface with our proposed protection upgrade does not interface upgrade protection substation 33kV zone proposed with our the Latham at and operation of that equipment. They also ensure that access to potential hazardous areas is areas hazardous potential to access that also ensure They equipment. of that and operation above, forecast growth in the Tasman area requires additional capacity to be installed by 2020. additional capacity be installed by to requires area Tasman in the growth forecast above, completed in 2017. completed controlled. The planned safety projects include: planned safety The controlled. Safet (as discussed in Section 7.5.4). Therefore, an upgrade of the switchgear began in 2016 and will be of the switchgear an upgrade Therefore, (as discussed in Section 7.5.4). The upgrade of Latham 33kV switchgear to improve network security. The current legacy current The switchgear network security. improve to 33kV switchgear of Latham upgrade The Additional capacity for localised demand growth in the Tasman area. As discussed in Section As area. 7.5.1 Tasman in the localised demand growth capacity for Additional ($000) SUBTRANSMISSION Subtransmission
investment and timing. investment Categories of urban zone substation investment needs have been identi ed during the AMP period. during period. the AMP been identi ed needs have investment substation of urban zone Categories ZONE SUBSTATIONS ZONE SUBSTATIONS The table on page 118 summarises the zone substation projects, options considered, projected options considered, projects, substation table on page 118 summarises the zone The These are: These Table 7.5.1.2 summarises the expected subtransmission investment over the AMP period. the AMP over 7.5.1.2 summarises investment the expected subtransmission Table Table 7.5.1.2 Urban subtransmission development projects forecast expenditure pro le expenditure forecast projects development 7.5.1.2 Urban subtransmission Table • • • 7.5.2
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2016 136 2016 | WEL ASSET MANAGEMENT PLAN 137 -
2025 2019 2019 2018 2021 to 2021 to 2018 to 2017 to 2017 to TIMING 54 2017 2,000 1,853 688 550 242 4,323 COST ($000) -
200 200
- Demand growth of Rotokauri Demand Need: growth Investment Security Need: of switchgear upgrade Investment Improve security of the Improve Need: Investment Improved operator safety operator Improved Need: Investment or do nothing with protection be compatible Safety Issue, Issue, Safety Need: Investment INVESTMENT NEED /OPTIONS CONSIDERED NEED /OPTIONS INVESTMENT ESTIMATED protection PPE, or Install ash protection. PPE, protection arc Upgrade of switchgear to to of switchgear Upgrade Options Considered: Upgrade existing GAR existing Upgrade Options Considered: security or Improve Options Considered: ash full-cover Provide Options Considered: New Zone substation, New Zone Options Considered: do nothing structure development or increase capacity, or transfer demand or transfer capacity, or increase station sites substation Switching Station, Establish new 11kV switching Establish new 11kV switching Station, Switching complex management complex 537 601 466 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 er of customers between Peacockes feeders (PEACB3 to PEACB6) to (PEACB3 feeders Peacockes between er of customers NGACB5) (HORCB6 to and Ngaruawahia Horotiu between er of customers . These projects address distribution feeders that don’t meet our security don’t that distribution feeders projects address These security . network ved . A number of substations have issues with high humidity and have . A number of substations substations onditioning for Distribution network reinforcement of feeders that have identi ed loading issues. loading issues. identi ed have that of feeders Distribution network reinforcement Upgrade Avalon feeder AVACB4; and AVACB4; feeder Avalon Upgrade Transf Transf - - - - . These projects include: These capacity projectsDemand growth . Impro have become underrated due to demand growth. The securityThe projects include: demand growth. due to underrated become have temperature. This results in insulation determination and faults. Therefore it has been proposed it has been proposed Therefore and faults. determination in insulation results This temperature. to address the issue by installing air conditioning units. units. installing air conditioning the issue by address to criteria based on the number of customers supplied. It also includes the upgrade of LV circuits which circuits It of LV supplied. criteria also includes the upgrade based on the number of customers Air-c ($000) SUBSTATIONS SUBSTATIONS ZONE Zone substations Zone Project Latham 33kV GISLatham Refurbishment Implementation PROJECT / PROJECT PROGRAMME Garden Place Place Garden outdoor to indoor to outdoor Substation Site Site Substation Security Access Switching Station Station Switching conversion conversion Arc Flash Flash Arc Tasman 3rd 3rd Tasman Transformer
Four categories of urban distribution network investment needs have been identi ed over the AMP over been identi ed needs have of urban distribution categories network investment Four period. These These period. are: Table 7.5.2.2 summarises the zone substation investment required over the AMP period. the AMP over required investment substation 7.5.2.2 summarises the zone Table Table 7.5.2.1 Urban zone substation development projects for 2017 to 2026 for 2017 to projects substation development 7.5.2.1 Urban zone Table Table 7.5.2.2 Urban zone substation projects forecast spend pro le forecast substation projects 7.5.2.2 Urban zone Table • • • 7.5.3 DISTRIBUTION 2021 2022 2023 2023 TIMING 2019 to 2026 2019 to 2017 to 2026 2017 to 2017 to 2018 2017 to
321 522 512 536 500 204 8,614 COST ($000) feeder capacity and ability supply underfeeder to A number of substations have have A number of substations Need: Investment Large number of customers number of customers Large Need: Investment Feeders identi ed with loading identi ed Feeders Need: Investment Capacity and security Need: issues Investment PEACB3 exceeds network exceeds PEACB3 Need: Investment exceeded have AVACB4 Need: Investment Feeder weak sections weak limits Feeder Need: Investment high humidity and temperature issues high humidity and temperature NGACB5, Do nothing NGACB5, INVESTMENT NEED /OPTIONS CONSIDEREDINVESTMENT NEED ESTIMATED Do nothing PEACB6, install automated switch, Do nothing switch, install automated in high SAIDI impact increase feeder capacity. Install new feeder. capacity. feeder increase pre-existing issues network ventilation, due nothing ventilation, Install air conditioning, Install air conditioning, Options Considered: Upgrade feeder, Install new feeder, Upgrade Options Considered: Upgrade network to rectifynetwork to Upgrade Options Considered: and/or security issue to some customers Transfer Options Considered: Transfer some customers to to some customers Transfer Options Considered: Transfer some customers to to some customers Transfer Options Considered: on a long rural line, therefore a large number of a large therefore line, on a long rural due to distributed generation connections the to generation distributed due to Replace weak sections weak Replace to Options Considered: standard on number of connected on customers standard customers on a section of line that is prone to faults to on a sectioncustomers is prone of line that customer number standard (1,200) which resulted (1,200) which resulted number standard customer contingency AVACB1, upgrade feeder to increase capacity and increase to feeder upgrade AVACB1, tion. 11kV cables, Install automated switch Install automated 11kV cables, Network issues resulting from the installation of small scale the installation from Network issues resulting Embedded generation. embedded genera for substations for Reduce customers customers Reduce NGACB5 Network Upgrade Network Upgrade Distributed Due To Distribution Network Reinforce Reduce customers customers Reduce PEACB6 Distribution Ring Feeders transferring to to transferring transferring to to transferring Upgrade AVACB4 AVACB4 Upgrade Upgrade CBD Upgrade PROJECT / PROJECT PROGRAMME applications Generation on HORCB6 by on PEACB3 by by on PEACB3 Air-conditioning
- Ongoing and timing. The table below summarises the distribution level projects, options considered, projected expenditure expenditure projected options considered, projects, summarises the distribution table below level The Table 7.5.3.1 Urban distribution level network projects for 2017 to 2026 to for 2017 network projects level 7.5.3.1 Urban distribution Table •
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2016 138 2016 | WEL ASSET MANAGEMENT PLAN 139
3,072 3,098 664 50 1,550 1,371 154 150 550 550 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 AUFLS is used by the SO to the SO to is used by AUFLS scheme changes. (AUFLS) Shedding Load tic Under Frequency This is a communications enhancement project to allow for the protection upgrade and upgrade the protection for allow project to enhancement is a communications This outes. Replacement of old and less reliable distance protection is planned for 2016. is planned for protection distance of old and less reliable Replacement ection upgrade. With improved communication circuits to many of many to circuits communication improved With IP Camera. Video - ess and Monitoring false tripping and a corresponding improvement in network performance. improvement false tripping and a corresponding Prot Fibre r Fibre happening at a zone substation prior to fault sta entering. prior to substation a zone happening at improved operational exibility. There is also an allowance to install bre when other work is being when other work install bre to is also an allowance There exibility. operational improved transformers will improve modelling of network voltages. This project includes the installation of project includes the installation This modelling of network voltages. will improve transformers By replacing the controls for some critical streetlight some critical streetlight for the controls By replacing control. of critical streetlight Mesh control ripple plant. . Demand of distribution monitoring undertaken. of distribution transformers monitoring Load Continuation of Smart Boxes installation at customers’ meter boards. boards. meter customers’ at installation of Smart Continuation Boxes Smart investments. Box additional 11 LV transformer demand monitoring devices. demand monitoring transformer additional 11 LV . Ongoing subdivision development within the northwest and northeast projects. Ongoing subdivision development for Consenting for allowed have we Therefore, utility services for land access is secured. that requires of Hamilton areas the cost covers Provision requirements. national with the new comply to and changes will be required consenting costs within these areas for future subtransmission supply routes. subtransmission future for within these areas costs consenting meet the SO requirements. to of new assets required is what determine remotely which can be used to can be installed, cameras substations our zone of the be a failure these should there switch remotely it will be possible to with smartcontrols boxes shed load to prevent total failure of the power system. The way in which AUFLS will be set is changing will be set is changing in which AUFLS way The system. of the power failure total prevent shed load to Automa Acc These provide information on the network and assist in network management. information provide These in less and will result safety improving system, a simpler protection provide will system improved The Distribution DISTRIBUTION DISTRIBUTION ($000)
Eight investment needs have been identi ed for other system xed assets during the AMP period. period. assets during the AMP xed other system for been identi ed have needs investment Eight OTHER SYSTEM FIXED ASSETS FIXED SYSTEM OTHER Table 7.5.3.2 summarises the distribution investment required over the AMP period. AMP the over required 7.5.3.2 summarises the distribution investment Table The following table summarises the projects, options considered, projected expenditure and timing. expenditure projected options considered, table summarises the projects, following The These are: These Table 7.5.3.2 Urban distribution level network projects forecast spend pro le forecast network projects 7.5.3.2 Urban distribution level Table • • • • • • • 7.5.4 2017 2018 TIMING 2017 to 2022 2017 to 2017 to 2026 2017 to 2017 to 2026 2017 to 2017 to 2026 2017 to 2017 to 2019 2017 to 2017 to 2019 2017 to 2017 to 2018 2017 to 35 80 30 75 339 150 1350 2,251 3,318 COST ($000) ESTIMATED ESTIMATED
Secure access within access Secure Need: Investment new to Compliance Need: Investment Lack of monitoring Need: Investment Install new bre to Install to Need: new bre Investment Existing distance Existing distance Need: Investment Provide visibility on Provide Need: Investment Smart Need: provide meters Investment Opportunity Need: install to Investment Provide backup to Provide Need: Investment INVESTMENT NEED /OPTIONS NEED /OPTIONS INVESTMENT Install radio, remain on pilot wire remain Install radio, Install di erential protection on circuits, on circuits, protection Install di erential Install in the 33kV mesh. open points the opportunity information provide to tripping discrimination on some types regulatory requirement, do nothing regulatory requirement, road and footpath works and footpath road provide redundancy and replace existing redundancy and replace provide pilot wires protection does not provide proper proper does not provide protection ripple plant bre cable or duct when there is Council cable or duct is Council bre when there Process resource resource Process Options Considered: Comply with Comply Options Considered: Install Video IP Video Install Options Considered: Continue with Continue Options Considered: Options Considered: Install cable or bre Options Considered: Install new bre, Install new bre, Options Considered: Do nothing, Review Do nothing, Options Considered: Provide backup, backup, Provide Options Considered: development areas to support to areas future development Install video camera, standard Camera, devices. Old devices have faulted have Old devices devices. do nothing duct when there is Council or third party or third duct is Council when there do nothing supply options. on the network that can identify power power can identify on the network that quality issues. or third partyworks or third and footpath road of faults in a meshed network causing settings to reduce permissive over-reach, over-reach, permissive reduce settings to security issues of the a failure given control streetlighting Substation’s building and yard building and yard Substation’s Smart do nothing out, roll Box CONSIDERED consent, do nothing consent, AUFLS regime AUFLS
for projects for Mesh control of Mesh control Fibre Routes Fibre Installation of LV Installation of LV installations transformer demand transformer to di erential to monitoring device monitoring Upgrade distance distance Upgrade PROJECT / PROJECT PROGRAMME Consenting costs costs Consenting Opportunistic bre Video IP Camera Video 33kV Protection 33kV Protection Smart Boxes changes critical streetligthing critical streetligthing circuits AUFLS scheme AUFLS Access & Monitoring - Access Table 7.5.4.1 Urban other system xed assets projects for 2017 to 2026 for 2017 to assets projects xed system 7.5.4.1 Urban other Table
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2016 140 2016 | WEL ASSET MANAGEMENT PLAN 141
TIMING 2017 to 2026 2017 to 2017 to 2026 2017 to 2026 2017 to 9,010 5,000 88,941 ($000)
ORKS INVESTMENT NEED COST ESTIMATED 890 1,513 935 1,077 764 542 502 552 512 342 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Investment Need: Investment Network Need: Investment relocation of relocation Need: Investment with the additional demand undergrounding of overhead lines of overhead undergrounding assets to support assets to the expressway development existing capacity is compromised capacityexisting is compromised In some circumstances and upon request we convert overhead lines to to lines overhead convert we and upon request In some circumstances 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 12,942 12,159 10,394 9,757 9,616 9,616 9,616 9,616 9,616 9,616
These are predominantly relocations of our assets associated with the continuing with the continuing of our assets associated relocations predominantly are These
Investment required to connect new customers and upgrades for for connect and upgrades to new customers required Investment onnections and upgrades. Relocations. Relocations. New c Undergrounding. Undergrounding. made to account for these works. for account made to underground cables. We fund up to 50% of the total project cost, up to a total WEL contribution contribution WEL a total up to project cost, 50% of the total fund up to We cables. underground development of the Waikato expressway (Huntly and Hamilton sections. and Hamilton (Huntly expressway Waikato of the development of $500k. customers that have a step change in demand. A provision based on the historical levels has been levels based on the historical A provision change in demand. a step have that customers Relocations New Connections Fixed Assets Fixed FIXED ASSETS ($000) DRIVEN Undergrounding PROJECT / PROJECT PROGRAMME Works Customer Driven Driven Customer and upgrades Other system OTHER SYSTEM OTHER WORKS ($000) WORKS CUSTOMER CUSTOMER
CUSTOMER CUSTOMER W DRIVEN Table 7.5.4.2 summarises the expected other system xed asset investment required over the AMP period. the AMP over required asset investment xed 7.5.4.2 summarises the expected other system Table Table 7.5.5.2 summarises expected customer driven works investment over the AMP period. the AMP over investment works 7.5.5.2 summarises driven expected customer Table The following table summarises the projects, options considered, projected expenditure and timing. expenditure projected options considered, table summarisesthe projects, following The Three customer driven needs have been identi ed during the AMP period. These are: These during period. been identi ed the AMP needs have driven customer Three Table 7.5.5.2 Urban customer driven works forecast expenditure pro le expenditure forecast works driven 7.5.5.2 Urban customer Table Table 7.5.5.1 Urban customer driven works projects for 2017 to 2026 for 2017 to projects works driven 7.5.5.1 Urban customer Table Table 7.5.4.2 Urban other system xed assets projects forecast expenditure pro le expenditure forecast assets projects xed 7.5.4.2 Urban other system Table • • • 7.5.5 - -
2,000 1,853 1,200 2,947 - 200 200 ------60 - 537 601 466 890 1,513 935 1,077 764 542 502 552 512 342 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 12,942 12,159 10,394 9,757 9,616 9,616 9,616 9,616 9,616 9,616 14,523 14,484 12,345 11,384 11,951 13,430 13,216 14,033 14,978 11,508
These projects include upgrades of the Te Uku substation, Te of the projects include upgrades These security and reliability: network ved This programme is primarily concerned with the seismic strengthening of with the seismic strengthening is primarily concerned programme This y and security: Impro Distribution. requirements for Importance 4 (IL4) buildings. for Level requirements Safet Weavers protection and Gordonton Substation. and Gordonton protection Weavers Other. substations and switching stations. The aim of the project is to bring zone substations up to the up to substations bring aim of the project zone is to The stations. and switching substations Subtransmission Zone Substation. Zone Fixed assets Fixed Distribution 154 150 550 550 1,371 3,072 3,098 664 50 1,550 Driven Works Driven Urban Total Urban ($000) EXPENDITURE URBAN Other system Customer Customer Subtransmission Substation
programme, as discussed in Chapter 8. There are a number of projects planned to address rural address a number of projects planned to are There 8. as discussed in Chapter programme, network security which will also contribute to improved reliability performance. reliability improved network security to which will also contribute Our Rural Development Plan addresses the need to improve voltage performance voltage and security on improve the need to addresses Plan Development Our Rural our rural network. There are no growth related rural investments required within the AMP period. period. within the AMP required investments rural related no growth are There network.our rural ZONE SUBSTATIONS ZONE SUBSTATIONS The reliability performance of the rural network is predominantly addressed by our asset renewal renewal our asset by addressed performance reliability The network is predominantly of the rural sectionThis network level. is structured by are: These period. the AMP over substations zone rural for been identi ed have needs investment Three There is no investment planned for rural subtransmission over the AMP period. period. the AMP over subtransmission rural planned for is no investment There Table 7.5.6 summarises the expected urban area growth and security expenditure required over the over and security required expenditure summarises 7.5.6 growth the expected urban area Table AMP period. AMP Table 7.5.6 Urban development expenditure forecast expenditure pro le expenditure forecast expenditure 7.5.6 Urban development Table • • • • • • 7.6.2 7.6.1 SUBTRANSMISSION 7.5.6 YEAR EXPENDITURE PLAN OF 10 SUMMARY 7.6 RURAL DEVELOPMENT PLAN
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2016 142 2016 | WEL ASSET MANAGEMENT PLAN 143 1,695
2026 2018 TIMING 2017 to 2021 2017 to 2019 to 2021 2019 to 2020 to 2023 2020 to
- - 40 300 3,651 3,438 1,695 ESTIMATED ESTIMATED COST ($000) for future demands. future for Asset replacement and replacement Asset Need: Investment the aged Upgrade Need: Investment Increase capacity to cater Increase capacity Need: cater to Investment Safety and compliance Safety Need: Investment and replacement Asset Need: Investment breaker for two transformers two for breaker INVESTMENT NEED /OPTIONS INVESTMENT NEED to present standards, transfer demand, do demand, transfer standards, present to to cater for demands on the far south east, for cater to to comply to to present standards, transfer demand, do demand, transfer standards, present to protection relays protection nothing nothing Upgrade protection, Upgrade Options Considered: : Upgrade substation : Upgrade Options Considered New zone substation New zone Options Considered: Strengthen buildings Strengthen Options Considered: Upgrade substation Upgrade Options Considered: do nothing do nothing safety improvements safety existing con guration is only one circuit is only one circuit con guration existing CONSIDERED 50 140 700 2,890 1,598 2,000 51 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 k Automation. By automating selected devices signi cant improvements in fault restoration in fault restoration improvements selected signi cant By devices automating k Automation. ed in 2016. The second stage of the Hoeka Rd substation is scheduled for late in the stage of the Hoeka late second The Rd is scheduled for substation ed in 2016. Along with the asset renewals detailed in section security: 8, these project with the asset renewals have Along network ved Networ times can be achieved; and times can be achieved; - Impro been included to achieve the rural reliability improvements outlined in section 6.3.3. improvements reliability the rural achieve been included to This commenced in 2015 and is expected to be 2015 and is expected in to commenced This Substation: Hoeka of the Rd Zone Completion complet These projects include: These AMP period. AMP Hoeka Rd Zone ($000) upgrade Upgrade PROJECT / PROJECT PROGRAMME Weavers Protection Protection Weavers Gordonton Gordonton Substation strengthening of strengthening andsubstations stations switching Substation Seismic upgrade Substation SUBSTATION SUBSTATION ZONE Zone Zone Te Uku substation Te
Four distribution investment needs have been identi ed during the AMP period. These are: These during period. been identi ed the AMP needs have distribution investment Four Table 7.6.2.2 summarises the rural zone substation investment required over the AMP period. the AMP over required investment substation zone 7.6.2.2 summarises the rural Table The following table summarises the projects, options considered, projected expenditure and timing. expenditure projected options considered, table summarises the projects, following The Table 7.6.2.2 Rural Zone substation projects forecast expenditure pro le expenditure forecast substation projects Zone 7.6.2.2 Rural Table Table 7.6.2.1 Rural Zone substation growth and security 2025 2016 to projects substation growth Zone 7.6.2.1 Rural Table • • 7.6.3 DISTRIBUTION 2017 TIMING 2018 to 2026 2018 to 2026 2017 to 2026 2017 to 50 950 9,000 14,328 ESTIMATED ESTIMATED COST ($000)
Do nothing ork investigations will continue to identify opportunities to improve opportunities identify to improve continue will to ork investigations Minimise Need: SAIDI impact Investment smart by identi ed ICPs Need: Investment quality issues Power Need: Investment of supply during Loss Need: Investment boxes with power quality issues with power boxes INVESTMENT NEED /OPTIONS identi ed within the network through within the network through identi ed transformer and/or LV circuits, upgrade upgrade circuits, and/or LV transformer existing upgrade customers, transfer to GFN, Weaver’s : Commission the : Commission Options Considered Addition of new Addition Options Considered: Install new Options Considered: Install new Options Considered: do nothing distribution transformer and/or LV circuits circuits and/or LV distribution transformer circuits and/or LV distribution transformer equipment, line recon guration, automation, automation, line recon guration, equipment, circuits and/or LV transformer existing earthsingle phase to faults CONSIDERED customer complaints customer Netw 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,250 2,682 2,534 2,598 2,568 2,490 2,532 2,562 2,580 2,532 There are a number of areas within the rural network that experience low voltages voltages low experience network that within the rural of areas a number are There vels: reliability by adding additional feeders and feeder interconnections to the network. to interconnections and feeder feeders adding additional by reliability Security projects. - interruptions to customers in the area due to earth due to or other such area in the contact with trees customers faults caused by to interruptions modelling has indicated an issue with voltage this is investigated and solutions determined and where and where solutions determined and this is investigated issue with voltage an modelling has indicated voltage within the rural network. or network Smart within the rural of these projects include where voltage Identi cation Boxes a customer complaint is related to power quality issues network investment is often required. quality issues network investment power to is related complaint a customer during peak demand times. A number of projects are planned to rectify these issues and improve the rectify these issues and improve planned to A number of projects are during times. peak demand events. Voltage Le Voltage Commissioning of the Weavers GFN, to reduce reduce GFN, to Weavers of the Commissioning or line renewal: Neutralisers Fault Ground DISTRIBUTION DISTRIBUTION ($000) EXPENDITURE Distribution Reliability projects Power Quality - Works Works Quality - Power projects to due monitoring required to correct to required PROJECT / PROJECT PROGRAMME GFN Voltage upgrade upgrade Voltage customer complaints customer
improve our radio network. our radio improve One investment need has been identi ed for other system xed assets during the AMP period. This is to is to This assets during period. the AMP xed other system for need has been identi ed One investment OTHER SYSTEM FIXED ASSETS SYSTEM FIXED OTHER Table 7.6.3.2 summarises the rural distribution investment required over the AMP period. the AMP over required distribution 7.6.3.2 summarises investment the rural Table The following table summarises the rural distribution projects, projected investment and timing. investment projected distribution table summarisesprojects, the rural following The Table 7.6.3.2 Rural distribution projects forecast expenditure pro le expenditure forecast distribution projects 7.6.3.2 Rural Table Table 7.6.3.1 Rural distribution projects for 2017 to 2026 for 2017 to distribution projects 7.6.3.1 Rural Table • • 7.6.4
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2016 144 2016 | WEL ASSET MANAGEMENT PLAN 145 1,695 - -
RURAL
2026
2025
URBAN 2024
GXP
2023
2022 2021
------2020 ------
500
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2019 ------2018
500
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,800 2,822 3,234 5,488 4,166 4,490 2,583 2,562 2,580 4,227 2017 -
8,000 6,000 4,000 2,000
ENERGY DELIVERED AND PEAK DEMAND ENERGY DELIVERED AND PEAK 20,000 18,000 16,000 14,000 12,000 10,000 $000 10 YEAR NETWORK DEVELOPMENT EXPENDITURE Rural Total Total Rural FIXED ASSETS ($000) Distribution 1,250 2,5982,534 2,568 2,682 2,490 2,580 2,532 2,562 2,532 Fixed assets Fixed ($000) RURAL EXPENDITURE Other system Fixed Assets Other Fixed system Subtransmission Other system Substation 50 140 700 2,890 1,598 2,000 51 OTHER SYSTEM OTHER Figure 7.7 Network development forecast pro le pro le forecast 7.7 Network development Figure spread the required capital over the AMP period. the AMP capital over the required spread SUMMARY EXPENDITURE SUMMARY NETWORK CAPITAL INVESTMENT CAPITAL NETWORK SUMMARY Table 7.6.4 summarises the expected other system xed asset investment required over the AMP period. the AMP over required asset investment xed 7.6.4 summarises the expected system other Table The 10 year Network Capital Investment forecast is shown in table 7.7. Work has been undertaken to Work in table 7.7. is shown forecast Investment Network Capital 10 year The Table 7.6.5 summarises the rural area growth and security expenditure required over the AMP period. the AMP over required and security expenditure growth area summarises 7.6.5 the rural Table Table 7.6.4 Urban other system xed assets projects forecast expenditure pro le expenditure forecast assets projects xed 7.6.4 Urban other system Table Table 7.6.5 Rural development forecast pro le pro le forecast development 7.6.5 Rural Table 7.6.5 7.7
. A replacement of existing testing equipment is forecast for 2016 to facilitate facilitate 2016 to for is forecast equipment testing of existing . A replacement t tion of the mobility project, which provides direct in- eld to SAP connectivity, resulting resulting SAP connectivity, direct in- eld to tion of the mobility project, which provides The forecast re ects the programme to replace leased vehicles with owned. with owned. leased vehicles replace to re ects the programme forecast The ehicles. This covers areas of the business functions areas including: support. covers and network This ems operations in signi cant productivityin signi cant gains; Implementa Mobile GeoIS platform which will provide a range of services to our sta , partners by of services and customers, a range our sta , to which will provide Mobile GeoIS platform Major version upgrades for our industry standard software applications including SAP, Intergraph Intergraph our industry for software including SAP, applications upgrades standard Major version Manager) and the NMS; WEL Services which includes, Field Services, Distribution Design, Capital Projects. Services, Projects. WEL Services Distribution Capital Design, Field which includes, anomalies between retail and wholesale billing; and and retail anomalies between time. such as service fault details and outages in real key asset information to plans, access allowing and Engineering. GeoIS, Microsoft O ce, desktop and server platforms, our document management system (Content (Content system management GeoIS, our document Microsoft and server desktop O ce, platforms, Customer SupportCustomer and Procurement Strategy, Network Design, Customer Projects, Development and Automation, System Control Control System and Automation, Development Projects, Network Customer Design, Strategy, Asset Management which includes Asset Information and Strategy, Network Planning, Maintenance Maintenance Network Planning, and Strategy, Information Management which includes Asset Asset A revenue billing project will provide increased revenue assurance, by identifying exceptions and exceptions identifying by assurance, revenue increased billing project will provide A revenue ------lower forecast for 2019 to 2025. 2019 to for forecast lower lifespan of 3-4 years and will need to be updated in 2018. Desktop, laptop, and tablet computing and tablet computing laptop, in 2018. Desktop, be updated to and will need of 3-4 years lifespan Plant and Equipmen Plant including servers, storage, switches, rewalls and desktops. Our server systems have an expected Our server have and desktops. systems rewalls switches, including servers, storage, trucks are due to be completed in 2018. A high number of owned vehicles will be replaced due to age due to will be replaced vehicles in 2018. A high number of owned be completed due to trucks are timeframe of this plan, with transfer of costs into operating expenditure. operating into of costs transfer of this plan, with timeframe Motor V Motor putting in place a new testing regime by the Asset Management team. the Asset by regime a new testing putting in place non-critical systems (e.g. O ce, PABX, Exchange, and even SAP) could migrate into the cloud over the the cloud over into migrate SAP) could and even Exchange, PABX, O ce, non-critical (e.g. systems Syst and anticipated kilometres in 2020. The forecast re ects the advantage of owning our vehicles as the our vehicles of owning re ects the advantage forecast The kilometres in 2020. and anticipated in the is demonstrated and that allows longer periods than leasing legislation for asset can be retained . This covers the physical computing infrastructure computing the physical covers This . Expenditure Capital Hardware Computer This covers the periodic upgrades of existing software of existing the periodic upgrades covers This Software Expenditure. Capital Computer Examples include: of new business tools. and the development applications devices are also on a three year replacement cycle. We will also continue to monitor and review the use and review monitor to will also continue We cycle. replacement year also on a three are devices of “on-premises” infrastructure, versus moving hosting into the ‘cloud’. It is highly likely that relatively It relatively is highly likely that ‘cloud’. the hosting into moving versus infrastructure, “on-premises” of The replacement schedule of leased vehicles will conclude in 2018. In addition, several rebuilds of rebuilds in 2018. In will conclude addition, several schedule of leased vehicles replacement The
for purpose at the lowest overall lifecycle cost. The non-network expenditure falls into two categories: two falls into non-network expenditure The cost. lifecycle overall the lowest purpose at for Non-network capital expenditure and Non-network operational expenditure. and Non-network operational Non-network capital expenditure page. following in the addressed Each of these are the development, renewal and maintenance of our non-network assets is to ensure that they remain t remain they that ensure of our non-network assets is to and maintenance renewal the development, of e ciency across the company and enabling the delivery and enabling the of e ciency Our policy services of the company customers. our across for to NON-NETWORK OPERATIONAL EXPENDITURE OPERATIONAL NON-NETWORK NON-NETWORK INVESTMENTS NON-NETWORK The non-network operational expenditure addressed in this section addressed covers: expenditure non-network operational The The non-network capital expenditure addressed in this section addressed covers: non-network capital expenditure The This section describes our non-network related projects. These projects focus on enabling a higher level on enabling a higher level projects focus These section projects. This describes our non-network related • • • • • 7.8.2 7.8.1 EXPENDITURE CAPITAL NON-NETWORK 7.8
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2016 146 2016 | WEL ASSET MANAGEMENT PLAN 147 650 1,123 189 738 528 258 449 170 37 170 738 528 258 449 189 1,123 37 650 390 703 402 402 402 402 301 703 301 703 670 230 230 230 230 268 268 268 268 268 268 230 268 268 268 670 230 230230 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2,094 1,958 1,085 1,516 894 974 2,109 1,536 914 914 2,109 974 1,516 894 1,085 1,958 2,094 3,804 4,014 1,905 2,786 2,355 1,902 3,127 2,677 1,621 1,621 1,621 3,804 4,014 2,7861,905 2,3551,902 3,127 2,677 This covers areas of the business functions of the business areas including: covers This 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 . 3,400 3,449 3,498 3,400 3,547 3,597 3,648 3,699 3,751 3,804 3,857 16,622 16,817 17,012 16,622 17,211 17,411 17,613 17,818 18,026 18,235 18,447 13,222 13,367 13,514 13,222 13,663 13,813 13,965 14,119 14,274 14,431 14,590 , Commercial and Technology which includes, Information Services, GIS, Procurement, Services, Information GIS, Procurement, which includes, Technology and , Commercial Finance Regulatory and Metering Services.Business Assurance, and Development Organisational which includes Health and Safety, and Performance People Human Resources. - - Business support Motor Vehicles Plant and Equipment Plant ($000) EXPENDITURE NON-NETWORK NON-NETWORK Computer Software Computer Computer Hardware Computer Total Total CAPITAL CAPITAL Business support ($000) EXPENDITURE NON-NETWORK NON-NETWORK and network support System operations operations System OPERATIONAL OPERATIONAL Total Total
The table below summarises the expected non-network expenditure required over the AMP period. the AMP over required summarises the expected table below non-network expenditure The The spend pro le over the AMP period remains at due to a stable level of activities. a stable level due to at period remains the AMP over spend pro le The Table 7.8.3.1 Non-Network Capital Expenditure 7.8.3.1 Non-Network Capital Table Table 7.8.3.2 Non-Network Operational Expenditure 7.8.3.2 Non-Network Operational Table • 7.8.3 EXPENDITURE OF NON-NETWORK SUMMARY 8. RENEWALS AND MAINTENANCE 2016 | WEL ASSET MANAGEMENT PLAN 149
conductor. This has driven us to increase our renewal our renewal increase us to has driven This conductor. 2
describes how we ensure that we undertake an appropriate level of maintenance of maintenance undertake level we that appropriate ensure an we (8.2) describes how enance provides an overview of our approach to renewals and renewals to an overview of our approach provides (8.1) and Renewals of Maintenance view Ensure safety risks are identi ed and mitigated; identi ed risks safety are Ensure expenditure; with renewal together of maintenance Optimise the costs and regulatory requirements; Meet any network availability. possible improve Where Over framework. it ts within our asset management and how maintenance Maint on our assets. on expenditure of renewal level an appropriate determining to (8.3) describes our approach Renewals our assets. and face challenges we and renewal (8.4) describes Management the maintenance Cycle Life Asset these during period. the AMP will address we how during the expenditure SummaryExpenditure and maintenance (8.5) summarises our renewal period. AMP
RENEWALS AND MAINTENANCE RENEWALS Our maintenance activity is rst and foremost safety focused. After which, it is structured to minimise the which, it is structured After to focused. safety activityOur maintenance is rst and foremost selecting by is achieved This time. their performance of our assets while managing costs over whole of life that: and processes techniques maintenance • • • • each asset category described for in Section are techniques These 8.4. Delivering our performance objectives, as described in Chapter 6, requires the right balance between the right balance our performanceDelivering 6, requires as described in Chapter objectives, the considered In have striking we in renewals. this balance, and investment on maintenance expenditure interventions during their lifecycle. and required of our assets, cost whole of life taken a risk based have framework, 4, we described our asset management in Chapter by established As within contained now are groups asset major All of CBRM. implementation the with renewals to approach the of the CBRM model was in the implementation resulted that change largest The the CBRM model. with the 16mm of the risk associated quanti cation This chapter describes our renewal and maintenance approach for the AMP period. It period. the AMP our planned details for approach and maintenance describes our renewal chapter This expenditure. the associated forecast have we and how work and maintenance renewals is structured follows. as chapter The • • • • • program for the conductor replacement to mitigate this risk. This has signi cantly reduced the number of reduced signi cantly has This this risk. mitigate to the conductor replacement for program due however program, of the renewal the implementation conductors since broken from faults resulting of the improvements. the extent fully quantify early to of conductor faults it is too the variable nature to our and improve the risk of other asset groups quantify better us to use of CBRM has also allowed The as detailed in section 7.1.5. programs capital replacement described below. are plans and renewal works maintenance resulting The
8.2 MAINTENANCE 8.1 AND RENEWALS OF MAINTENANCE OVERVIEW 8.
DEFINITION safe’ ‘make to be required may repairs of customers. Plant Maintenance will be priority Maintenance 3. Plant undertaken as part of capital projects. DEFINITION newly installed or equivalent As Normal ageing and use within 18 replacement criteria. Schedule for Meets replacement months within 14 days Replace Unserviceable but not hazardous. hazard eliminate to Immediate action is required 2 days temporary immediate required– work / Urgent Faults 2 weeks volume outages or door knock low No customer for 4 weeks typically if outage required, Major consulted customer PERIOD 12 weeks consideration lead material Long 12 months be or jobs which could works asset replacement Typically DELIVERY DELIVERY Red Green Amber DEFECT REMAINING LIFE DESCRIPTION Early Life Mid Life Near End of LifeEnd of Life the next criteria at inspectionmeet replacement Likely to Unserviceable Hazard CLASSIFICATION 5 4 3 2 1 0 1 2 3 4 5 RATING DEFECT CONDITION SCORE Defects are identi ed during inspections. identi ed IfDefects the asset inspector are an asset has a defect, will assess the 8.2.1.2 below. Table as speci ed in a defect rating severity and assign of the defect DEFECT NOTIFICATIONS CONDITION ASSESSMENT and provides the necessary the extent of servicing required in uences condition repairs Asset required, 5 rating is based on a 0 to assessment Our condition decisions. our asset renewal inform to vital data 8.2.1.1 below. Table as set out in system, The key assumptions and inputs are described below. key assumptions and inputs are The support the use of industry by standards, determined tools tasks are maintenance Maintenance and analysis. ASSET INSPECTIONS frequency which an asset isThe at inspect regularly vegetation. the surrounding our assets and We and legislative recommendations risk, potential by manufacturer’s is determined inspected or monitored defects along with any During an asset inspection, recorded is assessed and the condition requirements. (CMMS). Management System Maintenance in the Computerised found A number of assumptions and inputs inform the level of maintenance undertakenof maintenance on our assets. level the and inputs inform A number of assumptions TOOLS AND ANALYSIS INDUSTRY STANDARDS Table 8.2.1.1 Asset Condition Assessment 8.2.1.1 Asset Ratings Condition Table ASSUMPTIONS AND ASSUMPTIONS INPUTS Table 8.2.1.2 Defect Classi cations Table 8.2.1
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- lled switchgear. In we the meantime - lled switchgear. 6
6 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2,500 2,500 2,450 2,450 2,331 2,240 2,149 2,058 1,967 1,967 2,500 2,500 2,450 2,450 2,331 2,240 2,149 2,058 1,967 1,967 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,316 1,316 1,316 1,316 1,021 1,021 714 714 714 714 1,316 1,316 1,316 1,316 1,021 1,021 714 714 714 714 gas installed, disposed and emitted into the environment. As at November 2015 November at As the environment. into emitted disposed and gas installed, 6 utilised by our switchgear was 1.26 tonnes. was our switchgear utilised by 6 is a gas used in modern switchgear as an insulating and arc quenching material. We have initiated a initiated have We quenching material. and arc as an insulating is a gas used in modern switchgear 6 Total Total Operational Operational Expenditure Service Interruption and Emergency Management Operational Operational Expenditure Vegetation Management SERVICE INTERRUPTION AND EMERGENCY MANAGEMENT ($000) VEGETATION VEGETATION MANAGEMENT ($000) Table 8.2.4 Service Emergency and Interruption Expenditure Table Table 8.2.3.1 Vegetation Management Expenditure 8.2.3.1 Vegetation Table are required by law to disclose the quantity we have installed in our network. We record and monitor and monitor record We our network. installed in have the quantity disclose we to law by required are of SF the volumes review of equipment that could be used as an alternative to SF to be used as an alternative could that of equipment review Service interruption and emergency management relates to required faults work. required Service to and emergency relates interruption management e ciency 8.2.4 is mainly due to the gains with Table in as shown faults costs in the projected decrease The testing diagnostic the enhanced due to on defects repairs proactive team, of the new Faults introduction programme. the conductor renewal due to and reduction in line breaks introduced have we Vegetation management is the process of managing vegetation in and around our assets that have the have that our assets in and around vegetation of managing is the process management Vegetation increased have We supply of electricity and reliable our customers. with the safe to interfere to potential will be work predict when future model to growth a vegetation and maintain our inspection rates types. vegetation di erent for required our cutting rates Based on current model. growth based on our vegetation is expenditure Vegetation 8.2.3.1. Table in period the end of the AMP as shown towards will reduce model predicts expenditure SF SERVICE INTERRUPTION AND EMERGENCY MANAGEMENT AND SERVICE INTERRUPTION VEGETATION MANAGEMENT VEGETATION the volume of SF the volume 8.2.2 OF SF MANAGEMENT 8.2.4 8.2.3
The review provided assurance that our proposed expenditure (developed using (developed expenditure our proposed that assurance provided review The 10 t of a modular substation used for equipment testing, spares and training of technical sta . of technical and training spares testing, equipment used for t of a modular substation t of mobility solutions to record asset information in the eld and transfer it directly into it directly into and transfer in the eld asset information t of mobility record to solutions tion of ‘accelerated’ inspection programmes for overhead line assets and LV pillars; and LV line assets overhead for inspection programmes ‘accelerated’ tion of vement of asset data quality and accuracy through the eld veri cation programme; quality of asset data the eld veri cation and accuracy through vement ved inspection strategies that enhance risk identi cation, asset condition and population data; data; and population asset condition risk identi cation, enhance that inspectionved strategies oduction on primary testing of diagnostic assets; – Do nothing models a hypothetical base case to understand the e ects of not undertaking understand the e ects base case to 1 – Do nothing models a hypothetical Scenario rapidly; the risk increase is expected ten to By year renewals. planned in our 2015 AMP; previously 2 – ModelScenario of expenditure Intr and emergency preparedness; for requirements spare of strategic Speci cation Developmen Impro Implementa our o ce systems; our o ce Impro Developmen The Repex model benchmarks expenditure forecasts against other Electricity Repex DistributionThe model benchmarks forecasts Businesses. expenditure
10 To determine the optimal level of renewal expenditure across our key asset categories we considered considered we our key asset categories across expenditure of renewal the optimal level determine To each for risk pro les 10-year indicative shows 8.3.1 below Figure scenarios. investment alternative four are: scenarios The scenario. • • The application of these innovations and improvements is discussed in Section 8.4 below. and improvements of these innovations application The EXPENDITURE (REPEX) REVIEW REPLACEMENT CAPITAL undertaken has been expenditure using a Repex renewal of our proposed review independent An modelling approach. • • • • approach This our asset renewals. planning to a risk based approach develop used CBRM to have We network performance, safety, risk the highest to present of assets that prioritises the renewal electricity numerous is used by methodology The distribution companies and nancial loss. environment asset management. risk related e ective deliver to internationally knowledge engineering practical and to asset information, experience combines that CBRM is a process each asset category and performance condition Speci c risks for are of network future assets. estimate all of our key assets. CBRM models for developed have We and quanti ed. identi ed is described B. in Appendix detail on the CBRM process Further • • Innovation and continuous improvements are necessary e ciency are our cost meet to objectives. improvements and continuous Innovation include: implemented recently have we and innovations improvements related maintenance The • Our maintenance activities and associated expenditure have been forecast by asset category. The basis of The asset category. by been forecast have activities expenditure Our and associated maintenance and corrective) predictive type (preventive, maintenance of asset quantity, includes estimates the forecast known for adjusted costs task maintenance based on historical are Unit costs unit costs. and relevant in labour costs. increases changes e.g. each asset category of each section the end at for is shown below. forecast maintenance The CBRM) is appropriate. CBRM) is appropriate. INVESTMENT SCENARIOS INNOVATIONS AND IMPROVEMENTS IN MAINTENANCE PRACTICES IN MAINTENANCE AND IMPROVEMENTS INNOVATIONS MAINTENANCE FORECASTING MAINTENANCE 8.3.1 8.3 RENEWALS 8.2.6 8.2.5
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in Risks -M 015 AMP Max Investment -2 SCENARIO 2 SCENARIO 4 - Do Nothing Proposed Strategy - - SCENARIO 1 SCENARIO 3 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
ASSET RENEWAL SCENARIOS ASSET RENEWAL S K S I R – Is a slight risk reduction over our 2015 plan. However this outcome can be achieved with achieved can be this outcome plan. However our 2015 risk reduction 3 – Is a slight over Scenario the further through and prioritisation expenditure of critical optimisation and assets; less renewal maximum of the hypothetical risk pro le and the relative completeness 4 – is included for Scenario not all risks can with maximum expenditure even that It illustrate seeks to expenditure. renewal be eliminated.
Diagnostic measurement techniques such as ultrasonic surveys on overhead lines, PD acoustic surveys PD acoustic on lines, surveys such as ultrasonic on overhead techniques measurement Diagnostic than simple visual information asset condition better provide transformers and SFRA on zone switchgear, early intervention programmes through proactively failures help eliminate techniques These inspections. asset renewal. premature defer and can be used to DESIGN LIFE ASSUMPTIONS practical and our own guidance based on manufacturers’ of assets are lives expected design The the assets. managing experience There are a range of assumptions and inputs necessary for establishing our renewal plan and CBRM of assumptions and inputs necessary a range establishing our renewal are for There described below. are These models. AND CONDITION INFORMATION ASSET HEALTH renewal. when an asset is due for determining accuracy is critical to The of asset age and condition and the mobility veri cation eld data assessment, condition for speci cations improved this reason For in our inspection accuracy data has been implemented programs. improve solution to ASSET MONITORING Figure 8.3.1 Asset Renewal – Scenario Risk Pro les 8.3.1 Asset Renewal Figure period AMP the as of risk over a stable level 3 as it maintains is based on scenario programme Our renewal prioritising by will be optimised highest risk assets. expenditure our renewal • • ASSUMPTIONS AND INPUTS 8.3.2 . feeders. Other diagnostic measurement techniques such as Corona such as Corona techniques Other measurement diagnostic feeders. or failures or tree debris blown onto the lines during high wind or storm events; the lines during events; high wind or storm onto debris blown or tree or failures or type issues on our urban meshed network. nal in uences such as possums or birds causing ashovers; and causing ashovers; such as possums or birds nal in uences Cars colliding with poles can result in outages and public safety risk from falling poles or uncontrolled poles or uncontrolled falling risk in outages and public safety from with poles can result colliding Cars conductors; live Insulat Detailed inspections not meshed with other lines; critical every feeders for six months all other lines; and Detailed inspections for every years ve inspections on an annual basis Visual Exter Insulat Identi ed the routine and corrective maintenance tasks; maintenance and corrective the routine Identi ed Described the inspection employed; policy and programme these problems; addressing to and described our approach problems systemic any Identi ed and drivers; programme the replacement Identi ed and asset replacements; defer made to have we Described the innovations the projects underwayListed or planned. 8.4.4) Lines (8.4.1 to Subtransmission 8.4.8) (8.4.5 to Substations Zone 8.4.12) Lines (8.4.9 to Distribution and LV 8.4.15) to (8.4.13 Cables Distribution and LV 8.4.17) (8.4.16 to Transformers Distribution and Substations 8.4.19) (8.4.18 to Distribution Switchgear 8.4.25) (8.4.20 to Assets Fixed Other System
ASSET RENEWAL PROGRAMME ASSET RENEWAL expectancy within their life well period of these assets is planned during the AMP as they are No renewal based on their condition. risk pro le, an acceptable and have • • MAINTENANCE UNDERTAKEN Inspections lines include: on subtransmission • • • RISKS AND ISSUES lines are: with subtransmission principal risksThe issues associated and • • During detailed inspections, tests are carriedDuring out on all earth are surveys detailed inspections, ultrasonic tests using Recently banks. carried surveys out are graphic Thermo also been undertaken.a multi-functional have PD instrument on selected critical subtransmission being evaluated. currently surveys are undertaken defects identi ed. tasks are correct any Maintenance to • • • • • • with details of included assets asset categories of this section following the remainder is structured by The summaries. and expenditure • • • • • • • This section describes how we manage our assets over their full lifecycle. For each asset category we have: each asset category have: we For their full lifecycle. sectionassets over manage our This we describes how SUBTRANSMISSION LINES 8.4.1 8.4 MANAGEMENT LIFE CYCLE ASSET
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es. There have been no signi cant issues identi ed with our subtransmission CBs. CBs. with our subtransmission issues identi ed been no signi cant have There Mechanical damage due to third party excavations or directional partydrilling; andMechanical third due to damage excavations failur joint Cable selected and critical circuits; for Annually identi ed. are of discharges critical levels where frequently More
MAINTENANCE UNDERTAKEN undertaken such and dynamic tests include PD tests Tests every inspected years. and tested CBs are three analyser. using a CB pro le test ‘ rst-trip’ as the Major servicing occurred. is also undertaken of servicing trips multiple have level where The is increased turbulator Servicing for every testing six years. oil in oil lled CBs, the insulating includes changing alarm and SCADA checks, integrity close circuit checks, integrity trip-timing trip circuit erosion, tests, of all functional and testing checks partscontrol (both electrical they meet the ensure and mechanical) to industry criteria. and recommended acceptance minimum minimum requirements manufacturer’s PROGRAMME ASSET RENEWAL (2017), St Alexandra include those at; the age and condition due to renewal CBs scheduled for Uku(2024). Te (2023) and (2019), Massey (2021), Gordonton St Claudelands (2018), Ngaruawahia possible where Therefore and outages on the network. resource considerable Renewing CBs involves battery includes protection, This and co-ordinated same time. the at are asset renewals other co-located ASSET RENEWAL PROGRAM ASSET RENEWAL cables is planned during period. the AMP of subtransmission No renewal RISKS AND ISSUES • RISKS AND ISSUES cables arise from: with subtransmission principal risksThe and issues associated • • MAINTENANCE UNDERTAKEN partial from as visual inspections testing is based on results discharge cable maintenance Subtransmission is carried out: Testing assets. underground not possible for are • • similar failure has been undertakenAnalysis have suspected determine which may cable joints to on-line partial been prioritised and further for testing have discharge monitoring. feeders These modes. replaced. are testing following as defective identi ed Joints systems. SCADA level the required prioritisation and forecasting assist in renewal to A CBRM model has been implemented CBs. subtransmission for of investment SUBTRANSMISSION CIRCUIT BREAKERS (CBS) SUBTRANSMISSION CIRCUIT SUBTRANSMISSION CABLES CABLES SUBTRANSMISSION 8.4.3 8.4.2 WER TRANSFORMERS ------69 62 62 62 62 62 62 62 62 62 36 32 32 32 33 33 32 32 32 32 93 89 85 88 89 88 88 89 89 89 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 198 183 179 182 183 183 182 183 183 183 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 summarises the Subtransmission expenditure for the AMP period. the AMP for expenditure summarises the Subtransmission tion from external factors such as trains. Vibration can cause mal-operation of the mercuryVibration external factorstion from such as trains. switches within the Buchholz relays causing tripping of the incomer CBs. The mercury The are switches CBs. causing tripping of the incomer within the Buchholz relays switches reed. with magnetic replaced being progressively Debris on external or exposed bushings increase ashover risk.Debris ashover on external bushings increase or exposed of the transformer. failure in operational of the paper windings resulting or degradation insulation Poor expectancy the life of the transformer. the HI and accordingly drives of the insulation condition The or other soil contamination oil spills and therefore in uncontained result may Unbunded transformers bunding has been included in this AMP. of transformer upgrading Systematic damage. environmental Vibra
Operational Operational Total Expenditure 33kV Subtransmission cable 33 kV Overhead Lines Operational Operational Expenditure Breaker 33kV Circuit Capital Expenditure Expenditure Capital Total 33kV Subtransmission cable 33 kV Overhead Lines Capital Expenditure Capital Breaker 33kV Circuit SUBTRANSMISSION SUBTRANSMISSION EXPENDITURE ($000) Table 8.4.4 Subtransmission Expenditure 8.4.4 Subtransmission Table • • • • RISKS AND ISSUES are: transformers with power principal risksThe and issues associated Capital renewal expenditure for subtransmission cables in the above table is a provision for cable for table is a provision cables in the above subtransmission for expenditure renewal Capital as part expenditure issues identi ed activities. Operational other maintenance following of replacement work unplanned corrective for of the budget allocation a review mainly due to has increased in this area for of the partial and the implementation program testing area the subtransmission in discharge required equipment. of pole top testing 33kV cables and ultrasonic Table 8.4.4 Table ZONE SUBSTATION PO ZONE SUBSTATION SUMMARY OF SUBTRANSMISSION RENEWAL RENEWAL OF SUBTRANSMISSION SUMMARY 8.4.5 8.4.4 MAINTENANCE EXPENDITURE AND
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X X X X X VACUUM-OLTC 11 X X X X X OIL-OLTC Servicing 12 Inspection DGA Annual Minor Transformer Major Transformer OLTC tible designs on newer switchboards. Although similar types of switchboards are used, legacy used, are similar types Although of switchboards switchboards. on newer tible designs On-Load Tap Changer Tap On-Load Fault ashover causing injury damage; ashover sta and equipment to Fault compartmentsSurface bottles on older AIS and vacuum transformer on voltage discharges be high humidity during to within the substations winter. cause is believed The switchboards. install suitable air-conditioning has been included during to units in substations the Expenditure period; AMP parts of movable Mechanical on AIS switchboards; misalignment interlocks and damaged of a replacement the acquisition required failure parts recent A A lack of spare older equipment. for overseas; from (CB) Breaker Circuit Incompa been has subsequently Design spares. causing a lack of compatible CB units can be incompatible and standardised; Annual dissolved gas analysis and oil tests, these occur more frequently if evidence suggests there may may suggests there if evidence frequently more these occur and oil tests, gas analysis dissolved Annual regularly; more monitored be needs to be an issue that and visual inspection oil checks is carried cleaning, out every years; three e.g. Minor maintenance partial acoustic including factor is undertaken and dissipation Major analysis maintenance discharge servicing and intervals;with minor maintenance six yearly at and is undertaken maintenance changer every years. three Tap
6 Yearly FREQUENCY MAINTENANCE 2 Months Yearly 3 Yearly 6 Yearly 3 Yearly 11-12 ASSET RENEWAL PROGRAMME ASSET RENEWAL CBRM models Transformer period. within the AMP their nominal lives will exceed transformers No zone further during 2016 and will be used to requirements. developed the risks and asset renewal analyse were on our network. AIS and GIS switchboards have We RISKS AND ISSUES are: switchboards substation zone principal risksThe and issues for • • • • • MAINTENANCE UNDERTAKEN MAINTENANCE the subcomponent is speci c to and maintenance Testing Inspections undertaken are every months. two includes: This transformer. of the power • • • • (de-tanking) removing the involves work This refurbishment. mid-life also undergo transformers Zone thisat is assessed life remaining The inspection, an internal dry as required. and repairs core, testing out, exceeding a life will have refurbishment mid-life with transformers expect maintained time and we well 60 years. frequencies. plans and their corresponding maintenance summarises transformer 8.4.5 below Table Table 8.4.5 Summary of Power Transformer Maintenance Transformer 8.4.5 Summary of Power Table ZONE SUBSTATION SWITCHBOARDS ZONE SUBSTATION 8.4.6 gas in GIS switchboards. Sta have been trained and testing and testing been trained have Sta switchboards. gas in GIS 6 a ti; t resistance tests on the main busbar; tests and t resistance ds of earth and earthing lacking results test are and it is design on some of our older sites er causing damage to control cables at our older sites. Our newer sites are installed with sump installed are sites Our newer our older sites. cables at control er causing damage to sical and environmental risks such as res and oil spills. Substations with outdoor switchyards have have switchyards with outdoor Substations and oil spills. risks such as res sical and environmental Phy rooms; risk than indoor switch and environmental higher physical and gr Vandalism and and basements; in trenches accumulated water pumps which remove Recor assess to A programme of the earthing the integrity con rm di cult to on those sites. system therefore has been implemented. these sites Theft of copper earth wire is a signi cant safety and cost issue; earth and cost Theft safety of copper is a signi cant wire and switchboards; electronic devices causing damage to Humidity and high temperatures Wat Operational handling and testing of SF and testing handling Operational CT/VT chambers; in the switchgear; terminations Cable and and cable sealing ends; end boxes Cable busbars. insulators, connections e.g. switchyard Outdoor cleaning; general AIS e.g. for Bus maintenance VTs; connected on the main busbar and tests Insulation resistance Contac Gas pressure checks and HV withstand tests on GIS. checks and HV withstand tests Gas pressure equipment purchased to reduce our reliance on external service providers for this critical on external task. service for our reliance providers reduce to purchased equipment
MAINTENANCE UNDERTAKEN buildings is conducted monthly. of substation cleaning and general pest control cutting, Grass include inspection surrounding of soil erosion Tasks inspected every buildings are Substation months. two speci c safety Site bunding. paintwork, and transformer building condition visual cracks, the building, systems. and defect noti cation identi cation in the hazard recorded risks and defects are RISKS AND ISSUES buildings include: substation with zone principal risksThe and issues associated • • • The zone substation buildings category also includes subtransmission switching stations, indoor and buildings category stations, substation switching zone also includes subtransmission The and earthing bays systems. transformer outdoor • • • ASSET RENEWAL PROGRAMME ASSET RENEWAL undertaken is generally Renewal of indoor switchboards in conjunction with CB replacements. the required prioritisation and forecasting replacement assist in to A CBRM model has been implemented in switchboards. of investment level • • • • • and every is carried on GIS every out on AIS equipment Major 12 years maintenance nine years, Main tasks include: equipment. • • • MAINTENANCE UNDERTAKEN undertaken are inspections every on switchboards Visual months. two are items following The partialAnnual conducted on indoor switchboards. and surveys discharge are checked as part of the survey: • ZONE SUBSTATION BUILDINGS ZONE SUBSTATION 8.4.7
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2016 158 2016 | WEL ASSET MANAGEMENT PLAN 159 ------549 461 459 458 459 459 459 459 459 459 216 186 186 185 186 186 186 186 186 186 333 275 273 273 273 273 273 273 273 273 920 405 152 126 181 51 211 241 126 126 742 178 405 152 126 181 51 211 241 126 126 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 t of 11kV switchgear in Alexandra switching station in 2017; station switching in Alexandra t of 11kV switchgear summarises Zone Substation expenditure for the AMP period. the AMP for expenditure Substation summarises Zone y charger and battery bank replacements over the planning period; the planning and over and batteryy charger bank replacements Replacemen in 2018; in Claudelands substation replacement 11kV switchboard Batter switchyards. substation outdoor chip for with stone replacements Lawn
Operational Expenditure Operational Total Zone Substation Zone Transformer Operational Expenditure Operational Station/ 11kV Switching Sub Zone Capital Expenditure Expenditure Capital Total Zone Substation Zone Transformer Gordonton Zone Zone Gordonton Replacement transformer Alexandra Street Station Station Street Alexandra Replacement Capital Expenditure Capital Station/ 11kV Switching Sub Zone ZONE SUBSTATION ZONE SUBSTATION EXPENDITURE ($000) Table 8.4.8 Zone Substation Expenditure 8.4.8 Zone Table The capital renewal expenditure for each asset class in the above table is based on the results of the CBRM table is based on the results each asset class in the above for expenditure capital renewal The Health Index (HI) and Risk for: modelling and resulting pro les • • • • ASSET RENEWAL PROGRAMME ASSET RENEWAL zone for programme renewal The period. in the AMP renewal scheduled for are substations No zone copper deter project to of the security upgrade system includes the continuation equipment substations been prioritised. have switchyards with outdoor areas in rural located substations conductor theft. Zone 8.4.8 Table Electrical compliance checks, testing and inspection of LV installations are carried out annually. carried out annually. are installations inspection and testing Electricalof LV checks, compliance earthing tested. years are Every three systems SUMMARY OF ZONE SUBSTATION RENEWAL RENEWAL ZONE SUBSTATION OF SUMMARY 8.4.8 AND MAINTENANCE EXPENDITURE V CONDUCTORS V CROSSARMS V POLES copper conductor eet is failing earlier than expected because of damaged strands from conductor is failing earlier eet from than expected copper because of damaged strands 2 Public safety and property damage from live lines falling to the ground; the ground; and property lines falling to safety live Public damage from Our 16mm Falling poles pose a sta and public safety risk or can cause damage to property. The risk of failure is risk of failure The property. risk and public safety poles pose a sta to or can cause damage Falling poles; and hardwood with the remaining greatest pole. car vs partyThird poles e.g. to damage poles are: distribution and LV modes for failure most common The poles; and wooden on the heads for bases and splitting Rotten poles. in concrete Spalding of concrete conductors clashing as a result of high wind, bird contact or tree debris predominately in rural areas. areas. in rural debris predominately contact or tree bird of high wind, conductors clashing as a result poor network performance; to and has contributed This
RISKS AND ISSUES with conductors are: principal risksThe and issues associated • • ASSET RENEWAL PROGRAMME ASSET RENEWAL years in the rst two will be replaced per year 1,000 crossarms approximately a CBRM model, Informed by reliability of our rural key component is another expenditure This 1,500 per year. to of the plan, increasing in section as indicated 6.3.3. strategy improvement MAINTENANCE UNDERTAKEN undertaken inspections are with pole and conductor of crossarms Visual coinciding every years ve detect visual inspection, di cult to by diagnostic new ultrasonic are faultyinspections. As insulators in reliable proved has technology This as part is being introduced of the inspectiontesting process. cracking of partialdetecting of insulator early or high levels signs discharge. RISKS AND ISSUES or wood pin corrosion due to failure insulator are with crossarms principal risksThe issues associated and causing burn or break to crossarms can cause wooden Insulator failure pin hole. the insulator around rot and poor network performance. hazard in a public safety resulting ground the fall to the conductor to ASSET RENEWAL PROGRAMME ASSET RENEWAL the next over annually be replaced planned to 70 and 80 poles are between a CBRM model, Informed by 10 years. MAINTENANCE UNDERTAKEN ofInspections the condition determine is used to undertaken imaging Gamma are ray every years. ve classi ed are Poles pole strength. density and remaining wood measures This poles. the base of wooden the imaging. from based on results date a renewal and assigned guards. of possum of poles includes the repair Maintenance • • • • • RISKS AND ISSUES are: with poles principal risksThe and issues associated DISTRIBUTION AND DISTRIBUTION L DISTRIBUTION AND DISTRIBUTION L DISTRIBUTION AND DISTRIBUTION L 8.4.11 8.4.10 8.4.9
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2016 160 2016 | WEL ASSET MANAGEMENT PLAN 161 copper conductors prone to breaking to while being conductors prone copper 2 Thermal imaging and ultrasonic testing is completed annually on criticalsections is completed of distribution testing and ultrasonic imaging Thermal conductors; visual conductors are only inspectionsThe undertaken distribution and all LV on the remaining inspections every years; ve and is conducted every years; detailed inspections capture More data ve and condition discharge Corona integrity. check conductor and joint is also used after to major faults imaging Thermal failure. of insulator with incidences inspection check feeders to is used Due to higher safety risks associated with 16mm with risks safety associated higher Due to handled we have ceased ‘live line’ work on these conductors. This will result in a greater number of in a greater will result This on these conductors. work line’ ‘live ceased have handled we plans. this conductor period during the AMP than included in our previous renew planned outages to
ASSET RENEWAL PROGRAMME ASSET RENEWAL Silverdale, Weavers, of the renewal period AMP includes targeted the for CBRM-based programme The is another key expenditure This Kauwhata feeders. Te Uku and Te Raglan, Gordonton, Finlayson, Wallace, section in as indicated 6.3.3. strategy improvement reliability of our rural component MAINTENANCE UNDERTAKEN undertaken conductors are as follows: Inspections distribution and LV for • • • • repaired. reactively are conductors but failures It service is not practical proactively to Distribution and LV •
copper copper 2 ------275 275 275 275 275 275 275 275 275 275 300 300 200 792 686 686 686 686 686 686 686 686 686 119 87 87 86 89 89 87 88 88 88 190 176 176 175 179 178 176 178 178 178 127 614 628 606 489 712 631 809 854 850 195 247 247 246 129 128 127 128 128 128 632 1,124 1,138 1,113 885 1,108 1,021 1,202 1,248 1,244 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2,582 2,582 3,392 3,392 3,392 3,392 3,392 3,392 3,287 3,287 3,297 2,647 3,627 3,627 3,527 3,627 3,627 3,627 3,627 3,627 7,246 6,490 8,180 7,980 7,880 7,980 7,980 7,980 7,875 7,875 ms and Insulators modelling shows an increasing rate of failures over the planning period and over of failures rate an increasing ms and Insulators modelling shows It was clear that previous renewal investment strategies would result in increasing failure rates and rates failure in increasing result would strategies investment renewal It previous clear that was of the 16mm being the failure of concern main area The risks. health and safety consequential Crossar are Replacements has been adopted. strategy investment this risk an increasing reduce to therefore delivery for e ciency. areas geographical into prioritised combined on highest risk items the planning period. over expenditure renewal Distribution and 11kV OH Lines has a signi cant conductor. The above investment strategy would ensure the current risk value for this asset class will risk for value the current ensure would strategy investment above The conductor. not increase.
DISTRIBUTION DISTRIBUTION LINES AND LV EXPENDITURE ($000) Capital Expenditure Capital and Crossarms Insulators Distribution Lines LV Lines LV Medium mixed Medium mixed Projects Poles Capital Capital Total Expenditure Operational Operational Expenditure and Crossarms Insulators Distribution Lines LV Lines LV Poles Operational Operational Total Expenditure • • The capital renewal expenditure for each asset class in the above table is based on the results of the CBRM table is based on the results each asset class in the above for expenditure capital renewal The Health Index 3. For:- (HI) and Risk as discussed in Chapter modelling and resulting pro les Table 8.4.12 summarises Distribution and LV Lines expenditure for the AMP period. AMP the for Lines expenditure summarises 8.4.12 Distribution and LV Table SUMMARY OF DISTRIBUTION AND LV LINE LINE LV AND OF DISTRIBUTION SUMMARY Table 8.4.12 Distribution and LV Line Expenditure 8.4.12 Distribution and LV Table 8.4.12 EXPENDITURE AND MAINTENANCE RENEWAL
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ASSET RENEWAL PROGRAMME ASSET RENEWAL as part this occurs replaced other of cables are Where cables. LV for programme is no renewal There has been made an allowance However development. reticulation or furtherprojects such as upgrades LV a fault. sections of cable following replace to RISKS AND ISSUES or directional party third by caused cable failure excavations cables are LV principal risksThe and issues for fail. to joints causing breach ingress drilling and water MAINTENANCE UNDERTAKEN cables. performed maintenance on LV is no routine there their inaccessibility Due to RISKS AND ISSUES excavations damage caused by with distribution principal cables are risksThe and issues associated is undertaken. work repair while cable jointing Network extensive outages can be or directional drilling. MAINTENANCE UNDERTAKEN a number of critical trunk is undertaken maintenance However, on distributionNo routine cables. testing. (PD) Discharge Partial for identi ed been have circuits feeder condition assess the internal to samples of cable sections retrieved occurred are have failures When of the cable. PROGRAMME ASSET RENEWAL sections replace made to has been an allowance however period, is planned during the AMP No renewal a fault. of cable following LV CABLES LV DISTRIBUTION CABLES DISTRIBUTION 8.4.14 8.4.13 ATIONS ATIONS AND TRANSFORMERS 99 352 361 348 277 411 362 469 496 494 234 468 476 463 393 526 478 585 612 610 135 115 115 115 115 115 115 115 115 115 766 766 766 766 766 766 766 766 766 766 457 457 457 457 457 457 457 457 457 457 309 309 309 309 309 309 309 309 309 309 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 ontrol; ontrol; y checks; or cracks; nal panel deterioration or damage; nal panel deterioration nal factors such as lightning strikes, birds, possums, and vegetation. and vegetation. possums, birds, nal factors strikes, such as lightning Vegetation c Vegetation Testing of earth banks; Testing Securit Exter Insulat Poor conductor connections; and Poor Exter
Operational Operational Total Expenditure LV Cables LV Operational Operational Expenditure Distribution Cables Capital Capital Total Expenditure LV Cables Cables LV Capital Capital Expenditure Distribution Cables DISTRIBUTION DISTRIBUTION CABLES AND LV EXPENDITURE ($000) Table 8.4.15 Distribution and LV Cables Expenditure Cables 8.4.15 Distribution and LV Table • MAINTENANCE UNDERTAKEN and Maintenance inspected every are years. ve transformers and pad mounted Our pole mounted includes: testing • • • RISKS AND ISSUES are: with distribution and transformers principal substations risksThe and issues associated • Capital renewal expenditure for distribution and LV cables in the above table is a provision for cable for provision table is a cables in the above distribution and LV for expenditure renewal Capital as part issues identi ed activities. other maintenance following of replacement • • We have not identi ed any systemic problems with any particular manufacturer or model of transformer. particular with any problems manufacturer or model of transformer. systemic any not identi ed have We and is is a serious issue public safety theft our distribution and transformers substations Copper from sta and public reporting from identi ed and during the Incidences are and replace. identify to costly all our substation across a securityupgrade implemented system have We network inspection program. this work. been prioritised for have switchyards with outdoor sites Our rural sites. Table 8.4.15 summarises Distribution and LV cables expenditure for the AMP period. AMP the for cables expenditure summarises 8.4.15 Distribution and LV Table DISTRIBUTION SUBST DISTRIBUTION SUMMARY OF DISTRIBUTION AND LV CABLES CABLES LV AND OF DISTRIBUTION SUMMARY 8.4.16 8.4.15 EXPENDITURE AND MAINTENANCE RENEWAL
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ATIONS AND ATIONS 727 637 627 626 631 628 627 630 630 630 727 637 627 626 631 628 627 630 630 630 1,308 1,308 808 808 808 808 808 808 808 808 1,308 1,308 808 808 808 808 808 808 808 808 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
enance checks on tank and cubicles; checks on tank and enance Cleaning of HV and LV cubicles; and HV and LV Cleaning of of connections imaging and busbars. Thermal Downloading of maximum demand data annually, timed to occur at peak load times; at occur timed to annually, of maximum demand data Downloading inspection;Annual inspections bars and connections; bus imaging Thermal of all links, Maint and areas; and building internal Cleaning equipment and above. 750kVA transformers basis for conducted on a condition Oil tests
DISTRIBUTION DISTRIBUTION AND SUBSTATIONS TRANSFORMERS EXPENDITURE ($000) Capital Expenditure Capital Distribution Transformers (11kV/400V) Capital Capital Total Expenditure Operational Operational Expenditure Distribution Transformers (11kV/400V) Operational Operational Total Expenditure Table 8.4.17 summarises Distribution Substation and Transformer expenditure for the AMP period. the AMP for expenditure Transformer 8.4.17 summarises and Distribution Substation Table ASSET RENEWAL PROGRAMME ASSET RENEWAL included has been of works A programme on failure. only occurs Renewal of distribution transformers to renew these as failures occur. these as failures renew to for of investment prioritisation and level renewal assist in to A CBRM model has been implemented distribution and transformers. substations • • the maintenance and industrial based CBD distribution transformers ground larger For programme includes: programme • • • • • • and prior growth due to transformers larger by after being replaced be refurbished may Transformers if determine to the network. model has been developed back into economic An redeployed being to or refurbished. should be scrapped a transformer three record Loggers and over. 300kVA transformers mounted all new ground to tted loggers are Data and one phase of the outgoing currents phase transformer three temperature, transformer phase voltage, time. loading over of transformer evaluation accurate enables more data This current. circuit retro t A project to smart by in the future. loggers will be replaced meters data It that is envisaged included in expenditure with the corresponding has been implemented transformers existing our forecasts. SUMMARY OF DISTRIBUTION SUBST OF DISTRIBUTION SUMMARY Table 8.4.17 Distribution Substations and Transformers Expenditure 8.4.17 Distribution Substations and Transformers Table 8.4.17 AND MAINTENANCE EXPENDITURE TRANSFORMERS RENEWAL
gas pressure and through-fault indicator checks. checks. indicator and through-fault gas pressure 6 gas leakage from GIS units. High of partial gas leakage levels units. GIS and from discharges 6 The possibilityThe of SF Older, manually operated ABSs are a safety risk to the operator during switching. The most The during switching. the operator risk to a safety ABSs are manually operated Older, There have been no major issues with our distribution been no major issues with CBs; have There RMUs: RMUs: Problems have been experienced with electronic drop out sectionalisers with electronic drop been experienced have Reclosers and Sectionalisers: Problems fault increasing reliably, operated not units have These years. recent installed over been have that times; and restoration normally of the fuse element the deterioration due to Failure Line Fuses: Distribution Overhead conditions. age and weather from occurs mechanical interlock failures have been observed been on the older oil- lled RMUs; have failures mechanical interlock ABS: ABS is the main contacts being stuck in either an opened or closed position; for failure common CBs:
Inspection and maintenance is undertaken every ve years. This includes visual inspection,This reporting on Inspection is undertaken and maintenance every years. ve of line earth veri cation handles, and steelwork, operational conductor rating of insulators, condition earth and reporting tests thermal vision, ultrasound signalling, test, and communications SCADA recloser, workshop- for service from is required of the recloser removal type older oil lled models, For of results. and testing. based maintenance Reclosers, Sectionalisers and HV Overhead Line Fuses Sectionalisers and HV Overhead Reclosers, CBs undertaken such and dynamic tests include PD tests, Tests every inspected years. and tested CBs are three of level The also undertaken are during servicing. Tests analyser. using a CB pro le test ‘ rst-trip’ as the occurred. servicing multiple trips have where is increased Major servicing is undertaken Servicing every six years. oil in oil lled the insulating includes changing alarm SCADA checks, integrity close circuit checks, integrity trip-timing trip circuit tests, breakers, circuit of all functional checks and testing partsand control (both electrical they meet ensure and mechanical) to industry criteria. and recommended minimum acceptance minimum requirements the manufacturer’s ABSs Inspections undertaken horns/chutes, are arc and include visual inspections every years of insulators, ve Earthcontacts and handles. is undertaken testing the same time. at RMUs Inspection of visual inspections, every consists inspected years. and testing and tested are three RMUs SF oil level, control, earth vegetation testing, MAINTENANCE UNDERTAKEN is undertaken and testing Maintenance as follows. on switchgear RISKS AND ISSUES line sectionalisers, and distribution overhead reclosers, CBs, ABSs, includes RMUs, Distribution switchgear are: with distribution principal switchgear risksThe and issues associated fuse units. • The capital renewal expenditure for distribution transformers in the above table is based on the results of on the results table is based in the above distribution transformers for expenditure capital renewal The Health Index 3. Chapter (HI) and Risk as discussed in and resulting the CBRM modelling pro les • • • • During inspections checks are also made on the operating handles, earth conductor, tank condition, tank condition, earthDuring handles, inspections also made on the operating conductor, checks are is undertaken work This with in association and warning signs. panel steelwork, labels, leaks, box pitch with busbar extension inspections. units also include partial RMUs distribution transformer discharge every also subjectmajor maintenance Oil type are to RMUs and visual inspectiontesting of busbar boxes. 12 years. DISTRIBUTION SWITCHGEAR DISTRIBUTION 8.4.18
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gas-insulated switches switches gas-insulated 6 is included within the AMP period; AMP is included within the 6 180 180 338 113 68 124 56 -- 735 515 515 515 515 515 515 515 515 515 511 411438 361 440 361 456 361 456 361 456129 361 456 111150 361 456 111 146 361126 456 110 142 361 122 456311 113 145 118 456 254 112716 147 125 254 111 633 145 121 253 113 625 145 119 254 113 633 147 118 254 113 635 147 120 254 630 147 120 254 628 120 254 634 254 634 634 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,684 1,366 1,512 1,512 1,670 1,445 1,400 1,456 1,388 1,332 Many ABSs associated with 2 pole transformer structures are being removed being removed structures are with 2 pole transformer ABSs associated Many . leaks 6 Targeted renewal of oil lled RMUs with SF RMUs of oil lled renewal Targeted
he CBs that exceed their life expectancy in the AMP period will be renewed. These are are These expectancy their life periodAMP will be renewed. in the exceed he CBs that RMUs: approximately 25 units each year, prioritised by risk, are planned to be renewed. In addition, a prioritised risk, be renewed. by to planned are 25 units each year, ABSs: approximately ABSs with SF manually operated replace to has been implemented programme completely and in other situations cable end switches are being replaced with solid isolating links; with solid isolating being replaced are cable end switches and in other situations completely CBs: T Alexandra St (2017), Claudelands (2018), Ngaruawahia (2019), Massey St (2021), Gordonton (2023) (2019), Massey (2021), Gordonton St (2018), Ngaruawahia (2017), Claudelands St Alexandra network. and outages on the resource considerable Uku(2024). Replacing CBs involves Te and includes This co-ordinated the same time. at are other asset renewals possible where Therefore battery systems; and SCADA upgrades, protection will be reclosers Reclosers and Sectionalisers: A small number of older oil- lled hydraulic with new electronic be replaced will They based on our CBRM assessment. renewed systematically In period. addition, a number of sectionalisers the AMP installed during recent units over controlled will be proactively These the network. the risk to increasing as expected, not worked have years period; in the AMP and years the rst two over replaced other larger renew the need to Renewal of these assets is primarily by driven Line Fuses: HV Overhead primarily crossarms. components, over the AMP period. Vacuum switch units will also be considered due to environmental risk posed environmental due to units will also be considered switch Vacuum period. AMP the over SF possible by
Capital Expenditure Capital Break 11kV Air Switch Breaker 11kV Circuit DISTRIBUTION DISTRIBUTION SWITCHGEAR EXPENDITURE ($000) 11kV Reclosers and Sectionalisers 11kV Ring Main Unit Capital Total Expenditure Operational Expenditure Break 11kV Air Switch Breaker 11kV Circuit 11kV Reclosers and Sectionalisers 11kV Ring Main Unit Operational Total Expenditure Table 8.4.19 Distribution Switchgear Expenditure 8.4.19 Distribution Switchgear Table Table 8.4.19 summarises Distribution Switchgear expenditure for the AMP period. the AMP for expenditure 8.4.19 summarises Distribution Switchgear Table ASSET RENEWAL PROGRAMME ASSET RENEWAL is as follows: distribution switchgear for programme renewal The • • • • • SUMMARY OF DISTRIBUTION SWITCHGEAR RENEWAL SWITCHGEAR RENEWAL OF DISTRIBUTION SUMMARY 8.4.19 EXPENDITURE AND MAINTENANCE
For line di erential relays using copper pilots three yearly tests include primary tests yearly pilot pilots three using copper injection testing, relays line di erential For checks; and insulation checks, resistance nine at maintained are sensors in the switchgear, the light to access require that ash schemes, Arc and with bus maintenance; intervals coincide yearly to breaker is undertaken with circuit interval coincide year to maintenance on a three all other relays, For CB maintenance. A lack of spares; A lack of spares; of maintenance; cost signi cant The functionality and protection complex A lack of more in older electromechanical relays; electromechanical inability relays. test The to Damaged LV pillars may pose a risk to public safety;risk pose a to pillars may and Damaged LV damage. to and prone fragile type pillars are Fibreglass
• • • MAINTENANCE UNDERTAKEN undertaken during on the inspections dependent are Tests Inspections undertaken are every years. three type of relay: RISKS AND ISSUES are: relays with protection principal risksThe and issues associated • • • • MAINTENANCE UNDERTAKEN MAINTENANCE UNDERTAKEN accessibility, Inspections condition, inspected every pillars are the physical years. determine three LV or renewal. pillars includes lid repairs on LV Maintenance and location. vegetation PROGRAMME ASSET RENEWAL breglass with priority to and condition age based on their type, given will be renewed Pillars LV RISKS AND ISSUES Service principal risksThe are: and issues for and Distribution Pillars • • public the highest as having been identi ed network and have underground part pillars are of the LV LV risks Safety include the public. to the higher accessibility is due to This risksafety among our asset classes. parts unit and live the public damage to to being exposed of electrocutionthe probability following types obsolete of pillars and location the pillar, up around build vegetation contact. Minor issues involve property. inside a private installed e.g. type pillars. further during and will be used to 2016 developed Service CBRM models were Distribution and Pillar requirements. the risks and asset renewal analyse The capital renewal expenditure for each asset class in the above table is based on the results of the CBRM the results table is based on the above each asset class in for expenditure capital renewal The Index Health detailed in 3 and Risk (HI) and as discussed in Chapter modelling and resulting pro les section 8.4.18 above. PROTECTION RELAYS PROTECTION SERVICE AND DISTRIBUTION PILLARS DISTRIBUTION AND SERVICE 8.4.21 8.4.20
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ements; t of electromechanical relays with modern numerical relays. This work will typically will work beThis with modern numerical relays. t of electromechanical relays with numerical line di erential on 11kV trunk feeders protection t of Solkor pilot wire enance of databases related to the location, maintenance history and of equipment maintenance and status the location, to related of databases enance Testing, calibration checks, and adjustments; checks, calibration Testing, of data; and downloading Meter reading Checking and reporting and software logs; and indications error status Maint sheets and reports. test completing Visual inspections, dusting, cleaning and minor repairs; cleaning inspections, dusting, Visual checks and measur Operational Replacemen station. or switching undertaken substation zone the at work in conjunction with other upgrade on operate of electromechanical number relays a substantial where Priority will be on the CBD area and feeders; substation critical zone Replacemen new di erential for cater to panels will be installed on these sites and patch Fibre relays. requirements. communication
• • • • is also undertaken testing indication in conjunction ‘point-to-point’ SCADA comprehensive Additional minimise outage windows. to testing with CB and protection ‘loop-back’ on pilot cables and testing resistance insulation through interface is tested integrity Protection cables. checks on bre PROGRAMME ASSET RENEWAL the next years. ve RTUs over with DNP-IP replacement scheduled for RTUs are Protocol Conitel The MAINTENANCE UNDERTAKEN and maintenance tests The inspected every months. are devices four and communications SCADA include: equipment station conducted on all remote • • RISKS AND ISSUES primarily related are devices and communication with our SCADA principal risksThe issues associated and interference, vegetation incorrect positioning of antenna, can be caused by signals Weak signals. weak to of cables and the incompatibility of pilot communication the degradation failed RTUs and batteries, certain components. an emergency. PROGRAMME ASSET RENEWAL period the AMP includes: over relays protection for programme Our renewal • • has been programme renewal an integrated of the works, nature of the complex In consideration and switchgear SCADA/communications of protection, timely integration will ensure that developed spend pro le. 10-year in the proposed re ected is This renewals. further during 2016 and will be used to has been developed the risks analyse relays A CBRM model for requirements. and asset renewal Modular Substation knowledge our in-house expand to and skills substation set up a modular and in protection have We and devices using similar equipment simulation includes real-time This technology. communications in can be used as spares devices installed The our NMS. with and integration our substations in found SCADA AND COMMUNICATION DEVICES AND COMMUNICATION SCADA 8.4.22
summarises Other System Fixed Assets expenditure for the AMP period. the AMP for expenditure Assets summarises Fixed Other System Table 8.4.25 Table ASSET RENEWAL PROGRAMME ASSET RENEWAL tests. and impedance when they fail discharge renewed are Distribution batteries equipment supplies. battery old or poor condition bank and power will renew During period the AMP we supplies with higher with dual battery banks and power some units will be replaced appropriate, Where systems. these utilised for is now design A standardised reliability. greater provide capacities to in 2016. It battery systems is expected the for and charger that been developed CBRM models have will enable further of the risk analysis outcomes of risks mitigation in this asset category. MAINTENANCE UNDERTAKEN carried out during Tests inspected bi-monthly. are battery systems and charging their criticality, Due to and condition. voltage oat alarm tests, these inspections tests, include impedance station carried and switching substation out every are on all zone tests years two discharge Additionally, battery that battery ensure performance banks to standard. is up to systems Faulty is undertaken systems. no other maintenance and charger Other on batteries than testing, renewed. are RISKS AND ISSUES of loss of control are: with our battery principal risks systems The issues associated and and charger factorsprimary such as high humidity fail and environmental when battery equipment systems or charger expectancy. life can reduce that and high temperature ASSET RENEWAL PROGRAMME ASSET RENEWAL load control The the plan. into has been incorporated Renewal of the SFU-G converters type control smart by has been superseded as this technology meteringinjection not be renewed will plant technology. MAINTENANCE UNDERTAKEN visual testing, plant Inspections involve injection is inspected equipment twice a year. load control The assessment a condition undergo plants the static each year Additionally tests. strength checks and signal the supplier. by and maintenance RISKS AND ISSUES long lead-times on injection are: equipment load control with our principal risksThe and issues associated partsreplacement with the SFU-G issues and compatibility converter. type ripple control SUMMARY OF OTHER SYSTEM FIXED ASSET RENEWAL ASSET RENEWAL FIXED SYSTEM OF OTHER SUMMARY BATTERY AND CHARGER SYSTEMS AND CHARGER BATTERY LOAD CONTROL EQUIPMENT CONTROL LOAD 8.4.25 AND MAINTENANCE EXPENDITURE 8.4.24 8.4.23
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2016 170 2016 | WEL ASSET MANAGEMENT PLAN 171
184 345 350 341 295 384 351 424 442 440 270 232 232 231 233 232 232 233 233 233 207 177 177 215 219 216 177 181 181 181 373 373 340 340 340 373 373 373 373 373 407 407 407 407 407 367 367 367 367 367 150 150 240 190 280 100 70 70 120 20 521 401 201 151 321 151 151 151 151 171 1,034 1,127 1,099 1,127 1,088 1,204 1,134 1,211 1,229 1,227 1,078 958 848 748 1,008 618 588 588 638 558 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 tion of new technology e.g. diagnostic measurements and mobility solutions resulting measurements diagnostic e.g. tion of new technology tive repairs on WEL’s LV network. LV WEL’s on repairs tive Voltage investigation and corrective works required following smart analysis; data following meter required works and corrective investigation Voltage the accuracy data; of asset condition inspections improve to and accelerated veri cation data Field the across costs maintenance in preventive increase in a slight resulting testing Increased diagnostic period; AMP and Proac Implementa in more e cient maintenance delivery and result in slightly decreased operational costs across the across costs operational delivery decreased in slightly and result maintenance e cient in more AMP period; AMP prioritisation is expected will assist in maintenance that information and condition asset data Better part in the latter works period; of the AMP corrective and reduce costs maintenance reduce to
Operational Operational Total Expenditure Service and Distribution Pillars SCADA & Comms SCADA Protection Relays Protection Operational Operational Expenditure Other Capital Expenditure Expenditure Capital Total Service and Distribution Pillars SCADA & Comms SCADA Capital Expenditure Capital Relays Protection OTHER SYSTEM SYSTEM OTHER FIXED ASSETS EXPENDITURE ($000) Table 8.4.25 Other System Fixed Asset Expenditure 8.4.25 Other Fixed System Table The capital renewal expenditure for each asset class in the above table is based on the results of the CBRM based on the results table is class in the above each asset for expenditure capital renewal The Health Index 3 and as detailed in the (HI) and Risk as discussed in Chapter modelling and resulting pro les sections. previous of level with a lower years in the rst few slightly increases forecast expenditure maintenance 10 year The years in the rst few increase The 8.5.1.1. in Figure periods as shown in the later expenditure maintenance is mainly due to:- • • • • is mainly due to: years expenditure in the later decrease The • • PROPOSED 10-YEAR MAINTENANCE EXPENDITURE PROPOSED 8.5.1 8.5 SUMMARY EXPENDITURE OVERALL
copper conductor copper
Subtransmission Other system xed assets Distribution switchgear Distribution Substations and transformers Distribution and LV cables Distribution and LV lines Zone Substations 2
2026
2025
2026
2024 2025
Maintenance
2023
2024
2022 2023
2022
2021
2021
2020
Service interruptions and emergencies 2020
2019
2019
2018
Vegetation 2018
2017 2017 - e fault repair costs are expected to decrease over the planning period due to work plan work the planning period due to over decrease expected to are costs e fault repair tion to be cut towards the end of the AMP period; the end of the AMP and be cut towards tion to - 8,000 6,000 4,000 2,000
14,000 12,000 10,000
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 $000
0 $00 10 YEAR RENEWAL EXPENDITURE 10 YEAR MAINTENANCE, VEGETATION AND 10 YEAR MAINTENANCE, FAULTS EXPENDITURE Distribution Switchgear – an increase in 2017, 2019 and 2021 for circuit breaker replacements; replacements; breaker circuit and 2021 for in 2017, 2019 – an increase Distribution Switchgear in transformer 2019 onwards spend from – decreasing Transformers Distribution and Substations and CBRM modelling results; due to replacements our 16mm spend mainly due to Lines – an increasing Distribution and LV Reactiv e ciency initiatives. Vegetation expenditure is based on our tree growth model. It predicts that fewer sites will require will require sites It model. fewer predicts that growth our tree is based on expenditure Vegetation vegeta replacement programme. replacement
Figure 8.5.2.1 Renewal Expenditure Pro le Expenditure 8.5.2.1 Renewal Figure • • • The 10 year renewal expenditure forecast is predominately driven by the CBRM models for most of the the CBRM models for by driven is predominately forecast expenditure renewal 10 year The asset categories. due to: 8.5.2.1 are in Figure the planning period as shown over major variances The Figure 8.5.1.1 Maintenance, Vegetation and Faults Expenditure Pro le Expenditure and Faults Vegetation 8.5.1.1 Maintenance, Figure • • 8.5.2 EXPENDITURE RENEWAL 10-YEAR PROPOSED
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SUMMARY OF SUMMARY EXPENDITURE FORECASTS
9.
tributions; provides an overview of total operational expenditure during the AMP expenditure an overview operational of total (9.3) provides Expenditure ational oduction forecasts; the expenditure determine (9.1) describes assumptions used to the nancial Unless otherwise stated, gures in this chapter are on a nominal basis (i.e. include an allowance for for an allowance include on a nominal basis (i.e. are in this chapter Unless otherwise gures stated, expected in ation). price Capital con Capital of nancing (FDC);Cost In ation; and uncertainty. Managing forecast Intr period 8. as described in Chapter provides an overview of total capital expenditure during period as the AMP an overview capital expenditure of total (9.2) provides Expenditure Capital 7 and 8; and described in Chapters Oper
FORECASTS SUMMARY OF EXPENDITURE OF EXPENDITURE SUMMARY COST OF FINANCING (FDC) with 2.2 (11) of the Electricity Distribution included in accordance of nancing has been Services cost The Input 2012. Methodologies Determination • • CONTRIBUTIONS CAPITAL not been have capital contributions i.e. amounts the gross are shown expenditure works customer The the forecast. out from netted Our forecasts rely on a number of inputs and assumptions. These include: These on a number of inputs and assumptions. rely Our forecasts • • operational expenditure. expenditure. operational The forecasts presented in this chapter are a summary sections. are described this chapter in in previous of the expenditure presented forecasts The The our business. across view of our expenditure a consolidated provide to here presented are They 2026.31 March 1 April 2016 to period of the AMP, the 10 year cover pro les expenditure the example, For nancial year-end. to in each table refers adopted the notation previously, explained As as 2017. to is referred 2017 nancial year 31 March 1 April 2016 to expected has been made for means an allowance This in nominal dollars. also presented are forecasts The price in ation. This section describes the inputs and assumptions used to forecast our capital and sectionThis forecast describes the inputs and assumptions used to This chapter provides a summary of the expenditure forecasts presented and discussed in previous and discussed in previous presented a summary forecasts provides chapter of the expenditure This period. the AMP over in a number of categories an overview It of our expenditure provides chapters. is structured follows. as chapter The • • • FORECAST FORECAST INPUTS AND ASSUMPTIONS INTERPRETING THE FORECASTS
9.1.2 9.1.1 9.1 INTRODUCTION
9.
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2016 174 2016 | WEL ASSET MANAGEMENT PLAN 175 2.05% 2.25% 2.25% 2.00% WEIGHTED INFLATION WEIGHTED INFLATION ASSUMPTION APPLIED 0% 10% 50% 50% TOTAL COST TOTAL MATERIALS IN MATERIALS PROPORTION OF PROPORTION 90% 50% 50% 100% LABOUR IN TOTAL COST TOTAL PROPORTION OF PROPORTION erials – we have assumed 2.5% throughout the AMP period the AMP throughout assumed 2.5% have erials – we Labour – we have assumed 2% throughout the AMP period; and the AMP assumed 2% throughout have Labour – we Mat
Maintenance Maintenance Renewals Development Capital Operations INFLATION adjusted In have this case it means we in nominal terms. otherwise, shown stated unless are forecasts, The delivery the to components main cost two are There in ation. expected cost for account to our estimates labour and are These expenditures. and capital development renewal maintenance, of our operations, each are: used for adjustments per annum in ation The materials. • • or proportion the composition to category and of labour Each expenditure is impacted according and resulting the composition shows below table The the service deliver to or asset. required materials factorin ation used in each case. This section provides an overall summary of the forecast capital expenditure by category. by summary capital expenditure an overall of the forecast sectionThis provides and the network level to according is a breakdown rst The formats. in two is shown expenditure The the regulatory categories to according 7 and 8 and then secondly asset classes as described in Chapters is further into capital expenditure down broken Forecast Commission. the Commerce speci ed by in sections 9.2.4. and non-network 9.2.2 to capital expenditure renewals network development, While the assumed in ation rates provide a general trend for future labour rates and material costs, there there costs, and material labour rates future for trend a general provide rates the assumed in ation While of uncertainty and market conditions level of example, in such aspects.an inherent By way is always pressures. supply and demand pricing can change with relative the to is limited assumed the change in labour and material have we the purposes of this AMP, For or speci c in network components speci c trends than modelling assumed in ationary rather pressures in the labour market. trades CAPITAL EXPENDITURE SUMMARY CAPITAL Table 9.1.2 In ation adjustment for each expenditure category 9.1.2 In ation adjustment for each expenditure Table 9.2 EXPENDITURE CAPITAL 9.2.1 -
------69 165 767 3,179 1,806 2,306 80 21 22 2,140 23 23 24 24 25 25 26 26 27 28 54 118 56 58 59 60 62 1,497 3,665 66 3,665 1,497 5658 59 6062 118 54 511 251 260 233 208 294 184 178 182 203 180 276 282 288 295 301 308 315 322 329 337 187 152 80 22 22 11 1272 24 152 187 354 364 524 536 675 505 478 537 490 450 291 297 250 245 251 256 262 268 274 280 507 519 1,065 1,089 1,672 3,424 3,515 1,327 606 2,494 983 314 311 296 661 906 943 323 331 338 3,890 4,196 2,036 3,045 2,632 2,174 3,654 3,199 1,980 2,025 1,368 1,065 1,092 1,117 1,192 1,146 1,157 1,202 1,206 1,214 2,336 2,892 2,318 2,440 2,461 2,428 2,531 2,624 2,705 2,706 6,477 7,517 9,503 9,520 9,623 9,953 10,177 10,406 10,512 10,749 10,512 10,406 10,177 6,477 7,517 9,503 9,520 9,623 9,953 1,669 2,266 1,581 1,765 1,664 1,130 1,083 1,108 1,176 944 1,471 1,034 641 119 406 267 226 2,657 2,396 136 2,396 2,657 641 119406 267 226 1,034 1,471 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 ------33,951 34,175 31,883 34,621 34,49136,073 35,937 37,262 37,696 36,097 30,061 29,979 29,847 31,576 31,859 33,900 32,283 34,063 35,716 34,072 11,311 12,203 14,226 16,782 15,701 16,350 14,465 14,785 15,005 17,352 18,750 17,776 15,621 14,794 16,158 17,549 17,818 19,278 20,711 16,720 13,233 12,713 11,112 10,666 10,748 10,990 11,237 11,490 11,749 12,013
Grand Total Grand Capital Expenditure Capital Non-network Capital Expenditure Capital Total Network Network Total Rural Total Rural Other Assets Other system xed assets Other xed system Distribution switchgear Distribution Substations and transformers Distribution and LV cables Distribution and LV Distribution and LV lines Distribution and LV Zone Substations Zone Rural Sub transmission Urban Total Urban Customer Other Assets Other system xed assets Other xed system Distribution switchgear Distribution Substations and transformers Distribution and cables LV Distribution and LV lines Distribution and LV Zone Substations Zone Urban Sub transmission GXP CAPITAL CAPITAL EXPENDITURE ($000) Table 9.2.1.1 Total Capital Expenditure Forecast Forecast Expenditure Capital 9.2.1.1 Total Table asset class. asset class. Table 9.2.1.1 shows a summary of capital expenditure over the period by development plan and by plan and by development the period by a summary over 9.2.1.1 shows expenditure of capital Table
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2016 176 2016 | WEL ASSET MANAGEMENT PLAN 177 ----- 109 56 - 72 240 935 1,504 2,250 4,773 4,283 5,990 4,207 5,217 6,489 4,418 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2,976 3,174 1,308 919 1,118 1,143 1,169 1,195 1,222 1,249 1,278 1,811 1,693 1,801 1,808 1,760 1,849 1,926 1,991 1,976 1,172 1,826 1,599 1,093 1,118 1,739 1,169 1,195 1,222 1,249 3,890 4,196 2,036 3,045 2,632 2,174 3,654 3,199 1,980 2,025 10,258 9,539 9,804 9,746 9,630 9,847 10,069 10,295 10,527 10,764 13,371 11,885 13,193 13,133 13,846 13,420 13,821 14,235 14,265 14,416 30,061 29,979 29,847 31,576 31,859 33,900 32,283 34,063 35,716 34,072 33,951 34,17531,883 34,621 34,491 36,073 35,937 37,262 37,696 36,097 CAPITAL CAPITAL EXPENDITURE ($000) Consumer connection System Growth System Asset Asset and Replacement Renewal Asset relocations Asset Quality of supply Legislative and Legislative regulatory Other reliability, Other reliability, andsafety environment Total Network Network Total Capital Expenditure Non-network Capital Expenditure Grand Total Grand This section provides an overview of network development capital expenditure. capital expenditure. an overview section of networkThis development provides quality and the need for growth of forecast 7, localised areas discussed in detail within Chapter As expenditure the respective illustrate To expenditure. driving network development are improvements is reliability rural that Note has been split. the expenditure development, urban and rural for required 8. as discussed in Chapter programme, our renewal through addressed largely by capital expenditure network urban development and rural of GXP, the breakdown 9.2.2.1 shows Table asset class. Table 9.2.1.2 shows a summary of capital expenditure over the period according to the Commerce the Commerce to the period according a summary over 9.2.1.2 shows expenditure of capital Table categories. expenditure Commission’s NETWORK DEVELOPMENT CAPITAL EXPENDITURE DEVELOPMENT CAPITAL NETWORK Table 9.2.1.2 Total Capital Expenditure Forecast Forecast Expenditure Capital 9.2.1.2 Total Table 9.2.2 - - - 1,874 2,117 ------1,434 3,600 2,390 2,264 - 224 229 359 597 626 ------535 547 1,118 2,857 2,935 734 ------63 ------61 63 64 55 56 5758 60 61 62 51 146 748 3,159 1,786 2,286 59 51 1,046 1,069 1,093 1,118 1,143 1,169 1,195 1,222 1,249 549 629 498 819 1,525 908 1,155 831 608 575 588 601 427 1,155 908 1,525 819 187 152 80 22 22 11 12 72 24 152 187 511 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,227 1,759 1,640 1,747 1,753 1,703 1,790 1,866 1,930 1,914 1,841 2,950 3,457 5,999 4,656 5,131 3,018 3,061 3,152 5,280 10,258 9,539 9,804 9,746 9,630 9,847 10,069 10,295 10,527 10,764 10,527 10,295 10,069 9,539 9,804 9,746 9,630 9,847 10,258 11,874 11,969 11,889 11,525 12,240 14,206 14,275 15,572 17,077 13,127 13,714 14,920 15,346 17,523 16,896 19,337 17,293 18,633 20,229 18,407
NETWORK NETWORK DEVELOPMENT CAPITAL EXPENDITURE ($000) GXP Urban Sub transmission Zone Substations Zone LV lines LV Distribution and LV cables LV Distribution and Distribution andSubstations transformers Distribution switchgear xed assets xed Other system Other Assets Customer Urban Total Urban R u r a l Sub transmission Zone Substations Zone Distribution and Distribution LV lines LV Distribution and Distribution LV cables LV Distribution Distribution and Substations transformers Distribution Distribution switchgear Other system system Other assets fixed Other Assets Other R u r a l T o t a l G r a n d T o t a l Table 9.2.2.1 Total Network Development Capital Expenditure Forecast Expenditure Network Development Capital 9.2.2.1 Total Table
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2016 178 2016 | WEL ASSET MANAGEMENT PLAN 179 ------109 56 267 328 - -- 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 3,849 3,778 3,863 3,950 4,039 4,130 4,223 4,318 4,415 4,515 2,781 2,579 2,637 2,697 2,758 2,820 2,883 2,948 3,014 3,082 3,628 3,181 3,035 2,771 2,834 2,897 2,963 3,029 3,097 3,167 10,258 9,539 9,804 9,746 9,630 9,847 10,069 10,295 10,527 10,764 72 240 935 1,504 2,250 4,773 4,283 5,990 4,207 5,217 6,489 4,418 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,278 1,811 1,693 1,801 1,808 1,760 1,849 1,926 1,991 1,976 1,172 1,826 1,599 1,093 1,118 1,739 1,169 1,195 1,222 1,249 10,258 9,539 9,804 9,746 9,630 9,847 10,069 10,295 10,527 10,764 13,714 14,920 15,346 17,523 16,896 19,337 17,293 18,633 20,229 18,407 CONSUMER CONNECTION CAPITAL EXPENDITURE ($000) NETWORK NETWORK DEVELOPMENT CAPITAL EXPENDITURE ($000) Consumer connection System Growth System Quality of supply New Connections <100 amp Legislative and Legislative regulatory Other reliability, Other reliability, andsafety environment Total New Connections >=100 amp Subdivisions Asset Speci c Pricing Speci c Pricing Asset Jobs Driven Customer Total CONSUMER CONNECTION is summarised in the table below. connection customer capital expenditure Forecast Table 9.2.2.3 Total Customer Connection Expenditure Forecast Expenditure Connection Customer 9.2.2.3 Total Table Table 9.2.2.2 shows network development capital expenditure over the period according to the to the period according over capital expenditure network development 9.2.2.2 shows Table within the of expenditure detailed breakdown A more categories. expenditure Commission’s Commerce 9.2.2.7. to 9.2.2.3 Tables in can be found categories expenditure Commission’s Commerce Table 9.2.2.2 Total Network Development Capital Expenditure Forecast Expenditure Network Development Capital 9.2.2.2 Total Table 1,874 2,117 2,117 - - 1,434 3,600 - 2,390 2,264 ------626 - 224 229 - 359 559 2,286 1,753 137 - - - - - 535 547 559 571 1,182 597 - 535 547 559 571 1,182 63 42 748 3,050 1,730 2,286 59 42 748 3,050 1,730 2,286 59 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 ------55 73 ------10 10 11 - - - 831 608 575 588 601 427 - 876 1,155 - 788 1,269 - - 81 47 80 22 22 1112 72 24 ------935 1,462 1,502 1,724 2,553 3,705 4,148 5,217 6,489 2,301 ------935 - - 1,504 2,250 - 4,773 4,283 5,990 4,207 5,217 6,489 4,418 ------SYSTEM GROWTH CAPITAL EXPENDITURE ($000) Urban Subtransmission GXP Zone Substations Zone Distribution and lines LV Distribution and cables LV Distribution andSubstations transformers Distribution switchgear Other xed system assets Other Assets Customer Urban Total Urban Rural Subtransmission Substations Zone Distribution and lines LV Distribution and cables LV Distribution andSubstations transformers Distribution switchgear Other xed system assets Other Assets Total Rural Total Grand SYSTEM GROWTH asset class is summarised table below. in the by capital expenditure growth system Urban and rural Table 9.2.2.4 Total System Growth Capital Expenditure Forecast Expenditure Capital Growth System 9.2.2.4 Total Table
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2016 180 2016 | WEL ASSET MANAGEMENT PLAN 181 ------109 56 109 56 ------51 105 20 136 72 240 51 52 53 55 56 57 58 60 61 62 307 209 107 55 56 57 58 60 61 62 920 1,549 1,533 1,692 1,697 1,646 1,732 1,807 1,869 1,851 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,278 1,811 1,693 1,801 1,808 1,760 1,849 1,926 1,991 1,976 QUALITY OF CAPITAL SUPPLY EXPENDITURE ($000) LEGISLATIVE LEGISLATIVE AND REGULATORY CAPITAL EXPENDITURE ($000) Seismic upgrades ofSeismic upgrades substations Network Upgrades Network Upgrades DG due to applications AUFLS scheme AUFLS changes Power Quality - Power to required Works correct customer complaints Total Voltage upgrade upgrade Voltage projects Total QUALITY OF SUPPLY QUALITY activity by Quality capital expenditure of supply is summarised in the table below. LEGISLATIVE AND REGULATORY LEGISLATIVE activity by and regulatory capital expenditure is summarised in the table below. Legislative Table 9.2.2.6 Total Legislative and Regulatory Forecast Expenditure Capital Legislative 9.2.2.6 Total Table Table 9.2.2.5 Total Quality Forecast Expenditure Capital of Supply 9.2.2.5 Total Table ------597 ------109 56 ------51 1,046 1,069 1,093 1,118 1,143 1,169 1,195 1,222 1,249 51 105 31 256 32 51 52 53 55 56 57 58 60 61 62 511 681 968 583 55 56 654 58 60 61 62 106 105 493 555 498 2,522 3,877 3,292 3,004 2,982 3,499 3,017 3,121 3,213 3,225 1,841 2,909 2,709 2,949 2,926 2,846 2,959 3,061 3,152 3,163 1,227 1,759 1,640 1,747 1,753 1,703 1,790 1,866 1,930 1,914 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Grand Total Grand Rural Total Rural Other Assets Other system assets xed Distribution switchgear Distribution andSubstations transformers Distribution and cables LV Distribution and lines LV Zone Substations Zone Rural Subtransmission Urban Total Urban Other Assets Other system assets xed Distribution switchgear Distribution andSubstations transformers Distribution and cables LV Distribution and lines LV Zone Substations Zone Urban Subtransmission RSE CAPITAL RSE CAPITAL EXPENDITURE ($000) Table 9.2.2.7 Total Reliability, Safety Forecast Expenditure Capital and Environment Reliability, 9.2.2.7 Total Table RELIABILITY, SAFETY AND ENVIRONMENT (RSE) ENVIRONMENT AND SAFETY RELIABILITY, is summarised asset class in the table below. by RSE capital expenditure Urban and rural
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2016 182 2016 | WEL ASSET MANAGEMENT PLAN 183 180 9,499 ------18 19 19 20 20 20 21 21 22 22 276 282 288 295 301 308 315 322 329 337 923 405 144 119 183 38 226 267 133 136 251 260 233 208 294 184 178 182 203 983 314 311 296 303 309 316 323 331 338 507 519 531 542 555 567 580 593 606 620 229 234 186 190 195 199 204 208 213 218 354 364 524 536 675 505 478 537 490 450 850 741 673 609 832 522 509 520 576 517 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,109 1,134 678 693 709 725 741 758 775 792 9,471 9,253 10,768 10,783 11,045 11,219 11,447 11,723 11,853 12,072 1,368 1,065 1,092 1,117 1,192 1,146 1,157 1,202 1,206 1,214 6,876 5,806 3,7333,269 3,919 3,344 3,543 3,707 3,634 3,593 6,426 6,471 8,434 8,427 8,505 8,811 9,009 9,211 9,290 16,347 15,059 14,501 14,053 14,963 14,563 14,990 15,430 15,486 15,665 Distribution and cables LV Other Assets RENEWAL RENEWAL CAPITAL EXPENDITURE ($000) Distribution andSubstations transformers Rural Total Rural Urban Subtransmission 54 55 56 58 59 60 62 63 64 66 Distribution switchgear Grand Total Grand Zone Substations Zone Other system assets xed Distribution and lines LV Distribution and cables LV Distribution andSubstations transformers Distribution switchgear Other system assets xed Other Assets Customer 2,976 3,174 1,308 919 1,118 1,143 1,169 1,195 1,222 1,249 Urban Total Urban Rural Subtransmission 23 23 24 24 25 25 26 26 27 28 Zone Substations Zone Distribution and lines LV This section provides an overview of our renewal capital expenditure during the AMP period. during the AMP expenditure capital an overview section of our renewal This provides in risk high components at has been targeted expenditure renewal 8 our discussed in Chapter As the respective illustrate To the network, with a particular performance. rural on those a ecting focus been split. has our expenditure areas in urban and rural required expenditure summarised asset class is in the table below. by capital expenditure renewal Urban and rural Table 9.2.3.1 Total Renewal Capital Expenditure Forecast Expenditure Capital Renewal 9.2.3.1 Total Table 9.2.3 EXPENDITURE CAPITAL RENEWAL 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 13,371 11,885 13,193 13,133 13,846 13,420 13,821 14,235 14,265 14,416 2,976 3,174 1,308919 1,118 1,143 1,169 1,195 1,222 1,249 16,347 15,059 14,501 14,053 14,963 14,563 14,990 15,430 15,486 15,665 RENEWAL RENEWAL CAPITAL EXPENDITURE ($000) Asset Asset and Replacement Renewal Asset relocations Asset Total Table 9.2.3.2 shows renewal capital expenditure over the period according to the Commerce Commerce the to the period according over expenditure capital renewal 9.2.3.2 shows Table within the Commerce of expenditure breakdown detailed A more categories. expenditure Commission’s 9.2.3.3 and 9.2.3.4. Tables in can be found categories expenditure Commission’s Table 9.2.3.2 Total Renewal Capital Expenditure Forecast Expenditure Capital Renewal 9.2.3.2 Total Table
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2016 184 2016 | WEL ASSET MANAGEMENT PLAN 185
------54 55 56 58 59 60 62 63 64 66 23 23 24 24 25 25 26 26 27 28 18 19 19 20 20 20 21 21 22 22 923 405 144 119 183 38 226 267 133 136 983 314 311 296 303 309 316 323 331 338 507 519 531 542 555 567 580 593 606 620 229 234 186 190 195 199 204 208 213 218 354 364 524 536 675 505 478 537 490 450 850 741 673 609 832 522 509 520 576 517 276 282 288 295 301 308 315 322 329 337 251 260 233 208 294 184 178 182 203 180 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 3,900 2,632 2,425 2,350 2,801 2,201 2,374 2,512 2,412 2,344 6,426 6,471 8,434 8,427 8,505 8,811 9,009 9,211 9,290 9,499 1,109 1,134 678 693 709 725 741 758 775 792 1,368 1,065 1,092 1,117 1,192 1,146 1,157 1,202 1,206 1,214 9,471 9,253 10,768 10,783 11,045 11,219 11,447 11,723 11,853 12,072 13,371 11,885 13,193 13,133 13,846 13,420 13,821 14,235 14,265 14,416
ARR CAPITAL ARR CAPITAL EXPENDITURE ($000) Urban Sub transmission Zone Substations Zone Distribution and lines LV Distribution and cables LV Distribution andSubstations transformers Distribution switchgear Other system assets xed Other Assets Urban Total Urban Rural Sub transmission Zone Substations Zone Distribution and lines LV Distribution and cables LV Distribution andSubstations transformers Distribution switchgear Other system assets xed Other Assets Rural Total Rural Grand Total Grand ASSET REPLACEMENT AND RENEWAL (ARR) AND RENEWAL ASSET REPLACEMENT class is summarised asset in the by ARR capital expenditure of urban and rural breakdown The table below. Table 9.2.3.3 Total Asset Replacement and Renewal Capital Expenditure Forecast Expenditure Capital and Renewal Asset Replacement 9.2.3.3 Total Table ------399 735 429 329 786 459352 840 491 502 685 240 246 251 257 306 313 320 328 335 864 1,473 452 154 665 1,174 202 807 590 295 525 203 45 1,174 665 46 543 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2,141 2,047 1,159 1,657 999 1,113 2,464 1,836 1,116 1,142 3,890 4,196 2,0363,045 2,632 2,174 3,654 3,199 1,980 2,025 2,976 3,174 1,308 919 1,118 1,143 1,169 1,195 1,222 1,249 NON-NETWORK NON-NETWORK CAPITAL EXPENDITURE ($000) ASSET RELOCATION CAPITAL EXPENDITURE ($000) Computer Computer Equipment Relocations 335 686 322 219 559 571 584 597 611 625 Computer Computer Software Undergrounding 511 523 535 547 559 571 584 597611 625 Plant and Plant Equipment Transit Hamilton Hamilton Transit Bypass Motor Vehicles Transit Huntly Transit Bypass Total Longswamp 721492 Total The expenditure is shown in two formats. The rst is a breakdown according to the network level and the network level to according is a breakdown rst The formats. in two is shown expenditure The speci ed the regulatory categories to according 8 and then secondly asset classes as described in Chapter network is further into expenditure down operational broken Forecast Commission. the Commerce by and non-network sections in 9.3.2 and 9.3.3. This Section provides an overall summary of the forecast operational expenditure by category. by expenditure summary operational Section overall an of the forecast This provides The breakdown of non-network capital expenditure by asset type by is summarised in the table below. of non-network capital expenditure breakdown The ASSET RELOCATION activity by capital expenditure is summarised table below. in the relocation Asset Table 9.2.4 Non-Network Capital Expenditure Forecast Expenditure 9.2.4 Non-Network Capital Table Table 9.2.3.4 Total Asset Relocation Capital Expenditure Forecast Expenditure Capital Asset Relocation 9.2.3.4 Total Table 9.3 EXPENDITURE OPERATIONAL 9.3.1 EXPENDITURE SUMMARY OPERATIONAL 9.2.4 EXPENDITURE CAPITAL NON-NETWORK
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2016 186 2016 | WEL ASSET MANAGEMENT PLAN 187 25,023 26,295 26,948 27,706 27,663 28,870 28,988 30,149 31,007 31,881 16,955 17,496 18,054 18,629 19,223 19,836 20,468 21,120 21,793 22,487 8,069 8,799 8,894 9,077 8,440 9,035 8,520 9,029 9,214 9,394 3,693 4,168 4,231 4,308 3,802 4,187 3,772 4,114 4,239 4,321 ------2,217 2,268 2,292 2,347 2,029 2,126 1,772 1,851 1,874 1,912 364 341 340 357 361 366 372 383 391 399 392 346 348 355 365 371 378 387 395 403 37 85 89 88 74 106 97 124 133 135 133 97 124 37 85 89 88 74 106 459 928 960 955 761 1,002 934 1,144 1,217 1,238 1,217 934 1,144 459 928 960 955 761 1,002 161 140 142 145 148 151 154 157 160 164 4,376 4,631 4,663 4,768 4,637 4,848 4,748 4,915 4,975 5,073 ------2,733 2,880 2,879 2,960 2,884 2,917 2,835 2,834 2,820 2,877 367 318 324 330 341 346 352 362 370 377 350 317 318 324 334 339 345 354 361 369 202 402 417 414 360 489 454 564 601 611 186 243 250 252 219 249 243 270 281 286 399 340 346352 360 367375 383 391399 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Grand Total Grand Non- Network Operational Expenditure Total Network Network Total Operational Expenditure Rural Total Rural Other Assets Other system assets xed Distribution switchgear Distribution andSubstations transformers Distribution and cables LV Distribution and lines LV Zone Substations Zone Rural Subtransmission 63 60 60 62 64 66 66 68 69 70 Urban Total Urban Other Assets Other system assets xed Distribution switchgear Distribution andSubstations transformers Distribution and cables LV Distribution and lines LV Zone Substations Zone Urban Subtransmission 139 131 130 135139 141 144 148 151 154 OPERATIONAL OPERATIONAL EXPENDITURE ($000) Table 9.3.1.1 Total Operational Expenditure Forecast Forecast Expenditure Operational 9.3.1.1 Total Table Table 9.3.1.1 shows a summary of operational expenditure over the AMP period by development plan and development period by the AMP a summary over 9.3.1.1 shows expenditure of operational Table class. asset by
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2,551 2,604 2,604 2,657 2,580 2,530 2,477 2,421 2,361 2,410 2,551 2,604 2,6042,657 2,580 2,530 2,477 2,421 2,361 2,410 1,343 1,371 1,399 1,428 1,129 1,153 823 840 857 875 1,343 1,371 1,3991,428 1,129 1,153 823 840 857 875 2,760 2,664 2,708 2,794 2,758 2,797 2,799 2,880 2,939 2,999 2,760 2,664 2,708 2,794 2,758 2,797 2,799 2,880 2,939 2,999 1,414 2,161 2,183 2,197 1,973 2,555 2,421 2,889 3,057 3,110 1,414 2,161 2,1832,197 1,973 2,555 2,421 2,889 3,057 3,110 8,069 8,799 8,894 9,077 8,440 9,035 8,520 9,029 9,214 9,394 8,069 8,799 8,894 9,077 8,440 9,035 8,520 9,029 9,214 9,394 16,955 17,496 18,054 18,629 19,223 19,836 20,468 21,120 21,793 22,487 25,023 26,295 26,948 27,706 27,663 28,870 28,988 30,149 31,007 31,881 NETWORK NETWORK OPERATIONAL EXPENDITURE ($000) Service and interruptions emergencies OPERATIONAL OPERATIONAL EXPENDITURE ($000) Service and interruptions emergencies Vegetation Vegetation management Vegetation Vegetation management Routine and corrective and maintenance inspection Routine and corrective and maintenance inspection Asset replacement replacement Asset and renewal Asset replacement replacement Asset and renewal Total T o t aOperational l NExpenditure e t w o r k Non- Network Operational Expenditure Grand Total Grand to 9.3.2.5. to This section provides an overview of network operational expenditure. The breakdown of the network breakdown The an overview expenditure. section of network operational This provides of detailed breakdown A more activity by expenditure is summarised in the table below. operational 9.3.2.2 Tables in can be found categories expenditure Commission’s within the Commerce expenditure Table 9.3.1.2 below shows total operational expenditure by Commerce Commission expenditure category. category. expenditure Commission Commerce by expenditure operational total shows 9.3.1.2 below Table Table 9.3.2.1 Total Network Operational Expenditure Forecast Expenditure Network Operational 9.3.2.1 Total Table Table 9.3.1.2 Total Operational Expenditure Forecast Forecast Expenditure Operational 9.3.1.2 Total Table 9.3.2 EXPENDITURE OPERATIONAL NETWORK
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2016 188 2016 | WEL ASSET MANAGEMENT PLAN 189 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,343 1,371 1,399 1,428 1,129 1,153 823 840 857 875 1,343 1,371 1,399 1,428 1,129 1,153 823 840 857 875 587 599 599 611 593 582 570 557 543 554 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,964 2,005 2,005 2,046 1,987 1,948 1,907 1,864 1,818 1,855 2,551 2,604 2,604 2,657 2,580 2,530 2,477 2,421 2,361 2,410 Total Distribution and LV lines Distribution and LV SIE OPERATIONAL EXPENDITURE ($000) VEGETATION VEGETATION OPERATIONAL EXPENDITURE ($000) High Voltage High Voltage Network Low Voltage Voltage Low Network Total Table 9.3.2.3 Total Vegetation Management Operational Expenditure Forecast Expenditure Management Operational Vegetation 9.3.2.3 Total Table VEGETATION MANAGEMENT VEGETATION period the AMP is summarised below. in the table over management vegetation Forecast SERVICE INTERRUPTION AND EMERGENCY MAINTENANCE (SIE) MAINTENANCE AND EMERGENCY INTERRUPTION SERVICE is summarised in the table below level voltage by expenditure of SIE maintenance breakdown The Table 9.3.2.2 Total Network Operational Expenditure Forecast Expenditure Network Operational 9.3.2.2 Total Table ------5111111111 12 10 10 11 11 11 11 12 12 12 351 304174 310 188 316 191 323 195266 330 174 254 336324 178 254 344 301 180 259230 351 307 184 267 225 358 312 188 270 230 323 192 275 263 327 283 274 333 289 275 343 295 249 350 258 357 264 269 139 120409 123 445 125 454 128 460258 130 373 247 133229 380 247 136 203 382 252253 139 207 393 259 253 142 210 401 263 258 220 409 268 274 222 275 283 225 281 286 233 287 280 238 288 243 294 300 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,414 1,341 1,363 1,416 1,435 1,455 1,450 1,491 1,521 1,552 1,346 1,3232,760 1,345 2,664 1,378 2,708 1,323 2,794 1,342 2,758 1,348 2,797 1,389 2,799 1,417 2,880 1,446 2,939 2,999 Distribution and LV Distribution and LV lines Distribution and LV cables Distribution andSubstations transformers Distribution switchgear Other xed system assets Other Assets Urban Subtransmission Substations Zone 58 59 60 61 63 64 65 67 Total Urban 68 70 Total Rural Rural Subtransmission Substations Zone Distribution and LV 53lines 54 Distribution and LV cables 55Distribution andSubstations 56transformers 58Distribution switchgear 60 Other xed system assets 60Other Assets 61 63 Total Grand 64 RCI OPERATIONAL RCI OPERATIONAL EXPENDITURE ($000) Table 9.3.2.4 Total Routine and Corrective Maintenance and Inspection Forecast and Expenditure Operational Maintenance Routine and Corrective 9.3.2.4 Total Table ROUTINE AND CORRECTIVE MAINTENANCE AND INSPECTION (RCI) AND MAINTENANCE AND CORRECTIVE ROUTINE network urban between and asset class is and rural expenditure of RCI operational breakdown The table. summarisedfollowing in the
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2016 190 2016 | WEL ASSET MANAGEMENT PLAN 191 556666666 ------48 36 35 36 37 38 38 39 40 41 12 56 58 57 45 71 63 86 93 94 43 18 17 18 19 19 19 20 20 20 96 198 206 204 172 246 225 288 309 314 23 20 19 20 20 20 21 21 22 22 50 483 506 495 388 623 552 751 816 828 32 84 88 87 73 105 96 123 132 134 96 109 113 112 99 131 123 150 160 163 190 392 406 404 349 478 443 552 590 599 313 296 281 287 293 321 328 334 341 348 783 1,067 1,074 1,080 990 1,250 1,195 1,400 1,475 1,501 286 255 246 251 256 276 282 288 294 300 135 138 133 147 141 144 147 150 153 156 631 1,093 1,109 1,117 983 1,305 1,226 1,489 1,582 1,609 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1,414 2,161 2,183 2,197 1,973 2,555 2,421 2,889 3,057 3,110 ARR OPERATIONAL EXPENDITURE ($000) Urban Subtransmission 81 72 70 74 76 77 79 81 82 84 Zone Substations Zone Distribution and lines LV Distribution and cables LV Distribution andSubstations transformers Distribution switchgear Other system assets xed Other Assets Urban Total Urban Rural Subtransmission 10 Zone Substations Zone Distribution and lines LV Distribution and cables LV Distribution andSubstations transformers Distribution switchgear Other system assets xed Other Assets Rural Total Rural Grand Total Grand ASSET REPLACEMENT AND RENEWAL (ARR) MAINTENANCE AND RENEWAL ASSET REPLACEMENT network urban between and asset class is and rural expenditure of ARR operational breakdown The summarisedtable below. in the Table 9.3.2.5 Total Asset Replacement and Renewal Operational Expenditure Forecast Expenditure Operational and Renewal Asset Replacement 9.3.2.5 Total Table 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 3,468 3,589 3,712 3,840 3,972 4,108 4,249 4,395 4,546 4,702 13,486 13,907 14,342 14,789 15,251 15,727 16,218 16,725 17,247 17,785 16,955 17,496 18,054 18,629 19,223 19,836 20,468 21,120 21,793 22,487 NON-NETWORK NON-NETWORK OPERATIONAL EXPENDITURE ($000) System operations operations System and network support Business support T o t a l The breakdown of non-network operational expenditure by Commerce Commission expenditure expenditure Commission Commerce by expenditure of non-network operational breakdown The in at relatively remains years the 10 over spend pro le The category is summarised below. in the table underlying in ation. by driven mainly with increases terms real Table 9.3.3 Total Non-Network Operational Expenditure Forecast Expenditure Non-Network Operational 9.3.3 Total Table 9.3.3 EXPENDITURE OPERATIONAL NON-NETWORK
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2016 192 APPENDICES GLOSSARY Electricity Distribution Business Electricity Networks Association Planning Resource Enterprise Electric Vehicle of nancing Cost Modes and E ects Analysis Failure Neutraliser Fault Ground Gas Insulated Switchgear System Information Geographic Asset Management Maturity Assessment Tool Management MaturityAsset Assessment Management Plan Asset Shedding Load Under Frequency Automatic Breaker Circuit Based Risk ManagementCondition Emergency Management Defence Civil Electricity Industry 2010 Code Participation of Failure Consequences Direct Current Gas Analysis Dissolved Distribution Management System RecoveryDisaster Centre Asset Health IndexAsset Insulated Switchgear Air All Aluminium Alloy Conductor Alloy Aluminium All Conductor Aluminium All Switch Break Air Current Alternating Reinforced Steel Conductor Aluminium EV CB AC DC AIS GIS AHI ERP CoF ABS EDB FDC ENA DRC AAC GFN DGA AMP DMS Code ACSR FMEA AAAC GeoIS CBRM CDEM AUFLS AMMAT ABBREVIATION DESCRIPTION APPENDIX A: APPENDIX
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2016 194 2016 | WEL ASSET MANAGEMENT PLAN 195 Personal Protective Equipment Protective Personal Post Contingent Demand Contingent Post Rating Contingent Post Discharge Partial De nition Document Project lead covered insulated, Paper of Failure Probability N system security means that the system is not able to tolerate the failure of any single of any the failure tolerate is not able to security the system N system means that in a loss of supply will result the network. in failure component Any single component of any the failure tolerate must be able to the system N-1 means that in the network without a ecting the supply of electricity Network Management System Net Value Present Overhead Lines Changer Tap On-Load Outage Management System Priority 1 Mega Volt Mega Volt Ampere Lost-time Injury RatesLost-time Frequency Voltage Low High Voltage Point Installation Control Technology Information High Impact Probability Low Gigawatt Hour Gigawatt Grid Exit Point Health Index N IT HI LV kV Kilovolts P1 PD HV kW Kilowatt OH ICP N-1 PoF PPE PCR MW Megawatt NPV GXP PCD PILC PDD HILP MVA NMS OMS GWh OLTC LTIFR ABBREVIATION DESCRIPTION Cross linked polyethene Cross Sweep Frequency Response Analysis Frequency Sweep Operator System Injury Recordable Rate Frequency Total WEL Trust Energy Assets Underground Load of Lost Value WEL Networks Ltd Utilities Group Lifelines Waikato Sulphur Hexa uoride Risk and Audit ManagementRisk Committee and Audit Analysis Root Cause Maintenance Reliability Centred Proposals Request for Ring Main Unit Unit Terminal Remote Index Interruption Duration Average System Index Interruption Frequency Average System and processes Applications Systems Supervisory Acquisition and Data Control 6 PV Photovoltaic SO SF UG RFP SAP RTU RCA WEL RCM RMU VoLL Trust SAIFI XLPE SFRA SAIDI TRIFR RAMC WLUG SCADA ABBREVIATION DESCRIPTION
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2016 196 2016 | WEL ASSET MANAGEMENT PLAN 197 CBRM – Knowledge of asset degradation is used to ‘age’ ‘age’ is used to and performance – Knowledge condition of asset degradation e future – the e ect of potential renewal, refurbishment refurbishment renewal, – the e ect of potential of PoF in terms interventions potential te refurbishment renewal, of risk – the e ect of potential in terms interventions potential te – ‘Health indices’ for individual assets are derived and built for di erent assets di erent and built for derived individual assets are for ‘Health indices’ – condition Asset the best 0 indicates 10, where on a scale of 0 to measured are health indices Current categories. and 10 the worst. condition probability relative against calibrated performance are to – Health indices condition Link current the matching by determined an asset class is for relationship / PoF health index The (PoF). of failure rate. failure with the recent pro le health index Estimat and on its initial health index an individual asset is dependent for ageing rate The health indices. pro les aged health index from can then be calculated rates failure Future conditions. operating relationship. / PoF de ned health index and the previously Evalua and pro les health index can then be modelled and the future regimes maintenance or changes to modi ed accordingly. rates failure and is de ned framework – a consistent (CoF) of failure consequences De ne and weigh network such as safety, categories in signi cant consequences evaluate to in order populated them relate to weighted are categories consequence The performance, nancial and environment. monetary relative ($) unit. common a to combined are of failure and consequence its probability an individual asset, Build risk model – For with an asset category risk summing the associated total is then obtained by The risk. quantify to risk of the individual assets. Evalua risk relative the potential quantify can be modelled to regimes maintenance or changes to strategies. with di erent reduction associated on the process a risk-based – Building and managing and process information and re ne Review results will deliver initial application The is not a one-o basis of asset speci c information process. that opportunities identify ongoing improvement for crucially, and, information based on available framework. information asset build an improved progressively can be used to 1. 2. 3. 4. 5. 6. 7. 8. APPENDIX B: APPENDIX DEFINE ASSET CONDITION of each asset of the condition a numeric representation derive is to rst stage in the CBRM process The its age, to relate that information the AHI is a means of combining of an AHI. Essentially, in the form comparable give and performance to as speci c condition information as well risk and duty, environment, and PoF. end of life to of proximity assets in terms individual for of condition measure CBRM is a methodology for establishing the optimum level of renewals developed by EA Technology, a UK Technology, EA by developed of renewals level establishing the optimum for CBRM is a methodology electricity methodology assists The e ective deliver distribution to businesses consultancy. based energy risk management. asset related knowledge engineering and practical asset information, combines that structuredCBRM is a process performance condition, and risk future of network assets. estimate to experience can be summarised as follows: CBRM process The It the speci c characteristics is important address enough to the methodology is exible emphasise that to of the CBRM the key components approach we each category How for of assets. context and operational is described below. process
High Medium Low Very low PROBABILITY OF FAILURE 10
signi cant increase in PoF in increase signi cant
erioration, det Serious
5.5
increase in PoF in increase
At EOL (<5 years) 5-10 years 10-20 years >20 years REMNANT LIFE Signi cant deterioration, small deterioration, Signi cant HEALTH INDEX lim HI lim
HI PoF in increase signi cant
INDEX HEALTH Measurable deterioration but no no but deterioration Measurable
0 0
(in the range 4 to 7) - represent signi cant deterioration, with degradation processes processes with degradation deterioration, signi cant 7) - represent 4 to (in the range (in the range >7) - represent serious deterioration; i.e. advanced degradation processes processes degradation advanced i.e. serious deterioration; >7) - represent (in the range PoF constant up to constant up PoF (in the range 0 to 4) - represent some observable an early at or detectable 4) - represent deterioration 0 to (in the range
0 alues (PoF) FAILURE OF PROBABILITY RELATIONSHIP BETWEEN AHI AND POF Poor Fair Good 1 Bad CONDITION Low v a new asset and one that between the di erence i.e. as normal ageing, be considered may This stage. remains Inhas been in service the PoF some time but is still in good condition. such a condition, for some time. for change signi cantly not be expected to would very and PoF and the condition low Medium values In this condition, failure. threaten potentially that processes normal ageing to starting from move to the PoF, although still low, is just starting of further is increasing. rise and the rate to degradation although still low, the PoF, High values is signi cantly In the PoF condition this failure. they actually that the point threaten reaching now rapid. of further will be relatively higher and the rate degradation
Figure B.2 Relationship between AHI and PoF B.2 Figure CONDITION RELATED PROBABILITY OF FAILURE (POF) OF FAILURE PROBABILITY CONDITION RELATED PoF. related important the AHI and the condition between second in CBRM is that The relationship B.2. (solid line) in Figure schematically is shown relationship This • • Figure B.1 CBRM Health Indices B.1 Figure as follows: the extent of degradation AHI represents The • re ecting the di erent category, each asset for is inevitably di erent detail of the AHI formulation The of degradation. rates and the di erent information Figure B.1 below illustrates the AHI. illustrates below B.1 Figure
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2016 198 2016 | WEL ASSET MANAGEMENT PLAN 199
lost 6 Volume of oil spilled Volume of SF Volume Potential loss of system availability loss of system Potential Number of fatalities Number of major injuries Number of minor injuries Money ($) Number of res with signi cant smoke / pollution with signi cant Number of res created of waste Volume Scale of disturbance (tra c / noise)Scale (tra c of disturbance
CONSEQUENCE UNITS • • • • • • • • • • e B.3 Consequences Categories and their Units Categories Consequences e B.3 the probability / likelihood of an event occurring; and / likelihood of an event the probability occurs. / impacts consequences if the event the resulting within the planning period assumes no investment – this scenario “Do nothing” investment year’s the current shows – this scenario “Current” Environmental impact Environmental CONSEQUENCE CATEGORY Network performance Safety / replacement) of repairs cost (e.g. Financial
RISK de ned as and is generally of uncertainty on objectives’ ‘e ect Risk can be described as the CRITICALITY will vary with an event depending on factors associated such as the severity of the consequences The of the asset for the accessibility the fault, by load interrupted the potential of the asset, location physical it is of a fault or failure, signi cance the relative estimate to In order of replacement. and the cost repair been has This necessary category. each consequence establish the criticality to of an individual asset for factors category the signi cant initially identifying and consequence by each asset group for achieved or bands. and then de ning the factors using a number of levels criticality, a ect the relative that of the parameter weighting CBRM criticality based on the relative determined factor are Within values the average. to compared of:the combination • • risk Di erent each individual asset category. for a risk CBRM models is analysis from outcome The included: considered scenarios The period. the AMP over scenarios renewal di erent arise from outcomes • • ASSET END OF LIFE for a basis all asset types provides for the initial de nition of condition scale for a consistent Adopting can be end of life In CBRM terminology, de ning end of life. and a basis for the AHI values calibrating unacceptable. becomes of failure probability related de ned as when the condition CONSEQUENCES the key capture categories Four and the CoF. is a function asset of the PoF with any risk associated The with their together B.3 in Figure shown are These a ect all distribution businesses. that CoF (quanti able) units of measurement. The relationship between the AHI and the PoF is non-linear. Under normal conditions, an asset can Under normal conditions, is non-linear. PoF the AHI and the between relationship The the once Conversely, with very degradation little e ect on the risk failure. of signi cant accommodate increases. rapidly the risk of failure or widespread, signi cant becomes degradation Figur
– this scenario simulates that year-10 (Y10) year-10 that simulates the in – this scenario maintained risks are ease” scenario generally demonstrates the level of risks involved per asset category of risks involved the level demonstrates generally scenario “Do nothing” ’s investment ’s – this scenario shows optimum investment using CBRM outcomes with the current with the current outcomes using CBRM optimum investment “Re-prioritised” shows – this scenario year No risk incr “Higher spend, current year’s (Y0) requirement with higher investment level year’s current the get the risks to to maximum investment assume – this scenario Minimum risks” “Highest spend, 10. in year minimum level
• • • asset each individual for is identi ed programme the optimal renewal above, the scenarios Using The category. priority. of investment level on the required a good indication and provides to aggregated are programmes mitigation Individual with their corresponding asset risk pro les category. an asset for risk pro le the overall determine
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REF Plan SummaryPlan 2.1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 2.1.3 2.1.3 2.1.3 2.1.3 4.1.1 2.1 The AMP must include a summary AMP a brief overviewThe provides that the EDB that information and highlights contents of the AMP signi cant. considers The AMP must include details of the background and objectives must include details of the background AMP The and planning processes management asset of the EDB’s The AMP must include a purpose statement that: must include a purpose AMP statement The asset Makes EDB’s in the clear the purpose of the AMP and status must also include purpose statement The practices. management and of the objectives of the asset management a statement planning processes States the corporate mission or vision as it relates to asset to mission or vision as it relates the corporate States management. Identi es the documented plans produced as outputs of the plans produced the documented Identi es annual business planning process. States how the di erent documented plans relate to one another to plans relate documented the di erent how States plans speci cally dealing with asset any to with speci c reference management. Includes a description the objectives between of the interaction of business planning processes goals, and other corporate the AMP and plans. The AMP must state that the period covered by the plan is 10 by the period covered that must state AMP The of the nancial year. the commencement from or more years The AMP must state the date on which the AMP was approved by by approved was on which the AMP the date must state AMP The of Directors. the Board The AMP must include a description of stakeholder interests must include a description of stakeholder interests AMP The important which identi es etc) consumers stakeholders (owners, and indicates: The AMP must include a description of how the interests of the interests must include a description of how AMP The identi ed. stakeholders are The AMP must include a description of what these interests are. must include a description these interests of what AMP The The AMP must include a description of how these interests are are these interests must include a description of how AMP The practices. in asset management accommodated The AMP must include a description of how con icting interests con ictingmust include a description of how AMP interests The managed. are The AMP must include a description of the accountabilities and must include a description of the accountabilities AMP The levels, least three on at asset management for responsibilities including: REFERENCE REQUIREMENT Summary 3.1 Background and Objectives Background 3.2 Purpose Statement Purpose 3.3 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 AMP Period 3.4 3.5 Stakeholder Interests Stakeholder 3.6 3.6.1 3.6.2 3.6.3 3.6.4 Accountabilities and Responsibilities Accountabilities 3.7 DISCLOSURE COMPLIANCE DISCLOSURE INFORMATION INFORMATION C: APPENDIX
REF 2.1.4 2.1.4 2.1.4; 5.3.1; 5.3.2 7.1.1; 8.2.1; 8.3.2; 9.1.2 7.1.1; 8.2.1 8.3.2; 9.1.2 7.1.1; 8.2.1; 8.3.2; 9.1.2 7.2; 9.1 9.1 7.2.1; 9.1.2 4.2 3.9.4 8.2.6; 8.4 6.3; 6.6 4.2 Governance—a description of the extent of director approval Governance—a description approval of director of the extent and the extent to decisions key asset management for required reported regularly to are outcomes which asset management directors. Executive—an indication of how the in-house asset management the in-house of how Executive—an indication structured. is and planning organisation Field operations—an overview of how eld operations are are overview eld operations of how operations—an Field which eld including a description of the extent to managed, is undertaken outsourced work where areas in-house and the used. are contractors The AMP must include all signi cant assumptions. must include all signi cant AMP The All signi cant assumptions must be quanti ed where possible. where assumptions must be quanti ed signi cant All All signi cant assumptions must be clearly identi ed in a manner assumptions must be clearly identi ed signi cant All interested understandable to makes their signi cance that persons. The identi cation of signi cant assumptions must include a of signi cant identi cation The is not the information where description of changes proposed business. existing based on the EDB’s assumptions must include a of signi cant identi cation The of uncertaintydescription e ect of the sources and the potential of the uncertainty information. on the prospective The identi cation of signi cant assumptions must include a of signi cant identi cation The the prepare used to assumptions description in ator of the price dollars Zealand disclosed in nominal New nancial information set out in Schedule Expenditure Capital in the Report on Forecast set out in Expenditure Operational 11a and the Report on Forecast Schedule 11b. The AMP must include a description of the factors that may leadmust include a description of the factors AMP may The that information the prospective between di erence a material to in recorded actualdisclosed and the corresponding information disclosures. future The AMP must include an overview of asset management strategy must include an overview strategy AMP of asset management The and delivery. The AMP must include an overview of systems and information and information must include an overview AMP of systems The data management The AMP must include a statement covering any limitations in limitations any covering must include a statement AMP The and data of asset management or completeness the availability the quality of this improve to intended initiatives disclose any data. The AMP must include a description of the processes used within the EDB for: must include a description of the processes AMP The asset inspectionsManaging routine and network maintenance. 8.1; 8.2; 8.4 Planning and implementing network development projects. network development and implementing Planning 5.1; 5.2; 5.3 Measuring network performance. The AMP must include an overview AMP of asset management The processes. and review controls documentation, REFERENCE REQUIREMENT 3.7.1 3.7.2 3.7.3 Assumptions 3.8 3.8.1 3.8.2 3.8.3 3.8.4 3.8.5 Material Di erence in Information in Di erence Material 3.9 Asset Management Strategy and Delivery Strategy Management Asset 3.10 Systems and Information Management Data Management and Information Systems 3.11 3.12 Asset Management Processes Management Asset 3.13 3.13.1 3.13.2 3.13.3 3.14
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REF 4.4 9.1.2 Throughout the Throughout document 2.3.1 2.3.1 2.2.2 2.2.3 2.2.3 2.2.3 2.3.1; 7.2 2.3.1 2.3.1; 3.5 2.3.1; 3.1; 3.5 3.8; 3.9 No sub-networks meet that exist threshold disclosure in de nitions 3.2 - 3.10
The AMP must include an overview of communication and must include an overview AMP of communication The participation processes. The AMP must present all nancial values in constant price in constant values all nancial must present AMP The speci ed otherwise. where dollars except New Zealand The AMP must be structured and presented in a way that the EDB that in a way must be structured and presented AMP The will supportconsiders set out in the purposes disclosure of AMP clause 2.6.2 of the determination. The AMP must provide details of the assets covered, including: details of the assets covered, must provide AMP The the EDB by description of the serviceA high-level covered areas including: interlinked, which these are to and the degree The region(s) covered. region(s) The Identi cation of large consumers that have a signi cant impact a signi cant on have that consumers of large Identi cation priorities. management or asset network operations A description of the load characteristics for di erent parts of the di erent A description of the load characteristics for network. Peak demand and total energy delivered in the previous year, year, in the previous delivered energy and total demand Peak sub-network, by down broken if any. The AMP must provide a description of the network con guration, including: a description of the network con guration, must provide AMP The bulk electricityIdentifying distributed and any supply points the existing State than 1 MW. with a capacity greater generation rm peak load of each bulk electricity supply capacity and current supply point. A description of the subtransmission system fed from the from fed system A description of the subtransmission bulk electricity including the capacity of zone supply points, network(s). of the subtransmission and the voltage(s) substations individual at the supply securitymust identify AMP provided The which each has n-x describing the extent to by substations, zone security class alternative securitysubtransmission providing or by ratings. A description of the distribution system, including the extent to including the extent to A description of the distribution system, which it is underground. A brief description of the network’s distribution substation A brief description of the network’s arrangements. A description of the low voltage network including the extent to voltage A description of the low which it is underground. An overview of secondary assets such as protection relays, ripple overviewAn of secondary relays, assets such as protection systems. and telecommunications SCADA injection systems, If information sub-networks the network con guration exist, each must be disclosed for in subclause 4.2 above to referred sub-network. The AMP must describe the network assets by providing the following information for for information the following must describe providing the network AMP assets by The each asset category by- levels. Voltage vered REFERENCE REQUIREMENT Communication Processes Communication 3.15 Financial Values Financial 3.16 Disclosure Requirements Disclosure 3.17 Assets co Assets 4 4.1 4.1.1 4.1.2 4.1.3 4.1.4 Network Con guration Network 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 Sub-networks 4.3 Network Asset Information Asset Network 4.4 4.4.1 REF 3.2 – 3.10 3.2 – 3.10 3.2 – 3.10 3.2 – 3.10 3.10 3.9.1 3.9.1 6.2 – 6.5 6.3.3 6.3.3 6.4; 6.5 4.1; 6.1; 6.6 6.6 6.3.3 ; 8.4.10; 8.4.11 Description and quantity of assets. Age pro le. Age A discussion of the condition of the assets, further of the assets, down A discussion of the condition broken Systemic appropriate. as considered detailed categories more into of assets or parts replacement of the premature issues leading to assets should be discussed. The asset categories discussed in subclause 4.4 above should include at least the include at should in subclause 4.4 above discussed asset categories The asset categories: following Capital in the Report listed categories The on Forecast in Schedule 11a (iii) Expenditure Assets owned by the EDB but installed at bulk electricity the EDB but installed at by owned Assets supply others by owned points EDB owned mobile substations and generators whose function whose is and generators mobile substations EDB owned peak demand or reduce supply reliability increase to Other generation owned by the EDB. Other by owned generation The AMP must clearly or de ne a set of performance AMP identify The been annual performance which have for targets indicators with annual performance must be consistent The targets de ned. objectives and be and asset management business strategies targets The planning period. of the AMP each year for provided the current is practicallyshould re ect what given achievable levels. and planned expenditure condition network con guration, planning of the AMP each year should be disclosed for targets The period. The AMP must include performance indicators for which targets which targets must include performance AMP for The indicators must include SAIDI and SAIFI been de ned in clause 5 above have years. the next disclosure ve for values The AMP must include performance indicators for which targets which targets must include performance AMP for The indicators should also include: been de ned in clause 5 above have di erentiate preferably that indicators oriented Consumer types. consumer di erent between Indicators of asset performance, asset e ciency and e ectiveness, and nancial performance such as technical and service e ciency, the e ciency to and of asset utilisation related indicators operation. The AMP must describe the basis on which the target level level must describe the basis on which the target AMP The Justi cation each performance determined. was for indicator of service levels expectations target includes consumer for and other stakeholders’ regulatory, legislative, or demands, should demonstrate AMP The or considerations. requirements ascertained into and translated were stakeholder needs how service targets. level Targets should be compared to historic values where available to to available where values historic to should be compared Targets the reader. and scale to context provide Where forecast expenditure is expected to materially a ect materially is expected to expenditure forecast Where the target performance de ned in clause 5 above, against a target of with the expectedthe level change in should be consistent performance. REFERENCE REQUIREMENT 4.4.2 4.4.3 4.4.4 Network Asset Information by Asset Category Asset by Information Asset Network 4.5 4.5.1 4.5.2 4.5.3 4.5.4 5 Service Levels 6 7 7.1 7.2 8 9 10
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2016 204 2016 | WEL ASSET MANAGEMENT PLAN 205 REF 7.1 7.1 5.3.2 5.3.2 7.1.3 7.1.3 5.1; 5.2 7.2 - 7.6 7.2.1 7.2.1 – 7.2.3 7.4 - 7.6 7.1.4 7.4 - 7.6 7.1 7.4 -7.6 AMPs must provide a detailed description of network must provide AMPs including— plans, development A description of the planning criteriaassumptions for and network development. Planning criteria for network developments should be described network developments criteria for Planning or scenario-based probabilistic Where and succinctly. logically and the this should be indicated used, are planning techniques methodology brie y described. A description of strategies or processes (if any) used by the used by (if any) or processes A description of strategies e ciency cost the use of including through promote EDB that assets and designs. standardised The use of standardised designs designs use of standardised The A description of strategies or processes (if any) used by the EDB used by (if any) or processes A description of strategies of the network. operation e cient the energy promote that A description of the criteria used to determine the capacity determine A description of the criteria used to of parts types of the of assets or di erent di erent for equipment network. A description of the process and criteria used to prioritise and criteria used to networkA description of the process and criteria align these processes projects and how development and vision. goals corporate with the overall The AMP must provide details of demand forecasts, the basis on details of demand forecasts, must provide AMP The where and the speci c network locations derived, which they are in demand. increases forecast expected due to are constraints The AMP must explain the load forecasting methodology and the load forecasting must explain AMP The factors all the the load estimates. used in preparing indicate The AMP must provide separate forecasts to at least the zone least the zone at to forecasts separate must provide AMP The forecast year least a minimum ve at covering level substation uncertain Discuss how period. individual projects/ but substantial in the account taken into a ect load are that developments making which these uncertain clear the extent to forecasts, in the forecasts. re ected in demand are increases The AMP must identify any network or equipment constraints that constraints network or equipment any must identify AMP The during in demand the growth the anticipated arise due to may planning period. AMP The AMP must discuss the impact on the load forecasts of any of any must discuss the impact AMP The on the load forecasts in a network, generation of distributed and the levels anticipated initiatives. impact demand management projected of any The AMP must provide analysis of the signi cant network level network level of the signi cant analysis must provide AMP The and details of the decisions made options identi ed development of service, including: levels and meet target satisfy to The reasons for choosing a selected option for projects where projects where choosing a selected option for for reasons The been made. decisions have The alternative options considered for projects that are planned are projects that for options considered alternative The non-network start for to and the potential in the next years ve solutions described. REFERENCE REQUIREMENT Network Development Planning Development Network 11 11.1 11.2 11.3 11.4 Network E cient Operation E cient Network 11.5 Equipment Capacity Equipment 11.6 Project Prioritisation Project 11.7 Demand Forecasts 11.8 11.8.1 11.8.2 11.8.3 11.8.4 Network Development Options Development Network 11.9 11.9.1 11.9.2 REF 6.5.2 7.4 - 7.6 7.4 - 7.6 7.4 - 7.6 7.4 - 7.6 7.1.4 7.1 7.1 5.1.2; 7.1 8.2 8.4 8.4 8.4 8.4
The consideration of planned innovations that improve improve that of planned innovations consideration The utilisation, network,e ciencies within the as improved such investment. and deferred extended asset lives, A description and identi cation of the network development of the network development A description and identi cation and non-network generation including distributed programme solutions and actions be taken, including associated to plan must network development The projections. expenditure include- A detailed description of the material projectsA detailed description a summary and of the material underway projectsdescription currently of the non-material or startplanned to within the next 12 months. A summaryprojects and planned description of the programmes known). (where years four the following for An overview of the material projects being considered for the for overview projectsAn being considered material of the planning period. the AMP of remainder A description of the EDB’s policies on distributed generation, generation, on distributed policies A description of the EDB’s connecting generation. distributed including the policies for The impact of such generation on network development plans impact on networkThe development of such generation must also be stated. A description of the EDB’s policies on non-network solutions, on non-network policies solutions, A description of the EDB’s including- Economically feasible and practical alternatives to conventional conventional to and practical alternatives feasible Economically would that typically approaches are These network augmentation. asset utilisation. network demand and/or improve reduce The potential for non-network solutions to address network address non-network solutions to for potential The constraints. or problems The AMP must provide a detailed description of the lifecycle asset management a detailed description of the lifecycle must provide AMP The including: processes, assumptions. planning and maintenance for key drivers The Identi cation of routine and corrective maintenance and maintenance and corrective of routine Identi cation and actions be taken for inspection to policies and programmes projections. expenditure including associated each asset category, must include-This The approach to inspecting to each category and maintaining approach The of a description including of the typesassets, of inspections, tests carried monitoring and condition out and the intervals which at this is done. Any systemic problems identi ed with any particular with any identi ed asset types problems systemic Any these problems. actions address and the proposed to Budgets for maintenance activities broken down by asset by activities down broken maintenance Budgets for planning period. category the AMP for REFERENCE REQUIREMENT 11.9.3 Network Development Programme Development Network 11.10 11.10.1 11.10.2 11.10.3 Distributed Generation Distributed 11.11 Non-network solutions Non-network 11.12 11.12.1 11.12.2 Lifecycle Asset Management Planning (Maintenance and Renewals) Planning (Maintenance Management Asset Lifecycle 12 12.1 Maintenance Programme Maintenance 12.2 12.2.1 12.2.2 12.2.3
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2016 206 2016 | WEL ASSET MANAGEMENT PLAN 207 REF 8 5.1.1; 8; CBRM Appendix 5.1.1; 8; CBRM Appendix 8.4 8.4 8.4 8.4 3.9 7.8.1 7.8.3 7.8.1 4.3 4.3.6 4.3.6 4.3.7 6.6 2.1.2; 4.4.4
Identi cation of asset replacement and renewal policies and and renewal of asset replacement Identi cation each asset category, and actions be taken for to programmes must include-This projections. expenditure including associated The processes used to decide when and whether an asset is used to processes The including a description of the factors on or refurbished, replaced demands of future and consideration based, which decisions are networkon the network use of existing assets. and the optimum A description of innovations made that have deferred asset deferred have that made A description of innovations replacement. A description of the projects currently underwayA description of the projects currently for or planned the next 12 months. A summary of the projects planned for the following four years years four A summary the following of the projects planned for known).(where An overview of other work being considered for the remainder of the remainder for overview being considered An work of other planning period. the AMP The asset categories discussed in subclauses 12.2 and 12.3 above and 12.3 above discussed in subclauses 12.2 asset categories The in subclause 4.5 above. least the categories should include at AMPs must provide a summary must provide non- description of material AMPs plans, renewal and maintenance network development, including— A description of non-network assets. Development, maintenance and renewal policies that cover them. cover policies that and renewal maintenance Development, A description of material capital expenditure projects (where projects (where capital expenditure A description of material the next years. known) ve planned for A description of material maintenance and renewal projects and renewal maintenance A description of material years. the next known) ve (where planned for AMPs must provide details of risk policies, assessment, and mitigation, including: and mitigation, assessment, details of risk policies, must provide AMPs of risk analysis. details and conclusions Methods, Strategies used to identify areas of the network that are vulnerable are of the network that areas identify to used Strategies and a description of the high impact events to probability low such to systems of the network and asset management resilience events. A description of the policies to mitigate or manage the risks or manage of mitigate A description of the policies to in subclause 14.2. identi ed events Details of emergency and contingency plans. response AMPs must provide details of performance measurement, evaluation, and improvement, and improvement, evaluation, details of performance measurement, must provide AMPs including: and nancial. against plan, both physical of progress A review 6.6; 7.1.5; 8.1 An evaluation and comparison of actual and comparison evaluation An service performance level performance. against targeted An evaluation and comparison of the results of the asset of the results and comparison evaluation An maturitymanagement disclosed in the Report assessment on Management MaturityAsset in Schedule set out 13 against and asset management objectives of the EDB’s relevant planning processes. REFERENCE REQUIREMENT Renewal Programme Renewal 12.3 12.3.1 12.3.2 12.3.3 12.3.4 12.3.5 12.4 Non-network Development, Maintenance and Renewal Maintenance Development, Non-network 13 13.1 13.2 13.3 13.4 Risk Management 14 14.1 14.2 14.3 14.4 Evaluation of Performance Evaluation 15 15.1 15.2 15.3 REF 6.6 Throughout the Throughout document 2.1.4 An analysis of gaps identi ed in subclauses 15.2 and 15.3 above. in subclauses 15.2 and 15.3 above. of gaps identi ed analysis An one-o (not caused by gaps exist signi cant Where factors), the address to planned initiatives describe must any the AMP situation. AMPs must describe the processes used by the EDB to ensure that: ensure the EDB to used by must describe the processes AMPs the objectives and set out in the plan can be is realistic AMP The achieved. The organisation structure and the processes for authorisation for structure and the processes organisation The will supportand business capabilities of the the implementation plans. AMP REFERENCE REQUIREMENT 15.4 Capability to Deliver to Capability 16 16.1 16.2
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2016 208 2016 | WEL ASSET MANAGEMENT PLAN 209 REPORT ON FORECAST CAPITAL EXPENDITURE CAPITAL REPORT ON FORECAST INFORMATION INFORMATION D: APPENDIX SCHEDULES DISCLOSURE
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213 REPORT ON FORECAST OPERATIONAL EXPENDITURE OPERATIONAL FORECAST ON REPORT REPORT ON ASSET CONDITION ASSET ON REPORT
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22 March 2016 22 March ate D being directors of WEL Networks Limited certifyWEL Networks Limited having that, of being directors
DAVID WRIGHT WRIGHT DAVID and 22 March 2016 22 March MARK FRANKLIN MARK the following attached information of WEL Networks Limited prepared for the purposes of clause for prepared WEL Networks Limited of information attached the following 2.6.1 and 2.6.5(3) of the Electricity respects 2012 in all material Determination Disclosure Information and determination; with that complies has been information included in the attached or non- nancial information nancial the prospective industry or recognised standards. with regulatory requirements on a basis consistent measured te
Da DIRECTOR DIRECTOR b) made all reasonable enquiry, to the best of our knowledge to - enquiry, made all reasonable a) We, CERTIFICATE FOR YEAR-BEGINNING DISCLOSURES YEAR-BEGINNING FOR CERTIFICATE clause 2.9.1 of Section to 2.9 Pursuant APPENDIX E: E: APPENDIX DIRECTOR CERTIFICATION
WEL.CO.NZ BEST IN SERVICE, BEST IN SAFETY BEST IN SERVICE,
2016 | WEL ASSET MANAGEMENT PLAN