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Gas Distribution Asset Management Plan 2016 – 2026

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Gas Distribution Asset Management Plan 2016 – 2026 Gas Distribution Asset Management Plan 2016 – 2026 Vector Limited Table of Contents, Page 1 of 4 Gas Distribution Asset Management Plan 2016-2026 Table of Contents (Note that each section is individually numbered) SECTION 1 1. EXECUTIVE SUMMARY ......................................................................... 2 SECTION 2 2. BACKGROUND AND OBJECTIVES ......................................................... 3 2.1 Introduction .......................................................................................... 3 2.2 Asset Management Strategy .................................................................... 3 2.3 Org Structure and Responsibilities ........................................................... 9 2.4 Stakeholder Interests ............................................................................ 17 2.5 Asset Management Maturity ................................................................... 21 2.6 Significant Assumptions ......................................................................... 21 SECTION 3 3 ASSETS COVERED BY THIS PLAN ........................................................ 4 3.1 Distribution Area ................................................................................... 4 3.2 Key Features ......................................................................................... 5 3.3 Load Characteristics ............................................................................... 5 3.4 Distribution System Design ..................................................................... 8 3.5 Network Configuration ............................................................................ 8 3.6 Distribution Systems ............................................................................. 10 3.7 Justification of Assets ............................................................................ 12 3.8 Gas Distribution Maps ........................................................................... 15 Vector Limited Table of Contents, Page 2 of 4 Gas Distribution Asset Management Plan 2016-2026 SECTION 4 4 SERVICE LEVELS ................................................................................. 4 4.1 Customer Experience ............................................................................. 4 4.2 Health and Safety .................................................................................. 7 4.3 Environment ......................................................................................... 8 4.4 Supply Reliability ................................................................................... 9 4.5 System Condition and Integrity .............................................................. 11 4.6 Works Performance Measures ................................................................. 14 4.7 Process for Recording Reactive Fault Information ...................................... 15 SECTION 5 5 NETWORK DEVELOPMENT PLANNING ................................................. 4 5.1 Network Planning Process ....................................................................... 4 5.2 Planning Criteria and Assumptions ........................................................... 4 5.3 Planning Methodology ............................................................................ 6 5.4 Network and Asset Capacity .................................................................... 7 5.5 Demand Forecasting Methodology ............................................................ 8 5.6 Network Monitoring ............................................................................... 12 5.7 Network Modelling ................................................................................ 12 5.8 Network Development Efficiencies ........................................................... 12 5.9 Standardised Assets and Designs ............................................................ 13 5.10 Project Prioritisation .............................................................................. 14 5.11 Network Development Programme .......................................................... 15 5.12 Long-term Development Plans ................................................................ 26 5.13 Significant Variances from Previous AMPs ................................................ 28 SECTION 6 6 LIFECYCLE ASSET MANAGEMENT (MAINTENANCE AND RENEWAL) ..... 4 6.1 Overview .............................................................................................. 6 6.2 Maintenance Planning Processes, Policies and Criteria ................................ 6 6.3 Asset Integrity Activities ........................................................................ 10 6.4 Significant Variances from Previous AMPs ................................................ 38 Vector Limited Table of Contents, Page 3 of 4 Gas Distribution Asset Management Plan 2016-2026 SECTION 7 7. NON-NETWORK ASSETS ...................................................................... 4 7.1 IT Technical Reference Architecture ......................................................... 4 7.2 Information Systems .............................................................................. 4 7.3 Information and Data ............................................................................. 7 7.4 Information Systems Planning ................................................................. 8 7.5 Core Network Related Systems Planning ................................................... 9 7.6 Supporting Network Related Systems Planning ......................................... 10 7.7 Supporting IT Infrastructure Systems ...................................................... 11 SECTION 8 8 RISK MANAGEMENT ............................................................................ 3 8.1 Enterprise Risk Management ................................................................... 3 8.2 Emergency Response and Contingency Plans ............................................. 5 SECTION 9 9 FINANCIAL PERFORMANCE AND FORECASTS ...................................... 3 9.1 Capital Expenditure ................................................................................ 3 9.2 Operational Expenditure Forecast ............................................................ 6 9.3 Price Escalation Factors .......................................................................... 8 APPENDICES Vector Limited Table of Contents, Page 4 of 4 Gas Distribution Asset Management Plan 2016-2026 Gas Distribution Asset Management Plan 2016 – 2026 Executive Summary Summary of the Asset Management Plan Vector’s strategic vision is to: “Create a new energy future” with a focus on five strategic pillars: SUSTAINABLE GROWTH CUSTOMER FOCUS OPERATIONAL EXCELLENCE PARTNERSHIPS SAFETY, PEOPLE AND CULTURE This Asset Management Plan (AMP) supports achieving Vector’s vision. Purpose of the Plan The purpose of this AMP is to comply with the requirements set out in the Commerce Commission’s Gas Distribution Information Disclosure Determination (Determination). It covers a ten year planning period starting from 1st July 2016. The AMP accurately represents asset management practices at Vector as well as the forecasted ten year capital and maintenance expenditure on the Vector gas distribution network. The objectives of the AMP are to: Inform stakeholders about how Vector intends to manage its gas distribution network based on information available at preparation; Demonstrate alignment between gas network asset management and Vector’s vision and goals; Demonstrate that safe asset management processes are in place; Provide visibility of effective life cycle asset management at Vector; Provide visibility of the level of performance of the network; Provide guidance of asset management activities to its staff and field service providers (FSPs); Provide visibility of forecast gas network investment programmes and forecast medium-term construction activities to external users of the AMP; Demonstrate innovation and efficiency improvements; Discuss the impact of regulatory settings on future investment decisions; Discuss expected technology and consumer developments and the asset investment strategies to deal with a changing environment; and Meet Vector’s regulatory obligations under the aforementioned Determination. From an asset manager perspective the AMP: Analyses customer trends and expectations; Supports continued efficient improvement in Vector’s performance; Vector Limited Section 1, Page 2 of 12 Gas Distribution Asset Management Plan 2016-2026 Is essential to Vector’s goal to continually improve its asset management practices; and Will help the Vector Group achieve its overarching vision. Business Operating Environment Qualification This AMP represents Vector’s current and best view of the ongoing investment, maintenance and operational requirements of its gas network, in the current operating environment. Vector follows an annual budget process and the implementation of the works programmes may be modified to reflect any changing operational and economic conditions as they exist or are foreseen at the time of finalising the budget, or to accommodate changes in regulatory or customer requirements that may occur from time to time. Any expenditure must be approved through normal internal governance procedures. This AMP does therefore not commit Vector to any of the individual projects or initiatives or the defined timelines described in the plan. Regulatory Factors Vector’s gas distribution network is subject
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