Here for you ANNUAL DELIVERY REPORT 2020

Valley: You’ll find us here Coromandel to South Waikato Here for you Bay of Plenty: Tauranga & Mt Maunganui

Powerco keeps the lights on for you and around 900,000 customers, across 340,000 homes, businesses and organisations in the Powerco is part of your community. North Island. We are here for you. When power supply is interrupted, our team responds quickly so you can get on with your life.

You buy electricity from your retailer, and we You’ll find us out and about in your look after the network lines that get it to you, community, working for you. safely and efficiently.

Taranaki

Whanganui & Rangitikei

Manawatu

Wairarapa

1 2 POLES CONDUCTOR 4,073 poles replaced or reinforced 183km of overhead lines replaced

Up on year Up on year 13% before 35% before VEGETATION MANAGEMENT Year Two Over 11,000 tree sites managed Up on year 44% before We have been busy improving the network while minimising the OUTAGES RENEWALS & GROWTH INVESTMENT impact on you. Number and length of Network renewal & growth over the last 2 years outages were down compared with last year $285m COMPLAINTS POWER Down 15% compared with last year We kept the electricity on 99.95% of the time 15% 99.95%

3 4 Powerco has one of the largest This does mean an increase in planned power electricity distribution networks outages in the short-term. You have said that if we communicate well with you around these in New Zealand. We are actively Working & outages, your disruption is minimised. We preparing for the future, so we can want this too, and we’ll continue to listen and keep you connected with the best act on your feedback to keep improving. quality service and technology. The Powerco team is focused on meeting investing for you The Commerce Commission regulates your expectations. We’re working with the us and sets the rules we follow, through a Commerce Commission so we can ensure the Customised Price-quality Path (CPP). This regulations don’t unduly impact on our ability guides the price you pay and the reliability of to provide you with long-term reliability. the power you receive. We report on our progress towards our overall In April 2018, we began our five-year CPP delivery goals to you, our customers, the investment programme of work worth $1.27b. Commission and interested parties, each year This will ensure our network remains resilient of the five-year investment period. Read on and we can allow for growth and prepare for to see how we delivered in our second year, your future needs. We have an ambitious plan CPP - Year Two (1 April 2019 to 31 March that includes 17 major network development 2020). projects.

The Powerco team works for you to: The regulations mean we need to balance two key goals - delivering on our investment programme to provide you with a safe, reliable network in the long-term, and minimising Ensure safe, secure and resilient networks power outages in the short-term.

We’re investing in asset renewal, maintenance and vegetation Balancing these is a continual challenge. management to improve our networks and their reliability. We adapt our plans, innovate to deliver efficiencies, reflect your preferences, and meet the rules.

For instance, this year we focused on Support growth in your community minimising the number and frequency of your power outages to meet the regulated We’re building new and upgraded assets so we can supply the increasing reliability standards. We achieved this demand for electricity coming from population growth and more commercial through improved and new ways of working. and industrial activity. However, it meant we did not fully meet all our investment programme expenditure targets.

We remain committed to successfully delivering our CPP investment plan. We know Enable your energy choices that you, our customers, have said you want We’re evolving our network to provide for new technologies such as us to keep driving ahead with our work to electric vehicles and solar generation, and respond to the challenges of improve long-term reliability. digitalisation, decentralisation and decarbonisation.

5 6 during the year than anticipated, but we believe it is a smart approach. We are committed to ensuring our work delivers the right investment for your community at the kia ora tātou right time. Powerco is about more than just Making things better for you power. It is about people. We know Despite some wild weather conditions, we achieved better network reliability. Our we have a job to do – bringing efficient planning and focus on your customer electricity to your door safely, reliably experience resulted in fewer and shorter and efficiently – but we also know outages. We were pleased to meet the we wouldn’t be here without our Commerce Commission’s reliability standards customers. You are the reason we and know that this had a positive effect on you, our customers. do what we do. We advanced our work for you in key areas, In the first year of our Customised Price- including: Message from quality Path (CPP) investment programme, we were determined to deliver on our promise Safety of significantly increasing our annual work. We Safety is always number one, for you and have continued to step up the volume of mahi for our team and delivery partners. Over (work) in the second year of our CPP delivery. the year, we maintained our strong safety We’ve also had a much stronger focus on the record and undertook our largest health our team experience for you, our customers. and safety review to date. From this we developed our new health and safety We knew we would need to be innovative strategy, which was approved in March. to successfully deliver our investment We also expanded our forums to include a programme. This year, we channelled our public safety focus in addition to contractor creativity to develop even more efficient ways safety. of operating. New thinking and teamwork meant we achieved more for less, all while Efficiency minimising the impact on you. Our information management has continued to improve, with our team Our team and support partners completed implementing a major new system and year two of our five-year programme additional planning tools. These ensure we successfully on 31 March 2020, and we’re have accurate data and efficient processes excited to show you what’s been happening. to plan our work effectively for you.

Your community Sustainability We wanted to put people first, and we have We know you care about sustainability been working hard to achieve this. Our team and we do too. To us, sustainability means has been out and about in your community, balancing the needs of our environment, from Coromandel to Wairarapa, delivering our people and communities, and network renewal and major projects. We’ve Powerco’s financial health. We’re striving been seeking your input and have appreciated to mitigate our impact on the environment you sharing your views. and continue to reduce our carbon emissions. Our team is now embarking Being more connected to the communities on a business-wide journey to review and on our network has helped to better inform understand how we can achieve greater our plans. We’ve listened and considered sustainability across the entire company. whether the work we planned several years ago is still the best option. As a result, we’ve paused some decisions, including on major projects. This has meant less investment

7 8 Listening to you We have exciting developments on the We want to engage with you, our customers. horizon to make it easier for you to engage Our work is for your benefit and we need with us and access the information you need. to know if we are meeting your needs and Stay tuned and we look forward to showing expectations. you the benefits of these soon.

Over the year, we listened to you as We recognise the huge impact our partners, individuals and communities. We spoke including our all-important contractors, on topics ranging from the length of power have on our performance. A big mihi outages you experience, to potential (acknowledgement) to you all - we value your partnership opportunities and the future commitment to working together for mutual technologies you want to use. success.

Every customer interaction matters. Our team Thank you to you, our customers, for your has learned that you, value small adjustments support. Please keep sharing your feedback to things that impact on you, just as much as and ideas with us so we can ensure we’re you value being able to contribute to larger meeting your needs, now and into the future. investment decisions. This has enhanced the way we operate. We’re using letter drops to give you more information on specific outages and ensuring better resourcing of single jobs Nga mihi nui, to remove the need for extra outages.

How did we do? Your Powerco Team The trade-off to keeping your power on more, was that we did not fully achieve all our investment programme or asset delivery targets. It’s a tough balancing act to push ahead with our work programme for long-term reliability, while reducing power outages that need to occur while we do this work.

Our busy team still made solid progress on key work areas, notably replacing 183km of overhead conductor, 47km more than last year. We also replaced more poles and managed more tree sites than ever before.

Some large new projects and major asset replacements that were planned a few years ago, did not go ahead this year. These types of projects tend to be subject to timing changes, but we are still on track to deliver our planned work across the five-year period.

Going into our third year There are three more years to go in our current investment programme and we remain highly motivated to deliver on our promises and meet your expectations.

While the world is changing rapidly and there will be significant challenges for us all, we believe our thorough planning and dedicated team will continue to achieve strong progress.

9 10 Part of your community

Major projects, network renewal and customer stories in your neighbourhood.

11 12 Valley: Battery Energy Storage in Coromandel to Whangamata We are delighted with Powerco’s work to bring our community this state-of-the-art technology. It will South Waikato make a big difference to our central business district, and locals and visitors alike. It took some time to get it working as it should but Powerco stuck with it and This network area is beautiful and challenging. Network projects completed resolved the issues. Often sparsely populated and remote, it covers the rugged and steep forested coastal • Battery Energy Storage System installed in peninsula of Coromandel to the plains and Whangamata Councillor Terry Walker, rolling country of eastern and southern • Putaruru substation upgrade Thames Coromandel District Council, South East Ward Waikato, as far south as Kinleith. • Putaruru - Tirau new 33kV underground cable link This land is important to our farming and • Matamata network upgrade and Tower Road powercodelivering.co.nz tourism customers, and reliable power supply substation rebuild is crucial. Maintaining power on feeders • Maungatautari 11kV line upgrade in difficult-to-access terrain is tough. Our • Morrinsville, Cussen Road pole and conductor investment priorities aim to improve your renewal network security and resilience, and develop better remote control and monitoring facilities. Planned work In South Waikato, we are building a new • Kereone - Walton 33kV cable link and connection to the national grid and, as part substation work of this, we’ve been upgrading and future- proofing the Putaruru substation. We are in • Piako - Morrinsville 33kV underground cable the planning phase to build a new circuit from link Community Engagement the Arapuni power station to our Putaruru • Matamata, Tower Road - Browne Street substation. cable link • Kopu - Tairua 66kV subtransmission upgrade Like Powerco, we aim to reduce the impact of outages on This will benefit about 11,500 properties • Kopu - Kauaeranga 66kV conductor upgrade customers. In February, we had a major essential outage in in Putaruru, Tirau and Matamata currently • Kaimarama - Whitianga subtransmission South Waikato, where we worked collaboratively with Powerco, supplied by a single line from Transpower’s enhancement Hinuera substation. We’re keen to get this • Whenuakite zone substation upgrade retailers and organisations like Federated Farmers and Fonterra done as we know it will make a real difference • Matarangi zone substation upgrade to minimise the disruption caused. Together we planned and for these customers. designed the outage to have the least impact on customers We completed our project in Matamata, to Community engagement and made sure they received consistent and clear information link the two existing substations with an • Thames skatepark and sports hall before, during and afterwards. Thanks to the Powerco team underground cable and replace the old Tower sponsorship Road substation building. Locals now have for continually seeking to improve the customer experience in • Communicating with our Maungatautari a better power supply while maintaining the partnership with us. customers aesthetics of their town. • Transpower outage collaborative approach Geoff Wishart, In Whangamata, our innovative Battery • Customer focus group and Annual Delivery Report Roadshow Transpower Stakeholder Engagement Manager/ Kaiwhakahaere Hunga Whaipānga Energy Storage System (BESS) is now fully powercodelivering.co.nz operational. This exciting new technology is a long-awaited practical solution to support the community.

powercodelivering.co.nz 13 14 Keeping Matamata connected… Communicating with and looking good our Maungatautari customers

To ensure our Matamata customers have the undergrounding of cable linking our two reliable power supply into the future, our substations was through Centennial Park. network in the town needed some attention. This year, our Powerco team began a $6 Powerco’s contractors were able to complete The Maungatautari community is nestled on million two-year development project to their work while the park and walkways the southern banks of Lake Karapiro, not far achieve this. remained open throughout. This mitigated the It was an exciting project for impact of traffic delays in Matamata’s busy from Cambridge. the town and the council was The network upgrade in Matamata involves shopping centre. Unfortunately, the area can be prone to linking the two existing substations with a keen to work with Powerco. unplanned power outages. It is a tricky 33kV 2.3km underground cable. We also Now that there is greater flexibility across the Putting the cables underground place for power supply, given its distance to I think your customer service needed to replace the old substation building two substations, our Matamata customers is aesthetically important for a Powerco’s Tirau zone substation. The long on Tower Road – at nearly 100 years old, it have more reliable power supply and are less is outstanding as all the community that takes pride in its 11kV feeder line supplying the area is at the needed more than just a facelift! impacted by outages and regular network communications I have had CBD and surrounding streets. edge of Powerco’s network and also must maintenance. They also have a nice new with your staff, whether over substation building and undergrounded power That and the substation is a cross the Waikato River. Our team was pleased to work so positively the phone or by email, have with Matamata-Piako District Council on supply, fit for their good-looking town. win-win for the town. To make matters worse, when the power is the project. We met with the council and been informative, helpful and out in Maungatautari, customers can see agreed that the least disruptive route for Mayor Jan Barnes, thoughtfully presented. across to the neighbouring Waipa network, Matamata-Piako District Council which is not affected by the same issues. It certainly makes a difference In February, a series of unplanned outages to the customer, especially ones occurred because of a faulty high voltage fuse who have been inconvenienced that was difficult to detect. Understandably, by regular power cuts, when many of our Maungatautari customers were frustrated and upset. enquiries are responded to in a timely, efficient and pleasant Powerco’s Customer Resolutions Officer Fran manner, and concerns are Timoney explained the cause of the outages followed up and actioned upon. to our customers and how the upcoming planned works would improve their power reliability. Mandy Good, Maungatautari customer It was great for our team to hear that this approach was helpful and reassuring. We know it’s important for us to be as responsive as possible when there’s an issue with your power!

15 16 Bay of Plenty: Papamoa East Project Tauranga & The Papamoa East Project was a collaboration with the community. We timed it to work in with the Tauranga Eastern Link motorway project, so we could get the best outcome for our customers Mt Maunganui with minimal disruption. Chris Grant, Powerco Project Manager

It’s undoubtedly a horticulture hub, but kiwifruit To support central Tauranga’s development, and avocados are just part of the story in this we replaced the crucial Greerton outdoor rapidly growing region. Our network covers switching station with a modern indoor powercodelivering.co.nz the western Bay of Plenty from near Athenree, switchboard. This has created a more reliable, along the coast east of Te Puke and on to resilient power supply for our customers in the Pongakawa. Port of Tauranga and increasing northern part of town. commercial and residential development mean this part of our network carries a heavy industrial load. Network projects completed • Papamoa, Wairakei Avenue new zone substation Powerco’s investment priorities are to • New Greerton switching station accommodate Tauranga’s rapid urban growth, • Katikati zone substation upgrade maintain safe and reliable power to the port, • Matakana Island renewal and supply new businesses. This year, our • Sulphur Point zone substation upgrade projects focused on ensuring our network can • Extensive redevelopment of the high voltage keep pace and meet the increasing demand (HV) and low voltage (LV) networks in the Pedal & Pump Papamoa for power supply in the Bay. Tauranga CBD Powerco is a long-time partner of Pedal & Pump Papamoa. Thanks The region’s ‘SmartGrowth’ strategy identified Planned work south-east Papamoa as a key area for to its dedication to our community, we are able to offer over 750 subdivision expansion. We recognised the • Triton substation transformers replacement locals the opportunity to win one of four brand new bikes every need to future-proof our network for this • Wairakei Avenue second transformer planned urban development, to assure our • Katikati/Kauri Point 33kV cable and circuit year. We also offer families a free day out that encourages group customers of reliable power supply to their breaker participation and healthy, active lifestyles. We are big supporters of new homes. • Paengaroa substation new 11kV conductor Powerco and are grateful for its team’s impeccably high standard in • Wairoa River crossing cable Our team installed new switchgear and circuits the delivery they bring to all projects. Powerco is a key part of the from the Te Matai grid exit point near Te Puke Community engagement Papamoa community and we look forward to aligning with its vision and constructed a new substation at Wairakei for years to come. Avenue in Papamoa East. This infrastructure • Papamoa football sponsorship provides flexibility of power supply to the wider • TEDx Tauranga sponsorship area. • Pedal and Pump Papamoa sponsorship Julia Manktelow, • Partner of Project Tauranga (Tauranga City Events & Marketing Manager of Papamoa Unlimited Council initiative) • Customer focus group and ADR Roadshow

powercodelivering.co.nz 17 18 New switching station Sharing worthwhile

boosts Greerton and ideas at TEDx Powerco has been a trusted partner of ours since 2015. In collaboration, we have been beyond Tauranga able to curate and produce sustainable, quality events for the community.

Powerco loves creative and innovative We spoke with attendees about the electricity The original Greerton 33kV outdoor During this period, over 3,500 thinkers. That’s why when we heard about distribution industry and provided information switching station dated back to 1974 and it people have attended the live TEDx Tauranga we wanted to be involved. on work Powerco has been doing in the local certainly showed. The original switchgear community. event where ideas are amplified, was outdated, it was exposed to faults from TEDx (Technology, Entertainment, Design) is conversations are sparked and external factors such as birds, tree branches a programme of local, self-organised events Our team received a positive response and and possums, and the steep terrain was at potential unlocked. Our speakers This project has enhanced power held in cities around the world. The concept is enjoyed connecting with the forward-thinking have had millions of views online. risk of damage after heavy rainfall or storms. to bring people together to ‘share ideas worth and like-minded audience. supply to the Tauranga region. spreading’. The station is critical to supply power to Greater flexibility of electricity We ran a survey at the event, and the results We are an entirely volunteer-led substations in Omokoroa, Aongatete, Katikati, Powerco sponsored the 2019 Tauranga have provided valuable insights which are organisation who, like Powerco, Kauri Point, Bethlehem and Otumoetai. supply and modern equipment means the network is more TEDx event and we also took the opportunity now helping to inform Powerco’s decision- embraces innovation and the to engage directly with the more than 700 making. In short, if the switching station failed, it would exchange of ideas. resilient to unplanned outages. ticketholders. be major for our customers. Upgrades or We look forward to being involved in these repair would have been difficult and time- exciting TEDx events again in the future. See Hannah Bougen, consuming, leading to significant power We are really pleased that you there! Trustee, Tauranga X Charitable Trust Board outages for customers across the northern this will reduce disruption for Tauranga area. our business and residential customers well into the future. This year, Powerco invested $3.8m to replace the old Greerton 33kV switching station. Chris Grant, Our team constructed a new modern building Powerco Project Manager and replaced the outdoor switchgear with an indoor switchboard.

The new switchgear is environmentally safe and was installed to modern seismic standards. It is resilient and will offer protection against slips. Not to mention, the new building sure looks a lot better than the 1970s one!

19 20 Taranaki Rural Electricity Upgrade in Central Taranaki

Taranaki Federated Farmers appreciates the engagement it has through its continued relationship The Taranaki region is Powerco’s heartland. Network projects completed Our network covers the northern and central with Powerco. This includes working with Powerco area, with Hawera to Warea defining the • Carrington Street GXP to Moturoa substation to ensure the wellbeing of the farming community is southern limits. We supply the urban centres 33kV cable link considered during storm events and outages, and in of New Plymouth and Hawera, along with • Pihama feeder reconstruction the future planning of its electricity network. large intensive dairy farming and oil and gas • 33kV reconstruction of conductor and exploration sites. crossarms between Ngariki and Pungarehu Mark Hooper, substations Taranaki Federated Farmers Provincial President The local terrain and climate are generally • Supply upgrades to Bell Block industrial and pretty good for our network assets in terms urban areas of construction, access, maintenance and life • Undergrounding and upgrading Strathmore expectancy. There are exceptions, of course. feeder In coastal areas, corrosion can affect assets as far as 20km inland. Severe weather events powercodelivering.co.nz such as storms and localised tornadoes can Planned work also have a big impact on our network. • Moturoa substation transformer renewal Due to its advancing years and the declining • Palmer Road crossarm replacement health of many overhead lines, our Taranaki • Livingston substation 33kV upgrade network needs some extra love, in the form of • Inglewood conductor upgrade and extensive asset renewal work. reconstruction • Waitara west protection systems Our customers in rural Taranaki will have upgrade seen the beginning of our network upgrade • Douglas 33kV reconstruction work between Inglewood and Midhirst from Festival of lights 6.6kV to 11kV. In October, we replaced the 85 Community engagement poles on York Road, and the remainder of the The TSB Festival of Lights enables our project will be spread over the coming years. • Empowering Whangamomona • Christmas at the Bowl and TSB Festival of community to enjoy a free New Year’s Eve Our team has worked hard to power up Lights sponsorship celebration in the heart of New Plymouth. New Plymouth’s new underground cable • Customer focus group and ADR Roadshow link between the Carrington Street and • Venture Taranaki – Ideas Summit This year it attracted over 9,000 people of all Moturoa substations. The $16m project was • Federated Farmers engagement completed in December and involved 7km ages. Thanks to Powerco for helping to bring of cable laying, building a new substation at joy to so many people. We couldn’t have done it Moturoa and upgrading the Carrington Street without you. substation. Hayley Oliver, It was great to give back to the Taranaki community over the holiday period and New Plymouth District Council Events Lead support two free events, Christmas at the Bowl and the TSB Festival of Lights.

powercodelivering.co.nz 21 22 Teamwork speeds up Empowering

York Road upgrade Whangamomona I was really impressed with how Powerco fronted up, listened to the community, and then took action.

York Road in central Taranaki hadn’t had As one of New Zealand’s smallest towns, In May last year, Powerco met with the We’ve noticed a real much action in 50 years. Limited renewal work Whangamomona is 60km from the closest community to discuss their concerns and improvement and we’re very meant our network assets were old, in poor shops and has hardly any cell phone outline our initiatives for improvement. condition and needed replacing. reception. So, for its residents, power outages happy with how Powerco cause big problems. These included major works to redesign has addressed our concerns, With the anticipated growing industrial activity the network that supplied the area, both in terms of the technical Our contractors Obertech, in the area, we knew that York Road would Numerous and extended power outages had undergrounding lines near forestry locations solutions and engaging with require a major upgrade. It was likely that Linepower and Downer were affected Whangamomona due to bad weather, and several projects to replace or recondition us as a community. industrial-size chicken sheds would be built well prepared to minimise any falling trees and branches, other interference poles and hardware. along the road, so three transformers needed and equipment failure. interruptions caused by the Richard and Vicki Pratt, to be installed. A year down the track and, as promised, we York Road work, and we really When the electricity goes out, locals can’t have completed several major projects to Owners of Whangamomona Hotel The voltage quality on the Cloton Road North appreciated the co-operation of communicate with the outside world. They improve the resilience of the network and the feeder, which supplies power along the main our customers in this area. need to fill toilet cisterns with buckets, and community has seen a big difference. road, also needed to be improved. unless they have a generator, there are only The rural electricity upgrade will candles for light. So, to ensure customers in the area would ensure several thousand of our have a reliable and long-term power solution, we scoped up the work. The project included customers get greater power upgrading equipment on York Road, replacing quality and network reliability. 85 poles along 6.5km of road, reconductoring 3km of lines and increasing voltage quality Ian Skipworth, from 6.6kV to 11kV. Powerco General Manager of Service Delivery and Systems Operations Using one service provider, we anticipated it would have taken two-to-three months and a minimum of 17 shutdowns to complete.

We really wanted to limit the impact on our customers. Our team worked hard on alternative options and concluded that bringing three separate service providers together to complete the job could be a solution.

And it worked. The upgrade to York Road was completed in two weeks from 14 - 25 October 2019, with only six shutdowns required. A great result for customers and demonstration of teamwork making the dream work!

23 24 Whanganui & Rangitikei Tramsways Trust We appreciate Powerco’s continued support of this important community asset. The tram is an important part of Whanganui history and Powerco’s support helps ensure this continues. Surrounded by mountains and dramatic west We have been engaged with the community We are pleased Powerco has committed to coast beaches, Whanganui is best known for on a new underground cable between our Te Awa o Whanganui – the Whanganui River. Peat Street and Roberts Avenue substations, continuing the relationship and we look forward Outside the city, much of the land is rugged, to increase security of power supply to to them improving the aesthetics of our building hilly terrain surrounding the river valley, with Whanganui. Currently Powerco is working with new art work. a large proportion within the Whanganui with stakeholders to determine the best route National Park. for the cable. Our aim is to reduce power outages for our customers, including the Kritzo Venter, Our network includes the Rangitikei district. It Whanganui CBD and the Aramoho industrial Chair Tramways trust stretches from Waverley in the west up to the area. Central Plateau in the north and down to Bulls in the south. The region is exposed to westerly sea winds on the coast and snowstorms Network projects completed in high country areas. Access to faults, • Whanganui pole reinforcement trial especially following major weather incidents, • Hatrick’s River crossing underground cable is difficult and can result in lengthy outages for • Roberts Avenue to Peat Street 33kV circuit remote customers. route consultation This year, our focus has been on upgrading Planned work assets for growth in Whanganui and pole Mangaweka Improvements replacement in rural areas. We completed • Roberts Avenue to Peat Street 33kV circuit a reinforcement trial on 200 wooden poles • Taupo Quay substation 11kV line upgrade in Whanganui, with the aim of extending the • Castlecliff substation 11kV line upgrade The Mangaweka work to improve the resilience of the line against working life of these poles across our network. • Parapara feeder pole renewals adverse weather like snow storms is important to ensure our • Mangaweka feeder reconductoring Sections of the network were used as trial remote rural customers have the best chance of maintaining power. sites because they have a lot of wooden In this very challenging geographical terrain, we want to maintain poles. Community engagement a good, robust safety standard by reducing the likelihood of • Customer focus group and ADR Roadshow Our team installed new cables from our • Cemetery Circuit race sponsorship outages due to unplanned asset failures and preventing damage to Hatrick’s Wharf substation to ensure it can • Virginia Lake Trust sponsorship withstand unpredictable weather conditions. property, injury to the public, our contractors and Powerco staff. • Tram signage sponsorship This has also created more flexibility of power • Engagement with Ngā Tāngata Tiaki o supply for our Taupo Quay substation, which Whanganui means less disruption for more customers. Renee Naude, Powerco Project Manager

powercodelivering.co.nz 25 26 Innovative trial Community events to strengthen our add a personal touch wooden poles

Our executive and delivery team got the We were pleased with our customers’ chance to meet and greet local customers receptiveness to the event, with 22 of the 25 at our very first CPP Annual Delivery Report people who completed our exit interview rating We were pleased to complete our pole event this year, held in Whanganui. the experience as positive. reinforcement trial in Whanganui this year. We committed to these events as a As always, we learned from the experience The trial was aimed at exploring a new It was good to learn more, very technique to extend the working life of wooden transparent way to update our customers and and applied those learnings where we could poles across our North Island network. stakeholders on our annual progress towards at our four subsequent events. informative. delivering our investment plan, as agreed with Australian company, Logsys, strengthened We still have 36,000 wooden poles the Commerce Commission. It was clear to our team that customers want Lunch was nice! 200 poles with steel trusses and strappings in use across Powerco’s network to have easier access to information on work and showed the process to our Powerco team and it’s not practical to replace all Although we find our work fascinating in their areas more often. We also learned More of a future focus next time. members. Sections of the Whanganui network of them with concrete. (truly!), our Powerco team felt a tad nervous that, as busy people, standalone events were were selected as trial sites using poles that that perhaps the community might not feel hard for many of our customers to get to, so Would have liked to see retailers were likely to have another 20 years of life. The pole reinforcement trial in the same way. Our apprehension proved communication little and often was preferred. here. unnecessary though, as the event was well Whanganui showed our team a We have taken this on board and are now Reinforcing criteria included the results of supported by more than 35 people attending Bigger numbers on the slides! resonance (Vonaq) testing and the data new method to help our existing from the community. providing more up-to-date information online for our customers. Our team is also aiming gathered from our pole top photography assets last longer, which is a Comments left by event attendees and LiDAR (Light Detection and Range great outcome and will ultimately It was a great opportunity to engage face to to be available for discussions with our technology) last year. face with our customers. Speaking with the communities at other events throughout the benefit our customers. Whanganui community confirmed our belief year. We used to reinforce wooden poles by that our customers are interested in what bolting trusses to them. However, drilling bolt Andrew Jarman, Powerco does in their region and we should holes through the treatment zones of a pole Powerco Senior Asset Engineer, continue to engage. introduces microbes that lead to internal rot. Poles and Towers

The new method developed in the United States, uses band strapping to hold the trusses in place. The work involves placing a truss against each pole and forcing it into position with a pneumatic ram. The ram is powered by a trailer-mounted air compressor with an 80m hose reach, so the poles need to have 4WD access.

Once the reinforcing during the trial was complete, a certification label was attached showing the type of truss used, the date it was installed and other engineering data. The information was recorded in our GIS system, and our Asset Strategy and Investment team will now study this data with a view to adopting the method.

27 28 Manawatu Rural Games

The New Zealand Rural Games was created to raise the Our Manawatu network is unique and diverse, Network projects completed profile of the sports that helped build our country, and spanning both urban and rural areas. It is we can only do this with the generous support of our dominated by Palmerston North city but also • New substation at Ferguson Street includes the rural network from Apiti in the • Ferguson substation installation of a second sponsors. north, down to Sanson in the west and over transformer the Tararua ranges to Eketahuna and the east • Linton substation new indoor 33kV switchroom Powerco has been an integral part of the Rural Games coast. • Two new underground circuits from Linton substation to the new Ferguson Street for four years and sponsored the inaugural Sam Strahan The network across Manawatu is aging, substation Memorial Sheep Dog Trial Challenge in 2020. particularly in terms of its overhead lines. Our • Installation of larger capacity cables between team is actively planning for extensive asset Pascal, Ferguson, Main and Keith Streets renewal work in this region. Steve Hollander, Planned work Founder, New Zealand Rural Games The Palmerston North CBD is the second- largest central business district that • Sanson - Bulls 33kV reinforcement Powerco serves, and our largest exclusively • Feilding transformer upgrade underground network. • Feilding to Sanson subtransmission upgrade • Continued upgrade of Palmerston North 11kV We’ve been working on five major projects cable for the Palmerston North community. These are focused on expanding and renewing our Community engagement network assets, to ensure our customers have continued security of power supply. • Attendance at Central Districts Field Days • Rural Games sponsorship This year we continued our involvement • Central Energy Trust Wildbase Recovery with the New Zealand Rural Games, a great Centre sponsorship event that attracts competitors from across • Customer focus group and ADR Roadshow the country. Powerco was also delighted to • Presentation to Palmerston North City Palmerston North support the important educational work of Council the Central Energy Trust Wildbase Recovery Centre in Palmerston North. We appreciate Powerco’s willingness to engage openly with the Council. Having good relationships across the organisations is essential in supporting each other and ensuring the best outcomes for customers and residents are achieved.

Chris Dyhrberg, Chief Customer Officer, Palmerston North City Council

powercodelivering.co.nz

powercodelivering.co.nz 29 30 Collaboration Promoting and protecting a winner for our native wildlife Palmerston North

Central Energy Trust Wildbase Recovery The centre has four rehabilitation aviaries on Centre provides shelter and world-class care public view, two breeding aviaries for whio and To future-proof the growing energy demands for our native wildlife to rehabilitate after pateke and a walkthrough aviary that is home of Palmerston North, Powerco is investing treatment at Massey University’s Wildbase to a variety of native birds and ancient tuatara. $26.5m across five complementary projects. Hospital. Stories are told in both English and te We are introducing new assets to the network, The Powerco Education Centre and re-purposing existing assets. Entry is free, and over 110,000 people visited reo Māori, providing an amazing learning the Palmerston North centre in its first year of opportunity for us all. Tino pai! gives us a unique space where We continue to foster positive operation. those attending our education This includes delivering larger capacity relationships with all stakeholders cables and creating the ability to transfer programmes can learn in to deliver these projects for the One of Central Energy Trust’s main focuses loads between substations. Our team is an exciting, engaging and benefit of our communities in the is educating visitors about the struggles our also developing a new city link to the Grid information rich environment. Exit Point at Linton, as an alternative to Manawatu. native animals face and what we can do to Bunnythorpe. help. Powerco is honoured to support this Thanks to Powerco, we are important kaupapa (initiative). Nigel Borst, inspiring the next generation of We want to ensure our assets are fit for Powerco Project Manager Since its education programme started in conservationists to carry on the purpose and integrate with the urban work we do. environment. Powerco worked with the 2019, the Powerco Education Centre has Palmerston North City Council to create had 4,870 students through its doors, all local a design for our new-style fully enclosed to the Manawatu region. This includes 87 Chris Smith, substations that is in line with urban planning schools, over 109 bookings, and more than Central Energy Trust Wildbase Recovery requirements. 213 sessions. Centre Manager

Collaboration between stakeholders has been hugely helpful in Palmerston North. For instance, in partnership with the Council and other stakeholders, we were able to install four ducts under the He Ara Kotahi pedestrian bridge while it was being constructed. This was in anticipation of our Linton to Ferguson Street underground circuits project and meant greater efficiency and minimised disruption for our customers.

31 32 Wairarapa Featherston

Our whole team including, our world-class asset With rural charm and stunning vineyards, Network projects completed the Wairarapa region is a series of small engineers, are continually looking for synergies to • South Featherston 11kV line reconstruction towns about an hour north of Wellington. Our deliver a safe, robust, intelligent network. We use our network covers the central and southern parts • Tararua, Hukanui 11kV line reconstruction of the district from south of Eketahuna to Cape • Kumenga 11kV line reconstruction Powerco values as the cornerstone for our project Palliser, the southernmost point of the North • Masterton, Chapel Norfolk 33kV line management delivery. Island. The bush clad Tararua Ranges run reconstruction along the western boundary of our network, • Masterton, Te Ore Ore substation circuit breaker which spreads across flat plains where the replacement Gavin Paget, urban centres are located, to a rugged coast • Featherston, Revans Street Cross Creek 11kV Powerco Wairarapa Project Manager on the east. reconductoring • Masterton, Blairlogie Riversdale 11kV feeder During the year, our Powerco team has reconstruction been implementing our asset plan for the wider Wairarapa and Tararua region. We’ve Planned work been improving the condition and quality of • Featherston, new substation transformer our assets through targeted overhead and • Masterton, Chapel Norfolk 33kV underground lines construction. reconstruction • Awatoitoi Tinui 33kV cross arm renewal These projects spread from the south coast • Masterton 33kV cable upgrade at Chapel Western Lake, to the east coast reaching up substation to Akitio and inland to the Tararua mountain • Featherston, Revans Street Mangaroa range. Communities and towns include Western Lake reconductoring Featherston, Martinborough, Greytown, Carterton, Masterton, Eketahuna, Pahiatua and Pongaroa. Community engagement First Aid Training Programme • Riversdale Surf Life Saving Club Our engineering horsepower has been sponsorship For the last eight years Powerco has supported our First Aid Training ramped up with a raft of technology, from • Golden Shears sponsorship programme at Riversdale Beach. Each year over 40 surf lifeguards protection to new regulators and reclosers. • Council engagements and Transit NZ complete a three-day course, giving them the skills to attend incidents The rural environment’s topography and engagement to support delivery of projects diverse seasonal weather conditions can • Aorangi Undulator Run sponsorship both on the beach and around our community. make this even more of a challenge, but as always, we are up for it! Being over 45 minutes’ drive from Masterton, in many cases these We have been actively engaged in Wairarapa skills have stabilised or even saved patients’ lives. community events, including the Golden Shears in Masterton. Powerco has proudly Without Powerco’s support, we would not be able to run these continued to sponsor the Riversdale Surf Life Saving Club to run its first aid courses for courses, compromising the safety of all those in our wider community. lifeguards. We know this has a far-reaching impact for the Wairarapa community. Dave Rose, Chairman, Riversdale Surf Life Saving Club

powercodelivering.co.nz 33 34 Blitzing our work Generating entertainment at in Blairlogie and Golden Shears Riversdale

The Golden Shears event is somewhat of an institution in Masterton. It has been held for 60 years now, in the centre of the town, Like many of our assets in the Wairarapa, Our ‘blitz’ approach meant that we carried with competitors travelling from around New those serving the Blairlogie and Riversdale out other maintenance work on the lines and Zealand and overseas to compete. communities were ageing and needed vegetation management at the same time. Having Powerco as a sponsor of the Senior Shearing shows the renewal. The Powerco team was keen to get This has reduced the need for more planned Golden Shears delivers a vibrant display on with this work but the relative isolation of outages in the future and risks of unplanned of the shearing industry in Aotearoa. This importance of a ‘backbone service provider’ in a similar way to the senior the communities and the configuration of the ones too. includes not only shearing, but the associated shearers who are the ‘backbone of the shearing industry’. network meant it would cause outages for wool preparation and wool pressing that around 350 properties. Some properties were unfortunately still occurs in every woolshed. The generator is on site to provide immediate power in case of an outage. without power for a significant time while the A total of 72 wood poles needed replacing work occurred, but our communication helped Attendance at this year’s event exceeded Our programme of events is so full and structured that any power outage with concrete, 5km of conductor and 134 to ensure our customers’ understanding of this 5,000 over three and a half days, along would mean disruption to delivering the full programme. crossarms. The area also needed preparatory short-term pain for long-term gain. with an online audience of over 120,000 work for further projects to allow improved worldwide. Golden Shears thanks Powerco for sponsoring this vital back-up automation and backfeeding. A big thank you to our customers and contractors for supporting us to make this Powerco proudly sponsors a class at this provision. We knew that the Blairlogie and Riversdale happen! event – the Senior Shears. We also provide a communities wanted better power reliability power generator, just in case! Philip Morrison, and a future-proofed network. Our challenge Sponsorship Coordinator, Golden Shears was to minimise the impact of power outages on these customers while the significant work occurred.

We put our heads down with our delivery partners and created a plan. Together It was an opportunity for Powerco we managed to condense the work to an to put people first. So, we got intensive nine-day programme, from the talking with the communities original plan that spanned several months. affected. Our customers told us This was achieved by using multiple crews they wanted the work done as working at the same time rather than quickly as possible and would fewer crews over a longer period. We prefer a greater number of short used generation where possible for our most affected customers, those who were interruptions instead of fewer vulnerable and essential services. We also more prolonged outages. innovated with network switching to help reduce the length of power outages for our Gavin Paget, customers. Powerco Project Manager

35 36 Focusing Initiatives to improve your customer experience:

on you Supporting our customers

Log a fault online

We know you don’t like power cuts! Whether it’s a one-off short planned outage or a more major unplanned interruption, we Your supply chain working as one recognise the disruption this causes you. Our team works hard to balance our necessary maintenance and renewal work with the Keeping your power on while we work Making things impact this has on you, our customers. It’s true that we do need to turn your power off sometimes. This allows us to safely undertake Innovation for our rural communities the work that will reduce unplanned outages in the long-term. In doing this, we consider safety, regulatory reliability standards, Here for you in tough times better for you resources the environment, and cost.

There is no one size fits all approach, as each situation is unique. We use a range of Doing things better methods to try to get the best outcome for you, such as personalised letter drops and investing in assets to reduce the time you are Safety for everyone What we’ve done to improve your experience. without power. Our team has continued to build on our progress from last year. Here are some Real sustainability examples of our successes.

Our business is your business

Looking after our assets

The more information the better

Planning for your future

37 38 Supporting our customers Here for you in tough times

We recognise that power outages can leave some customers in a particularly vulnerable position. This year we have used more generation where we can, and we’ve made Log a fault online Keeping your power on Innovation for our rural extra effort to adjust the timing of our work to minimise its impact on you. During the You’ve told us that information and while we work communities very dry summer, we paid special attention communication are key to dealing with to ensuring power supply for farming unplanned outages, and that you want flexible Powerco’s zone substations reduce the high We use Remote Area Power Supply (RAPS) communities with animal welfare concerns, options in the way you can log a network fault. voltage electricity from the National Grid so to provide our customers with a solution notably in the South Waikato area. it’s ready for you to use. From time to time our when they don’t have good power reliability This year we updated our website so you can substations need maintenance and upgrade or it’s uneconomical to renew a line. There While we are here for our communities in directly log a power cut without having to call work, but we want to do this without causing are many rural communities on our network, outage situations and we’re actively involved us or your retailer. We’ve had 22,000 visits your power to go out. and we know they can be vulnerable to power in sponsorship of local events, we’re aware to this tool so far, with a substantial number outages. that some customers are struggling financially. of faults being logged online. No more need We’ve developed a mobile substation that Many of these families have high energy costs to spend time on the phone, and much more connects to the network, to keep your power Our evolving Base Power technology because of their living arrangements, which efficient for everyone! supply on while our contractors carry out involves stand-alone, battery-powered units puts them under real pressure. work on our zone substations. It is basically a that produce electricity using a mix of solar self-contained trailer equipped with the high and diesel generated energy. We installed This year we were pleased to help Electricity and medium voltage components of a full 14 new units across remote sections of our Retailers’ Association New Zealand (ERANZ) substation. network during the year and our customers to roll-out their ‘Energy Mate’ scheme on our Your supply chain are impressed with their reliability, particularly network. This extended our existing support working as one The mobile substation was commissioned in during storms. for the ERANZ Vulnerable Customer and March and a team of Downer contractors will Medically Dependent Customer (VCMDC) be trained to use it. Its first deployment is in This year we had the opportunity to support In February, Transpower had a necessary working group as the only distributor Douglas, Taranaki in mid-2020. Mako School in the eastern Taranaki planned power outage from 7am to 5pm that representative. backcountry during an extensive upgrade affected 14,000 customers in South Waikato. of the electricity network. Base Power was This was an opportunity for Powerco to installed at the school to avoid disruption, collaborate with Transpower and retailers to and it also proved handy during storm-related try and make things as smooth as possible outages. for our customers. We worked together to ensure that pre, during and post outage our communications were consistent. We The mobile substation is good provided extra support to businesses and news for our customers, and Powerco has been supportive adapted the outage time to accommodate from a safety perspective, our and engaged in the ERANZ farmers’ milking. contractors will no longer work industry working group to While still a disruptive outage, the near live equipment. We rely on pumped tank water for support medically dependent and collaborative approach across the supply hygiene and drinking while the vulnerable energy customers. chain minimised frustration for our customers. It removes the pressure to kids are here, so no power means Through this we have developed new Mike Munro, complete maintenance within a no school. The unit solved that. streamlined processes for the longer term. scheduled outage time and means Acting Chief Executive, ERANZ no more expensive standby It’s basically just the flick of a generators. switch and it was a real help during the three months it was Ian Skipworth, here. Powerco General Manager of Service Delivery and Systems Operations Anna Stockman, Principal of Mako School

39 40 Doing things better

Safety for everyone to support our teams working safely out in the Safety Leadership field and deliver our asset management plans. Powerco’s Board and Executive Real sustainability While continuing to build on our previous achieved 103% of their Workplace Safety We are committed to continually educating Sustainability is something we put a lot of This year, we took a big step forward in our safety successes, this year we undertook Interactions target. To us, sustainability means our customers on how they can stay safe thought into and we want to get right. We commitment to sustainability. We established our largest health and safety review to date. balancing the needs of our around our network assets. Along with smaller know you, our customers, want to see us a dedicated Corporate Sustainability team, This was to take stock and ensure we could environment, our people and localised campaigns to target specific issues, practising real sustainability that makes a reporting through to the Customer Group. develop the best safety strategy for our team % our team ran public safety campaigns during tangible difference. It’s this team’s role to pull together all our communities, and the financial and our customers into the future. the year, including: sustainability initiatives and ensure we health of our company. 103 Our Powerco team has been implementing are taking a consistent, whole-of-business The independent reviews were conducted - Copper Theft: engaging the public on the sustainable practices for quite some time approach. by Australian firms, Clyde & Co and Froge Our success is based on the dangers of copper theft. with positive results. But we recognise that a Works. They found that overall Powerco triple bottom line: people, planet, more cohesive approach is needed across the Our sustainability focus is currently on the key has a great approach to contractor safety business. - Look Up: a comprehensive lines safety whole business. areas of health and safety, our contribution management and we have evolved from Our TRIFR campaign, across multiple digital, print and (Total Reportable Case Frequency Rate) and resilience to climate change, and our a ‘command and control’ model to a Although we regularly measure our carbon We know our people, customers radio platforms. was 11.24 – below target for the first time people and community engagement. ‘relationship-based’ model. Compared to our emissions, 2020 will be the first time these in four years. This measurement includes and stakeholders care about peers we are on par with the best! are externally verified and reported to our - Customer Trees: raising awareness for tree lost time injuries, medical treatment cases sustainability and want to stakeholders. We will also be further aligning Compared with last year: management and safety, through online and and restricted work cases. know that we are taking our The reviews noted that our CPP - Year newspaper media. all our sustainability reporting with GRI • Our carbon emissions are down 9.3% One introduction of our new contractor responsibilities seriously. standards and the Sustainable Development • Our office energy use is down 12% forum initiative had been widely welcomed Goals. as a learning and collaboration tool. The Carol O’Sullivan, observation that ‘most opportunities for Powerco Corporate Sustainability Manager improvements relate to fostering better collaboration, communication and improving 11.24 process efficiencies’ was meaningful to our team and aligned with our aspirations as a business moving forward.

As a result, we developed our new Health and Safety Strategy FY21- 23, which was approved in March. The strategy is based on delivering health and safety outcomes for our employees, our contractors, and you, our customers. It takes a balanced approach to evenly spread our resources and programmes across these three groups so everyone can stay safe.

We also implemented more data quality work for our key health and safety management system. This is important for us to access the relevant information and indicators we need,

41 42 As part of this, we have applied a suite of While this may not sound too exciting, it asset health and criticality models using allows us to deliver better efficiencies for our the Ofgem DNO Common Network Asset delivery partners and for you, our customers. Our business is your Indices Methodology. The system will provide Planning for your future business assessments of asset health score and An example of this is in customer-initiated monetised risk (a quantitative measure of work (connecting your power). We want our Our network must meet your current power We need to ensure we can deliver the service criticality) for key asset classes. This ensures contractors to focus on you, not paperwork. needs and expectations. We also want it you want in the safest, most efficient way. This we optimise our investments and achieve the Under our old system, contractors submitted to enable your future energy choices. We means we continually strive for improvements best balance of cost, risk and performance. individual invoices for every new connection don’t have a crystal ball, but we do know that in all aspects of our business. Copperleaf C55 is scheduled to go live in job. It was time consuming and inefficient. talking to you about the future technologies August 2020. you want to use is a good platform for our Powerco’s Board supports, monitors and With the roll-out of our SAP software, which planning. DIGITALISATION Over the past year, we have continued includes Service Entry Sheets, once checked guides our delivery and provides the direction, Increasing digitally enabled sensors, data to focus on our network’s ability to cope by Powerco the contractor can submit a single During the year we’ve been looking into: decisions and resources we need. Our annual and analysis to stakeholders. business plan is developed around delivering with stressor events, usually caused by invoice for all the work done in that month. - Understanding the impact of electric vehicles our CPP investment programme and benefits weather or natural hazards. We are currently Easier for them and easier for us. on the network. from efficiencies we gain because of improved implementing the following strategies to Powerco’s Customer Works Administrators process, systems and execution. improve our network resilience: developed a guide for our contractors and - ‘Power Plug’, an in-home tool to help collect data on power supply issues. Topic-specific governance groups drive the - Reducing the volume of latent defects then trained their administrators on how to use internal delivery of our annual business (assets that are more prone to failing during the new system. This resulted in much better stress events). This is through Powerco’s compliance and time efficiency and reduced - Developing visibility and monitoring of the LV plan, along with a CPP steering committee (low voltage) network. that meets quarterly. This group ensures we substantial asset replacement and defect any start-up confusion. Our contractors can reduction programme, which is detailed now spend more time working for you and are on track, our resources are being used - Understanding the potential impacts of new further in this report. less time on unnecessary administration. efficiently, and makes decisions on relevant technology and future energy use through issues. - Strategic spares procurement to improve Two staff from Metering Solutions (our largest our ‘Smart Grid’ research. response capability. connection contractor in South Waikato) were This year, we have progressed several Our team is working with the wider industry initiatives that support the delivery of our delighted with the support they received on - Earthquake strengthening. the new process from Lauren Burrett one of to help inform our planning work, and we overall five-year CPP plan for our customers. subscribe to the New Zealand-specific You can read about these in the sections our Customer Works Administrators. We are also investigating cost-effective Network Transformation Roadmap developed below. DECENTRALISATION investments to improve our network by the Electricity Networks Association (ENA). Shifting from central generation to devices resilience for potential HILP (high impact, low that generate, store or consume electricity. probability) events from natural hazards. Things are evolving quickly. We’re confident that focusing on digitalisation, decentralisation and decarbonisation will enable us to prepare Looking after our assets for your future energy needs.

We want to be measured against the best in our industry, to give you confidence in The more information the Lauren has been amazing and how we run Powerco. Last year, we detailed better is always willing to help, in fact our journey towards the internationally she is now going to take it upon benchmarked ISO55001 standard. We have The better the data we have, the more herself to check over our invoice made good progress this year and while we effectively and efficiently we can work for you. each month just to make sure. won’t meet the 2020 certification, we are on track to be certified by mid-2021. Last year we set the foundations by focusing All kudos to Lauren, her help and on governance, the development of an Asset We have committed to improving our Information Strategy and implementing a new service is exemplary. organisational maturity in several areas, Enterprise Resource Planning System (ERP). Morris Sowerby and Richard Connett, including condition-based risk management. DECARBONISATION Our Powerco team has been implementing This work to improve our information and data Metering Solutions Copperleaf C55, an industry-leading Asset is proving beneficial. The launch of our ERP The challenge to reduce emissions to fight Investment Planning and Management was a significant step forward in our ability to climate change. solution. manage and process enterprise data. While

43 44 What’s This year we tried to capture your important thoughts through several initiatives: to you 4 focus groups across our network. 8 large surveys on topics including communication during outages, reliability expectations, planned outage experiences and our engagement with you.

Our Powerco team is listening to you, and 5 engagement roadshows. we’re learning. We are listening through organised focus groups, social media channels and conversations with our Targeted research of industrial and large customers to understand the value Listening Customer Experience team. The more we placed on power supply at different times of the day and the effects of outages hear your voice, the better informed we are on this. to make decisions that meet your needs and expectations. Information received through complaints, social media, in person and group interactions. to you We can’t always solve the problem or make the change you would like. However, it is important to us that you are heard and treated Co-chairing the Electricity Network Association (ENA) Customer Engagement respectfully, and we are transparent in our Working group. communications with you.

In 2018, we developed a Customer Strategy to guide Powerco in engaging with you. We Key takeaways from what you said: wanted to understand your expectations so we can be efficient with our resources and expenditure – using them for the things that Better information and communication help to mitigate the impact of planned you most want and need. outages and provide increasing comfort during unplanned outages.

You want to know about power outages in your area early, so you can plan ahead.

You would rather we complete our work as planned for long-term reliability than hold back or reduce our work to meet short-term regulatory reliability targets. Our findings covered a wide range of topics to inform our operational You understand that safety is important to us, both for our customers and our and strategic decisions. They teams out in the field. will help shape changes in CPP - Year Three, so we can continue to enhance the way we engage with you, the work we do and the experience you receive.

Oliver Vincent, Powerco Customer and Communications Strategy Manager

45 46 Let’s Your customer korero experience with us

We’ve got the message that you want us We know there is nothing like the personal You have told us that the reliability of your industry forums and proactively engages to communicate with you loud and clear, touch. You will often see our Powerco team power supply is of the upmost importance on topics for shared learning. We actively figuratively speaking. This might be related to popping up in all sorts of places to talk about to you. We can’t guarantee you no loss of promote UD’s awareness campaigns and an outage, a complaint or enquiry, or giving the work we are doing in your community. supply, but we are continually striving to meet provide customers with direction to UD where you information on work we are doing – and You may see us at council meetings or local your reliability expectations. relevant when we manage enquiries and why we are doing it. events like Field Days and the Rural Games. complaints. Our team has been increasingly efficient and We appreciate this dialogue and encourage These occasions provide a great way to stay innovative this year, managing to complete We know some of you experience more you to continue to talk with us. Over the connected throughout the year. Make sure more work but with 12% fewer planned power outages than the majority. We have last year we have made it easier for you to you come and say ‘hi’ if you see us (we may outages compared to last year. We asked continued to focus on these parts of the make contact using the channels you want. be wearing purple…). you what you thought about our performance network and many areas are showing signs We’ve developed our social media platforms, and 95% of respondents said that your power of improvement. We are happy to see that the centralised our customer experience supply was acceptable or better. 11kV reconstruction projects in Wairarapa, communication and our team has been more western Taranaki, North Taranaki and visible in your community. There is always room for improvement, Whanganui have had positive benefits for our and this is one of the main drivers of our customers. Powerco has also committed to informing investment programme. We are pleased to you about how we are progressing against have reduced the number of planned outages Large amounts of line reconstruction on our annual plans. Last year, in addition to our we need, but we know that any power outage the same part of the network can create business as usual engagement plan, we held is an inconvenience for you. significant power outages for local customers. five public forums across our network and two We try to keep you informed of what to further stakeholder functions. To give you better visibility of upcoming expect, by providing as much detail on the planned power outages, our team has work as we can. Often this is the form of These were popular and over 85% of the developed an online tool to search for an letterdrops and online information that is easy 170 attendees said they enjoyed them and outage in the next 30 days at your property. to access. felt satisfied. The online material was well- Feedback on this has been positive, with over received too. We can see that you want us to 28,000 web visits to check power outages this focus on digital channels more, so you have year. Now that we know it is helpful to you, the flexibility to view and engage at times that we’re continuing to build on its functionality suit you. and usability. Considering the importance of We also want to give you a positive For our customers affected by major works power to our lives and the volume and significant outages, we provided experience in the delivery of our work and additional details to inform you of the services. A good indicator that we are on of work our team is doing, we work occurring in your area. This included track is that customer complaints have are pleased with our customers’ information on social media and hard-copy dropped 15% compared with last year last feedback on their experience with letter drops. It was encouraging to see your year. Unfortunately, there are times when we us. responses on social media, which showed can’t resolve a complaint. When this happens, real engagement with what was happening complaints are referred to Utilities Disputes We recognise there will always in your community. We also measured (UD). This year referred complaints reduced the success of our additional information from 9 to 8 and remained at 1% of total be room for improvement but it’s and communications through more formal complaints received. great to hear of so many positive customer experience surveying. experiences this year. We strongly support UD and the role it plays in our industry. Powerco participates in UD’s Helen Duncan, Powerco Community Partnerships Manager

47 48 How did we do?

Our business performance.

49 50 A bit of context to the numbers

Reliability Customer experience financial data visibility. Wooden Poles count is significantly higher due to bringing Lots of successes The Powerco team was delighted to meet The positive feedback we have received The transition was well-planned and executed, more team members on earlier to support 613 under forecast Powerco has performed solidly in CPP - Year our regulatory network performance targets from you, our customers, has been hugely though the complexity of the system’s our programme delivery. This was balanced for both planned and unplanned outages this Two. We adapted our plans and innovated encouraging and motivating this year. Our touchpoints and the time needed to train all Concrete Poles out by lower professional advice costs, as we to deliver greater efficiencies, reflect your year. This success was especially rewarding engagement with you has been rewarding our team slowed down our delivery. It will be expected. 307 over forecast preferences for our communication, and as we also managed to deliver higher volumes for all the Powerco team and is reflected in a worth it in the long-term, as the system will meet the regulatory rules around reliability of work in several key areas and deal with 15% fall in customer complaints. This gives us help us successfully manage how we meet standards. some rough weather conditions. extra drive for the exciting developments we your electricity needs as they evolve. are planning for you and your community in Network Opex was lower than expected as We needed to balance two key goals- Planned Target Actual CPP - Year Three. a result of a focus on delivering our Capex 32 delivering on our investment programme to ERP Phase One programme, achieving internal efficiencies New FTE provide you with a safe, reliable network in the SAIDI 84.9 69.9 Complete and us being unable to progress certain step- long-term, and minimising power outages in 831 change programmes we’d planned, such as the short-term. Complaints phase two of our pole top photography. We SAIFI 0.370 0.346 Powerco has continued to invest in network expect to implement innovative projects like evolution initiatives despite this not being Delivery The trade-off to keeping your power on more this over the next year or so. 8 provided for in our CPP agreement. We do Last year, we delivered more work than ever Unplanned Target Actual Referred to Utilities Disputes and reducing the frequency of outages, before, with 25% more poles, 50% more was that we did meet all our investment this because we believe it is the right thing to conductor and 30% more investment on SAIDI 187.4 181 programme expenditure or asset delivery do for you, our customers. We want to ensure $3.1m we design the best networks for your future. renewal and growth work. That was huge. targets. This year has seen us underspend Under forecast SAIFI 2.262 1.922 against targets in several areas. In CPP - Year Two, our team continued to Industry learning increase our delivery of work and progressed Powerco keeps building on our knowledge, $685,000k Over the year, we analysed our network especially around data and streamlining how Capital Expenditure internal projects to support our efficiency. We performance in places where our customers Spent we do things. We openly share many of our Forecast $173,755 Timing is everything replaced 183km of overhead conductor, 47km experience lower reliability. We’re still working learnings with the wider industry and supply Most of these variances can be explained more than last year. We also replaced 13% to fully understand the results, as we have Actual $164,342 chain. During the year, our team participated by timing. We developed our plan more than more poles and managed 44% more tree sites seen reliability improvements in some areas in industry working groups, contributed to three years ago with the information we had Our Powerco team remains committed to than the previous year. but not others. The variables of planned work industry conferences, worked in-depth with then. We now have better network data and successfully delivering our CPP investment and unplanned outages mean analysing Major and minor projects were $11m below other similar companies and held specific insights around what you want and need, to plan for you, and we will work hard to do this. Our vegetation management approach has parts of our network over just one year is of target in CPP - Year Two, due to slower than technical workshops. Unfortunately our inform our decisions. This can only be a good Bring on the next three years! developed well. The Valley (Coromandel and limited benefit. We will continue to observe expected progress in scoping their design and plan to have a focused forum to share our thing. South Waikato) region has moved from a trends over the next few years, which will give securing land. Replacement and renewal of four to three-year cycle, in line with the Bay learnings with the industry around deploying outdoor circuit breakers was also slower due us more comprehensive information to help our innovative Battery Energy Storage System Some large new projects and significant asset of Plenty region. All our network regions are identify issues and solutions. to delays in project scoping and design. We tracking to our work plan, and western regions in Whangamata has had to be postponed due are confident that these are timing issues replacements we planned a few years ago to COVID-19. did not go ahead this year. These kinds of have moved to a four or five-year cycle. Our team’s hard work last year to cleanse and we will catch up over the remaining three projects are often subject to timing changes, Progress on the feeders designated for the defect data has paid off in CPP - Year Two, years of CPP delivery. as there are so many elements to line up, year is currently as projected, but with some as we can now prioritise our critical defects And a few challenges some of which aren’t in our control. However, heavily vegetated feeders still to tackle our and focus on reducing our defects backlog. Our wooden pole renewal is down on our Launching our new Enterprise Resource we’re confident we are still on track to deliver progress will slow. We had a strong year and fixed over 13,000 forecast, but concrete renewal is up. Rather Planning (ERP) system was a major milestone our planned work across the five-year period. defects across our network, which is nearly than working just to forecasts, our team wants for our team. However, we did run into some 50% of our starting defect backlog. to make the right decisions for our assets big challenges along the way. Migrating and for you, our customers. It’s important As anticipated, our ERP expenditure was less between the old and new systems was to do our due diligence on projects in your last year and more this year due to the timing particularly problematic for our asset and community, and in this case, it meant we of our project delivery. The expenditure has 11,000 13,000 equalled itself out over CPP - Years One and Tree sites managed Defects fixed replaced more concrete poles than wooden ones over the year. Two and implementation is on track. Our FTE

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