Report on 2004 Annual Planning Review

2004 Annual Planning Review

Disclaimer

Transend Networks Pty Ltd (Transend) has prepared this 2004 Annual Planning Review Report in consultation with Aurora Energy Pty Ltd (Aurora) in compliance with Clause 5.6.3 of the Tasmanian Electricity Code. The purpose of this document is to provide information about forecast demand for electricity, assessment of the adequacy of the transmission system and capability of terminal substations to meet demand over the next 5-15 years, and proposed development plans and programs for transmission and distribution. This report has been prepared by information provided and reports prepared by third parties. Anyone proposing to use the information in the document should independently verify and check the accuracy, completeness, reliability and suitability of such information for their purposes. This document also contains certain predictions, estimates and statements that reflect various assumptions. These assumptions may or may not prove to be correct. The document also contains statements about Transend’s and Aurora’s plans. These plans may change from time to time and should be confirmed with the relevant organisation before any action is taken in reliance of these plans. Transend makes no representation or warranty as to the accuracy, reliability, completeness or suitability for any particular purpose. Transend and its employees, agents, and consultants shall have no liability arising out of, contained in or derived from, or for any omission from, the information in the document, except in so far as liability under any statute cannot be excluded.

Produced by Transend Networks Pty Ltd

Report on 2004 Annual Planning Review

April 2004

TRIM Reference: D04/10523

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part of the work may be reproduced by any process without permission from Transend Networks Pty Ltd.

Transend Networks Pty Ltd ABN 57 082 586 892

Registered office 1 Bowen Road MOONAH TAS 7009 Australia

Postal address 7 Maria Street LENAH VALLEY TAS 7008 Australia

Telephone 1300 361 811

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Internet www.transend.com.au

2004 Annual Planning Review

Executive Summary This report has been prepared by Transend Networks Pty Ltd (Transend) in consultation with Aurora Energy Pty Ltd (Aurora) to capture the outcomes of the 2004 Annual Planning Review (APR) process, in particular, the proceedings of the APR meeting held on 2 April 2004. This meeting included Transend and Aurora personnel together with representatives of the Office of the Tasmanian Energy Regulator and the Reliability and Network Planning Panel. Transend and Aurora carry out a range of planning activities to ensure the adequacy of their respective networks and which includes regular liaison to ensure a coordinated approach. Network planning and coordination is also mandated within the Tasmanian Electricity Code (TEC). Clause 5.6.3 of the TEC stipulates the requirements for the conduct of an Annual Planning Review between the Transmission Network Service Provider (Transend) and the Distribution Network Service Provider (Aurora). The APR meeting is a vehicle for the sharing of relevant information and discussion on issues related to adequacy of the networks and plans to address immediate shortcomings as well as developments to ensure adequacy into the future. The meeting included: • A presentation by the System Controller and discussion on issues raised in the 2003 Planning Statement relevant to this review. • A presentation by Aurora and discussion on: load forecast information around the State on an area basis; various regional issues and strategies; current distribution development plans; and modifications to the distribution network which might impact on connection points. • Presentations by Transend and discussion on: update on Connection Agreement issues and processes, adequacy of its connection points; transmission system constraints which might impact on connection points; progress on refurbishment and replacement projects at connection points; transmission system projects in progress; and the transmission system capital development program. The issues and corresponding strategies and actions to address them, which were identified and discussed in the meeting and covered in this report, have been aggregated into a single summary document to facilitate ongoing review and progress monitoring. This document is included as Appendix M. Tasmanian entry into the National Electricity Market next year was acknowledged as a key issue to be managed in ensuring ongoing coordinated planning of the distribution and transmission networks. The relationships and discipline developed through the joint planning activities and the governing regulatory process, will be of even greater importance in the future with the change in the regulatory environment with Transend having to comply with the NEC Annual Planning Review requirements and Aurora being governed by the Tasmanian Distribution Code. It was generally seen by the participants as being important that a process similar to the current one should continue into the future.

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Contents

Disclaimer ...... i Executive Summary ...... ii 1. Introduction ...... 1 1.1 Regulatory Requirement...... 1 1.2 APR Process and Planning Statement ...... 1 1.3 National Electricity Market Context...... 2 2. 2003 Planning Statement...... 3 3. Aurora Load Forecasts, Demand Side Management (DSM) & Embedded Generation ...... 4 3.1 Aurora Load Forecasts ...... 4 3.2 Demand Side Management (DSM)...... 5 3.3 Embedded Generation ...... 5 4. Overview of Aurora Regional Issues and Strategies...... 6 5. Aurora Major Capital Works Program ...... 7 6. Aurora Modifications to & New Connection Points...... 8 7. Connection Agreement Development (Transend)...... 8 8. Transmission System Constraints Impacting on Connection Points (Transend)...... 9 9. Adequacy of Existing Connection Points (Transend) ...... 9 10. Transmission System Refurbishment/Replacement Projects at Connection Points (Transend) ...... 13 11. Transmission System Projects in Progress (Transend) ...... 13 12. Southern Power System Security Project (Transend)...... 13 13. Transmission System Capital Works Program (Transend) ...... 14 14. Conclusion ...... 15 Appendices ...... 16 Appendix A. 2004 APR Meeting Agenda ...... 17 Appendix B. Electricity Supply Industry in Tasmania...... 19 Appendix C System Controller Presentation on the 2003 Planning Statement.... 21 Appendix D Aurora Presentation on Distribution Load Forecast, Network Issues & Developments...... 31 Appendix E Transend Presentation on Connection Agreements...... 48 Appendix F Transend Presentation on Transmission Constraints Affecting Connection Points ...... 54 Appendix G Transend Presentation on Connection Point Adequacy ...... 57 Appendix H Transend Presentation on Planned Asset Replacement at Connection Points ...... 61 Appendix I Transend Presentation on Update on Connection Point Projects..... 64 Appendix J Transend Presentation on the Southern Power System Security Program...... 70 Appendix K Transend Presentation on the Transmission System Capital Works Program ...... 73 Appendix L A Proposal for a Joint Planning Approach Post-NEM (Aurora)...... 78 Appendix M Issues and Actions Summary...... 79

2004 Annual Planning Review

1. Introduction Transend Networks Pty Ltd (Transend) and Aurora Energy Pty Ltd (Aurora) each carry out a range of planning activities on an ongoing basis to ensure the adequacy of their respective networks. Regular liaison includes fortnightly meetings to coordinate these activities. This ensures that the plans developed provide the best outcomes in terms of asset management and customer needs from an overall power system perspective as well as optimising returns and ensuring the future viability of the individual businesses. The basis for monitoring progress at these meetings over the last 12 months was the 40 odd issues identified from the Issues and Actions Summary which was Appendix K in the 2003 Annual Planning Review (APR) Report. Network planning and planning coordination is mandated within the Tasmanian Electricity Code (TEC). Planning coordination is facilitated by the conduct of the APR meeting involving participation of Transend and Aurora personnel and other interested parties. This report covers the proceedings of the 2004 APR meeting held on 2 April 2004, as well as presenting supporting information and identified issues and actions to be further pursued. The list of participants and the meeting agenda is included as Appendix A. A practical outcome of the APR process and meeting is the updating of the summary issues and actions from last year which will be used as the basis for monitoring progress over the next 12 months (Appendix M of this report). Tasmanian entry into the National Electricity Market next year was acknowledged as a key issue to be managed in ensuring ongoing coordinated planning of the distribution and transmission networks. A brief outline of the electricity industry in Tasmania identifying the key participants is included as Appendix B.

1.1 Regulatory Requirement The TEC requires that the Transmission Network Service Provider (TNSP) and the Distribution Network Service Provider (DNSP) must analyse the expected future operation of their respective networks over an appropriate period taking into account all relevant data. In Tasmania the TNSP is Transend and the DNSP is Aurora. In accordance with the TEC, the TNSP and the DNSP must conduct an annual planning review taking into account the most recent System Controller’ Planning Statement and incorporate the submitted DNSP load forecasts. The planning review must include a review of the adequacy of existing connection points and relevant parts of the transmission system and planning proposals for future connection points. The APR meeting, as it has been constituted, together with the reported outcomes, is an intrinsic part of the annual planning review process. It allows demonstration to all interested parties, in particular the Reliability & Network Planning Panel (RNPP) and the Office of the Tasmanian Energy Regulator (OTTER), that properly coordinated, rigorous and comprehensive network planning processes are being followed by Transend and Aurora.

1.2 APR Process and Planning Statement Figure 1 provides an overview of the annual planning review process.

2004 Annual Planning Review

A key process input is the latest System Controller Planning Statement, required by Clause 5.6.2 of the TEC to be produced and published by 31 December each year. The outcomes of the APR process are in turn inputs into the next Planning Statement. The APR process is also an intrinsic part of the development of Transend and Aurora Asset Management Plans, which are required to be prepared as a condition of their Licences.

Aurora load forecasts System Controller Planning Statement Inputs Aurora distribution proposals Planned transmission developments Annual Planning Asset replacement/refurbishment plans Review

Identify need for and timeframes to achieve

New or modified Network Augmentations connection points

Transend/Aurora Regulatory Test connection agreements

Figure 1 Annual Planning Review Process Outline With regard to Figure 1, Aurora distribution proposals take account of regional load growth, network poor performance issues and customer supply issues and identify potential impact on connection points. Development options, which can potentially lead to new or modified connection points and transmission network augmentations, are worked through in conjunction with Transend.

1.3 National Electricity Market Context The entry of Tasmania into the National Electricity Market (NEM) was discussed particularly having regard to the TNSP annual planning requirement under the National Electricity Code (NEC) Clause 5.6.2A and the DNSP planning obligations to be met under OTTER in the new environment. The importance of maintaining the current close working relationships developed between Transend and Aurora was emphasised and a proposal for a continuing joint planning process was tabled and discussed and is included as Appendix L. The unique situation in Tasmania compared to other Australian States whereby the asset boundaries between Transend and Aurora are such that Aurora as the DNSP, does not own or have control of the high voltage (HV) circuit breakers on their feeders emanating from terminal substations also mandates the need for a very close planning relationship. It was highlighted that the new operational environment under NEM will present greater challenges in the implementation of planning outcomes because of the anticipated higher intolerance to plant outages.

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2. 2003 Planning Statement The System Controller presented an overview of the 2003 Planning Statement, highlighting issues relevant to the APR process. The presentation slides are included as Appendix C. If further detail is required in regard to the summary points below or information presented in the slides, the full 2003 Planning Statement can be accessed on Transend’s web site: www.transend.com.au. The following are some relevant key issues summarised in the Planning Statement and touched on in the presentation: • Load forecasts: Forecasts show natural gas and Basslink as having a significant economic effect that will be reflected in increased electricity demand. This effect is particularly evident when comparing the extrapolated and econometric forecasts for electricity sales. The extrapolated forecast does not specifically allow for these infrastructure developments and forecasts an average growth of 1.23% per annum to 2018, whereas the econometric forecast, which does allow for the economic effect of these developments, forecasts a growth of 1.58% per annum. The 2003 extrapolated forecast is higher than the 2002 extrapolated forecast mainly because of a change in the forecasting method. • Generation: The large number of proposals for new generation publicised in 2002 were not repeated this year. Progress in bringing proposals to fruition generally seems to have slowed. The main new generation is the extension of the Woolnorth wind farm. • Supply-Demand balance: The generation capacity supply-demand balance suggests that there will be sufficient generation capacity for many years to come. This view of course needs to be moderated by the fact that some generators will inevitably be out of service for periods for maintenance or due to lack of water in the particular storages on which hydro generators depend. The electrical energy supply-demand balance, although apparently still adequate for the short term, shows a less optimistic picture with energy capacity without Basslink fully utilised around 2013 and possibly much earlier depending on future rainfall yields. • Transmission system: Major matters include: o The transmission network supplying southern Tasmania is subject to significant constraint. Augmentation of the southern network by 2006/07 is being investigated to overcome some of these deficiencies. o A number of transmission lines have little or no capacity to transport electricity during periods of high ambient temperature. This can place severe restrictions on the supply of electricity on such occasions. o A new 110 kV transmission line from Woolnorth to Smithton to connect a further 54.25 MW of wind. o A new 110 kV substation is to be constructed at Mowbray. o Tasmania's last 88 kV transmission line supplying Scottsdale and Derby is to be replaced with 110 kV lines in 2004/05. o The connection of Basslink towards the end of 2005 will have significant impacts on the operation of the transmission system.

2004 Annual Planning Review

• Wind generation: Interest in wind generation in Tasmania continues to grow. Proposals are now in place for developments totalling more than 500 MW. However, only the second stage of the Woolnorth wind farm at 54.25 MW is proceeding at this stage. Studies have shown that there are issues in respect to frequency control that need to be addressed, for large amounts of low inertia generation. • Substation loadings: A figure showing substations exceeding firm capacity for the years 2005/06, 2010/11 and 2016/17 is included in Appendix C. 3. Aurora Load Forecasts, Demand Side Management (DSM) & Embedded Generation

3.1 Aurora Load Forecasts Aurora outlined their approach to the development of load forecasts applying their new model which is based on forecasting every two years but recognising that some issues will require annual review. Current and comprehensive load forecast data was provided to Transend which was used as the basis of updating the substation capability issues table (Table 3 below). An overview of the Aurora approach to the development of load forecasts is included in their presentation to the meeting (Appendix D) and which also highlights substation and regional load issues. The current forecast followed from a number of steps: • A 10 year load forecast was produced in 2002 including: o terminal substation forecasts o distribution zone substation forecasts o regional forecasts o with gas and without gas scenarios • In 2003 an annex to the 2002 load forecast report was produced. • The 2003 actual data was compared with the 2002 forecast data to provide a “sanity check”. • To determine the accuracy of the forecast the substations were separated into 3 pools: o Pool I: maximum 10% deviation from forecast – included 24 substations o Pool II: maximum 20% deviation from forecast – included 11 substations o Pool III: deviations from forecast greater than 20% - included 17substations A number of the large deviations relate to relatively small loads and generally reasons can be identified. • Taking into account explainable differences, it is considered that the comparison of the 2003 actual data with the forecast data of each terminal substation indicates that the 2002 forecast is adequate for planning purposes.

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• With regard to the Pool III substations, each of those listed will be assessed during 2004 to determine appropriate planning action with specific attention made within the 2004 load forecasting exercise. Some discussion ensued on the veracity of the model and the appropriateness of sanity testing. Aurora advised that checking of forecast against actual is a lengthy exercise and 2002 was the first time that this had been comprehensively carried out. An independent consultant had been engaged to do this work and it is planned to test the model and the data which comes from it every two years. Some regional load issues identified were: • East Coast: significant load growth which tends to be localised, e.g., St Helens • Hobart: collective growth which is confused to some extent due to Hobart Area Supply Upgrade (HASU) works. • Kingston/South: localised growth concentrated in the Kingston/Electrona area • Sorell/Tasman Peninsula: localised growth in Sorell to Primrose Sands areas • Launceston: general growth in urban and rural areas, wood heater buy-back scheme is having an effect. • Deloraine/Westbury: likelihood of point load of 10 MW • North West region: greater than expected increase in customer generated work. State- wide customer generated work has more than doubled but more so in the North West.

3.2 Demand Side Management (DSM) As reported last year, studies have highlighted that a joint inter entity approach is required to deliver any further progress in system solutions. DSM is not considered to be an option for managing network constraints or asset availability problems in the short to medium term, however, DSM may be considered as a longer term future load management option with long term benefits to Code Participants. Aurora continues to promote individual customer load management practices.

3.3 Embedded Generation Table 1 summarises the distribution system embedded generation presented by Aurora, either connected or at the application stage: Woolnorth Windfarm which was previously connected to Smithton Substation via a 22 kV feeder is now connected to the transmission network at 110 kV.

Table 1. Embedded Generation

Location Details Development Stage Connecting Substation Parangana Mini hydro (0.75 Connected Local distribution feeder MW) Morinna Mini hydro Connected Local distribution feeder

Heemskirk Wind Application Zeehan W. Coast Meander Mini hydro Application Local distribution feeder Dam

2004 Annual Planning Review

Location Details Development Stage Connecting Substation Winnaleah Mini hydro Application Local distribution feeder Dam Trevallyn Mini hydro Application Local distribution feeder? Dam Jackson St Refuse area Application Local distribution feeder biomass McRobies Refuse area Application Local distribution feeder Gully biomass There are 11 possible locations for enquiry phase proposals. 4. Overview of Aurora Regional Issues and Strategies Regional issues are highlighted in the Aurora presentation (Appendix D) and also incorporated in the meeting “Issues and Actions Summary” included as Appendix M. Key issues identified included: • Need for additional feeders • Poor reliability of long feeders with urban and rural loads – need to split existing feeders • High localised load growth • Need to replace aging assets • Lack of distribution system transfer capability. From a distribution perspective, Aurora identified the following as state-wide critical contingencies: • Loss of a terminal substation supplying major urban loads e.g., Launceston, Burnie, Devonport, Kingston, Hobart (eastern & western shore). • Loss of a terminal substation supplying isolated rural loads e.g., St Marys, Kermandie, Sorell, Queenstown, Scottsdale, Derby, Railton, New Norfolk and Rosebery. • Southern 110 kV transmission constraints. • Bushfire – nearly half of the distribution feeders traverse high fire danger areas. In regard to connection point reliability, Aurora’s records indicate that there were a substantial number of transmission line outages over the year resulting in customer interruptions.

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5. Aurora Major Capital Works Program Table 2 summarises the current Aurora development plans:

Table 2. Current Distribution Development Plans

Plan Description Hobart Area Supply Upgrade (HASU) Upgrade of the existing 22 kV urban zone substations to 33 kV (to 2005), supply areas includes CBD, northern suburbs and eastern shore areas. Greater Launceston Area Development Norwood, Trevallyn, Mowbray, George Town, Plan (GLAD) Hadspen Substations including East and West Tamar, Westbury, Longford rural areas. Scottsdale & Derby Area Development Scottsdale, Derby and North East area including Plan (SAD) the distribution feeder links to George Town and St Marys. Hobart Eastern Shore Development Plan Geilston Bay and Bellerive Zone Substations and (HES) future Cambridge Zone Substation and Rokeby Substation. Kingston & Electrona Development Plan Kingston and Electrona area and transfer capacity. (K&E) Aurora is also undertaking a Reliability Improvement Program which embraces: • The protection upgrade project – looking at full protection of the feeder from the breaker to the fuse to ensure the correct protection and up to date technology on 4 feeders over the next 5 years. This may require Transend to update protection on all feeders out of terminal substations. • Protection settings while working near lines project. • Dead times setting adjustment project – issue of definite time protection in terminal substations not being compatible with downstream inverse time devices. • Remote control and monitoring of Nulec reclosers project. • Remote control of remote “significant” areas project. The areas are Tasman Peninsula, Midlands, Deloraine, Bruny Island and Wynyard. • Feeder trunk upgrade project – first main part of the feeder. • Mobile generation units (2) – considering 1x500 kW at 11 kV and 1x1.0 MW at 22 kV mainly for planned interruptions. The Aurora program of works also includes: • System development focus areas - HES • Zone substation alterations o HASU continues o Zeehan upgrade o New Norfolk Zone upgrade o Removal of 22 kV rural (Midlands South area)

2004 Annual Planning Review

• Cable ratings reviews – to develop better understanding of ratings and hence better utilisation of cables. • Non-demand replacement programs • Customer generated work – as stated previously, there has been a substantial increase in this work which is likely to continue. 6. Aurora Modifications to/and New Connection Points Proposed modifications and new connection points from an Aurora perspective in the 1 to 2 year and 3 - 5 year timeframes are listed in Appendix D and also in the “Issues and Actions Summary (Appendix M) Additional comment: • Timing on Stage 2 of Mowbray: Stage 1 is March 2005, however distribution capability to link all terminals is getting more difficult (only limited transfer capability) and Hadspen only provides limited relief. Strong indication for Mowbray Stage 2 to follow in the next few years. • Timing of Hadspen and Deloraine: Indication that Hadspen needed in the next 4 years, Deloraine Stage 1 two years after, Deloraine Stage 2 two years after that, however studies are still to be finalised 7. Connection Agreement Development (Transend) Transend provided a progress update on preparation of Connection Agreements required as a precursor to NEM entry. The presentation is included as Appendix E. A brief update was also included on current wind developments. The form of the Connection Agreements is a standard core commercial contract with addenda covering issues specific to each connection point. New connection points will simply be added under a Deed of Amendment covering commercial changes. Running changes will be accommodated by using a format which does not embed “dynamic” data in the Connection Agreement itself. Items requiring regular change can be changed by mutual agreement by exchange of letters. This “dynamic” data is held in Site Data Sheets (1 per connection site). The following types of Connection Agreement will be required: • A new Network Connection Agreement (NCA) for all distribution connections and embedded major industrial loads. • An updated CANS1 agreement for Direct Connect customers. • A new Connection Agreement for Direct Connect customers to be put in place when existing Power Supply Agreements expire and the customer is directly connected to the TNSP. The target for completing Connection Agreements is July 2004.

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2004 Annual Planning Review

8. Transmission System Constraints Impacting on Connection Points (Transend) A list of transmission network constraints which impact on network connections was presented by Transend and this presentation is included as Appendix F. The transmission constraints together with the strategies and actions to remove them are also incorporated in the “Issues and Actions Summary”, Appendix M. Some comment from the meeting: • Risdon circuits upgrade to 900C does not remove the non-firm capability of the corridor, but is seen as a prudent interim step. • Until the Southern Power System Security Project is implemented, radialisation on the eastern shore will be necessary. Existing Tarraleah circuits are assisting but are substandard. Heavy reliance is on Gordon Power Station to support load and Liapootah – Chapel St becomes an issue. • Tarraleah – New Norfolk No. 1 was originally proposed to be de-commissioned but it is now considered prudent to upgrade and retain this line. • A lot of upgrade work will extend beyond NEM entry when NEMMCO will have responsibility for power system security. • It was noted that upgrade of Hadspen – Trevallyn No. 1 is not in the program given that load in the area is rapidly increasing and that Mowbray will not alleviate the problem. Trevallyn generation may need to be constrained on at times. • Unless generation is scheduled on it can’t be relied on for support. It is important to have required generation Network Support Agreements in place. 9. Adequacy of Existing Connection Points (Transend) Transend made a presentation to the meeting which is included as Appendix G which identifies connection points with existing capacity issues and those where mitigation measures have been applied. These have also been incorporated in the “Issues and Actions Summary” table, Appendix M. Compared to 2003 APR, George Town and Smithton no longer experience overloads due to completed upgrades. Some comment from the meeting: • Norwood/Trevallyn load shedding arrangements: involves splitting the bus at Norwood and rotational load shedding applied to various feeders. It is now planned and controlled by Operations rather than automatic shedding. • Wesley Vale: loading is exceeding the half hour emergency rating and consideration is being given to implementing an automatic load shed arrangement. Alternatively, discussion with the customer to take place with a view to reducing peak. Table 3 provides a summary of the connection points where actual or forecast demand exceeds the transformer N-1 four hour emergency rating or equipment ratings. The areas of concern are highlighted in green. The Table also identifies the particular equipment limitations and the actions proposed to address them. This table is also incorporated in the “Issues and Actions Summary”, Appendix M. © Transend Networks Pty Ltd 2004 Page 9

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2004 Annual Planning Review

Aurora 2003 Load ForecastAurora 2003 Load Forecast Aurora 2003 Load Forecast Aurora 2003 Load Forecast Emergency N-1 ACTUAL MD COMMENTS ACTION (with Gas) (no Gas) (with Gas) (no Gas) 4hr Rating Substation MVA EQUIPMENT LIMITATION To 30 June 2003 2008/2009 2012/2013

Transformer Equipment MVA Trans % Equip % MVA Trans % Equip % MVA Trans % Equip % MVA Trans % Equip % MVA Trans % Equip %

Creek Road* 22 kV 60 30 44.5 74 148 70.4 117.33 234.67 81.8 136 273 68.5 114 228 83.8 140 279 - Transend is currently cutting over its 22 kV switchgear to 33 kV equipment. -

Electrona may be able to have more load transferred to it. Transformer emergency Aurora to carry out distribution studies regarding load transfers betweeen Kingston and Electrona by end of 2004. After reviewing the Kingston 42 42 33.8 81 81 43.1 103 103 43.1 103 103 48.5 116 116 48.5 116 116 11kV @ 2000A (38MVA) rating has been uprated from 35MVA to 42 MVA. 2004 Aurora Load Forecast, Transend will determine timing of second Electrona transformer.

New 33kV switchgear to be installed as part of the switchgear replacement program. Lindisfarne Substation load to be reconsidered Lindisfarne 54 54 48.8 90 90 48.7 90 90 57.1 106 106 47.3 88 88 58.5 108 108 - Equipment on the LV side have been uprated from 30 MVA to 54 MVA. after Aurora studies regarding transfers between Lindisfarne and Rokeby are completed at the end of 2004.

All CB's and CT's on the LV side of T1 & T2 are After Aurora's zone substations have been upgraded - North Hobart to be Aurora agreed to confirm load forecasts taking into account Hobart area upgrade program and possible load transfers to West North Hobart 72 60 71.4 99 119 61.1 85 102 71.6 99 119 59.3 82 99 73.4 102 122 rated at 1600A (30 MVA). Cable on the LV side of examined in terms of load. Actual MD for 2003 exceeds equipment ratings. Hobart or other zone substations. Aurora and Transend are to monitor loads on North Hobart. T1&T2 rated at 1575A (30 MVA).

Offloading of Norwood Substation is proposed by new Mowbray Substation Review timing of Hadspen 22kV connection point with Aurora. Appears timing will need to be advanced. Project justification and Norwood 60 60 71.3 119 119 80.0 133 133 93.2 155 155 80.6 134 134 98.6 164 164 - together with proposed 22kV connection point at Hadspen. Connection Application will be required for new connection point at Hadspen.

Average load on Palmerston is less than 4MVA and peaks about 9MVA. Proposed Hadspen 22kV connection point will offload to some extent. Two Palmerston 9 9 9.3 103 103 15.3 170 170 15.3 170 170 16.4 182 182 16.4 182 182 - Joint Aurora/Transend strategy to be developed. transformers radially supply the load, each transformer is rated at 7.5/9 MVA and a 25/30 MVA.

Queenstown CMT Contractual arrangements with EI customer is to be reviewed. Increase in firm 14 14 19.4 139 139 19.6 140 140 19.6 140 140 19.6 140 140 19.6 140 140 - - 11kV capacity of Substation is to be considered.

CT's on the LV side of T1 and T2 are rated at The MD displays 37.7 MVA however this was seen as a spike and the actual MD Rosebery 44kV 30 30 37.7 126 126 19.5 65 65 19.5 65 65 19.5 65 65 19.5 65 65 - 400A (30MVA) is below 20 MVA.

Significant load increase in 10 year period. Proposed 2x5MVAR capacitor banks Sorell 27 27 23.8 88 88 29.6 110 110 29.6 110 110 33.4 124 124 33.4 124 124 - Joint Aurora/Transend strategy to be developed. to be installed at Sorell Substation.

St Marys 12 12 11.9 99 99 19.8 165 165 19.8 165 165 23.7 198 198 23.7 198 198 - Significant load increase in 10 year period. Review 2004 Aurora Load Forecast. Joint Aurora/Transend strategy to be developed in 2005.

Offloading of Trevallyn Substation is proposed by new Mowbray Substation 2004 Trevallyn** 120 114 148.0 123 130 131.0 109 115 152.6 127 134 131.9 110 116 161.4 135 142 22kV CT and cables limitation Mowbray Substation Project is in implementation stage. together with proposed 22kV connection point at Hadspen .

Review 2004 Aurora Load Forecast. Joint Aurora/Transend strategy to be developed. Investigate application of a 30 minute Triabunna 9 9 10.9 121 121 9.1 101 101 9.1 101 101 10.5 117 117 10.5 117 117 - Significant load increase in 10 year period. emergency rating. Possible need for load shedding (reduction within 30 minutes).

CT's on the LV side of T3 & T4 are rated at Substation equipment has been given 28MVA 30 minute rating. Australian Paper Wesley Vale 28 28 29.2 104 104 28.9 103 103 28.9 103 103 29.9 107 107 29.9 107 107 1200A (22MVA). Cable on the LV side of T3 & T4 May require automatic load shedding to be put in place. To be reviewed with EI customer. to manually shed load to 25MVA as required. rated at 1340A (25MVA)

* Creek Road currently being cutover from 22 kV to 33 kV equipment. ** Trevallyn based on 2 hour emergency rating Note: Where equipment rating shown to be equal to transformer emergency rating, actual equipment rating may be higher than shown. Table 3 Terminal Substations Where Capacity Exceeded

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10. Transmission System Refurbishment/Replacement Projects at Connection Points (Transend) The Transend presentation on connection point replacement and refurbishment work is included as Appendix H and is also incorporated in Appendix M, “Issues and Actions Summary”. Additional comment: • HV switchgear replacements: replacement at Wesley Vale, Port Latta and Savage River has been recommended by an independent consultant from an asset management risk perspective. • Que Substation: the transformer is in poor condition, however, Transend is obligated to maintain a connection point. Planned replacement with a transformer ex-system until long term future is known. • Queenstown Substation: T3 and T4 are in very poor condition both electrically and physically. Replacement will occur along with redevelopment work in progress. The issue of supply in the event of a transformer failure was raised – would require running non-firm for 2 weeks with a transformer relocated from Kermandie. • Transformer refurbishments take place as required based on condition; on-line conditioning of transformers is being investigated. • Contingency planning is taking place in conjunction with Aurora, activities include: o Management of spare transformers and covering of unique transformers, e.g., 44 kV at Rosebery where the back-up is the Devonport transformer with a 44 kV tap. o Management of an HV switchboard failure – failure is low risk but can have a long term effect 11. Transmission System Projects in Progress (Transend) Transend reported on transmission system projects in progress and this presentation is included as Appendix I. Works identified have also been included in Appendix M, “Issues and Actions Summary” where appropriate. Additional comment: • In regard to the new double circuit to Scottsdale/Derby, it was queried as to whether consideration had been given to closing the loop to provide firm supply to the East Coast, particularly having regard to the continued high load growth. The advice was that Transend and Aurora would work together to look at possible scenarios and their justification. 12. Southern Power System Security Project (Transend) Transend presented an update on the various elements making up the Southern Power System Security Project and the presentation is included as Appendix J. The various elements of the Project have also been incorporated in Appendix M, “Issues and Actions Summary”. Waddamana has been selected as the preferred route for the double circuit 220 kV circuit option which will tee into the Liapootah – Palmerston lines.

2004 Annual Planning Review

An alternative option to provide network support by way of an embedded gas-fired power station, is also currently being pursued. If viable, it is planned that this would entail a minimum of 40 MW to be installed at Bridgewater by winter 2006 with a network support agreement. 13. Transmission System Capital Works Program (Transend) Transend presented an outline of its capital works development program and the processes involved in its development. This presentation is included as Appendix K, appropriate elements of the program have also been incorporated in Appendix M, “Issues and Actions Summary”. Planned capital expenditure over the next five and a half years is approximately $300 million. Transend’s requirements for development capital expenditure are principally driven by five elements as identified in Figure 2. As also indicated, the two processes of the Annual Planning Review and the Annual Planning Statement issued by the System Controller facilitate coordinated and effective planning.

Customer Generation Load Code Security Developments Developments Forecasts Compliance Criteria

Planning Planning Review Statement

System Analysis

Development Capital Expenditure Forecast

Figure 2: Key Drivers: Development Capital Expenditure Forecast As further elaborated on at the end of Appendix K, Transend adopts a probabilistic approach to forecasting development capital expenditure in the light of the significant uncertainty in load and generation forecasts. Projects are identified by undertaking detailed load flow studies and applying Transend’s security criteria. The projects are categorised as either Fixed (almost certain to proceed – 100% probability) or Variable (Probabilities vary from 10% to 80% and typically depend on specific customer-driven developments). Development expenditure is only one aspect of the capital program which also includes refurbishment and replacement work covering areas listed in the presentation in Appendix K. Additional comment: • The need to appropriately coordinate the processes for planning and regulatory approvals was highlighted in order to efficiently achieve project delivery.

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2004 Annual Planning Review

• It was queried as to whether or not a previously mooted Farrell – Burnie 220 kV link was now off the agenda: It is still on the agenda but outside the current 5-year revenue cap period. • Network planning and security criteria: Transend has developed a set of criteria as a basis for establishing its capital development program and expenditure forecasts which were a key part of its ACCC Revenue Application. Agreed criteria are seen as essential to the effective operation of Transend’s business. Formal establishment of planning and security criteria by the RNPP and the Regulator is a recognised priority. 14. Conclusion The Annual Planning Review meeting this year again provided the opportunity for key personnel in Transend and Aurora to share information and views on their respective issues and current planning activities. The relationships and discipline developed through the joint planning activities and the governing regulatory process, will be of even greater importance in the future with the change in the regulatory environment with Transend subject to the NEC Annual Planning Review requirements and Aurora being governed by the Tasmanian Distribution Code (TDC). It is not clear at this stage what the TDC planning requirements will entail. In regard to the NEC requirements, Transend is required to publish an Annual Planning Report by June each year and it is anticipated that another Annual Planning Review round will occur next year. Having regard to the extent of 11 kV and 22 kV assets owned by Transend, it is seen to be particularly important that a process similar to the current one should continue into the future. A proposal for a joint planning process is outlined in Appendix L. Cooperative planning and regular liaison is also a requirement of the new Connection Agreements. While network planning is mandated, it has long been recognised that it needs to be done as a sound business practice. This report attempts to capture the essence of the discussions that took place at this meeting and also incorporates information from the various presentations that were made. To facilitate the regular ongoing process of consultation and review between Transend and Aurora, an “Issues and Actions Summary” table has been developed incorporating the various issues and actions identified out of the APR meeting and included in this report. This summary table is included as Appendix M.

2004 Annual Planning Review

Appendices

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2004 Annual Planning Review

Appendix A. 2004 APR Meeting Agenda

Date: Friday 2 April 2004 Time: 9.30 am Venue: Rydges Hobart, Argyle Street, North Hobart. Attendees: Michael Hunnibell, Transend Dennis Crawford, Transend Sead Pasalic, Transend Alastair Pinkard, Transend Daniel Capece, Transend Dave Allen, Transend Wayne Tucker, Transend Ian Hubbard, Transend Nils Blichfeldt, Transend Selina Lyons, Transend Matthew James, Transend Anita Zelazo, Transend Minutes Barry Willing, Acutel Facilitator Shilpa Karri, System Controller Ian Gibb, Aurora Energy Andrea Dickinson, Aurora Energy Rodger Kruse, Aurora Energy Henk Kremer, Aurora Energy Matthew Taylor, Aurora Energy? Jane Hyland, OTTER Peter Greenwood, RNPP Paul White, RNPP adviser Richard Sulikowski, EMB Apology Item Who Duration (min) 1. Welcome and Introduction Mike Hunnibell 5 Meeting objectives Dennis Crawford 10 Structure of the meeting Barry Willing 5 2. 2003 Planning Statement Shilpa Karri 20 • Overview of 2003 Planning Statement • Transmission, System and Connection point adequacy issues • Specific issues raised by System Controller Discussion 15 Morning Tea 1030 - 1045 15 3. Aurora Distribution Regional Issues and Developments Ian Gibb 45 • Substation load forecasts o Including consideration of DSM and impact of natural gas • Overview of regional issues & strategies • Embedded generation • Proposals for modifications to existing connection points and establishment of new connection points • Distribution system capital works program Discussion 30

2004 Annual Planning Review

4. Connection Agreement Issues and Processes plus wind update Dave Allen 20 Discussion 10 5. Review of transmission system constraints that impact on Alastair Pinkard 15 connection points Discussion 10 Lunch 1300 - 1345 6. Review of adequacy of existing connection points on the Daniel Capece 15 transmission system

Review and prioritisation “Terminal Substations Where Capacity All 15 Exceeded” spreadsheet 7. Transmission system refurbishment/replacement projects at Wayne Tucker 15 connection points Discussion 10 8. Transmission system existing projects - Update Sead Pasalic 15 Discussion 10 1505 - 1510 break 5 9. Southern Power System Security Project - Update Selina Lyons 10 Discussion 10 10. Transmission system capital works program Dennis Crawford 10 Discussion 10 11. National Electricity Market Entry 2005 • Future transmission planning Richard 10 Sulikowski (Mr Sulikowski unable to attend, presentation to be rescheduled)

Discussion All 10 12. Other matters: All 10 • Draft network planning and security criteria • Emergency generation • Other 13. Discussion on timing of future meetings and the composition All 5 and format of future APR's 14. Summary and close Mike 5 Hunnibell/Dennis Crawford

1620 finish

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2004 Annual Planning Review

Appendix B. Electricity Supply Industry in Tasmania This section briefly outlines the key elements of the structure of the electricity supply industry in Tasmania: Tasmanian Electricity Code The Tasmanian Electricity Code (TEC) is based substantially on the National Electricity Code (NEC) with appropriate amendments made to reflect the differences between the present structure of the supply industry in Tasmania and the national electricity market (NEM). Tasmania’s electricity supply industry will be administered under the NEC when Tasmania enters the NEM. Office of the Tasmanian Energy Regulator The Office of Tasmanian Energy Regulator (OTTER), or the Regulator, is responsible for the administration of the TEC. The requirements of the Regulator include monitoring and reporting on TEC compliance and adequacy of the TEC, enforcing the TEC, establishment of procedures for resolution of disputes concerning provisions in the TEC, management of changes to the TEC, establishment of procedure for consultations in respect of the manner in which the Regulator fulfils its functions and obligations under the TEC. Reliability and Network Planning Panel The Reliability and Network Planning Panel (RNPP) is established by the Regulator to perform such tasks as defined in the TEC and to report to the Regulator on overall power system reliability matters. Such tasks include: monitoring and review of the industry in terms of power system reliability; determining on the advice of the System Controller, the power system security and reliability standards; determining guidelines for the System Controller’ powers to issue directions in connection with maintaining or re-establishing the power system in a reliable operating state; reviewing cost benefit analyses of proposed network augmentations and other capital expenditure projects submitted by NSPs and making recommendations to the Regulator on the available options to overcome a network constraint or inadequacy; and to make recommendations to the Regulator on Code changes or any other matter which the RNPP considers necessary. System Controller The System Controller is responsible for maintaining power system security and for arranging the dispatch process. The System Controller facilitates and operates the dispatch process efficiently in accordance with the TEC, and is required to achieve and maintain a secure power system as specified in the TEC, and to assist in power system planning in relation to the industry. The System Controller is bound to comply with and perform any duties and obligations imposed by the TEC. Network Service Providers Network Service Providers (NSPs) engage in activities associated with owning, controlling and/or operating a transmission system or a distribution system. A licence issued in accordance with the ESI Act is required for provision of such services. An NSP must abide by the guiding principles set out in the TEC and must comply with all relevant power system performance and quality of supply standards. The processes to be followed by the NSPs for connecting other Code Participants to the network and the regulatory requirements for developing the network are set out in the TEC.

2004 Annual Planning Review

Transend Networks Pty Ltd (Transend) Transend is Tasmania’s only Transmission Network Service Provider (TNSP) and is responsible for the connection and development of the transmission network and major connection assets. Aurora Energy Pty Ltd (Aurora) Aurora is presently Tasmania’s only Distribution Network Service Provider (DNSP) and electricity retailer and is responsible for connections and the development of the distribution network and connection assets.

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2004 Annual Planning Review

Appendix C System Comparison of extrapolated and Controller Presentation on the econometric forecasts 2003 Planning Statement 13,000 12,500 12,000

11,500

11,000 MWh 10,500

10,000

9,500

9,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Extrapolated forecast Econometric forecast

Forecast summer demand

2200

Issues 2000

1800 • Energy and demand forecasts 1600 • Generation developments MW • Supply demand balance 1400

• Water storages 1200

• Transmission system constraints 1000

00 01 02 3 05 06 07 8 11 2 3 16 7 8 00 00 01 • Transmission system augmentation 20 20 20 2 2004 20 20 20 2 2009 2010 20 2 201 2014 2015 20 201 201 • Binding constraints Median case High c as e Low case • Marginal loss factors • Wind generation issues • Substation loadings

Forecast winter demand

2700

2500

2300

2100 MW 1900 1700 1500 Refer to the System Controller’ 2003 1 3 5 6 8 0 2 4 6 8 000 0 0 0 1 011 1 1 1 1 2 20 2002 20 2004 20 200 2007 200 2009 20 2 20 2013 20 2015 20 2017 20 Planning Statement for detail on these Median case Hig h c ase Low case issues

2004 Annual Planning Review

Proposed generation developments Committed Robbins Isl. ~140 MW Advanced Publicly announced Jims Plains ~ 60 MW Basslink Musselroe ~140 MW Woolnorth Circular Head 630 MW Export Stage 2 ~ 54.25 MW 300 MW Import Winnaleah ~ 1.5 MW Stage 3 ~ 74/84 MW Bell Bay Energy Equipment ~ 20 MW Stage 2 ~ 234 MW Trevallyn ~ 15 MW Trevallyn ~ 0.3 MW Meander ~ 1.9 MW

Heemskirk ~160 MW APW/Marubeni ~40 MW

Butlers Gorge ~ 2.2 MW

Pasminco ~10 MW

Southwood ~ 37 MW

Page 22 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

Supply demand balance Projected excess generator capacity

1000 900 800 700 600 500 400 MW capacity 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Excess capacity Excess capacity with Basslink

Supply demand balance Projected excess energy capacity

5000

4000

3000

2000

1000 GWh 0 2003200420052006200720082009201020112012201320142015201620172018 -1000

-2000

-3000

Median rainfall Low rainfall High rainfall Median rainfall with full Basslink contribution

Water Storages

100 90 80

l 70 60 50 40 percentage fu percentage full percentage 30 20 10 00

7 8 9 0 1 2 4 6 82 3 1 6 37 918 8 8 9 9 9 93 9 95 900 9701 90 99 0004 005 020 0 990 0 0 00 00 00 0 000 11986 1919 199219 199319 199419 199519 191996 191997 191998 191999 192 192 1920 192 22 22 220 22

2004 Annual Planning Review

Tripping Sheffield ŠBurnie 220 kV circuit can overload Sheffield ŠBurnie Constraints on and Paloona ŠUlverstone 110 kV W oolnorth generation to Tripping Sheffield ŠDevonport may circuits. Corrected by closing maint ain s ecure transfer overload Sheffield ŠWesley Vale. Burnie ŠFarrell link. 6.7.7 Transmission on Bur nie ŠSmithton C orre ct ed by up grad e of circuits. 6.7.8 circuits. 6.7.6

SMITHTON 220 kV constraints DEVONPORT 110 kV Supply to Temco is not GEORGE TOWN secure in summer. 6.7.10

BURNIE

Summer transmission TREVALLYN Changes in assessment method: constraints on Mersey Poatina constrained Forth generation. 6.7.9 on for reactive suppo rt SHEFFIELD HADSPEN at summer and winter 1. Use of ‘high case’ peak. 6.7.12 Stability and thermal constraints on rather than ‘median Farrell ŠSheffield transfer. Partly case’ NIEIR forecast; mitigated by closing PALMERSTON Tripping of FARRELL Hampshire link . 6.7.5 Palmerston ŠLiapootah 220ŹkV circuit may overload 2. Inclusion of advanced Palmerston ŠWaddamana 110 transmission projects; Lower Derwent kV circuit. 6.7.12 constrained on for LIAPOOTAH TARRALEAH- reactive support at TUNGATINAH Upper Derwent winter peak. 6.7.14 and CLUNY TEE constrained off by thermal WADDAMANA limits on circuits to New Norfolk and Waddamana. 3. Consideration of Partly mitigated by re- GORDON configuring 110 kV extreme summer NEW NORFOLK network. 6.7.15 Gordon constrained on for conditions. reactive support at winter BRIDGEWATER pe ak. Als o fo r de -icing o f Thermal constraints CHAPEL ST Gordon ŠChapelŹStreet limit sup ply to southern lines 6.7.17 RISDON load. 6.7.15

CREEK RD LINDISFA RNE Secure transfer through autotransformers not available at winter peak. 6.7.16 Tripping Risd on ŠLindisfarne circuit at summer or winter peak Secure supply to Risdon not will result in loss of supply to available at summer or Lindisfarne. 6.7.16 winter peak. 6.7.16

(Reference System Controller Planning Statement and following network diagrams)

Page 24 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

Sheffield–Burnie–Paloona– Hadspen–Trevallyn– Ulverstone–Emu Bay Mowbray–Norwood

EMU BAY ULVERSTONE MOWBRAY PALOONA

TREVALLYN BURNIE normally open HAMPSHIRE SHEFFIELD SAVAGE RIVER HADSPEN QUE

FARRELL NORWOOD

Sheffield–Devonport–Wesley Poatina–Palmerston Vale

DEVONPORT

WESLEY VALE PALMERSTON

SHEFFIELD POATINA TODDS CORNER

LIAPOOTAH

George Town–Comalco– Avoca–St Marys Temco–Starwood–Basslink

BELL BAY BASSLINK COMALCO RETAIL POWER TEMCO STARWOOD C1

GEORGE TOWN PALMERSTON AVOCA ST MARYS

C2 COMALCO

2004 Annual Planning Review

Upper Derwent– Lindisfarne–Rokeby–Sorell– Meadowbank–Waddamana Triabunna

PALMERSTON

POATINA LAKE ECHO TARRALEAH- BRIDGEWATER TUNGATINAH

WAD DAMAN A TRIABUNNA

BUTLERS GORGE MEADOWBANK SORELL NEW NORFOLK RISDON

BRIDGEWATER ROKEBY

RISDON LINDISFARNE

LINDISFARNE

Chapel Street–Creek Road– Knights Road–Kingston– Risdon–New Norfolk–Boyer– Kermandie–Electrona Lindisfarne LIAPOOTAH

CLUNY TEE WADDAMANA CHAPEL ST

RISDON GORDON NEW NORFOLK CREEK RD BRIDGEWATER

CHAPEL ST KNIGHTS ROAD RISDON

CREEK RD KERMANDIE KINGSTON LINDISFARNE ELECTRONA

Transmission augmentation

Projects in progress

Name or location Description Completion date Basslink Undersea DC cable to Victoria November 2005 Risdon substation 33 kV redevelopment June 2004 Waddamana Circuit breaker rationalisation 2004 Future projects (committed)

Name or location Description Completion date Sheffield–Wesley Vale Transmission line upgrade 2005-2006 Sheffield–Devonport Transmission line upgrade 2005-2006 Devonport–Wesley Vale Transmission line upgrade 2005-2006 Waddamana-Palmerston 110 kV transmission line replacement 2004 Liapootah-Palmerston Transmission line upgrade 2005 Mowbray New substation Burnie substation Capacitor installation 2005

Future projects (advanced)

Name or location Description Tarraleah-Liapootah New 220 kV connection Southern transmission Upgrade – see next slide Norwood-Scottsdale-Derby New 110 kV transmission line and removal of last 88 kV line George Town substation 220 kV bus rearrangement Sheffield substation Security improvement Various locations Capacitor installation

Page 26 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

Southern transmission upgrade Hadspen–George Town

750

TARRALEAH - LIAPOOTAH TARRALEAH- 700 LIAPOOTAH TUNGATINAH TUNGATINAH WADDAMANA 650 CLUNY 600 CLUNY WADDAMANA MEADOWBANK 550 GORDON MEADOWBANK 500

NEW NORFOLK MVA/MW GORDON 450 NEW NORFOLK BRIDGEWATER 400 CHAPEL ST BRIDGEWATER 350 300 RISDON CHAPEL ST 5 101520253035 Te mpe rature RISDON CREEK RD 15 min. thermal rating (MVA) Lower limit for instability (MW) CREEK RD Terminal equipment rating (MVA) Maximum available transfer (MW) LINDISFARNE Binding constraint LINDISFARNE

Before After

Palmerston–Hadspen Binding constraints

750

700

650 700 600

650 550

500 600 MVA/MW 450

550 400

350 500 300

450 250 5 101520253035 400 Temperature 5 101520253035 15 min. thermal rating (MVA) Lower limit for instability (MW) M aximum available transfer (MW) Binding Temperature

15 min. thermal rating (MVA) Lower limit for instability (MW) Maximum available transfer (MW) Binding constraint

Farrell-Sheffield binding constraint

Sheffield–George Town Liapootah–Palmerston (northward) 700 650

650 600

600 550

550 500 450 500 400 MVA/MW

450 MVA/MW 350 400 300 350 250

300 200 5 101520253035 5 101520253035 Te mpe rat ure Tempe rature

15 min. thermal rating (MVA) Lower limit for instability (MW) 15 min. thermal rating pre-winter 2005 (MVA) 15 min. thermal rating post-winter 2005 (MVA) Terminal equipment rating (MVA) Maximum available transfer (MW) Low er limit of instability - northw ard (MW) Terminal equipment rating (MVA) Binding constraint Maximum available trans fer - northw ard (MW) Binding constraint

2004 Annual Planning Review

Liapootah-Palmerston Gordon-Chapel Street (southward)

550 650

500 600

450 550

400 500

350 450 MVA/MW MVA/MW

300 400

250 350

200 300 5 101520253035 5101520253035 Te mpe ratu re Te mperat ure 15 min. thermal rating (MVA) Low er limit f or instability (MW) 15 min. thermal rating of pre-winter 2005 (MVA) 15 min. thermal rating post-winter 2005 (MVA) Terminal equipment rating (MVA) Maximum available transf er (MW) Low er limit of inst ability - so uthw ar d (MW) Terminal equipment rating (MVA) Binding cons traints Maximum available transfer - s outhward (MW) Binding constraint

Liapootah–Chapel Street Liapootah-Lindisfarne (northward) 800 650

600 700 550

500 600

450 500 400 MVA/MW 350 MVA/MW 400 300

250 300

200 5 101520253035 200 Te m pe ra tu re 5 101520253035 Te mpe rat ure 15 min. thermal rating (MW) Lower limit for inmstability - northward (MW) Terminal equipment rating (MVA) Maximum available transfer - northward (MW) 15 min. thermal rating (MVA) Lindisfarne N-0 auto-transformer capacity (MVA) Binding constraint Lindisfarne secure auto-transformer capacity (MVA) Binding constraints

Liapootah–Chapel Street (southward)

650

600

550

500

450

400 MVA/MW 350

300

250

200 5 101520253035 Tempe rature

15 min. thermal rating (MVA) Lower limit for instability - southward (MW) Terminal equipment rating (MVA) Maximum available transfer - southward (MW) Binding constraint

Page 28 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review Marginal Loss Factors with Basslink in service

1.101.10

1.05 1.05

F Risdon

ML 1.00 Burnie 1.00

0.95 0.95

0.90 12345678910111213141516 0.90 1 2 3 4 5 6 7 8Case 9Number 10111213141516 Case Number Risdon Burnie

Wind generation issues

• Opportunity for embedded wind generation limited • Need for increased reserve capacity from high inertia generators • Possible competition between Basslink import and wind generation • The participation of large-scale wind generation improved with scheduling of wind generation; • The participation of large–scale wind generation improved with higher inertia design • Rates of change of system frequency limited to 3 Hz/second • Possible reduction on fault levels • Frequency control requirements more onerous than fault level limitations • Voltage stability can be maintained

2004 Annual Planning Review

Wesley Vale Ulverstone Tungatinah Substations Triabunna Trevallyn St Mary's Sorell Smithton Scottsdale Savage River exceeding Rosebery Rokeby Risdon 22kV Risdon 11kV Railton Queenstown 22kV Queenstown 11kV

firm i Que Port Latta Palmerston Norwood North Hobart Newton Pumps 22kV capacity Newton Pumps 11kV New Norfolk Meadowbank Lindisfarne Term inal Substat Knights Road Kingston Kermandie Gordon George Town Fisher Emu Bay Electrona Devonport Derwent Bridge Derby Creek Road Chapel Street Burnie Bridge Water Boyer Avoca Arthurs Lake 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0

% overload beyond substation firm capacity

Year 2005/06 Year 2010/11 Year 2016/17

Page 30 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

Appendix D Aurora Presentation on Distribution Load Forecast, Network Issues & Developments

distribution network perspective

•Load forecast

• Distribution network issues

• Embedded generation

• Modified and new connection points

• Major capital works program

load forecast forecast accuracy

• In 2002 Aurora produced a 10-year load forecast report including: • To determine the accuracy of the forecast the – terminal substations forecasts – distribution zone substations forecasts substations were separated into three pools: – regional forecasts – Pool I: Maximum 10% deviation from forecast – with gas & without gas scenarios (24 substations fall into this pool) • In 2003 Aurora produced an annex to the 2002 load forecast report – Pool II: Maximum 20% deviation from forecast (11 substations fall into this pool) • The 2003 actual data was compared with the 2002 forecast data – Pool III: Discrepancies greater than 20% – the 2003 actual data being provided by Transend’s SCADA system and from the Meter Data Agent (17 substations fall into this pool) (Note: there were 7 substations where the SCADA data was not useable ) • The 2003 report being a “sanity check” of the 2002 forecast loads load forecast

2004 Annual Planning Review

% Difference between forecast and actual under forecastforecast

110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 -10.00 -20.00 -30.00 -40.00 -50.00 -60.00 -70.00 -80.00 -90.00 -100.00 -110.00 -120.00 -130.00 -140.00

% Difference (Winter) % Difference (Summer) over forecastforecast

load forecast

Page 32 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

Pool I Substations

Direct Connected Terminal Substations Zone Customer Substations Substations

(no distribution connection) Comalco 220kV St Marys North Hobart ** Bellerive Boyer Railton Savage River Geilston Bay ** Wesley Vale Burnie Derby East Hobart Kingston ** Devonport Bridgewater ** Meadowbank ** Queenstown 22kV Trevallyn Ulverstone Scottsdale ** Sorell Rokeby Kermandie New Norfolk ** Summer load forecast

Pool II Substations

Direct Connected Terminal Substations Zone Customer Substations Substations

(no distribution connection) TEMCO Risdon Tungatinah Lindisfarne Gordon ** Avoca ** George Town Knights Road Port Latta Electrona Norwood Chapel Street

** Summer

load forecast

2004 Annual Planning Review

Pool III Substations

Direct Connected Terminal Substations Zone Customer Substations Substations

(no distribution connection) Starwood Rosebery 22kV Wayatinah Derwent Park Rosebery 44kV Fisher West Hobart Newton Palmerston ** Newtown Triabunna Sandy Bay Emu Bay Claremont Waddamana

** Summer

load forecast

annex conclusion

• Comparison of the 2003 actual data with the forecast data of each terminal substation indicates that the 2002 forecast is adequate for planning purposes

• It is recommended that each of those terminals listed in Pool III are assessed during 2004 to determine appropriate planning action with specific attention made within the 2004 load forecasting exercise

load forecast

Page 34 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

station load issues

• Norwood (2) Ð •St Marys(1) •Avoca (2) •Palmerston (3) Ð • Triabunna (3) Ï •Sorell (1) • Kingston (1) •Electrona (2) Ð •Kermandie(1) • Knights Road (2) Ð

• Chapel Street (2) Ð 2002 to 2013 • George Town (2) + 20 % • Scottsdale (1) • Trevallyn (1) + 40 % • Bridgewater (1) • New Norfolk (1) • North Hobart (1) load forecast • Smithton (-)

connection point reliability issues

Recorded transmission interruptions at Terminal Substations

load forecast

2004 Annual Planning Review

regional load issues

load forecast

regional load issues

• East Coast - tends to be more localised, eg St Helens

• Hobart - collective growth & confusion with HASU reconfigurations

• Kingston/South - localised growth concentration in Kingston/Electrona area

• Sorell/Tas Peninsula - localised growth in Sorell to Primrose Sands areas

• Launceston - collective growth in urban & rural areas, buy back scheme effect

• Deloraine/Westbury - likelihood of point load increase of 10 MW

• North West region - greater than expected trend in customer generated work

• West Coast - very dependent upon EI customers

• Highlands - variations dependent on few customers load forecast

Page 36 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

regional load issues

Demand side Management (DSM)

• Recent studies highlighted a joint inter entity approach is required to

deliver any further progress in system solutions

• Not necessarily considered an option for managing network

constraints / asset availability in short – medium term

• Considered a longer term future load management

• Continue to promote individual customer load management practices

load forecast

statewide critical contingencies

• Loss of terminal Substation • supplying major urban loads • e.g. Launceston, Burnie, Devonport, Kingston, Hobart (eastern shore & western shore) • supplying isolated rural loads • e.g. St Mary's, Kermandie, Sorell, Queenstown, Scottsdale, Derby, Railton, New Norfolk and Rosebery • Southern 110kV transmission constraints • Bushfire distribution network issues

2004 Annual Planning Review

regional issues

Queenstown • Renewing feeder cables, • reducing number of feeders Strahan • Looking at portable generation / co-generation to support the load requirements Rosebery • Renison now sold (7 MW) may increase load • Pasminco mine • Heemskirk windfarm 44kV connection in doubt • Zeehan Zone upgrade requirement (age & safety)

distribution network issues

regional issues

Port Latta • additional feeder – split existing into 2 feeders Wynyard / Somerset • Additional feeder from Burnie • 5 – 10yrs may require injection point, due to growth Burnie • feeder reliability issue, additional feeders, split existing feeders to Wynyard & Penguin areas Ulverstone • additional feeders, coastal towards Devonport

distribution network issues

Page 38 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

regional issues

Devonport • additional feeders – urban, to Ulverstone & to East Devonport Wesley Vale • Dependent on growth, possibly not for 10 years Railton / Deloraine • feeder reliability issues, additional feeders, split existing • may require injection point George Town • Continue to transfer load onto George Town (5 – 6 MW) through distribution feeders extension for transfer and reliability distribution network issues

regional issues

Trevallyn / Mowbray / Norwood • Present demand and load growth, Palmerston • Temporary transfer from Trevallyn • Renewal of feeder cables in conjunction with switchgear upgrade Hadspen/Westbury • Possible injection points – under investigation

distribution network issues

2004 Annual Planning Review

Greater Launceston Area - Capacity Collective equation 214 MVA 220 MVA (firm) Trevallyn Substn 5 MVA transferred 6 MVA (in reserve) 142 MVA to George Town - 38 MVA (to Mowbray) Additional 5 MVA 2 MVA transferred 104 MVA to be transferred to Scottsdale (Lilydale) + 8 MVA (from Norwood) 112 MVA Mowbray 120 MVA (firm) Mowbray Substn = 8 MVA (in reserve) Trevallyn 38 MVA 40 MVA (firm) CBD with 2nd Tfr installed 1 MVA transferred 60 MVA (firm) to Railton 2 MVA (max)

2 MVA ? Interim contingency 4 MVA to be transferred Norwood Substn from Trevallyn to Palmerston 72 MVA Norwood - 8 MVA (to Trevallyn) Proposed 5 MVA max to Deloraine 64 MVA or proposed 15 MVA to Hadspen 60 MVA (firm) from Norwood (Trevallyn to Norwood) =(4) MVA (above firm) distribution network issues

Greater Launceston Area - Reliability Reliability equation 5 - Poor performing (red) East & West Tamar rural areas 5 - low performing (orange) • 2 feeders West & 1 East Tamar 15 - reasonable performance (green) • 2 of these supply urban areas before continuing on to these rural areas • All 3 feeders are long and exposed and have or do experience poor reliability

West rural areas East Tamar urban area • The Westbury ‘rural’ feeder • 3 feeder across the Tamar is long, heavily loaded and • 2 of these are the heavily loaded Trevallyn has / does experience below ‘Jumbo‘ feeders supplying the acceptable levels of Invermay & Mowbray areas reliability • Very limited back up to CBD from • Very limited back up from East Tamar area CBD Railton or Palmerston • The Longford ‘rural’ feeder is also long, heavily loaded and experiences lower Norwood to CBD levels of performance Norwood • Very limited back up to CBD West/South urban areas from Norwood • 3 of the feeders supplying the • Difficult to quickly transfer load urban areas experience below • Limited routes to establish acceptable levels of reliability additional feeder ties to CBD • Very limited back up from Norwood distribution network issues

Page 40 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

Greater Launceston Area – Stage 1 (Mowbray)

5 MVA transferred 2 MVA transferred to George Town to Scottsdale (Lilydale) Additional 5 MVA to be transferred Mowbray Substn stage 1 • 1 Transformer 60MVA but Trevallyn limited to 40 MVA because 1 MVA transferred of distribution tie between to Railton Trevallyn & Mowbray ie. 38 MVA (anticipated load) CBD Interim contingency 40 MVA (firm) 4 MVA to be transferred •Provides security to CBD & from Trevallyn to Palmerston East Tamar urban areas Norwood Interim contingency Reconfiguration of feeders and transfer of feeder loads between Trevallyn & Norwood distribution network issues

Greater Launceston Area – Stage 2 +

5 MVA transferred to George Town Additional 5 MVA to be transferred New feeder to supply along East & West Tamar Lilydale area New Deloraine Substn Relieving rural feeder reliability in Mowbray Substn stage 2 Deloraine area & some Trevallyn load • 2nd Tfr installed 38+ MVA Deloraine Trevallyn 60 MVA (firm) and an additional 2 feeders

CBD

Stage 2 requires 110kV link between Mowbray & Norwood Norwood New Hadspen Substn and the Trevallyn / Mowbray 40 Hadspen Relieving Norwood load MW distribution tie would not be required with assets being & Trevallyn urban/rural intergrated into the distribution Transfer of load required feeder reliability network feeder arrangements between Norwood & Trevallyn for effective use of Hadspen distribution network issues

2004 Annual Planning Review

regional issues

Scottsdale / Derby • Additional feeders during upgrade • Limited backup through the distribution feeders being established at same time St Helens area • East Coast load growth continues • Proposed additional feeder to St Helens Avoca / St Marys • Is St Marys at right location? • N-1 capability with single 110kV circuit?

distribution network issues

regional issues

Triabunna • Additional feeder required to split existing, • (to North, to Orford & 10MVA to Chip Mill) Sorell/Tas Peninsula • Additional feeders proposed • Load growth continues in Sorell area • Reliability issues for Tas/Peninsula New Norfolk • Zone upgrade proposed in 1 - 2 years

distribution network issues

Page 42 © Transend Networks Pty Ltd 2004

2004 Annual Planning Review

regional issues

Kingston / Electrona • Additional feeders required between Kingston & Electrona to provide load transfer capability • Need for 2nd Transformer at Electrona • Combined load exceeds Kingston capacity and no distribution back up available Kermandie • New zone proposed for Dover, dependent on Kingston Substn load growth with a 22kV subtransmission 34 MVA connection from Kermandie 35 MVA (firm)

Electrona Substn 12 MVA ?? MVA (firm)

distribution network issues

regional issues

Hobart Eastern Shore • Critical commercial load – Eastlands • Splitting the 33kV busbar at Lindisfarne places in jeopardy supply at zones • Load growth and available capacity from Bellerive / Geilston Bay zones plan includes: • Load transfer to Rokeby (now) • Pilot to FOC between Lindisfarne & the Zones (1 – 2 yrs) • Load transfer capability East Hobart to Bellerive (2 – 3 yrs) • New Cambridge zone (5 – 10 yrs)

distribution network issues

2004 Annual Planning Review

regional issues

Hobart Area Supply Upgrade (HASU) • West & East Hobart zones commissioned • Sandy Bay under refurbishment (T1 - April, T2 - Oct 2004, T3 - early 2006) • Claremont, Derwent Park & Newtown Zones (next 2 yrs – dependent on 33kV supply at Risdon and alterations at Creek Rd) • Present arrangement of 22kV connection impacts on the supply to Cadbury’s – will be improved once Claremont is supplied from Creek Rd only

distribution network issues

embedded generation

Existing locations •Morinna • Parangana

Enquiry phase • Possible locations

Application phase • Heemskirk (Wind) Woolnorth wind farm • Meander Dam (hydro) now disconnected from • Winneleah Dam (hydro) the distribution network • Trevallyn Dam (hydro) •Jackson St (Biomas) • McCrobies Gully (Biomas)

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2004 Annual Planning Review

modifications/new connections

Next 1 - 2 years

Connection point Proposed modification

Risdon/Creek Rd load transfers, system operations & development during HASU George Town Additional load transfer from Trevallyn through new Fdrs Mowbray (stage 1) New connection point Sorell Additional fdrs + system reconfigurations Norwood Additional fdrs + system reconfigurations Trevallyn Load transfers to adjacent terminal substations Queenstown Equipment upgrade + system reconfigurations Scottsdale Additional fdrs + system reconfigurations Derby Additional fdrs + system reconfigurations St Mary’s Additional fdrs + system reconfigurations Rokeby Additional fdrs + system reconfigurations + load transfers Electrona / Kingston Additional fdrs + system reconfigurations + load transfers Tungatinah Distribution system alterations

modifications/new connections

Next 3 - 5 + years

Connection point Proposed modification

Hadspen (new) New connection point Deloraine (new) New connection point Wynyard (new) New connection point Devonport Additional fdrs + system reconfigurations Port Latta Additional fdr + system reconfigurations Lindisfarne Load transfers to adjacent terminal + additional fdrs (33kV) Palmerston Interim load transfers + connection cables upgrade Triabunna Additional fdr Wesley Vale New connection point (5 -10years) Kermandie / Dover Zone Possible new 22kV connection for fdr to new Dover Zone Rosebery 44kV additional load - wind farm & new mines + Zeehan Zone upgrade Cambridge Zone New Zone (33kV) from Lindisfarne

2004 Annual Planning Review

major capital works program

• Reliability Improvement Program • Program of Work (POW) – System development focus areas – Zone substation alterations – Cable ratings reviews – Non demand replacement programs – Customer generated work

reliability improvement program

• Protection upgrade project • Protection setting while working near lines project • Dead times setting adjustment project Require inverse time relay with these characteristics a lot of the terminals have definite time settings • Remote control and monitoring of Nulec reclosers project • Remote control of remote significant areas project • Feeder trunk upgrade project • Mobile generation units (2)

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2004 Annual Planning Review

system development focus areas

Burnie LASU DevUL S A D

St Help Del2Had

HES HASU K&E POW

program of work

• Zone substation alterations – HASU continues – Zeehan upgrade – New Norfolk upgrade – Removal of 22kV rural (Midlands South area) • Cable ratings reviews • Non demand replacement programs • Customer generated work

2004 Annual Planning Review

Appendix E Transend Presentation on Connection Agreements

Connection Agreements

Presentation for Annual Planning Review 2004

What do we have to achieve?

• NEM ready Connection Agreements • Connection Agreements where: - new points can be simply added under a Deed of Amendment - items requiring regular changes can be changed easily by mutual agreement - Code changes do not affect the body of the Agreement (existing Agreements only)

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2004 Annual Planning Review

Why are we doing this?

• We are required under both the TEC and the NEC (as detailed in Clause 5.2.3) to keep all of our Connection Agreements updated. • To incorporate running changes into our Connection Agreements, we need a format that does not embed the “dynamic” data/settings/parameters in the Connection Agreement itself. • The “dynamic” data is held in Site Data Sheets (1 per connection site) and can be altered easily by agreement of both parties without altering the Connection Agreement.

How will we do this? • We propose to insert wording into the Commercial section of the Site Connection Agreement to allow us to operate our agreements this way. Specifically: - running changes by exchange of letters, and - commercial changes by Deed of Amendment • We will need: - 3 Connection Agreements to carry forward, viz: - a new NCA for all Distribution Connections and Embedded MIs - a updated CANS1 for DCs, and - a new CA for DCs, when existing Power Supply Agreements expire and Customer is directly connected to TNSP.

2004 Annual Planning Review

How will Agreements be structured?

• The general structure will be: - Common Commercial front end i.e.”General Terms & Conditions” and Service Agreement and - Site Data Sheets

This is what the new Network Connection Agreement will contain.

A diagram to help explain New Format Current Format Common Part ADist Commercial General Terms & Conditions

Service Agreement Combined Front end Part BDist Technical/Commercial Schedule Specific Commercial

Part CDist Alterations to Part A Site Data Sheets Examples: Smithton and Creek Rd All new Distribution Agreements

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2004 Annual Planning Review

What about Direct Connect Customers?

• We need 2 different agreements here, viz: - One for new customers (and existing customers whose Power Supply Agreements have expired), and - A revised/updated version of CANS1 to last until the Comalco agreement expires in 2014. • The New DC Customer Agreement is similar in layout and content to the new Network Connection Agreement and change mechanisms will operate in the same way • CANS1rev will be updated and contain completed schedules

What are the next steps? DC Customers • Transend have written to Aurora advising that Transend are looking to enter into individual Connection Agreements with new DC customers and existing customers whose power supply agreements are about to expire. • Transend have requested Aurora’s assistance in conditioning DC customers to Transend’s individual Connection Agreement approach. (Treasury Presentations on NEM Entry and Basslink in previous months have assisted) • Transend are organising visits to DC customers premises, incorporating information presentations, to establish Transend’s position for future relationships.

2004 Annual Planning Review

Timing – Connection Agreements

Technical Schedules

Transend to: work with Aurora to develop schedules 27/2/04

Transend to: submit final schedules to Aurora for review 26/3/04 We are here Aurora to: provide final comments on Schedules 30/4/04 Commercial

Transend to complete initial negotiations, prepare draft agreements 27/2/04

Aurora review draft 26/3/04 We are here Negotiations complete, finalise documentation 28/5/04

Seek Board approval June Board meeting

Completion July 04

Execution July 04

Note: All based on carrying forward 2 Agreements, being an updated CANS1, and a new Network Connection Agreement. A new stand alone Agreement for DC Customers will be developed following completion of the above.

Wind Developments Committed Publicly announced

Robbins Isl. –WED/PH Woolnorth - HT 140 MW Stage 1 – 10.5 MW Musselroe - HT Jims Plains – WED/PH Stage 2 ~ 52.5 MW 120 MW 60 MW Stage 3 ~ 74 MW

Heemskirk - HT 160 MW

WED/PH – Wind Energy Developments/Pacific Hydro JV HT – Hydro Tasmania

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2004 Annual Planning Review

Woolnorth Stages 1 and 2

• Woolnorth Stage 1 (10.5 MW) was initially connected to Aurora’s distribution network by a dedicated 22 kV feeder that terminated at Transend’s Smithton Substation. • Woolnorth Stage 2 (another 52.5 MW) is connected to new 110 kV transmission line that terminates at Transend’s Smithton Substation.

Woolnorth 3rd stage - 74 MW

10 MVAr cap bank required at Smithton sub

3rd 110 kV circuit required between Smithton and Burnie

2004 Annual Planning Review

Appendix F Transend Presentation on Transmission Constraints Affecting Connection Points

ANNUAL PLANNING REVIEW Transmission Constraints affecting Connection Points

Transend / Aurora 2 April 2004

Transmission Constraints affecting Connection Points • Chapel Street-Risdon and Creek Road- Risdon 110kV circuits

¾ Upgrade to minimum design temperature of 90ºC • Chapel Street 220/110kV auto-transformers

¾ Replace T2, T3 & T4 (currently 120MVA) with 200MVA auto-transformers

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2004 Annual Planning Review

Transmission Constraints affecting Connection Points • Lindisfarne-Risdon 110kV circuit

¾ Bridgewater-Risdon circuit into Lindisfarne will create two Lindisfarne-Risdon circuits • Waddamana-Lindisfarne 110kV circuit

¾ Minimum design temperature only 43ºC

¾ Decommissioned in 2006 • Waddamana-Bridgewater 110kV circuit

¾ Upgraded to a minimum design temperature of 75ºC

Transmission Constraints affecting Connection Points • New Norfolk-Kingston-Electrona 110kV circuit

¾ Connected to Chapel Street Substation as Chapel Street-Kingston-Electrona circuit • Hadspen-Trevallyn #1 110kV circuit

¾ Trevallyn Substation winter and summer peak loading near limit of Hadspen-Trevallyn #1 circuit

2004 Annual Planning Review

Transmission Constraints affecting Connection Points The following circuits affect southern power system security: • Tungatinah-Lake Echo-Waddamana #1 and #2 110kV circuits

¾ Tungatinah-Lake Echo-Waddamana #1 and #2 to be upgraded to a minimum design temperature of 49ºC • Tarraleah-New Norfolk #1 110kV circuits

¾ The minimum design temperature of the Tarraleah-New Norfolk #1 circuit is currently 43ºC

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2004 Annual Planning Review

Appendix G Transend Presentation on Connection Point Adequacy

ANNUAL PLANNING REVIEW Connection Point Adequacy

Transend/Aurora 2nd April 2004

D.Capece

Connection Points with existing capacity issues (Table 1 of 4) Issue Action Target Norwood - the existing load The loading on Norwood will 2005(Mowbray) exceeds the transformer and be reduced by proposed equipment firm rating by 19% Mowbray Substation. A proposed Hadspen 110kV/22kV will give further load relief. Palmerston –the existing Requires investigation-Hadspen 2004 load exceeds the transformer 22kV may offload. and equipment firm capacity Also,issue re interim load by 3% transfer from Trevallyn winter 2004 Rosebery 44kV-existing The MD displays 37.7 MVA, No further action load exceeds the transformer however this was found to be a required and equipment firm rating by spike and the actual MD is 26% below 20 MVA. Trevallyn – the existing load Mowbray Substation will 2005 exceeds the transformer transfer load off Trevallyn capacity by 23% and equipment capacity by 30%

2004 Annual Planning Review

Connection Points with existing capacity issues (Table 2 of 4)

Issue Action Target

Triabunna – load has Review load forecast with 2004 exceeded transformer firm Aurora. Joint rating by 21% and Aurora/Transend strategy to equipment ratings by 21% be developed Queenstown CMT 11kV Contractual agreement with 2004 – existing load exceeds EI customer is to be transformer and reviewed. Increase in firm equipment firm ratings by capacity of Substation is to 39%. be considered. Wesley Vale – existing May require automatic load 2004 load exceeds the 30 shedding to be put in place. minute rating of 28 MVA To be reviewed with EI customer. North Hobart –existing Requires investigation in 2005/06 load exceeds equipment conjunction with HASU firm rating by 19%

Connection Points with existing capacity issues (Table 3 of 4)

Issue Action Target

Creek Road 22kV – Transend is currently cutting existing load exceeds firm over its switchgear from 22kV rating of equipment by 48% to 33kV.

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2004 Annual Planning Review

Connection Points with capacity issues, under credible contingency within next 10 years (Table 4 of 4) Issue Action Target

Sorell – forecast load in 2008/09 Requires investigation 2004 will exceed transformer and equipment ratings by 10%

Lindisfarne – forecast load in New 33kV switchgear to be 2004 2008/09 (no gas) will exceed installed as part of switchgear transformer and equipment ratings replacement program. Tx by 6% loading requires investigation. Kingston – forecast load in Requires investigation 2004 2008/09will exceed transformer and equipment ratings by 3%

St Marys – forecast load in 2008/09 After 2004 load forecast a joint 2005 will exceed transformer and Aurora/Transend strategy to be equipment ratings by 65% developed

Comments: Compared to 2003 APR

• George Town and Smithton no longer experience overloads in 10 year period due to completed upgrades.

2004 Annual Planning Review

Schemes or Mitigation measures

• Norwood and Trevallyn– contingency plans established for winter 04/05 to manage station loads during periods of risk (agreed load shedding arrangements)

• Wesley Vale – 30 minute overload rating assigned – manual load shedding within 30 minutes

• North Hobart , Creek Rd and Risdon – Operational monitoring by Transend and Aurora. (Contingency plans have been established for periods of peak load risk during HASU program implementation)

2004 Annual Planning Review

Appendix H Transend Presentation on Planned Asset Replacement at Connection Points

Annual planning review Planned asset replacements at substation connection points 2 April 2004

HV switchgear replacements • Port Latta, Savage River, Wesley Vale • Kermandie, Palmerston, Triabunna • Devonport redevelopment • All the above completed December 2006 • Lindisfarne 33 kV

2004 Annual Planning Review

Future HV switchgear replacements • Newton • Que • Rosebery 22 kV • Arthurs Lake • Tungatinah

Power transformer replacements

• Replacements based on transformer condition • Palmerston T4 • Triabunna T1, T2 • Que T1 • Newton T1 • Queenstown T3, T4 • Refurbishments based on transformer condition

2004 Annual Planning Review

Contingency planning • Unique transformers • Spare transformer management • HV switchboards

2004 Annual Planning Review

Appendix I Transend Presentation on Update on Connection Point Projects

ANNUAL PLANNING REVIEW Update on Connection Point Projects

02 April 2004

Smithton Substation Redevelopment

Substation was commissioned in September 2003

Old Substation New Substation

• 2x15 MVA transformers • 2x35 MVA transformers

• 4 , 22kV feeders • 6 , 22kV feeders

• single 110 kV supply line • double 110 kV supply line

• no communication • fibre optic cable

• no SCADA system • new SCADA system with new AC & DC supply boards and batteries

2004 Annual Planning Review

Burnie Substation Redevelopment

Work was commissioned in March 2004

• A new 22 kV switchhouse/control building

• 11 outgoing 22 kV feeders and feeder management relays

• 2 incoming transformer CB and protection relays

• 1x22 kV bus coupler and associated protection

• 2 new Station Service transformer

• New AC and DC supply boards and batteries

• New substation SCADA system

Devonport Substation Redevelopment

•Approved project, call for tenders in May 2004

• New 110 kV switchyard rearrangement • A new 22 kV switchhouse/control building • 11 outgoing 22 kV feeders and feeder management relays • 2 incoming transformer CB and protection relays • 1x22 kV bus coupler and associated protection • 2 new Station Service transformer

• New AC and DC supply boards and batteries

• New substation SCADA system • 3x5 MVAr, 22kV capacitor banks

2004 Annual Planning Review

Queenstown Substation Redevelopment

Work in progress, expected commissioning in September 2004

• A new 11 and 22 kV switchhouse/control building

• new 11 and 22 kV feeder panels and feeder management relays

• incoming transformer CBs and protection relays

• bus coupler and associated protection

• 2 new Station Service transformers

• New AC and DC supply boards and batteries

• New substation SCADA system

Greater Launceston Area Supply Upgrade Program • Mowbray substation development

• tender process finalised and preferred tenderer identified • practical completion 22 March 2005 • New 110 kV transmission line from Trevallyn substation • 1x50 MVA transformer (back up through 22kV feeders) • New switchhouse/control building

• 10 , 22kV feeders • New SCADA system • Duplicate communication system • New AC and DC supply boards and batteries

2004 Annual Planning Review

North East Tasmania Security Upgrade Project

Substation works in progress, expected commissioning at the end of 2004 • Norwood substation redevelopment • Upgrade to full 110 kV double bus arrangement • Scottsdale substation redevelopment • New 110 switchgear • New 22kV switchhouse/control building • 5, 22kV feeders • New SCADA, AC/DC boards and batteries • Derby substation redevelopment • New 22kV switchhouse/control building • 3, 22kV feeders • New SCADA, AC/DC boards and batteries

…cont

• New double circuit 110 kV transmission line

• Planning issues management with Launceston and Dorset CC

• Tender documentation preparation

• Award contract-September 2004

• Practical completion –December 2005

2004 Annual Planning Review

Hobart Area Supply Upgrade Program

Creek Road substation redevelopment • 7, 33 kV feeders to supply Aurora’s zone substations

• 3x 60 MVA transformers, 120 MVA firm supply on 07 April ‘04

• Only one, Claremont feeder 7 supplied from old 22 kV board

• Order placed for one additional 33kV panel Risdon substation redevelopment

• Order placed for 2x60 MVA transformers • Tender documentation will be issued at beginning of May ‘04 • Commissioning program, agreed by Aurora is in place for 33kV feeder cut over

Lindisfarne Substation Redevelopment

Work in progress, expected completion in 2006/2007 Substation redevelopment

• Full 110 kV asset replacement bay by bay

• 33kV switchgear replacement with new metal clad switchgear (would be included in the Risdon project tender documentation)

• New SCADA system

Transmission line rearrangement

• Double 110 kV connection Risdon-Lindisfarne

2004 Annual Planning Review

Miscellaneous asset upgrades

• George Town Substation additional 2, 22kV feeder panels/completed

• Sorell Substation additional 2, 22kV feeder panels/completed

• New SCADA system at Boyer Substation/commissioning in May 2004

• New SCADA system at Chapel Street Substation/work in progress

Strategy for Additional Reactive Power Sources Installation in Tasmania

110 kV installations

• 2x40 MVAr cap banks installed at Chapel Street - September 2003

• 1x30 MVAr cap bank at Burnie Substation -February 2005

• 1x30 MVAr capacitor bank at New Norfolk Substation-September 2005 11 or 22 kV installations

• 3x5 MVAr cap banks at Devonport Substation TOTAL =155 MVAr additional reactive support > 50%

2004 Annual Planning Review

Appendix J Transend Presentation on the Southern Power System Security Program

Southern Power System Security

Program Update April 2004

Lindisfarne 220 kV

• Waddamana selected as preferred route using double circuit tower construction and Sulphur conductor • Circuits will T into Liapootah – Palmerston lines with circuit breakers, motorised isolators and a bus tie CB • Proposing new 220 kV yard at Waddamana underneath 220 kV lines, adjacent to existing yard • Development applications being prepared for submission in mid 2005 • To be installed by winter 2007, construction commences January 2006 – coincides with dismantling of WA-LF 110 kV line

2004 Annual Planning Review

Gas-fired power station

• At the request of the Regulator, network support by way of embedded power station is being actively pursued • EOI was released with 8 submissions received in March • Evaluation currently being undertaken • Support also required from Hydro or Aurora • Minimum of 40 MW to be installed by winter 2006 with network support agreement

Program Outline – 110 kV

Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05

Waddamana CB Upgrade Construction Cutover

WA-PA 110kV Upgrade Construction Cutover Risdon Lines - 90 degrees Construction Lines south of NN rearrangement Construction Cutover

Chapel St Transformers T2 T3 T4

TU-LE-WA 110kV Upgrade Construction Cutover Lindisfarne 110 kV Rearrangement Constr. Cutover

WA-BW 110kV Upgrade Construction

2004 Annual Planning Review

Program Outline – 220 kV

Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Bridgewater Power Station Re c eiv e Evaluate Negotiat Sign Submiss i & select Compare Prepare Release e w ith NSA & Draft EOI ons 3 with 220 Tender Tender Evaluate bidders PPA Supply

Prepare Netw ork Support Agreement

Lindisfarne dual cct 220kV BC Sign o FPS HandovePreparation of Tender andEvaluate AwardDesig Appoint DA Finalis e Finalise Quotatio consulta route options n for DA nt Prepare DA/EIS Submit DA Approved

Summary

• Program on time • Aggressive outage program to complete construction • Indication of power station or 220 kV by end of April

2004 Annual Planning Review

Appendix K Transend Presentation on the Transmission System Capital Works Program

Capital Works Program

Annual Planning review 2 April 2004

Development Capital Expenditure Expenditure associated with augmentation of the existing network to: • Meet security criteria/regulatory test • Load growth • New customer/generation requirements • Code compliance requirements

2004 Annual Planning Review

TEC PROCESS •Consultation • Regulatory Test (MBA or CE) • RNPP endorsement •TER determination

PROJECTS ENDORSED BY RNPP • Southern Power System Security • Mowbray 110/22 kV Substation • Norwood - Scottsdale - Derby Redevelopment • Smithton Second 110kV Circuit • Risdon 33 kV Development • Reactive support at Chapel St Substation • Reactive Support Burnie

2004 Annual Planning Review

DEVELOPMENT CAPEX PLAN

Fixed Projects Target On Target Southern PSS project 03/04 to 06/07 Y Norwood-Scottsdale-Derby 04/05 6 month lag Sheffield 220kV Security 05/06 Y George Town 220kV Security 06/07 Y Mowbray Substation 04/05 Y Risdon 33kV 04/05 6 month lag Smithton Second Circuit Completed Reactive Support - Chapel St Completed Reactive support -Burnie 04/05 Y Reactive Support New Norfolk 05/06 Y Reactive Support other 07/08 Y

Variable Projects Comments NE upgrade for Musselroe Wind 04/05 Dependent on Hydro decision. Tarraleah connection to Liapootah at Current Hydro position is to 220kV 04/05 remain on the 110kV system. Southwood connection to Knights Rd Uncertainty with extent of 110kV 04/05 customer development. GT Waste Energy 04/05 No progress by developer Upgrade circuits to Smithton (St3 New 110kV circuit now Woolnorth) 05/06 proposed. Wynyard Area Upgrade (new 110/22kV Substation) 06/07 Aurora load growth driven Aurora currently doing area plan Hadspen 22kV 06/07 study Test Energy Brighton 06/07 Not proceeding Reactive Support George Town 07/09 Unlikely due to TOV Driver –large scale west coast Farrell –George Town 220kV 08/09 wind Lindisfarne transformer augmentation 08/09 Aurora load growth driven Mt Nelson Substation 08/09 Aurora load growth driven Smithton to Sheffield 220kV 08/09 NW wind developments

2004 Annual Planning Review

Transend Capital Program • Transmission general developments • Transmission line upgrading • Substandard clearance ( Compliance Program) • Substation general developments • Substation miscellaneous upgrades • Protection, control and metering • EHV switchgear replacement • Oil containment program • Transformer life extension program • Transformer replacement program • HV switchgear upgrade program • Customer and Major projects

Note: Transend’s Probabilistic Approach In light of the significant uncertainty in load and generation forecasts, Transend has adopted a probabilistic approach to forecasting development capital expenditure. With the assistance of Sinclair Knight Merz (SKM), twenty-four scenarios were evaluated; they reflect combinations of different load growth and new generation outcomes. Each scenario was assigned a weighting that reflects its assessed probability of occurrence. Three themes were adopted in developing the scenarios: • load growth — high, medium, low • impact of local generation in the Hobart area, or the loss of a major industrial load in the Hobart area • additional wind generation — four cases representing possible future wind generation patterns on the west, north-west and north-east coasts of Tasmania. SKM has undertaken detailed studies of load flow and applied Transend’s security criteria to identify the required transmission development projects. The projects identified by SKM are included above. Each feasible development project is categorised as either a fixed or a variable project: • Fixed projects Those projects that analysis suggests are almost certain to proceed in the forthcoming regulatory period. General load growth, system security requirements or committed customer connections typically drive fixed projects. They are accorded a 100% probability in SKM’s analysis, despite the uncertainty in load and generation forecasts.

2004 Annual Planning Review

• Variable projects Those projects that typically depend on specific customer-driven developments proceeding, such as new generation proposals. Transend’s analysis shows that these projects will proceed only if particular growth scenarios eventuate and/or proponents complete identified projects within present timeframes. The probabilities of these variable projects proceeding vary from 10% to 80% in SKM’s analysis.

2004 Annual Planning Review

Appendix L A Proposal for a Joint Planning Approach Post-NEM (Aurora)

Inputs include: • Load forecasting Joint Annual Planning • T & D & System Controller Planning issues • T & D Network POW’s (maintenance & capital works) Cycle approach • T & D Network System data • T & D Non demand replacement programs • Issues progressively identified & addressed throughout List of issues to be the past 12 months addressed and actions identified & recorded / updated as required Annual Planning Review predominantly through the • Opportunities Joint P&O meetings • Issues • Improvements (customer service, APR Outputs include: asset, system & risk mgt) Identified projects for improvement in:- Joint monthly P&O meetings • customer service Annual Planning Review These meetings progressively • asset management & recognise: • risk management Report • Progress of projects underway • system management • T&D planning issues List of issues to be addressed • Development of joint BC’s etc • Operational issues with Networks List of Issues • Asset mgt issues (age/safety These include issues and replacements etc) opportunities identified With the intention of an overview jointly with the NSP’s and Monthly joint AE & TN discussions and identification of that are recognised as Planning & Operations actions requiring attention over the next 12 months with meetings consideration to the medium Specific project joint 5 year programs/projects AE & TN meetings

2004 Annual Planning Review

Appendix M Issues and Actions Summary

No Substation/Area Issue Strategy or Action Comments

REGIONAL ISSUES PRESENTED BY AURORA: 1. Queenstown area Reliability and security of supply issue with Renewing 22 kV & 11 kV feeder cables CMT increased load 2005 supply to Strahan. requires additional 11kV Reducing number of 22 kV feeders feeder – space available Review transformer capacity CMT moving towards direct connected 2. Strahan area Lack of support for local load Investigating portable generation/co-generation Aurora Energy (AE) options addressing issue - 2005

3. Rosebery area Renison now sold (7 MW) may increase Review load requirements with AE Account Mgr Note Zinifex (ex Pasminco) load. not Direct Connect Customer New load at Zeehan being addressed by AE Pasminco mine 2005 Heemskirk windfarm 44 kV connection in Confirm Heemskirk Windfarm connection (AE) doubt. Zeehan Zone upgrade requirement (age & safety) 4. Smithton area Long feeders – reliability issue. Reconfigure the distribution system utilising the Carried out in conjunction additional 22kV feeders. (AE) – 2004/05 with the establishment of the new Smithton Substation and transmission upgrades

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

5. Port Latta Substation One long distribution feeder. Break up into two feeders at the substation. During 2005 Investigate additional 22kV feeder in conjunction with 22kV switchgear upgrade program 6. Somerset & Wynyard area Anticipated commercial growth. Initially establish an additional 22kV feeder from Review in 2005 APR Burnie (AE) – 2004/05

May require a new injection point in 5 to 10 years. System study required to understand best supply arrangement for Wynyard / Burnie area (AE) - 2007 7. Burnie area Very long 22kV feeders supplying west Split existing 22 kV feeders to Wynyard & Review studies in 2005 APR Burnie rural area. Remains a reliability Penguin areas (AE) – 2004/5. issue. Some opportunity for commercial System study required to understand best growth. supply arrangement for Wynyard / Burnie area (AE) – 2007 Investigate 22kV /11kV substations for Burnie city centre supply backup (AE) – 2006/07. 8. Ulverstone area Reliability/load growth – limited backup and Additional 22kV feeders / feeder ties along the inter-connectability coastal area towards Devonport (AE) – 2006 Reconfigure the 22kV feeders to Ulverstone town with possible additional 22kV feeder from Substation (AE) - 2005

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

9. Devonport area Feeders head inland and link up with Railton Additional 22kV feeders (3) in conjunction with – some heavy commercial load on feeders 22kV switchgear upgrade program (Transend heading out to rural areas. Networks (TN)) - 2005 Feeders heading east have problems during Reconfigure existing 22kV feeders to separate the cropping season, birds, irrigation, etc. urban and rural supply areas ie East Devonport from Wesley Vale area & Devonport urban/rural inland. (AE) - 2005 Development of longer-term strategy ie Devonport / Wesley Vale. (TN & AE) - 2004 10. Port Sorell/Hawley area Huge localised growth – local load growth Development of longer-term strategy ie Devonport / Wesley Vale. (TN & AE) - 2004 11. Wesley Vale Transformer capacity vs Load shedding Development of longer-term strategy ie arrangements Devonport / Wesley Vale. (TN & AE) – 2004 110kV circuit arrangement between Investigate the reconfiguration of 110kV layout Devonport / Wesley Vale & Sheffield at Devonport & Wesley Vale Substations (TN) - 2005 12. Railton area Reliability issue on some 22 kV feeders. Reconfigure the distribution system & upgrade protection (AE) - 2004. 13. Deloraine area Essentially a void between terminals. System study required to understand best Development of longer-term Supplied by two feeders from Railton with supply arrangement for Deloraine or at strategy ie Devonport / alternate connection from Trevallyn. Hadspen (see GLAD Plan – Sect 5) (AE) – Wesley Vale. (TN & AE) – However, alternate connection unable to 2004 2004 will need to be supply Deloraine due to Westbury load considered issues Possible additional point load enquiry at Westbury.

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

14. Hadspen/Westbury Heavily loaded and long 22kV feeders System study required to understand best impacting on reliability supply arrangement for Deloraine or at Hadspen (see GLAD Plan – Sect 5) (AE) – Trevallyn & Norwood Substations capacity 2004 15. Trevallyn/Mowbray/ Trevallyn & Norwood Substations capacity Transfer load onto George Town (5- 6 MW) Norwood through 22kV feeder extension (AE) –2004/05 System study required to understand best supply arrangement at Hadspen (see GLAD Plan – Sect 5) (AE) – 2004 Interim contingency plans – transfer of load to Palmerston S/S (Longford area) – (AE) -2004 Commissioning of Mowbray S/S (TN) – 2005 Initiate 2nd stage of Mowbray S/S including 110kV connection to Norwood S/S (TN & AE) - 2005 16. Palmerston Substation Long 22kV feeders impacting on reliability Reconfigure the distribution system (AE) - 2004. Temporary transfer of load for the area from Trevallyn to relieve Renewal of feeder cables in conjunction with 22 Trevallyn winter peak load Supply constraint from Longford through to kV switchgear upgrade (TN & AE) - 2006 (AE) - 2004 Deloraine. Small 22kV feeder connection cables

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

17. Greater Launceston area – General load growth – not just urban but out Transfer load to George Town (5 MVA already Firm capacity of Trevallyn, capacity issues into country areas. transferred, additional 5 MVA to be transferred) Norwood and Mowbray (1 transf) is 120+60+40 MVA = Plus wood heater buy-back impact. 2 MVA transferred to Scottsdale (Lilydale) 220 MVA 1 MVA transferred to Railton Total load is 214 MVA 4 MVA to be transferred from Trevallyn to Mowbray Stage 1 – 1x60 Palmerston (Interim contingency) MVA transformer but limited Proposed 5 MVA max to Deloraine or proposed to 40 MVA firm because of 15 MVA max to Hadspen from Norwood distribution tie between (Trevallyn to Norwood) Trevallyn and Mowbray. Provides security to CBD and Mowbray Stage 1 – relieves Trevallyn (38 MVA) East Tamar areas Trevallyn relieves Norwood (8 MVA) – interim contingency reconfiguration of feeders and transfer of feeder loads

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

18. Greater Launceston area – 5 poor performing feeders Reliability strategy includes reducing the length East & West Tamar – 3 reliability issues of feeders and increasing the number of feeders feeders experience poor 5 low performing feeders reliability – 2 supply urban Establish Mowbray Substation 15 reasonable performing feeders areas before continuing to rural areas. West rural areas – Westbury and Longford “rural” feeders are long & heavily loaded & experience low reliability – limited back-up from Railton and Palmerston. West/South urban areas – 3 of the feeders experience low reliability, very limited back- up from Norwood. Norwood to CBD – very limited back-up from Norwood, difficult to quickly transfer load, limited routes to establish additional feeder ties to CBD. East Tamar urban area – of the 3 feeders across the Tamar, 2 are the heavily loaded “jumbo” feeders supplying the Invermay and Mowbray areas, very limited back-up to CBD from East Tamar area.

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

19. Greater Launceston Area – Continuing load growth Additional 5 MVA transferred to George Town Stage 2+ along East & West Tamar Marginal spare capacity immediately following Mowbray Stage 1. Mowbray Stage 2 – additional 60 MVA transf (60 MVA firm) & additional 2 feeders (including Supply reliability issues a new feeder to supply Lilydale). Mowbray Stage 2 requires a 110 kV link between Mowbray & Norwood with the Trevallyn – Mowbray 40 MW distribution tie not being required and absorbed into the distribution network feeder arrangements. New Deloraine Substation – relieving rural feeder reliability in Deloraine area & some Trevallyn load. New Hadspen Substation – relieving Norwood load & Trevallyn urban/rural feeder reliability. Transfer of load required between Norwood & Trevallyn for effective use of Hadspen. 20. North East area Limited alternative 22 kV supply to Additional 22kV feeders at Scottsdale & Derby Limited backup through the (Scottsdale/Derby) Scottsdale & Derby areas from George S/S during respective upgrades. (TN & AE) - distribution system during Town, Lilydale & St Helens 2005 upgrade program Investigations of further alternative supply arrangements (ie embedded generation). (AE) – 2006 Remove 22kV feeder from 88kV towerline to Scottsdale & Derby (AE) - 2005

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

21. St Helens area Local load growth in St Helens area. Install additional feeder from St Marys to St Helens. (AE) - 2005 Existing feeder capacity System study to understand best supply Limited alternative supply from Derby arrangement to East Coast (northern) area including 110kV arrangement (TN & AE) - 2004 22. Avoca/St Marys Longest 22kV rural feeder in the State, 580 System study to understand best supply Is St Marys the right location km route length from Avoca to Oatlands, arrangement to East Coast (northern) area (including Midlands area) impacting reliability including 110kV arrangement (TN & AE) - 2004 Single 110 kV circuit supplying Avoca & St Investigate whether timing constraints during Marys switching (operator comes from Launceston or St Marys). (TN & AE) - 2004 23. Triabunna Substation One long distribution feeder down to Orford Additional 22kV feeder in conjunction with 22kV and up to north of Swansea impacting on switchgear upgrade program (TN & AE) - 2005 reliability. 24. Sorell/Tasman Peninsula Load growth continues in Sorell area Implement final phases of the distribution feeder upgrade plan, incudes utilising new 2 x 22kV Reliability issues for Tasman Peninsula circuit breakers at Sorell. (AE) – 2004 110 kV circuit arrangement at Sorell Investigate 110kV arrangement (TN) - 2004 Substation 25. New Norfolk Asset age and potential impact on reliability Investigate the upgrade / relocate 22/11kV zone Utilise spare transformers out substation – to consider in conjunction with of Sandy Bay or New Town 110kV Boyer Tee structure. (AE & TN) - 2004 Zone Subs 26. Kermandie/Dover Long 11kV feeders supplying the Dover area System study to understand the best supply Need to consider impact of from Kermandie S/S impacting on reliability arrangement for the Kermandie / Dover area. Southwood & power quality (AE) - 2004 Potential point loads in the Dover south area (eco-tourism)

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

27. Kingston/Electrona South of Hobart into Kingston is the fastest Rearrangement of Kingston 11kV feeders Kingston Substation load 34 growing urban residential area in the State between Kingston & Electrona S/S (K&E – see MVA (35 MVA firm) and the Kingston commercial area is Section 5). (AE) - 2004 Electrona Substation load 12 developing. There is limited capability to Additional 11kV feeders required between MVA transfer load to Electrona and no real Kingston and Electrona – 1 additional from alternative supply from one of the Hobart Electrona (AE) - 2005 connection points. Initiate the establishment of the 2nd transformer Combined load exceeds Kingston capacity at Electrona (AE) – 2004 and no distribution back-up available Rearrangement of 110kV circuit between Knights Rd, Kingston & Electrona (TN) - 2005 28. Eastern Shore urban area Constrained distribution load transfer System study to understand best supply capability arrangement for Hobart Eastern Shore (AE) – 2004/05 Load growth Capacity utilisation plan from Bellerive/Geilston Critical commercial load at Eastlands. Bay includes: Splitting the (110 kV) 33 kV busbar at • Additional 11kV feeders to transfer load Lindisfarne places in jeopardy supply at onto Rokeby (AE) – 2004/05 zones • Upgrade Pilot to FOC between Lindisfarne and the Zones in conjunction with Lindisfarne upgrade program (AE) - 2004 • Additional 11kV feeders across Derwent River to transfer load from East Hobart to Bellerive (AE) - 2006 Establish new Cambridge Zone (AE) - 2008

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

29. Hobart Area Supply Upgrade Biggest concern outside the CBD is To be addressed by HASU (see Section 5) West and East Hobart Zones (HASU) Claremont with supply from Creek Road and commissioned Sandy Bay under refurbishment (T1-Apr, T2-Oct Risdon Substations – running with bus open 2004, T3-early 2006) (AE) Risdon 33kV commissioning impacts on supply to Cadburys, requires a 5 critical to remaining stages of second interruption to transfer load – will be Claremont, Derwent Park and Newtown Zones HASU improved when Claremont is supplied from (refer to HASU program). (TN & AE) Creek Road only 30. Tungatinah Power Station Aged equipment impacting on reliability Determine the best supply arrangement and replacement of equipment (AE & TN) - 2005

MODIFICATIONS/ NEW CONNECTIONS (AURORA) – NEXT 1 – 2 YEARS 31. Risdon/Creek Road Substations Load transfers, system operations & Hobart Area Supply Upgrade development during HASU (HASU) 32. George Town Substation Additional load transfer from Trevallyn through Greater Launceston Area new feeders Development Plan (GLAD) 33. Mowbray Substation (Stage 1) New connection point GLAD 34. Sorell Substation Additional feeders System reconfigurations 35. Norwood Substation Additional feeders GLAD System reconfigurations 36. Trevallyn Substation Load transfers to adjacent terminal substations GLAD 37. Queenstown Substation Equipment upgrade System reconfigurations 38. Burnie Substation Additional feeders Distribution reconfiguration © Transend Networks Pty Ltd 2004 Page 88

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

39. Scottsdale Substation Additional feeders System reconfigurations 40. Derby Substation Additional feeders System reconfigurations 41. St Marys Substation Additional feeders System reconfigurations 42. Rokeby Substation Additional feeders System reconfigurations Load transfers 43. Sandy Bay Zone Substation Substation redevelopment Additional feeders 44. Derwent Park, Newtown & Zone substation redevelopment Claremont Zone Substations 45. Electrona/Kingston Substations Additional feeders System reconfigurations Load transfers 46. Tungatinah Power Station Distribution system alterations 47. Various terminal substation sites Installation of power quality (PQ), etc, monitoring and recording meters 48. Various feeders Feeder protection review and overhaul

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

MODIFICATIONS/NEW CONNECTIONS (AURORA) 3 – 5 YEARS 49. Hadspen Substation New connection point 50. Deloraine Substation New connection point 51. Wynyard Substation New connection point 52. Devonport Substation Additional feeders System reconfigurations 53. Railton Substation Additional feeders 54. Port Latta Substation Additional feeder System reconfigurations 55. Lindisfarne Substation Load transfers to adjacent terminal Additional feeders (33kV) 56. Palmerston Substation Interim load transfers Connection cables upgrade 57. Triabunna Substation Additional feeder 58. Wesley Vale Substation New connection point (5 -10years) 59. Kermandie Substation/Dover Possible new 22kV connection for feeder to new Zone Substation Dover Zone Substation 60. Rosebery Substation (44 kV) Additional load - wind farm & new mines Zeehan Zone upgrade 61. Cambridge Zone Substation New Zone Substation (33kV) from Lindisfarne

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

SUBSTATIONS EXCEEDING 5 & 10 YEAR CAPABILITIES (TRANSEND) 62. Creek Road 22 kV Transformer and equipment ratings Upgrade to 33 kV Currently being cutover from exceeded 22 kV to 33 kV equipment 63. Kingston Substation Transformer and equipment ratings Aurora to carry out distribution studies regarding Electrona may be able to exceeded by 08/09. load transfers between Kingston and Electrona. have more load transferred to After reviewing the 2004 Aurora Load Forecast, it. Transformers are 11kV bus @ 2000A (38MVA) Transend will determine timing of a second 21/35MVA onan/odaf Electrona transformer. assigned emergency rating has been uprated to 42 MVA. 64. Lindisfarne Substation Transformer and equipment ratings New 33kV switchgear to be installed 2003/2004 CT's C&D on the LV side of exceeded by 08/09. as part of switchgear replacement program (TN) T2 & T3 were rated at 600A - 2004. (34MVA) and CB's, and CT's A&B were rated at 800A Lindisfarne Substation load to be reconsidered (45MVA). A recent review of after Aurora studies regarding transfers ratings showed CB's good for between Lindisfarne and Rokeby are completed 950A (54MVA) and CT's at the end of 2004. rated at 1000A. 65. North Hobart Substation Actual MD for 2003 exceeded equipment Aurora agreed to confirm load forecasts taking After Aurora’s zone ratings. into account Hobart area upgrade program and substations have been possible load transfers to West Hobart or other upgraded – North Hobart to Equipment rating issue with gas or no gas zone substations. be examined in terms of load. forecast in next ten years. Aurora and Transend are to monitor loads on All CB's and CT's on the LV side of T1 &T2 North Hobart (AE & TN) - 2004. are rated at 1600A (30MVA). Cable on the LV side of T1&T2 rated at 1575A (30MVA) Consider ½ life refurbishment of Transformers (TN) - 2004

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

66. Norwood Substation Actual MD for 2003 exceeded transformer Review timing of Hadspen 22kV with Aurora. Offloading of Norwood and equipment ratings. Appears timing will need to be advanced. Substation is proposed by Project justification and Connection Application new Mowbray Substation will be required for new connection point at together with proposed 22kV Hadspen . connection point at Hadspen. 67. Palmerston Substation Actual MD exceeded transformer and Joint Aurora/Transend strategy to be Average load on Palmerston equipment ratings. developed. is less than 4MVA and peaks about 9MVA. Proposed Hadspen 22kV will offload to some extent. Two transformers radially supply the load, each transformer is rated at 7.5/9 MVA and a 25/30 MVA. 68. Queenstown Substation (CMT Actual MD exceeds transformer and Contractual arrangements with EI customer are Contractual arrangements 11kV) equipment ratings. to be reviewed (AE) - 2004. need to be agreed before firm capacity of substation is Increase in the firm capacity of the substation is increased. to be considered. 69. Rosebery Substation 44 kV Actual MD exceeded transformer and None required The MD displays 37.7 MVA equipment ratings. however this was seen as a spike and the actual MD is CTs on the LV side of T1 and T2 are rated below 20 MVA at 400A (30 MVA) 70. Sorell Substation Transformer and equipment ratings Joint Aurora/Transend strategy to be exceeded by 08/09. developed. Significant load increase in 10 year period. Proposed 2x5 MVAR capacitor banks to be installed at Sorell (TN) - 2007. 71. St Marys Substation Transformer and equipment ratings Review Aurora 2004 load forecast. exceeded by 08/09. Joint Aurora/Transend strategy to be developed Significant load increase in 10 year period. in 2005. © Transend Networks Pty Ltd 2004 Page 92

2004 Annual Planning Review

No Substation/Area Issue Strategy or Action Comments

72. Trevallyn Substation Actual MD exceeded transformer and Mowbray Substation Project is in Based on 2 hour emergency equipment ratings. implementation stage. rating. 22kV CT and cables limitation Offloading of Trevallyn Substation is proposed by new Mowbray Substation 2004 together with proposed 22kV connection point at Hadspen. 73. Triabunna Substation Actual MD exceeded transformer and Review 2004 load forecast with Aurora. equipment ratings. Joint Aurora/Transend strategy to be developed Significant load increase in 10 year period (AE & TN) - 2004. Investigate application of a 30 minute emergency rating. Possible need for load shedding (reduction within 30 minutes) 74. Wesley Vale substation Actual MD exceeded transformer and May require automatic load shedding to be put Substation equipment has equipment rating. in place. To be reviewed with EI customer. (TN) been given a 28MVA 30 - 2004 minute rating. Australian CT's on the LV side of T3 & T4 are rated at Paper to manually shed load 1200A (22MVA). Cable on the LV side of T3 to reduce to 25MVA as & T4 rated at 1340A (25MVA) required.

Substation/ No Issue Strategy or Action Comments Transmission Line TRANSMISSION SYSTEM CONSTRAINTS IMPACTING ON CONNECTION POINTS (TRANSEND) 75. Chapel St Substation Under winter maximum load conditions, the Existing 120MVA units require replacement and Part of Southern Power autotransformers outage of one autotransformer can overload it is proposed to replace with 200MVA units System Security Project the others by up to 25% with the exception (TN) - 2005 of the 200 MVA unit, T1

2004 Annual Planning Review

Substation/ No Issue Strategy or Action Comments Transmission Line

76. Chapel St – Risdon & Creek Rd During peak summer or winter loading Addressed by option of 220kV at Lindisfarne. In Part of Southern Power – Risdon 110 kV Transmission outage of either circuit will heavily overload the short term the lines are being upgraded to a System Security Project Lines the other. minimum design temperature of 900C (TN) – 2004 77. Lindisfarne – Risdon 110 kV During periods of peak demand, outage of Bridgewater – Risdon circuit into Lindisfarne will Part of Southern Power Transmission Line this circuit will cause low voltage at the create two Lindisfarne – Risdon circuits (TN) – System Security Project Lindisfarne Substation 110 kV bus. 2005 78. Waddamana – Lindisfarne 110 Minimum design temperature is only 430C Decommission in 2006 Part of Southern Power kV Transmission Line System Security Project 79. Waddamana – Bridgewater 110 Low minimum design temperature Upgrade to a minimum design temperature of Part of Southern Power kV Transmission Line 750C System Security Project 80. New Norfolk – Kingston – System security, reliability To be connected to Chapel St Substation as Part of Southern Power Electrona 110 kV Transmission Chapel St – Kingston – Electrona circuit. System Security Project Line 81. Tarraleah – New Norfolk No. 1 Impact on southern power system security. Upgrade line (TN) - 2005 Part of Southern Power 110 kV Transmission Line System Security Project? The minimum design temperature is 430C Being run substandard, was due to be decommissioned but still required for a winter or two. 82. Hadspen – Trevallyn No. 1 110 Trevallyn Substation winter and summer Investigate options either network support kV Transmission Line peak loading is near the limit of the agreement or upgrade line (TN) - 2006 transmission line impacting system security to Launceston area. 83. Tungatinah – Lake Echo – Impact on southern power system security. To be upgraded to a minimum design Waddamana No 1 & 2 110 kV temperature of 490C (TN) - 2004 Transmission Lines

2004 Annual Planning Review

Substation/ No Issue Strategy or Action Comments Transmission Line

84. Sheffield – Burnie 220 kV Outage of this circuit during winter peak load System studies to understand issues and Transmission Line conditions will overload the two 110 kV determine remedial action and strategy (TN) - circuits from Burnie Substation back to 2004 Sheffield Substation and will cause low Reactive support proposed at Burnie Substation voltage at the Burnie 110 kV bus. (TN) - 2005. 85. Norwood – Scottsdale - Derby Old 88 kV infrastructure and the 88 kV Addressed by North-East strategy for 88 kV Transmission Line transmission line is reaching its design load conversion of line to 110 kV. limit. 86 Sheffield Substation 220 kV ‘B’ All the generation from the Farrell area Sheffield busbar rearrangement project (TN) - Busbar passes through this one location with total 2004 load flows presently in excess of 500 MW. There is a possibility of severe system disturbances in the case of a fault on the 220 kV ‘B’ busbar with the present arrangement. 87. George Town Substation Under certain operating conditions with Investigate reactive support requirements Reactive Support Basslink exporting in excess of 450 MW an proposed at George Town Substation (TN) - additional 70 MVAR is required, and a 2006 further 30 MVAR with high wind generation. The issue was raised as to whether this was a matter of Transend supply as a Code requirement or should it be regarded as an ancillary service?

TRANSMISSION SYSTEM CAPITAL WORKS IMPACTING ON CONNECTION POINTS (TRANSEND) 88. Port Latta Substation Assets at end of economic lives HV switchgear replacement Completed by Feb 2006 89. Savage River Substation Assets at end of economic lives HV switchgear replacement Completed by Feb 2006 90 Wesley Vale Substation Assets at end of economic lives HV switchgear replacement Completed by Dec 2006

2004 Annual Planning Review

Substation/ No Issue Strategy or Action Comments Transmission Line

91. Kermandie Substation Assets at end of economic lives HV switchgear replacement Completed by Oct/Nov 2006 92. Newton Pumping Station Assets at end of economic lives HV switchgear replacement Future Transformer T1 replacement 93. Que Substation Assets at end of economic lives HV switchgear replacement Future Transformer T1 replacement Replace with transf ex- system until long term future is determined. 94. Rosebery Substation (22 kV) Assets at end of economic lives HV switchgear replacement Future 95. Arthurs Lake Pumping Station Assets at end of economic lives HV switchgear replacement Future. Possibility of 22kV in lieu of 6.6 kV? Distribution system security Investigate use of Waddamana T/line as 22kV line to provide better supply to area (TN & AE) - 2004 96. Tungatinah Power Station Assets at end of economic lives HV switchgear replacement Future. Scope to rationalise a lot of assets. 97. Palmerston Substation Assets at end of economic lives HV switchgear replacement Completed by June 2006 Transformer T4 replacement New transf will allow running with bus closed. 98. Triabunna Substation Assets at end of economic lives HV switchgear replacement Completed by Feb 2006 Transformers T1 & T2 replacement Existing transformers are 7.5 MVA new will be 10 MVA.

2004 Annual Planning Review

Substation/ No Issue Strategy or Action Comments Transmission Line

99. Devonport Substation Assets at end of economic lives Substation redevelopment including: Approved project just • New 110 kV switchyard rearrangement commenced Need for additional feeders • New 22 kV switch board , 11 outgoing 22 kV feeders • New switchhouse/control building • New auxiliaries • 3x5 MVar, 22 kV capacitor banks 100. Queenstown Substation Assets at end of economic lives Transformers T3 & T4 replacement Redevelopment is work in progress with expected Substation redevelopment including: commissioning in Sept 2004 • New 11 & 22 kV switchgear • New switchhouse/control building • New auxiliaries 101. Mowbray Substation Load growth New 110/22 kV substation development with Project commenced. 1x50 MVA transformer in Stage 1 Practical completion March 2005. 102. North East Tasmania Security Assets at end of economic lives Norwood Substation upgrade to full 110 kV Substation works in progress. Upgrade Project double bus arrangement. Expected commissioning end Requirement to meet N-1 security of 2004. Scottsdale Substation redevelopment includes: • New 110 kV switchgear • New switchhouse/control building • 5x22 kV feeders • New auxiliaries Derby Substation Redevelopment includes: • New switchhouse/control building • 3x22 kV feeders • New auxiliaries New double circuit 110 kV transmission line (TN) - 2005

2004 Annual Planning Review

Substation/ No Issue Strategy or Action Comments Transmission Line

103. Creek Road Substation 7x33 kV feeders to supply Aurora zone substations 3x60 MVA transformers, 120 MVA firm from April 2004. Claremont Feeder 7 supplied from old 22 kV board. Order placed for one additional 33 kV panel 104. Risdon Substation 33 kV redevelopment Project just commenced Order placed for 2x60 MVA transformers 105. Lindisfarne Substation Substation redevelopment Work in progress, expected • Full 110 kV asset replacement bay by completion in 2006/07 bay. • 33 kV switchgear replacement Double 110 kV Risdon – Lindisfarne transmission line rearrangement. 106. Lindisfarne Dual 220 kV Circuit System security Investigate second 220 kV injection point into Part of Southern Power Hobart area to improve security of supply and System Security Project. reduce critical reliance on Chapel St Substation. A process of assessing an (TN) - 2004 alternative option of a gas fired power station at Bridgewater is in progress 107. Reactive support – capacitor Voltage support 110 kV Installations: banks • 2x40 MVar at Chapel St Substation Already commissioned. • 1x30 MVar at Burnie Substation Feb 2005 • 1x30 MVar at New Norfolk Substation Sept 2005 11 or 22 kV Installations: • 3x5 MVar at Devonport Substation © Transend Networks Pty Ltd 2004 Page 98

2004 Annual Planning Review

Substation/ No Issue Strategy or Action Comments Transmission Line

108. Wynyard Substation Aurora load growth driven New 110/22 kV substation Target 06/07 109. Hadspen Substation 22 kV Aurora load growth driven New 22 kV connection point Target 06/07 110. Mount Nelson Substation Aurora load growth driven Investigate new substation (TN & AE) – 2010 111. Creek Road Zone Substation Aurora load growth driven Investigate new substation (TN & AE) – 2010