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NWL 2019 Asset Management Plan

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NWL 2019 Asset Management Plan Contents 1. Introduction ............................................................................................................................................................... 5 1.1 Executive summary .......................................................................................................................................... 6 1.2 Purpose .......................................................................................................................................................... 10 1.3 Key themes ..................................................................................................................................................... 11 1.4 Use of nominal dollar values .......................................................................................................................... 11 1.5 Document structure ....................................................................................................................................... 11 2. Network Waitaki Overview ...................................................................................................................................... 12 2.1 Our company .................................................................................................................................................. 14 2.2 Operating environment .................................................................................................................................. 18 2.3 Regulatory environment ................................................................................................................................ 19 2.4 Stakeholders ................................................................................................................................................... 21 2.5 Our customers ................................................................................................................................................ 24 2.6 Overview of our network ............................................................................................................................... 26 2.7 Our assets ....................................................................................................................................................... 27 3. Service Levels ........................................................................................................................................................... 30 3.1 Stakeholder engagement ............................................................................................................................... 30 3.2 Service level: health and safety ...................................................................................................................... 31 3.3 Service level: reliability ................................................................................................................................... 35 3.4 Service level: economic efficiency .................................................................................................................. 43 4. Approach to Asset Management ............................................................................................................................. 48 4.1 Asset Management process ........................................................................................................................... 48 4.2 Asset lifecycle management ........................................................................................................................... 52 4.3 Risk management framework ........................................................................................................................ 56 4.4 Public Safety Management System (PSMS) .................................................................................................... 59 4.5 Network resilience to High Impact Low Probability (HILP) events ................................................................. 59 4.6 Asset management maturity .......................................................................................................................... 61 4.7 Improvement initiatives ................................................................................................................................. 62 5. Renewals and maintenance ..................................................................................................................................... 66 5.1 Asset quantity summary ................................................................................................................................ 66 5.2 Asset categories ............................................................................................................................................. 66 5.3 Zone substations ............................................................................................................................................ 67 5.4 Subtransmission network ............................................................................................................................... 80 Page | 2 5.5 Distribution network ...................................................................................................................................... 86 5.6 Other system fixed assets ............................................................................................................................ 103 5.7 Renewals and maintenance expenditure summary ..................................................................................... 105 6. Network development plan ................................................................................................................................... 108 6.1 Planning approach ........................................................................................................................................ 108 6.2 Development program – Oamaru GXP region .............................................................................................. 123 6.3 Development program – Waitaki GXP region .............................................................................................. 150 6.4 Development program – Twizel GXP region................................................................................................. 156 6.5 Development program – Black Point GXP .................................................................................................... 161 6.6 Network development expenditure forecast .............................................................................................. 162 7. Non-network investment plan ............................................................................................................................... 166 7.1 Ten year forecast .......................................................................................................................................... 166 7.2 Commentary................................................................................................................................................. 166 8. Summary of expenditure forecasts ........................................................................................................................ 170 9. Appendices ............................................................................................................................................................ 175 9.1 Appendix A - EDB Information Disclosure Requirements Schedules ............................................................ 176 9.2 Appendix B - Board certification of AMP ...................................................................................................... 206 Page | 4 1. Introduction INTRODUCTION Welcome to our Asset Management Plan (AMP) for the planning period 1st April 2020 to 31st March 2030. As we provide an essential service to the communities we serve, it is vital that our electricity network meets the evolving needs of our consumers. Our AMP plays a central role in determining the appropriate levels of network planning and investment required to achieve this. This chapter introduces the AMP and is structured as follows: Executive summary: Explains our Asset Management approach and summarises the challenges and development ahead for us, including our Capital and Operational Expenditure Forecasts. Purpose: explains the purpose and objectives of the AMP; the period and assets covered; the date it was approved by our Board of Directors (the Board); and the intended audience. Key Themes and Initiatives: summarises the key themes and initiatives that have been outlined throughout the AMP. Document Structure: an illustration of how the AMP is structured. Page | 5 1.1 EXECUTIVE SUMMARY Our approach to asset management We view effective asset management as a continual cycle, with direction, planning, implementation, and review working together to improve our performance. Our documentation such as the Strategic Plan, Asset Management Policy, Asset Management Strategy, and this AMP are all aligned with our corporate objectives. This alignment flows through to the delivery of the works program. We have a single shareholder, the Waitaki Power Trust (the Trust), which holds the shares of NWL on behalf of the NWL consumers. The Trust has five elected trustees and appoints directors to the Board to carry out the governance function of the business. We report monthly to the Board and quarterly to the Trust on our performance,
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