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Asset Management Plan 2016 to 2026

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Asset Management Plan 2016 to 2026 Asset Management Plan 1 April 2016 – 31 March 2026 Foreword It gives me great pleasure to introduce the eleventh publication of Network Waitaki’s Asset Management Plan (AMP). Network Waitaki is a rural consumer trust-owned electricity distribution business. The management, maintenance, operation and future extension of our network is an integral part of our day-to-day operations. This AMP intends to provide comfort to our consumers, regulators and stakeholders that Network Waitaki takes its responsibility of providing a safe, reliable, efficient and cost effective electricity network service very seriously. In this regard the AMP details the service levels to consumers that we adhere to and also the service targets that we strive towards. Similarly, our focus is to maintain security of supply to our continuously growing consumer base by planning for and investing in assets with a view not only on immediate but also long term future demand expectations. In a nutshell, the AMP aims to inform readers comprehensively on all our actions pertaining to our network. We value comments or questions that you might have on anything raised in this AMP. Please feel welcome to send it to [email protected], for the attention of Tod Trotman. Graham Clark Chief Executive Contents Plan Summary ......................................................................................................................................... 9 Introduction ........................................................................................................................................ 9 Purpose and Key themes .................................................................................................................... 9 Ownership ......................................................................................................................................... 10 Operating Environment .................................................................................................................... 10 Consumer Profile .............................................................................................................................. 10 Our Network ..................................................................................................................................... 10 Service Levels .................................................................................................................................... 12 Approach to Asset Management ...................................................................................................... 14 Renewals and Maintenance .............................................................................................................. 14 Network Development Plan .............................................................................................................. 15 Summary of Expenditure .................................................................................................................. 16 1. Introduction .................................................................................................................................. 19 1.1 Purpose ................................................................................................................................. 19 1.2 Key Themes ........................................................................................................................... 20 1.3 Document Structure.............................................................................................................. 20 2. Overview of Network Waitaki ....................................................................................................... 21 2.1 Our Company ........................................................................................................................ 21 2.2 Operating Environment ........................................................................................................ 26 2.3 Stakeholders ......................................................................................................................... 26 2.4 Our Consumers ..................................................................................................................... 29 2.5 Our Network ......................................................................................................................... 30 2.6 Our Assets ............................................................................................................................. 32 3. Service Levels ................................................................................................................................ 33 3.1 Stakeholder Engagement ...................................................................................................... 33 3.2 Service Level: Safety .............................................................................................................. 34 3.3 Service Level: Reliability ........................................................................................................ 36 3.4 Service Level: Economic Efficiency ........................................................................................ 37 3.5 Performance against Measures and Targets ........................................................................ 39 4. Approach to Asset Management .................................................................................................. 47 4.1 Asset Management Process .................................................................................................. 47 4.2 Asset Lifecycle Management ................................................................................................ 52 4.3 Risk Management Framework .............................................................................................. 56 4.4 Public Safety Management System (PSMS) .......................................................................... 60 4.5 High Impact, Low Probability Events (HILP) .......................................................................... 60 4.6 Emergency Response Policies and Contingency Plans .......................................................... 61 4.7 Asset Management Maturity ................................................................................................ 61 4.8 Improvement Initiatives / Continuous Improvement ........................................................... 63 5. Renewals and Maintenance .......................................................................................................... 65 5.1 Approach to Renewals and Maintenance ............................................................................. 65 5.2 Asset Categories .................................................................................................................... 66 5.3 Asset Quantity Summary ...................................................................................................... 68 5.4 GXP equipment ..................................................................................................................... 69 5.5 Subtransmission .................................................................................................................... 69 5.6 Zone Substations ................................................................................................................... 72 5.7 Distribution Network ............................................................................................................ 77 5.8 Low Voltage Network ............................................................................................................ 80 5.9 Distribution Transformers ..................................................................................................... 83 5.10 Distribution Switchgear......................................................................................................... 86 5.11 Other System Fixed Assets .................................................................................................... 90 5.12 Other Assets .......................................................................................................................... 92 6. Network Development Plan (NDP) ............................................................................................... 93 6.1 Planning Approach ................................................................................................................ 93 6.2 Development Drivers ............................................................................................................ 93 6.3 Demand Forecast ................................................................................................................ 103 6.4 Development Programme ................................................................................................... 109 6.5 Subtransmission Expenditure Summary ............................................................................. 115 7. Non-network Investment Plan .................................................................................................... 119 7.1 Fibre Optic Communications Rollout to Zone Substations ................................................. 119 7.2 IT systems ............................................................................................................................ 119 8. Summary of Expenditure Forecasts ...........................................................................................
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