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Powerlink Queensland Annual Report 2009/10

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Powerlink Queensland Annual Report 2009/10 connectthe power to ANNUAL REPORT 2009/10 the power to deliver partner succeed community…52 corporate…2 guide sustain corporate respond environment…42 governance…68 network strategy and operations…22 statistical summary…82 index…86 provide glossary…88 network development…32 perform Powerlink and the National Electricity Market…14 strengthen people…60 Mission Vision Values Powerlink Queensland To be the leading Reasonable returns is committed to Transmission Network for our owners. delivering transmission Service Provider in Value for money services network and related Australia, and one of to our customers. services at world-class the best in the world. The wellbeing of levels of safety, reliability our employees. and cost effectiveness. Being a good corporate citizen and community recognition of this. Fair, commercial and courteous dealings with our suppliers. succeedthe power to Harnessing the capabilities of our highly skilled workforce, optimal technology and effi cient processes ensures that Powerlink has the power to deliver electricity transmission services at world-class levels of safety, reliability and cost effectiveness. Cairns Central Business District POWERLINK ANNUAL REPORT 2009/10 corporate 3 4 Highlights 2009/10 In the 2009 calendar year, our overall network Safety remains paramount when we undertake performance was ahead of the reliability targets our work, as evidenced by our overall safety set by the Australian Energy Regulator. performance and the positive results of an audit (see page 20) of our safety management system. (see page 63) Our network reliably met a new statewide Powerlink contributed to the national planning summer peak electricity demand record which activities carried out by the Australian Energy was 3.4 per cent higher than that recorded in Market Operator, including the publication the previous summer. (see page 25) of the National Transmission Statement. (see page 16) Powerlink benchmarked in the top quartile of international transmission companies in We finalised the Regulatory Test assessment terms of network reliability and cost efficiency. which demonstrates the need to begin (see page 25) developing a 500 kilovolt network to reinforce electricity supply for South West and South East We undertook $465.5 million in capital works Queensland. (see page 34) to ensure our network continues to meet reliability standards as electricity demand Powerlink’s first mandatory report on energy continues to grow. (see page 34) and greenhouse gas emissions under the Commonwealth Government’s National We completed construction of four new Greenhouse and Energy Reporting Act 2007 customer connections to the grid, including included our initiatives to effectively reduce our two new lower emission power generators. in-house greenhouse emissions. (see page 46) We also reached agreement for a further four new customer connections. (see page 21) Our Community Benefits Programs provided support for almost 60 community projects We invested $79.5 million in maintenance in the vicinity of new transmission lines. to ensure the continued reliability of the (see page 55) transmission network. (see page 26) Our seventh organisation-wide culture survey showed very positive results, with high levels of employee engagement. (see page 62) Powerlink Queensland Annual Report 2009/10 This Annual Report is an integral part of Powerlink’s This Annual Report has been prepared in accordance with corporate governance processes. It provides information the provisions of the Government Owned Corporations Act 1993 about our operations and fi nances in 2009/10, and an overview and the Financial Administration Act 1977 and is presented of our plans for the immediate future. We present this report to the Legislative Assembly of Queensland. to our two shareholding Ministers, the Honourable Andrew This Annual Report is available online at www.powerlink.com.au Fraser MP, Queensland Treasurer and Minister for Employment and further copies can be obtained from: and Economic Development, and the Honourable Stephen Robertson MP, Queensland Minister for Natural Resources, Manager Corporate Communications Mines and Energy and Minister for Trade. The report is Powerlink Queensland also intended to give the Queensland community an insight PO Box 1193 Virginia into our operations, and to update our stakeholders in the Queensland Australia 4014 electricity industry. Phone +61 7 3860 2111 POWERLINK ANNUAL REPORT 2009/10 5 Powerlink profi le corporate Powerlink owns, operates, develops and maintains Our activities Queensland’s world-class high voltage electricity Powerlink’s primary business activities include: transmission network, which transports electricity in bulk from power generators to the regional distribution Operating the Queensland transmission network networks which supply more than 1.8 million electricity 24 hours a day, 365 days a year. We monitor customers. Powerlink also transports electricity directly electricity flows across our network of 112 substations to a small number of large industrial customers. and 13,569 circuit kilometres of transmission lines. We ensure our network operates in an efficient, Powerlink’s $5.6 billion network extends 1,700 secure and stable manner, and respond to any kilometres from north of Cairns to the New South unplanned outages quickly and safely. Wales border, where it links to the national electricity Developing and extending the transmission network grid which underpins the National Electricity Market in a timely manner. Our planning process takes into ( NEM). Each year our network transports about account forecast population and economic growth, 50,000 gigawatt hours of energy to consumers. changing regional needs, energy efficiency initiatives, and other factors which affect electricity demand. Our organisation and our people apply a wide range We acquire strategic easements in advance of the of management, technical and support skills that have need to construct new electricity infrastructure, enabled our network to consistently benchmark in to provide long-term certainty for land use the top quartile internationally, in terms of network planning. Our easement acquisition process involves reliability and cost effi ciency, for more than a decade. environmental impact assessments, and stakeholder Powerlink is a Queensland Government Owned and community consultation. Corporation established in 1995 under the Government Maintaining the transmission network. We monitor Owned Corporations Act 1993. the condition of network components and replace them at the optimum time to ensure high levels of We are a regulated monopoly business responsible reliability. We manage our maintenance schedule and for ensuring the transmission network reliably meets processes in order to minimise impacts to customers. Queensland’s electricity needs, anticipated future growth, and also meets its responsibilities in the NEM. Contributing to the development of the NEM. The major proportion of our revenue is determined We engage with Government, regulators and industry by an independent national economic regulator, to help further the National Electricity Objective to the Australian Energy Regulator ( AER). Powerlink promote an efficient, reliable and safe electricity supply does not buy or sell electricity. for the long-term interest of Australian consumers. Offering customer-focused non-regulated business activities. We provide services to customers including connecting new power generators and large industrial customers directly to the transmission network, and provide transformer oil testing services for the electricity industry. 6 Supplying the power for Queensland A number of different organisations and corporations are involved in electricity supply in Queensland. This diagram shows where Powerlink fits into the broader structure. AUSTRALIAN ENERGY AUSTRALIAN ENERGY MARKET AUSTRALIAN ENERGY MARKET COMMISSION ( AEMC) OPERATOR ( AEMO) REGULATOR ( AER) A statutory commission responsible Operates the National Electricity Administers the National Electricity for developing the rules for the Market and manages power system Rules and makes regulated revenue National Electricity Market and security determinations for monopoly for market development networks POWER GENERATORS including: ■ coal-fired ■ gas-fired ■ renewable (hydro, wind, biomass) LARGE INDUSTRIAL HIGH VOLTAGE TRANSMISSION GRID CUSTOMERS including: Bulk transport of electricity ■ aluminium smelters POWERLINK ■ coal mines ■ rail DISTRIBUTORS Deliver electricity to consumer premises ENERGEX ERGON ENERGY ELECTRICITY RETAILERS Sell electricity to consumers and issue electricity accounts SOUTH EAST REGIONAL QUEENSLAND QUEENSLAND Homes and businesses Homes and businesses NATIONAL TRANSMISSION GRID (Qld, NSW, Vic, SA, Tas) POWERLINK ANNUAL REPORT 2009/10 7 Powerlink by numbers corporate More than 13,000 circuit kilometres of high voltage transmission network Transmission lines operating at 110 kilovolts, 132 kilovolts, 275 kilovolts and 330 kilovolts 112 substations Providing the backbone of the electricity supply chain for more than 1.8 million electricity consumers in Queensland Transporting about 50,000 gigawatt hours of energy per year Queensland Electricity Connecting 23 customers Transmission Network to the grid, including the distribution networks and large industrial customers A workforce of around Cairns 1,000 employees Townsville Mackay QUEENSLAND Gladstone Brisbane 8 Financial overview The 12 months ended 30 June 2010 saw a continuation Powerlink also receives
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