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Jemena Electricity Networks (Vic) Ltd Jemena Electricity Networks (Vic) Ltd 2016-20 Electricity Distribution Price Review Regulatory Proposal Attachment 7-5 Asset Management Plan 2016-2020 ELE PL 0004 Public 30 April 2015 Jemena Electricity Networks (Vic) Ltd Asset Management Plan 2016-2020 ELE PL 0004 Public 21 April 2015 An appropriate citation for this paper is: Asset Management Plan 2016-2020 Our Ref: ELE PL 0004 Copyright statement © Jemena Limited. All rights reserved. Copyright in the whole or every part of this document belongs to Jemena Limited, and cannot be used, transferred, copied or reproduced in whole or in part in any manner or form or in any media to any person other than with the prior written consent of Jemena. Printed or downloaded copies of this document are deemed uncontrolled. Authorisation Name Job Title Date Signature Reviewed by: General Manager, Asset Investment and Sean Ward 21/04/2015 Major Projects Approved by: Executive General Manager, Asset Alf Rapisarda 21/04/2015 Management History Rev Date Description of changes Author No 1 21/04/2015 First Issue. David Speairs and Stephen Henry Contributors: Ashley Lloyd Kieran Coughlan Catherine Lee Peter Wong Dalibor Balicevic Ranjan Vaidya Graeme Wirges Owning Functional Area Business Function Owner: Asset Investment and Major Projects Review Details Review Period: Last Review Date + 1 year NEXT Review Due: 21/04/2016 ii Public—21 April 2015 © Jemena Electricity Networks (Vic) Ltd LIABILITY DISCLAIMER This Asset Management Plan has been prepared to inform relevant stakeholders of the asset management approach, processes and strategies applied to the Jemena Electricity Network. Some of the information and statements contained in the Plan are comprised of, or are based on, assumptions, estimates, forecasts, predictions and projections made by Jemena. In addition, some of the information and statements in the Plan are based on actions that Jemena currently intends it will take in the future. Circumstances will change, assumptions and estimates may prove to be wrong, events may not occur as forecasted, predicted or projected, and Jemena may at a later date decide to take different actions to those it currently intends to take. Except for any statutory liability that cannot be excluded, Jemena will not be liable, whether in contract, tort (including negligence), equity or otherwise, to compensate or indemnify any person for any loss, injury or damage arising directly or indirectly from any person using, or relying on any content of, the Plan. When considering any part of the Plan, persons should take appropriate expert advice in relation to their own circumstances and must rely solely on their own judgement and expert advice obtained. April 2015 Jemena Asset Management Plan 2016-2020 Contents Foreword .........................................................................6 Executive Summary .........................................................................7 1 Introduction .......................................................................12 1.1 Scope .......................................................................12 1.2 Purpose .......................................................................12 1.3 Asset Management System .......................................................................13 1.4 Approval and Communication .......................................................................15 1.5 Operating Environment .......................................................................15 2 The Jemena Business Plan .......................................................................22 2.1 Purpose and Vision .......................................................................22 2.2 Values .......................................................................22 2.3 Objectives .......................................................................23 2.4 Strategy, Key Objectives and Measures .......................................................................24 3 Asset Management Policy, Strategy and Objectives .......................................................................25 3.1 Asset Management Policy .......................................................................25 3.2 Asset Management Strategy and Objectives .......................................................................25 3.3 National Electricity Rule Requirements .......................................................................25 4 Governance .......................................................................27 4.1 AMP Development Process .......................................................................27 4.2 Risk Management .......................................................................28 4.3 Capital Program Management .......................................................................29 4.4 Project Economic Evaluation and Business Case Assessments .............................................................29 4.5 Project and Program Cost Estimating Process .......................................................................30 4.6 Capital and Operational Work Plan .......................................................................31 4.7 Project Management Methodology – Gate Process .......................................................................31 4.8 Plan Delivery .......................................................................34 4.9 Procurement .......................................................................35 4.10 Customer Engagement and Responding to our Customers’ Expectations ............................................36 4.11 Stakeholder Forums .......................................................................40 5 Operating Environment .......................................................................43 5.1 Summary of Issues .......................................................................43 5.2 Technical Risks and Mitigation Plans .......................................................................43 5.3 Compliance and Safety .......................................................................46 5.4 Climate Change .......................................................................54 5.5 Emergency/Contingency Planning .......................................................................55 5.6 Bushfire Management .......................................................................56 5.7 Environmental Management Plan .......................................................................63 5.8 Embedded Generation .......................................................................63 5.9 Advanced Metering Infrastructure Plan .......................................................................64 5.10 Smart Network Plan .......................................................................64 6 Asset Performance .......................................................................66 6.1 Approach .......................................................................66 6.2 Key Issues .......................................................................67 6.3 Reliability of Supply .......................................................................67 6.4 Customer Service .......................................................................71 6.5 Quality of Supply .......................................................................74 Warning: Uncontrolled when printed. Final Document 1 of 178 At Jemena, we value Health and Safety, Teamwork, Customer Focus, Excellence and Accountability. Document No. ELE PL 0004 Date: April 2015 Jemena Asset Management Plan 2016-2020 7 Connections .......................................................................79 7.1 Requirements .......................................................................79 7.2 Key Issues .......................................................................80 7.3 Forecasting Methodology .......................................................................80 7.4 Customer Contribution Policy .......................................................................83 8 Network Augmentation .......................................................................84 8.1 Requirements .......................................................................84 8.2 Key Issues .......................................................................85 8.3 Network Augmentation Objectives .......................................................................85 8.4 Network Augmentation Planning Methodology .......................................................................86 8.5 Network Planning Criteria .......................................................................87 8.6 Network Load Growth (Demand) .......................................................................89 8.7 Network Augmentation Plan .......................................................................91 8.8 Utilisation .......................................................................92 8.9 Fault Levels .......................................................................93 8.10 Power Factor .......................................................................94 8.11 Steady State Voltage Regulation .......................................................................94 9 Asset Replacement .......................................................................95 9.1 Approach .......................................................................95 9.2 Asset Maintenance Strategy .......................................................................96
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