December 2012 Electricity Invercargill Ltd Connections Who is Electricity Invercargill? The Board’s role includes determining policy, preparing a Statement of Intent, a Business Plan and an Asset Management Plan, monitoring PowerNet’s performance, Electricity Invercargill Limited owns your electricity network. The company is reporting to the shareholder (Invercargill City Holdings Limited), publishing an owned by the Invercargill City Council through its subsidiary, Invercargill City Annual Report and ensuring that EIL complies with all relevant legislation. Holdings Limited. Electricity Invercargill Limited (EIL) was formed in 1992 but has supplied power The Directors are: Neil Boniface (Chair) JP to Invercargill since 1905, operating under a variety of different names over the Neil is a Director of PowerNet Limited, Member of OtagoNet Joint Venture Governing Committee, years, most notably the Invercargill Municipal Electricity Department. an Invercargill City Councillor and Chairman of EIL owns the electricity network equipment in Invercargill City and the Bluff the Southland Warm Homes Trust. He operates township area and supplies over 17,200 consumers. a Driving School business in Southland and also serves on several charitable trusts. Neil is a The EIL Board is made up of two Directors from the Invercargill City Council and Member of the Institute of Directors. three Directors appointed by Invercargill City Holdings Limited. EIL does not employ staff but has contractedMakarewa PowerNet to manage the electricity Thomas Campbell BSc (Metallurgy) network assets on its behalf. Tom is a former Managing Director of Comalco and General Manager of the Tiwai Smelter who Lorneville Lorneville - Dacre Rd now works as an independent company director. North Rd His directorships include Todd Corporation, West Plains Rd Standards NZ and PowerNet Limited, as well as Waikiwi being Chair of GNS Science. Tom is an Accredited Waihopai Bainfield Rd Grassmere Member of the Institute of Directors. Rosedale Waverley Bay Rd Herbert St Findlay Rd Avenal Windsor Darren Ludlow Queens Dr Glengarry Tay St Darren has been a Director of Electricity Invercargill Oteramika Rd Invercargill Dee St Hawthorndale Invercargill Limited since November 2010. He Ariport Tweed St is a fourth-term Invercargill City Councillor and Otatara Rd Stead St Georgetown Appleby Mason Rd Strathern the City’s Deputy Mayor. Darren is a trustee Kew for several community groups and Chairs the Oreti Dunns Rd Scott St Southland Museum & Art Gallery Trust Board and Beach Otatara Clifton Tisbury Gorge Rd Boundary Rd the Southland Art Foundation. He has worked in Waimatua Bluff Hwy the media and communication industries for 25 years and currently manages Radio Southland. New River Estuary Woodend Motu Rimu Rd Philip Mulvey BCom CA Tiwai Rd Sandy Point Philip joined the Board of Electricity Invercargill Awarua Limited on 1 February 2001. In October 2011 Phil was appointed NZ Chief Executive of WHK Omaui (NZ Limited). Previously he was Chief Executive of WHK, Southern. Phil also holds a number of directorships, including PowerNet Limited. He is an Greenhills Accredited Member of the Institute of Directors. Ross Smith BCom Ross joined the Board of Electricity Invercargill N Tikore Island Awarua Bay Limited in November 2003. He is Chief Executive W E Greenpoint Bluff Harbour of SBS Bank, the only member owned Building S Ocean Beach Society with Bank Registration in New Zealand. Tiwai Point Ross is also a Director of SBS Bank, Finance Bluff Now Limited, Funds Administration NZ Limited, Stirling Point Southsure Assurance Limited, PowerNet Limited and Power Services Limited. E I L N E T W O R K M A N A G E D B Y P O W E R N E T L I M I T E D Connections Electricity Invercargill Ltd 40 Year Project Completed The biggest project in Electricity Invercargill Limited’s (EIL) history has been completed. Who is PowerNet Limited? The undergrounding of 90 per cent of overhead lines in the EIL area was completed in PowerNet is an electricity network management company. late 2011 when a West Street property was connected to the underground network. EIL contracts PowerNet to manage the electricity network assets on its behalf. Former PowerNet chief executive Martin Walton, who managed and oversaw most of PowerNet staff work from an office at Racecourse Road in Invercargill, a regional the project during his 35 years with EIL and PowerNet, says completing the project office in Balclutha and a 24/7 control centre located at the Invercargill Transpower gave “a great sense of satisfaction” which also had its amusing moments. substation. Electricity Networks PoweNet Manages “Probably the funniest moment was a woman who rang to ask us when we were going to dig her garden up,” Mr Walton says. “We had done it the week before and reinstated it so well she hadn’t even noticed.” Frankton Ranfurly He says the main change over the 40 year span of the project was technological. “As time went by, technology improved so we could have better terminations to pillar Te Anau Palmerston Athol boxes, which enhanced the reliability of the network.” Manapouri Monowai Lumsden Tapanui Mr Walton says the project initially had an economic basis – it being cheaper in the Dunedin long run to maintain underground lines – but had grown to include aesthetics. Gore Milton Mataura Tuatapere Winton Balclutha “People liked the fact there were no poles or wires in their street. We had the odd Clinton person who didn’t want their lines underground, but when we told them they would Riverton Invercargill Owaka be the only person with a pole in the whole street, it suddenly became a good idea Bluff to put the lines underground.” Electricity Network Areas Stewart Island “A big part of the project was to increase public safety and enhance the visual The Power OtagoNet Company Limited Joint Venture environment,” PowerNet general manager of network operations Gary Pritchard Electricity Electricity says. “It also significantly reduces the risk of outages from natural events such as high Invercargill Limited Southland Limited winds and lightning strikes.” Mr Pritchard says the project made Invercargill one of the few cities in New Zealand with an underground lines network. “It has been a huge job. From concept to completion, that’s over 40 years, one street at a time.” Statistics for EIL - as at 31 March 2012 Connected Consumers Total 17,200 - Residential 15,050 - Industrial 100 - Commercial 2,050 Network Length 654km Consumer Density 26.4 consumers/km Number of Distribution Transformers 443 Distribution Transformer Capacity 148MVA Distribution Transformer Density 226kVA/km Maximum Demand 68.6MW Total Energy Conveyed 286GWh Regulatory Value $60million Neil Boniface (EIL Chairman) with Gerry Pethick (Power Services) Frequency outagescomparedtoothernetwork customers power infrequently by and how areaffected inNewZealand. EIL network the The graphsreliable is how highlight performance networkagainst other Zealand. in New companies EIL’s These show reliability graphs. as The graphsknown are below EIL Industry S cents/kWh 0 1 2 3 4 5 6 This graph thecostofelectricity shows network linecharges in 10.00 12.00 14.00 16.00 18.00 20.00 0.00 2.00 4.00 6.00 8.00 Top Energy Centralines Westpower OtagoNet The Lines Company Eastland Network Top Energy cut) apower acustomercanexpecttohave oftimeseachyear (number Waipa Network Buller Electricity The Power Company Centralines Powerco A I New Zealand Eastland Network Counties Power D Mainpower I andS Marlborough Lines Marlborough Lines UnitedNetworks Horizion Energy Industry S Northpower Horizion Energy Distribution N etwork OtagoNet Joint Venture A The Power Company R Electricity Ashburton Domestic Electricity Prices August 2012 DomesticElectricity Prices IFI graphs evenue Comparisons evenue Westpower Buller Electricity A Network Tasman Unison IFI Unison Networks Powerco Alpine Energy The Lines Company Scanpower Electra Vector Aurora Energy comparison toothernetworks inNewZealand. Source: Ministry -Quarterly ofEconomicDevelopment Source: survey ofdomesticenergy prices Aurora Energy Wel Networks Vector Counties Power Electricity Invercargill Scanpower Network Waitaki Northpower Nelson Electricity Wellington Electricity WEL Networks Orion NZ Wellington Electricity Lines Electra Orion NZ Minutes 100 150 200 250 300 350 400 450 500 50 Electricity Invercargill 0 Nelson Electricity Top Energy Network Waitaki Marlborough Lines Eastland Network Network Tasman Mainpower Alpine Energy Westpower eachyear) (duration acustomercanexpecttobewithoutpower inminutes Powerco Mainpower August 2012 The Lines Company G Electricity Ashburton Buller Electricity enerator / Waipa Network Electricity Ashburton M OtagoNet Joint Venture etering 58c Network Tasman Industry S R Alpine Energy Breakdown of your ofyour Breakdown etailer / electricity dollar The Power Company N etwork Waipa Network Centralines Horizion Energy A Counties Power I D Northpower I G 13c Unison Networks S T Vector D Nelson Electricity istributor (EIL) Aurora Energy 21c T Scanpower ranspower Wel Networks 8c Electra Network Waitaki Electricity Invercargill Wellington Electricity Orion NZ Network Faults due to UFB Telecommunications Rollout The programme to install the ultra-fast broadband network (UFB) across New Chorus provided PowerNet with a reassurance that the Permit to Excavate Zealand has been well publicised with Chorus and its contractors working north to Procedure was now in use and that the electrical safety training was underway. south across New Zealand. Chorus