Unison Regulatory Asset Management Plan Update 2019

REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 ISO 55001 Asset Management

AMS 671320 Unison Networks Limited | Regulatory Asset Management Plan Update 2019-29 TABLE OF CONTENTS

SECTION 1 SUMMARY OF THE PLAN

SECTION 2 BACKGROUND & OBJECTIVES

SECTION 3 SERVICE LEVELS

SECTION 4 NETWORK DEVELOPMENT PLANS

SECTION 5 ASSET MANAGEMENT PLANNING

SECTION 6 NON-NETWORK DEVELOPMENT MAINTENANCE & RENEWAL

SECTION 7 RISK MANAGEMENT

SECTION 8 EVALUATION OF PERFORMANCE

SECTION 9 CAPABILITY TO DELIVER

SECTION 10 SCHEDULES

APPENDIX GLOSSARY OF TERMS

This Regulatory Asset Management Plan (RAMP) Update is available for public disclosure and applies for the period 1 April 2019 to 31 March 2029.

SUMMARY OF THE PLAN SECTION 1SECTION SUMMARY 1 SUMMARY OF THE OF THE PLAN PLAN 1-11-1 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

CONTENTS SUMMARY OF THE PLAN...... 1-2 1.1 About Unison...... 1-2 A Changing Energy Landscape ...... 1-2 1.3 Asset Management ...... 1-2 1.5 Overview of the Asset Management Plan...... 1-4 1.5.1 Key Process Changes...... 1-4 1.5.2 Key Expenditure Changes ...... 1-5 1.6.3 Improving Network Performance...... 1-8 1.6.4 Overhead to Underground (OHUG) Conversions ...... 1-9

Table 1-5: Network Performance Improvement Projects ...... 1-8

Figure 1-3: Asset Management Policy...... 1-3 Figure 1-4: Asset Management System Framework ...... 1-4 Figure 1-6: AMP Risk Cost Profiles ...... 1-5 Figure 1-7: Network Capital Expenditure by Region ...... 1-7

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• Unison’s Strategic Asset Management Plan that specifies its asset management objectives and how they will be achieved, and SUMMARY OF THE PLAN • Unison’s three key asset management processes: Asset Management Planning – development of plans that ensure asset management 1.1 About Unison o objectives will be met, including asset renewal and asset capability improvement A Changing Energy Landscape o Lifecycle Delivery – the safe execution of asset management plans, ensuring that work is delivered efficiently and in conformance to quality standards, and The energy landscape is likely to change dramatically in the coming years and it is important for Unison o Continual Improvement – the monitoring, measurement and evaluation of the to evolve if it is to deliver value to its stakeholders. The timing and exact nature of the changes are performance of assets and asset management, and actions taken to continually unknowable, so it is also critical that Unison's existing strengths in managing electricity distribution improve how Unison does things. assets continue to be enhanced. As the environment in which Unison operates is changing faster than ever before, Unison will need to have an agile strategy and the ability to manage future uncertainties Unison’s Asset Management Policy is set out in Figure 1-3. to remain relevant. Increasing support for a decarbonised energy policy coupled with breakthroughs in technology mean uptake of Distributed Energy Resources and the efficient integration of them within the electricity distribution system are becoming almost inevitable.

For strategy purposes, Unison uses a combination of megatrends and scenarios to prepare for an uncertain future. Unison initially references megatrends to explore the social and technology trends that are shaping the world, and which are most likely to be relevant to Unison. Following this, scenarios are developed to structure Unison perceptions about alternative future environments in which today’s decisions might be played out. The opportunities and attendant risks generally fall under two broad categories; rate of trend development (Incrementalism or Metamorphosis), and ability to manage change (Master or Marionette).

Some investment risks will need to be taken to ensure Unison meets its customers’ short-term expectations, irrespective of what the future looks like, but it is important that Unison is proactive, establish strong partnerships and invest wisely so that we can embark on a least regrets path towards a changing energy landscape.

See section 4.4 for more detail on how Unison plans to use scenarios to identify future network constraints under each of the four scenarios, and how this work will be used to develop a least regrets pathway.

1.3 Asset Management Managing electricity networks is Unison’s core skill set, and Unison is very proud of its asset management capabilities. Unison sees asset management as a long-term undertaking, because of Figure 1-3: Asset Management Policy the high dependence that its customers have on its infrastructure now and will have for the foreseeable future, and the long-lived nature of assets Unison manages.

At the heart of Unison’s asset management philosophy is the goal of balancing cost, risk and performance according to Unison’s stakeholders’ requirements. To ensure that this idea is embedded at all levels of asset management – from senior leadership decision making, right down to specific maintenance interventions carried out on assets – Unison has developed and embedded an Asset Management System (AMS). The AMS ties together and aligns everything Unison does in asset management.

Core components of the AMS include Unison’s Asset Management Policy, which specifies:

• 15 principles that Unison’s senior management team has committed to in asset management

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Unison has developed a diagram of its AMS as a communication and education tool, and this is risk management at Unison is FC1003 Unison Group Risk Management Framework, the risk provided below. This shows how line of sight in asset management flows from customers and external schema is aligned to this document to provide alignment across the business. stakeholders, into Unison’s strategy and objectives, and through Unison’s three major asset A key output of the risk schema shows the level of expenditure required to be spent to address the management processes: different levels of risk. This graph can be used to challenge expenditure across the different risk levels • Asset Management Planning over the ten-year plan. Asset risk assessments range from 1-125, where 1 represents a risk which is • Lifecycle Delivery, and as low as reasonably practicable, where 125 represents a very high risk to the network. Expenditure • Continual Improvement. that is required to address higher risk assets is given priority over lower risk alternatives.

$45,000,000

$40,000,000 Carryover $35,000,000 0: 1-5

$30,000,000 1: 5-10 2: 10-15 $25,000,000 3: 15-20 $20,000,000 4: 20-25 Expenditure $15,000,000 5: 25-30

$10,000,000 6: 30-35 7: 35-40 $5,000,000 8: 40-45 $- 9: 45+ 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Financial Year

Figure 1-6: AMP Risk Cost Profiles

Figure 1-4: Asset Management System Framework 1.5.2 Key Expenditure Changes A significant change from Unison’s disclosed 2016/17 Asset Management Plan is an uplift in expenditure associated predominantly with Unison’s overhead conductor asset fleet. This increase in expenditure is reflected in Section 5 and Schedule 12a. 1.5 Overview of the Asset Management Plan The Renewal Envelope (refer section 5.4.8) is a Unison developed ‘top-down’ budgeting tool that predicts the replacement expenditure of each asset class based on the installation date, condition 1.5.1 Key Process Changes (where known) and calculates a remaining life expectancy. The outputs from this model for overhead Unison’s Asset Management Policy states that Unison will take a risk-based quality systems approach conductor indicates there is an expected wall of expenditure required in approximately year 15. to asset management, and will implement asset management plans that: This analysis, combined with condition monitoring in the field has highlighted there is a need to • propose efficient levels of expenditure increase expenditure prior to year 15. This is to ensure that risks associated with Unison’s overhead • manage risk in the asset portfolio, and conductor fleet are maintained at an acceptable level and replacement costs over the planning period • ensure customer service levels will be met consistently over the long-term. remain realistic and sustainable.

To achieve this, Unison has implemented a risk schema to ensure all issues that are registered in the In collaboration with the University of Canterbury (UC), a project to better understand the condition of AMP will be prioritised according to risk in a consistent manner. The corporate document that governs a subset of Unison’s overhead conductor fleet was undertaken in 2018/19. While the project focused on aged 7/0.064 copper conductors, the project learnings are transferrable to Unison’s fleet of copper

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conductors. Conductor samples were collected from various sites around Unison’s network and tested by the UC to determine their mechanical and electrical properties and compare the degree and rates of conductor degradation. Following this, analysis was undertaken on various sample parameters

including age, environmental conditions (H2S, coastal, humidity, wind) and span lengths to better understand which factors had the biggest influence on the conductor’s condition and subsequent remaining life expectancy. This testing and analysis confirmed that many of the samples tested were approaching end of life.

Unison’s overhead conductor, condition-based risk model is being updated and enhanced based on the findings and outputs of this project. This model enhancement included a move to “linear assets” to allow more granular asset information to be captured and recorded against specific load sections, including condition, inspection, maintenance and test information and any associated costs.

Consequently, the model has identified approximately 450 kilometres of 7/0.064 copper 11kV conductor for replacement over the next ten years, equating to an approximate annual spend of approximately $6.72M. A further project is planned for 2019/20 to enhance condition understanding of Unison’s aluminium conductors. There is a high likelihood that the result of this work will highlight further investment requirements beyond the ten-year regulatory planning horizon to replace poor condition aluminium conductors.

Figure 1-7: Network Capital Expenditure by Region

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1.6.4 Overhead to Underground (OHUG) Conversions Unison’s electricity network includes the main urban areas of Napier and Hastings in Hawke’s Bay 1.6.3 Improving Network Performance and Taupo and Rotorua in the Central Region. Overhead lines form an essential part of Unison’s The full lifecycle asset management and network development plans and options are presented in network, distributing electricity from the Transpower owned transmission network to end consumers. Sections 4 and 5 of the RAMP. The projects below are some key projects in the early years of the ten- Unison manages overhead powerlines which in total span more than 5,500km across both urban and year plan that are expected to have a significant positive impact on network performance. rural environments.

Unison endeavors to meet the requirements of its stakeholders which involves balancing cost, risk and performance. In this trade-off, one can expect that an underground network will be safer and Year Project Name Description Region perform better by avoiding risks assosiated with overhead networks, e.g. trees in lines and car vs pole incidents, etc. If only looking at these two elements of the balancing act, the decision to underground 2019/20 Acacia Bay Area There are multiple constraints that require resolution Taupo becomes an easy decision to make. However, the conversion of overhead lines to underground cables Reliability within a compact area in Acacia Bay Village. Installing a Improvements recloser and an RMU will reduce the number of and their ongoing management comes at a significantly higher cost than maintaining overhead lines. customers impacted by outages in the area. While the Hawke’s Bay Power Consumers’ Trust no longer (in lieu of dividends) fund Overhead to Underground (OHUG) Conversions, Unison will continue with an OHUG programme across its 2019/20- Increased Multiple areas of the network have been identified where Hastings, network footprint. As there will be times where the optimal asset management decision (where the 2024/25 sectionalisation our ability to isolate a faulted area is limited. This means Napier, benefits assosiated with risk and performance outweighs the cost of undergrounding) will be to convert that in the event of a fault more customers remain Rotorua overhead lines to underground reticulation. without power for a longer period of time. Installation of additional remote switches will enable restoration of To facilitate the ongoing development of this programme, Unison is in the process of refreshing its power to more customers before the fault is rectified. overhead conductor replacement model and OHUG policy. The OHUG Policy will set out the key principles and criteria that Unison will use to make decisions on when OHUG Conversion is 2019/20 Fault Anticipation Locating faults can be difficult, increasing the length of Hastings, appropriate. These principles will be applied in conjunction with normal risk assessment and asset Devices time that power is out for customers. The fault Napier, investment decision making processes as specified in Section 5 of this document. The policy criteria anticipation devices will group and predict faults, as well Taupo, will be appropriately weighted to ensure the prudent investment of shareholder funds. as providing additional information on faults that have Rotorua occurred, allowing Unison to reduce response times and While the key principles are still being finalised, when developing and evaluating proposals for restore power to customers more quickly. Unison’s OHUG programme, the following aspects are likely to be considered:

2023- Camberley A project is scheduled to upgrade critical assets at the Hastings • Where assets are located within urban areas and are reaching the end of their engineering or 2025 Substation Upgrade Camberley Substation. The upgrade incorporates the economic lives replacement of power transformers and 33kV and 11kV • Where there is a requirement for asset replacement and third-party funding will contribute to switchgear. When completed, the upgrade will ensure a or cover the cost differential between underground and overhead reticulation reliable supply with enhanced capacity to provide • Where there are significant and tangible safety and/or asset lifecycle considerations or risks electricity now and into the future to the surrounding area that will be mitigated by the undergrounding of existing overhead assets which, “like for like” and many critical customers, including the Hawke’s Bay replacement may not address Hospital. • Where there are synergies with other work occurring in the area, for example roading, three 2019- Reporoa Area There are a number of voltage and reliability constraints Rotorua waters, etc 2025 Reliability in the Reporoa area that are going to be addressed • Where there is clear community or stakeholder interest in OHUG conversion from the Improvements through a series of projects over the next five years. perspective of safety, visual amenity, asset reliability, benefit to the local economy, and other These will ensure appropriate voltage and minimise the relevant considerations, and number of customers affected by outages in the area. • Where projects will significantly improve network performance.

Table 1-5: Network Performance Improvement Projects

BACKGROUND & OBJECTIVES SECTION 2 BACKGROUNDSECTION 2 BACKGROUND & OBJECTIVES & OBJECTIVES 2-12-1 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

CONTENTS BACKGROUND AND OBJECTIVES ...... 2-2 2.3 Overview of Unison’s Asset Management Systems ...... 2-2 Asset Management Policy...... 2-2 Asset Management Objectives ...... 2-3 2.5 Planning Period of the Regulatory Asset Management Plan Update ...... 2-7 2.6 Date of Director Approval...... 2-7 2.11 Overview of Systems and Information Data Management...... 2-8 Limitations of Asset Management Data ...... 2-8

Table 2-1: Asset Management Policy...... 2-3 Table 2-3: Asset Management Objectives...... 2-7 Table 2-22: Asset Information Requirements Status...... 2-8

Figure 2-14: Data Quality Dashboard...... 2-9

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Unison’s Values Principles

BACKGROUND AND OBJECTIVES 12. Monitoring, measuring and reporting on asset and asset management performance. 2.3 Overview of Unison’s Asset Management Systems Team Work 13. Developing the capability of our people and teams to enable them to Asset Management Policy reach their potential in asset management. Unison’s Asset Management Policy is a foundational document in the AMS. It ensures that asset 14. Fostering a positive, diverse and inclusive work environment that management is aligned and connected with the purpose, vision and values of the organisation. The motivates our people to deliver their best each day. policy was comprehensively reviewed in September 2018, authorised by the General Manager 15. Ensuring that our people are supported and empowered to find ways to Networks and Operations, and approved by the Group Chief Executive. The policy is a standalone do things better and continually improve asset management at Unison. controlled document with registration AMS-0001 and is presented around the Unison offices and UCSL depots in high impact locations to promote awareness. Table 2-1: Asset Management Policy

The policy comprises 15 principles that Unison commits to in delivery of asset management, as set out in Table 2-1. The policy principles are linked to the Asset Management Objectives.

Asset Management Objectives Unison’s Values Principles Unison has 44 Asset Management Objectives (AMOs) that are specified in the Strategic Asset Management Plan. The objectives are measurable and supported by a performance evaluation Safety and Wellbeing 1. Ensuring that our people take personal responsibility for managing risks framework so that Unison’s effectiveness as an asset manager can be tracked over time, and to ensure the safety of themselves, their colleagues, contractors and improvement opportunities can be identified. members of the public.

2. Ensuring that our assets are safe, resilient, free from defects and do not The AMOs are set out in Table 2-3: Asset Management Objectives. A reference to the most closely impact adversely on the environment. related principle of the Asset Management Policy is provided in respect of each objective to make explicit the linkages between Asset Management Policy and strategy. Policy principle 12 is met 3. Ensuring compliance with all applicable legislative and regulatory through the overall process of defining objectives and monitoring performance against them. requirements, and industry and internal standards.

Excellence 4. Taking a risk-based, quality systems approach to asset management through an asset management system that is ISO 55001 certified. Key Result Objective Category Asset Management Objective AM Policy 5. Using data, information, technology and effective processes to support Area Principle fact-based and robust decision making. Health, Unison’s assets are 1. No incidents resulting in harm to members 1 6. Implementing asset management plans that: Safety and safe of the public due to asset failures, or near a. propose efficient levels of expenditure Environment misses which had the potential to cause b. manage risk in the Asset Portfolio, and harm. c. ensure customer service levels will be met consistently over the long-term. 2. No incidents resulting in harm to Unison 1 staff or contractors due to asset failures, or Customer Service 7. Investing in assets prudently and undertaking asset management in a near misses which had the potential to way that represents value for money for our customers. cause harm.

8. Working closely with our customers and other stakeholders, and being Asset-related health 3. Health and safety risks posed by known 2 responsive to all feedback, requests and complaints. and safety risks are asset defects are followed up within required 9. Playing a positive, engaged and communicative role in the development treated proactively timeframes returning residual risk to within of infrastructure to serve our communities. Unison’s risk appetite.

Integrity 10. Acting ethically and transparently to gain the trust and respect of our Unison meets its 4. No environmental breaches resulting in 3 communities. environmental environmental harm or near miss due to the obligations failure of an asset, asset system or 11. Providing appropriate levels of resource to enable asset management associated containment. objectives to be achieved.

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Key Result Objective Category Asset Management Objective AM Policy Key Result Objective Category Asset Management Objective AM Policy Area Principle Area Principle

5. Unison staff and contractors observe 3 Financial Asset management 16. Network Complex and Specialist projects 7 environmental guidelines and legislation supports effective are delivered to budget. relevant to Unison assets, including budget management chemicals, controlled gases and hazardous 17. Annual Network CapEx programme is 7 substances. delivered to budget (includes Network Complex, Specialist and minor CapEx Customer Unison delivers a 6. Deliver a compliant and appropriate quality 7 Provisions). Service compliant and of supply. appropriate quality of 18. Annual Network OpEx programmes are 7 supply delivered to budget (Preventive Maintenance, monitoring and inspections, Unison responds 7. Complaints relating to asset management 8 Corrective/Reactive Maintenance and effectively to asset are registered effectively and appropriate Vegetation Management). management-related actions are undertaken to support their complaints resolution. Unison realises Smart 19. The AMS supports the Corporate Strategic 7 Grid financial benefit Objective of realising benefits from the Unison responds 8. Deliver fault response and resolution as per 9 smart grid investment. effectively to faults requirements published in Use of Systems Agreements between Unison and electricity Network Unison sustainably 20. Meet or exceed the lower of the SAIDI and 6 retailers. Reliability meets network SAIFI targets from Commerce Commission performance targets (Default Price-quality Path), and Hawke’s Unison minimises 9. Deliver continuity of service to ICPs as per 8 Bay Power Consumers' Trust (SCI). outages to customers requirements published in Use of Systems Agreements between Unison and electricity 21. Meet or exceed internal business targets for 6 retailers. SAIDI caused by equipment failures and human error on the part of Unison. Unison conforms to 10. Conform to the timing of advertised 7 shutdown windows for shutdown windows for planned work. The frequency of asset 22. Frequency of equipment failures declining 6 planned work failures is declining from 2011/12 – 2015/16 average baseline.

The network complies 11. Defined security criteria are met. 7 Innovation Unison has an Asset 23. Implement an Asset Management System 4 with Unison’s security and Management System aligned with ISO 55001. criteria Continual that supports Improvement achievement of 24. Successful delivery of Capability Projects 4 People and Unison's people are 12. Employees are aware of Unison’s Asset 13 Corporate Strategic initiated under the AMS Programme. Competency aware of their role in the Management Policy and understand the Objectives Asset Management principles in relation to their roles. 25. The Asset Management Plan provides a 6 System ten-year forward view on risks in the asset and optimised and actionable projects to Unison’s people are 13. People receive asset management training 13 control those risks. competent in asset and development in line with the management requirements of their role. The AMS is being 26. Very high priority continual improvement 4 continually improved opportunities are completed within 90 days 14. Unison personnel are competent and 11 of being assigned a priority ranking. consistently observe good work practices as defined under the Asset Management Unison’s asset 27. Procedures that represent an organisational 4 System. management planning capability to undertake risk-based Asset is risk-based Renewal Planning are utilised. 15. Records of asset management training and 11 relevant competencies and qualifications attained are maintained for Unison people.

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Key Result Objective Category Asset Management Objective AM Policy Key Result Objective Category Asset Management Objective AM Policy Area Principle Area Principle

28. Procedures that represent an organisational 4 Unison is, and is 41. The organisation is managed sustainably to 10 capability to undertake risk-based Network perceived to be, an preserve Unison’s reputation. Development Planning are utilised. ethical organisation

29. Procedures that represent an organisational 4 Unison is a resilient 42. Unison has effective contingency plans in 2 capability to undertake risk-based asset asset manager place to control risk and preserve network maintenance planning are utilised. operations during a significant external event. Service Unison is competent in 30. Capital projects issued by Unison are well- 7 Delivery the delivery of capital defined according to the requirements of the 43. Unison has effective recovery plans in place 2 and maintenance Asset Management Planning Framework which can be rapidly implemented to programmes of work (AMS1001). comprehensively return full services after a significant external event. 31. On time delivery of network CapEx Complex 6 and Specialist projects. 44. Unison carries essential spares, materials 5 and equipment to recover from the failure of 32. Preventive Maintenance backlog is 6 a significant asset or asset system. managed effectively. Table 2-3: Asset Management Objectives Unison is a competent 33. Reduce frequency of corrective 7 maintenance maintenance through appropriate levels of organisation preventive maintenance.

Processes for managing 34. Condition assessment programmes 5 2.5 Planning Period of the Regulatory Asset Management Plan Update asset information are undertaken by contractors provide effective effective feedback on asset health and risks to the The RAMP update covers the period from 1 April 2019 to 31 March 2029. Necessarily all prospective Asset Management Team. information is provided based upon the currently best assumed future. As for any long-term planning exercise, uncertainty increases the further forward in the future Unison looks. This is due to factors 35. Ensure up-to-date asset information through 5 including the condition of assets, growth of demand, the cost and availability of contracting resources, timely processing of received as-built technology changes, and stakeholder expectations. information into Unison’s enterprise systems. Accordingly, for the first five years of the planning period, more detailed information in respect of asset management plans is provided. In the second half of the planning period, plans are presented in less Contracting service 36. Contractor personnel are competent and 15 detail reflecting increasing uncertainty. providers deliver quality consistently observe good work practices outcomes safely and meet Unison quality requirements.

37. Contractor health and safety performance 1 targets are met. 2.6 Date of Director Approval Assurance Unison is effective in 38. Ensure that no formal complaint reaches the 3 The RAMP Update was approved by Unison’s Board of Directors on 22 March 2019. managing its legislative stage of legal challenge or government obligations investigation in relation to asset management.

Vegetation issues are 39. Ensure risk of non-compliance with the 3 managed proactively Electricity (Hazards from Trees) Regulations 2003 is as low as reasonably practicable.

The AMS is quality 40. Internal audits of AMS processes are 4 assured completed according to the plan.

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In order to provide a top-level view of the health of asset information in terms of quality and accuracy, the Data Quality Dashboard (DQD) has been developed. This tool is available on Unison’s intranet 2.11 Overview of Systems and Information Data Management and provides a view of the quality of the information supporting each element of the Asset Management System. Limitations of Asset Management Data The state of Unison’s asset information is only known for the eleven of the 15 capabilities under the The following table shows progress capturing asset information requirements and assessing quality. ‘Plan’ and ‘Do’. Where data quality has been analysed, this is shown on the snapshot from the data The last column shows the target date for completion. Those in orange are currently underway but are quality dashboard below. at risk of being completed by the proposed date. Those in green are complete. Once all capability areas are completed, then a complete view of Unison’s asset information quality will be available and an informed decision about where to focus improvement effort can be made.

It is hoped that 75% of Unison’s capabilities are being monitored in terms of asset information by the end of March 2019.

Requirements Automated Quality Complete by Capability in Data Quality Checks Assessed end of March Dashboard Implemented

Maintenance Planning Yes Partial 2020

Vegetation Planning Yes 2020

Asset Renewal Planning Yes Yes Yes 2018

Works Planning and Consolidation Yes Yes Yes 2019

CapEx Programme Establishment Partial Partial 2020

Customer Projects Planning Yes 2019

Network Development Planning Yes Yes Yes 2018 Figure 2-14: Data Quality Dashboard

Contingency Management 2020

Switching and Outage Management Yes Yes Yes 2019

Work Management Partial 2020

Vegetation Management Yes 2020

Contractor Management Partial 2020

Asset Portfolio Control 2020

Asset Information Management Yes Yes Yes 2019

Performance Evaluation Yes Yes Yes 2019

Continual Improvement Yes Yes Yes 2019

Internal Audit Yes Yes Yes 2019

Financial Management Yes Yes Yes 2019

Table 2-22: Asset Information Requirements Status

SERVICE LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-13-1 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

CONTENTS SERVICE LEVELS...... 3-7 3.1 Introduction...... 3-7 3.2 Performance Evaluation Policy ...... 3-7 Purpose ...... 3-7 Principles...... 3-7 3.3 Performance Evaluation Procedure ...... 3-8 Further Detail on Service Levels ...... 3-9 Develop Performance Measures...... 3-10 Report on AMS Performance ...... 3-10 3.4 Performance Measures ...... 3-10 No incidents resulting in harm to members of the public due to asset failures, or near misses which had the potential to cause harm...... 3-11 No incidents resulting in harm to Unison staff or contractors due to asset failures, or near misses which had the potential to cause harm...... 3-12 Health and safety risks posed by known asset defects are followed up within required timeframes returning residual risk to within Unison’s risk appetite ...... 3-13 No environmental breaches resulting in environmental harm or near miss due to the failure of an asset, asset system or associated containment ...... 3-14 Unison staff and contractors observe environmental guidelines and legislation relevant to Unison assets, including chemicals, controlled gases and hazardous substances ...... 3-15 Deliver a compliant and appropriate quality of supply ...... 3-16 Complaints relating to asset management are registered effectively and appropriate actions are undertaken to support their resolution...... 3-17 Deliver fault response and resolution as per requirements published in Use of Systems Agreements between Unison and electricity retailers...... 3-18 Deliver continuity of service to ICPs as per requirements published in Use of Systems Agreements between Unison and electricity retailers...... 3-19 Conform to the timing of advertised shutdown windows for planned work ...... 3-19 Defined security criteria are met ...... 3-20 Employees are aware of Unison’s Asset Management Policy and understand the principles in relation to their roles...... 3-21 People receive asset management training and development in line with the requirements of their role 3-23 Unison personnel are competent and consistently observe good work practices as defined under the Asset Management System ...... 3-24 Records of asset management training and relevant competencies and qualifications attained are maintained for Unison people ...... 3-25 Network Complex and Specialist projects are delivered to budget...... 3-26 Annual Network CapEx programme is delivered to budget (includes Network Complex, Specialist and minor CapEx Provisions)...... 3-27 Annual Network OpEx programmes are delivered to budget (Preventive Maintenance, monitoring and inspections, Corrective/Reactive Maintenance and Vegetation Management) ...... 3-28 The AMS supports the Corporate Strategic Objective of realising benefits from the smart grid investment ...... 3-30 Meet or exceed the lower of the SAIDI and SAIFI targets from Commerce Commission (Default Price- quality Path), and Hawke’s Bay Power Consumers' Trust (SCI) ...... 3-31 Meet or exceed internal business targets for SAIDI caused by equipment failures and human error on the part of Unison...... 3-33

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Frequency of equipment failures declining from 2011/12 – 2015/16 average baseline ...... 3-34 Table 3-5: Performance Targets - Health and Safety Risks posed by known Asset Defects are followed up Implement an Asset Management System aligned with ISO 55001...... 3-35 within required timeframes returning Residual Risk to within Unison’s Risk Appetite ...... 3-13 Successful delivery of Capability Projects initiated under the AMS Programme...... 3-36 Table 3-6: Historic Performance - Number of Urgent and Critical Asset Defects not followed up within required The Asset Management Plan provides a ten year forward view on risks in the asset and optimised timeframes...... 3-14 and actionable projects to control those risks ...... 3-37 Table 3-7: Performance Targets - No Environmental Breaches resulting in Environmental Harm or Near Miss Very high priority continual improvement opportunities are completed within 90 days of being due to the Failure of an Asset, Asset System or Associated Containment ...... 3-14 assigned a priority ranking ...... 3-38 Table 3-8: Historic Performance - No Environmental Breaches resulting in Environmental Harm or Near Miss Procedures that represent an organisational capability to undertake risk-based Asset Renewal due to the Failure of an Asset, Asset System or Associated Containment ...... 3-15 Planning are utilised...... 3-39 Table 3-9: Performance Targets - Unison Staff and Contractors observe Environmental Guidelines and Procedures that represent an organisational capability to undertake risk-based Network Legislation relevant to Unison Assets, Including Chemicals, Controlled Gases and Hazardous Development Planning are utilised...... 3-39 Substances...... 3-15 Procedures that represent an organisational capability to undertake risk-based asset maintenance Table 3-10: Historic Performance - External Audit: Number of Non-Compliances measured through Biennial planning are utilised ...... 3-40 External Environmental Audit Programme by Competent Assessor ...... 3-16 Capital projects issued by Unison are well-defined according to the requirements of the Asset Table 3-11: Performance Targets - Unison delivers a Compliant and Appropriate Quality of Supply...... 3-16 Management Planning Framework (AMS1001)...... 3-41 Table 3-12: Historic Performance - Number of verified power quality complaints ...... 3-17 On time delivery of network CapEx Complex and Specialist projects ...... 3-42 Table 3-13 Historic Performance - The number of verified power quality complaints unresolved more than Preventive Maintenance backlog is managed effectively ...... 3-43 three months after being verified ...... 3-17 Reduce frequency of corrective maintenance through appropriate levels of preventive maintenance Table 3-14: Performance Targets - Complaints relating to Asset Management are registered effectively and 3-44 appropriate actions are undertaken to support their resolution ...... 3-17 Condition assessment programmes undertaken by contractors provide effective feedback on asset Table 3-15: Performance Targets - Deliver Fault Response and Resolution as per requirements published in health and risks to the Asset Management Team...... 3-45 Use of Systems Agreements between Unison and Electricity Retailers...... 3-18 Ensure up to date asset information through timely processing of received as-built information into Table 3-16: Performance Targets - Deliver Continuity of Service to ICPs...... 3-19 Unison’s enterprise systems ...... 3-45 Table 3-17: Performance Targets - Conform to the timing of Advertised Shutdown Windows for Planned Work Contractor personnel are competent and consistently observe good work practices and meet Unison 3-20 quality requirements...... 3-46 Table 3-18: Historic Performance - Percentage of Planned Shutdowns finishing outside of Notified Outage Contractor health and safety performance targets are met ...... 3-49 Window...... 3-20 Ensure that no formal complaint reaches the stage of legal challenge or government investigation in Table 3-19: Performance Targets - Defined Security Criteria are Met...... 3-21 relation to asset management...... 3-51 Table 3-20: Performance Targets - Employees are aware of Unison’s Asset Management Policy and Ensure risk of non-compliance with the Electricity (Hazards from Trees) Regulations 2003 is as low understand the principles in relation to their roles ...... 3-22 as reasonably practicable ...... 3-52 Table 3-21: Historic Performance - Policy Roadshow and Annual refreshers delivered to relevant groups in the Internal audits of AMS processes are completed according to the plan...... 3-53 business ...... 3-22 The organisation is managed sustainably to preserve Unison’s reputation...... 3-53 Table 3-22: Historic Performance - Policy posted on the walls in all areas of Unison and UCSL ...... 3-22 Unison has effective contingency plans in place to control risk and preserve network operations Table 3-23: Historic Performance - Policy Integrated into Unison Induction Programme...... 3-23 during a significant external event...... 3-54 Table 3-24: Performance Targets - People receive Asset Management Training and Development in line with Unison has effective recovery plans in place which can be rapidly implemented to comprehensively the requirements of their role ...... 3-23 return full services after a significant external event ...... 3-55 Table 3-25: Historic Performance - Number of New Role or Job Description Changes that are Missing Unison carries essential spares, materials and equipment to recover from the failure of a significant Competencies Aligned to the Asset Management System...... 3-24 asset or asset system...... 3-57 Table 3-26: Performance Targets - Unison personnel are competent and consistently observe good work 3.5 Determination Reference Mapping Table ...... 3-59 practices as defined under The Asset Management System ...... 3-24 Table 3-27: Historic Performance - Number of post-project reviews of Network Projects undertaken...... 3-25 Table 3-28: Historic Performance - Number of post-project reviews of Capability Projects undertaken ..... 3-25 Table 3-1: Performance Targets - No Incidents resulting in harm to Members of the Public due to Asset Table 3-29: Performance Targets - Records of Asset Management Training and relevant competencies and Failures, or Near Misses which had the Potential to Cause Harm ...... 3-11 qualifications attained are maintained for Unison people ...... 3-26 Table 3-2: Historic Performance - Number of Asset Failures resulting in an Injury (Serious Harm) or Fatality Table 3-30: Historic Performance - Number of Non-Conformances from external audit of records of Asset to the Public...... 3-12 Management Training, Competencies and Qualifications are maintained effectively ...... 3-26 Table 3-3: Performance Targets - No Incidents resulting in Harm to Unison Staff or Contractors due to Asset Table 3-31: Performance Targets - Network Complex and Specialist projects are delivered to budget ..... 3-27 Failures, or Near Misses which had the Potential to Cause Harm ...... 3-12 Table 3-32: Historic Performance - Actual Project Expenditure is ±20% of estimate registered in the AMP (as Table 3-4: Historic Performance - Number of Asset Failures resulting in an Injury (Serious Harm) or Fatality a percentage of total number of projects completed each year)...... 3-27 to Unison Staff or Contractor...... 3-13 Table 3-33: Performance Targets - Annual Network CapEx Programme is delivered to budget (includes Network Complex, Specialist and Minor CapEx provisions)...... 3-28

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Table 3-34: Historic Performance - Actual network CapEx is ±10% of total budget. Programme delivered within Table 3-61: Performance Targets - Condition Assessment Programmes undertaken by Contractors provide tolerance limits ...... 3-28 effective feedback on Asset Health and Risks to the Asset Management team ...... 3-45 Table 3-35: Performance Targets - Annual Network OpEx Programmes are delivered to budget (Preventive Table 3-62: Performance Targets - Ensure up to date Asset Information through timely processing of received Maintenance, Monitoring and Inspections, Corrective/Reactive Maintenance and Vegetation As-Built information into Unison’s Enterprise Systems...... 3-46 Management) ...... 3-29 Table 3-63: Historic Performance - Average Number of days to process As-Built Information is below agreed Table 3-36: Historic Performance - Actual Reactive OpEx Is ±10% of Total Budget. Programme delivered target ...... 3-46 within tolerance limits ...... 3-30 Table 3-64: Performance Targets - Contractor Personnel are competent and consistently observe good work Table 3-37: Historic Performance - Actual Routine and Corrective Maintenance and Inspection OpEx Is ±10% practices and meet Unison quality requirements ...... 3-47 of total Budget. Programme delivered within Tolerance Limits...... 3-30 Table 3-65: Historic Performance - Number of Severity 1 Non-Conforming internal audits of contractor work Table 3-38: Historic Performance - Actual Asset Replacement and Renewal OpEx Is ±10% Of total budget. practices and quality outcomes...... 3-48 Programme delivered within Tolerance Limits ...... 3-30 Table 3-66: Historic Performance - Number of Severity 2 Non-Conforming internal audits of contractor work Table 3-39: Historic Performance - Actual Vegetation Management OpEx Is ±10% Of total budget. Programme practices and quality outcomes...... 3-48 delivered within Tolerance Limits...... 3-30 Table 3-67: Historic Performance - Number of Severity 3 Non-Conforming internal audits of contractor work Table 3-40: Performance Targets - The AMS supports the Corporate Strategic Objective of realising benefits practices and quality outcomes...... 3-48 from the Smart Grid Investment...... 3-31 Table 3-68: Historic Performance - Number of Severity 4 Non-Conforming internal audits of contractor work Table 3-41: Historic Performance - Value of benefits arising from Smart Grid compared to targets...... 3-31 practices and quality outcomes...... 3-49 Table 3-42: Performance Targets - Meet or Exceed the lower of the SAIDI and SAIFI targets from Commerce Table 3-69: Performance Targets - Contractor Health and Safety Performance Targets are met ...... 3-49 Commission (Default Price-Quality Path), and Hawke’s Bay Power Consumers’ Trust (SCI) . 3-32 Table 3-70: Historic Performance - Number of Severity 1 Non-Conforming contractor internal Health and Table 3-43: Performance Targets - Meet or exceed internal business targets for SAIDI caused by equipment Safety Audits ...... 3-50 failures and human error on the part of Unison ...... 3-33 Table 3-71: Historic Performance - Number of Severity 2 Non-Conforming contractor internal Health and Table 3-44: Historic Performance - Internal Business Target for SAIDI caused by equipment failures and Safety Audits ...... 3-50 human error versus actual SAIDI...... 3-34 Table 3-72: Historic Performance - Number of Severity 3 Non-Conforming contractor internal Health and Table 3-45: Historic Performance - Internal business target for SAIFI caused by equipment failures and human Safety Audits ...... 3-50 error versus actual SAIFI ...... 3-34 Table 3-73: Historic Performance - Number of Severity 4 Non-Conforming contractor internal Health and Table 3-46: Performance Targets - Frequency of Equipment Failures declining from 2011/12 – 2015/16 Safety Audits ...... 3-50 average baseline...... 3-34 Table 3-74: Performance Targets - Ensure that no formal complaint reaches the stage of legal challenge or Table 3-47: Performance Targets - Implement an Asset Management System aligned with ISO 55001 ... 3-35 Government investigation in relation to Asset Management ...... 3-51 Table 3-48: Historic Performance - External Audit: Certification by accredited and competent assessor... 3-36 Table 3-75: Historic Performance - Number of instances of unanticipated legal challenge or Government Table 3-49: Performance Targets - Successful delivery of Capability Projects initiated under the AMS investigation occurring ...... 3-51 Programme...... 3-36 Table 3-76: Performance Targets - Ensure risk of Non-Compliance with The Electricity (Hazards from Trees) Table 3-50: Performance Targets - The Asset Management Plan provides a ten year forward view on risks in Regulations 2003 is as low as reasonably practicable ...... 3-52 the Asset and Optimised and Actionable Projects to control those risks...... 3-37 Table 3-77: Performance Targets - Internal Audits of AMS processes are completed according to the plan . 3- Table 3-51: Performance Targets - Very high Priority continual improvement opportunities are completed 53 within 90 days of being assigned a priority ranking ...... 3-38 Table 3-78: Historic Performance - Number of Internal Audits completed according to Unison’s Internal Audit Table 3-52: Historic Performance - Number of Continual Improvement opportunities with a priority of 5 or 6 Framework ...... 3-53 Not completed within 90 Days of being prioritised ...... 3-38 Table 3-79: Performance Targets - The organisation Is managed sustainably to preserve Unison’s reputation Table 3-53: Performance Targets - Procedures that represent an Organisational Capability to undertake risk- 3-54 based Asset Renewal Planning are utilised...... 3-39 Table 3-80: Historic Performance - Number of instances of adverse media about Unison ...... 3-54 Table 3-54: Performance Targets - Procedures That represent an Organisational Capability to undertake Risk- Table 3-81: Performance Targets - Unison has effective contingency plans in place to control risk and preserve Based Network Development Planning are utilised...... 3-40 network operations during a significant external event...... 3-55 Table 3-55: Performance Targets - Procedures that represent an Organisational Capability to undertake Risk- Table 3-82: Performance Targets - Unison has effective recovery plans in place which can be rapidly Based Asset Maintenance Planning are utilised...... 3-41 implemented to comprehensively return full services after a significant external event ...... 3-56 Table 3-56: Performance Targets - Capital Projects issued by Unison are well-defined according to the Table 3-83: Historic Performance - A test of Contingency Plans for a significant external event has occurred requirements of the Asset Management Planning Framework (AMS1001) ...... 3-42 in the last 18 Months, either through a simulation or a real event ...... 3-57 Table 3-57: Performance Targets - On time delivery of Network CapEx Complex and Specialist Projects 3-42 Table 3-84: Historic Performance - Number of High or Medium priority findings from the last Test of Table 3-58: Historic Performance - Percentage of Network CapEx Complex and Specialist Projects delivered Contingency Plans for a significant external event which are outstanding and have not been on time...... 3-43 addressed in the agreed timeframe ...... 3-57 Table 3-59: Performance Targets - Preventive Maintenance backlog is managed effectively ...... 3-43 Table 3-85: Historic Performance - A periodic review of fitness-For-purpose of Contingency Plans has Table 3-60: Performance Targets - Reduce Frequency of Corrective Maintenance through appropriate levels occurred in the last 24 Months ...... 3-57 of Preventive Maintenance...... 3-44

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-6-6 SECTION SECTION 3 3SERVICE SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-73-7 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Table 3-86: Performance Targets - Unison carries essential spares, materials and equipment to recover from the failure of a significant Asset or Asset System ...... 3-58 Table 3-87: Historic Performance - Percentage of reactive jobs where all materials are delivered on time in full SERVICE LEVELS (DIFOT) ...... 3-58 3.1 Introduction Table 3-88: Determination Reference Mapping Table ...... 3-59 Unison uses monitoring, measurement and analysis processes to evaluate its performance as an asset manager. This provides a check on whether stakeholder requirements are being met, and Figure 3-1: Performance Measurement and Reporting...... 3-9 therefore value is being realised from the Asset Portfolio. It also supports continual improvement of Figure 3-2: SAIDI Historic Performance ...... 3-32 the Asset Portfolio and asset management. Figure 3-3: SAIFI Historic Performance...... 3-33 The Asset Management Objectives (AMOs) specified in Section 2 provide comprehensive coverage Figure 3-4: Equipment Failures Historic Performance ...... 3-35 of all stakeholder requirements and expectations. They are therefore utilised as the basis for identifying what must be measured and monitored to ensure performance levels are appropriate.

Currently, performance indicators have been developed and measurement is occurring in respect of 37 of the 44 AMOs. Implementation of performance indicators for the remaining AMOs is expected to be completed by March 2020. The implementation of the performance evaluation framework has been planned to ensure that at any point in time there is a balance of performance indicators across the three key drivers of asset management, being cost, risk and service performance.

Unison’s performance evaluation process is a key process of the Asset Management System and is therefore specified in the Strategic Asset Management Plan. Further detail is provided in the Performance Evaluation Policy and Performance Evaluation Procedure.

3.2 Performance Evaluation Policy

Purpose The purpose of performance evaluation is to:

• determine what needs to be monitored and measured • determine the best frequency and method of measurement, and • determine how and when the results will be analysed and evaluated.

Performance evaluation covers the evaluation and reporting of:

• asset performance • asset management performance, and • the effectiveness of the Asset Management System (AMS).

In summary, performance evaluation reports on whether the needs and expectations of stakeholders of the Asset Management System are met.

Principles The principles that must be observed in all performance evaluation in the Asset Management System are:

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-8-8 SECTION SECTION 3 3SERVICE SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-93-9 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

1. Reports shall be provided regularly on trends in the performance of the AMS. This reporting will be to: • the General Manager Networks and Operations, as the role with overall accountability Unison L2 Capability Performance Evaluation for the Asset Management System (AMS), and Strategic Asset • all employees who contributed to the data being reported on. Unison L1… Management Strategic Asset Business Process 2. There will be a specified use for all information collected. This will be to support an approved Plan Management Establish Performance Flow AMS measure. Planning: AMS Indicator Framework Strategy & 3. All Unison employees and contractors will support the collection of performance evaluation Governance measures approved by the Asset Manager. Explanation will be provided to all employees and contractors impacted by the collection of data for performance evaluation of the AMS, as to Performance Business Process the use and purpose of the data. Indicator Develop Performance Flow Framework 4. The collection of performance evaluation measures will be done in a way that minimises the Measures impact on staff. 5. A balanced set of measures shall be used in order to avoid skewing measures towards one outcome at the expense of another outcome. For example, focusing on network performance Unison L2… at the expense of cost. Business Process Review & Performance Report on AMS 6. Data captured for performance evaluation of the Asset Management System shall be Improve AMS: Flow Measure Performance aggregated such that it is not used to measure performance of individuals. It shall not be Continual Definition Improvement of linked to any Human Resources performance management system. AMS

Performance evaluation must comply with the following external standards and requirements: Business Process • Regulatory Asset Management Plan (RAMP) Reporting Requirements: Performance Unison L3… Investigate/Evaluate Flow Report of reporting must comply with RAMP reporting requirements. It is therefore aligned with Review & AMS Non-Conformity Performance Improve AMS: Measures requirements specified by the Commerce Commission. Internal Audit against Targets • ISO 55001:2014 Asset Management – Management systems – Requirements: of AMS Performance evaluation must comply with ISO 55001 requirements so that it meets certification requirements achieved by Unison. Figure 3-1: Performance Measurement and Reporting

3.3 Performance Evaluation Procedure Figure 3-1 shows the overall process flow for performance evaluation along with the key inputs and Further Detail on Service Levels outputs. The overall process flow is: The Performance Indicator Framework provides a portfolio of performance indicators that can be • establish performance indicator framework drawn upon to conduct quantitative measurement of the performance of the AMS. It is appropriate • develop performance measures and intended that at any point in time a subset of these performance indicators will be implemented. • report on AMS performance, and The performance indicators to be used over a given period are selected by the General Manager • investigate/evaluate AMS non-conformity (this process is set out in the Management Review Networks and Operations. This selection is reviewed annually through the annual Business Planning Procedure of the Asset Management System). process.

This approach provides the General Manager Networks and Operations, as the corporate owner of the AMS, with a basis for directing organisational attention towards issues of particular strategic importance. It supports the organisation to tailor the extent of performance measurement to the internal and external context of the organisation over time, recognising that performance measurement is a non-trivial cost to an organisation of Unison’s scale.

When a new performance indicator is selected for measurement by the General Manager Networks and Operations, the Asset Information Manager works with the relevant teams to agree the following:

• the performance level to be achieved

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-10-10 SECTION SECTION 3 3SERVICE SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 33-11-11 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

• the business rules for measurement, including responsibilities for measurement, where 1. The measurement approach for the performance indicator applicable 2. Performance targets • the review process where the performance is assessed using the agreed measures, and 3. The justification for the targeted level of performance • how corrective actions will be initiated to address any gaps, including through the Continual 4. Historical performance levels where available. Improvement process. It should be noted once again that the Performance Evaluation framework is still being implemented, Confirmation of appropriate performance levels and measurement systems for each team must be and therefore for some AMOs, performance measures are not yet available. Placeholders have been approved by the General Manager Networks and Operations. Measurement and reporting against the provided below, which will be completed in the 2020 RAMP, as these measures become available. A performance indicator will then be adopted into the Performance Measurement Framework. Outcomes second consequence of the recent implementation of the Performance Evaluation framework, is that of performance measurement may include initiation of an internal audit and the subsequent historical performance levels are only available for measures that have been previously reported as implementation of corrective actions recommended. Service Levels in the Unison Regulatory Asset Management Plan.

Develop Performance Measures No incidents resulting in harm to members of the public due to asset failures, or near misses which had the potential to cause harm When a new performance indicator is selected for measurement by the General Manager Networks and Operations, the relevant teams are required to agree to the following: Measurement Approach

• the performance level to be achieved Number of asset failures resulting in an injury (serious harm) or fatality to the public. • the business rules for measurement, including responsibilities for measurement, where applicable • the review process where the performance is assessed using the agreed measures, and • how corrective actions will be initiated to address any gaps, including through the Continual Performance Targets Improvement process.

When an existing data collector is replaced by someone new this process occurs. This is to ensure the new data collector understands the business rules for measures they provide data for, and to Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 confirm the rules are still correct. Number of asset failures resulting in an injury (serious Numeric 0 0 0 0 0 harm) or fatality to the public.

Report on AMS Performance Table 3-1: Performance Targets - No Incidents resulting in harm to Members of the Public due to Asset Failures, or Near Misses which had the Potential to Cause Harm The report of the performance measures against targets is reviewed regularly as part of the management review procedure. This procedure, along with how the performance measure report is used is described in AMS-3003 AMS Management Review Procedure. The management review procedure determines if investigation or evaluation of AMS non-conformity Justification for Targeted Level of Performance is required. If this is required, then the management review procedure initiates the necessary actions. Any incident resulting in harm to members of the public, or near misses which had the potential to cause harm are unacceptable. Near misses are not included in assessing compliance to this performance measure so as not to discourage reporting.

3.4 Performance Measures Unison’s performance measures are provided below and are organised according to the AMOs specified in Section 2. In respect of each performance measure that has been implemented, the following information is provided:

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Historic Performance Historic Performance

Financial Year Ending Target Actual Target Met Financial Year Ending Target Actual Target Met

2018 0 0 2018 0 0 ✓ ✓

Table 3-2: Historic Performance - Number of Asset Failures resulting in an Injury (Serious Harm) or Fatality to the Table 3-4: Historic Performance - Number of Asset Failures resulting in an Injury (Serious Harm) or Fatality to Unison Public Staff or Contractor

No incidents resulting in harm to Unison staff or contractors due to asset failures, or near Health and safety risks posed by known asset defects are followed up within required misses which had the potential to cause harm timeframes returning residual risk to within Unison’s risk appetite Measurement Approach Measurement Approach

Number of asset failures resulting in an injury (serious harm) or fatality to the staff or contractor. Number of urgent and critical asset defects not followed up within required timeframes. Note this measure will be reviewed and aligned with changes proposed to how defects are managed, prioritised and reported.

Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Number of asset failures Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 resulting in an injury (serious Numeric 0 0 0 0 0 harm) or fatality to the staff or Number of urgent and critical contractor. asset defects not followed up Numeric 0 0 0 0 0 within required timeframes. Table 3-3: Performance Targets - No Incidents resulting in Harm to Unison Staff or Contractors due to Asset Failures, or Near Misses which had the Potential to Cause Harm Table 3-5: Performance Targets - Health and Safety Risks posed by known Asset Defects are followed up within required timeframes returning Residual Risk to within Unison’s Risk Appetite

Justification for Targeted Level of Performance Justification for Targeted Level of Performance Any incident resulting in harm to Unison staff or contractors, or near misses which had the potential to cause harm are unacceptable. Near misses are not included in assessing compliance to this Critical and urgent defects are condition-related issues in the Asset Portfolio that have the potential performance measure so as not to discourage reporting. cause harm to people and property. Once identified, these defects must be prioritised and actioned through lean processes to ensure they are corrected. The required timeframes are specified in the Unison Defect Management Standard.

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Historic Performance Historic Performance

Financial Year Ending Target Actual Target Met Financial Year Ending Target Actual Target Met

2018 0 2524 ✕ 2018 0 2 ✕ Table 3-6: Historic Performance - Number of Urgent and Critical Asset Defects not followed up within required Table 3-8: Historic Performance - No Environmental Breaches resulting in Environmental Harm or Near Miss due to timeframes the Failure of an Asset, Asset System or Associated Containment

No environmental breaches resulting in environmental harm or near miss due to the failure of Unison staff and contractors observe environmental guidelines and legislation relevant to an asset, asset system or associated containment Unison assets, including chemicals, controlled gases and hazardous substances Measurement Approach Measurement Approach

Number of environmental breaches resulting in environmental contamination due to the failure of an External audit: Number of non-compliances measured through a biennial external environmental audit asset, asset system or associated containment. programme undertaken by a competent assessor.

Performance Targets Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Number of environmental breaches resulting in External audit: Number of environmental contamination non-compliances measured Numeric 0 0 0 0 0 through a biennial external due to the failure of an asset, Numeric 0 0 0 0 0 asset system or associated environmental audit containment. programme undertaken by a competent assessor. Table 3-7: Performance Targets - No Environmental Breaches resulting in Environmental Harm or Near Miss due to the Failure of an Asset, Asset System or Associated Containment Table 3-9: Performance Targets - Unison Staff and Contractors observe Environmental Guidelines and Legislation relevant to Unison Assets, Including Chemicals, Controlled Gases and Hazardous Substances

Justification for Targeted Level of Performance Justification for Targeted Level of Performance Unison’s Environmental Policy commits the organisation to sound environmental management which Unison is committed to managing down the risk of environmental harm as a result of its operations. is reflected throughout Unison’s business values, systems and operations. A key aspect of this is that As a result, the targeted level of performance is zero non-compliances. Unison’s assets do not cause harm to the environment through the discharge of contaminants.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-16-16 SECTION SECTION 3 3SERVICE SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-173-17 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Once a power quality complaint is verified, Unison seeks to resolve the issues as quickly as possible. This may involve installing new equipment on the network or upgrading existing equipment. Therefore, Historic Performance the targets are based on the feasible timeframe to complete this type of work.

Financial Year ending Target Actual Target Met

Historic Performance 2018 0 0 ✓

Table 3-10: Historic Performance - External Audit: Number of Non-Compliances measured through Biennial External Environmental Audit Programme by Competent Assessor Financial Year Ending Target Actual Target Met

2018 ≤ 12 7 ✓

Table 3-12: Historic Performance - Number of verified power quality complaints Deliver a compliant and appropriate quality of supply Measurement Approach

Number of verified power quality complaints. Financial Year Ending Target Actual Target Met

The number of verified power quality complaints unresolved more than three months after being 2018 0 2 ✕ verified. Table 3-13: Historic Performance - The number of verified power quality complaints unresolved more than three months after being verified

Performance Targets

Complaints relating to asset management are registered effectively and appropriate actions are undertaken to support their resolution Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Number of verified power Numeric ≤ 12 ≤ 12 ≤ 12 ≤ 6 0 This measure has not yet been implemented. The proposed measure is: quality complaints. Internal audit: Complaints effectively resolved and closed out within defined time limits. The number of verified power quality complaints unresolved Numeric 0 0 0 0 0 more than three months after being verified. Performance Targets Table 3-11: Performance Targets - Unison delivers a Compliant and Appropriate Quality of Supply

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Justification for Targeted Level of Performance Internal audit: Complaints effectively resolved and Current targets are based upon best practice annual performance of Unison. The processes being Text Met Met Met Met Met closed out within defined time utilised for Network Development Planning referred to in Section 5 of the Regulatory Asset limits. Management Plan will over time result in the likelihood of power quality issues on the network reducing. Such issues are unlikely to occur by the end of the planning period, assuming that there is Table 3-14: Performance Targets - Complaints relating to Asset Management are registered effectively and not significant changes to patterns of demand and energy use intensity. appropriate actions are undertaken to support their resolution

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-18-18 SECTION SECTION 3 3SERVICE SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-193-19 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Justification for Targeted Level of Performance Deliver continuity of service to ICPs as per requirements published in Use of Systems Justification will be confirmed prior to measure being implemented. Agreements between Unison and electricity retailers Measurement Approach

This measure has not yet been implemented. The proposed measure is: Number of ICPs where continuity of service targets has been exceeded. Historic Performance

New performance measure, no historic information available. To be populated in future RAMP publications.

Performance Targets

Deliver fault response and resolution as per requirements published in Use of Systems Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Agreements between Unison and electricity retailers To be determined Measurement Approach Table 3-16: Performance Targets - Deliver Continuity of Service to ICPs This measure has not yet been implemented. The proposed measure is: Number of instances where fault response and restoration targets are not met - as defined in Use of Systems Agreement.

Justification for Targeted Level of Performance

Performance Targets Measure has not been confirmed. Once measure has been implemented the performance targets will be confirmed and justified in future RAMP publications.

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

To be determined Historic Performance

Table 3-15: Performance Targets - Deliver Fault Response and Resolution as per requirements published in Use of New performance measure, no historic information available. To be populated in future RAMP Systems Agreements between Unison and Electricity Retailers publications.

Justification for Targeted Level of Performance Conform to the timing of advertised shutdown windows for planned work Measure has not been confirmed. Once measure has been implemented the performance targets will be confirmed and justified in future RAMP publications. Measurement Approach

Percentage of planned shutdowns finishing outside of notified outage window.

Historic Performance

New performance measure, no historic information available.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-20-20 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-213-21 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance Targets Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Percentage of planned To be determined shutdowns finishing outside of Percent ≤ 20% ≤ 15% ≤ 15% ≤ 10% ≤ 5% notified outage window. Table 3-19: Performance Targets - Defined Security Criteria are Met

Table 3-17: Performance Targets - Conform to the timing of Advertised Shutdown Windows for Planned Work

Justification for Targeted Level of Performance

Measure has not been confirmed. Once measure has been implemented the performance targets will Justification for Targeted Level of Performance be confirmed and justified in future RAMP publications. The current targeted level of performance has been set based upon realistic expectations and discussions at monthly performance meetings between Unison and UCSL. A programme to improve work management performance is underway and this will support improvement in this performance measure. The long-term target is that less than 5% of planned outages finish outside the notified Historic Performance outage window. New performance measure, no historic information available. To be populated in future RAMP publications.

Historic Performance

Employees are aware of Unison’s Asset Management Policy and understand the principles in Financial Year Ending Target Actual Target Met relation to their roles Measurement Approach 2018 ≤ 20% 30% ✕ Policy roadshow and annual refreshers delivered to relevant groups in the business. Table 3-18: Historic Performance - Percentage of Planned Shutdowns finishing outside of Notified Outage Window Policy posted on the walls in all areas of Unison and UCSL.

Policy integrated into Unison induction programme.

Defined security criteria are met This measure has not yet been implemented

Measurement Approach

Measure has not been confirmed.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-22-22 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-233-23 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Financial Year Ending Target Actual Target Met Performance Targets 2018 Completed Completed ✓

Table 3-23: Historic Performance - Policy Integrated into Unison Induction Programme Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Policy roadshow and annual refreshers Text Completed Completed Completed Completed Completed delivered to relevant groups in the business. People receive asset management training and development in line with the requirements of their role Policy posted on the walls Measurement Approach in all areas of Unison and Text Completed Completed Completed Completed Completed UCSL. Number of new role or job description changes that are missing competencies aligned to the asset management system Policy integrated into Number of training attendances (or equivalent) planned but not occurring as planned in the training Unison induction Text Completed Completed Completed Completed Completed programme. plan schedule for Network and Operations.

Table 3-20: Performance Targets - Employees are aware of Unison’s Asset Management Policy and understand the principles in relation to their roles

Performance Targets

Justification for Targeted Level of Performance Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Number of new role or job Effective communication of the Asset Management Policy on an ongoing basis is required under the description changes that are Strategic Asset Management Plan. missing competencies aligned Numeric 0 0 0 0 0 to the asset management system.

Number of training Historic Performance attendances (or equivalent) planned but not occurring as Numeric 0 0 0 0 0 planned in the training plan schedule for Networks and Financial Year Ending Target Actual Target Met Operations.

2018 Completed Completed Table 3-24: Performance Targets - People receive Asset Management Training and Development in line with the ✓ requirements of their role

Table 3-21: Historic Performance - Policy Roadshow and Annual refreshers delivered to relevant groups in the business

Justification for Targeted Level of Performance Financial Year Ending Target Actual Target Met Competent people are essential to the implementation, maintenance and continual improvement of the AMS. Therefore, they support the achievement of the asset management objectives. Unison has 2018 Completed Completed ✓ implemented processes to ensure that competencies of its people are appropriate to implement, maintain and continually improve the AMS. This measure ensures the processes are being followed. Table 3-22: Historic Performance - Policy posted on the walls in all areas of Unison and UCSL It is important to continue to develop staff competency to ensure asset management activities are effective and efficient.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-24-24 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-253-25 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Historic Performance Justification for Targeted Level of Performance

An appropriate number of reviews of the quality of network projects, including its planning and delivery plus the outcomes in terms of assets and systems commissioned, are required to improve the network Financial Year Ending Target Actual Target Met project delivery process.

2018 0 0 An appropriate number of reviews of the quality of capability projects, including its planning and ✓ delivery plus the outcomes in terms of improved capability, are required to improve Unison’s capability Table 3-25: Historic Performance - Number of New Role or Job Description Changes that are Missing Competencies project delivery process. Aligned to the Asset Management System Reviews of the quality of network projects, including its planning and delivery plus the outcomes in terms of assets and systems commissioned, are required to improve the network project delivery process. This measure focuses on actions arising from projects reviews are addressed.

Unison personnel are competent and consistently observe good work practices as defined under the Asset Management System Measurement Approach Historic Performance

Number of post-project reviews of network projects undertaken.

Number of post-project reviews of capability projects undertaken. Financial Year Ending Target Actual Target Met Number of outstanding findings from post-project reviews of network projects which have not been 2018 ≥ 4 4 addressed in the agreed timeframe. ✓

Table 3-27: Historic Performance - Number of post-project reviews of Network Projects undertaken

Performance Targets Financial Year Ending Target Actual Target Met

2018 ≥ 5 3 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 ✕

Table 3-28: Historic Performance - Number of post-project reviews of Capability Projects undertaken Number of post-project reviews of network projects Numeric ≥ 5 ≥ 5 ≥ 5 ≥ 5 ≥ 5 undertaken.

Number of post-project reviews of capability projects Numeric ≥ 5 ≥ 5 ≥ 5 ≥ 5 ≥ 5 Records of asset management training and relevant competencies and qualifications attained undertaken. are maintained for Unison people

Number of outstanding Measurement Approach findings from post-project reviews of network projects Number of non-conformances from external audit of records of asset management training, Numeric 0 0 0 0 0 which have not been competencies and qualifications are maintained effectively. addressed in the agreed timeframe.

Table 3-26: Performance Targets - Unison personnel are competent and consistently observe good work practices as defined under The Asset Management System

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Performance Targets Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Number of non-conformances Actual project expenditure is from external audit of records ±20% of estimate registered of asset management training, in the AMP (as a percentage Percent ≥ 90% ≥ 90% ≥ 9% ≥ 90% ≥ 90% Numeric 0 0 0 0 0 competencies and of total number of projects qualifications are maintained completed each year). effectively. Table 3-31: Performance Targets - Network Complex and Specialist projects are delivered to budget Table 3-29: Performance Targets - Records of Asset Management Training and relevant competencies and qualifications attained are maintained for Unison people

Justification for Targeted Level of Performance

Justification for Targeted Level of Performance To enable effective financial planning, the required level of accuracy of estimates for project proposals registered in the AMP is ±20% of the actual cost of the project. This level of uncertainty recognises The targeted level of performance is zero outstanding non-conformances. Inadequate management that at the stage the project is registered in the AMP a detailed design has not yet been completed of competencies of asset management staff exposes the organisation to risks including the health and and so there are a number of variables that have not yet been finalised. safety of staff, contractors and the public, network performance degradation, and financial penalties from regulatory authorities.

Historic Performance Historic Performance

Financial Year Ending Target Actual Target Met Financial Year Ending Target Actual Target Met 2018 ≥ 90 24 ✕ 2018 0 0 ✓ Table 3-32: Historic Performance - Actual Project Expenditure is ±20% of estimate registered in the AMP (as a percentage of total number of projects completed each year) Table 3-30: Historic Performance - Number of Non-Conformances from external audit of records of Asset Management Training, Competencies and Qualifications are maintained effectively

Annual Network CapEx programme is delivered to budget (includes Network Complex, Network Complex and Specialist projects are delivered to budget Specialist and minor CapEx Provisions) Measurement Approach Measurement Approach

Actual project expenditure is ±20% of estimate registered in the AMP (as a percentage of total number Actual network CapEx is ±10% of total budget. Programme delivered within tolerance limits. of projects completed each year).

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-28-28 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-293-29 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance Targets Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Actual network CapEx is Actual Reactive OpEx is ±10% of total budget. ±10% of total budget. Percent ± 10% ± 10% ± 10% ± 10% ± 10% Percent ±10% ±10% ±10% ±10% ±10% Programme delivered within Programme delivered within tolerance limits. tolerance limits.

Table 3-33: Performance Targets - Annual Network CapEx Programme is delivered to budget (includes Network Actual Routine & Corrective Complex, Specialist and Minor CapEx provisions) Maintenance and Inspection OpEx is ±10% of total budget. Percent ±10% ±10% ±10% ±10% ±10% Programme delivered within tolerance limits.

Justification for Targeted Level of Performance Actual Asset Replacement Less than 10% variance to total CapEx budget is an acceptable level of uncertainty to support effective and Renewal OpEx is ±10% management of the organisation. This level of variance recognises the fact that there are uncertainties of total budget. Programme Percent ±10% ±10% ±10% ±10% ±10% in the delivery of annual Network CapEx programmes of work that cannot be completely managed delivered within tolerance limits. down.

Actual Vegetation Management OpEx is ±10% of total budget. Programme Percent ±10% ±10% ±10% ±10% ±10% Historic Performance delivered within tolerance limits.

Table 3-35: Performance Targets - Annual Network OpEx Programmes are delivered to budget (Preventive Financial Year Ending Target Actual Target Met Maintenance, Monitoring and Inspections, Corrective/Reactive Maintenance and Vegetation Management)

2018 ± 10% -6% ✓

Table 3-34: Historic Performance - Actual network CapEx is ±10% of total budget. Programme delivered within Justification for Targeted Level of Performance tolerance limits Less than 10% variance in each OpEx budget is an acceptable level of uncertainty to support effective management of the organisation. This level of variance recognises the fact that there are uncertainties in the delivery of annual Network OpEx programmes of work that cannot be completely managed down. Annual Network OpEx programmes are delivered to budget (Preventive Maintenance, monitoring and inspections, Corrective/Reactive Maintenance and Vegetation Management) Measurement Approach

Actual Reactive OpEx is ±10% of total budget. Programme delivered within tolerance limits.

Actual Routine & Corrective Maintenance and Inspection OpEx is ±10% of total budget. Programme delivered within tolerance limits.

Actual Asset Replacement and Renewal OpEx is ±10% of total budget. Programme delivered within tolerance limits.

Actual Vegetation Management OpEx is ±10% of total budget. Programme delivered within tolerance limits.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-30-30 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-313-31 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Historic Performance Performance Targets

Financial Year Ending Target Actual Target Met Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

2018 ± 10% 47% Value of benefits arising from ✕ Smart Grid compared to Dollars ≥ $1.5M ≥ $1.5M ≥ $1.5M ≥ $1.5M ≥ $1.5M Table 3-36: Historic Performance - Actual Reactive OpEx Is ±10% of Total Budget. Programme delivered within targets. tolerance limits Table 3-40: Performance Targets - The AMS supports the Corporate Strategic Objective of realising benefits from the Smart Grid Investment

Financial Year Ending Target Actual Target Met

2018 ± 10% -5% ✓ Justification for Targeted Level of Performance

Table 3-37: Historic Performance - Actual Routine and Corrective Maintenance and Inspection OpEx Is ±10% of total The benefits realisation framework for the Smart Grid investment and the associated targets were Budget. Programme delivered within Tolerance Limits approved by Unison’s Board of Directors.

Financial Year Ending Target Actual Target Met

2018 ± 10% 4% ✓ Historic Performance

Table 3-38: Historic Performance - Actual Asset Replacement and Renewal OpEx Is ±10% Of total budget. Programme delivered within Tolerance Limits Financial Year Ending Target Actual Target Met

2018 ≥ $3.5M $3.529M Financial Year Ending Target Actual Target Met ✓

Table 3-41: Historic Performance - Value of benefits arising from Smart Grid compared to targets 2018 ± 10% -17% ✕

Table 3-39: Historic Performance - Actual Vegetation Management OpEx Is ±10% Of total budget. Programme delivered within Tolerance Limits

Meet or exceed the lower of the SAIDI and SAIFI targets from Commerce Commission (Default Price-quality Path), and Hawke’s Bay Power Consumers' Trust (SCI) Measurement Approach The AMS supports the Corporate Strategic Objective of realising benefits from the smart grid investment Commerce Commission limit versus actual SAIDI. Measurement Approach Commerce Commission limit versus actual SAIFI.

The value of benefits arising from Smart Grid compared to targets.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-32-32 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-333-33 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

SAIFI Historic Performance Performance Targets

2.5

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 2

< < < < 1.5 Commerce Commission limit

Numeric ≤ 110.2 Regulatory Regulatory Regulatory Regulatory SAIFI Number versus actual SAIDI. 1 Limit Limit Limit Limit 0.5 < < < < Commerce Commission limit Numeric ≤ 2.146 Regulatory Regulatory Regulatory Regulatory 0 versus actual SAIFI. Limit Limit Limit Limit 2014 2015 2016 2017 2018 Year Table 3-42: Performance Targets - Meet or Exceed the lower of the SAIDI and SAIFI targets from Commerce SAIFI Commission (Default Price-Quality Path), and Hawke’s Bay Power Consumers’ Trust (SCI)

Figure 3-3: SAIFI Historic Performance

Justification for Targeted Level of Performance

SAIDI targets are based upon Unison’s regulatory target under the Default Price Path. Both SAIDI and SAIFI targets beyond the current regulatory period will change once these targets are confirmed. Meet or exceed internal business targets for SAIDI caused by equipment failures and human error on the part of Unison SAIFI targets are based upon Unison’s regulatory target under the Default Price Path. Both SAIDI and SAIFI targets beyond the current regulatory period will change once these targets are confirmed. Measurement Approach

Internal business target for SAIDI caused by equipment failures and human error versus actual SAIDI.

Internal business target for SAIFI caused by equipment failures and human error versus actual SAIFI.

Historic Performance

Performance Targets SAIDI Historic Performance

140 120 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 100 Internal business target for 80 SAIDI caused by equipment

SAIDI Minutes 60 Numeric ≤ 14.5 ≤ 14.5 ≤ 14.5 ≤ 14.5 ≤ 14.5 failures and human error 40 versus actual SAIDI. 20 0 Internal business target for 2014 2015 2016 2017 2018 SAIFI caused by equipment Numeric ≤ 0.41 ≤ 0.41 ≤ 0.41 ≤ 0.41 ≤ 0.41 Year failures and human error SAIDI versus actual SAIFI.

Table 3-43: Performance Targets - Meet or exceed internal business targets for SAIDI caused by equipment failures Figure 3-2: SAIDI Historic Performance and human error on the part of Unison

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-34-34 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-353-35 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Justification for Targeted Level of Performance Justification for Targeted Level of Performance

These are the SAIDI and SAIFI most under Unison's control and targets are based on historical The frequency of equipment failures is an important measure of how well the assets are being averages. maintained and replaced and this impacts the reliability of the network.

SAIDI and SAIFI targets are based on historical averages.

Historic Performance

Frequency of Equipment Failures Financial Year Ending Target Actual Target Met 140

2018 ≤ 14.5 12.35 ✓ 120 Table 3-44: Historic Performance - Internal Business Target for SAIDI caused by equipment failures and human error 100 versus actual SAIDI 80

Financial Year Ending Target Actual Target Met 40

2018 ≤ 0.41 0.29 20 ✓ Number of Equipment Failures Failures Equipment of Number 0 Table 3-45: Historic Performance - Internal business target for SAIFI caused by equipment failures and human error 2014 2015 2016 2017 2018 2019 versus actual SAIFI Years

Figure 3-4: Equipment Failures Historic Performance

Frequency of equipment failures declining from 2011/12 – 2015/16 average baseline Measurement Approach

Baseline versus actual equipment failure frequency. Implement an Asset Management System aligned with ISO 55001 Measurement Approach

External audit: certification by appropriately accredited and competent assessor. Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Performance Targets

Baseline versus actual Numeric < 63.6 < 63.6 < 63.6 < 63.6 < 63.6 equipment failure frequency. Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Table 3-46: Performance Targets - Frequency of Equipment Failures declining from 2011/12 – 2015/16 average External audit: certification by baseline appropriately accredited and Text Certified Certified Certified Certified Certified competent assessor.

Table 3-47: Performance Targets - Implement an Asset Management System aligned with ISO 55001

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-36-36 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-373-37 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Justification for Targeted Level of Performance Historic Performance

Retaining certification to ISO 55001 provides independent assurance that Unison is effectively No history available as no data collected in prior years. implementing and continually improving its Asset Management System, as required under the Strategic Asset Management Plan.

The Asset Management Plan provides a ten year forward view on risks in the asset and optimised and actionable projects to control those risks Historic Performance Measurement Approach

Whether a ten year forward view on risks in the assets based on the AMP is presented, reviewed and Financial Year Ending Target Actual Target Met accepted at the six-monthly AMP review meeting.

2018 Met Met ✓

Table 3-48: Historic Performance - External Audit: Certification by accredited and competent assessor Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Successful delivery of Capability Projects initiated under the AMS Programme Whether a ten year forward Measurement Approach view on risks in the assets based on the AMP is Internal audit: Assessment of deliverables and outcomes of Capability Projects against original Numeric ≥ 2 ≥ 2 ≥ 2 ≥ 2 ≥ 2 business motivations. presented, reviewed and accepted at the six-monthly AMP review meeting.

Table 3-50: Performance Targets - The Asset Management Plan provides a ten year forward view on risks in the Performance Targets Asset and Optimised and Actionable Projects to control those risks

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Justification for Targeted Level of Performance Internal audit: Assessment of In order to forecast expenditure and optimise investment in the network, it is important to have asset deliverables and outcomes of Percent ≥ 70% ≥ 70% ≥ 70% ≥ 70% ≥ 70% management plan at least 10 years into the future to address network risks. Capability Projects against original business motivations.

Table 3-49: Performance Targets - Successful delivery of Capability Projects initiated under the AMS Programme Historic Performance

No history available as no data collected in prior years.

Justification for Targeted Level of Performance

A review of the quality of capability projects is important to ensure capability improvements occur and to improve Unison’s capability project delivery process.

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Very high priority continual improvement opportunities are completed within 90 days of being Procedures that represent an organisational capability to undertake risk-based Asset Renewal assigned a priority ranking Planning are utilised Measurement Approach This measure has not yet been implemented.

Number of continual improvement opportunities with a priority of 5 or 6 not completed within 90 days Measurement Approach of being prioritised. Number of equipment failures of critical assets where the asset was not scheduled for replacement in year one or two of the asset management plan.

Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Number of continual improvement opportunities Number of equipment failures with a priority of 5 or 6 not Numeric 0 0 0 0 0 of critical assets where the completed within 90 days of asset was not scheduled for Numeric 0 0 0 0 0 being prioritised. replacement in year 1 or 2 of the asset management plan. Table 3-51: Performance Targets - Very high Priority continual improvement opportunities are completed within 90 days of being assigned a priority ranking Table 3-53: Performance Targets - Procedures that represent an Organisational Capability to undertake risk-based Asset Renewal Planning are utilised

Justification for Targeted Level of Performance

Very high priority continual improvement opportunities must be completed and closed out to ensure Justification for Targeted Level of Performance opportunities are secured and risks are managed down, in support of the achievement of Unison’s If Asset Renewal Planning is risk based, then critical assets with a high risk of failing should be Asset Management Objectives. replaced before they fail.

Historic Performance Historic Performance

No history available as no data collected in prior years.

Financial Year Ending Target Actual Target Met

2018 0 42 ✕

Table 3-52: Historic Performance - Number of Continual Improvement opportunities with a priority of 5 or 6 Not Procedures that represent an organisational capability to undertake risk-based Network completed within 90 Days of being prioritised Development Planning are utilised Measurement Approach

Number of verified power quality complaints which no projects in the asset management plan would have addressed.

Asset failures where the network was in normal state and the asset failed due to overload.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-40-40 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-413-41 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance Targets Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Number of verified power Internal audit: Annual asset quality complaints which no maintenance programmes are Text Met Met Met Met Met projects in the asset Numeric ≤ 1 ≤ 1 ≤ 1 ≤ 1 ≤ 1 built up from a zero-base management plan would have through consideration of risk. addressed. Table 3-55: Performance Targets - Procedures that represent an Organisational Capability to undertake Risk-Based Asset failures where the Asset Maintenance Planning are utilised network was in normal state Numeric 0 0 0 0 0 and the asset failed due to overload.

Justification for Targeted Level of Performance Table 3-54: Performance Targets - Procedures That represent an Organisational Capability to undertake Risk-Based Network Development Planning are utilised Once measure has been implemented the performance targets will be confirmed and justified in future RAMP publications.

Justification for Targeted Level of Performance

Risks of power quality complaints should be anticipated and the actions to address the risk should be Historic Performance included in the asset management plan. New performance measure, no historic information available. To be populated in future RAMP The network planning process forecasts if there are points on the network where overload may occur, publications. and then initiates work to remedy these constraints. This measure assesses how effective this process is.

Capital projects issued by Unison are well-defined according to the requirements of the Asset Management Planning Framework (AMS1001) Historic Performance Measurement Approach New performance measure, no historic information available. To be populated in future RAMP publications. Percentage of non-compliant project proposals identified through internal audit processes.

Procedures that represent an organisational capability to undertake risk-based asset maintenance planning are utilised This measure has not yet been implemented

Measurement Approach

This measure has not yet been implemented. The proposed measure is:

Internal audit: Annual asset maintenance programmes are built up from a zero-base through consideration of risk.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-42-42 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-433-43 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance Targets Justification for Targeted Level of Performance

Timely delivery of Unison’s complex and specialist projects is important to manage network risk. This measure provides an assessment of the proportion of these projects delivered on time. Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Percentage of non-compliant project proposals identified Percent ≤ 15% ≤ 15% ≤ 15% ≤ 15% ≤ 15% through internal audit Historic Performance processes.

Table 3-56: Performance Targets - Capital Projects issued by Unison are well-defined according to the requirements of the Asset Management Planning Framework (AMS1001) Financial Year Ending Target Actual Target Met

2018 ≥ 90% 28% ✕

Table 3-58: Historic Performance - Percentage of Network CapEx Complex and Specialist Projects delivered on time Justification for Targeted Level of Performance

The quality of project proposals is an important factor in determining the quality of the project outcomes. Therefore, review of project proposals is undertaken and this measure reports on what percentage is non-compliant. Preventive Maintenance backlog is managed effectively Measurement Approach

Number of preventive maintenance tasks that were not completed in the month planned. Historic Performance

No history available as no data collected in prior years.

Performance Targets

On time delivery of network CapEx Complex and Specialist projects Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Number of preventive Percentage of network CapEx Complex and Specialist projects delivered on time. maintenance tasks that were Numeric 0 0 0 0 0 not completed in the month planned.

Table 3-59: Performance Targets - Preventive Maintenance backlog is managed effectively Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Justification for Targeted Level of Performance

Percentage of network CapEx It is important to manage the preventive maintenance backlog in order reduce preventable faults on Complex and Specialist Percent ≥ 90% ≥ 90% ≥ 90% ≥ 90% ≥ 90% the network and extend the life of assets. projects delivered on time.

Table 3-57: Performance Targets - On time delivery of Network CapEx Complex and Specialist Projects

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-44-44 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-453-45 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Historic Performance Condition assessment programmes undertaken by contractors provide effective feedback on No history available as no data collected in prior years. asset health and risks to the Asset Management Team This measure has not yet been implemented

Measurement Approach

Validity and completeness of asset health and risk data returned based upon Asset Information data Reduce frequency of corrective maintenance through appropriate levels of preventive quality standards. maintenance This measure has not yet been implemented.

Measurement Approach Performance Targets Rate of defects raised and any work raised as a result of analysis of inspection results.

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Performance Targets Validity and completeness of asset health and risk data returned based upon Asset Text Met Met Met Met Met Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Information data quality standards. Rate of defects raised and any work raised as a result of Text Met Met Met Met Met Table 3-61: Performance Targets - Condition Assessment Programmes undertaken by Contractors provide effective analysis of inspection results. feedback on Asset Health and Risks to the Asset Management team

Table 3-60: Performance Targets - Reduce Frequency of Corrective Maintenance through appropriate levels of Preventive Maintenance

Justification for Targeted Level of Performance

Measure has not been confirmed. Once measure has been implemented the performance targets will Justification for Targeted Level of Performance be confirmed and justified in future RAMP publications.

Measure has not been confirmed. Once measure has been implemented the performance targets will be confirmed and justified in future RAMP publications. This will be determined prior to the start of data collection. Historic Performance

New performance measure, no historic information available. To be populated in future RAMP publications. Historic Performance

New performance measure, no historic information available. To be populated in future RAMP publications. Ensure up to date asset information through timely processing of received as-built information into Unison’s enterprise systems Measurement Approach

Average number of days to process as-built information is below agreed target.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-46-46 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-473-47 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Number of severity 3 non-conforming internal audits of contractor work practices and quality outcomes. A severity 3 non-conformance is - ‘Undertaking or permitting work to occur which has Performance Targets potential to cause minor damage to network or public assets. This work is contrary to the Unison’s construction standards. These items need to be corrected and the practices improved and/or eradicated. Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Number of severity 4 non-conforming internal audits of contractor work practices and quality Average number of days to outcomes. A severity 4 non-conformance is - ‘Undertaking or permitting work to occur that has low or process as-built information is Numeric ≤ 30 ≤ 30 ≤ 30 ≤ 30 ≤ 30 no risk of damage to network or public assets. This work is contrary to the Unison’s construction below agreed target. standards. These items need to be corrected and the practices improved and/or eradicated.

Table 3-62: Performance Targets - Ensure up to date Asset Information through timely processing of received As- Built information into Unison’s Enterprise Systems

Performance Targets

Justification for Targeted Level of Performance Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Having up to date asset information systems reduces the risk of incorrect or outdated asset information being acted upon. Thirty days is currently deemed acceptable to Unison, however continual Number of severity 1 non- improvement in this area during the planning period may result in the targeted level of performance conforming internal audits of Numeric ≤ 0 ≤ 0 ≤ 0 ≤ 0 ≤ 0 being reduced. contractor work practices and quality outcomes.

Number of severity 2 non- conforming internal audits of Numeric ≤ 3 ≤ 3 ≤ 3 ≤ 3 ≤ 3 Historic Performance contractor work practices and quality outcomes.

Number of severity 3 non- Financial Year Ending Target Actual Target Met conforming internal audits of Numeric ≤ 90 ≤ 90 ≤ 90 ≤ 90 ≤ 90 contractor work practices and 2018 ≤ 30 days 21 days ✓ quality outcomes.

Table 3-63: Historic Performance - Average Number of days to process As-Built Information is below agreed target Number of severity 4 non- conforming internal audits of Numeric ≤ 30 ≤ 30 ≤ 30 ≤ 30 ≤ 30 contractor work practices and quality outcomes.

Contractor personnel are competent and consistently observe good work practices and meet Table 3-64: Performance Targets - Contractor Personnel are competent and consistently observe good work practices and meet Unison quality requirements Unison quality requirements Measurement Approach

Number of severity 1 non-conforming internal audits of contractor work practices and quality outcomes. A severity 1 non-conformance is - ‘Undertaking or permitting work to occur which has potential to cause catastrophic failure of Network or Public assets. This work is contrary to the Unison’s construction standards.

Number of severity 2 non-conforming internal audits of contractor work practices and quality outcomes. A severity 2 non-conformance is - ‘Undertaking or permitting work to occur which has potential to cause severe damage to Network or Public assets. This work is contrary to the Unison’s construction standards.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-48-48 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-493-49 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Financial Year Ending Target Actual Target Met Justification for Targeted Level of Performance 2018 ≤ 30 7 Number of severity 1 non-conforming internal audits of contractor work practices and quality outcomes ✓ is set at zero as significant quality breaches that could lead to major incidents are deemed Table 3-68: Historic Performance - Number of Severity 4 Non-Conforming internal audits of contractor work practices unacceptable to Unison. and quality outcomes The targets for severity 2 non-conforming internal audits of contractor work practices and quality outcomes have been set by UCSL based upon historical performance and are currently acceptable to Unison. Unison will however be looking for continually improving levels of performance in this area and this may result in agreed changes to performance targets during the planning period. Contractor health and safety performance targets are met The targets for severity 3 non-conforming internal audits of contractor work practices and quality Measurement Approach outcomes have been set by UCSL based upon historical performance and are currently acceptable to Unison. Unison will however be looking for continually improving levels of performance in this area Number of severity 1 non-conforming contractor internal health and safety audits. A severity 1 non- and this may result in agreed changes to performance targets during the planning period. conformance is - ‘A breach of safety standards, procedures or policy which could have led to a fatality or total permanent disability. The targets for severity 4 non-conforming internal audits of contractor work practices and quality outcomes have been set by UCSL based upon historical performance and are currently acceptable to Number of severity 2 non-conforming contractor internal health and safety audits. A severity 2 non- Unison. Unison will however be looking for continually improving levels of performance in this area conformance is - ‘A breach of safety standards, procedures or policy which could have led to a serious and this may result in agreed changes to performance targets during the planning period. harm or significant injuries but will recover over time’. Number of severity 3 non-conforming contractor internal health and safety audits. A severity 3 non- conformance is - ‘A breach of safety standards, procedures or policy which could have led to medical treatment required’

Historic Performance Number of severity 4 non-conforming contractor internal health and safety audits. A severity 4 non- conformance is - ‘Minor or no injuries, no lost time, but a breach of safety standards, procedures or policy’. Financial Year Ending Target Actual Target Met

2018 ≤ 0 0 ✓ Performance Targets Table 3-65: Historic Performance - Number of Severity 1 Non-Conforming internal audits of contractor work practices and quality outcomes

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Financial Year Ending Target Actual Target Met Number of severity 1 non- conforming contractor internal Numeric 0 0 0 0 0 2018 ≤ 3 0 ✓ health and safety audits.

Table 3-66: Historic Performance - Number of Severity 2 Non-Conforming internal audits of contractor work practices Number of severity 2 non- and quality outcomes conforming contractor internal Numeric ≤ 10 ≤ 10 ≤ 10 ≤ 10 ≤ 10 health and safety audits.

Number of severity 3 non- Financial Year Ending Target Actual Target Met conforming contractor internal Numeric ≤ 52 ≤ 52 ≤ 52 ≤ 52 ≤ 52 health and safety audits. 2018 ≤ 90 56 ✓ Number of severity 4 non- Table 3-67: Historic Performance - Number of Severity 3 Non-Conforming internal audits of contractor work practices conforming contractor internal Numeric ≤ 20 ≤ 20 ≤ 20 ≤ 20 ≤ 20 and quality outcomes health and safety audits.

Table 3-69: Performance Targets - Contractor Health and Safety Performance Targets are met

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-50-50 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-513-51 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Justification for Targeted Level of Performance Ensure that no formal complaint reaches the stage of legal challenge or government Number of severity 1 non-conforming contractor internal health and safety audits is set at zero as investigation in relation to asset management serious harm to contractor staff is deemed unacceptable to Unison. Measurement Approach The targets for severity 2-4 non-conforming contractor internal health and safety audits have been set Number of instances of unanticipated legal challenge or government investigation occurring. by UCSL based upon historical performance and are currently acceptable to Unison. Unison will however be looking for continually improving levels of performance in this area and this may result in agreed changes to performance targets during the planning period.

Performance Targets

Historic Performance Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Number of instances of Financial Year Ending Target Actual Target Met unanticipated legal challenge Numeric 0 0 0 0 0 or government investigation 2018 0 0 occurring. ✓ Table 3-74: Performance Targets - Ensure that no formal complaint reaches the stage of legal challenge or Table 3-70: Historic Performance - Number of Severity 1 Non-Conforming contractor internal Health and Safety Government investigation in relation to Asset Management Audits

Financial Year Ending Target Actual Target Met Justification for Targeted Level of Performance

2018 ≤ 10 5 ✓ As a stakeholder focused organisation, Unison is committed to managing down the risk of legal challenge or government investigation because of its acts or omissions. The target for this Table 3-71: Historic Performance - Number of Severity 2 Non-Conforming contractor internal Health and Safety performance measure is therefore zero. Audits

Financial Year Ending Target Actual Target Met Historic Performance

2018 ≤ 52 34 ✓

Table 3-72: Historic Performance - Number of Severity 3 Non-Conforming contractor internal Health and Safety Financial Year Ending Target Actual Target Met Audits 2018 0 0 ✓

Financial Year Ending Target Actual Target Met Table 3-75: Historic Performance - Number of instances of unanticipated legal challenge or Government investigation occurring

2018 ≤ 20 8 ✓

Table 3-73: Historic Performance - Number of Severity 4 Non-Conforming contractor internal Health and Safety Audits

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-52-52 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-533-53 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Ensure risk of non-compliance with the Electricity (Hazards from Trees) Regulations 2003 is Internal audits of AMS processes are completed according to the plan as low as reasonably practicable Measurement Approach Measurement Approach Number of internal audits completed according to Unison’s Internal Audit Framework. Vegetation notices not addressed within 45 days is less than last year.

Growth limit zone faults from trees known to be in breach of regulations.

Performance Targets

Performance Targets Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Number of internal audits Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 completed according to Numeric ≥ 6 ≥ 6 ≥ 6 ≥ 6 ≥ 6 Unison’s Internal Audit Vegetation notices not Framework. addressed within 45 days is Numeric < 50 < 50 < 50 < 50 < 50 less than last year. Table 3-77: Performance Targets - Internal Audits of AMS processes are completed according to the plan

Growth limit zone faults from trees known to be in breach of Numeric 0 0 0 0 0 regulations. Justification for Targeted Level of Performance Table 3-76: Performance Targets - Ensure risk of Non-Compliance with The Electricity (Hazards from Trees) Regulations 2003 is as low as reasonably practicable Internal audit is a key process of Unison’s Asset Management System supporting continual improvement. It is important to complete sufficient internal audits each year according to the internal audit schedule in order to ensure Unison’s Asset Management System continues it be fit for purpose.

Justification for Targeted Level of Performance

The data for notices issued up to December 2018 is showing Unison are approximately 65% compliant Historic Performance in terms of legislation timeframes. The proposed ‘better than last year’ approach is appropriate at this stage but should be reviewed in 2020 when more accurate data is available and current continuous improvement opportunities have been implemented. It is envisaged a lower, more challenging figure can be achieved. Financial Year Ending Target Actual Target Met

Unison should address all vegetation within the growth limit zone before they cause a fault on the 2018 ≥ 6 6 network or constitute a health and safety issue. ✓

Table 3-78: Historic Performance - Number of Internal Audits completed according to Unison’s Internal Audit Framework

Historic Performance

New performance measures, no historic information available. To be populated in future RAMP publications. The organisation is managed sustainably to preserve Unison’s reputation Measurement Approach

Number of instances of adverse media about Unison.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-54-54 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-553-55 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance Targets Performance Targets

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29

Number of instances of Numeric ≤ 24 ≤ 24 ≤ 24 ≤ 24 ≤ 24 To be determined adverse media about Unison. Table 3-81: Performance Targets - Unison has effective contingency plans in place to control risk and preserve Table 3-79: Performance Targets - The organisation Is managed sustainably to preserve Unison’s reputation network operations during a significant external event

Justification for Targeted Level of Performance Justification for Targeted Level of Performance

Unison seeks to act ethically and feedback via media articles is an important way of measuring Measure has not been confirmed. Once measure has been implemented the performance targets will whether Unison is achieving this goal. be confirmed and justified in future RAMP publications.

Historic Performance Historic Performance New performance measure, no historic information available. To be populated in future RAMP publications. Financial Year Ending Target Actual Target Met

2018 ≤ 24 10 ✓

Table 3-80: Historic Performance - Number of instances of adverse media about Unison Unison has effective recovery plans in place which can be rapidly implemented to comprehensively return full services after a significant external event Measurement Approach

A test of contingency plans for a significant external event has occurred in the last 18 months, either Unison has effective contingency plans in place to control risk and preserve network through a simulation or a real event. operations during a significant external event Number of high or medium priority findings from the last test of contingency plans for a significant Measurement Approach external event which are outstanding and have not been addressed in the agreed timeframe. This measure has not yet been implemented. A periodic review of fitness-for-purpose of contingency plans has occurred in the last 24 months.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-56-56 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-573-57 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance Targets Historic Performance

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Financial Year Ending Target Actual Target Met

A test of contingency plans for 2018 Met Met a significant external event ✓ has occurred in the last 18 Text Met Met Met Met Met months, either through a Table 3-83: Historic Performance - A test of Contingency Plans for a significant external event has occurred in the last 18 Months, either through a simulation or a real event simulation or a real event.

Number of high or medium priority findings from the last Financial Year Ending Target Actual Target Met test of contingency plans for a significant external event Numeric 0 0 0 0 0 2018 0 0 which are outstanding and ✓ have not been addressed in the agreed timeframe. Table 3-84: Historic Performance - Number of High or Medium priority findings from the last Test of Contingency Plans for a significant external event which are outstanding and have not been addressed in the agreed timeframe

A periodic review of fitness- for-purpose of contingency Text Met Met Met Met Met plans has occurred in the last Financial Year Ending Target Actual Target Met 24 months. 2018 Met Met Table 3-82: Performance Targets - Unison has effective recovery plans in place which can be rapidly implemented to ✓ comprehensively return full services after a significant external event Table 3-85: Historic Performance - A periodic review of fitness-For-purpose of Contingency Plans has occurred in the last 24 Months

Justification for Targeted Level of Performance

A test of contingency plans on an 18-month basis is required under the Strategic Asset Management Unison carries essential spares, materials and equipment to recover from the failure of a Plan and Crisis Management Plan. This frequency has been determined based upon feedback from significant asset or asset system external advisors on crisis management. Measurement Approach All corrective actions and improvement opportunities identified through tests of contingency plans must be completed within agreed timeframes to ensure that Unison is prepared to respond to high Percentage of reactive jobs where all materials are delivered in full, on time (DIFOT). impact low probability events. Internal audit: Review of appropriateness of critical spares held and their long-term area of holding. To help ensure Unison responds appropriately in the event of a disruption, it is important to review contingency plans regularly.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 33-58-58 SECTION SECTION 3 SERVICE3 SERVICE LEVELS LEVELS SECTION SECTION 3 SERVICE 3 SERVICE LEVELS LEVELS 3-593-59 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance Targets 3.5 Determination Reference Mapping Table

Measurement Approach Target Type 2020 2021 2022 2023 - 24 2025 - 29 Section 3 References Determination Reference

Percentage of reactive jobs 3.1 Introduction 5, 6, 7 including 7.1, 7.2 where all materials are Percent 100% 100% 100% 100% 100% delivered on time in full 3.2 Performance Evaluation Policy (DIFOT). 3.3 Performance Evaluation Procedure

Internal audit: Review of 3.4 Performance Measures appropriateness of critical Text Met Met Met Met Met spares held and their long- 3.5 Further Detail on Service Levels 8, 9, 10 term area of holding. Table 3-88: Determination Reference Mapping Table Table 3-86: Performance Targets - Unison carries essential spares, materials and equipment to recover from the failure of a significant Asset or Asset System

Justification for Targeted Level of Performance

Non-availability of materials for reactive jobs will result in risk to the achievement of other AMOs, therefore 100% availability is required.

This will be determined prior to the start of data collection.

Historic Performance

Financial Year Ending Target Actual Target Met

2018 100% 100% ✓

Table 3-87: Historic Performance - Percentage of reactive jobs where all materials are delivered on time in full (DIFOT)

No history available for second measure as no data collected in prior years.

NETWORK DEVELOPMENT PLANS SECTION SECTION4 NETWORK 4 NETWORK DEVELOPMENT DEVELOPMENT PLANSPLANS4- 1 4-1 UNISON NETWORKS LIMITEDUNISON NETWORKS | REGULATORY LIMITED ASSET| REGULATORY MANAGEMENT ASSET MANAGEMENT PLAN UPDATE PLAN UPDATE2019-29 2019-29

CONTENTS 4. NETWORK DEVELOPMENT PLANS ...... 4-4 4.1 Introduction to this Section...... 4-4 Network Overview ...... 4-4 Hawke’s Bay Network Overview ...... 4-7 Taupo Network Overview...... 4-12 Rotorua Network Overview ...... 4-16 4.2 Network Development Planning Objectives and Criteria ...... 4-20 Network Reliability...... 4-21 Power Quality...... 4-21 Security of Supply ...... 4-23 Network Equipment Ratings...... 4-24 4.3 Macro-environmental and Future Network Context ...... 4-27 4.3.1 Introduction...... 4-27 4.3.2 Megatrends ...... 4-28 4.3.3 Scenarios ...... 4-32 4.3.4 Key Factors Affecting the Future Network ...... 4-34 4.3.5 Future Network Design Considerations ...... 4-36 4.4 Network Development Planning Assumptions ...... 4-38 Potential Impact of Uncertainties ...... 4-38 Distributed Generation ...... 4-38 New Technology Initiatives ...... 4-39 Expected Level of Customer Demand ...... 4-40 4.5 Network Development Planning Process...... 4-40 Constraint Forecasting ...... 4-41 4.5.2 Solution Development ...... 4-49 4.6 Hawke’s Bay Network Development Projects...... 4-56 Projects for 2019/20 ...... 4-60 Projects for 2020/21 to 2023/24 ...... 4-62 Projects for 2024/25 to 2028/29 ...... 4-73 4.7 Taupo Network Development Projects...... 4-78 Projects for 2019/2020 ...... 4-79 Projects for 2020/21 to 2023/24 ...... 4-82 Projects for 2024/25 to 2028/29 ...... 4-82 4.8 Rotorua Network Development Projects...... 4-86 Projects for 2018/2019 ...... 4-87 Projects for 2020/21 to 2023/24 ...... 4-91 Projects for 2024/25 to 2028/29 ...... 4-92 4.9 Determination Reference Mapping Table ...... 4-94

Table 4-1: Load Characteristics by GXP ...... 4-6 Table 4-2: Regional Peak Demand and Total Energy delivered in the 2017/2018 Financial Year ...... 4-6 Table 4-3: Hawke's Bay Large Customers ...... 4-7 Table 4-4: Supply Points and Embedded Generation ...... 4-8 Table 4-5: Hawke's Bay Zone Substation Capacity and Security ...... 4-11 Table 4-6: Taupo Large Customers...... 4-12 Table 4-7: Supply Points and Embedded Generation ...... 4-12

© Unison Networks Limited 2019 44-2-2 SECTION SECTION 4 4NETWORK NETWORK DEVELOPMENT DEVELOPMENT PLANS PLANS SECTION 4SECTION NETWORK 4 NETWORK DEVELOPMENT DEVELOPMENT PLANS4- 3 4-3 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKS LIMITEDUNISON NETWORKS | REGULATORY LIMITED ASSET| REGULATORY MANAGEMENT ASSET MANAGEMENT PLAN UPDATE PLAN UPDATE2019-29 2019-29

Table 4-8: Taupo Area Zone Substation Capacity and Security ...... 4-15 Figure 4-13: GXP Load Forecasts...... 4-47 Table 4-9: Rotorua Large Customers...... 4-16 Figure 4-14: Hawke’s Bay Zone Substation Load Forecast...... 4-47 Table 4-10: Rotorua Supply Points and Embedded Generation ...... 4-17 Figure 4-15: Taupo Zone Substation Load Forecast...... 4-48 Table 4-11: Rotorua Zone Substation Capacity and Security ...... 4-19 Figure 4-16: Rotorua Zone Substation Load Forecast ...... 4-48 Table 4-12: Power Quality Parameters and Limits...... 4-21 Figure 4-17: Hawke's Bay Zone Substation Load Forecast ...... 4-49 Table 4-13: Security of Supply Classification ...... 4-23 Figure 4-18: Select Preferred Solution Process Stage...... 4-55 Table 4-14: Summary of Security of Supply Restoration Times...... 4-24 Table 4-15: Capacity Determination for Network Assets...... 4-26 Table 4-16: Scoring Schema for Megatrends...... 4-30 Table 4-17: Megatrends Consolidated ...... 4-30 Table 4-18: Approaches to changing system architecture ...... 4-36 Table 4-19: List of potential architecture changes ranked in order of priority ...... 4-37 Table 4-20: Constraint Forecasting Input Categories...... 4-42 Table 4-21: Overview of Solution Development Process ...... 4-50 Table 4-22: Solutions Toolbox...... 4-52 Table 4-23: Standardisation across Assets...... 4-54 Table 4-24: Material Projects for 2019/20 ...... 4-56 Table 4-25: Non-Material Project for 2019/20 ...... 4-57 Table 4-26: Non-Material Project for 2019/20 ...... 4-58 Table 4-27: Hawke's Bay Projects Summary ...... 4-59 Table 4-28: Hawke's Bay Non-material Projects for 2019-2020 ...... 4-62 Table 4-29: Hawke's Bay Projects for 2020/2121 to 2022/2023 ...... 4-72 Table 4-30: Hawke's Bay Projects for 2024/25 to 2028/29 ...... 4-78 Table 4-31: Taupo Projects Summary...... 4-79 Table 4-32: Solution Options for Network Constraint, Acacia Bay Reliability ...... 4-80 Table 4-33: Taupo Non-Material Projects for 2019/20 ...... 4-81 Table 4-34: Taupo Projects for 2020/21 to 2023/24...... 4-82 Table 4-35: Taupo Projects for 2024/25 to 2028/29...... 4-85 Table 4-36: Rotorua Projects Summary ...... 4-87 Table 4-37: Solution Options for Network Constraint, Fernleaf...... 4-88 Table 4-38: Solution Options for Network Constraint, High Impedance Faults...... 4-89 Table 4-39: Rotorua Non-material Projects for 2019/20...... 4-91 Table 4-40: Rotorua Projects for 2020/21 to 2023/24 ...... 4-92 Table 4-41: Rotorua Projects for 2024/25 to 2028/29 ...... 4-93 Table 4-42: Determination Reference Mapping Table ...... 4-94

Figure 4-1: Map of Regions in Unison's Network ...... 4-4 Figure 4-2: Hawke's Bay 33kV Sub-transmission and Point of Supply Network...... 4-9 Figure 4-3:Taupo 33kV Sub-transmission and Point of Supply Network ...... 4-14 Figure 4-4: Rotorua 33kV Sub-transmission and Point of Supply Network...... 4-18 Figure 4-5: Megatrends Chart ...... 4-29 Figure 4-6: NZ Solar PV Installed Capacity...... 4-32 Figure 4-7: Scenarios ...... 4-33 Figure 4-8: Expected ...... 4-35 Figure 4-9: Portion of Unison’s network under various scenarios ...... 4-35 Figure 4-10: Overview of Network Development Planning Process ...... 4-41 Figure 4-11: Overview of Constraint Forecasting Process...... 4-42 Figure 4-12: Load Forecast Tool ...... 4-43

© Unison Networks Limited 2019 © Unison Networks Limited 2019 44-4-4 SECTION SECTION 4 4NETWORK NETWORK DEVELOPMENT DEVELOPMENT PLANS PLANS SECTION 4SECTION NETWORK 4 NETWORK DEVELOPMENT DEVELOPMENT PLANS4- 5 4-5 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKS LIMITEDUNISON NETWORKS | REGULATORY LIMITED ASSET| REGULATORY MANAGEMENT ASSET MANAGEMENT PLAN UPDATE PLAN UPDATE2019-29 2019-29

4. NETWORK DEVELOPMENT PLANS 4.1.1.1 Load Characteristics by GXP

4.1 Introduction to this Section Unison takes supply at seven GXPs from Transpower and one Point of Supply (POS) from Mercury Energy. This section provides an overview of how Unison conducts network development planning and continually improves its network development programme. It demonstrates how the various elements of Network Development Planning fit together to achieve Unison’s Network Region GXP Loads/POS Commentary Development Objectives, informed by the Asset Management Objectives detailed in Section 2. Napier Redclyffe Residential Majority Load: Residential/Commercial in urban area. Commercial Peak: Winter – gap with summer is decreasing. Industrial Agricultural Summer and winter loads are both decreasing. The peak in winter Network Overview is being offset by higher generation by embedded generation at Esk Unison owns and operates network assets across the Hawke’s Bay, Taupo and Rotorua hydro during wet winter months, contributing to a narrower gap regions. Each of these regions is a sub-network. These assets cover an area of 12,181km2 and between summer and winter. serve approximately 113,000 customers. Supply is received via seven Transpower Grid Exit Points (GXPs) across the three regions. Hastings Fernhill Residential Majority Load: Residential Commercial Peak: Summer The three regions are electrically detached under normal operating conditions, although there is Industrial a physical connection between Taupo and Rotorua that can be used in case of emergency or Agricultural The traditional winter peak has been replaced by a summer peak network contingency. Figure 4-1 shows the location of these regions. due to high demand from irrigation systems and commercial cold storage on some feeders.

Continued conversion of farmland to lifestyle blocks is changing some agricultural load to residential. This combined with increased demand from commercial and industrial customers has resulted in:

• increased loading, and • different load profiles being experienced on these feeders.

Hastings Whakatu Residential Majority Load: Residential Commercial Peak: Winter – gap with summer is increasing. Industrial Agricultural Decreased loads are being experienced in both summer and winter although the decrease is more pronounced in summer.

Taupo Wairakei Residential Majority Load: Residential Commercial Peak: Winter – gap with summer may narrow due to large scale Industrial irrigation. Agricultural Embedded Summer peak tends to occur during the Christmas holiday period Generation due to the large number of holiday homes in the area. There are currently three embedded generators injecting at 33kV. The capacity of these generators greatly exceeds maximum Taupo demand.

Rotorua Atiamuri Point of Majority Load: Agricultural Supply from Peak: Both Mercury Energy / The load in this area is mainly dairy. The milking peaks in Figure 4-1: Map of Regions in Unison's Network Residential November, resulting in the same peak demand for winter and Agricultural summer. Highlighted areas are urban, others are rural for different regions indicated in the legend.

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Region GXP Loads/POS Commentary

Hawke’s Bay Network Overview Rotorua Owhata Residential Majority Load: Residential Commercial A double circuit 220kV tower line from Wairakei to Whirinaki, Whakatu and Redclyffe supplies Peak: Winter – gap with summer is large except when Easter is Industrial the Hawke’s Bay region. From Redclyffe, the remainder of the region is supplied by 110kV especially cold. Agricultural transmission, connected to the 220kV line via two 220/110kV interconnecting transformers. The load in this area is mainly residential including holiday homes along with some industrial load. Regional grid generation from the Waikaremoana hydro-scheme provides up to 137MW at full output and can provide limited dynamic voltage support at zero power output. Rotorua Rotorua Residential Majority Load: Residential/CBD A double circuit 110kV tower line from Redclyffe via Fernhill and Woodville connects to 11kV and Commercial Peak: Winter – narrow gap with summer. 33kV Industrial Bunnythorpe, Palmerston North. These circuits are not normally used to supply Hawke’s Bay as Agricultural This GXP supplies both: they are operationally split at Waipawa due to their poor load sharing compatibility with the 220kV connection to Wairakei. In the event of a failure on the double-circuit on the Wairakei to • 11kV directly to the CBD and urban areas (winter peak), Redclyffe 220kV line they can be used for very limited back-up supply in conjunction with and generation from Waikaremoana. • 33kV to Unison’s urban (winter peak) and rural (summer peak) substations.

Rotorua Tarukenga Residential Majority Load: Residential Agricultural Peak: Winter – narrow gap with summer. 4.1.2.1 Large Customers

The load in this area is mainly residential including a large number Large customers are customers with a peak load greater than 1MVA. These customers often of lifestyle blocks. have unique network configurations, so Unison takes special measures to ensure compatibility with network operations. Unison also works with these customers to ensure that maintenance is Table 4-1: Load Characteristics by GXP scheduled at appropriate times.

Government Health & Education Food Processing Industrial 4.1.1.2 Peak Demand and Total Energy Delivered

Peak demand and total energy delivered is measured at GXPs. These figures are then Department of Hawke’s Bay District Silver Fern Farms Beef Port of Napier Corrections Health Board aggregated into regional demand. Apollo Apples (2014) Cavalier Bremworth Napier City Delegat’s Vineyards Orora Packaging New Zealand Council Freeze Dried Foods NZ Pentagon Enterprises Region Peak Demand (MW) Total Energy Delivered (GWh) Fruit Packers (HB) Co-operative Hawke’s Bay Woolscourers

Hawke’s Bay 194 956 Hawk Packaging Energy for Industry

Turners & Growers Auckland Ravensdown Fertiliser Co-op Taupo 47 241 Whakatu Coldstores Pact Group Holdings

Rotorua 88 419 McCain Foods (NZ)

Heinz Wattie's Table 4-2: Regional Peak Demand and Total Energy delivered in the 2017/2018 Financial Year Crasborn Fresh Harvest

Mr Apple New Zealand

Hawke’s Bay Protein

ENZA

Table 4-3: Hawke's Bay Large Customers

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4.1.2.2 Supply Points and Embedded Generation

Table 4-4 below provides a summary of the supply points and embedded generation across the whole network.

2017/18 Peak Demand Winter Firm Capacity Supply Type (GXP)/Embedded (GXP)/Embedded Generator Output (MVA) Generator Capacity (MVA)

Fernhill 33kV GXP 54 35

Whakatu GXP 86 113

Redclyffe GXP 67 142

Ravensdown 11kV Embedded Generator 0 8

Esk Hydro Embedded Generator 3 4

Omarunui Landfill Embedded Generator 0 1

HB Hospital Embedded Generator 0 2

Table 4-4: Supply Points and Embedded Generation

4.1.2.3 Hawke’s Bay Sub-transmission Network

Urban areas across Hawke’s Bay are supplied by a meshed sub-transmission network and provide a high level of security (n-1 or better). This system is protected with a line differential system using SEL relays.

Rural areas are supplied by a radial sub-transmission network providing an acceptable level of security (n). These are protected for earth fault and over-current using predominantly SEL relays with some older electronic and electro-mechanical relays that are scheduled for replacement as part of the renewal programme.

Figure 4-2 provides a geographical view of the sub-transmission Hawke’s Bay network schematics. Table 4-5 lists the capacity and security of the zone substations across Hawke’s Bay.

Figure 4-2: Hawke's Bay 33kV Sub-transmission and Point of Supply Network

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Sub- Maximum Installed Sub- Maximum Installed Zone Supply Firm Capacity Zone Supply Firm Capacity GXP Transmission Demand Capacity GXP Transmission Demand Capacity Substation Voltage (MVA) Substation Voltage (MVA) Security (MVA) (MVA) Security (MVA) (MVA)

Camberley 33kV n-1 11 18 9 Windsor 33kV n-1 8 40 20

Fernhill 33kV n 7 10 0 Table 4-5: Hawke's Bay Zone Substation Capacity and Security

Flaxmere 33kV n-1 11 40 20

Havelock 33kV n-1 14 40 20 4.1.2.4 11kV Distribution Network North Fernhill The distribution networks in urban areas have a high level of interconnectivity with neighbouring Irongate 33kV n-1 9 30 10 11kV networks and provide considerable flexibility during contingency events. This results in a high level of security in these areas. Maraekakaho 33kV n 3 10 0 The distribution networks in rural areas are supplied predominantly by overhead radial feeders McCain 33kV n 4 10 0 with wooden poles. 11kV interconnectivity is limited, and supply could be compromised during a single contingency event. Sherenden 33kV n 1 3 0 11kV circuits are protected for earth fault and over-current using predominantly SEL relays Awatoto 33kV n-1 7 24 12 along with some older electronic and electro-mechanical relays that are scheduled for replacement as part of the renewal programme. Church Road 33kV n-1 11 20 10 20% of the Hawke’s Bay 11kV distribution network is underground. Esk 33kV n 4 10 0

Faraday 33kV n-1 12 40 20 Street 4.1.2.5 400V Distribution Network Redclyffe Patoka 33kV n 1 3 0 The 400V network in the urban area has interconnectivity with adjacent distribution transformers. Most of the CBD and urban 400V reticulation is underground. Springfield 33kV n-1 7 15 8 The 400V network in the rural and remote rural areas is predominately radial aerial conductors. Tamatea 33kV n-1 11 40 20 Transformers are sized to the connection party’s requirement unless a sub-division is connected. Tannery Road 33kV n-1 12 40 20 73% of the Hawke’s Bay 400V network is underground. Tutira 33kV n 1 1 0

Arataki 33kV n-1 8 19 9

Bluff Hill 33kV n 10 30 0 4.1.2.6 Secondary Systems Load management is carried out using a Ripple Control system with 297Hz signals generated Hastings 33kV n-1 18 40 20 from three points adjacent to the GXPs and connected to the 33kV system. There are a few areas still controlled using a legacy pilot system, but this is being phased out as part of the Whakatu Mahora 33kV n-1 11 30 10 400V renewal programme.

Marewa 33kV n-1 14 40 20 Communications between remote sites and the Network Operations Centre is via a combination of fibre optic cables and mesh/point to point VHF radio. Rangitane 33kV n-1 16 48 24

Tomoana 33kV n-1 6 15 8

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Taupo Network Overview 4.1.3.3 Sub-transmission Network The main supply to the Taupo region is via two 220/33kV supply transformers at Wairakei GXP, Urban areas are supplied by a meshed sub-transmission network which provides a high level of with a significant contribution from the embedded geothermal generation at Rotokawa and Te security (n-1). This system is protected with a line differential system using SEL relays. Huka, and to a lesser extent hydro generation at Hinemaiaia. Rural areas are supplied by a radial sub-transmission network providing an acceptable level of security (n). These are protected for earth fault and over-current using predominantly SEL relays with some older electronic and electro-mechanical relays that are scheduled for replacement as part of the renewal programme.

4.1.3.1 Large Customers Figure 4-3 provides a geographical view of the Taupo sub-transmission system and Table 4-8 Large customers are those with a peak load greater than 1MVA. These customers often have lists the capacity and security of the zone substations across Taupo. unique network configurations, so Unison takes special measures to ensure compatibility with network operations. Unison also works with these customers to ensure that maintenance is scheduled at appropriate times.

Government Industrial

Taupo District Council Norske Skog Tasman

Landcorp Tenon Clearwood

The Laminex Group - Operations

Table 4-6: Taupo Large Customers

4.1.3.2 Supply Points and Embedded Generation

Table 4-7 provides a summary of the supply points and embedded generation in Taupo.

2017/18 Peak Supply Type Capacity (MW) Demand/Output (MW)

Wairakei GXP 48(1) 67

Hinemaiaia Embedded Generator 7 9

Rotokawa Embedded Generator 34 36

Te Huka Embedded Generator 12 30

Table 4-7: Supply Points and Embedded Generation

(1) Embedded generation in the Taupo region was greater than local demand throughout the 2016/17 year.

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Sub- Maximum Installed Firm Zone Supply GXP transmission Demand Capacity Capacity Substation Voltage Security (MVA) (MVA) (MVA)

Wairakei Fletchers 33kV n-1 8 30 15

Runanga Street 33kV n-1 24 36 22(2)

Taupo South 33kV n-1 7 20 12

Fleet Street 33kV n-1 8 15 0(2)

Ohaaki 33kV n(1) 3 10 0

Te Toke 33kV n(1) 2 30 15

Table 4-8: Taupo Area Zone Substation Capacity and Security

(1) Ohaaki and Te Toke substations have an alternative supply available from Contact Energy’s Ohaaki power station. (2) Automated fast transfer schemes move load between Runanga Street and Fleet Street Substations if a transformer is unavailable at either site.

4.1.3.4 11kV Distribution Network

The distribution system in urban areas has a high level of interconnectivity between neighbouring 11kV networks and provides considerable flexibility during contingency events. This results in a high level of security in these areas. The high proportion of automated switches in Taupo also reduces outage times.

Rural areas are supplied predominantly by radially configured feeders using overhead lines on wooden poles. 11kV interconnectivity is limited and supply could be compromised during a single contingency event. Some of these lines are single-wire earth return (SWER) lines.

11kV circuits are protected for earth fault and over-current using predominantly SEL relays along with some older electronic and electro-mechanical relays that are scheduled for replacement as part of the renewal programme.

15% of the Taupo area 11kV distribution network is underground.

4.1.3.5 400V Distribution Network

The 400V network in the urban area has interconnectivity between adjacent distribution transformers. The majority of the urban 400V reticulation is underground.

The 400V network in the rural and remote rural areas is predominately radial aerial conductors Figure 4-3:Taupo 33kV Sub-transmission and Point of Supply Network with transformers sized to meet the customer’s requirement unless a sub-division is connected.

73% of the Taupo 400V network is underground.

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4.1.3.6 Secondary Systems 4.1.4.2 Supply Points and Embedded Generation

Load management is carried out using a Ripple Control system with 317Hz and 725Hz signals Table 4-10 provides a summary of the supply points and embedded generation in Rotorua. generated from four points connected to the 11kV system.

Communications between remote sites and the Network Operations Centre is via a combination 2017/18 Peak Firm Capacity Winter of mesh and point to point VHF radio. Supply Type Demand/Output (MVA) (MVA)

Owhata POS 12 12

Rotorua(1) GXP 49 66 Rotorua Network Overview

Grid supply to the Rotorua region originates from Tarukenga substation which is interconnected Rotorua POS POS 27 36 to the remainder of Transpower’s 220kV system. Tarukenga POS 7.5 0 The Tarukenga regional 110kV transmission system supplies the Unison network from grid exit points at Rotorua and Owhata. The grid supply arrangement to Rotorua GXP is via two 110kV Whaeo Embedded Generator 12.5 26 circuits from Tarukenga, with a split 110kV busbar at Rotorua. Red Stag (Waipa) Embedded Generator 2.8 3 A small area of the region is supplied by an 11kV point of supply from Atiamuri Power Station.

Table 4-10: Rotorua Supply Points and Embedded Generation

(1) Rotorua includes Atiamuri values as no sub-transmission system, fed directly from Mighty River Power (MRP) generating station. 4.1.4.1 Large Customers

Large customers are customers with a peak load greater than 1MVA. These customers often have unique network configurations, so Unison takes special measures to ensure compatibility with network operations. Unison also works with these customers to ensure that maintenance is 4.1.4.3 Sub-transmission Network scheduled at appropriate times. Urban areas are supplied by double circuits and provide n-1 levels of security.

Rural areas are supplied by a radial sub-transmission network, providing an acceptable level of security (n). Government Health & Education Food Processing Industrial All protection is provided by Transpower at the Grid Exit Points. Rotorua District Lakes District Health Fonterra Co-operative WD Holmes Figure 4-4 provides geographical views of the sub-transmission Rotorua network schematics. Council Board Group La Grouw Corporation Table 4-11 lists the capacity and security of the zone substations across Rotorua. Wairakei Institute of Claymark Technology Mamaku Sawmilling Co

McAlpines

Hume Pine

Red Stag Timber

Table 4-9: Rotorua Large Customers

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Maximum Installed Firm Zone Supply Sub-transmission GXP Demand (MVA) Capacity Capacity Substation Voltage Security (MVA) (MVA)

Atiamuri(1) Atiamuri 11kV N/A(1) 2 4(2) 2

Rotorua Arawa 33kV n-1 21 40 20

Biak Street 33kV n-1 17 40 20

Fernleaf 33kV n 8 8 0

Rainbow 33kV n 3 5 0

Rotorua POS(3) 11kV n-1 27 70 35

Waipa 33kV n 7 20 0

Tarukenga Tarukenga POS(3) 11kV n 8 20 0

Owhata Owhata POS(3) 11kV n-1 12 26 12

Table 4-11: Rotorua Zone Substation Capacity and Security

(1) No sub-transmission system, fed directly from Mighty River Power (MRP) generating station. (2) Assets are owned by Mighty River Power. (3) Point of Supply (POS), Assets owned by Transpower.

4.1.4.4 11kV Distribution Network

The distribution network in urban areas has a high level of interconnectivity with neighbouring 11kV networks and provides considerable flexibility during contingency events. This results in a high level of security in these areas.

The distribution networks in rural areas are supplied predominantly by overhead radial feeders with wooden poles. 11kV interconnectivity is limited and supply could be compromised during a single contingency event.

13% of the Rotorua 11kV distribution network is underground. The Rotorua Energy Charitable Trust periodically funds overhead to underground (OHUG) projects in the Rotorua region on a case-by-case basis.

Figure 4-4: Rotorua 33kV Sub-transmission and Point of Supply Network

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4.1.4.5 400V Distribution Network Network Reliability The 400V network in the urban areas of all regions has connectivity with adjacent distribution Network reliability is an important indicator of the quality of the service being received by transformers. Most of the CBD and urban 400V reticulation is underground. customers from their Electricity Distribution Business (EDB). A large variety of indices have The 400V network in the rural and remote rural areas is predominately radial aerial conductor been developed to provide indications of network reliability, the most commonly applied are: with transformers sized to meet the customer’s requirements unless a sub-division is • SAIDI (System Average Interruption Duration Index), and connected. • SAIFI (System Average Interruption Frequency Index).

For EDBs, the Commerce Commission has set regulatory limits for both SAIDI and SAIFI based on the network’s performance during the last regulatory period. These limits are re-set every five years with the intent that EDBs maintain network reliability. The current limits are applicable 4.1.4.6 Secondary Systems for the 2015/16 to 2020/21 period. Load management is carried out using a Ripple Control system with signals generated at Unison applies sound asset management practices and utilises new technologies to ensure that 500Hz and 317Hz from four points adjacent to the GXPs and connected to the 33kV and 11kV network reliability is maintained within regulatory limits. systems as appropriate. There are a few areas still controlled using a legacy pilot system, but this is being phased out as part of the 400V renewal programme.

Communications between remote sites and the Network Operations Centre is via a combination of mesh and point to point VHF radio. Power Quality

To ensure that the solutions to current power quality constraints are appropriate for the network in the long-term, power quality must be considered over both short and long-term planning horizons. 4.2 Network Development Planning Objectives and Criteria As quality of supply issues can result from both Unison’s network and customers’ own Unison’s network development objectives are informed and translated directly from the Asset installations or equipment designs, Unison has published a Network Connection Standard on its Management Objectives detailed in Section 2. website. This standard outlines the responsibilities of both Unison and the customer to ensure The network development objectives are to: that all connection parties receive electricity supply to appropriate quality and performance standards. The standard is also referenced in Unison’s Use of System Agreement with all • meet customer-driven needs retailers and in the Customer Connection Agreement with each customer. • maintain network security and service levels • be within the band between the collar and the target of the network reliability targets Unison’s Quality of Supply Standard and asset design standards specify the limits of key power • meet power quality requirements, and quality parameters on voltage regulation, voltage unbalance, harmonic distortion flicker, and voltage fluctuation. The specified limits are summarised in Table 4-12. • meet regulatory and legislative requirements.

These objectives have been distilled into the following network development criteria:

• network reliability Power Quality Parameters Specified Limits • power quality • security of supply, and Voltage regulation 230V +/- 6% • network equipment ratings. Voltage unbalance Less than 2% These criteria are discussed further below. Total harmonic distortion voltage Less than or equal to 5%

Flicker Short-term - less than 1.0

Long-term - less than 0.8

Voltage fluctuation Various limits specified in respective design standards

Table 4-12: Power Quality Parameters and Limits

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4.2.2.1 Voltage Regulation 4.2.2.5 Power Quality Measurement

Unison designs and operates the network to ensure supply voltage to customers when Unison has a proactive approach to maintaining the quality of supply to customers using measured at the Point of Supply is in accordance with the regulatory limit of 230V +/-6%. Internet Protocol (IP) communications-enabled power quality monitoring devices. These are Voltage regulation constraints are identified through network modelling, network monitoring installed in Unison’s main zone substations and at more than 300 distribution transformer sites. using sensors and through customer contact. When potential issues are identified, their The comprehensive power quality information gathered is used to improve Unison’s investigation and any required resolution are treated as a matter of priority. management of power quality.

Monitoring at, or close to, customer premises will continue for both sampling purposes and on an incident-specific basis.

4.2.2.2 Voltage Unbalance

Unison endeavours to keep voltage unbalance on all voltage levels of its network to 2%. Voltage unbalance occurs where the voltages of each phase in a system are not equal. Such Security of Supply issues are more commonly identified through customer contact, mainly due to unanticipated To ensure the network meets its agreed performance targets and obligations, Unison applies a changes in customer load, new installation/s and altered equipment design. When potential set of Security of Supply criteria based on the established framework set out in Tables 4-13 and issues are identified, their investigation and any required resolution are treated as a matter of 4-14. The framework defines the optimal level of security for different customer load types and priority. load sizes. The criteria are used to identify network security constraints when contingency events occur and to guide the selection of solutions to mitigate these constraints.

Unison intends to review these criteria and the associated supply restoration times using data from smart network technologies, network demand profiles and known customer expectations 4.2.2.3 Harmonic Distortion (as documented in customer surveys). This is to ensure these criteria remain relevant and yet Unison specifies 5% as the maximum allowable level of harmonic distortion of voltages supplied continue to meet regulatory network performance targets. to customers when measured at the Point of Common Connection. Identifying and tracking the source or cause of harmonic distortion is generally very difficult and often involves investigation of one or more customers’ installations, as well as network configuration. Unison works with all Maximum Demand affected parties, including external consultants, to identify the cause of harmonic distortion and Consumer Load Type <1MVA 1-5MVA 5-15MVA >15MVA determine the most cost-effective solution. As a last resort, if a customer’s installation is identified as the cause, Unison reserves the right to disconnect that installation to protect other CBD/Industrial L4 L3 L2 L1 customers’ installations from damage. Urban/Residential - Commercial L4 L3 L3 L2

Green Belt - Rural/Commercial - Residential L4 L4 L4 L3

4.2.2.4 Flicker and Voltage Fluctuation Remote Rural L5 L4 L4 L3 Occasionally, specific customer installations can cause interference due to the use of Table 4-13: Security of Supply Classification equipment, such as large motors or power factor correction capacitors. This interference can arise in many forms such as flicker, voltage sags and surges, and absorption of Unison’s load control signals. To ensure this equipment does not cause problems, the Network Connection Standard provides guidelines for customers to notify Unison before connecting this type of Security of Supply Restoration Times equipment. This allows Unison to assist the customer by assessing whether a problem is likely Level N-1 N-2 to occur before significant investment decisions are made.

L1 No break 75% restored within 1 hour

L2 100% restored within 1 minute 50% restored within 1 hour

L3 100% restored within 30 minutes 50% restored within 1 hour

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Security of Supply Restoration Times Design Standard Asset Asset Level Load Type Capacity Determination Factors Considerations Level N-1 N-2 L4, L5 Single transformer Service areas it supplies – urban, rural, L4 100% restored within 4 hours Time to repair remote rural.

Customer classification – industrial, L5 Time to repair Time to repair commercial, residential.

Table 4-14: Summary of Security of Supply Restoration Times Degree of security needed. Zone Transformer Substation Expected demand over the planning L1, L2, L3 Double transformer period (10 years). In addition to managing restoration times, other aspects of network performance also need to be managed in contingency conditions. These include ensuring the safety of people, the Requirement to provide backup for security of zone substations, maintaining system voltages, and not exceeding network element surrounding zone substations. loading and protection relay operating limits. All must be managed to ensure Unison achieves Timing of the load peaks - summer, an optimal balance between customer expectation and performance targets, without any winter. adverse effects on assets. L4, L5 Outdoor Switchgear Expected demand over the planning period (10 years).

Circuit Zone Requirement to back-feed or support a Breakers Substation wide range of switching contingencies. Network Equipment Ratings L1, L2, L3 Indoor Switchgear Likely fault current rating. Unison’s network equipment is selected for its current interruption and current carrying ratings Expected duty service. to ensure sufficient capacity exists for routine operations and under fault conditions. Equipment must operate within defined ratings. This is a critical requirement for the safe and efficient 33kV L1, L2 500,630,800mm2 AI XLPE Expected demand over the planning operation of the network. As part of the Network Development Planning process these ratings period (10 years). are regularly reviewed and assessed under normal network configuration and alternative supply Requirement to back-feed or support a arrangements. wide range of switching contingencies. Historically, Unison has utilised a conservative value of Maximum Continuous Ratings (MCR), Underground In some cases the load duty cycle adjusted for average ambient summer and winter temperatures for short to medium-term Cable 2 (may apply in industrial situations). planning purposes. The summer and winter periods are aligned with those used by Transpower 11kV L1, L2, L3 300mm AI XLPE (summer is from October to April and winter is from May to September). Further refinement of De-rating effects that other cables buried nearby may have. capacity utilisation techniques to maximise asset utilisation by applying monthly MCRs for all components based on cyclic ratings and ultimately dynamic ratings are detailed in Section De-rating effects of soil temperature 4.2.4.2. and thermal conductivity.

In Unison’s network regions there are no region-specific capacity considerations. Some design Expected demand over the planning considerations do vary in different areas, e.g. to cater for the impact of high geothermal activity Ground clearances based on period (10 years). in Rotorua. These considerations are discussed further in Section 5. span length, conductor size, Current rating capacity required. circuits to be carried and the legal clearances required for Electrical characteristics of the load Overhead L1, L2, L3, 11kV & 33kV terrain. supplied e.g. power factor, duty cycle. Lines L4, L5 Design consideration such as Tolerable voltage drop for the line. 4.2.4.1 Capacity by Asset Type ice-loading, excessive Requirement to back-feed or support a dynamic wind loads and The determination of available capacity is not only limited to the headroom available on wide range of switching contingencies. transformers, overhead lines and underground cables, but also the other assets that support geothermal impact. Importance of reducing losses. these infrastructural elements including poles, 400V circuits and circuit breakers.

Table 4-15 details the key considerations for determining network capacity across key asset types.

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Design Standard Asset Asset Level Load Type Capacity Determination Factors Considerations 4.2.4.2 Capacity Review

Height requirement for ground Unison has historically used Maximum Continuous Rating (MCR) for short to medium-term clearances based on span planning purposes. Unison uses the cyclic rating output of the dynamic rating algorithm for length, conductor size, circuits planning purposes to maximise asset utilisation. During cooler seasons, the dynamic ratings are to be carried and the legal almost always higher than the name-plate or maximum continuous rating, which generally clearances required for means the asset can be safely loaded above this without it being overheated and damaged. terrain. Dynamic rating refers to the concept of making an asset’s rating adaptive to its environmental Pole-top loadings based on parameters. Weather parameters are constantly changing and often cyclical in nature. Ambient the size, weight and number Planned future circuit requirements of conductors on the pole. that may be added and the voltages. temperature is an important parameter that will either cool down or heat up an asset and affects L1, L2, L3, the asset’s ability to carry current. Environmental information must be collected to determine the Poles 11kV & 33kV Permanent loading. Degree of security and factors of L4, L5 dynamic ratings for assets. Unison has been collecting this information in real-time using safety needed based on the Design consideration such as sensors. importance of the circuit. ice-loading and excessive dynamic wind loads. Unison uses real-time environmental data and a dynamic rating algorithm based on international IEC standards to calculate different ratings in real-time and publishes these on Whether the pole has a stay corporate systems. These ratings can be cyclic ratings, short-term emergency ratings and long- or not. term emergency ratings. Each is used for a different purpose depending on the length of time Degree of security and factors the increased load on the asset would be expected to last. of safety needed, based on the importance of the circuit. These ratings are currently available for some assets across three asset classes, 33kV overhead lines, 33kV cables and power transformers. Unison intends to continuously improve Customer diversity. the existing algorithms for dynamic ratings and to utilise them in contingency and constraint

Future connections. situations.

Voltage drop, especially for rural Load-carrying capability and customers. reliability required. Distribution L1, L2, L3, Load types to avoid quality issues 11kV Spares are carried for transformer L4, L5 (household load vs. high reactive 4.3 Macro-environmental and Future Network Context transformers with a capacity loads). up to 1MVA. 4.3.1 Introduction Harmonic content of the load. The energy landscape is likely to change dramatically in the coming years and it is important for Voltage imbalance expected with the increase in DG. Unison to evolve if it is to deliver value for its stakeholders and customers. The timing and exact nature of the changes are unknowable, so it is also critical that Unison strengths in managing

Distribution L1, L2, L3, Load-breaking capability, Customer density. electricity distribution assets continue to be enhanced. As the environment in which Unison 11kV operates is changing faster than ever before, Unison will need to have an agile strategy and the switchgear L4, L5 reliability and functionality. Automated switchgear. ability to manage future uncertainties to remain relevant. Increasing support for a decarbonised Customer density. energy policy coupled with breakthroughs in technology mean uptake of Distributed Energy Resources and the efficient integration of them within the electricity distribution system are 400V OH Security of supply required. becoming almost inevitable. L1, L2, L3, Radial 400V feeders with Voltage drop. 400V feeder L4, L5 group breaks. To prepare for an uncertain future Unison uses firstly megatrends to explore the social and Capacity required. technology trends that are shaping the world, and which are most likely to be relevant to 400V UG Current and expected uptake of DG in Unison, and secondly scenarios for ordering Unison’s perceptions about alternative future the area. environments in which today’s decisions might be played out.

Table 4-15: Capacity Determination for Network Assets Megatrends in the energy landscape relate to the proliferation of distributed energy resources such as solar panels, batteries and electric vehicles. These trends are not only limited to trends directly impacting the energy sector, it also includes the move to platform-based models,

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interconnectivity between people and devices, and the digitalisation of intelligence and the developed world have each played their role in shaping the last few decades and continue relationships between various stakeholders. Some, or all of these trends will impact on Unison’ to have influence in 2019. customers and the supply chains used, necessitating changes to Unison’s business model and The key differences in impact that contemporary megatrends have on today’s businesses are providing new value creating opportunities. the speed at which they can arise and disrupt existing value networks, and their increased As the energy landscape begins to evolve to the new energy future, the demarcation between pervasiveness due to the deeply interconnected world that we live in (both in terms of electricity generator, distributor and retailer will become less clear. As a result, it is important globalisation and digital technologies). Consideration of megatrends is therefore an important when developing Unison’s strategy to consider what organisations, other than electricity starting point when considering long-term strategy. distribution businesses, are doing to play a role in the energy landscape of the future. Retailers, Figure 4-5 plots megatrends with future influence along the vertical axis and the relevance to in partnership with platform and technology companies, are offering peer to peer energy trading Unison along the horizontal axis. The bubble size provides an indication of current influence. platforms, solar panels, batteries and home energy management tools to enable consumers to Although all of these trends may be relevant in formulating Unison strategy, those in the top lower their overall energy bill. right quadrant are likely to be most significant. Further detail on how this analysis was Internationally, progressive electricity distribution businesses and other energy companies have undertaken is provided in the following section. begun to respond to these trends. While there are differences between each country, lessons can be taken from the strategies electricity distribution businesses are employing to transform themselves from monopoly utilities into customer-centric technology companies. One strategy Megatrends relevant to Unison is the transition from a distribution network operator (DNO) to distribution

system operator (DSO) to create new opportunities and add value in an environment with Internet of Things (IoT) Artificial Intelligence (AI) Distributed Energy Resources (DER) increasingly distributed energy resources. To support this, progressive electricity distribution Electric Vehicles (EV) businesses are enhancing their stakeholder and customer engagement. They are also Very High Social Media Platform-based engaging in open innovation models by partnering with other organisations that have Business Models complementary capabilities and objectives. Blockchain High For strategy purposes, Unison uses scenarios to balance the opportunities available from Digitisation of Human FutureInfluence megatrends tempered against its business risks. The opportunities and attendant risks Relationships Infrastructure-as-a- Crowdsourcing Cloud Services Service generally fall under two broad categories, rate of trend development (Incrementalism or Sharing Economies Metamorphosis) and ability to manage change (Master or Marionette). Moderate

“A scenario is a tool for ordering one’s perceptions about alternative future environments in which today’s decisions might be played out.”1 Scenarios are powerful planning tools precisely Moderate High Very High because the future is unpredictable. Unlike traditional forecasting or market research, scenarios Relevance to Unison present alternative images instead of extrapolating current trends from the present. Scenarios also embrace qualitative perspectives and the potential for sharp discontinuities that Figure 4-5: Megatrends Chart econometric models exclude. Consequently, creating scenarios requires decision-makers to question their broadest assumptions about the way the world works so they can foresee decisions that might be missed or denied. Within the organisation, scenarios provide a common The megatrends that were evaluated as having a future relevance to Unison of three or more vocabulary and an effective basis for communicating complex – sometimes paradoxical – were consolidated into Table 4-16. To maintain relevance to future network design and for the conditions and options. purpose of Unison Regulatory Asset Management Plan, only a subset of the megatrends listed below are discussed in further detail. For more information on an analysis of the other megatrends listed, please contact Unison.

4.3.2 Megatrends

A megatrend is defined as “an important shift in the progress of a society”. Although the terminology is recent, the phenomenon of megatrends is not, and megatrends such as globalisation, information technology, the rise of the BRICS nations, and demographic shifts in

1 Peter Schwartz is an American futurist, innovator, author, and co-founder of the Global Business Network (GBN), a corporate strategy firm, specialising in future-think and scenario planning.

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Electric Vehicles Score Current Influence Future Influence Future relevance to Unison Electric vehicles are powered by chemical potential energy stored within batteries, rather than A very strong influence on The influence of the The megatrend will have a direct the combustion of hydrocarbons. The NZ Transport Agency recognises two main types of 5 global economics, politics megatrend is likely to impact on Unison’s day-to-day electric vehicle: and societies. greatly increase over time. operations. • Battery electric vehicles (BEVs): powered only by a battery which is charged by connecting A strong influence on The influence of the The megatrend will have a direct to an external source of electricity. 4 global economics, politics megatrend is likely to impact on Unison’s strategy and • and societies. increase over time. planning. Plug-in hybrid electric vehicles (PHEVs): vehicles with both an electric motor and an internal combustion engine. A moderate influence on The influence of the The megatrend will have a direct Although EVs first came into existence in the mid-19th century, they have recently gained 3 global economics, politics megatrend is likely to impact on Unison’s customers or and societies. remain constant over time. supply chain. greater acceptance globally due to technological developments and Government incentives associated with decarbonisation policies and changing social values around the environment. A low influence on global The influence of the The megatrend will have an 2 economics, politics and megatrend is likely to indirect impact on Unison’s The Ministry of Transport reports that the New Zealand EV fleet increased by 5,500 in 2018 societies. diminish over time. customers or supply chain. (3,500 in 2017) to reach a total of 11,700 electric vehicles. The Government has a target of 64,000 EVs by 2021, which is equivalent to almost 2% of the total vehicle fleet. A very low influence on The influence of the The megatrend will have a 1 global economics, politics megatrend is likely to minimal impact on Unison’s, its EVs are highly relevant to Unison and other EDBs. An EV with a typical daily commute of 40km and societies. greatly diminish over time. customers or its supply chain. requires 6-8kWh of energy to recharge, equivalent to the daily demand of a small household. In

Table 4-16: Scoring Schema for Megatrends an unregulated environment, EV users are likely to plug-in when they get home, around 6:00 p.m., at exactly the time that residential electricity networks experience peak demand further increasing peak load. Early EV buyers tend to have similar levels of income, education and environmental awareness, meaning they are likely to live in the same neighbourhoods – further Megatrend Current Influence Future Influence Future Relevance to Unison concentrating the impact of EVs on electricity networks.

Artificial Intelligence (AI) 3 5 5 Distributed Energy Resources Electric Vehicles (EV) 3 5 5 Although there is still not concrete definition of DER in the literature, a commonly cited definition Internet of Things (IoT) 3 5 5 is a “source of electric power that is not directly connected to a bulk power transmission system” (IEEE). All definitions refer to equipment capable of generating or storing electricity that Platform-based Business 3 5 5 Models is connected to the distribution network either at high voltage (embedded) or low voltage (including behind the meter). The most commonly cited technologies are solar photovoltaics Cloud Services 4 4 5 (PV), batteries, and micro-wind turbines. Distributed Energy 2 5 4 The economics of DERs are rapidly improving. The US Department of Energy reported that Resources (DER) between 2008 and 2014, the cost of solar PV reduced 54%, batteries reduced 73% and Social Media 5 4 4 onshore wind turbines reduced 41%. These trends are expected to continue. The reductions in Crowdsourcing 3 4 4 cost are leading to increases in uptake, and this is evident in New Zealand, as shown in Figure 4-6. Although the levels of solar PV in the New Zealand power system are very small (0.7% of Sharing Economies 3 4 4 total installed capacity) they are growing rapidly at a compound annual growth rate of over 50% Infrastructure-as-a- since the end of 2013. 2 4 4 Service Digitalisation of Human 2 4 3 Relationships

Blockchain 1 4 3

Table 4-17: Megatrends Consolidated

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Figure 4-6: NZ Solar PV Installed Capacity

Although DER will clearly have an impact on Unison, its effect is expected to be more muted Figure 4-7: Scenarios than in major cities. This is because of the relatively low socio-economics of Unison regions and the high upfront capital costs of installing DER. The affordability issue can however be overcome by subsidisation from Government, Unison or third parties lease arrangements. The Laissez-faire effects on distribution networks from DER uptake include: A world in which policy-makers and regulators have failed to deliver for customers, resulting in 1. Lower electricity volumes being distributed from upstream infrastructure, and the potential an electricity sector that continues to repeat the mistakes of the past: a lack of economies of that parts of the network become net exporters. scale in distribution, poor delineation of roles and responsibilities in the supply chain, limited 2. Two-way power-flows requiring new network architecture, equipment selection criteria and technical standardisation including interoperability protocols, and no distribution pricing reform. operational processes. In this world the customer experience varies dramatically depending on where you live. Several 3. The opportunity to use DER to alleviate capacity or voltage constraints instead of upgrading EDBs with sufficient scale and progressive leadership have architected network platforms that electricity distribution infrastructure. take advantage of a permissive regulatory environment and the improving price-performance of As well as these technical impacts, how DER will be accommodated by regulation remains an DERs to deliver a modicum of choice to customers. But for smaller EDBs and those with important unanswered question. shareholders with a short-term focus on cost, little has changed for the customer since the 2010s.

The IEA 2030 Energy Policy review of New Zealand bemoaned the lack of technical standardisation which has led to a heterogenous, non-optimised demand ecology with limited 4.3.3 Scenarios interoperability. For strategy purposes Unison uses scenarios to balance the opportunities available from Survival of the Fittest megatrends tempered against its business risks. The opportunities and attendant risks A world where customers demanded affordability, choice, and environmental sustainability in generally fall under two broad categories, rate of trend development (Incrementalism or energy services, and the industry has responded. Successful interventions by both the Metamorphosis) and ability to manage change (Master or Marionette). Commerce Commission and Electricity Authority in the early 2020s clarified the scope of roles of the various participants in the electricity supply chain, including providing for EDBs as facilitator of technology in addition to their central role as DSO and platform provider.

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Within this framework, industry participants have been able to collaborate productively and have defined world-leading technical standards for interoperability between the growing number and variety of market participants. These enabling structures result in electricity infrastructure and markets that deliver for customers through unprecedented levels of innovation and competition – in such an environment only the fittest can survive.

Red Tape A world in which access to affordable, reliable electricity is a basic right guaranteed by the Government. This resulted in sweeping regulatory reform during the early 2020s, and since that time EDBs have been slowly stifled by ring-fencing legislation restricting them to providing a basic distribution service – and nothing more. Tightening price-quality regulation has made it increasingly difficult for EDBs to recover their cost of capital.

The inability of EDBs to facilitate technology uptake and support the emergence of new markets has led to a simplistic and uncompetitive demand-side ecology, leaving customers underserved and dissatisfied. The exception to this is in parts of Auckland, where the size of the market has meant that some innovative new entrants are offering services that deliver genuine choice. This has given regulators confidence that their approach is working but has only served to deepen the dissatisfaction of most customers unable to access these services.

Rock and Hard Place Figure 4-8: Expected A world in which the Government establishes a single nationwide distribution system operator (DSO) to coordinate the increasingly complex demand ecology created by progressive energy The uptake levels have been incorporated into a simulation tool to identify future network policy, the decarbonisation agenda and the improving price-performance of DER. EDBs remain constraints in 2050. See Figure 4-9 below. responsible for asset management planning however operation of the assets now falls squarely outside their remit.

In this world EDBs are caught between a rock and a hard place. On one side is the centralised DSO with its exacting standards – right down to the point of connection. On the other is the increasingly demanding and engaged customer whose experience is falling short of the lofty expectations set by the Government and its agencies.

4.3.4 Key Factors Affecting the Future Network To start forming a view of potential future network constraints under each of the four scenarios, Laissez-faire Survival of the fittest Unison has developed a view on the potential impact of DER and EVs, with the likely uptake highlighted in Figure 4-8 below.

Red Tape Rock and Hard Place

Figure 4-9: Portion of Unison’s network under various scenarios

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expensive to install in a rush. The following list of proposed architecture change projects are useful for a range high to medium risk demand scenarios and are listed in priority order. 4.3.5 Future Network Design Considerations System Architecture is not just the configuration of a network's physical components, it also includes their functional organisation and operation. The future will not be determined by Name Description Priority Unison, however the System Architecture is Unison to manage and is the most effective tool to prepare for the future. Improved Designing transformer and conductor current carrying capacity to be Capacity sufficient for all peak demand scenarios. Includes a clear definition of ratings 1 It currently takes the form of network design standards, decision support tools, approved Management applied. Also useful for reverse power scenarios. equipment, operating processes and procedures, and performance targets.

Three approaches are described below. A comprehensive approach to voltage management suitable for both peak Improved demand and reverse power scenarios. Using the following technologies; ZS Voltage tap settings, Load drop compensation, 11kV voltage regulator, 400V 2 Approach Advantages Disadvantages Management regulation, manual tap changers. Utilising the strengths and niches of each technology. This approach assumes that the current system architecture is Low risk and effort in the short best. It also leaves any response Network Rationalise the network by consolidating 400V networks and determining Do nothing and wait 3 term. to the last minute when your Rationalisation optimal quantity of switch assets. Useful under any scenario. options will be limited and expensive. Reduce effect of increase in peak demand by implementing price signals or Demand Side active peak lopping techniques. Includes the use of batteries for discharge 4 At risk of herd mentality. If the Management peak management. Pick one future and create Simple process and sets a tangible future does not eventuate there architecture to suit goal. will be asset redundancy and Advanced 400V inefficiency. Use of 400V circuit breakers to improve reliability and monitoring capability. 5 Protection

Avoids herd mentality a by taking a Use of permanently interconnected 11kV and 400V networks to leverage Design architecture that risk-based approach to the future. This approach requires more Enmeshed demand diversity and voltage support. Appropriately designed this could also 6 works well in many potential Reduces risk of inefficient effort up front and requires Networks futures investment. Sets clear direction for impartial critical thinking. improve reliability. architecture. Alternative Explore increasing the distribution voltage to allow for greater power capacity Distribution 7 Table 4-18: Approaches to changing system architecture and longer circuits. Voltages

Unison’s preference is to design architecture that works well in many potential futures. Micro Grids Use of generation and energy storage to create self-sufficient communities. 8 This approach creates a system that is resilient to more than one future, is also efficient and performs well under the current environment. To be sure that any proposed change will have Table 4-19: List of potential architecture changes ranked in order of priority positive implications the following questions are asked.

1. Power quality: Is it going to meet reliability and power quality expectations? 2. Health and safety: Is it inherently safer? The future is inherently unknowable and international megatrends are providing some guidance 3. Lifecycle cost: What is the lifecycle cost? on how technology trends might influence our customers’ behaviours. Scenario work further 4. Transition cost: What is the necessary transition period and what will this add to the cost? enables Unison to narrow down an array of future worlds to start preparing the business to meet these challenges. Some investment risks will need to be taken to ensure we meet These questions are answered using established modelling and analysis techniques. customers’ expectations, irrespective of what the future looks like, but it is important that we are When deciding on appropriate changes often simple or inexpensive options can solve a large proactive, establish strong partnerships and invest wisely so that we can embark on a least proportion of issues, with the remainder requiring much more effort. This is often enough to regrets path towards a changing energy landscape. minimise but not eliminate risk. It is also important to recognise that many solutions can be installed in stages. Prerequisites to some designs may be inexpensive to install in advance but

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• Unison will comply with legislation and regulatory requirements regarding DG connection and application on its electricity distribution network. 4.4 Network Development Planning Assumptions Unison recognises the value of DG in a number of ways and encourages the development of Unison’s network development planning assumptions are informed by the macro-environmental DG where it will provide real benefits to both the generator and Unison. However, Unison also assumptions detailed in Section 4.4. Network planning assumptions are: recognises that DG can have undesirable effects on the network. Any new DG is modelled and analysed to ensure key policies in the connection documents are met. • potential impact of uncertainties from distributed energy resources and technologies, and • expected level of customer demand in the future.

New Technology Initiatives Unison has recognised that a range of new and emerging technologies have the potential to Potential Impact of Uncertainties impact how electricity is delivered to and used by consumers. These technologies include Potential impacts of distributed generation resources and disruptive technologies are well distributed generation and solar PV in particular, energy storage, electric vehicles and home recognised by EDBs in New Zealand and overseas. Distributed generation resources and energy management systems. The uptake and integration of these technologies has technologies such as solar PV, energy storage and electric vehicles could have a substantial implications for asset management planning, with the potential for enhancing efficiency and impact on the network. performance. However, an unmanaged or unanticipated uptake could also result in inefficient investments by Unison as well as consumers. Unison, supported by its Management services Unison anticipates the material uptake within its network footprint will only occur beyond the provider, is building an understanding of the impact this range of technologies will have on the planning period. As technologies advance, the improving economics of distributed generation distribution system by carrying out analysis, scenario development, and where opportunities are resources and technologies will facilitate load reduction and customer defection, as well as identified, targeted trials. These trials focus on the potential value for Unison and its customers, changing the customer demand profile. Unison is continuing to keep an active watch on the that are available from deploying distributed generation and energy storage, both as an possible impacts of such developments by investigating the technicalities and likely impacts, alternative solution for supplying customers on low density lines (so-called ‘uneconomic’ lines), and exploring opportunities from both the network and the customer perspectives. Supporting and as a tool to offset periodic peaks on rural feeders affected by variable irrigation loads, with policy for distributed generation and the initiative on disruptive technologies are discussed the objective of maintaining voltage and deferring investment. below.

4.4.3.1 Technology Trials Distributed Generation Unison commenced the Interplay project in 2012/13 to build an understanding of the challenges While the uptake of distributed generation (DG) resources is uncertain, the connection of and opportunities of solar PV and residential battery storage technologies. Unison has since currently available and viable technologies must be well-accommodated on the network. Unison installed a commercial scale solar PV and battery system at its Hawke’s Bay head office, and continues to support the objectives of customers wishing to utilise DG by ensuring any potential residential-scale solar PV and battery systems at a new subdivision in Hastings. Key learnings detrimental effects are prevented or mitigated. The regulations categorise DG into two from the trial installations include: categories – ‘10kW or less’, and ‘above 10kW’. There are different processes and requirements • for each category. The Distributed Generation Policy, process information, and application form figures were established for solar PV generation output limit (to roof space area), is available on Unison’s website www.unison.co.nz. The key principles of Unison’s distributed operating profile, financial costs and typical buy back rate. The information was generation policy are: consolidated and presented as a web-based solar calculator to assist customers in making a more informed decision on installing a solar PV system, and • DG can be connected to Unison’s electricity distribution network on fair and equitable • current battery management systems are designed to maximise benefit to the customer terms, which do not discriminate between different DG schemes. and do not consider network-level benefits from using battery storage at peak-demand • Unison will make the terms under which DG can be connected and operated within its times. Different battery management options are being explored to maximise benefits to electricity distribution network as clear and straightforward as possible and will progress both customers and the network. all applications to connect DG to its electricity distribution network as quickly as possible. The focus of the Interplay Project is moving from understanding the technology to home energy management. The key items for investigation will be ways to improve energy efficiency and • Technical and safety standards for the DG connection and operation on Unison’s move energy usage away from peak times, to benefit the network while maintaining a positive electricity distribution network will be based on best practice, and will aim to meet the customer experience. needs and protect the interests of DG schemes, other customers and Unison, and

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Another long-term initiative Unison is investigating in the impact of disruptive technologies is • customers receive compliant voltage (avoiding both over and under voltage). low voltage (400V) voltage regulation. Solar PV is expected to impact voltages across the 400V With the central objective of striking an optimal balance between risk, performance and value. network at higher penetration levels, so Unison is investigating options for dynamic voltage management across this network. The subdivision mentioned above has been reticulated using The Network Development Planning process is repeated twice a year and incorporates a distribution transformer equipped with on-line voltage monitoring and regulation equipment. improvement measures to ensure the best possible balance is achieved. The process is reviewed regularly, and possible improvements identified, scoped and developed.

The diagram below, Figure 4-10 outlines the key elements of Network Development Planning. This section will be structured in line with this diagram. 4.4.3.2 Advanced Network Modelling

Due to the uncertainty around disruptive technologies uptake rates, Unison needs to build a NETWORK DEVELOPMENT PLANNING OVERVIEW better understanding of what will happen to the network if different scenarios occur. The 400V network is the primary focus area, as the points of connection for these disruptive technologies Constraint Forecasting Solution are at customer premises. Demand Non-network Development Scenarios Solutions An advanced network modelling project has recently been completed to determine the material level of disruptive technologies using an approximation approach, and secondly to develop a Run Constraint Work proposals Constraints Yes Constraint Risk Solution Network detailed 400V network model for uptake scenarios analysis. The modelling work leverages off Forecast for Asset issued to Asset Identified? Profile Development Development Plan similar work by the Green Grid Working Group. It will allow analysis of different solar PV and System Management Plan

battery storage uptake scenarios to establish details of the potential impact on the low voltage No network. The new modelling system has been incorporated into Unison’s existing network model enabling better oversight of network behaviour at the customer’s point of connection. Figure 4-10: Overview of Network Development Planning Process This model has been used in identifying new network constraints as well as developing improved solutions for constraints identified using the precious model.

Constraint Forecasting (CF) is an engineering framework for:

• estimating the timing of one or more constraints arising in the asset, and • quantifying the impact of the constraint in financial terms. Expected Level of Customer Demand The resulting risk profile supports the Network Planning Team to develop appropriate project Unison utilises a tool developed in-house, the Load Forecast Tool (LFT), to model the expected proposals to mitigate risks identified. customer load on the network. This tool is described in detail in Section 4.5.1.1 (Demand Analysis). Solution Development (SD) is the process for addressing any identified constraints to ensure the network can meet its expected requirements. The process includes:

• verification of the constraint • Root Cause Analysis, and • 4.5 Network Development Planning Process the identification, selection and costing of a suitable solution. Network Development Planning (NDP) is an important part of Unison’s Asset Management System.

The purpose of Network Development Planning is to ensure that Unison’s Asset Management Constraint Forecasting Objectives are achieved on an ongoing basis by: Constraint Forecasting involves the development and application of a network model that • identifying risks in the network associated with changes in demand and how customers defines the capabilities of assets and asset systems, catering to the complexities inherent in a utilise electricity, and network with meshed configurations. The model is tested against a range of future demand • proposing projects to address these risks. scenarios. So that: Power flow modelling is undertaken in DigSilent Power Factory, a software package that • customer demand at peak periods is met without compromising asset integrity (i.e. supports electricity load flow and contingency analysis. The results of the power flow modelling thermal overload), and provide both the timing and magnitude of potential constraints. Each constraint is assessed in

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terms of its likelihood (timing) and consequence to form a holistic risk profile on the issue. This Constraint Forecasting Input Categories risk profile can then be used to justify investment. The key output of CF is a risk profile of all network development constraints, enabling the Constraint Forecasting (CF) is used in the Network Development Team on an ongoing basis to Network Planning Team to prioritise the development of solutions to resolve these constraints. manage risk in the Asset Portfolio. It is also available to be used for ad-hoc requests, e.g. The four core elements of network planning inputs are: analysing the impact of particular types of technology uptake. The CF process is complete when: • Network Overview – the topology and characteristics of the networks in Hawke’s Bay, Taupo and Rotorua regions • constraints on a specific asset system have been identified • Demand Analysis – the collective electricity demands that customers are expected • the risks associated with the constraints are quantified, and place on the networks • the expected timing is confirmed. • Capacity – the amount of load that the system can deliver at all relevant points on the Figure 4-11 below outlines the key elements of Constraint Forecasting. network, and • System Impedance – the effective resistance to electricity flow between source and load. Constraint Forecasting

Demand Powerflow Forecast Constraint Risk Scenarios Modelling Constraints Profile 4.5.1.1 Demand Analysis

Unison’s Load Forecast Tool (LFT) is used to the calculate the expected demand over the planning period under various scenarios. The calculations are based on historic demand as well as several key economic indicators to a 20-year horizon. Projections are made for each 11kV Consequence of Network Model Failure feeder based on simplified models of the domestic, commercial and industrial sectors. These are then aggregated to zone substation and grid exit point (GXP) levels. The following diagram outlines this process at a high level. The assumptions used in the preparation of this plan and

Figure 4-11: Overview of Constraint Forecasting Process the planning framework are discussed further in Section 4.4.

The key inputs to CF are set out below.

Geographic/network Inputs Workings Outputs levels for forecast Quality Input Category Input

Historical Load Data • ICP demand Quantity • Feeder loads Maximum/ Regional Network minimum Network Model • Connection of assets Aggregate information loadings • Open points Zone substation • Asset Attribute Information and Master Impedance Gross Domestic Forecast Constraints Data • Maximum rating Product (GDP) 33kV feeders profiles Smart impact Economic Projections • GDP Impact of Smart • Population Grid 11kV feeders • Number of dwellings Ambient temperature Consequence of Failure • Financial information about assets and Area units analysis concept potential penalties

Table 4-20: Constraint Forecasting Input Categories Figure 4-12: Load Forecast Tool

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Embedded generation impact is assumed to be constant

4.5.1.2 Demand Assumptions The Taupo region has three existing large scale embedded generation sites, a hydro scheme and two geothermal plants that are connected to Unison’s 33kV network which, at full The energy future is changing, and assumptions made today will not apply tomorrow. It is generation, greatly exceeds maximum demand. These generator loads do not impact the plan acknowledged that technology uptake will change residential customer demand, either increase as they are already included in historical actual feeder loads. e.g. shift from fossil fuels to electricity, or decrease, e.g. uptake of DER. As these changes become material, Unison will incorporate them into its planning assumptions. Whilst the future Large-scale embedded generation in the Hawke’s Bay and Rotorua regions is minimal is unknowable, Unison still has an obligation to meet its stakeholder expectations for the compared to the Taupo region. Hawke’s Bay also has a small (5MW) hydro scheme connected planning period. As a result, key planning assumptions must be made, and these are detailed to Unison’s 33kV network and Rotorua has one 20MW hydro generator sharing a common below. connection with Unison at Transpower’s Rotorua GXP. These do not impact the load forecast, as they are de facto included already in historical actual feeder loads. Residential demand will be in proportion with population Developments and large customer projects are included There are conflicting drivers affecting household load. The increasing efficiency of devices (e.g. LED TVs and lights) and improved household insulation have been decreasing demand per Any substantial activity that Unison is notified of by councils, developers, and existing or new connection by approximately 0.5% per annum. However, the increasing affordability of devices large customers that is scheduled for completion within the planning period is included. From (resulting in more devices per household) and the conversion of open fires to heat pumps is experience, the loading levels provided for these projects are typically accurate, though timing also increasing demand. Overall at this stage Unison does not consider the net impact to be can vary. The projects are reviewed and updated annually by consultation with respective material. parties. The plan will be adjusted to include or exclude these projects dependent on the project staging. In the immediate future, residential load is assumed to be in proportion to population, which is represented by using independent forecasts for population and household numbers provided by Large customer developments (over 1MVA) from committed projects are currently included in New Zealand Institute for Economic Research (NZIER), using the latest available census data. the plan. Unison is also aware of the impact from potential projects, but these are excluded This data is updated every three to five years. from the plan at this stage.

Industrial and Commercial will grow in proportion with economic activity Committed projects Industrial and Commercial load is assumed to be in proportion to economic activity, which is There are currently no projects where a contract has been signed with the customer and the represented by Gross Domestic Product (GDP) as part of the independent forecasts provided projects are customer-initiated investments. by NZIER, using the latest available census data. This data is updated every three to five years. Potential projects Distributed generation impact is assumed to be constant These are projects where the customer has expressed an intention to complete development, Distributed generation (DG) is incorporated within the historical peak demand values. A small but no formal agreement is yet in place. These projects are included in the planning process to number of industrial customers have larger scale DG installed which tends to match the peak assess the possible impact, however they are not included in the ten-year plan as they will on-site demand. As these resources have limited availability they are not considered a require formal agreement to proceed and be substantially funded by the customer. substitute for capacity. Load transfer projects are included in the load forecast Small scale DG uptake per annum has been constant since 2013 and is assumed that the DG Load transfer projects impact the long-term projected peak demand for both the feeder they are impact on the peak demand in the future will be similar to that in the past and no further removed from, and the one they are added to. These changes are incorporated into the plan in adjustments are made. the year in which they are expected to be completed. This information is reviewed annually When reliable DG is connected to Unison’s network, it is considered a viable substitute for during the planning process. network capacity and is included in calculations. When actual feeder loads are measured and Demand-side management impact is assumed to be constant updated annually in the LFT, DG is captured and reviewed in terms of its reliability prior to inclusion in calculations. Additional allowance for DG is only made when significant new DG is Unison’s load control capability is currently predominantly via a legacy ripple control system, contracted to be commissioned and there is confidence in its availability. operated with several relatively old ripple injection and load control sets. Unison does not, however, own the ripple control receivers at the customers’ premises and has limited ability to Only DG with reliable energy resources and multiple units are included for planning purposes. ensure they remain fully functional. As a result, ripple control effectiveness has been slowly This is because DGs using such resources as wind, solar and hydro as their fuel source are reducing. Unison recognises the potential of demand-side management in achieving more intermittent. All of these, along with single unit generator sites, have output levels that cannot benefit. be guaranteed. For planning purposes, it is assumed that the present level of contribution and influence by demand-side load control on load forecast will be maintained.

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Constant power factor over the planning period Below are the GXP load forecasts for Unison’s network. The firm capacities shown are the ratings from Transpower. Tarukenga has a single transformer with limited security provided on Unison assumes a constant power factor of 0.95 at all points of the network where specific data the 11kV network. Owhata GXP is scheduled for a capacity upgrade in 2019 while discussions is unavailable. Unison utilises the sensors installed across its network to monitor the reactive are continuing with Transpower regarding Fernhill GXP. power flow (VAr) in its 11kV and 400V networks and reassess this assumption.

GXP Load Forecast 4.5.1.3 Load Inputs 160 140 Network 120 100 Household data, network connectivity, peak loads for the last 12 months, and installation 80 capacity are extracted from various Unison databases. This data is combined to become what 60 40

is known as the network information in the LFT and is updated annually prior to the running of Peak Load (MVA) 20 the tool. 0 Demand profiles

GDP projections and population forecasts for the next 20 years are the mid-point projection GXP provided by NZIER using the latest census data from 2013. This data is updated every three to 2017/18 2037/38 Firm Capacity five years.

GDP forecasts are further split by regions, areas and industrial types. Primary industry consists of agricultural activities and manufacturing industry includes manufacturing and construction Figure 4-13: GXP Load Forecasts activities. Both primary and manufacturing are grouped into the industrial category for LFT processing. Residential demand is calculated from population projections. The industrial, commercial and residential forecasts are combined to form the demand profile. Below are the expected zone substation loads for the Hawke’s Bay, Taupo and Rotorua regions. Unison uses higher short-term ratings and fast load transfer schemes to maintain security levels. Unison intends to use dynamic ratings to maximise the available capacities with the consequence that the rating will become variable and not a fixed value.

4.5.1.4 Demand Calculation Workings

The network information is combined with the industrial, commercial and residential profiles, based on the current proportion of each load type for the different feeders on Unison’s network, Hawke's Bay Region Zone Substation Load Forecast and the proportion of the feeder in each area unit. Installation capacity is used as a proxy for 35 30 load to determine these proportions. This results in a unique demand projection for each 11kV 25 feeder. 20 15 Zone substation demand projections are calculated by applying a diversity factor to the sum of 10

peak Load (MVA) 5 the 11kV feeder projections. Similarly, the GXP/POS demand projections are calculated by 0 applying a diversity factor to the sum of the zone substation projections. It is at this stage that large customer projects and the load transfer projects are added to produce final results.

Substation

2017/18 2037/38 Firm Capacity

4.5.1.5 Load Forecasting Outputs

The LFT forecast extends out to a 20-year horizon for each month on each 11kV feeder. The Figure 4-14: Hawke’s Bay Zone Substation Load Forecast Network Development Planning process considers the first ten-year outlook of load forecast for planning purposes and the ten-year-plus outlook for longer term trend consideration.

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Taupo Region Zone Substation Rotorua Region Zone Load Forecast Substation Load Forecast 4.5.2 Solution Development 30 40 The purpose of Solution Development (SD) is to identify and specify optimal solutions that 25 35 30 address the risks in the network. These risks are identified by the Constraint Forecasting 20 25 process for inclusion in the AMP. Solution Development commences when: 15 20 15 • 10 10 a constraint has been identified 5 5 • the risk has been quantified, and 0 Peak Load (MVA) Peak Load (MVA) 0 • the risk is sufficient that action should be taken to control it.

Solution Development involves identifying the most optimal control for the risk, considering the key asset management drivers of cost, risk and performance. The most optimal solution may Substation Substation not require direct action by Unison, but instead may involve the engagement of other parties to 2017/18 2037/38 Firm Capacity 2017/18 2037/38 Firm Capacity enable the successful resolution of the constraint.

Solution Development is completed when an appropriate solution has been identified and this Figure 4-15: Taupo Zone Substation Load Forecast Figure 4-16: Rotorua Zone Substation Load Forecast solution has been proposed as a capital project to the AMP, or work has been issued out of an OpEx provision.

Figure 4-17 outlines the key elements of Solution Development. Projects to mitigate capacity issues are discussed in Sections 4.6 to 4.8. The majority of zone substations have a double transformer arrangement. Zone substations with a single transformer arrangement are: SOLUTION DEVELOPMENT • Waipa Substation – supplying a single customer who has opted not to have an n-1 level of security Network Constraint Risk Constraint Root Cause Solution Development • Profile Verification Analysis Selection Rainbow, Tutira, Patoka, Esk, Sherenden and Maraekakaho Substations – all rural Plan single transformer sites that do not currently require additional security • Ohaaki Substation – with a back-up supply from Contact Energy’s Ohaaki power

station, and Solution Options • Bluff Hill and McCain Substations – each having a single transformer with back-up security provided by the 11kV network.

Figure 4-17: Hawke's Bay Zone Substation Load Forecast

4.5.1.6 Load Forecasting Review The key inputs to Solution Development are set out below. Unison has recently enhanced the load forecasting methodology, input, workings and output. This re-evaluated the previous load forecast methodology, identified factors with material impact on load forecasting and developed a new approach along with supporting tools and Input Category Input systems. This new system allows the potential impact from disruptive technologies to be considered under numerous scenarios in order to determine the level of risk resulting from Constraint Forecast ICP demand various levels of adoption of these technologies. Feeder loads

Network Model Connection of assets

Open points

Asset Attribute Information and Master Impedance Data Maximum rating

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Input Category Input 4.5.2.1 Solutions Toolbox Solution Options Approved equipment The available solutions in the ‘solutions toolbox’ to address the identified network constraints Rating methodologies are summarised in Table 4-22. Unison is actively exploring possible expansion of the solutions Accurate template costs toolbox using new technologies to further enhance the efficiency of the network. Initiatives resulting in solution toolbox expansion are detailed in Sections 4.8.2 and 4.8.3. Network Field Data Voltages and currents at key locations

Table 4-21: Overview of Solution Development Process Constraint Network Solution Non-network Solution

The key output of SD is the Network Development Plan. This plan represents the Network Voltage Upgrade conductor Reactive VAr compensation Development Team’s proposed work programme over the ten-year planning horizon to manage Install feeder Fast transfer scheme the risk of: Install voltage regulator Network reconfiguration • thermally overloading assets, and (existing asset) • breaching voltage compliance limits. Continuous current capacity Upgrade conductor Reactive VAr compensation While ensuring: Install feeder Fast transfer scheme • efficient deployment of capital to manage network development risks Install transformer Demand-side management • realisation of opportunities to utilise non-network solutions, to support the organisation to manage broader strategic risks of industry disruption Establish substation Real-time monitoring • the completion of work at the right time to avoid hazards, such as assets failing and Cyclic ratings (selected asset disrupting supply, and customer equipment being damaged, and classes) • clear specification and planning of required work so resources can be mobilised. Network reconfiguration (existing asset) For any given network constraint, a range of potential solutions are selected from the Solutions Toolbox. Solutions fall into the following categories: Fault current capacity Asset upgrade Decrease fault rating by: • Do nothing – a quantified risk-based approach that considers whether risk is • Substation earthing manageable using existing processes and techniques compensation, and • Network option – traditional network reinforcement approach, which typically provides a • Network technically sound long-term solution. These solutions may require greater initial reconfiguration expenditure but generally provide a high level of security and capacity, and (existing asset). • Non-network option – utilising new technology, which in some cases is only applicable in the short term. These solutions typically incur lower initial cost and provide Unison Quality of supply, e.g. dips Install feeder Ground fault neutraliser with time to plan and optimise more complex network solutions, while deferring harmonics flicker Install transformer Network reconfiguration (existing investment and mitigating risk. asset)

Engineering analysis is undertaken on the potential options to evaluate the engineering merits Behind the meter solutions in addressing the identified need. Economic analysis is completed on the selected options to Distributed generation ensure cost-effective network development. As part of the engineering analysis, network planning engineers will collaborate with asset specialists to discuss any asset renewal needs in Energy storage the vicinity of the constraint.

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Constraint Network Solution Non-network Solution Asset Standardisation

Network security Install feeder Dynamic ratings (selected asset 33kV overhead lines Standard drawings, design and construction methodologies are in place. Standard classes) materials used include concrete Busck poles and ACSR, AAC or AAAC conductor. Install transformer These are available as standard designs in Design Manager for planners’ cost Fast transfer scheme Establish substation estimates and for designers. Reactive VAr compensation Install recloser 33kV underground Standard drawings, design and construction methodologies are in place. Standard Demand-side management cables materials used include different sizes of XLPE cable. These are available as Network reconfiguration (existing standard designs in Design Manager for planners’ cost estimates and designers. asset) Power transformers Due to the value of this asset Unison tenders each one to ensure cost efficiency. Self-healing scheme

Distributed generation 33kV circuit breakers Standard drawings, design and construction methodologies are in place. The Energy storage standard outdoor circuit breaker used is an Alstom GL107 unit.

Network reliability Install feeder Network reconfiguration (existing 11kV circuit breakers Standard drawings, design and construction methodologies are in place. Standard asset) and switchboards equipment used includes Reyrolle Pacific (RPS) 11kV indoor boards and the Install recloser Cooper Nova recloser for outdoor use. Substation earthing Overhead to Underground asset compensation conversion Zone substation Due to the value and low number of new constructions of zone substations Unison Fast protection buildings and designs each one specifically for the site and the network’s technical equipment requirements. The Company is however moving to a standard layout. Ground fault neutraliser

Self-healing scheme Ripple injection plants Standard drawings, design and construction methodologies are in place. Standard equipment used is Landis+Gyr (L+G). Distributed generation

Energy storage Poles Standard drawings, design and construction methodologies are in place. Standard materials used include concrete Busck poles used across the industry for Table 4-22: Solutions Toolbox maximum cost efficiency. These are available as standard designs in Design Manager for planners’ cost estimates and for designers.

11kV and 400V lines Standard drawings, design and construction methodologies are in place. Standard materials used include Busck poles, XLPE cable, ACSR, AAC, AAAC, ABC 4.5.2.2 Network Options conductors. These are available as standard designs in Design Manager for planners’ cost estimates and for designers. Network solutions are based on a traditional network reinforcement approach and typically

provide technically sound long-term solutions. Examples are power transformer, pole and cable 11kV and 400V cable Standard drawings, design and construction methodologies are in place. Standard upgrades. To ensure traditional network solutions are designed to be as energy and material used is PVC-coated XLPE cable. These are available as standard economically efficient as possible, direct effect of heat losses and energy efficiency, voltage designs in Design Manager for planners cost estimates and for designers. and reactive power optimisation, and network configuration are considered. Standardised designs are applied to specify equipment and installation details. Where possible cost estimates Distribution Standard drawings, design and construction methodologies are in place. Standard are based on typical costings based on engineering knowledge or actual costing from transformers equipment used includes pole-mount 15-300kVA and ground-mount 30-1000kVA completed works. ETEL transformers. These are available as standard designs in Design Manager for planners’ cost estimates and for designers. Standardised Designs Where possible, Unison utilises standardised designs for assets to maximise cost efficiencies throughout the asset management lifecycle. Standardisation of design in different types of asset are summarised in Table 4-23.

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Asset Standardisation 4.5.2.4 Solution Toolbox Enhancement Initiatives Distribution switchgear Standard drawings, design and construction methodologies are in place. Standard – Air break switches, equipment used includes Cooper Nova reclosers, ENTEC RCS, Schneider ABSs Unison is continuing its proactive approach to realise significant benefits from new technologies 11kV fuses and and S&C 11kV fuses (DDOs). These are available as standard designs in Design as potential solutions to identified constraints. This enhancement initiative is to explore, reclosers/sectionalisers Manager for planners’ cost estimates and for designers. investigate and trial new demand-side response solutions to expand the non-network solutions toolbox. There are two key elements to this initiative - ripple control of hot water and off-grid Distribution switchgear Standard drawings, design and construction methodologies are in place. Standard systems. – Ground mounted equipment used is the ABB Safelink RMU. These are available as standard switches and ring main designs in Design Manager for planners’ cost estimates and for designers. Ripple Control units Unison has utilised ripple control of hot water demand as a demand-side response for many

Voltage Regulators Standard drawings, design and construction methodologies are in place. Standard years. It has historically been used primarily to manage regional peak demand. This initiative equipment used is the Cooper voltage regulator. These are available as standard will explore and trial this, and other demand-response technologies, so as to define and designs in Design Manager for planners’ cost estimates and for designers. develop Unison’s demand response philosophy, policy and strategy. Off-grid Systems Pedestals Standard drawings, design and construction methodologies are in place. Six different pedestals are available to cater for varied site and technical requirements. Unison recognises off-grid systems as a disruptive technology with the potential to reduce the Most are available as standard designs in Design Manager for planners’ cost cost of serving its remote rural customers. This is considered as a high priority opportunity due estimates and for designers. to the increasing maturity of the technology and the potential benefits from their application on the network. This initiative will explore and trial off-grid systems, medium to large scale energy Sensors Standard drawings, design and construction methodologies are in place. Many storage systems, mobile and fixed DG. Supporting management philosophy, operation and different sensors are available to cater for varied technical requirements. Most are available as standard designs in Design Manager for planners’ cost estimates and maintenance policies and strategies will also be developed. for designers.

Communications Standard equipment used includes Silver Springs mesh radio and Tait/MiMOMax UHF (rural). Mesh radio is available as standard designs in Design Manager for 4.5.2.5 Selecting Preferred Solution planners’ cost estimates and for designers.

Table 4-23: Standardisation across Assets

Process Select Preferred Solution Output

4.5.2.3 Non-network Options Cost

Unison has recognised the significant benefits from non-network solutions by utilising new Evaluate in Preferred solution technologies to increase the overall network efficiencies and effectiveness. A number of legacy Economic terms of risk, • Technical analysis of Prioritise network and monitoring (SCADA) applications have been replaced with the Advanced performance details options Risk/Benefit projects Distribution Management System (ADMS) operating on a ubiquitous communications platform. and value • Cost • Lifespan of solution • Timeframe This is a key enabler to realise the full benefits from non-network solutions implemented to date • Extent of constraint is addressed and into the future.

Non-network solutions utilise new technologies to provide cost-effective alternatives to traditional network solutions. Technical aspects include reduction in system losses, no detrimental impact on fault level, improvement in asset utilisation and in voltage profile. Where Figure 4-18: Select Preferred Solution Process Stage possible cost estimates are based on typical costing based on engineering knowledge or actual costing from completed works. Network planners apply professional engineering judgment to the identified set of options, and the quantified costs and benefits to select the preferred solution. This centres on the objective to strike an optimal balance of risk, performance and value to ensure the cost-effective

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selection of network development solutions. A list of potential projects provides a consolidated 2019/20 Non-Material set of preferred solutions to address the identified constraints. Project No. Project Description Category Cost Section

10006 Install 11kV Bus Section relay at Church Quality of Supply $35k 4.6.1.2 Road Substation 4.6 Hawke’s Bay Network Development Projects 10008 Powdrells Road Switching Station - Replace Quality of Supply $200k 4.6.1.2 Projects greater than $250k are considered material and will be discussed to a greater level of Feeder Protection Relays detail. For completeness all projects (material and non-material) planned for 2019/20 and all material projects proposed for 2020/21-2028/29 have been included. 10051 Reliability, Safety and Environment Reliability, Safety and $220k 4.6.1.2 Provisional Sum Environment Customer-driven projects where a contract is not in place are not included.

Details of projects for the ten-year planning period are outlined below. 10087 Replace ABS 1576 with an ENTEC 25.8kV Quality of Supply $62k 4.6.1.2 ECO Load Break Switch - Raupare Feeder

10111 Optimisation of the SSN Network Quality of Supply $120k 4.6.1.2 2019/20 Material 10113 Redundancy at Te Waka communications Quality of Supply $20k 4.6.1.2 Project No. Project Description Category Cost Section sites

No material projects scheduled for this Table 4-25: Non-Material Project for 2019/20 period

Table 4-24: Material Projects for 2019/20 2020/21 to 2023/24 Material Projects

2019/20 Non-Material Project No. Project Description Category Cost Section

Project No. Project Description Category Cost Section 1022 Karanema Feeder Cable Upgrade Quality of Supply $380k 4.6.2

1012 Automate ABS 1969 and ABS 7584 - Bridge Quality of Supply $104k 4.6.1.2 Pa Feeder 1023 Heathcote Feeder Contingency Support Quality of Supply $415k 4.6.2

1013 Install Re-closers at the Urban/Rural Quality of Supply $107k 4.6.1.2 1028 Te Aute Feeder Contingency Support Quality of Supply $325k 4.6.2 boundaries of the feeder - Brookvale Feeder 1029 Thames Feeder Contingency Support Quality of Supply $575k 4.6.2 1014 Replace ABS 740 with Nova 15 Re-closer - Quality of Supply $67k 4.6.1.2 Omarunui Feeder Apley Road 1032 Albert Feeder Capacity Upgrade Quality of Supply $300k 4.6.2

1015 Security of Supply Initiatives - Tangoio Quality of Supply $107k 4.6.1.2 1034 Poukawa Feeder Security of Supply Upgrade Quality of Supply $320k 4.6.2 Feeder 1036 Currie Feeder Contingency Support Quality of Supply $275k 4.6.2 1016 Replace OS 2626/2627/2628 with Automated Quality of Supply $102k 4.6.1.2 CCC RMU - Karanema Feeder 1038 Burness Feeder Capacity Upgrade Quality of Supply $915k 4.6.2

1085 Power Quality Provisional Sum Quality of Supply $40k 4.6.1.2 1048 Whakatu to Arataki 33kV Cable Capacity Other Reliability, Safety and $1.69M 4.6.2 Upgrade Environment 2052 Marewa ZS upgrade 11kV incomer cables System Growth $170k 4.6.1.2 1050 St Andrews Feeder Voltage Support Quality of Supply $295k 4.6.2 10005 Install 33kV Bus Section relay at Hastings Quality of Supply $35k 4.6.1.2 Substation 1051 Crownthorpe Feeder Voltage Support Quality of Supply $295k 4.6.2

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2020/21 to 2023/24 Material Projects 2024/25 to 2028/29 Material Projects

Project No. Project Description Category Cost Section Project No. Project Description Category Cost Section Environment

1052 Twyford Feeder Voltage Support Quality of Supply $296k 4.6.2 1060 Campbell Feeder Capacity Upgrade Quality of Supply $400k 4.6.3

1062 Battery Feeder Capacity Upgrade Quality of Supply $280k 4.6.2 1066 Clive Feeder Capacity Upgrade Quality of Supply $750k 4.6.3

1064 Dalton Feeder Capacity Upgrade Quality of Supply $695k 4.6.2 1067 Korokipo Feeder Capacity Upgrade System Growth $236k 4.6.3

1069 Greenmeadows Feeder Capacity Upgrade - Quality of Supply $615k 4.6.2 1068 Gilligans 33kV Feeder Capacity and Security Quality of Supply $604k 4.6.3 Stage 1 Upgrades

1070 Twyford Feeder Capacity Upgrade System Growth $405k 4.6.2 1072 Dickens Feeder Switch Automation Quality of Supply $232k 4.6.3

074 Mission Feeder Capacity Upgrade Quality of Supply $275k 4.6.2 1073 Dalton Feeder Switch Automation Quality of Supply $232k 4.6.3

1077 Te Mata Feeder Capacity Upgrade - Stage 1 Quality of Supply $506k 4.6.2 1075 Terrace Feeder Switch Automation Quality of Supply $232k 4.6.3

1083 Otamauri Feeder Voltage Support Quality of Supply $280k 4.6.2 1076 Palmbrook Feeder Capacity Upgrade Quality of Supply $402k 4.6.3

1089 Tamatea – Smiths Road Intertrip Protection Quality of Supply $298k 4.6.2 1078 Te Mata Feeder Capacity Upgrade – Stage 2 Quality of Supply $254k 4.6.3 Upgrade 1082 Mangatahi Feeder Voltage Support Quality of Supply $295k 4.6.3 1121 Poukawa Feeder Capacity Upgrade Quality of Supply $950k 4.6.2 1106 Chatham Feeder Capacity Upgrade Quality of Supply $500k 4.6.3 10014 Irongate – Camberley 33kV Interconnection Quality of Supply $3M 4.6.2 Tie 1107 Herrick Feeder Airport Interconnection Quality of Supply $251k 4.6.3

10019 Whirinaki GXP Interconnection Quality of Supply $1.5M 4.6.2 1113 Dickens Feeder Capacity Upgrade System Growth $695k 4.6.3

10058 11kV Cable Upgrade - Chatham/Flaxmere Quality of Supply $500k 4.6.2 1128 Ridgemount Feeder Voltage Support System Growth $295k 4.6.3 Ave 1134 Pohokura Feeder Voltage Support System Growth $295k 4.6.3 10069 Security of Supply improvements – Bridge Pa Quality of Supply $250k 4.6.2 Feeder 1135 Puketitiri Feeder Voltage Support System Growth $295k 4.6.3

10120 Security of Supply improvements – Quality of Supply $450k 4.6.2 1136 Park Island Feeder Voltage Support System Growth $300k 4.6.3 Mangatahi Feeder 1139 Parallel connection on Dunlop Feeder Quality of Supply $255k 4.6.3 Table 4-26: Non-Material Project for 2019/20 1141 Riverslea Feeder Interconnection Quality of Supply $500k 4.6.3

2024/25 to 2028/29 Material Projects 10017 Springfield Substation 11kV Feeder Relay Other Reliability, Safety and $400k 4.6.3 Upgrades Environment Project No. Project Description Category Cost Section 10042 Church Road Double 33kV Line Separation Quality of Supply $600k 4.6.3 1037 Nuffield Feeder Contingency Support Quality of Supply $650k 4.6.3 10232 11kV cable upgrade, Karanema Feeder Quality of Supply $400k 4.6.3 1040 Roys Hill Feeder Voltage Support Quality of Supply $295k 4.6.3 Table 4-27: Hawke's Bay Projects Summary 1059 Arataki to Havelock 33kV Capacity Upgrade Other Reliability, Safety and $1.69M 4.6.3

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Project No. Title Constraint Description Options Cost Preferred Solution

Projects for 2019/20 1016 Replace OS Existing Havelock Upgrade lines $102k Automate additional 2626/2627/2628 with North/Arataki fast transfer switches Projects greater than $250,000 are discussed in more detail. Automate Automated CCC scheme has reached its additional 4.6.1.1 Material projects for 2019/20 RMU - Karanema maximum load limit using switches There are no projects greater than $250,000 planned for 2019/20. Feeder existing switching arrangement. Do nothing

1085 Power Quality Provisional sum for Reconfigure $40k Solutions will Provisional Sum improvements to power network. depend on the issue quality identified by customer identified. Adjust voltage 4.6.1.2 Non-material projects for 2019/20 feedback. settings.

Increase conductor size. Project No. Title Constraint Description Options Cost Preferred Solution Voltage 1012 Automate ABS 1969 Managaroa Prison must Automated $104k Automated regulator. and ABS 7584 - be manually switched to Switches Switches 2052 Marewa ZS Upgrade Existing cables limit Transfer load $170k Replace cables Bridge Pa Feeder an adjacent supply in the Duplicate supply 11kV incomer cables capability of existing 20MVA event of an outage on its Replace cables Do nothing transformers limiting N-1 primary supply. capacity of substation to Reconfigure 13.7MVA. Maximum demand cables 1013 Install Reclosers at Large numbers of Reconfigure $107k Install Reclosers of site is now 14.3MVA. Do nothing the Urban/Rural residential customers in system boundaries of the 10005 Install 33kV Bus There is no bus section Fast Transfer $35k Install relay Havelock North are Install Reclosers Feeder - Brookvale affected by faults in the Section relay at protection at Hastings Scheme Feeder Install separate Hastings Substation Substation increasing the surrounding rural area. Install relay supplies risk of loss of supply to the Do nothing Do nothing entire site. 10006 Install 11kV Bus There is no bus section Fast Transfer $35k Install relay 1014 Replace ABS 740 Faults on remote section of Reconfigure $67k Install Reclosers Section relay at protection at Church Road Scheme with Nova 15 Re- feeder affect large number of system Church Road Substation increasing the closer - Omarunui customers and Omaranui Install relay Install Reclosers Substation risk of loss of supply to the Feeder Apley Road Landfill generation site. entire site. Do nothing Install separate supplies 10008 Powdrells Road Risk of tripping multiple Install line $200k Install line Switching Station - circuits if a fault occurs when differential differential Do nothing Replace Feeder high levels of distributed protection protection Protection Relays. generation are present. 1015 Security of Supply Existing feeder has large Install Reclosers $107k Install Change grading Initiatives - Tangoio areas without automatic Sectionalisers of existing relays Install Feeder sectionalisation or Sectionalisers Install additional Intertrip/constrai restoration capability fusing n off generation affecting fault location, Install additional isolation and restoration. fusing Do nothing Install separate 10051 Reliability, Safety and Provisional sum for Additional $220k Solutions will supplies Environment improvements to Reliability, switchgear. depend on the issue Provisional Sum Safety and Environment identified. Do nothing System identified in post event reconfiguration. reports.

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Project No. Title Constraint Description Options Cost Preferred Solution Project No. Title Constraint Description Options Cost Solution

10087 Replace manual ABS Overloaded section of cable Upgrade cable $62k Automate 1022 Karanema There is expected to be Network - Upgrade $0- Cyclic feeder rating will be 1576 with a remote in Chatham Feeder when switchgear to Fast Transfer Feeder Cable insufficient spare capacity in cable. $380k investigated and implemented operable Switch - supplying Raupare Feeder enable a fast Scheme Upgrade the circuit to backstop St if it resolves the constraint. Raupare Feeder during a contingency event. transfer scheme Network - Deploy Andrews, Te Mata, Reconfigure 11kV fast transfer Battery storage is not yet Brookvale, Ada and system scheme. economic for this constraint Palmbrook Feeders during and nearby feeders do not Do nothing peak loads. Non-network - have capacity for additional Cyclic feeder 10111 Optimisation of the Remote operation of field Improve $120k Improve coverage load required to implement a rating. SSN Network devices reliant on a single coverage of of SSN fast transfer scheme. communications path SSN communications Non-network - resulting in delayed communications Battery restoration of supply. Technology. Duplicate existing Do nothing. communications paths 1023 Heathcote There is expected to be Preferred: Network $0- Lowest cost option that Feeder insufficient spare capacity in - Upgrade lines. $415k resolves the capacity and Do nothing Contingency the circuit to backstop security constraints. Network - Deploy Support Raureka and St Andrews 10113 Contingency at Te Four rural substations have Build $20k Build contingency 11kV fast transfer Battery storage is not yet Feeders during peak loads. Waka only a single contingency capability in existing scheme. economic for this constraint communications sites communications path. capability in system and nearby feeders do not Non-network - existing system have capacity for additional Dynamic feeder load required to implement a Add alternative rating. communications fast transfer scheme. path Non-network - Battery Do nothing Technology.

Table 4-28: Hawke's Bay Non-material Projects for 2019-2020 Do nothing.

1028 Te Aute 233 customers without Preferred: Network $0- Installing and alternative Feeder contingency support - Install alternative $325k supply resolves the issue for Lipscombe Crescent area supply. the least cost. Projects for 2020/21 to 2023/24 beyond ABS 615. Non-Network - Distributed generation and Projects from 2020/21 to 2023/24 are being investigated in more detail, and have preferred Distributed batteries will cost more and solutions identified. Projects for later in the period are still in initial stages and the options have Generation. require space that will be difficult to obtain in this urban not been investigated in detail to enable selection of a preferred solution. A range of possible Non-network - area. costs is provided. Battery Technology. Doing nothing will result in significant SAIDI impact over Do nothing. time.

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Project No. Title Constraint Description Options Cost Solution Project No. Title Constraint Description Options Cost Solution

1029 Thames No contingency paralleling Preferred: Network $0- Installing and alternative 1036 Currie Feeder 255 customers without Preferred: Network $0- Installing and alternative Feeder link for 11kV Spur beyond - Install alternative $575k supply resolves the issue for contingency support Trinity - Install alternative $275k supply resolves the issue for ABS 706 in Mersey Street supply. the least cost. Crescent area beyond ABS supply the least cost. industrial area. 606. Non-Network - Distributed generation and Non-Network - Distributed generation and Distributed batteries will cost more and Distributed batteries will cost more and Generation. require space that will be Generation. require space that will be difficult to obtain in this difficult to obtain in this urban Non-network - Non-network - industrial area. area. Battery Battery Technology. Technology. Doing nothing will result in significant SAIDI impact over Do nothing. Do nothing. time.

1032 Albert Feeder Capacity constraint in Preferred: Network $0- Upgrading the cable will 1038 Capacity There is expected to be Network - Upgrade $0- Cyclic feeder rating will be contingency event between - Upgrade cable. $300k completely resolve the constraint on insufficient spare capacity in cable. $760k investigated and implemented switches 6989 and 3023. constraint for the lowest cost. Network - Deploy Burness the circuit to backstop if it resolves the constraint. Network - Deploy 11kV fast transfer Dynamic rating or a fast Feeder adjacent feeders during 11kV fast transfer Battery storage is not yet scheme. transfer scheme would only be peak loads. scheme. economic for this constraint useable under certain load Non-network - and nearby feeders do not conditions. Dynamic ratings Non-network - Dynamic feeder have capacity for additional would also require the Dynamic feeder rating. load required to implement a installation and maintenance rating. fast transfer scheme. of monitoring equipment and Non-network - the transfer scheme would Battery require the installation and Technology. maintenance of automated switchgear. Do nothing.

1034 Poukawa Existing protection and Preferred: Network $0- Automation of switchgear will 1048 Capacity Predicted constraint feeding Network - Upgrade $0- Feeder sectionalising arrangements - Automation of $320k increase operational flexibility constraint, along the Whakatu to cable. $1.7M result in sub optimal switchgear. and reduce outage times. It Arataki 33kV, Arataki 33kV during Network - Deploy network performance will also provide more Whakatu to contingency/maintenance. Non-Network - 11kV fast transfer initiatives. information to the Network Arataki Cable The underground section System scheme. Operations Centre enabling Section will not be capable of reconfiguration. improved decision making. carrying load for Havelock Non-network - Do nothing. and Arataki Substations. Dynamic feeder System reconfiguration will rating. result in the problems remaining unresolved and just Non-network - transferred to other Battery technology. customers. Do nothing. Doing nothing will result in significant SAIDI impact over time.

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Project No. Title Constraint Description Options Cost Solution Project No. Title Constraint Description Options Cost Solution

1050 St Andrews Insufficient voltage when Network -Tap $0- Tap position changes may 1064 Capacity There is expected to be Network - Establish $300- Cyclic feeder rating will be Feeder supporting other feeders position changes. $295k result in over voltages under constraint on insufficient spare capacity in a new 11kV feeder $695k investigated and implemented during peak demand. certain configurations. front-end of the circuit to backstop out of Faraday if it resolves the constraint. Network - Voltage Dalton Feeder adjacent feeders during Zone Substation. Regulator. Installing a voltage regulator Installing a new feeder is the peak loads. will be conditional on a Network - Upgrade costliest solution but it does Network - suitable location. cable section. provide the biggest gain in Reconductor. capacity vs cost. Reconductoring will have a Network - Create Do nothing. limited benefit as the existing interconnection Upgrading cable sections may line is already a good size. between Dalton prove cost effective if able to and adjacent be timed with renewal and 1051 Crownthorpe Voltage support for Network -Tap $0- Tap position changes may feeders. replacement work. Feeder Crownthorpe Feeder and position changes. $295k result in over voltages under Non-Network - Fast Creating additional Contingency support for certain configurations. Network - Voltage load transfer. interconnections or a fast Mangatahi Feeder. Regulator. Installing a voltage regulator transfer scheme will provide Non-network - will be conditional on a limited gains as the adjacent Network - Battery technology. suitable location. feeders with then be Reconductor. Do nothing. constrained. Reconductoring will have a Do nothing. limited benefit as the existing Battery storage is not yet line is already a good size. economic for this constraint and nearby feeders do not 1052 Voltage Data collection from DTM or Network - Upgrade $0- have capacity for additional constraint Power Sense units installed sections of each $296k load required to implement a 11kV feeder may identify that Twyford feeder circuit. fast transfer scheme. Twyford Feeder is in breach of Network - Install Unison Quality of Supply 1069 Security There is expected to be Network - Upgrade $0- Upgrading the cable will 11kV voltage criteria (under voltage constraint on insufficient spare capacity in cable. $750k completely resolve the regulators. during backstop). Green- the circuit to backstop constraint for the lowest cost. Network - Deploy Network - Install meadows Avondale, Mission and 11kV fast transfer Dynamic rating or a fast capacitor banks. Feeder Burness Feeders during scheme. transfer scheme would only be peak loads. Non-network - useable under certain load Non-network - Encourage DG. conditions. Dynamic ratings Cyclic feeder would also require the Do nothing. rating. installation and maintenance Non-network - 1062 Capacity There is expected to be Network - Upgrade $0- Upgrading the cable will of monitoring equipment and Battery technology. constraint on insufficient spare capacity in cable. $350k completely resolve the the transfer scheme would require the installation and Battery Feeder the circuit to backstop constraint for the lowest cost. Do nothing. Network - Deploy adjacent feeders during maintenance of automated 11kV fast transfer Dynamic rating or a fast peak loads. switchgear. scheme. transfer scheme would only be useable under certain load Non-network - conditions. Dynamic ratings Dynamic feeder would also require the rating. installation and maintenance Non-network - of monitoring equipment and Battery the transfer scheme would Technology. require the installation and maintenance of automated Do nothing. switchgear.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 44-68-68 SECTION SECTION 4 NETWORK4 NETWORK DEVELOPMENT DEVELOPMENT PLANS PLANS SECTION 4SECTION NETWORK 4 NETWORK DEVELOPMENT DEVELOPMENT PLANSPLANS 4 - 694-69 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKS LIMITEDUNISON NETWORKS | REGULATORY LIMITED ASSET| REGULATORY MANAGEMENT ASSET MANAGEMENT PLAN UPDATE PLAN UPDATE2019-29 2019-29

Project No. Title Constraint Description Options Cost Solution Project No. Title Constraint Description Options Cost Solution

1070 Split Twyford Capacity constraint for Network: new $0- 1083 Otamauri There is expected to be Network - Upgrade $0- Reconductoring will require a Feeder predicted load growth in feeder. $405k Feeder insufficient voltage when lines. $280k significant length of line industrial area. Will require backstopping adjacent replacement often across Network: Network - Install new dedicated feeder or feeders during peak loads. private land. reconfigure voltage regulator. new cable and movement of network. Installing a voltage regulator open points. Non-Network - will be conditional on a Non-network: load Distributed suitable location. management. Generation. Distributed generation and Non-network - 1074 Capacity There is expected to be Network - Upgrade $0- Upgrading the cable will batteries will cost more than a Battery constraint on insufficient spare capacity in cable. $275k completely resolve the voltage regulator and require Technology. Mission the circuit to backstop constraint for the lowest cost. a suitable site. Network - Deploy Feeder adjacent feeders during Do nothing. 11kV fast transfer Dynamic rating or a fast peak loads. scheme. transfer scheme would only be 1089 Tamatea – There is a risk of islanding Network - Intertrip $0- Install intertrip scheme with useable under certain load Non-network - Smiths Road Toronui generation and scheme. $298k directional protection to conditions. Dynamic ratings Dynamic feeder Intertrip Tutira/Esk in the event of a ensure area is isolated in the would also require the Do nothing. rating. fault on the Esk 33kV line event of a fault. installation and maintenance creating unstable voltages Non-network - of monitoring equipment and and damaging customer Battery the transfer scheme would equipment. Technology. require the installation and maintenance of automated Do nothing. 1121 Capacity There is expected to be Network - Upgrade $0- Lowest cost option that switchgear. constraint on insufficient spare capacity in conductor. $760k resolves the capacity and Poukawa the circuit to backstop security constraints. 1077 Capacity There is expected to be Network - Upgrade $0- Upgrading the cable will Network - Install Feeder adjacent feeders during constraint on insufficient spare capacity in cables. $950k completely resolve the 11kV voltage Battery storage is not yet peak loads. Te Mata the circuit to backstop constraint for the lowest cost. regulators. economic for this constraint Network - Deploy Feeder adjacent feeders during and nearby feeders do not 11kV fast transfer Dynamic rating or a fast Network - Install peak loads. have capacity for additional scheme. transfer scheme would only be capacitor banks. load required to implement a useable under certain load Non-network - Non-network - fast transfer scheme. conditions. Dynamic ratings Dynamic feeder Encourage DG. would also require the rating. installation and maintenance Do nothing. Non-network - of monitoring equipment and Battery the transfer scheme would Technology. require the installation and maintenance of automated Do nothing. switchgear.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 44-70-70 SECTION SECTION 4 NETWORK4 NETWORK DEVELOPMENT DEVELOPMENT PLANS PLANS SECTION 4SECTION NETWORK 4 NETWORK DEVELOPMENT DEVELOPMENT PLANSPLANS4- 71 4-71 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKS LIMITEDUNISON NETWORKS | REGULATORY LIMITED ASSET| REGULATORY MANAGEMENT ASSET MANAGEMENT PLAN UPDATE PLAN UPDATE2019-29 2019-29

Project No. Title Constraint Description Options Cost Solution Project No. Title Constraint Description Options Cost Solution

10014 Irongate – Insufficient capacity Network - Create $0-$3M Creating an interconnection 10058 11kV Cable Existing cable is insufficient Replace cable. $500k Bringing forward the Camberley available to supply Irongate interconnection. between the two substations Upgrade capacity to support adjacent replacement of an aged cable Reconfigure 33kV Tie or Flaxmere Zone resolves both constraints at Chatham/ feeders in a contingency that has previously faulted and Network - Upgrade system. Substations when working the same time. It will require Flaxmere Ave during peak demand been repaired is the most 33kV conductor. on double circuit structure obtaining permission to install periods. Additional economic lifecycle solution. near Fernhill GXP. Network - Upgrade lines or cables across private automated System reconfiguration is 11kV conductor. land. Sectionalisation. unable to redistribute sufficient Non-Network - Upgrading the existing 33kV Do nothing. load to manage the constraint. Distributed connections is the most costly Additional automated Generation. option but has some renewal switchgear would be best benefits as well. Non-Network - carried out when the existing Battery Upgrading 11kV reduces the switchgear is at end of life. Technology. risk but to completely resolve it would require 33kV 10069 Security of A number of sections of the Install additional $250k Nine sites have been Do nothing. upgrades as well. Supply Bridge Pa Feeder are fusing and identified where the amount of improvements unprotected resulting in loss sectionalisation. interruptions avoided will Distributed generation and – Bridge Pa of supply to more customers justify the cost of installing battery technology are Do nothing. Feeder than optimal. fuses. currently too costly compared with the other options. Nine sites have been identified where the amount of 10019 Whirinaki GXP Esk and Tutira Zone Network - Create $1.5M Creating an interconnection interruptions avoided will Connection Substations are supplied by interconnection. with Whirinaki is currently the justify the cost of replacing the a long radial 33kV line and lowest cost option the existing solid links with fuses. Network - subject to regular outages resolves the issue. Duplicate circuit. Two existing Air Break Switch (average two per annum). Duplicating the circuit will sites have been identified as Non-Network - require negotiating a route economic to replace with Distributed with multiple landowners and Remote Controls Air Breaks Generation. will be costly to build and Switches to reduce Non-Network - maintain. interruption times. Battery Distributed generation will A site has been identified Technology. require a suitable site. where installing an additional Do nothing. Air Break Switch will reduce Battery technology is currently the amount of time spent too costly compared with the identifying faults and the other options. number of customers without power during the repair time.

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Project No. Title Constraint Description Options Cost Solution Projects for 2024/25 to 2028/29 10120 Security of A number of sections of the Install additional $450k Seven sites have been Supply Mangatahi Feeder are fusing and identified where the amount of All projects for 2024/25 to 2028/29 are in the initial identification stage. High level options have improvements unprotected resulting in loss sectionalisation. interruptions avoided will been identified, and costs estimated. However, all constraints will be reviewed during annual – Mangatahi of supply to more customers justify the cost of installing planning to confirm whether the constraints still exist, and if the timing of the constraints has Increase supply Feeder than optimal. fuses. changed. A more detailed investigation into the options will be undertaken closer to the planned path diversity. Six sites have been identified commencement of the project. Do nothing. where the amount of interruptions avoided will justify the cost of replacing the Project No. Title Constraint Description Options Cost existing solid links with fuses.

An existing Air Break Switch 1037 Nuffield Feeder Existing area without contingency link to Preferred: Network $650k sites have been identified as adjacent feeders. - Install alternative economic to replace with supply. Remote Controls Air Breaks Switches to reduce 1040 Roys Hill Feeder Insufficient voltage around Roys Hill Network -Tap $0-$296k interruption times. Road area during a contingency position changes.

A section of aged 2-wire Network - Voltage single phase 11kV line can be Regulator. replaced with a 3-phase line Network – with increased capacity to use Reconductor. as an alternative supply path for customers in the area. Do nothing.

Table 4-29: Hawke's Bay Projects for 2020/2121 to 2022/2023 1059 Capacity constraint, Arataki Predicted constraint feeding along the Non-network- Do $0- $1.7M Havelock Tie Arataki to Havelock 33kV tie during nothing. contingency/maintenance. Network - Upgrade cable.

1060 Capacity and security There is expected to be insufficient Network - Upgrade $0-$320k constraint on Campbell spare capacity in the circuit to backstop cable. Feeder Iona and Te Mata Feeders during peak Network - Deploy loads. 11kV fast transfer scheme.

Non-network - Cyclic feeder rating.

Non-network - Battery Technology.

Do nothing.

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Project No. Title Constraint Description Options Cost Project No. Title Constraint Description Options Cost

1066 Capacity Issues on Clive There is expected to be a capacity Network - Upgrade $0-$750k 1072 Upgrade to Automated Napier CBD is some distance from the Network - $0-$232k Feeder front end section constraint in part of the Clive Feeder. cable at front end. switch on Dickens Feeder Unison operations base affecting restoration Automation of part of Napier CBD times. switch. Network - Deploy automation 11kV fast transfer Non network - Do scheme. nothing.

Non-network - 1073 Upgrade to Automated Napier CBD is some distance from the Network - $0-$232k Dynamic feeder switch on Dalton Feeder Unison operations base affecting restoration Automation of rating. part of Napier CBD times. switch. Non-network - automation Non network - Do Battery nothing. Technology.

Do nothing. 1075 Upgrade to Automated Napier CBD is some distance from the Network - $0-$232k switch on Terrace Feeder Unison operations base affecting restoration Automation of 1067 Capacity constraint on There is expected to be a capacity Network - Upgrade $0-$236k part of Napier CBD times. switch. Korokipo Feeder constraint on Korokipo Feeder. lines. automation Non network - Do There is expected to be insufficient spare Network - Deploy nothing. capacity in the circuit to backstop adjacent 11kV fast transfer feeders during peak loads. scheme. 1076 Capacity and security There is expected to be a capacity Network - Upgrade $0-$500k constraints on Palmbrook constraint in the front-end section of the cable at front end. Non-network - Feeder Palmbrook Feeder. Dynamic feeder Network - Deploy rating. There is expected to be insufficient spare 11kV fast transfer capacity in the circuit to backstop Brookvale, scheme. Non-network - Karanema and Waimarama Feeders during Battery Non-network - peak loads. Technology. Dynamic feeder rating. Do nothing. Non-network - 1068 Capacity and Security There is expected to be insufficient spare Network - reroute $0-$604k Battery constraints on Gilligans capacity in the circuit to transfer loads cable into Technology. 33kV Feeder between Whakatu and Redclyffe Grid Exit Powdrells. Do nothing. Points during peak loads. Network - Deploy 11kV fast transfer 1078 Upgrade cable on Te Mata Arataki is becoming overloaded and Te Network- upgrade $0-$254k scheme. Feeder Mata cannot support Simla in contingency Te Mata Feeder. events. Non-network - Dynamic feeder 1082 Voltage regulator on Predicted voltage constraint on Mangatahi Non-Network - Do $0-$295k rating. Mangatahi Feeder Feeder. Project to be confirmed following nothing. Non-network - detailed verification survey. Network - Battery Reconductor. Technology. Network - Voltage Do nothing. regulator.

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Project No. Title Constraint Description Options Cost Project No. Title Constraint Description Options Cost

1106 Chatham Feeder There is expected to be insufficient spare Network - Upgrade $0-$500k 1139 Parallel connection on Backfeed required for significant portion of Network - New $0-$255k capacity in the Chatham circuit to backstop lines. Dunlop Feeder Waitane Place on Austin Feeder. conductor. Raupare Feeder during peak loads. Network - Deploy 1141 11kV Interconnection on There is expected to be a capacity Network - Upgrade $0-$500k 11kV fast transfer Riverslea Feeder at constraint in part of the Riverslea Feeder. cable at front end. scheme. Copeland Road There is expected to be insufficient spare Network - Deploy Non-network - capacity in the circuit to backstop adjacent 11kV fast transfer Cyclic feeder feeders during peak loads. scheme. rating. Non-network - Non-network - Dynamic feeder Battery rating. Technology. Non-network - Do nothing. Battery Technology. 1107 Herrick Feeder There is expected to be insufficient spare Network - Upgrade $0-$251k capacity in the Herrick circuit to backstop lines. Do nothing. adjacent feeders during peak loads. Network - Transfer 10017 Relay Upgrade for 11kV Provide arc flash detection for substation Network - upgrade $0-$400 load. feeders at Springfield close to GXP. relays. Non-Network - Substation Provide bus zone protection. Network - upgrade Distributed CTs. Generation. Non network- Do Non-network - nothing. Battery Technology. 10042 Separate circuits on Church 33kV circuits share common poles and are Network- Fast $0-$600k Do nothing. Road Double 33kV at risk of common mode failures. Transfer.

Network- 1113 Upgrade feeder front end on Dickens Feeder constrained out of CB and Network- upgrade $0-$695k Separation of lines. Dickens Feeder cannot supply contingency load to adjacent feeder. circuits. Network - New cable to Tamatea 1128 Install Voltage Regulator on Predicted voltage constraint on Ridgemount Network- install $0-$295k Substation. Ridgemount Feeder Feeder. voltage regulator.

1134 Voltage constraint on Predicted voltage constraint on Pohokura Network - $0-$295k Pohokura Feeder Feeder. Reconductor.

Network - Voltage Regulator.

1135 Install Voltage Regulator on Predicted voltage constraint on Puketitiri Network - Voltage $0-$295k Puketitiri Feeder Feeder. Regulator.

1136 Install Voltage Regulator on Predicted voltage constraint on Park Island Network - Voltage $0-$300k Park Island Feeder Feeder. Regulator.

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Project No. Title Constraint Description Options Cost Project No. Constraint Description Category Cost Section

10232 Karanema Feeder Capacity A section of the Karanema Feeder has Network - Upgrade $400k 2024/25 to 2028/29 Material Constraint limited capacity to support the adjacent lines. feeders during a contingency event. 1043 Ben Lomond Feeder Voltage Support Quality of Supply $490k 4.7.3 Network - Deploy 11kV fast transfer scheme. 1044 Taupo North Feeder Voltage Support Quality of Supply $297k 4.7.3

Non-network - 1045 Taupo Plains Voltage Support Quality of Supply $350k 4.7.3 Cyclic feeder rating. 1129 Acacia Bay Voltage Support Quality of Supply $300k 4.7.3 Non-network - Battery 10126 Wharewaka Generation Point Quality of Supply $600k 4.7.3 Technology.

Do nothing. 10127 Taupo Plains Generation Point Quality of Supply $400k 4.7.3

Table 4-30: Hawke's Bay Projects for 2024/25 to 2028/29 10194 Taupo West Substation Quality of Supply $4.5M 4.7.3

Centennial Drive to Runanga Street Conductor 10195 Quality of Supply $600k 4.7.3 Upgrade

Table 4-31: Taupo Projects Summary 4.7 Taupo Network Development Projects Customer driven projects where a contract is not in place are not included. Details of the projects for the ten-year planning period are detailed in the remainder of the section.

Projects for 2019/2020

Project No. Constraint Description Category Cost Section Projects greater than $250,000 are discussed in more detail.

2019/20 Material

1008 Acacia Bay Area Reliability Improvements Quality of Supply $400k 4.7.1.1.1 4.7.1.1 Material projects for 2019/20

2019/20 Non-Material Project 1008 Acacia Bay Area Reliability High vehicle accident rate area near the Acacia Bay intersection is upstream of the existing 1018 Reliability Improvements Mapara Area Quality of Supply $90k 4.7.1.2 recloser site causing the entire feeder trips.

1084 Power Quality Provision Quality of Supply $20k 4.7.1.2 There is a long, mainly overhead, unfused spur supplying part of Acacia Bay. This means that a fault on the spur trips the entire feeder as it is upstream from the recloser. 10112 SSN Network Optimisation Quality of Supply $90k 4.7.1.2 There are ferro resonance risks with the cable to T717 in Scenic Heights, the cable to T809, Other Reliability, Unplanned Reliability, Safety and Environment T843, and T477 in Reeves Road, and the cable to T426, T135, T750, and T546 in Wiki Terrace. 10053 Safety and $50k 4.7.1.2 Provision Environment

2020/21 to 2023/24 Material

1061 Waikato Feeder Upgrade System Growth $1M 4.7.2

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Solution Options

4.7.1.2 Non-material projects for 2019/20 Class Description Advantages Disadvantages Cost

Network – Increase Lowest cost option that Provides no additional benefits $400k Constraint sectionalisation mitigates all risks above the minimum requirements. Project No. Title Options Cost Preferred Solution Description

Network – Low cost option that Requires landowner permission and $600k 1018 Reliability Large sections of the Network – Increase $90k Increase Alternative supply mitigates all risks and associated costs to cross private Improvements network in the Mapara sectionalisation. sectionalisation by routes improves security of land. Mapara Area Road area have no installing additional supply to some Non-network – Install sectionalisation. This switches. customers in the area generation. leads to widespread Alternative supply outages that are Non-network - Install Non-network – Improves security of Significant cost. $1.3M routes would require difficult isolate and batteries. Install generation. supply to most landowner permission Requires land for siting. restore promptly. customers and associated costs to cross private land. Non-network - Improves security and Significant cost. $2.5M Generator and battery Install batteries. quality of supply to Requires land for siting. options, although most customers providing slightly better reliability would Table 4-32: Solution Options for Network Constraint, Acacia Bay Reliability cost significantly more $600-$1M and would Preferred Solution also require a specific site. The preferred option is to increase sectionalisation by: 1084 Power Quality Provisional sum for Reconfigure network. $20k Solutions will depend • Installing a recloser on pole 251940 in Acacia Bay Road. This will limit the number of Provision improvements to power on the issue identified. Adjust voltage customers affected by faults in the area. quality identified by settings. • Installing approx. 400m of 11kV cabling and automated RMUs on road reserve outside customer feedback. 723 Acacia Bay Road and on the corner of Acacia Bay Road and Reeves Road. This Increase conductor.

will remove network equipment from the vicinity of the high accident area and provide Voltage regulator. 3-phase switching to mitigate the ferro-resonance risk. 10112 SSN Network Remote operation of Improve coverage of $120k Improve coverage of Targeted Service Levels Optimisation field devices reliant on SSN communications. SSN communications Customer Service Performance – SAIDI a single Duplicate existing communications path Customer Service Performance – SAIFI communications resulting in delayed paths. Customer Service Performance – Number of unplanned interruptions per annum. restoration of supply. Do nothing.

10053 Unplanned Provisional sum for Additional switchgear. $50k Solutions will depend Reliability, improvements to on the issue identified. System Safety and Reliability, Safety and reconfiguration. Environment Environment identified Provision in post event reports.

Table 4-33: Taupo Non-Material Projects for 2019/20

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Project No. Title Constraint Description Options Cost

Projects for 2020/21 to 2023/24 1043 Voltage Constraint forecast predicts voltage Network - Install voltage $490k Projects from 2020/21 to 2023/24 are being investigated in more detail and have preferred constraint, Ben constraint on adjacent feeders when regulators. Lomond Feeder supporting the Ben Lomond Feeder during solutions identified. Projects for later in the period are still in initial stages and the options have Non-network - Promote off- contingency events. Constraint to be not been investigated in detail to enable selection of a preferred solution. A range of possible grid solutions for lifestyle verified before solution selected. costs is provided. blocks and holiday homes. Network - Change taps on distribution transformers. Constraint Project No. Title Options Cost Preferred Solution Network - Install capacitor Description banks.

1061 Voltage The PowerFactory Network - Install voltage $0-$4M Network Taupo West constraint model indicates a regulators. Substation. Waikato Feeder voltage constraint is Non-network - Promote Non-network - Install 400V developing at the end of off-grid solutions for regulators on transformers. the Waikato Feeder. lifestyle blocks and Non-network - Encourage Unison has installed holiday homes. DG. monitoring devices and Network - Change taps is in the process of data Non-network - Battery on distribution gathering. Once one storage. transformers. year of data has been analysed, the timing of Network - Install 1044 Voltage Constraint forecast predicts voltage Network - Install voltage $297k any remediation can be capacitor banks. constraint, Taupo constraint on Taupo North during regulators. North Feeder contingency event. Constraint to be determined. Non-network - Promote off- Network Taupo West verified before solution selected. Substation. grid solutions for lifestyle blocks and holiday homes. Non-network - Install 400V regulators on Network - Change taps on transformers. distribution transformers.

Non-network - Network - Install capacitor Encourage DG. banks.

Non-network - Battery Network Taupo West storage solution. Substation. Non-network - Install 400V Table 4-34: Taupo Projects for 2020/21 to 2023/24 regulators on transformers.

Non-network - Encourage DG.

Non-network - Battery Projects for 2024/25 to 2028/29 storage. All projects for 2024/25 to 2028/29 are in initial identification stage. High level options have 1045 Voltage Constraint forecast predicts voltage Network - Install voltage $350k been identified and costs estimated. However, all constraints will be reviewed during annual constraint, Taupo constraint on Taupo Plains. Constraint to regulators. planning to confirm whether the constraints still exist and if the timing of the constraints has Plains be verified before solution selected. changed. A more detailed investigation into the options will be undertaken closer to the planned Non-network - Promote off- grid solutions for lifestyle commencement of the project. blocks and holiday homes.

Network - Change taps on distribution transformers.

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Project No. Title Constraint Description Options Cost Project No. Title Constraint Description Options Cost

Network - Install capacitor 10194 Taupo West Suburban Taupo west of the Waikato Network - Additional 11kV $4.5M banks. Substation River is supplied by multiple 11kV feeders feeders. Non-network - Install 400V out of the Runanga Street Substation. As Network – Install new zone regulators on transformers. the load continues to grow there is substation. increasing pressure on the capacity of the Non-network - Encourage substation and the limited supply paths Non-network – Distributed DG. available into the area. One of the main Generation. Non-network - Battery 33kV lines supplying Taupo does pass Non-network - Battery storage. through the area though. storage.

1129 Voltage The PowerFactory model indicates a Network - Install voltage $300k 10195 Centennial Drive As the load continues to grow in the Network - 11kV fast transfer $600k constraint, voltage constraint is developing at the end regulators. to Runanga western area of Taupo the capacity of the schemes. Acacia Bay of the Acacia Bay Feeder. Non-network - Promote off- Street 33kV Line 33kV line between Centennial Drive Feeder, Kinloch Network – Replace existing Unison has installed monitoring devices grid solutions for lifestyle Capacity switching station and Runanga Street area line. and is in the process of data gathering. blocks and holiday homes. substation becomes a constraint. Once one year of data has been analysed, Network – Duplicate existing Network - Change taps on the timing of any remediation can be line. distribution transformers. determined. Non-network – Distributed Network - Install capacitor If the data from the sensors confirms a Generation. banks. constraint, then an appropriate solution will Non-network - Battery be chosen. The cost allocation is Network – Install new zone storage. provisional assuming that the constraint is substation. confirmed. Non-network - Install 400V Table 4-35: Taupo Projects for 2024/25 to 2028/29 regulators on transformers.

Non-network - Encourage DG.

Non-network - Battery storage.

10126 Wharewaka The Wharewaka Feeder is a long radial Network - Install duplicate $600k Reliability feeder with a large group of customers at 11kV supply. the remote end. They experience multiple Non-network – Distributed outages per annum with restoration time Generation. dependent on repair complexity. Network – Connect to 33kV line supplying Taupo Plains area.

Non-network - Battery storage.

10127 Taupo Plains The Taupo Plains area is an electrically Network - Install alternative $400k Generation Point remote rural district with a lengthy single supply. 33kV supply routed through forestry land. Non-network – Distributed Customers experience multiple outages Generation. per annum with restoration time dependent on repair complexity. Non-network - Battery storage.

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Project No. Title Category Cost Section 4.8 Rotorua Network Development Projects 2024/25 to 2027/8 Material Customer-driven projects where a contract is not in place are not included. Details of the projects for the ten-year planning period are detailed in the remainder of the section. Quality of 1046 Tarawera Feeder Voltage Support $330k 4.8.3 Supply

Quality of Project No. Title Category Cost Section 1079 Ongaroto Feeder Voltage Support $472k 4.8.3 Supply

2019/20 Material Quality of 10020 Fernleaf 33kV Security Upgrade $4M 4.8.3 Supply Quality of 1063 Commission spare transformer at Fernleaf $500k 4.8.1.2 Supply Quality of 10128 Okere Feeder Generation Points $1.2M 4.8.3 Supply Other Reliability, 10149 Install Distribution Fault Anticipation Devices Safety and $350k 4.8.1.2 Quality of Environment 10130 Tarawera Feeder Generation Points $1.2M 4.8.3 Supply

2019/20 Non Material Table 4-36: Rotorua Projects Summary

Install Sectionaliser and ABS, Tarawera Feeder - Quality of 1019 $50k 4.8.1.2 Spencer/Tarawera Roads Supply

Quality of 1020 Upgrade to recloser, RCS6560, Okere, Cnr SH30/33 $110k 4.8.1.2 Projects for 2018/2019 Supply Projects greater than $250,000 are discussed in more detail. Replace ABS 5089 and ABS540 to improve reliability Quality of 1021 $210k 4.8.1.2 on the Tumunui Feeder Supply

Quality of 1080 Power Quality Provision $20k 4.8.1.2 Supply 4.8.1.1 Project 1063 – Commission Spare Transformer at Fernleaf Unable to supply full load of Rainbow and Fernleaf substation areas during 33kV line outage. Other Reliability, Unplanned Reliability, Safety and Environment 10052 Safety and $150k 4.8.1.2 Risk of extended outage to Fernleaf area in the event of a zone transformer asset failure. Provision Environment Voltage depression on 11kV busbar during faults on adjacent feeders. Quality of 10115 Optimisation of the SSN Network $90k 4.8.1.2 Rainbow and Fernleaf Zone Substations are supplied by a long radial 33kV line which is subject Supply to regular outages. Backstopping support is usually via the 11kV networks from Ohaaki and Rotorua. Both substations have single 33/11kV transformers. 10216 Upgrade T2468 to 300kVA System Growth $85k 4.8.1.2

2020/21 to 2023/24 Material Solution Options Quality of 1039 Mamaku Feeder Voltage Support $410k 4.8.3 Supply Class Description Advantages Disadvantages Cost

Quality of Network Install second Low initial cost than Does not completely resolve all $500k 10093 Springfield Feeder Ferro-resonance Mitigation $260k 4.8.2 Supply transformer at reduces power quality issues. Fernleaf issues by separating Quality of substation supplies. 10094 Clayton Feeder Reliability Improvements $547k 4.8.2 Supply Network Duplicate 33kV Increased operational Existing supply paths are space $6M line from Rotorua flexibility. Less constrained as there are several

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4.8.1.2 Project 10149 – Install Distribution Fault Anticipation Devices Class Description Advantages Disadvantages Cost

disruption to existing existing lines using the same Constraint network and area. corridor. Land access issues will Under certain conditions a fault on the distribution network does not cause enough current to Resolves capacity require extended negotiations and flow to operate traditional protection devices such as fuses and circuit breakers. While this does and quality issues. may add significantly to the overall not present an immediate danger the public and property the potential for harm will exist until cost. the fault is detected and the affected equipment isolated. Network Extend 33kV line Will resolve While this option resolves the $4.5M to Ohaaki constraints. It also constraints, it is an expensive provides contingency solution. It may ultimately be Solution Options headroom. required later in the planning Cost/ period if significant load growth Class Description Advantages Disadvantages occurs. Feeder

Non- Install generation Will resolve Relatively low-cost option to $4M Distribution Fault Accurate at detecting Cost. $30k Anticipation high impedance faults. Network constraints. resolve first two constraints. Requires time to “machine learn” Resolving the voltage depression Can be used to indicate distribution system. would require the generator to be pre-fault events. operating continuously resulting in high ongoing operational and Travelling Wave Uses existing Requires replacement or large $10k maintenance costs. Analysis equipment. portion of relay fleet.

Non- Battery Less disruptive to High cost to obtain capacity $8M Sensitive Earth Low cost. May not be sensitive enough. $0-1k Network existing network. sufficient for full support. Fault settings Uses existing May result in unnecessary outages. Do Lowest cost. Does not resolve issues. $0 equipment. nothing Hi Impedance Medium Cost. Requires replacement or large $10k

Table 4-37: Solution Options for Network Constraint, Fernleaf Detection in Relays portion of relay fleet. May not be sensitive enough.

Preferred Solution Remote Voltage Accurate. High cost. $80k Sensing (dedicated The preferred option is to commission the previously installed second transformer at Fernleaf Uses existing Requires multiple devices per sensors) Substation. This will enable the Fonterra factory supply to be separated from the other feeders technologies. feeders at the devices need to install supplying the surrounding rural area. at the remote end of each branch.

Targeted Service Levels Remote Voltage Accurate. Require agreement and cooperation $0-1k Sensing (smart with Metering Service Providers. Customer Service Performance – SAIDI Uses existing meters) Customer Service Performance – SAIFI equipment and Requires real time communication. technologies. Customer Service Performance – Number of unplanned interruptions per annum. Table 4-38: Solution Options for Network Constraint, High Impedance Faults

Preferred Solution Whilst still exploring low cost solutions, the preferred option is a limited trial of the Distribution Fault Anticipation system.

Distribution Fault Anticipation is based on the high impedance fault detection technology developed at Texas A&M University after more than a decade of research. The feeder is monitored using a high waveform sampling rate (32 samples/cycle) for the AC current inputs in conjunction with a high-performance (RISC) microprocessor to obtain the frequency response

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required for arcing fault detection. This method will be trialled on ten sites and be monitored for Constraint Preferred Project No. Title Options Cost effectiveness against alternative methods utilising the existing equipment and technologies Description Solution already deployed on the network. 10052 Unplanned Provisional sum for Additional $150k Solutions will Targeted Service Levels Reliability, Safety improvements to switchgear. depend on the Customer Service Performance – SAIDI and Environment Reliability, Safety issue identified. System Provision and Environment Customer Service Performance – SAIFI reconfiguration. identified in post Customer Service Performance – Number of unplanned interruptions per annum. event reports.

10115 Optimisation of the Remote operation Improve $90k Improve coverage SSN Network of field devices coverage of SSN of SSN reliant on a single communications. communications. 4.8.1.3 Non-material Projects for 2019/20 communications Duplicate existing path resulting in communications delayed restoration paths. of supply. Constraint Preferred Project No. Title Options Cost Do nothing. Description Solution 10216 Upgrade T2468 to Existing Transfer load. $85k Replace 1019 Install Sectionaliser Long sparse Install $50k Install 300kVA Transformer transformer: sectionaliser. sectionaliser: Replace and ABS, Tarawera section or rural supplies 167 limitations in the Installing fusing transformer. Feeder - feeder impacts Install fusing. customers and has surrounding 400V that will grade in Spencer/Tarawera reliability to other a peak load of Do nothing. network means Roads customers on the Do nothing. with existing 305kVA. transferring load is feeder. systems was not not a practical feasible. option.

1020 Upgrade to Existing recloser Relocate $110k Install Recloser: Table 4-39: Rotorua Non-material Projects for 2019/20 recloser, RCS6560, location results in Recloser. Existing recloser can remain as a Okere, Cnr many customers Install Recloser. SH30/33 being impacted by sectionaliser for rural faults. Install only slightly more Sectionaliser. than the relocation Projects for 2020/21 to 2023/24 Duplicate Supply. cost. Duplicating supply is Projects from 2020/21 and 2023/24 are being investigated in more detail and have preferred Do nothing. significantly more solutions identified. Projects for later in the period are still in initial stages and the options have expensive. not been investigated in detail to select a preferred option. A range of possible costs is provided. 1021 Replace ABS 5089 Large rural feeder Install Recloser. $210k Install one sectionaliser and and ABS540 to with limited Install one recloser for improve reliability automation and Sectionaliser. on the Tumunui regular sustained optimal Project No. Title Constraint Description Options Cost Solution Feeder outages. Do nothing. cost/performance. 1039 Voltage Under voltage when using Network - $410k Install Voltage constraint Mamaku to backstop Dalbeth reconductor. Regulator: Lowest cost 1080 Power Quality Provisional sum for Reconfigure $20k Solution will Mamaku or Dansey. solution that resolves Provision improvements to network. depend on issue Network - Voltage identified. Feeder the issue. power quality Adjust voltage regulator. identified by settings. Non-network – customer Distributed feedback. Increase conductor. Generation. Non-network - Do Voltage regulator. nothing.

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Project No. Title Constraint Description Options Cost Solution Project No. Title Constraint Description Options Cost

regulator. 10093 Springfield Ferro-resonance issue on Network - Replace $260k Network - Replace Feeder Ferro- 11kV cable. existing switches. existing single phase Non-network - Do resonance switching with 3-phase nothing. Network - units. Additional 10020 Alternative supply, Fernleaf 33kV circuit is expected to reach Network - New $0 - $6M switches. Network - Increase Fernleaf 33kV maximum capacity in 2024. line. sectionalisation to reduce cable length Non-network – between switches. Distributed Generation. 10094 Clayton Feeder Ferro-resonance and lack of Network - Replace $547k Network - Replace Non-network - Reliability sectionalisation issues on existing switches. existing single phase Install batteries. Improvements feeder. switching with 3 phase Network - units. Non-network - Additional Load switches. Network - Increase Management. sectionalisation to reduce cable length Non-network - Do between switches. nothing.

Network - Increase 10128 Okere Feeder The Okere feeder is a long radial feeder with Network - Install $1.2M automation of Generation Points large groups of customers at the remote end. duplicate 11kV switches. They experience multiple outages per annum supply. Table 4-40: Rotorua Projects for 2020/21 to 2023/24 with restoration time dependent on repair Non-network – complexity. Distributed Generation.

Non-network - Battery storage. Projects for 2024/25 to 2028/29 All projects for 2024/25 to 2028/29 are in initial identification stage. High level options have been 10130 Tarawera Feeder The Tarawera feeder is a long radial feeder Network - Install $1.2M identified, and costs estimated. However, all constraints will be reviewed during annual planning to Generation Points with large groups of customers at the remote duplicate 11kV confirm whether the constraints still exist, and if the timing of the constraints has changed. A more end. They experience multiple outages per supply. detailed investigation into the options will be undertaken closer to the planned commencement of annum with restoration time dependent on Non-network – the project. repair complexity. Distributed Generation.

Non-network - Project No. Title Constraint Description Options Cost Battery storage.

1046 Voltage constraint Under voltage expected if additional sewage Network - $0-$330k Table 4-41: Rotorua Projects for 2024/25 to 2028/29 Tarawera Feeder pump load installed. reconductor.

Network - Voltage regulator.

Non-network - Do nothing.

1079 Voltage support Provision for two voltage regulators depending on Network - $0-$472k provisional required security level. reconductor. allocation for Network - Voltage Ongaroto Feeder

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4.9 Determination Reference Mapping Table

Section 4 References Determination Reference

11, 4.1 including 4.1.1-4.1.4, 4.2 including 4.2.1- 4.1 Introduction to this Section 4.2.6

4.2 Network Development Planning Objectives 11.1, 11.2 and Criteria

4.3 Study Macro-environment and future network 11.1, 11.2 context

4.4 Network Development Planning Assumptions 11.1, 11.11

4.5 Network Development Planning Process 11.3 to 11.8 and 11.12

11.7, 11.8.3, 11.9 including 11.9.1 to 11.9.3, 4.6 Hawke’s Bay Network Development Projects 11.10, including 11.10.1 to 11.10.3, 11.12.1 to 11.12.2

11.7, 11.8.3, 11.9 including 11.9.1 to 11.9.3, 4.7 Taupo Network Development Projects 11.10, including 11.10.1 to 11.10.3, 11.12.1 to 11.12.2

11.7, 11.8.3, 11.9 including 11.9.1 to 11.9.3, 4.8 Rotorua Network Development Projects 11.10, including 11.10.1 to 11.10.3, 11.12.1 to 11.12.2

Table 4-42: Determination Reference Mapping Table

ASSET MANAGEMENT PLANNING SECTION 5 ASSETSECTION MANAGEMENT 5 ASSET MANAGEMENT PLANNING PLANNING 5-15-1 UNISON UNISONNETWORKS NETWORKS LIMITED LIMITED | REGULATORY| REGULATORY ASSET ASSET MANAGEMENT MANAGEMENT PLAN PLANUPDATE 201 2019-299-29

CONTENTS 5 ASSET MANAGEMENT PLANNING ...... 5-2 Distribution and Low Voltage Overhead Lines...... 5-2 Asset Condition and Performance: Distribution and Low Voltage Overhead Lines...... 5-2 Renewal Project List: 2019/20 ...... 5-3

Table 5-56: Systemic Issues and Mitigations: Distribution and Low Voltage Lines ...... 5-2 Table 5-101: Renewal Project List 2019/20...... 5-7

© Unison Networks Limited 2018 55-2-2 SECTION SECTION 5 5ASSET ASSET MANAGEMENT MANAGEMENT PLANNING PLANNING SECTION 5 ASSETSECTION MANAGEMENT 5 ASSET MANAGEMENT PLANNING PLANNING 5-35-3 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 2019 2019-29-29

5 ASSET MANAGEMENT PLANNING Renewal Project List: 2019/20

Distribution and Low Voltage Overhead Lines

Asset Condition and Performance: Distribution and Low Voltage Overhead Lines Project Reference Asset Category Project Description Region Budget The ACSR, AAC and AAAC conductors are generally in good condition. Some of the older copper (especially small diameter in geothermal areas) and galvanised steel conductor is approaching end- 2003 Pole Mounted Transformer Replace T11 and pole 255342 Taupo $42k of-life. The system is generally reliable, and current levels of maintenance are supporting 2004 Pole Mounted Transformer Replace T320 and pole 255950 Taupo $44k satisfactory performance levels.

In collaboration with the University of Canterbury (UC), a project to better understand the condition 2005 Pole Mounted Transformer Replace T45 and pole 255925 Taupo $50k of a subset of Unison’s overhead conductor fleet was undertaken in 2018/19. While the project 2009 Pole Mounted Transformer Replace Tx 668 and pole 111789 Napier $41k focused on aged 7/0.064 copper conductors, the project learnings are transferrable to Unison’s fleet Distribution OH Open Wire of copper conductors. Conductor samples were collected from various sites around Unison’s 2013 Old Taupo Road OHUG Rotorua $1.3M Conductor network and tested by the UC to determine their mechanical and electrical properties and compare the degree and rates of conductor degradation. Following this, analysis was undertaken on various Distribution OH Open Wire Taradale A and B Feeders: OHUG Conversion 2025 Napier $565k sample parameters including age, environmental conditions (H2S, coastal, humidity, wind) and span Conductor outside EIT on Gloucester Street lengths to better understand which factors had the biggest influence on the conductor’s condition 3.3/6.6/11/22kV Switches and subsequent remaining life expectancy. This testing and analysis confirmed that many of the 2031 Proactive replacement of aged ABSs Napier Napier $98k and fuses (pole mounted) samples tested were approaching end of life. 3.3/6.6/11/22kV Switches Proactive replacement of six aged ABSs Unison’s overhead conductor, condition-based risk model is being updated and enhanced based on 2032 Hastings $100k and fuses (pole mounted) Hastings the findings and outputs of this project. This model enhancement included a move to “linear assets” 3.3/6.6/11/22kV Switches to allow more granular asset information to be captured and recorded against specific load sections, 2033 Proactive replacement of aged ABSs Rotorua Rotorua $60k including condition, inspection, maintenance and test information and any associated costs. and fuses (pole mounted) 3.3/6.6/11/22kV Switches Consequently, the model identified approximately 450 kilometres of 7/0.064 copper 11kV conductor 2034 Replace SP216 Taupo $15k for replacement over the next ten years, equating to an approximate annual spend of $6.72M. A and fuses (pole mounted) further project is planned for 2019/20 focussing on aluminium conductors. There is a high likelihood Zone Substation Install power transformer temperature equipment 2048 Hastings $105k that the result of this work will highlight further investment requirements beyond the ten-year Transformers selected sites regulatory planning horizon to replace poor condition aluminium conductors. Patoka ZS - 33kV Outdoor CB1020 and 2057 22/33kV CB (Outdoor) Napier $470k The following systemic issues have been identified and are being proactively managed. protection replacement

3.3/6.6/11/22kV CB (pole 2093 Patoka ZS - 11kV recloser replacement Napier $128k mounted) Systemic Issues Mitigation 3.3/6.6/11/22kV CB (pole All new overhead conductor installed in affected areas is Replace KF recloser S5297, Taharua Road, Rotorua’s geothermal gases (H2S and SO2) are 2099 mounted) - reclosers and Taupo $60k Taupo corrosive to copper conductor and associated aluminium. sectionalisers ferrous hardware fittings, resulting in: Samples of removed copper conductor is being 3.3/6.6/11/22kV CB (pole • analysed to provide a better understanding of asset Replace KF recloser S5327, Taharua Road, conductor corrosion, and 2100 mounted) - reclosers and Taupo $60k condition to assist with predictive modelling for future Taupo • degradation of conductor joints. maintenance and replacement programmes. sectionalisers 3.3/6.6/11/22kV CB (pole Pre-formed line splices identified in the five-yearly Replace KF recloser R4500 Kahika Road, Tutira, 2101 mounted) - reclosers and Napier $60k Failure of pre-formed line splices on older 11kV inspection programme are being replaced by Napier conductor. compression repair sleeves. This only applies to Mink sectionalisers and larger conductors. 3.3/6.6/11/22kV CB (pole Install new single phase recloser sub 6691, 2106 mounted) - reclosers and Taupo $19k Table 5-1: Systemic Issues and Mitigations: Distribution and Low Voltage Lines Taharua Road, Taupo sectionalisers

© Unison Networks Limited 2019 © Unison Networks Limited 2019 55-4-4 SECTION SECTION 5 5ASSET ASSET MANAGEMENT MANAGEMENT PLANNING PLANNING SECTION 5 ASSETSECTION MANAGEMENT 5 ASSET MANAGEMENT PLANNING PLANNING 5-55-5 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 2019 2019-29-29

Project Project Reference Asset Category Project Description Region Reference Asset Category Project Description Region Budget Budget

3.3/6.6/11/22kV CB (pole Concrete poles / steel Upgrade 7/064 CU conductor on the Roys Hill Replace H recloser SP18LB Matea Loop Road, 2222 Hastings $300k 2108 mounted) - reclosers and Taupo $19k structure Feeder Taupo sectionalisers Distribution OH Open Wire Remove redundant 11kV line start of Opepe 2228 Taupo $45k 3.3/6.6/11/22kV CB (pole Conductor Feeder and replace pole Replace H recloser 6885 Rangitaiki 33/11kV Iso 2109 mounted) - reclosers and Taupo $19k Sub, Rangitaiki, Taupo Distribution OH Open Wire Kahoroa poles 226840 to 226852 865m 7.064 sectionalisers 2229 Rotorua $120k Conductor copper 193 customers 0.4 SAIDI 3.3/6.6/11/22kV CB (pole Distribution OH Open Wire 2110 mounted) - reclosers and Replace H recloser S5355 Taharua Road, Taupo Taupo $19k 2232 11kV reconductor Spencer Road south section Rotorua $1.35M sectionalisers Conductor

3.3/6.6/11/22kV CB (pole Distribution OH Open Wire Upgrade twin 0.04 CU Taihape Road Twyford Replace H recloser S5364 Tiverton Downs 2240 Hastings $290k 2111 mounted) - reclosers and Taupo $19k Conductor Feeder Road, Taupo sectionalisers Distribution OH Open Wire Replace spur 160m of corroded 11kV GS 2242 Napier $22k 2121 Centralised plant HB ripple plants- Springfield Transmitter upgrade Napier $260k Conductor conductor to TX 1655 Distribution OH Open Wire Replace spur 300m of corroded 11kV GS 2123 Centralised plant Ohaaki ZS 317Hz Transmitter upgrade Taupo $14k 2244 Napier $42k Conductor conductor to TX 800 Zone substations up to 2142 Arawa ZS earth grid upgrade Rotorua $198k Distribution OH Open Wire Replace spur 240m of corroded 11kV GS 66kV 2245 Napier $35k Conductor conductor to TX 2158 33kV Switch (Pole 2144 Replace 33kV Ripple ABS 187 at Springfield Napier $15k Distribution OH Open Wire Replace 11kV 7/.064 copper conductor + ABS Mounted) 2248 Rotorua $160k Conductor S588 in Rimuvale Street 33kV Switch (Pole 2145 Replace 33kV ABS at Sherenden Hastings $19k Distribution OH Open Wire Replace 11kV 7/.064 copper conductor + ABS Mounted) 2249 Rotorua $150k Conductor S597 in Pandora Avenue 3.3/6.6/11/22kV Switches 2146 Replace 11kV ABS at Sherenden Hastings $10k Distribution OH Open Wire Replace 7/.064 11kV copper conductor beyond and fuses (pole mounted) 2250 Napier $70k Conductor RMU 5001 Park Island Feeder Tutira ZS. Automate ABSs 1337 and 1341. To 33kV Switch (Pole Distribution OH Open Wire Replace aged 11kV 7/.064 copper outside 2147 allow 11kV change over when 33kV supply is Napier $98k Mounted) 2251 Hastings $70k lost Conductor Hastings Boys’ High School

Zone substations up to Distribution OH Open Wire 2150 HB Mahora Transformer bunding Hastings $125k 2253 Barnard Avenue area refurbishment Napier $700k 66kV Conductor

Rainbow ZS install addition concrete pad to all Distribution OH Open Wire Replace 7/.064 11kV copper conductor Matapiro Zone substation 2257 Hastings $480k 2155 the emergency installation of a three-phase Rotorua $20k Conductor Road transformers transformer Distribution OH Open Wire 2274 LV reconductor Marguerita and White Streets Rotorua $310k Zone substations up to Conductor 2169 Flaxmere ZS DC panel replacement Hastings $63k 66kV Distribution OH Open Wire 2280 LV reconductor with 95mm ABC Ford Road Rotorua $310k Zone substations up to Conductor 2172 Fernhill ZS 50/110V charger and battery upgrade Hastings $23k 66kV Distribution OH Open Wire 2281 Reconductor Bellingham Crescent area Rotorua $440k Zone substations up to Fernleaf ZS DC upgrade for N-1 batteries Conductor 2199 Rotorua $80k 66kV support for Comms reliability 2291 LV OH Conductor Waterhouse Street LV reconductor Napier $160k

Distribution OH Open Wire Replace 7/064 CU conductor in Orakeikorako Distribution OH Open Wire 2219 Taupo $470k 2292 Purser Place LV reconductor Hastings $58k Conductor Road Conductor

© Unison Networks Limited 2019 © Unison Networks Limited 2019 55-6-6 SECTION SECTION 5 5ASSET ASSET MANAGEMENT MANAGEMENT PLANNING PLANNING SECTION 5 ASSETSECTION MANAGEMENT 5 ASSET MANAGEMENT PLANNING PLANNING 5-75-7 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 2019 2019-29-29

Project Project Reference Asset Category Project Description Region Reference Asset Category Project Description Region Budget Budget

Distribution OH Open Wire Distribution OH Open Wire 2293 Trevelyan Street LV reconductor Napier $130k 2509 Unplanned and Reactive Renewals Hawke’s Bay Hastings $3.8M Conductor Conductor

3.3/6.6/11/22kV Switch Replace 1351/1352 RMU and 200KVA TRX Distribution OH Open Wire 2510 Unplanned and Reactive Renewals Taupo Taupo $600k 2320 (ground mounted) - except 5205, Hastings, Whakatu Cold Stores, Anderson Hastings $131k Conductor RMU Road Distribution OH Open Wire 2511 Unplanned and Reactive Renewals Rotorua Rotorua $1.2M Replace SP32FS/SP156/SP157 and 500KVA Conductor 2321 3.3/6.6/11/22kV RMU Taupo $177k T518 Transformer, Taupo, Tuwharetoa Street 2512 Wood poles Pole Nailing - Hawke's Bay Hastings $480k Replace 3024/3025/3026 1984 Andalect RMU 2513 Wood poles Pole Nailing - Taupo Taupo $60k 2322 3.3/6.6/11/22kV RMU with CFCC. Replace aged cable RMS 3025 - sub Napier $173k 4731 Wellesley Road, Napier 2514 Wood poles Pole Nailing - Rotorua Rotorua $500k

Replace SP201/SP202/SP38FS Long and 2515 Wood poles Pole Replacements - Hawke's Bay Hastings $500k 2323 3.3/6.6/11/22kV RMU Crawford RMU. Replace 300KVA TRX T613 Taupo $549k Pataka Road. Replace Cable from SP201 Taupo 2516 Wood poles Pole Replacements - Taupo Taupo $350k

Replace 3033/F3034/3035 RMU and 300kVA 2517 Wood poles Pole Replacements - Rotorua Rotorua $1.6Mk 2324 3.3/6.6/11/22kV RMU Napier $242k transformer 4136 Ormond Road, Napier. Interruption Cable Group G10 - Poole Street x Distribution UG XLPE or Replace 3310/F3311/3312Andalect RMU and 2567 Folkstone Drive Hastings (Trfs 1868, 1870, 1903 Hastings $931k 2325 3.3/6.6/11/22kV RMU Napier $130k PVC 500KVA transformer in Napier, Wellesely Road & 1904)

Replace SP203/SP204/SP31FS. Replace Distribution UG XLPE or Taupo, Wharewaka Feeder, replace aged XLPE 2574 Taupo $47k 2326 3.3/6.6/11/22kV RMU 500KVA Transformer T568, Tuwharetoa Street, Taupo $166k PVC cable at spur from ABS 5948 (ABR) Taupo Replace aged cable CB ROBERTS CB9 - RMS Replace F1742/720/719 RMU and 307 Distribution UG XLPE or S4718 and replace aged cable CB Heuheu CB7 2575 Taupo $476k 2327 3.3/6.6/11/22kV RMU distribution transformer Hastings, King Street Hastings $211k PVC - RMS SP75FS Taupo, Roberts and Huehue North Feeders

Replace S914/S915/S916. Replace distribution Subtransmission UG up to Napier, Marewa-Faraday Tie Feeder: Replace 2328 3.3/6.6/11/22kV RMU Rotorua $134k 10082 Napier $856k transformer 2451, Fenton Street Rotorua 66kV (PILC) aged cable, Marewa-Faraday Tie [G]

Replace 1718/1719/F1992 RMU and distribution 3.3/6.6/11/22kV CB Hastings, Clive, Main Road, replace HV joint site 2330 3.3/6.6/11/22kV RMU Hastings $135k 10086 Hastings $42k transformer 2702, Haig Street, Hastings (ground mounted) and ABS 1215

Replace F216/441/442 RMU and 2702 RMU with SCADA and 2331 3.3/6.6/11/22kV RMU single CFCC RMU and 1.5MVA transformer Hastings $193k communications equipment Replace radios in Radio Room at Unison 10114 Hastings $40k Karamu Road North, Hastings operating as a single Headquarters system Replace S838/S839/S837. Replace T2512 2332 3.3/6.6/11/22kV RMU transformer Cnr Pukuatua and Tutanekai Rotorua $185k 10152 LV OH Conductor Re-conductor LV spur T3302 Rotorua $69k Streets, Rotorua Zone substations up to 10299 ZS Battery replacement Hastings $27k Replace 1728/1727/1726 Omahu Road, 66kV 2333 3.3/6.6/11/22kV RMU Hastings $77k Hastings, next to Bay Mazda Zone substations up to 10332 33kV insulator replacement – Hawke’s Bay Hastings $50k Replace 1761/1811/1812/3279 RMU. Cnr 66kV 2334 3.3/6.6/11/22kV RMU Hastings $135k Pakowhai Road and Fitzroy Ave, Hastings Zone substations up to 10333 33kV insulator replacement - Taupo Hastings $45k Replace RMU S871/S872/S873 Arawa Street. 66kV Replace RMU S874/S875/S876 Arawa Street. 2335 3.3/6.6/11/22kV RMU Rotorua $223k Replace cable in Arawa Street - Korokai Feeder Table 5-2: Renewal Project List 2019/20 Rotorua

NON-NETWORK DEVELOPMENT MAINTENANCE & RENEWAL SECTION 6 NON-NETWORKSECTION 6 NON- NETWORKDEVELOPMENT DEVELOPMENT MAINTENANCE MAINTENANCE & RENEWAL & RENEWAL 6-16-1 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

NO MATERIAL CHANGES

RISK MANAGEMENT SECTIONSECTION 7 RISK 7 MANAGEMENTRISK MANAGEMENT 7-17-1 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 2019 2019-29-29

NO MATERIAL CHANGES

EVALUATION OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-18-1 UNISON NETWORKSUNISON LIMITED NETWORKS | LIMITEDRGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

CONTENTS 8. EVALUATION OF PERFORMANCE...... 8-2 Introduction to this Section...... 8-2 Review of Physical Progress Against Plan ...... 8-2 8.2.1 Planned CapEx ...... 8-2 8.2.2 Planned Maintenance 2017/18 – 2018/19 ...... 8-18 Review of Financial Progress against Plan...... 8-20 8.3.1 Network Spend Financial Progress 2017/18...... 8-21 8.3.2 Network Spend Financial Progress 2018/19...... 8-23 Review of Service Level Performance ...... 8-25 8.4.1 Service Level Performance 2017/18 ...... 8-25 8.4.2 Service Level Performance 2018/19 ...... 8-27

Table 8-1: Physical Progress of 2017/18 Carryover Projects...... 8-9 Table 8-2: Physical Progress of 2018/19 CapEx Projects...... 8-17 Table 8-3: Physical Progress of Asset Inspection / Condition Assessment...... 8-19 Table 8-4: Physical Progress of Routine and Corrective Maintenance...... 8-20 Table 8-5: Network Spend Financial Progress 2017/18...... 8-21 Table 8-6: Network Spend Financial Progress 2018/19...... 8-23 Table 8-7: Service Level Performance 2017/18 ...... 8-26 Table 8-8: Service Level Performance 2018/19 ...... 8-37

© Unison Networks Limited 2019 88-2-2 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-38-3 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

8. EVALUATION OF PERFORMANCE 8.2.1.1 CapEx Programme of Works 2017/18

Introduction to this Section Constraints and AMP Project No. Category Status Actuals Comments Section 8: Evaluation of Performance provides information to enable stakeholders to understand how Projects Budget well Unison is performing as an asset management organisation. The key performance dimensions 129960 Working at Heights Legislative Complete $38k $70k Over time covered are: (upgrades to assets and and under • physical and financial progress against the plans set out in the last disclosed AMP update for safety) – Regulatory budget • performance against service level targets, and Hawke’s Bay • assessment under the Asset Management Maturity Assessment Tool (AMMAT). 133071 33kV Dynamic Line Other Carryover $300k Carryover The section concludes with an analysis of gaps identified and initiatives that are planned to close these Rating Upgrades Reliability, due to scope gaps. Safety and queries Environment Evaluation of performance in respect of the 2018/19 financial year is undertaken using year-end forecast information, where this is available. 126817 Master Mesh at Mt Quality of Carryover $11k $45k Over time Ngongotaha Supply and under (Dansey Feeder) budget due to scope change Review of Physical Progress Against Plan 126821 Valley Puketapu Quality of Complete $42k $120k Over time In this section, Unison’s performance in delivering on the plans set out in the AMP disclosed in March Omarunui Feeder Supply and under 2018 is reviewed in terms of physical progress (commissioning of works). This evaluation is budget due undertaken for the 2017/18 and 2018/19 financial years, for both capital and maintenance work to scope programmes. change

127561 Valley Hendley Quality of Complete $105k $90k Over time Tutira Rissington Supply and on Feeders budget

8.2.1 Planned CapEx 123933 Ohaaki Zone Asset Complete $204k $230k Completed Capital projects proposed for each financial year as published in Unison’s 2018 AMP are detailed Substation 33kV Replacement 2017/2018 below and include the status of each project as at 31 January 2019. CB1152 and Renewal under Replacement budget

124324 Replace Asset WIP $105k Expect to Transformer 709 Replacement complete by and Renewal March 2019

132870 11kV Reconductor Asset Complete $333k $150k Over budget Charles Street Replacement – changed and Renewal methodology

133153 33kV Insulator Asset WIP $15k Expect to Replacement Replacement complete by and Renewal March 2019

133630 Arataki ZS - Asset Complete $142k $150k Over time Replace 33KV Replacement and on Outdoor CB1444 and Renewal budget (JB424)

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-4-4 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-58-5 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Constraints and AMP Constraints and AMP Project No. Category Status Actuals Comments Project No. Category Status Actuals Comments Projects Budget Projects Budget

132718 Arawa ZS DC Panel Asset Complete $40k $50k Completed 133940 Irongate Asset Complete $1.15M $700k Completed Replacement 2017/2018 Transformer Replacement 2017/2018 and Renewal under Replacement and Renewal over budget budget 132287 Jackson, Nikau, Asset WIP $375k $230k Completed 133591 Arawa 11kV Ripple Asset WIP $120k Expect to Horoeka and Replacement 2017/2018 Plant Upgrade Replacement complete by Galbraith Streets and Renewal over budget and Renewal March 2019 reconductor

133593 Awatoto Substation Asset WIP $200k Expect to 132535 Proactive Asset Complete $60k $30k Over budget - Power Replacement complete by Replacement of Replacement and over Transformer T1 and Renewal March 2019 aged 200A ABS and Renewal time Replacement new Napier transformer 132650 Proactive Asset Complete $49k $30k Completed 132178 Bledisloe Street Asset Complete $493k $360k Over budget Replacement of Replacement 2017/2018 Refurbishment Replacement and over aged ABS in and Renewal over budget and Renewal time Rotorua

132394 Corlett Street Asset Complete $119k $115k On budget 132479 PVC 70mm CU Asset Complete $403k $290k Completed Reconductor of LV Replacement Conductor with Replacement 2017/2018 70mm CU PVC and Renewal ABC, H2S areas and Renewal over budget Arthur, High, Ashley 131231 Faraday ZS - 11kV Asset Complete $1.49M $1.75M and Davidson Switchboard and Replacement Streets Feeder Protection and Renewal Completed Relay Replacement 134622 Rangitane ZS - Asset WIP $150k Expect to together – Replace 33kV Replacement complete by on budget 131264 Faraday ZS - Cable Asset Complete $1.46M $1M Outdoor CB156 and Renewal March 2019 Replacement Replacement (JB424) and Renewal 132890 Reconductor 11kV Asset Complete $96k $65k Over time 134621 Hawke’s Bay Ripple Asset WIP $350k Expect to spur Crownthorpe Replacement and over Plants Replacement complete by Feeder and Renewal budget and Renewal March 2019 132748 Replace Failing Asset Complete $81k $180k Completed 132909 Interruption Cable Asset WIP $750k Expect to Peanut Remote Replacement 2017/2018 G17 - Arbroath Ave, Replacement complete by Controlled Switches and Renewal under Hastings (Trfs 2148, and Renewal March 2019 budget 2149, 2150, 2154) 132726 Replace 1 x old oil Asset Complete $37k $40k Completed 132971 Interruption Cable Asset WIP $450k Expect to 3-Phase Reclosers Replacement 2017/2018 G62 - Waterworth Replacement complete by 15 sites and Renewal on budget Avenue, Napier and Renewal April 2019 (Trfs 1826, 1827, 132728 Replace 1 x old oil Asset Complete $59k $40k Completed 2765) 3-Phase Reclosers Replacement 2017/2018 15 sites and Renewal over budget 133041 Interruption Cable Asset Carryover $150k Deferred due G64 - Oriel Place, Replacement to resource 132727 Replace 3 x old oil Asset WIP $120k Expect to Napier (Trf 1460) and Renewal availability 3-Phase Reclosers Replacement complete by 15 sites and Renewal March 2019

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-6-6 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-78-7 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Constraints and AMP Constraints and AMP Project No. Category Status Actuals Comments Project No. Category Status Actuals Comments Projects Budget Projects Budget

132516 Replace 7/064 CU Asset Complete $392k $370k On budget 133079 Replace RMU Asset Complete $212k $110k Scope Conductor in Replacement and over F3011/3012/3013 Replacement change. Tutukau Road and Renewal time and Renewal Over budget and over 132867 Replace 7/064 GS Asset WIP $130k Expect to time Conductor in Replacement complete by Matahorua Road and Renewal March 2019 133220 Replace RMU Asset WIP $140k Expect to SP106/SP107/SP28 Replacement complete by 132749 Replace Failing Asset WIP $60k Expect to FS/SP27FS and and Renewal March 2019 Peanut Remote Replacement complete by Transformer T302 Controlled Switches and Renewal March 2019 133042 Replace RMU Asset Complete $188k $140k Over budget 132741 Replace Otamauri Asset WIP $100k Expect to SP11LB/SP37FS/S Replacement and over Regulators Replacement complete by P8LB and and Renewal time and Renewal March 2019 Transformer T504

133085 Replace RMU Asset Complete $212k $150k Over budget 133044 Replace RMU Asset WIP $140k Expect to 3161/F3162/3163/F Replacement and over SP146/SP147/SP20 Replacement complete by 3164 and and Renewal time FS and Transformer and Renewal March 2019 Transformer 4153 T423

133160 Replace RMU Asset Complete $188k $95k Scope 133246 Replace RMU Asset WIP $106k $140k Completed 3264/3267/3268/F4 Replacement change over SP193/SP194/SP48 Replacement 2017/2018 389 and Renewal budget and FS and Transformer and Renewal under over time T576 budget

133147 Replace RMU Asset WIP $127k $140k Completed 133194 Replace Asset WIP $110k Expect to 3307/F3308/3309 Replacement 2017/2018 Transformer 19 Replacement complete by and Transformer and Renewal over budget and Renewal March 2019 4484 133316 Replace Asset WIP $140k Deferred due 133296 Replace RMU Asset Complete $654k $140k Transformer 199 Replacement to contractor 3313/F3314/3315 Replacement and RMU and Renewal resourcing and Transformer and Renewal 1967/F1994/1968 and site 4535 Completed constraints as one 133125 Replace RMU Asset Cancelled $95k project. 133331 Replace Asset Complete $110k $110k On budget 3316/F3317/3318 Replacement Over budget Transformer 4416 Replacement and over and Renewal and over and Renewal time time 133174 Replace RMU Asset Cancelled $95k 134624 Working at Heights Legislative WIP $52k $60k Under 3319/F3320/3321 Replacement (upgrades to assets and budget and Renewal for safety) – Regulatory Rotorua 133216 Replace RMU Asset Complete $70k $95k Under 3394/F3395/339 Replacement budget – 132595 OHUG Kennedy OHUG WIP $740k Expect to and Renewal over time Road Phase 3 - complete by Expressway to March 2019 133186 Replace RMU Asset Complete $73k $95k Under Taradale Road 3417/F3418/3419 Replacement budget – and Renewal over time

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-8-8 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-98-9 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Constraints and AMP Constraints and AMP Project No. Category Status Actuals Comments Project No. Category Status Actuals Comments Projects Budget Projects Budget

132613 OHUG Murdoch OHUG Complete $1.24M $1.5M On budget 128983 Waikite/Reporoa Quality of Cancelled $105k Cancelled Road - Southland and over Feeder Comms - Supply due to Road to Railway time Mesh change in Road strategy

133238 Reconfigure a Other Deferred $76k May not be 131362 Horomatangi System Carryover $727k $565k Over budget section of Esk Reliability, required due Feeder Growth Feeder to delta Safety, and to works Reinforcement Environment planned 2020-2022 128980 Maraekakaho IP System Cancelled $20k Cancelled Link Comms - Mesh Growth due to 133594 Roof and Wall Other Complete $29k $20k Over budget change in Cladding Reliability, and over strategy Replacement at Safety, and time Marewa Substation Environment 127560 Te Waka PTP IP System Cancelled $45k Cancelled Link Comms Growth due to 133596 Seismic Upgrade Other Complete $137k $150k Under change in Windsor Fence Reliability, budget strategy Safety, and Environment Table 8-1: Physical Progress of 2017/18 Carryover Projects

133595 Substation Other Complete $142k $125k Over time Fire/security Reliability, and over Upgrades Hastings Safety, and budget Environment 8.2.1.2 CapEx Programme of Works 2018/19

131361 New RMU - Quality of Complete $88k $95k On budget Richmond Feeder Supply and over time Project No. Constraints and Category Status Actuals AMP Comments Projects Budget 128984 Ngaukutu Feeder Quality of Cancelled $80k Cancelled Comms - Mesh Supply due to 136394 11kV Reconductor Asset Complete $351k $175k On time and change in Ferry Road Clive Replacement over budget strategy and Renewal

134729 Raupare Feeder - Quality of Complete $310k $455k Under 137549 11kV Reconductor Asset Carryover $210k Deferred due Contingency Supply budget and Kokako Street, Kea Replacement to resourcing Paralleling link to over time Street and Mallard and Renewal and SAIDI Lowe or Omahu Drive impact Feeders 136298 11kV Reconductor Asset Carryover $45k Deferred due 128982 Taupo North Feeder Quality of Cancelled $90k Cancelled Lister Crescent Replacement to resourcing Comms - Mesh Supply due to and Renewal and council change in restrictions strategy 136335 11kV Reconductor Asset Carryover $45k Rescope 128981 Valley/Kaiwaka Quality of Cancelled $75k Cancelled Wordsworth Crescent Replacement required Feeder - Comms Supply due to and Renewal change in strategy 138234 33kV Insulator Asset Complete $23k $25k On time and Replacement – Replacement on budget Hawke’s Bay and Renewal

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-10-10 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 88-11-11 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Project No. Constraints and Category Status Actuals AMP Comments Project No. Constraints and Category Status Actuals AMP Comments Projects Budget Projects Budget

ODID and Fernhill T2 to 138233 33kV Insulator Asset WIP $11k Expect to Transformer Transpower Replacement - Taupo Replacement complete by timing and Renewal March 2019

138899 Fernhill ZS Earthing Legislative Complete $15k $15k On time and 138647 Ada Feeder - Poles Other Complete $183k $157k On time and Upgrade and on budget 117813 to 117597 - Reliability, on budget regulatory Upgrade PHC 7/0.064 Safety and to DOG Environment 139213 Fleet Street ZS DC Other Carryover $65k Deferred due Upgrade for Comms Reliability, to resource 138021 Arataki ZS-33kV Asset Complete $134k $153k On time and Reliability Safety and availability Outdoor CB1441 Replacement on budget Environment (Takaoka) and Renewal Replacement 139217 Hastings ZS DC Other Carryover $65k Deferred due upgrade for Comms Reliability, to resource 139216 Arawa ZS DC Upgrade Other Carryover $65k Potential Reliability Safety and availability for Comms Reliability Reliability, scope Environment Safety and change Environment 138096 Havelock ZS DC Panel Asset Complete $34k $50k On time and Replacement Replacement under 137308 Bluff Hill ZS, Feeder Asset Carryover $451k $194k On time and and Renewal budget front End Cable Replacement over budget Renewals, 11kV and Renewal 138700 HB Ripple Plants- Other WIP $250k Expected to Fernhill Transmitter Reliability, complete by 138134 Bluff Hill ZS-11kV Asset WIP $1.37M Expected to upgrade Safety and March 2019 Switchboard and Replacement complete by Environment Feeder Relay and Renewal March 2019 Replacement 136280 Heathcote Feeder – Other Carryover $83k Deferred due Sub 914 – Three (3) Reliability, to resource 139036 Civic Feeder Front End Asset Carryover $194k On hold due 11kV Cables Safety and availability Cable Replacement, Replacement to potential terminated in the HV Environment Heretaunga Street and Renewal rescope cabinet West, Hastings

137886 Interruption Cable Asset Carryover $669k Deferred due 139255 Digital VHF Trial Quality of Carryover $75k Deferred due Group 11 - Henderson Replacement to resource Supply to potential Road x Folkestone and Renewal availability scope Drive, Flaxmere (Trfs change 1002, 1948, 1949, 1950, 3123) 138509 Esk ZS - 11kV Recloser Asset Complete $80k $117k On time and Replacement Replacement under 138530 Interruption Cable Asset Carryover $655k Deferred due and Renewal budget Group 18 - Dundee Replacement to resource - CapEx Drive x Montrose Street and Renewal availability Hastings (Trfs 2151, 139127 Fault Passage Indicator Other Carryover $465k Deferred due 2153, 2154, 2155) Installation Reliability, to materials Safety and availability 137856 Interruption Cable Asset Carryover $919k Deferred due Environment Group 19 - Dundee Replacement to resource Drive x Wilson Street, and Renewal availability 136836 Fernhill GXP - Quality of Carryover $1.82M Project Hastings (Trfs 2011, Transpower 33 kV Supply planned for 2150, 2152, 2156) two-year duration due

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-12-12 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-138-13 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Project No. Constraints and Category Status Actuals AMP Comments Project No. Constraints and Category Status Actuals AMP Comments Projects Budget Projects Budget

137404 Karamu Feeder, Asset Carryover $88k Deferred due 137905 Proactive replacement Asset Complete $47k $48k On Time and Replace Underground Replacement to resource of aged ABS Taupo Replacement On Budget Cables, 11kV, 2x, RMS and Renewal availability and Renewal 3603 to pole 119961 & RMS 3604 to RMS 139357 Rainbow Generator Quality of WIP $600k Expected to 1611 Supply complete by March 2019 136897 LV Reconductor 4 Asset Carryover $41k $72k On time and spans from Pole Replacement under 138232 Rangitane Rd ZS - Asset WIP $148k Expected to 160049 and Renewal budget 33kV Feeder Protection Replacement complete by Relay Replacement (2x and Renewal March 2019 139020 Mangatahi Feeder Quality of Cancelled $70k Cancelled Bays) Comms Supply due to change in 138013 Rangitane ZS – Asset WIP $152k Expected to strategy Replace 33kV Outdoor Replacement complete by CB1425 (Takaoka) and Renewal March 2019 136380 Masefield Avenue Asset Carryover $418k Deferred due Refurbishment Replacement to resource 136208 Reconductor Puketapu Asset WIP $85k Expected to and Renewal availability to Omaruni 7/064 Replacement complete by Copper Link and Renewal March 2019 139014 Ongaroto Feeder Quality of Cancelled $85k Cancelled Comms Supply due to 136203 Re-conductor Spur to Asset WIP $50k Expected to change in TX 1073 Replacement complete by strategy and Renewal March 2019

138466 Owhata 500Hz Asset Cancelled $120k Cancelled as 136416 Reconductor Spur to Asset WIP $40k Expected to Transmitter Upgrade Replacement functionality TX 748 Replacement complete by and Renewal replaced at and Renewal March 2019 an alternate location 136359 Remove RMU Asset WIP $36k Expected to 1657/1658/1656 Replacement complete by 139019 Paki Paki Feeder Quality of Cancelled $70k Cancelled and Renewal March 2019 Comms Supply due to change in 138122 Replace 2 x failing Asset Cancelled $86k Work strategy Peanut Remote Replacement completed Controlled Switches and Renewal under prior 138816 Patoka ZS security Other Complete $61k $41k On time and projects Fencing Upgrade Reliability, over budget Safety and 136225 Replace 7/064 CU Asset Carryover $340k Deferred due Environment conductor in Replacement to resource Mangamingi Road and Renewal availability 137909 Proactive Replacement Asset Complete $135k $112k On time and of aged ABS Hawke’s Replacement over budget 136512 Replace Corroded GS Asset Carryover $170k Deferred due Bay and Renewal 11kV Conductor Replacement to resource Waipoapoa Road and Renewal availability 137945 Proactive Replacement Asset Complete $50k $62k On time and of aged ABS Rotorua Replacement On Budget 136358 Replace RMU Asset Complete $75k $86k Under and Renewal 1479/206/1242 Replacement budget and Renewal

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-14-14 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-158-15 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Project No. Constraints and Category Status Actuals AMP Comments Project No. Constraints and Category Status Actuals AMP Comments Projects Budget Projects Budget

136360 Replace RMU Asset WIP $142k Expected to 136372 Replace RMU Asset WIP $224k Expected to 1829/1827/1828 Replacement complete by SP12LB/SP13LB/ Replacement complete by and Renewal March 2019 SP51FS and Renewal March 2019

136361 Replace RMU 2071 Asset Complete $97k $96k On time and 136373 Replace RMU Asset WIP $397k Expected to Replacement on budget SP191/SP192/SP49FS, Replacement complete by and Renewal Richmond Feeder and and Renewal March 2019 Rainbow Feeder 136362 Replace RMU Asset WIP $90k Expected to frontend 3368/F3369/3370 Replacement complete by and Renewal March 2019 136374 Replace RMU Asset WIP $133k Expected to SP205/SP206/SP52FS Replacement complete by 136363 Replace RMU Asset Complete $145k $139k On time and and Renewal March 2019 3404/F3405/3406 and Replacement on budget UG cable from RMS and Renewal 136375 Replace RMU Asset Carryover $169k Deferred due 3404 SP53FS/SP214/SP213 Replacement to resource and Renewal availability 136364 Replace RMU Asset Carryover $96k Deferred due 3411/F3412/3413 Replacement to resource 137153 Replace suspect Asset WIP $170k Expected to and Renewal availability Copper LV Conductor Replacement complete by Scott Ave and Renewal March 2019 136365 Replace RMU Asset WIP $107k Expected to 3420/F3421/3422/ Replacement complete by 136190 Replacement of aged Asset Carryover $120k Deferred due F3423 and Renewal March 2019 Copper Conductor, Replacement to resource Kahoroa Feeder poles and Renewal availability 136366 Replace RMU Asset Complete $44k $151k On time and 226840 to 225852 F3440/3442/3441 and Replacement under Transformer 4268 and Renewal budget due 138265 Seismic Upgrade Other Complete $103k $118k On time and to scope Havelock North ZS Reliability, on budget change fence Safety and Environment 136367 Replace RMU Asset Complete $230k $144k On time and S1044/S1045/S1046 Replacement over budget 137972 Sophia Street LV re- Asset Complete $491k $350k On time and and Renewal conductor Replacement on budget and Renewal 136371 Replace RMU Asset Complete $64k $76k On time and S5202/SP197/SP198 Replacement on budget 138093 Springfield ZS DC Asset Carryover $28k $50k On time and and Renewal Panel Replacement Replacement under and Renewal budget 136368 Replace RMU Asset WIP $104k Expected to S827/S828/S829 Replacement complete by 138269 Substation Fire/security Other WIP $125k Expected to and Renewal March 2019 Upgrade Napier Reliability, complete by Safety and March 2019 136369 Replace RMU Asset Complete $175k $207k On time and Environment S830/S831/S832/S833/ Replacement on budget S6163 and Renewal 137289 SWER mods in White Other WIP $55k Expected to Road Reliability, complete by 136370 Replace RMU Asset Complete $104k $82k On time and Safety and March 2019 S843/S844/S845 Replacement on budget Environment and Renewal

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-16-16 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-178-17 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Project No. Constraints and Category Status Actuals AMP Comments Project No. Constraints and Category Status Actuals AMP Comments Projects Budget Projects Budget

139362 Taupiri Off Grid Quality of WIP $200k Expected to 138773 Working at Heights – Legislative WIP $42k Expected to Solution Supply complete by Hawke’s Bay and complete by March 2019 regulatory March 2019

139016 Taupo Plains Feeder Quality of Cancelled $65k Cancelled 138775 Working at Heights - Legislative WIP $18k Expected to Comms Supply due to Rotorua and complete by change in regulatory March 2019 strategy 138774 Working at Heights - Legislative WIP $18k Expected to 138893 Taupo, Richmond Ave, Asset Carryover $189k Deferred due Taupo and complete by Wharewaka Feeder, Replacement to resource regulatory March 2019 Replace 2 x 11kV and Renewal availability cables from 138050 ZS Battery Asset Complete $17k $24k On time and 8118/F8101/8119 on Replacement Replacement on budget condition and Renewal

139018 Te Aute, Waimarama, Quality of Cancelled $75k Cancelled 138206 ZS Ceiling Insulation Asset WIP $54k Expected to Whakapirau Feeders Supply due to Replacement complete by Comms change in and Renewal March 2019 strategy Table 8-2: Physical Progress of 2018/19 CapEx Projects 138095 Tomoana ZS DC panel Asset Complete $53k $60k On time and and Battery Bank Replacement on Budget Replacement and Renewal

138515 Toronui Earth Fault Other Carryover $82k Deferred due Protection Upgrade Reliability, to resource Safety and availability Environment

138240 Transformer Bunding – Asset WIP $242k Expected to Hawke’s Bay Replacement complete by and Renewal March 2019

136270 Upgrade Conductor Asset Complete $680k $395k On time and from Otamauri Replacement over budget Regulator to R4373 and Renewal

139017 Waimarama Feeder Quality of Cancelled $75k Cancelled Comms Supply due to change in strategy

136183 Waiotapu line diversion Asset WIP $114k Expected to rear of Benny Bee Replacement complete by and Renewal March 2019

136904 Warwick Crescent 11kV Asset Complete $105k $62k On time and reconductor Replacement over budget and Renewal

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-18-18 SECTION SECTION 8 8EVALUATION EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-198-19 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Asset Inspection / Condition Progress 2017/18 Progress 2018/19 Assessment 8.2.2 Planned Maintenance 2017/18 – 2018/19 Power Transformer – Annual DGA Oil Complete On target for completion Maintenance programmes described in Section 5 – Lifecycle Asset Management of Unison’s 2017 Tests AMP are detailed below and include the status of the programme as at the end of each financial year. The 2018/19 progress is forecasted as at the end of March 2019. Partial Discharge – Two-yearly Test for Complete On target for completion Circuit Breakers The programmes have remained reasonably consistent so progress for each year is presented in one

table to allow a comparison to easily be made between financial years. Two-monthly Detailed Inspections of Complete On target for completion Voltage Regulators

Asset Inspection / Condition Recloser and Remote-Control Switch - On target for completion On target for completion Progress 2017/18 Progress 2018/19 Assessment Two-yearly Detailed Inspection and Operational Tests Annual 33kV Line Visual Inspection Complete On target for completion Distribution Equipment Earth Tests – Five- On target for completion On target for completion Five-Yearly Overhead Line Feeder Complete On target for completion yearly Inspections Distribution Equipment Oil Testing Complete Going forward it is proposed Annual Aerial Inspection 100% complete. Programme has been to discontinue this Going forward it is proposed discontinued programme in favour of more to discontinue this rigorous annual inspection programme in favour of more rigorous ground-based Five-yearly Inspection of Ground-Mounted Complete At risk for completion by the condition assessment (to be Low Voltage Distribution Equipment end of the year due to confirmed) (including Minor Repairs) contractor resourcing availability Deuar Pole Inspection Phase 2 on track to meet Phase 2 on track to meet year 1 targets Phase 2 year 2 targets. Phase 2 Daily Monitoring of Control Room SCADA Complete On target for completion (softwood poles) completion (softwood poles) completion Equipment expected by April 2021 expected by April 2021 Table 8-3: Physical Progress of Asset Inspection / Condition Assessment Ultrasound Testing for Partial Discharge to Complete Complete Identify Insulator Defects (Acoustic Survey)

Routine and Corrective Maintenance Progress 2017/18 Progress 2018/19 Annual Ground Mounted Inspection Complete On target for completion

Cable Testing Not completed. Progress Not completed. Progress Vegetation Control Complete Management of this impacted by contractor impacted by change in programme has changed. resource availability and technology and difficulties in There are no longer difficulties in scheduling scheduling outages volumetric targets, trees are outages being prioritised based on risk with appropriate Level 1: Fortnightly Substation Visual Complete On target for completion measurements being defined Inspections for 19/20

Level 2: 3-monthly Substation Detailed Complete On target for completion Transformers – Two-yearly Service Complete On target for completion Inspections Tap Changers – Two-yearly or Six-yearly Complete On target for completion Zone Substation Earth Tests – 5-yearly Complete 100% complete Service, depending on Tap Changer Type

Zone Substation Thermo-vision – Annually Complete 100% complete Station Regulators – Two-yearly, Five- Complete 80% expected completion. yearly or 10-yearly Service, depending on Remainder to be completed Make and Model in 2019/20

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-20-20 SECTION SECTION 8 EVALUATION8 EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-218-21 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Routine and Corrective Maintenance Progress 2017/18 Progress 2018/19 8.3.1 Network Spend Financial Progress 2017/18 Circuit Breaker SF6 – Three-yearly Service Complete 90% expected completion. Remainder to be completed in 2019/20 Forecasted Expenditure Forecast Category Variance % from AMP Update ($'000s) Expenditure ($'000s) Circuit Breaker Vacuum – Three-yearly Complete On target for completion Service CapEx

Circuit Breaker Oil – Two-yearly Service Complete On target for completion Consumer Connection 11,329 11,530 2%

Circuit Breaker Oil – Fault Service after Complete On target for completion System Growth 1,943 1,450 -25% every Fault Operation

Disconnectors and Earth Switches – Ten- Complete On target for completion Asset Replacement and Renewal 19,000 17,649 -7% yearly Asset Relocations 1,213 937 -23% Annual Ripple Plant Service Complete Complete

Zone Substation Batteries – Three-monthly Complete On target for completion Reliability, Safety and Environment 1,595 2,159 35% General Service, 6-monthly Discharge Tests Network CapEx 35,837 33,726 -6% Zone Substation – Electro-Mechanical Complete On target for completion (Four-yearly), Electronic (Six-yearly) and OpEx Microprocessor (Six-yearly) Service Interruptions and 3,592 3,659 2% Voltage Regulators, Reclosers and Complete On target for completion Emergencies Sectionalisers – Two-yearly or Five-yearly Service depending on Make and Model Vegetation Management 1,314 1,657 26%

Targeted Cleaning of Insulators in Areas Complete Complete Routine and Corrective 3,068 2,965 -3% prone to accumulation of residue Maintenance and Inspections

Table 8-4: Physical Progress of Routine and Corrective Maintenance Asset Replacement and Renewal 1,754 1,977 13%

Network Maintenance 9,728 10,258 5%

Table 8-5: Network Spend Financial Progress 2017/18 Review of Financial Progress against Plan In this section, Unison’s performance in delivering the plans set out in the AMP disclosed in March 2018 is reviewed in terms of financial progress (cost performance). This evaluation is undertaken for the 2017/18 and 2018/19 financial years for both capital and maintenance programmes and evaluates Variance Explanation System Growth margin exclusive financial performance. The Horomatangi Feeder reinforcement was delayed due to resource availability. This was $600k of Explanations are provided in respect of works programmes with a variance of greater than 10% of the remaining spend forecast for system growth. This had a considerable impact on the forecasted budget. end of the year spend.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-22-22 SECTION SECTION 8 EVALUATION8 EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-238-23 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Variance Explanation Asset Relocations 8.3.2 Network Spend Financial Progress 2018/19 The Asset Relocations spend varied due to changes in construction timelines required by the relevant roading authorities. Forecasted Expenditure Forecast Category Variance % from AMP Update ($'000s) Expenditure ($'000s)

CapEx Variance Explanation Other Reliability Safety and Environment Consumer Connection 9,608 11,910 21% Additional spend was expected to install generators on the Waimarama and Rotoma Feeders. These projects were initiated to remediate reliability issues in those areas, however due to delays in sourcing System Growth 13 563 433% suitable generators, these projects were deferred until the 2018/19 year. Asset Replacement and Renewal 21,866 22,399 2%

Asset Relocations 3,545 2,190 -38%

Variance Explanation Vegetation Management Reliability, Safety and Environment 5,316 3,981 -25% At the time of the forecast, the business strategy for vegetation management was being reviewed. This resulted in the following changes;

An additional cutting crew was added to each region to support the transition toward an increase in Network CapEx 40,349 41,044 1% the amount of proactive work being completed. This change has been implemented in order to deliver OpEx greater compliance with the Electricity (Hazards from Trees) Regulations 2003. Service Interruptions and Additionally, some cost was incurred investigating options for better interactions and collaboration 2,960 4,215 49% between Unison and customer/tree owners to remove trees within falling distance beyond the scope Emergencies of the tree regulations. This change is being investigated due to the significant impact these trees Vegetation Management 1,536 1,839 25% continue to have on network performance.

Routine and Corrective 3,602 2,765 -20% Maintenance and Inspections

Asset Replacement and Renewal 1,865 2,193 23% Variance Explanation Asset Replacement and Renewal Network Maintenance 9,963 11,013 16% Overhead line maintenance, in particular feeder maintenance following inspections was particularly

high in the last quarter of the year. Table 8-6: Network Spend Financial Progress 2018/19

Variance Explanation – Customer Connections

This variance has resulted primarily from increased subdivisional and commercial activities this year. There has also been a significant increase in domestic connections in both urban and rural areas.

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-24-24 SECTION SECTION 8 EVALUATION8 EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-258-25 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Variance Explanation – System Growth Variance Explanation – Vegetation Management

The 2018/19 variance is due to the completion of a carryover project – Horomatangi Feeder The variance in this category is due to a change in how Vegetation Management costs are recovered. reinforcement ($582k).

Review of Service Level Performance Explanation – Asset Relocations 8.4.1 Service Level Performance 2017/18 Although there has been a significant increase in requests from council and roading authorities to relocate assets, due to the construction timing for the Te Ngae Road project being delayed, a The table below shows the current service level framework with targets as per Section 3 and the significant portion of this year’s forecast spend will be deferred into the next financial year. forecast information as per the 2017 AMP Update compared to actual results for the 2017/18 Financial Year.

Asset Target Forecast Actual Management Service Level Unit/Type Variance 2017/18 2017/18 2017/18 Variance Explanation – Reliability Safety and Environment Objective The variance in this category is due to the carryover of a number of projects. Two in particular comprise Accidents Causing a significant portion of the variance. The Fernhill GXP Transpower ODID and Transformer Upgrade Number of Harm to a Member 0 0 0 As Forecast which was deferred to align with Transpower’s timings, and the fault passage indicator installation, Accidents of the Public which was deferred due to resource constraints. Serious Harm or Lost-time Injury to Number of Health and 0 3 5 67% Employees or Injuries Safety Contractors Performance Variance Explanation – Service Interruptions and Emergencies Injuries to The variance in this category is due an increased volume of callouts for small faults affecting one Employees or Number of customer. A project has been initiated to investigate potential process changes to improve efficiencies. Contractors <12 7 8 14% Injuries Requiring Medical Treatment

Surveyed Customer % >75% 75.9% 75.9% As Forecast Variance Explanation – Asset Replacement and Renewal - OpEx Satisfaction

The variance in this category is due primarily to higher than expected spend on Overhead Line Net Promoter Score Score +6 +11.3 +11.3 As Forecast Maintenance following feeder inspections and work related to Chorus Pole replacements. SAIDI Minutes 88.1 – 99.1 129.35 128.7 As Forecast

Customer SAIFI Interruptions 1.74 – 1.94 2.18 2.14 As Forecast Service Performance Variance Explanation – Routine and Corrective Maintenance and Inspection Revenue per ICP $ (nominal) <$960 $1,353 $1,355 As Forecast

The variance in this category is due to lower than expected volumes of corrective work on specific ≤20 events Restoration of Urban 59 83 41% asset classes, including communication equipment and streetlights. An additional contributor was ≥3 hours Supply for delays to the cable testing programme due to the trial of new test technologies. Unplanned ≤10 events Interruptions Rural 37 42 14% ≥6 hours

© Unison Networks Limited 2019 © Unison Networks Limited 2019 88-26-26 SECTION SECTION 8 EVALUATION8 EVALUATION OF PERFORMANCE OF PERFORMANCE SECTION 8 EVALUATIONSECTION 8 EVALUATION OF PERFORMANCE OF PERFORMANCE 8-278-27 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORYASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

Performance has improved in Central Region across all service levels from 2016-17 and remains the Asset Target Forecast Actual Management Service Level Unit/Type Variance same for remote rural faults in Hawke’s Bay. Rural breaches have seen a small increase due to 2017/18 2017/18 2017/18 Objective environmental factors, predominantly lightning strikes on transformers. The primary increase in breaches have been in Hawke’s Bay Urban faults, due to motor vehicle ≤5 events Remote rural 15 17 13% accidents. In many motor vehicle incidents, emergency services block or limit access to the fault area ≥12 hours which increases restoration times. Urban breaches due to vegetation faults have also increased since Forward Work 2016-17. Years ≥3 rolling 2 years 2 years As Forecast Planning Horizon

Operating $ (nominal) <$328 $348 $341 -2% Expenditure per ICP 8.4.1.4 Explanation for Variance – Faults per 100km of Network Cost and Total <7.4 9.6 13.03 36% Efficiency Faults per 100km have exceeded both overhead and underground targets. A large number of Performance Faults per 100km of Overhead <7.6 10.42 14.36 38% overhead faults caused by wind damage during storms in April 2017 and January 2018 contributed to Network this measure not being met. Motor vehicle accidents was also another, significant contributing factor. Underground <6.2 5.3 6.55 24% Underground faults per 100km performed better in comparison to overhead faults. During Cyclone

Benefits Realised $M Cook (April 2017) multiple outages on the 33kV overhead network caused an underfrequency event >14.5 15.4 15.0 As forecast from Smart Grid cumulative and outages on several 11kV underground feeders. Excluding the outages, Unison would have met its target for underground faults per 100km. Table 8-7: Service Level Performance 2017/18

8.4.2 Service Level Performance 2018/19 8.4.1.1 Explanation for Variance – Serious Harm or Lost-time Injury to Employees or Contractors The table below shows the current service level framework with targets as per Section 3 and Additional sprain injuries resulted in a higher number of lost time Injuries than forecast. actuals/forecasts for 2018/19 year-end where available. The Unison Group continues to focus on physical and mental wellbeing initiatives for employees and contractors to prevent injuries from occurring.

Key Result Asset Management Target 2018 Forecast Measurement Variance Area Objective / 2019 2018 / 2019

Internal audits of Number of ≥ 6 15 On Target 8.4.1.2 Explanation for Variance – Injuries to Employees or Contractors Requiring Medical Treatment AMS processes are internal audits completed according completed to the plan according to The additional medical treatment injury compared to forecast was the result of a splinter that had Unison’s become infected. Internal Audit Despite this increase compared to forecast the overall target for the year was still achieved. Framework

Assurance Unison carries Percentage of 100 % 100% On Target essential spares, reactive jobs materials and where all 8.4.1.3 Explanation for Variance – Restoration of Supply for Unplanned Interruptions equipment to recover materials are from the failure of a delivered on Service levels forecasts were exceeded for urban, rural and remote rural faults in 2017-18. The count significant asset or time in full of service level breaches has increased relative to 2016-17, however the average SAIDI impact has asset system (DIFOT) decreased. Unison has effective A periodic Met Met On Target recovery plans in review of

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Key Result Asset Management Target 2018 Forecast Key Result Asset Management Target 2018 Forecast Measurement Variance Measurement Variance Area Objective / 2019 2018 / 2019 Area Objective / 2019 2018 / 2019

place which can be fitness-for- Ensure risk of non- Percentage of 100 % 100% On Target rapidly implemented purpose of compliance with the critical to comprehensively contingency Electricity (Hazards vegetation return full services plans has from Trees) notices after a significant occurred in the Regulations 2003 is addressed external event last 24 months as low as reasonably within regulatory practicable period Unison has effective A test of Met Met On Target recovery plans in contingency Ensure risk of non- Percentage of ≥ 50 % 18% 32% place which can be plans for a compliance with the non-urgent rapidly implemented significant Electricity (Hazards vegetation to comprehensively external event from Trees) notices return full services has occurred in Regulations 2003 is addressed after a significant the last 18 as low as reasonably within regulatory external event months, either practicable period through a simulation or a Ensure risk of non- Percentage of ≥ 50 % 38% 12% real event compliance with the urgent Electricity (Hazards vegetation Unison has effective Number of high 0 0 On Target from Trees) notices recovery plans in or medium Regulations 2003 is addressed place which can be priority findings as low as reasonably within regulatory rapidly implemented from the last practicable period to comprehensively test of return full services contingency Conform to the Percentage of ≤ 20 % 32% 12% after a significant plans for a timing of advertised planned external event significant shutdown windows shutdowns external event for planned work finishing outside which are of notified outstanding and outage window have not been addressed in Deliver a compliant Number of ≤ 12 16 Not Met the agreed and appropriate verified power timeframe Customer quality of supply quality Service complaints The organisation is Number of ≤ 24 42 Not Met managed sustainably instances of Deliver a compliant The number of 0 2 Not Met to preserve Unison’s adverse media and appropriate verified power reputation about Unison quality of supply quality complaints Ensure that no Number of 0 3 Not Met unresolved formal complaint instances of more than three reaches the stage of unanticipated months after legal challenge or legal challenge being verified government or government investigation in investigation Annual Network Actual network ± 10% 1% On Target relation to asset occurring CapEx programme is CapEx is ±10% management Financial delivered to budget of total budget. (includes Network Programme

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Complex, Specialist delivered within Vegetation and minor CapEx tolerance limits Management) Provisions) Network Complex Actual project ≥ 90 % 3% 5% Annual Network Actual Asset ± 10% 23% 12% and Specialist expenditure is OpEx programmes Replacement projects are ±20% of are delivered to and Renewal delivered to budget estimate budget (Preventive OpEx is ±10% registered in the Maintenance, of total budget. AMP (as a monitoring and Programme percentage of inspections, delivered within total number of Corrective/Reactive tolerance limits projects Maintenance and completed each Vegetation year) Management) The AMS supports Value of ≥ $1,5M $2.363M On Target Annual Network Actual Reactive ± 10% 25% Not Met the Corporate benefits arising OpEx programmes OpEx is ±10% Strategic Objective of from Smart Grid are delivered to of total budget. realising benefits compared to budget (Preventive Programme from the smart grid targets Maintenance, delivered within investment monitoring and tolerance limits inspections, Health and safety Number of 0 2650 Not Met Corrective/Reactive risks posed by urgent and Maintenance and known asset defects critical asset Vegetation are followed up defects not Management) within required followed up timeframes returning within required Annual Network Actual Routine ± 10% -20% 27% residual risk to within timeframes OpEx programmes & Corrective Unison’s risk are delivered to Maintenance appetite. budget (Preventive and Inspection Maintenance, OpEx is ±10% No environmental Number of 0 0 On Target monitoring and of total budget. breaches resulting in environmental inspections, Programme Health, Safety environmental harm breaches Corrective/Reactive delivered within and or near miss due to resulting in Maintenance and tolerance limits Environment the failure or an environmental Vegetation (HSE) asset, asset system contamination Management) or associated due to the containment. failure or an Annual Network Actual ± 10% 25% 15% asset, asset OpEx programmes Vegetation system or are delivered to Management associated budget (Preventive OpEx is ±10% containment Maintenance, of total budget. monitoring and Programme Unison staff and External audit: 0 0 On Target inspections, delivered within contractors observe Number of non- Corrective/Reactive tolerance limits environmental compliances Maintenance and guidelines and measured legislation relevant to through biennial

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Unison assets, external business including chemicals, environmental motivations controlled gases and audit hazardous programme by The Asset Whether a ten ≥ 2 2 On Target substances competent Management Plan year forward assessor provides a ten-year view on risks in forward view on risks the assets No incidents Number of 0 0 On Target in the asset and based on the resulting in harm to asset failures optimised and AMP is members of the resulting in an actionable projects to presented, public due to asset injury (serious control those risks reviewed and failures, or near harm) or fatality accepted at the misses which had to the public six-monthly the potential to cause AMP review harm meeting

No incidents Number of 0 0 On Target Procedures that Number of 0 0 On Target resulting in harm to asset failures represent an equipment Unison staff or resulting in an organisational failures of contractors due to injury (serious capability to critical assets asset failures, or harm) or fatality undertake risk-based where the asset near misses which to the staff or Asset Renewal was not had the potential to contractor Planning are utilised scheduled for cause harm replacement in year one or two Very high priority Number of 0 18 Not Met of the asset continual continual management improvement improvement plan opportunities are opportunities completed within 90 with a priority of Procedures that Number of ≤ 1 1 On Target days of being 5 or 6 not represent an verified power assigned a priority completed organisational quality ranking within 90 days capability to complaints of being undertake risk-based which no prioritised Network projects in the Development asset Innovation and Implement an Asset External audit: Certified Certified Met Planning are utilised management Continual Management System certification by plan would have Improvement aligned with ISO appropriately addressed 55001 accredited and competent Frequency of Baseline versus < 63.6 103.5 Not Met assessor equipment failures actual declining from equipment Successful delivery Internal audit: ≥ 70 % 0% 70% 2011/12 – 2015/16 failure of Capability Projects Assessment of Network average baseline frequency initiated under the deliverables and Reliability AMS Programme outcomes of Meet or exceed Internal ≤ 14.5 10.34 On Target Capability internal business business target Projects against targets for SAIDI for SAIDI original caused by equipment caused by

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failures and human equipment Unison personnel are Number of post- 0 0 On Target error on the part of failures and competent and project reviews Unison human error consistently observe of capability versus actual good work practices projects SAIDI as defined under the undertaken Asset Management Meet or exceed the Commerce ≤ 110.2 106.51 On Target System lower of the SAIDI Commission and SAIFI targets limit versus Unison personnel are Number of post- ≥ 5 5 On Target from Commerce actual SAIDI competent and project reviews Commission (Default consistently observe of network Price-quality Path), good work practices projects and Hawke’s Bay as defined under the undertaken Power Consumers' Asset Management Trust (SCI) System

Meet or exceed the Commerce ≤ 2.146 1.88 On Target Employees are Policy Completed Completed Met lower of the SAIDI Commission aware of Unison’s integrated into and SAIFI targets limit versus Asset Management Unison from Commerce actual SAIFI Policy and induction Commission (Default understand the programme Price-quality Path), principles in relation and Hawke’s Bay to their roles Power Consumers' Trust (SCI) Employees are Policy posted Completed Completed Met aware of Unison’s on the walls in People receive asset Number of new 0 0 On Target Asset Management all areas of management training role or job Policy and Unison and and development in description understand the UCSL line with the changes that principles in relation requirements of their are missing to their roles role competencies aligned to the Employees are Policy roadshow Completed Completed Met asset aware of Unison’s and annual management Asset Management refreshers system Policy and delivered to understand the relevant groups People and Records of asset Number of non- 0 0 On Target principles in relation in the business Competency management training conformances to their roles and relevant from external competencies and audit of records Contractor health Number of 0 0 On Target qualifications of asset and safety severity 1 non- attained are management performance targets conforming Service maintained for training, are met contractor Delivery Unison people competencies internal health and and safety qualifications audits are maintained effectively

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Contractor health Number of ≤ 10 0 On Target and quality and safety severity 2 non- outcomes performance targets conforming are met contractor Contractor personnel Number of ≤ 30 30 On Target internal health are competent and severity 4 non- and safety consistently observe conforming audits good work practices internal audits and meet Unison of contractor Contractor health Number of ≤ 52 28 On Target quality requirement. work practices and safety severity 3 non- and quality performance targets conforming outcomes are met contractor internal health Ensure up to date Average ≤ 30 24 On Target and safety asset information number of days audits through timely to process as- processing of built information Contractor health Number of ≤ 20 8 On Target received as-built is below agreed and safety severity 4 non- information into target performance targets conforming Unison’s enterprise are met contractor systems internal health and safety On time delivery of Percentage of ≥ 90 % 38 % 52 % audits network CapEx network CapEx Complex and Complex and Contractor personnel Number of ≤ 0 0 On Target Specialist projects Specialist are competent and severity 1 non- projects consistently observe conforming delivered on good work practices internal audits time and meet Unison of contractor quality requirements work practices Preventive Number of 270 276 Unfavourable and quality Maintenance backlog preventive outcomes is managed maintenance effectively tasks that were Contractor personnel Number of ≤ 3 0 On Target not completed are competent and severity 2 non- in the month consistently observe conforming planned good work practices internal audits and meet Unison of contractor Table 8-8: Service Level Performance 2018/19 quality requirements work practices and quality outcomes.

Contractor personnel Number of ≤ 90 88 On Target 8.4.2.1 Explanation for Variance – Number of instances of adverse media about Unison are competent and severity 3 non- The major factor for our variance was the significant amount of media coverage in November due to consistently observe conforming the widespread Taupo outage. This was following a Transpower fault at the Wairakei Substation which good work practices internal audits and meet Unison of contractor amounted to approximately 65 media mentions (regarding the outage). Of these mentions, 50 were quality requirements work practices neutral, ten were negative and five were positive.

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Unison also received more negative media attention than usual in January - around the New Year storm which caused major power outages across all of Unison’s network regions - and in April - comments suggesting Unison will be facing legal action for the Waimarama Fire in February 2017. 8.4.2.6 Explanation for Variance – Number of verified power quality complaints

On the whole, media coverage for the year has been mainly neutral or positive. The above topics have There has been an increase in voltage complaints in relation to new solar installations cutting out on been anomalies which have caused the number of instances of adverse media about Unison to exceed over voltage. This over voltage commonly occurs during the middle of the day and is easily remedied the target. by changing the voltage tap setting at the local transformer. The “traditional” under voltage issues which usually require significant alterations to the network are becoming less common.

8.4.2.2 Explanation for Variance – Number of instances of unanticipated legal challenge or government investigation occurring 8.4.2.7 Explanation for Variance – The number of verified power quality complaints unresolved more than three months after being verified A workshop incident resulted in an ongoing Worksafe NZ investigation. Also, Unison is defending its position in relation to a contractual matter which may lead to litigation or mediation. The variance is due to one project where the work took longer than expected. The project was initially scheduled for construction during September 2018. Due to the focus on mitigating non-compliant poles, this project was delayed.

8.4.2.3 Explanation for Variance – Percentage of urgent vegetation notices addressed within regulatory period

The percentage of urgent vegetation notices addressed within the regulatory period have not met their 8.4.2.8 Explanation for Variance – Actual Asset Replacement and Renewal OpEx is ±10% of total budget. targets due to ineffective regulations and the volume of notices waiting to be cut. As well as the backlog Programme delivered within tolerance limits of existing notices, Unison has implemented systems to make identifying trees close to the network much easier for both internal and external stakeholders. This combined with an increase in severe The variance in this category is due primarily to a higher than expected spend on Overhead Line weather and having to revisit the same sites has led to Unison developing more effective processes Maintenance following feeder inspections and work related to Chorus Pole replacements. to risk prioritise work and create efficiencies in order to become more compliant. Unison, in collaboration with UCSL has placed its vegetation manager with its contractor to manage all vegetation crews. The aim to is implement and imbed new risk-based processes to achieve its vegetation strategy, thereby reducing the network impact of vegetation and increase efficiencies. 8.4.2.9 Explanation for Variance – Actual Reactive OpEx is ±10% of total budget. Programme delivered within tolerance limits

The variance in this category is due an increased volume of callouts for small faults affecting one customer. A project has been initiated to investigate potential process improvements to improve 8.4.2.4 Explanation for Variance – Percentage of non-urgent vegetation notices addressed within regulatory efficiency in this area. period

Refer to urgent vegetation notices above.

8.4.2.10 Explanation for Variance – Actual Routine & Corrective Maintenance and Inspection OpEx is ±10% of total budget. Programme delivered within tolerance limits

8.4.2.5 Explanation for Variance – Percentage of planned shutdowns finishing outside of notified outage The variance in this category is due to lower than expected volumes of corrective work on specific window asset classes, including communication equipment and streetlights. An additional contributor was The majority of non-conformance came from unforeseen factors such as ground conditions and delays to the cable testing programme due to the trial of new test technologies. weather. It is expected the implementation of the Works Delivery project will reduce non- conformances.

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capability building projects with the University of Canterbury to improve the understanding of the condition of overhead conductors and the factors which impact the most on condition. The outputs of 8.4.2.11 Explanation for Variance – Actual Vegetation Management OpEx is ±10% of total budget. Programme this capability project, which will be incorporated into the condition model and subsequent AMP delivered within tolerance limits outputs. The variance in this category is due to a change in how Vegetation Management costs are recovered.

8.4.2.16 Explanation for Variance – Percentage of network CapEx Complex and Specialist projects delivered on time 8.4.2.12 Explanation for Variance – Actual project expenditure is ±20% of estimate registered in the AMP (as a percentage of total number of projects completed each year) This measure is of projects being completed in the year they were budgeted for. Current resourcing constraints limit how quickly improvement in this area can be achieved, as there is currently a backlog This variance is primarily the result of unclear historic project estimation and scoping process that of carryover projects to be cleared before significant improvements in this measure will be seen. were not often adhered to. Improved processes, documentation and measurement of processes is Unison is working closely with its contractor to set an achievable works programme for 19/20, that expected to improve process adherence and estimate accuracy over time. includes carryover.

8.4.2.13 Explanation for Variance – Number of urgent and critical asset defects not followed up within required 8.4.2.17 Explanation for Variance – Number of preventive maintenance tasks that were not completed in the timeframes. month planned This measure is based on work task creation and completion date information. Delays in the work task The variance is due to some maintenance windows being missed due to the impact of some zone closeout process has affected the accuracy of this measure and it is currently under review. The Works substation CapEx projects, the weather and resourcing issues. Delivery project will include reassessing this measure and associated processes.

8.4.2.14 Explanation for Variance – Number of continual improvement opportunities with a priority of 5 or 6 not completed within 90 days of being prioritised

Most of the non-compliance came at the beginning of this financial year. The contributory factors include changes to personnel, lateness in starting a project after the CI item being marked as “In Progress”, and underestimation of resources required to complete a CI project within 90 days.

8.4.2.15 Explanation for Variance – Baseline versus actual equipment failure frequency

Equipment failures in 2018/19 occurred more frequently in overhead assets (poles, assemblies and conductors) and cables than in other asset fleets, which can be attributed to the volumes of assets in these fleets relative to others. It should be noted the network performance impact from equipment failures is trending downwards.

The impact of condition related equipment failures will be reduced through two main avenues within Unison’s Asset Management System; internally driven continual improvement initiatives, and capability building projects. Continual Improvement (CI) initiatives are generated through the investigations undertaken for each asset failure and through day-to-day business activities. As an example, a 2018/19 CI saw the initial testing and introduction of online and offline partial discharge testing of HV cables, supporting identification of specific localised defects. Capability building projects represent a step change in Unison’s maturity. For example, during 2018/19, Unison began a series of

CAPABILITY TO DELIVER SECTION 9SECTION CAPABILITY 9 CAPABILITY TO DELIVER TO DELIVER 9-19-1 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

CONTENTS 9. CAPABILITY TO DELIVER OVERVIEW...... 9-2 9.2 Ensuring the Plan is Realistic...... 9-2 9.2.5 Contracting Arrangements ...... 9-2

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9. CAPABILITY TO DELIVER OVERVIEW

9.2 Ensuring the Plan is Realistic

9.2.5 Contracting Arrangements The delivery of Unison’s RAMP is under a sole-source contracting arrangement with an in-house contractor, Unison Contracting Services Limited (UCSL). In conjunction with this, UCSL has developed a sub-contracting arrangement for short-term sub-contractor engagements. This ensures UCSL do not operate at excess capacity. In addition, Unison will directly engage specialist sub- contractors as and when required.

The changes detailed in the ten-year capital expenditure plan to reflect the risk associated with Unison’s overhead asset fleet are mirrored by a requirement for increased contractor resources. This has been communicated to UCSL, and consequently a recruitment and retention strategy has been developed. This will ensure that sufficient capacity and capability are developed and maintained in- house to deliver Unison’s future work programme. External factors will put increasing pressure on this strategy with a number of EDBs commencing or applying for a Customised Price Path (CPP), which will increase the demand for contracting resources across New Zealand.

In addition to this, Unison and UCSL have embarked on a joint strategic initiative to optimise the delivery of the Annual Works Plan. This initiative will enable Unison to better manage risk within its asset portfolio and on worksites, thereby reducing the impact of customer outages and improving the overall efficiency.

UCSL has communicated that due to the constrained labour market, the original programme of work Unison proposed for the 2019-20 financial year is at risk of not being completed. Based on this, Unison has gone through a risk assessment and prioritisation process and has made the decision to defer approximately $5M worth of capital work. This work is expected to be completed in the 2020-21 financial year, by which time the benefits of the strategic initiative will be realised and a number of UCSL trainees employed under the recruitment and retention strategy will move to full competency.

10.10. SCHEDULES SCHEDULES SCHEDULES 10 SECTION 10 SCHEDULES 10-1 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

CONTENTS 11. SCHEDULES...... 10-2 11a Report on Forecast Capital Expenditure...... 10-2 11b Report on Forecast Operational Expenditure...... 10-10 12a Report on Asset Condition...... 10-12 12b Report on Forecast Capacity...... 10-14 12c Report on Forecast Network Demand...... 10-16 12d Report on Forecast Interruptions and Duration...... 10-18 13 Report on Asset Management Maturity...... 10-20 10-2 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-3 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

11a: Report on Forecast Capital Expenditure This schedule requires a breakdown of forecast expenditure on assets for the current disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms. Also required is a forecast of the value of commissioned assets (i.e., the value of RAB additions)

EDBs must provide explanatory comment on the difference between constant price and nominal dollar forecasts of expenditure on assets in Schedule 14a (Mandatory Explanatory Notes).

This information is not part of audited disclosure information.

11a(i): Expenditure on Assets Forecast Current Year CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29 $000 (in nominal dollars) Consumer connection 11,489 10,846 11,600 11,832 12,069 12,310 12,557 12,808 13,064 13,325 13,592 System growth 554 431 - - 721 1,163 1,874 2,964 1,260 2,235 - Asset replacement and renewal 22,026 21,757 27,007 27,407 25,297 27,938 29,084 29,346 29,212 30,096 31,542 Asset relocations 2,153 1,937 1,172 1,196 1,219 1,244 1,269 1,294 1,320 1,346 1,373 Reliability, safety and environment: Quality of supply 1,565 2,995 3,520 4,390 6,116 3,936 4,012 4,997 6,509 2,013 5,451 Legislative and regulatory 85 83 89 91 93 95 44 44 45 46 47 Other reliability, safety and environment 2,265 1,360 881 4,289 4,375 2,170 455 415 423 2,225 440 Total reliability, safety and environment 3,915 4,438 4,491 8,770 10,584 6,200 4,511 5,456 6,978 4,285 5,939 Expenditure on network assets 40,137 39,409 44,270 49,205 49,891 48,855 49,295 51,868 51,834 51,288 52,446 Expenditure on non-network assets 9,964 17,953 8,409 9,239 6,738 4,329 5,260 6,128 4,711 6,222 7,661 Expenditure on assets 50,101 57,632 52,679 58,444 56,629 53,184 54,555 57,996 56,545 57,509 60,107

plus Cost of financing 300 300 314 353 345 330 334 353 348 354 354 less Value of capital contributions 6,645 7,249 6,763 6,898 7,036 7,177 7,234 7,379 7,526 7,677 7,831 plus Value of vested assets ------

Capital expenditure forecast 43,756 50,413 46,230 51,899 49,938 46,338 47,654 50,970 49,366 50,186 52,631

Value of commissioned assets 55,667 50,456 52,230 51,899 49,938 46,338 47,654 50,970 49,366 50,186 52,631

$000 (in constant prices) Consumer connection 11,489 10,633 11,150 11,150 11,150 11,150 11,150 11,150 11,150 11,150 11,150 System growth 554 423 - - 667 1,054 1,664 2,580 1,075 1,871 - Asset replacement and renewal 22,026 21,330 25,958 25,826 23,371 25,304 25,826 25,547 24,932 25,183 25,876 Asset relocations 2,153 1,899 1,127 1,127 1,127 1,127 1,127 1,127 1,127 1,127 1,127 Reliability, safety and environment: Quality of supply 1,565 2,936 3,383 4,137 5,650 3,565 3,563 4,350 5,556 1,685 4,472 Legislative and regulatory 85 81 86 86 86 86 39 39 39 39 39 Other reliability, safety and environment 2,265 1,333 847 4,042 4,042 1,965 404 361 361 1,862 361 Total reliability, safety and environment 3,915 4,351 4,316 8,265 9,778 5,616 4,006 4,750 5,956 3,585 4,872 Expenditure on network assets 40,137 38,637 42,551 46,367 46,091 44,250 43,772 45,154 44,239 42,915 43,024 Non-network assets 9,964 17,601 8,082 8,706 6,225 3,921 4,671 5,335 4,021 5,206 6,285 Expenditure on assets 50,101 56,237 50,633 55,073 52,316 48,171 48,443 50,489 48,260 48,121 49,309

Subcomponents of expenditure on assets (where known) Energy efficiency and demand side ------management, reduction of energy losses Overhead to underground conversion 1,388 1,076 1,517 1,605 2,279 1,118 1,548 1,548 1,548 1,548 1,548 Research and development ------10-4 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-5 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Current Year CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29 Difference between nominal and constant price forecasts $000 Consumer connection - 213 450 682 919 1,160 1,407 1,658 1,914 2,175 2,442 System growth - 8 - - 55 110 210 384 185 365 - Asset replacement and renewal - 427 1,049 1,581 1,926 2,634 3,258 3,799 4,280 4,913 5,667 Asset relocations - 38 46 69 93 117 142 168 193 220 247 Reliability, safety and environment: Quality of supply - 59 137 253 466 371 450 647 954 329 979 Legislative and regulatory - 2 3 5 7 9 5 6 7 8 8 Other reliability, safety and environment - 27 34 247 333 205 51 54 62 363 79 Total reliability, safety and environment - 87 174 506 806 584 505 706 1,022 699 1,067 Expenditure on network assets - 773 1,719 2,838 3,799 4,606 5,522 6,714 7,594 8,372 9,422 Expenditure on non-network assets - 352 327 533 513 408 589 793 690 1,016 1,376 Expenditure on assets - 1,125 2,046 3,371 4,313 5,014 6,112 7,507 8,284 9,388 10,798

11a(ii): Consumer Connection Current Year CY+1 CY+2 CY+3 CY+4 CY+5 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 Consumer types defined by EDB* $000 (in constant prices) Simple 2,472 2,195 2,296 2,296 2,296 2,296 Complex 9,016 8,438 8,854 8,854 8,854 8,854

Consumer connection expenditure 11,489 10,633 11,150 11,150 11,150 11,150 Capital contributions funding consumer less connection 4,545 5,399 5,500 5,500 5,500 5,500 Consumer connection less capital contributions 6,944 5,234 5,650 5,650 5,650 5,650

11a(iii): System Growth Sub-transmission - 213 - - - - Zone substations 14 140 - - - - Distribution and LV lines - - - - 667 387 Distribution and LV cables 498 - - - - 667 Distribution substations and transformers - 70 - - - - Distribution switchgear ------Other network assets 41 - - - - - System growth expenditure 554 423 - - 667 1,054 less Capital contributions funding system growth ------System growth less capital contributions 554 423 - - 667 1,054

11a(iv): Asset Replacement and Renewal Sub-transmission - 704 693 1,161 34 - Zone substations 3,187 1,072 2,036 1,334 2,999 4,405 Distribution and LV lines 10,177 13,283 19,163 16,639 15,282 15,631 Distribution and LV cables 3,555 4,116 1,794 4,762 3,653 3,867 Distribution substations and transformers 1,074 145 316 - - - Distribution switchgear 4,003 1,977 1,956 1,931 1,402 1,402 Other network assets 30 33 - - - - Asset replacement and renewal expenditure 22,026 21,330 25,958 25,826 23,371 25,304 Capital contributions funding asset replacement less and renewal ------Asset replacement and renewal less capital contributions 22,026 21,330 25,958 25,826 23,371 25,304 10-6 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-7 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

11a(v):Asset Relocations Current Year CY+1 CY+2 CY+3 CY+4 CY+5 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 Project or programme* $000 (in constant prices) NZTA 1,030 1,028 602 602 602 602 Local Council and Other 1,123 872 525 525 525 525

All other asset relocations projects or programme s ------Asset relocations expenditure 2,153 1,899 1,127 1,127 1,127 1,127 less Capital contributions funding asset relocations 2,100 1,569 1,000 1,000 1,000 1,000 Asset relocations less capital contributions 53 331 127 127 127 127

11a(vi):Quality of Supply Project or programme* Irongate to Camberley Tie Line - - - - 2,580 - Whirinaki GXP Connection - 1,233 ------

All other quality of supply projects or programmes 1,565 1,703 3,383 4,137 3,070 3,565 Quality of supply expenditure 1,565 2,936 3,383 4,137 5,650 3,565 less Capital contributions funding quality of supply ------Quality of supply less capital contributions 1,565 2,936 3,383 4,137 5,650 3,565

11a(vii): Legislative and Regulatory Project or programme*

All other legislative and regulatory projects or programmemes 85 81 86 86 86 86 Legislative and regulatory expenditure 85 81 86 86 86 86 less Capital contributions funding legislative and regulatory ------Legislative and regulatory less capital contributions 85 81 86 86 86 86

11a(viii): Other Reliability, Safety and Environment Project or programme* ------

All other reliability, safety and environment projects or programmemes 2,265 1,333 847 4,042 4,042 1,965 Other reliability, safety and environment expenditure 2,265 1,333 847 4,042 4,042 1,965 Capital contributions funding other reliability, less safety and environment ------Other reliability, safety and environment less capital contributions 2,265 1,333 847 4,042 4,042 1,965 10-8 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-9 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

11a(ix): Non-Network Assets Current Year CY+1 CY+2 CY+3 CY+4 CY+5 Routine expenditure for year end 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 Project or programme* $000 (in constant prices) Motor Vehicles 4,640 6,579 2,721 2,361 2,050 856 Plant, Equipment and Tools 1,537 1,539 1,500 1,500 1,500 1,500 Information Technology 2,820 1,986 1,110 945 775 1,165 Office Furniture 142 269 100 100 100 100 Land and Buildings 825 835 300 300 300 300

All other routine expenditure projects or programmes ------Routine expenditure 9,964 11,209 5,731 5,206 4,725 3,921 Atypical expenditure Project or programme* Customer Digital Solutions - - 500 500 500 - ERP - 4,992 1,851 - - - ADMS Upgrade - - - 3,000 - - Storage Systems - - - - 1,000 - Lease Assets - 1,400 - - - -

All other atypical projects or programmes Atypical expenditure - 6,392 2,351 3,500 1,500 -

Non-network assets expenditure 9,964 17,601 8,082 8,706 6,225 3,921 10-10 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-11 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

11b: Report on Forecast Operational Expenditure This schedule requires a breakdown of forecast operational expenditure for the disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms. EDBs must provide explanatory comment on the difference between constant price and nominal dollar operational expenditure forecasts in Schedule 14a (Mandatory Explanatory Notes). This information is not part of audited disclosure information.

Current Year CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29 Operational Expenditure Forecast $000 (in nominal dollars) Service interruptions and emergencies 4,152 3,421 3,339 3,402 3,467 3,533 3,599 3,667 3,737 3,808 3,880 Vegetation management 1,811 1,526 1,588 1,620 1,652 1,685 1,719 1,753 1,788 1,824 1,861 Routine and corrective maintenance and inspection 2,724 3,030 3,248 3,413 3,446 3,480 3,514 3,548 3,583 3,618 3,654 Asset replacement and renewal 2,161 2,442 2,110 2,136 2,178 2,222 2,266 2,312 2,358 2,405 2,453 Network Opex 10,848 10,417 10,285 10,570 10,743 10,920 11,098 11,280 11,467 11,655 11,848 System operations and network support 8,824 8,492 8,835 9,012 9,192 9,376 9,563 9,755 9,950 10,149 10,352 Business support 20,589 19,815 20,615 21,028 21,448 21,877 22,315 22,761 23,216 23,681 24,154 Non-network opex 29,413 28,307 29,451 30,040 30,640 31,253 31,878 32,516 33,166 33,829 34,506 Operational expenditure 40,261 38,724 39,736 40,610 41,383 42,173 42,976 43,796 44,633 45,484 46,354

$000 (in constant prices) Service interruptions and emergencies 4,152 3,354 3,209 3,206 3,203 3,200 3,196 3,193 3,189 3,186 3,183 Vegetation management 1,811 1,496 1,526 1,526 1,526 1,526 1,526 1,526 1,526 1,526 1,526 Routine and corrective maintenance and inspection 2,724 2,970 3,122 3,216 3,183 3,152 3,120 3,089 3,058 3,027 2,998 Asset replacement and renewal 2,161 2,394 2,028 2,012 2,012 2,012 2,012 2,012 2,012 2,012 2,012 Network Opex 10,848 10,213 9,886 9,961 9,925 9,890 9,855 9,820 9,787 9,752 9,720 System operations and network support 8,824 8,326 8,492 8,492 8,492 8,492 8,492 8,492 8,492 8,492 8,492 Business support 20,589 19,426 19,815 19,815 19,815 19,815 19,815 19,815 19,815 19,815 19,815 Non-network opex 29,413 27,752 28,307 28,307 28,307 28,307 28,307 28,307 28,307 28,307 28,307 Operational expenditure 40,261 37,965 38,193 38,268 38,232 38,197 38,162 38,127 38,094 38,059 38,027

Subcomponents of operational expenditure (where known) Energy efficiency and demand side management, reduction of energy losses ------Direct billing* ------Research and Development ------Insurance 1,500 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 * Direct billing expenditure by suppliers that direct bill the majority of their consumers

Difference between nominal and real forecasts $000 Service interruptions and emergencies - 67 130 196 264 333 403 475 547 622 697 Vegetation management - 30 62 93 126 159 193 227 262 298 334 Routine and corrective maintenance and inspection - 59 126 197 262 328 394 459 525 591 656 Asset replacement and renewal - 48 82 123 166 209 254 299 345 393 441 Network Opex - 204 399 610 818 1,029 1,243 1,460 1,680 1,903 2,129 System operations and network support - 167 343 520 700 884 1,071 1,263 1,458 1,657 1,860 Business support - 389 801 1,213 1,633 2,062 2,500 2,946 3,401 3,866 4,339 Non-network opex - 555 1,144 1,733 2,333 2,946 3,571 4,209 4,859 5,522 6,199 Operational expenditure - 759 1,543 2,342 3,152 3,976 4,815 5,669 6,539 7,425 8,328 10-12 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-13 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

12a: Report on Asset Condition This schedule requires a breakdown of asset condition by asset class as at the start of the forecast year. The data accuracy assessment relates to the percentage values disclosed in the asset condition columns. Also required is a forecast of the percentage of units to be replaced in the next 5 years. All information should be consistent with the information provided in the AMP and the expenditure on assets forecast in Schedule 11a. All units relating to cable and line assets, that are expressed in km, refer to circuit lengths.

Asset condition at start of planning period (percentage of units by grade) Grade Data accuracy % of asset forecast to be Voltage Asset category Asset class Units Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 unknown (1–4) replaced in next 5 years All Overhead Line Concrete poles / steel structure No. - - - 0.04% 99.75% 0.21% 4 0.10% All Overhead Line Wood poles No. - 0.17% 11.50% 14.28% 73.79% 0.26% 4 6.00% All Overhead Line Other pole types No. - - - - 100.00% - 4 - HV Subtransmission Line Subtransmission OH up to 66kV conductor km - 6.14% 54.75% 29.03% 10.08% 3 - HV Subtransmission Cable Subtransmission UG up to 66kV (XLPE) km - - 10.14% - 89.86% 3 - HV Subtransmission Cable Subtransmission UG up to 66kV (PILC) km - - - - 100.00% 3 - HV Zone substation Buildings Zone substations up to 66kV No. - - 50.00% 23.53% 26.47% 3 - HV Zone substation switchgear 22/33kV CB (Indoor) No. - - - - 100.00% 4 - HV Zone substation switchgear 22/33kV CB (Outdoor) No. - 5.00% 8.75% 15.00% 71.25% 4 2.00% HV Zone substation switchgear 33kV Switch (Ground Mounted) No. - 4.23% 5.99% 2.11% 87.68% 4 - HV Zone substation switchgear 33kV Switch (Pole Mounted) No. - - - 20.00% 80.00% 4 10.00% HV Zone substation Transformer Zone Substation Transformers No. - 10.77% 16.92% 16.92% 55.38% 4 - HV Distribution Line Distribution OH Open Wire Conductor km 1.92% 27.94% 19.65% 35.23% 15.26% 2 1.00% HV Distribution Line Distribution OH Aerial Cable Conductor km 100.00% 2 - HV Distribution Line SWER conductor km 1.92% 27.94% 19.65% 35.23% 15.26% 2 2.00% HV Distribution Cable Distribution UG XLPE or PVC km - - 18.78% 2.66% 71.61% 6.95% 3.00 2.00% HV Distribution Cable Distribution UG PILC km - - 1.79% 0.83% 96.68% 0.70% 3.00 2.00% HV Distribution switchgear 3.3/6.6/11/22kV CB (pole mounted) - reclosers and sectionalisers No. - 6.37% 1.87% 4.49% 87.27% 3 8.00% HV Distribution switchgear 3.3/6.6/11/22kV Switches and fuses (pole mounted) No. 5.90% 12.65% 37.82% 17.06% 26.57% 3 5.00% HV Distribution switchgear 3.3/6.6/11/22kV Switch (ground mounted) - except RMU No. - 2.55% 2.55% 3.68% 90.93% 0.28% 4 6.00% HV Distribution switchgear 3.3/6.6/11/22kV RMU No. - 3.05% 1.87% 5.22% 89.27% 0.59% 4 9.50% HV Distribution Transformer Pole Mounted Transformer No. - - 8.39% 7.03% 84.48% 0.10% 4 1.00% HV Distribution Transformer Ground Mounted Transformer No. - 2.30% 7.32% 8.47% 81.60% 0.30% 4 1.00% HV Distribution Transformer Voltage regulators No. - 2.94% 2.94% 20.59% 73.53% 3 - HV Distribution Substations Ground Mounted Substation Housing No. - - 25.00% 50.00% 25.00% 1 - LV LV Line LV OH Conductor km 0.13% 16.03% 19.28% 60.20% 4.36% 2 0.50% LV LV Cable LV UG Cable km 0.20% 29.58% 36.49% 14.94% 18.79% 2 0.50% LV LV Streetlighting LV OH/UG Streetlight circuit km 0.20% 29.58% 36.49% 14.94% 18.79% 2 0.50% LV Connections OH/UG consumer service connections No. - 0.10% 1.20% 80.32% 18.38% 3 2.50% All Protection Protection relays (electromechanical, solid state and numeric) No. 5.00% 30.00% 65.00% 1 15.00% All SCADA and communications SCADA and communications equipment operating as a single system Lot 5.00% 95.00% 1 - All Capacitor Banks Capacitors including controls No. - - - - 100.00% 3 - All Load Control Centralised plant Lot - 60.00% 26.67% 6.67% 6.67% 3 15.00% All Load Control Relays No. - 23.04% 60.05% 11.40% 5.51% 2 1.50% 10-14 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-15 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

12b: Report on Forecast Capacity This schedule requires a breakdown of current and forecast capacity and utilisation for each zone substation and current distribution transformer capacity. The data provided should be consistent with the information provided in the AMP. Information provided in this table should relate to the operation of the network in its normal steady state configuration. 12b(i): System Growth - Zone Substations Transfer Utilisation of Installed Firm Utilisation of Existing Zone Current Peak Installed Firm Security of Supply Classification Installed Firm Capacity Capacity Installed Firm Capacity +5 Installed Firm Explanation Substations Load (MVA) Capacity (MVA) (type) Constraint +5 years (cause) (MVA) Capacity % years (MVA) Capacity + 5yrs % Tutira 1 - N-1 Switched 2 - - - No constraint within +5 years - Patoka 1 - N-1 Switched 2 - - - No constraint within +5 years - Esk 4 - N-1 Switched 6 - - - No constraint within +5 years - Bluff Hill 10 - N-1 Switched 12 - - - No constraint within +5 years - Faraday 12 24 N-1 - 52% 24 54% No constraint within +5 years - Sherenden 1 - N-1 Switched 2 - - - No constraint within +5 years - Tamatea 11 24 N-1 - 46% 24 45% No constraint within +5 years - Marewa 14 24 N-1 - 57% 24 60% No constraint within +5 years - Church Rd 11 12 N-1 - 90% 12 95% No constraint within +5 years - Tannery Rd 12 24 N-1 - 51% 24 54% No constraint within +5 years - Awatoto 7 14 N-1 - 48% 14 53% No constraint within +5 years - Springfield 7 11 N-1 - 62% 11 67% No constraint within +5 years - Fernhill 7 - N-1 Switched 8 - 10 63% No constraint within +5 years - McCain 4 - N-1 Switched 4 - - - No constraint within +5 years - Rangitane Rd 16 29 N-1 - 57% 29 59% No constraint within +5 years - Flaxmere 11 24 N-1 - 44% 24 46% No constraint within +5 years - Tomoana 6 11 N-1 - 55% 11 51% No constraint within +5 years - This is managed using a fast transfer scheme until Camberley 11 11 N-1 5 100% 24 48% No constraint within +5 years capacity is increased at this site as part of the renewal work proposed in 2021 Mahora 11 12 N-1 - 92% 12 88% No constraint within +5 years - Hastings 18 24 N-1 - 75% 24 79% No constraint within +5 years - Windsor 8 24 N-1 - 33% 24 35% No constraint within +5 years - Irongate 9 12 N-1 - 72% 12 75% No constraint within +5 years - Maraekakaho 3 - N-1 Switched 5 - - - No constraint within +5 years - Arataki 8 11 N-1 1 70% 11 74% No constraint within +5 years - Havelock North 14 24 N-1 6 58% 24 61% No constraint within +5 years - Biak Street 17 24 N-1 - 70% 24 74% No constraint within +5 years - It is planned to manage this constraint by use of a fast Arawa 21 24 N-1 - 87% 24 91% Subtransmission circuit transfer scheme Waipa 7 - N-1 Switched 5 - - - No constraint within +5 years - Rainbow 3 - N-1 Switched - - - - No constraint within +5 years - Atiamuri 2 2 N-1 - 97% - - No constraint within +5 years - Fernleaf 8 - N-1 Switched 4 - - - No constraint within +5 years - Ohaaki 3 - N-1 Switched - - - - No constraint within +5 years - Te Toke 2 9 N-1 - 24% 18 13% No constraint within +5 years - Fletchers 8 15 N-1 - 51% 18 45% No constraint within +5 years - Fast Transfer schemes will allow automated load trans- Runanga 24 22 N-1 7 109% 22 102% Transformer fers between Runanga, Fleet St & Taupo Sth Fast Transfer schemes will allow automated load trans- Fleet Street 8 - N-1 Switched 7 - - - No constraint within +5 years fers between Runanga, Fleet St & Taupo Sth Fast Transfer schemes will allow automated load trans- Taupo South 7 12 N-1 7 60% 12 63% No constraint within +5 years fers between Runanga, Fleet St & Taupo Sth 10-16 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-17 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

12c: Report on Forecast Network Demand This schedule requires a forecast of new connections (by consumer type), peak demand and energy volumes for the disclosure year and a 5 year planning period. The forecasts should be consistent with the supporting information set out in the AMP as well as the assumptions used in developing the expenditure forecasts in Schedule 11a and Schedule 11b and the capacity and utilisation forecasts in Schedule 12b. 12c(i): Consumer Connections Number of ICPs connected in year by consumer type Current Year CY+1 CY+2 CY+3 CY+4 CY+5 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 Consumer types defined by EDB* Number of connections Number of connections Residential 750 750 750 750 750 750 Commercial 83 83 83 83 83 83 Connections total 833 833 833 833 833 833 *include additional rows if needed Distributed generation Number of connections 300 300 300 300 300 300 Capacity of distributed generation installed in year (MVA) 1 1 1 1 1 1

12c(ii) System Demand

Maximum coincident system demand (MW) for year ended Number of connections Number of connections GXP demand 268 275 276 277 278 279 plus Distributed generation output at HV and above 62 55 55 55 55 55 Maximum coincident system demand 330 330 331 332 333 334 less Net transfers to (from) other EDBs at HV and above ------Demand on system for supply to consumers’ connection points 330 330 331 332 333 334 Electricity volumes carried (GWh) Electricity supplied from GXPs 1,283 1,283 1,283 1,283 1,283 1,283 less Electricity exports to GXPs 243 243 243 243 243 243 plus Electricity supplied from distributed generation 664 664 664 664 664 664 less Net electricity supplied to (from) other EDBs ------Electricity entering system for supply to ICPs 1,704 1,704 1,704 1,704 1,704 1,704 less Total energy delivered to ICPs 1,613 1,613 1,613 1,613 1,613 1,613 Losses 91 91 91 91 91 91

Load factor 59% 59% 59% 59% 58% 58% Loss ratio 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 10-18 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-19 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

12d: Report Forecast Interruptions and Duration Central Region Current Year CY+1 CY+2 CY+3 CY+4 CY+5 This schedule requires a forecast of SAIFI and SAIDI for disclosure and a 5 year planning period. The forecasts for year ended 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 should be consistent with the supporting information set out in the AMP as well as the assumed impact of planned SAIDI and unplanned SAIFI and SAIDI on the expenditures forecast provided in Schedule 11a and Schedule 11b. Class B 98.8 38.6 38.6 38.6 38.6 38.6 (planned interruptions Total Network Current Year CY+1 CY+2 CY+3 CY+4 CY+5 on the network) for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 Class C 85.1 96.1 96.1 96.1 96.1 96.1 SAIDI (unplanned interruptions on the network) Class B 78.9 40.8 40.8 40.8 40.8 40.8 (planned interruptions SAIFI on the network) Class B 0.82 0.30 0.30 0.30 0.30 0.30 Class C 76.0 78.8 78.8 78.8 78.8 78.8 (planned interruptions (unplanned interruptions on the network) on the network) Class C 1.54 1.77 1.77 1.77 1.77 1.77 SAIFI (unplanned interruptions on the network) Class B 0.60 0.26 0.26 0.26 0.26 0.26 (planned interruptions on the network) Class C 1.67 1.81 1.81 1.81 1.81 1.81 (unplanned interruptions on the network)

Hawke’s Bay Current Year CY+1 CY+2 CY+3 CY+4 CY+5 for year ended 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 SAIDI Class B 65.6 42.5 42.5 42.5 42.5 42.5 (planned interruptions on the network) Class C 68.3 65.5 65.5 65.5 65.5 65.5 (unplanned interruptions on the network) SAIFI Class B 0.48 0.24 0.24 0.24 0.24 0.24 (planned interruptions on the network) Class C 1.75 1.84 1.84 1.84 1.84 1.84 (unplanned interruptions on the network) 10-20 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-21 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

13: Report on Asset Management Maturity This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices . Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 3 Asset To what extent has an 4 • Policy is highly visible and communicated Widely used AM practice standards require an Top management. The The organisation's asset The organisation's management asset management • It is at people’s desks encouraging it to be front of mind, e.g. team can organisation to document, authorise and communicate management team that management policy, its process(es) surpass policy policy been review their objectives respective to the policy its asset management policy (e.g. as required in PAS has overall responsibility organisational strategic the standard required to documented, authorised • Exemplary work with CEO ownership, communication and engagement 55 para 4.2 i). A key pre-requisite of any robust policy for asset management. plan, documents comply with requirements and communicated? is that the organisation's top management must be indicating how the asset set out in a recognised seen to endorse and fully support it. Also vital to the management policy was standard. effective implementation of the policy, is to tell the based upon the needs appropriate people of its content and their obligations of the organisation The assessor is advised under it. Where an organisation outsources some and evidence of to note in the Evidence of its asset-related activities, then these people and communication. section why this is the their organisations must equally be made aware case and the evidence of the policy's content. Also, there may be other seen. stakeholders, such as regulatory authorities and shareholders who should be made aware of it. 10 Asset What has the 4 • Excellent engagement model and very high-quality specification of the In setting an organisation's asset management Top management. The The organisation's asset The organisation's management organisation done to SAMP and supporting documents, e.g. Asset Planning Framework strategy, it is important that it is consistent with any organisation's strategic management strategy process(es) surpass strategy ensure that its asset • SAMP is being used by some teams with variable take up ranging from other policies and strategies that the organisation planning team. The document and other the standard required to management strategy detailed to lack of focus has and has taken into account the requirements management team that related organisational comply with requirements is consistent with It is primarily being used to assist people to understand their role and how of relevant stakeholders. This question examines has overall responsibility policies and strategies. set out in a recognised other appropriate they fit into the wider organisation. to what extent the asset management strategy is for asset management. Other than the standard. organisational policies • Lot of current work on what the business will look like in the future noting consistent with other organisational policies and organisation's strategic and strategies, and the options for disruption and sources of generation strategies (e.g. as required by PAS 55 para 4.3.1 b) plan, these could include The assessor is advised needs of stakeholders? Changes to the business model are being considered based on energy and has taken account of stakeholder requirements those relating to health to note in the Evidence flows and customer requirements as required by PAS 55 para 4.3.1 c). Generally, this and safety, environmental, section why this is the • DSO model is being evaluated will take into account the same polices, strategies etc. Results of case and the evidence Work also undertaken on sensing and control equipment needed in the and stakeholder requirements as covered in drafting stakeholder consultation. seen. future the asset management policy but at a greater level of detail. 11 Asset In what way does the 2 • The investment strategy per asset classes, based on design, utilisation Good asset stewardship is the hallmark of an Top management. People The organisation's The long-term asset management organisation's asset and current condition, is still a work in progress organisation compliant with widely used AM standards. in the organisation with documented asset management strategy strategy management strategy • CBRM work is exemplary but the inputs to even this modelling are not A key component of this is the need to take account expert knowledge of management strategy takes account of the take account of the optimal of the lifecycle of the assets, asset types and asset the assets, asset types, and supporting working lifecycle of some, but not lifecycle of the assets, • Fleet strategies is a concept which has lapsed under pressure of other systems. (For example, this requirement is recognised asset systems and their documents. all, of its assets, asset asset types and asset work – and will stay dormant until Asset Specialists are freed up more from in 4.3.1 d) of PAS 55). This question explores what associated life-cycles. types and asset systems. systems over which day-to-day work an organisation has done to take lifecycle into account The management the organisation has in its asset management strategy. team that has overall stewardship? responsibility for asset management. Those responsible for developing and adopting methods and processes used in asset management. 10-22 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-23 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 26 Asset How does the 4 • Plans are documented in the AMP with technical details developed in The asset management strategy need to be translated The management team The organisation's asset The organisation's management organisation establish Design Manager into practical plan(s) so that all parties know how with overall responsibility management plan(s). process(es) surpass plan(s) and document its asset • Provisional sums are developed for larger items of work the objectives will be achieved. The development for the asset management the standard required to management plan(s) • Asset Planning document has been developed which specifies what is of plan(s) will need to identify the specific tasks system. Operations, comply with requirements across the life cycle required including risk ranking and activities required to optimize costs, risks and maintenance and set out in a recognised activities of its assets Confidence in the detail which forms the plan assisted both UNL and UCSL performance of the assets and/or asset system(s), engineering managers. standard. and asset systems? • Use and communication of the plan was good when they are to be carried out and the resources • Processes to revise the plan are good required. The assessor is advised to note in the Evidence section why this is the case and the evidence seen. 27 Asset How has the 4 • Plans are available to everyone Plans will be ineffective unless they are communicated The management team Distribution lists for The organisation's management organisation • Plans are communicated every 6 months with revision of plan and to all those, including contracted suppliers and those with overall responsibility plan(s). Documents process(es) surpass plan(s) communicated its communication to the management team who undertake enabling function(s). The plan(s) need for the asset management derived from plan(s) which the standard required to plan(s) to all relevant • The project initiators are engaged to revise their requirements as needed to be communicated in a way that is relevant to those system. Delivery functions detail the receivers role in comply with requirements parties to a level of • Meetings are held with the executive team and technical specialists to get who need to use them. and suppliers. plan delivery. Evidence of set out in a recognised detail appropriate to the their input communication. standard. receiver's role in their • Engagement with the service providers ensures focus on the short-term delivery? work requirements plus advice on implications of work proposed in later The assessor is advised years to note in the Evidence • The Regulatory AMP is published and communicated section why this is the case and the evidence seen. 29 Asset How are designated 4 • Planning team and executives have clear responsibilities and work with The implementation of asset management plan(s) The management team The organisation's asset The organisation's management responsibilities for the service delivery people including fortnight meetings tracking actions relies on (1) actions being clearly identified, (2) an with overall responsibility management plan(s). process(es) surpass plan(s) delivery of asset plan and progress owner allocated and (3) that owner having sufficient for the asset management Documentation defining the standard required to actions documented? • Planning team ensure relationships are managed, progress tracked and delegated responsibility and authority to carry out the system. Operations, roles and responsibilities comply with requirements reported, and executive are informed of any issues work required. It also requires alignment of actions maintenance and of individuals and set out in a recognised • Planning also engage with the Control Room on timing of network across the organisation. This question explores how engineering managers. organisational standard. windows well the plan(s) set out responsibility for delivery of If appropriate, the departments. • Financial authorities are tightly managed, and variations need to be asset plan actions. performance management The assessor is advised approved by managers with delegations which cover total budget including team. to note in the Evidence the variation section why this is the case and the evidence seen. 31 Asset "What has the 3 • The new asset management approach has improved the management of It is essential that the plan(s) are realistic and can be The management team The organisation's asset The organisation's management organisation done to the plan implemented, which requires appropriate resources with overall responsibility management plan(s). arrangements fully cover plan(s) ensure that appropriate • Works are ranked before they are handed over to the contractors to be available and enabling mechanisms in place. for the asset management Documented processes all the requirements for arrangements are made • Training has been completed in the use of the AMP including its ongoing This question explores how well this is achieved. system. Operations, and procedures for the the efficient and cost available for the efficient use and reporting The plan(s) not only need to consider the resources maintenance and delivery of the asset effective implementation and cost effective • Reliability meetings lead to issues being registered in the AMP directly required and timescales, but also the enabling engineering managers. management plan. of asset management implementation of the • There is a very strong focus on upstream processes associated with activities, including for example, training requirements, If appropriate, the plan(s) and realistically plan(s)? identifying the need for work supply chain capability and procurement timescales. performance management address the resources • AMP review meetings are held every 6 months team. If appropriate, the and timescales required, (Note this is about • More can be done to improve knowledge of the condition of assets to performance management and any changes needed resources and enabling support planning processes team. Where appropriate to functional policies, support)" the procurement team and standards, processes and service providers working the asset management on the organisation's information system. asset-related activities. 10-24 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-25 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 33 Contingency What plan(s) and 3 • Operations have documented processes for fault responses Widely used AM practice standards require that an The manager with The organisation's plan(s) Appropriate emergency planning procedure(s) does • Strategic spares are managed both at the depot level and in central organisation has plan(s) to identify and respond to responsibility for and procedure(s) for plan(s) and procedure(s) the organisation have stores emergency situations. Emergency plan(s) should developing emergency dealing with emergencies. are in place to respond for identifying and • There have not been any issues with such spares being issued and outline the actions to be taken to respond to specified plan(s). The The organisation's risk to credible incidents and responding to incidents leading to in-service faults emergency situations and ensure continuity of organisation's risk assessments and risk manage continuity of and emergency • Contingency plans and have been developed and trials are undertaken critical asset management activities including the assessment team. registers. critical asset management situations and ensuring every 18 months communication to, and involvement of, external People with designated activities consistent continuity of critical • The Alternative Operations Centre is tested every 3 months agencies. This question assesses if, and how well, duties within the plan(s) with policies and asset asset management • When a major weather event hit Taupo with 200 poles down, major these plan(s) triggered, implemented and resolved and procedure(s) for management objectives. activities? spares were available and fit for purposes, but there were issues with in the event of an incident. The plan(s) should be dealing with incidents and Training and external sufficient consumables (e.g. right bolts etc) appropriate to the level of risk as determined by the emergency situations. agency alignment is in organisation's risk assessment methodology. It is also place. a requirement that relevant personnel are competent and trained. 37 Structure, What has the 3 • Standards specify roles and responsibilities In order to ensure that the organisation's assets Top management. Evidence that managers The appointed person authority and organisation done to • More could be done in clear specification of roles and asset systems deliver the requirements of the People with management with responsibility for or persons have full responsibilities appoint member(s) of its • There are clear handover points between UNL and UCSL, specifying the asset management policy, strategy and objectives responsibility for the the delivery of asset responsibility for ensuring management team to be program of work for the coming year responsibilities need to be allocated to appropriate delivery of asset management policy, that the organisation's responsible for ensuring • OpEx is reported every month and broken down to specific codes to report people who have the necessary authority to fulfil management policy, strategy, objectives assets deliver the that the organisation's progress and who is accountable their responsibilities. (This question, relates to the strategy, objectives and and plan(s) have requirements of the asset assets deliver the • CapEx is tracked on a program basis organisation's assets eg, para b), s 4.4.1 of PAS plan(s). People working on been appointed and management strategy, requirements of the asset • Monthly meetings revise priorities 55, making it therefore distinct from the requirement asset-related activities. have assumed their objectives and plan(s). management strategy, • Unison has organisational charts and high-level work flows contained in para a), s 4.4.1 of PAS 55). responsibilities. Evidence They have been given objectives and plan(s)? may include the the necessary authority to organisation's documents achieve this. relating to its asset management system, organisational charts, job descriptions of post-holders, annual targets/objectives and personal development plan(s) of post-holders as appropriate. 40 Structure, What evidence can 2 Optimal asset management requires top management to Top management. The Evidence demonstrating A process exists for • There are issues of insufficient resources to complete the scheduled work authority and the organisation's top ensure sufficient resources are available. In this context management team that has that asset management determining what resources program with 2017 being a bad year for missed work responsibilities management provide the term 'resources' includes manpower, materials, overall responsibility for plan(s) and/or the are required for its asset • The schedule has no contingency float and 2017 was affected by storms to demonstrate that funding and service provider support. asset management. Risk process(es) for asset management activities which led to a long tail of rectification work sufficient resources management team. The management plan and in most cases these • NZ has a tight labour market and busy EDBs are competing for subcontract are available for asset organisation's managers implementation consider are available but in some resources management? involved in day-to-day the provision of adequate instances resources remain • UCSL has a robust retention rate and this year has trebled its intake to take supervision of asset-related resources in both the insufficient. on 18 new trainees activities, such as frontline short and long term. • Initially UNL did not provide assurance of future work so UCSL considered managers, engineers, Resources include funding, external work to the detriment of the UNL schedule. This problem has been foremen and chargehands materials, equipment, turned around and both parties are now confident in the forward schedule of as appropriate. services provided by third work out to 5 years parties and personnel • UCSL can now manage capacity planning against a firm plan, and are (internal and service advising UNL where resource constraints mean specific work cannot proceed providers) with appropriate • The different now is confidence in the plan but UNL making it clear it is OK for skills competencies and UCSL to reject work on a resource constraint basis knowledge. 10-26 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-27 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 42 Structure, To what degree does 4 • Unison leadership in asset management focus is exemplary Widely used AM practice standards require an Top management. The Evidence of such activities "The organisation's authority and the organisation's • Networks and Operations leadership is certainly operating at an even higher organisation to communicate the importance of management team that has as road shows, written process(es) surpass the responsibilities top management level than this score meeting its asset management requirements such that overall responsibility for bulletins, workshops, team standard required to comply communicate the personnel fully understand, take ownership of, and are asset management. People talks and management with requirements set out in importance of meeting fully engaged in the delivery of the asset management involved in the delivery of walk-abouts would a recognised standard. its asset management requirements (e.g. PAS 55 s 4.4.1 g). the asset management assist an organisation to requirements? requirements. demonstrate it is meeting The assessor is advised to this requirement of PAS 55. note in the Evidence section why this is the case and the evidence seen." 45 Outsourcing Where the organisation 2 • UNL and UCSL have a good working relationship but still ran into major Where an organisation chooses to outsource some of Top management. The The organisation's Controls systematically of asset has outsourced issues in 2017 its asset management activities, the organisation must management team that has arrangements that detail considered but currently management some of its asset • While the asset planning and capacity feedback is good, there is no ensure that these outsourced process(es) are under overall responsibility for the compliance required only provide for the activities management activities, assurance that without formal agreements, some other issue may impact appropriate control to ensure that all the requirements of asset management. The of the outsourced compliant delivery of some, how has it ensured that services delivery widely used AM standards (e.g. PAS 55) are in place, and manager(s) responsible activities. For example, but not all, aspects of the appropriate controls are • The current state of the interface between UNL and UCSL is holding Unison the asset management policy, strategy objectives and for the monitoring and this this could form part organisational strategic in place to ensure the back since UNL engineers appear still to be too much in the day-to-day plan(s) are delivered. This includes ensuring capabilities management of the of a contract or service plan and/or its asset compliant delivery of its work and not freed up for essential forward planning and asset life cycle and resources across a time span aligned to life cycle outsourced activities. level agreement between management policy and organisational strategic management management. The organisation must put arrangements People involved with the the organisation and the strategy. Gaps exist. plan, and its asset in place to control the outsourced activities, whether it be procurement of outsourced suppliers of its outsourced management policy and to external providers or to other in-house departments. activities. The people within activities. Evidence that strategy? This question explores what the organisation does in this the organisations that are the organisation has regard. performing the outsourced demonstrated to itself activities. The people that it has assurance of impacted by the outsourced compliance of outsourced activity. activities. 48 Training, How does the 3 • Unison understands the need to sustain what they have developed in There is a need for an organisation to demonstrate Senior management Evidence of analysis of The organisation can awareness and organisation develop their asset management system. that it has considered what resources are required responsible for future work load plan(s) demonstrate that competence plan(s) for the • Executives are promoting the need for valid proposals as to how to keep to develop and implement its asset management agreement of plan(s). in terms of human plan(s) are in place and human resources the current tempo of capability, e.g. appoint an asset management systems system. There is also a need for the organisation to Managers responsible resources. Document(s) effective in matching required to undertake manager is one option demonstrate that it has assessed what development for developing asset containing analysis of the competencies and asset management • The roles of Unison managers are evolving as they understand what they plan(s) are required to provide its human resources management strategy organisation's own direct capabilities to the asset activities - including have developed and what it can provide their business. Feedback was that with the skills and competencies to develop and and plan(s). Managers resources and contractors management system the development they now have higher expectations for performance in asset management implement its asset management systems. The with responsibility resource capability over including the plan for both and delivery of asset • Performance evaluation and feedback is taken seriously as to where timescales over which the plan(s) are relevant for development and suitable timescales. internal and contracted management strategy, improvement is needed for each team should be commensurate with the planning horizons recruitment of staff Evidence, such as minutes activities. Plans are process(es), objectives • Training is being developed to lift people’s capabilities to further refine within the asset management strategy considers (including HR functions). of meetings, that suitable reviewed integral to asset and plan(s)? asset management e.g. if the asset management strategy considers Staff responsible for management forums management system • There is implicit competence in the awareness and approach of 5, 10 and 15 year time scales then the human training. Procurement are monitoring human process(es). individuals resources development plan(s) should align with officers. Contracted resource development • Unison recognises the requirement for corporate training, but these these. Resources include both 'in house' and service providers. plan(s). Training plan(s), systems are still maturing external resources who undertake asset management personal development activities. plan(s), contract and service level agreements. 10-28 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 49 Training, How does the 3 • SD0001 defines network competencies and qualifications needed which Widely used AM standards require that organisations Senior management Evidence of an Competency requirements awareness and organisation is the basis for the current competency assessment to undertake a systematic identification of the asset responsible for established and applied are in place and aligned competence identify competency • SD1600 defines requirements for roles and assist with training design management awareness and competencies required agreement of plan(s). competency requirements with asset management requirements and • VAULT is used to manage training, expiry of qualification, competency at each level and function within the organisation. Managers responsible assessment process and plan(s). Plans are in place then plan, provide and reporting and the training schedule Once identified the training required to provide for developing asset plan(s) in place to deliver and effective in providing record the training • Training coordinators are used to ensure competency development and the necessary competencies should be planned management strategy the required training. the training necessary to necessary to achieve certification for delivery in a timely and systematic way. Any and plan(s). Managers Evidence that the training achieve the competencies. the competencies? • Requirements for training are updated all the time, e.g. PDA for RMUs training provided must be recorded and maintained with responsibility programme is part of a A structured means • Assessments are made and tracked in a suitable format. Where an organisation has for development and wider, co-ordinated asset of recording the • This is also applied to external resources contracted service providers in place then it should recruitment of staff management activities competencies achieved is • Competent process which is sustainable have a means to demonstrate that this requirement (including HR functions). training and competency in place. is being met for their employees. (e.g. PAS 55 refers Staff responsible for programme. Evidence to frameworks suitable for identifying competency training. Procurement that training activities are requirements). officers. Contracted recorded and that records service providers. are readily available (for both direct and contracted service provider staff) e.g. via organisation wide information system or local records database. 50 Training, How does the 3 • CI is an important path to developing the competency of people, including A critical success factor for the effective development Managers, supervisors, Evidence of a Competency requirements awareness and organization ensure that job descriptions, new positions and competency development and implementation of an asset management system persons responsible competency assessment are identified and competence persons under its direct • Unison have a competency policy which is applied to the asset is the competence of persons undertaking these for developing training framework that aligns assessed for all persons control undertaking management system activities. organisations should have effective means programmes. Staff with established carrying out asset asset management • Competent process to identify competency requirements in place for ensuring the competence of employees responsible for frameworks such as management related related activities have to carry out their designated asset management procurement and service the asset management activities - internal and an appropriate level of function(s). Where an organisation has contracted agreements. HR staff Competencies contracted. Requirements competence in terms of service providers undertaking elements of its asset and those responsible for Requirements Framework are reviewed and staff education, training or management system then the organisation shall recruitment. (Version 2.0); National reassessed at appropriate experience? assure itself that the outsourced service provider also Occupational Standards intervals aligned to has suitable arrangements in place to manage the for Management asset management competencies of its employees. The organisation and Leadership; UK requirements. should ensure that the individual and corporate Standard for Professional competencies it requires are in place and actively Engineering Competence, monitor, develop and maintain an appropriate balance Engineering Council, of these competencies. 2005. 53 Communica- How does the 2 • Good interaction between field technical staff and asset specialist, which Widely used AM practice standards require that Top management and Asset management The organisation has tion, partic- organisation ensure relies heavily on local engagement rather than formal reporting pertinent asset management information is effectively senior management policy statement determined pertinent ipation and that pertinent • People are now more aware of systemic issues per asset class, and field communicated to and from employees and other representative(s), prominently displayed information and relevant consultation asset management personnel are more conscious of asset issues stakeholders including contracted service providers. employee's on notice boards, parties. Some effective information is effectively • Unison need to look at better packaging of information to the field Pertinent information refers to information required representative(s), intranet and internet; two way communication communicated to and personnel and then get improved feedback on risks back from the field in order to effectively and efficiently comply with employee's trade union use of organisation's is in place but as yet from employees and • There is a need to better align field personnel understanding of the issues and deliver asset management strategy, plan(s) representative(s); website for displaying not all relevant parties other stakeholders, and what plans are being generated and objectives. This will include for example the contracted service asset performance are clear on their roles including contracted • Lot of reporting on data quality but the reporting on risk in the assets, communication of the asset management policy, asset provider management data; evidence of formal and responsibilities service providers? completed work and performance tracking of the network still needs performance information, and planning information as and employee briefings to employees, with respect to asset improvement appropriate to contractors. representative(s); stakeholders and management information. • Information which will lift the performance of asset management needs to representative(s) from contracted service be considered the organisation's Health, providers; evidence Safety and Environmental of inclusion of asset team. Key stakeholder management issues representative(s). in team meetings and contracted service provider contract meetings; newsletters, etc. 10-30 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-31 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 59 Asset What documentation 3 • There is a defined drum beat of meetings with standard agendas and Widely used AM practice standards require an The management The documented The organisation has Management has the organisation reporting organisation maintain up to date documentation that team that has overall information describing established documentation System established to describe • OpEx management considers each region, their task completion rates, ensures that its asset management systems (i.e. responsibility for asset the main elements of that comprehensively documentation the main elements of backlog management and resource re-allocation to help other regions who the systems the organisation has in place to meet management. Managers the asset management describes all the main its asset management are lagging the standards) can be understood, communicated engaged in asset system (process(es)) and elements of its asset system and interactions • CapEx management includes early advice on risk and operated. (e.g. s 4.5 of PAS 55 requires the management activities. their interaction. management system and between them? • UCSL consider the current interface good and covers all aspects for work maintenance of up to date documentation of the the interactions between flow asset management system requirements specified them. The documentation • It was noted that only 8 out of the last 12 monthly meetings took place, throughout s 4 of PAS 55). is kept up to date. although the current rate of meeting completion has improved • Both parties are doing more to back fill key roles when people are away • There is a lot of documentation and the controlled documents have been reviewed and updated • Still more to do in the known areas for improvement of work flow, defect elimination, condition assessment etc • Some of the more advanced areas of capability based on analytics, scenario modelling and so on are in relative infancy in terms of competent documentation 62 Information What has the 2 • Unison has dedicated resources working on master data including Effective asset management requires appropriate The organisation's Details of the process The organisation has management organisation done to updates issuing from project work information to be available. Widely used AM strategic planning the organisation has developed a structured determine what its • Replies indicated the need for improved information to the field as well standards therefore require the organisation to identify team. The management employed to determine process to determine asset management work and condition feedback the asset management information it requires in order team that has overall what its asset information what its asset information information system(s) • It is not clear that decisions on the assets are being made with the best to support its asset management system. Some of the responsibility for asset system should contain system should contain in should contain in order possible information other then anecdote between field team and UNL information required may be held by suppliers. management. Information in order to support its order to support its asset to support its asset engineers management team. asset management management system management system? • Some good feedback on certain aspects such as mobility, electronic The maintenance and development of asset Operations, maintenance system. Evidence that and has commenced capture of change control etc management information systems is a poorly and engineering this has been effectively implementation of the understood specialist activity that is akin to IT managers. implemented. process. management but different from IT management. This group of questions provides some indications as to whether the capability is available and applied. Note: To be effective, an asset information management system requires the mobilisation of technology, people and process(es) that create, secure, make available and destroy the information required to support the asset management system. 63 Information How does the 2 • Routine data quality reporting is generated every month, targeting issues The response to the questions is progressive. A The management The asset management The organisation has management organisation maintain in transactions, feedback and use of the system higher scale cannot be awarded without achieving the team that has overall information system, developed a controls that its asset management • Problems with data quality are raised in the formal continual improvement requirements of the lower scale. responsibility for asset together with the will ensure the data held is information system(s) register from which the process can then consider improvement management. Users policies, procedure(s), of the requisite quality and and ensure that the data • Replies indicated the need for improved information to the field as well as This question explores how the organisation ensures of the organisational improvement initiatives accuracy and is consistent held within it (them) is work and condition feedback that information management meets widely used AM information systems. and audits regarding and is in the process of of the requisite quality • It is not clear that decisions on the assets are being made with the best practice requirements (e.g. s 4.4.6 (a), (c) and (d) of information controls. implementing them. and accuracy and is possible information other than anecdote between field team and UNL PAS 55). consistent? engineers • Some good feedback on certain aspects such as mobility, electronic capture of change control etc 64 Information How has the 3 • Asset change form is better used and is peer reviewed to ensure Widely used AM standards need not be prescriptive The organisation's The documented process The organisation's asset management organisation's ensured completeness before submission about the form of the asset management information strategic planning the organisation employs management information its asset management • Checks are made of the information collected from projects system, but simply require that the asset management team. The management to ensure its asset system aligns with its information system is • 2 years ago, this process was paper based and challenging to manage. information system is appropriate to the organisations team that has overall management information asset management relevant to its needs? Now it is electronic with real time tracking, timely availability of data etc. needs, can be effectively used and can supply responsibility for asset system aligns with its requirements. Users can UCSL is not looking to further upgrade the technology information which is consistent and of the requisite management. Information asset management confirm that it is relevant • Replies indicated the need for improved information to the field as well quality and accuracy. management team. Users requirements. Minutes to their needs. work and condition feedback of the organisational of information systems • It is not clear that decisions on the assets are being made with the best information systems. review meetings involving possible information other than anecdote between field team and UNL users. engineers • Some good feedback on certain aspects such as mobility, electronic capture of change control etc 10-32 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-33 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 69 Risk How has the 3 • Unison has considerably improved its understanding of risks with detailed Risk management is an important foundation for The top management The organisation's risk Identification and management organisation assessments and new thinking about risk management proactive asset management. Its overall purpose is to team in conjunction management framework assessment of asset process(es) documented • There is still a lot of work to do on understanding the condition of the understand the cause, effect and likelihood of adverse with the organisation's and/or evidence of related risk across process(es) and/ assets, e.g. overheads and understanding their future risks. Planned work events occurring, to optimally manage such risks to senior risk management specific process(es) the asset lifecycle or procedure(s) for includes age tracking and sampling of segments an acceptable level, and to provide an audit trail for representatives. There and/ or procedure(s) is fully documented. the identification and • Benchmarks are being undertaken with other companies and the EEA the management of risks. Widely used standards may also be input from that deal with risk control The organisation can assessment of asset working group to then develop a strategy for overheads require the organisation to have process(es) and/or the organisation's Safety, mechanisms. Evidence demonstrate that and asset management • Scenarios are being used to assess future risks, e.g. electric vehicles. procedure(s) in place that set out how the organisation Health and Environment that the process(es) appropriate documented related risks throughout Current work has assessed likely peak loads per house and expected identifies and assesses asset and asset management team. Staff who carry and/or procedure(s) are mechanisms are the asset life cycle? future spend to ensure network can support likely take-up of EVs related risks. The risks have to be considered across out risk identification and implemented across the integrated across life cycle • Extreme events are being anticipated resulting from climate change. the four phases of the asset lifecycle (e.g. para 4.3.3 assessment. business and maintained. phases and are being Contingency models are tested in network development, considering of PAS 55). Evidence of agendas consistently applied. abnormal rates of events and minutes from risk • Still a developing field for Unison as they consider refinement of their risk management meetings. matrix and how it is calculated Evidence of feedback • More to be done on risk ranking assets based on credible condition in to process(es) and/or information procedure(s) as a result of incident investigation(s). Risk registers and assessments. 79 Use and How does the 3 • SD0001 defines network competencies and qualifications needed which Widely used AM standards require that the output from Staff responsible for risk The organisations risk Outputs from risk maintenance organisation ensure is the basis for the current competency assessment risk assessments are considered and that adequate assessment and those management framework. assessments are of asset risk that the results of • SD1600 defines requirements for roles and assist with training design resource (including staff) and training is identified to responsible for developing The organisation's consistently and information risk assessments • VAULT is used to manage training, expiry of qualification, competency match the requirements. It is a further requirement and approving resource resourcing plan(s) and systematically used provide input into reporting and the training schedule that the effects of the control measures are and training plan(s). training and competency as inputs to develop the identification of • Training coordinators are used to ensure competency development and considered, as there may be implications in resources There may also be input plan(s). The organisation resources, training and adequate resources and certification and training required to achieve other objectives. from the organisation's should be able to competency requirements. training and competency • Requirements for training are updated all the time, e.g. PDA for RMUs Safety, Health and demonstrate appropriate Examples and evidence is needs? • Assessments are made and tracked Environment team. linkages between the available. • This is also applied to external resources content of resource • Competent process which is sustainable plan(s) and training and competency plan(s) to the risk assessments and risk control measures that have been developed. 82 Legal and other What procedure does 3 • Unison legal team are meticulous in assessing statutory and regulatory In order for an organisation to comply with its legal, Top management. The The organisational Evidence exists to requirements the organisation obligations regulatory, statutory and other asset management organisations regulatory processes and procedures demonstrate that the have to identify and • The obligations are communicated to the asset management teams requirements, the organisation first needs to ensure team. The organisation's for ensuring information organisation's legal, provide access to and improvements will be sought and implemented. Urgent issues are that it knows what they are (e.g. PAS 55 specifies this legal team or advisors. of this type is identified, regulatory, statutory and its legal, regulatory, escalated to be priorities in s 4.4.8). It is necessary to have systematic and The management made accessible to those other asset management statutory and other • CEO signs off on compliance based on technical assurances auditable mechanisms in place to identify new and team with overall requiring the information requirements are identified asset management • Competent process which is sustainable changing requirements. Widely used AM standards responsibility for the asset and is incorporated into and kept up to date. requirements, and also require that requirements are incorporated into management system. The asset management Systematic mechanisms how is requirements the asset management system (e.g. procedure(s) and organisation's health and strategy and objectives. for identifying relevant incorporated into the process(es)). safety team or advisors. legal and statutory asset management The organisation's policy requirements. system? making team. 10-34 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-35 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 88 Life Cycle How does the 3 • The processes for establishing new assets are not consistent, with some Life cycle activities are about the implementation of Asset managers, design Documented process(es) Effective process(es) and Activities organisation establish good and some needing improvement asset management plan(s) i.e. they are the "doing" staff, construction staff and procedure(s) procedure(s) are in place implement and maintain • High level work flows are available specifying interface between UNL and phase. They need to be done effectively and well in and project managers which are relevant to manage and control process(es) for the UCSL order for asset management to have any practical from other impacted areas to demonstrating the the implementation of implementation of its • Monthly report indicated 2 out of 3 large projects ~5% behind on progress meaning. As a consequence, widely used standards of the business, e.g. effective management asset management plan(s) asset management based on expenditure committed (e.g. PAS 55 s 4.5.1) require organisations to have in Procurement. and control of life cycle during activities related to plan(s) and control of • Monthly report indicates reasonable rate of information updates from place appropriate process(es) and procedure(s) for activities during asset asset creation including activities across the project work the implementation of asset management plan(s) and creation, acquisition, design, modification, creation, acquisition • While the quality of this work is seen to be patchy, Unison is control of lifecycle activities. This question explores enhancement including procurement, construction or enhancement of commissioning and refurbishing assets those aspects relevant to asset creation. design, modification, and commissioning. assets. This includes procurement, construction design, modification, and commissioning. procurement, construction and commissioning activities? 91 Life Cycle How does the 2 • The planned work appears to be competent and well managed, with Having documented process(es) which ensure Asset managers, Documented procedure The organisation is in Activities organisation ensure crews reported to be completing as per schedule the asset management plan(s) are implemented operations managers, for review. Documented the process of putting that process(es) and/ • The rate of unplanned maintenance and hence the effectiveness of the in accordance with any specified conditions, in a maintenance managers procedure for audit of in place process(es) or procedure(s) for the planned maintenance is a concern manner consistent with the asset management policy, and project managers process delivery. Records and procedure(s) to implementation of asset • The process is efficient in defining the work which needs to be done with strategy and objectives and in such a way that cost, from other impacted areas of previous audits, manage and control the management plan(s) routine monitoring and follow up risk and asset system performance are appropriately of the business. improvement actions and implementation of asset and control of activities • There are issues with schedule management and route allocation, which controlled is critical. They are an essential part of documented confirmation management plan(s) during maintenance can mean use of resources is not always efficient turning intention into action (e.g. as required by PAS that actions have been during this life cycle (and inspection) of • Teams tend to get all their work completed within the target month and 55 s 4.5.1). carried out. phase. They include a assets are sufficient this is covered in a monthly operations report process for confirming the to ensure activities process(es)/procedure(s) are carried out under are effective and if specified conditions, are necessary carrying out consistent with asset modifications. management strategy and control cost, risk and performance? 95 Performance How does the 2 • Monthly performance reporting was good, and Unison is well placed to Widely used AM standards require that organisations A broad cross-section of Functional policy and/ The organisation is and condition organisation measure continue to refine their reporting establish implement and maintain procedure(s) the people involved in the or strategy documents developing coherent monitoring the performance and • Considerable increase in photographs provided with feedback on to monitor and measure the performance and/or organisation's asset- for performance or asset performance condition of its assets? completed work using the mobility solution condition of assets and asset systems. They further related activities from condition monitoring monitoring linked to asset • What drags this score down is the condition monitoring element which is set out requirements in some detail for reactive data input to decision- and measurement. management objectives. acknowledged as a weakness and proactive monitoring, and leading/lagging makers, i.e. an end-to end The organisation's Reactive and proactive performance indicators together with the monitoring assessment. This should performance monitoring measures are in place. or results to provide input to corrective actions and include contactors and frameworks, balanced Use is being made of continual improvement. There is an expectation that other relevant third parties scorecards etc. Evidence leading indicators and performance and condition monitoring will provide as appropriate. of the reviews of any analysis. Gaps and input to improving asset management strategy, appropriate performance inconsistencies remain. objectives and plan(s). indicators and the action lists resulting from these reviews. Reports and trend analysis using performance and condition information. Evidence of the use of performance and condition information shaping improvements and supporting asset management strategy, objectives and plan(s). 10-36 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-37 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 99 Investigation of How does the 2 • Key performance driver is safety management including near miss Widely used AM standards require that the The organisation's Process(es) and The organisation are in asset-related organisation ensure meetings and reviews organisation establishes implements and maintains safety and environment procedure(s) for the the process of defining failures, responsibility and • RCAs are undertaken at times to consider significant faults as part of an process(es) for the handling and investigation of management team. handling, investigation and the responsibilities incidents and the authority for the overall faults reduction process. But this process is variable, and Unison is failures incidents and non-conformities for assets and The team with overall mitigation of asset-related and authorities with nonconformities handling, investigation not yet there on RCA sets down a number of expectations. Specifically this responsibility for the failures, incidents and evidence. Alternatively and mitigation • High profile incidents are assessed thoroughly with two levels of ICAM question examines the requirement to define clearly management of the emergency situations there are some gaps or of asset-related utilised depending on severity of incident responsibilities and authorities for these activities, and assets. People who and non conformances. inconsistencies in the failures, incidents and • Failed items are being brought back from the field for assessment and communicate these unambiguously to relevant people have appointed roles Documentation of identified responsibilities/ emergency situations collaboration on fault assessment has improved including external stakeholders if appropriate. within the asset-related assigned responsibilities authorities. and non conformances • It is recognised that there are RCA-like processes and in the case of investigation procedure, and authority to is clear, unambiguous, significant events, the reports provided as evidence were excellent from those who carry out employees. Job understood and • What is missing is the sense of strategy to manage down defects which the investigations to senior Descriptions, Audit communicated? frankly will be limited until the role of UNL engineers is reprised and they management who review reports. Common get more out of the day to day work indicated in the interviews as part of the recommendations. communication systems the current state of the interface with UCSL Operational controllers i.e. all Job Descriptions on responsible for managing Internet etc. the asset base under fault conditions and maintaining services to consumers. Contractors and other third parties as appropriate. 105 Audit What has the 4 • 17 specialist audits have been scheduled at varying frequencies over the This question seeks to explore what the organisation The management The organisation's asset- The organisation's organisation done to next 3 years, with the frequency aligned with the perceived maturity of the has done to comply with the standard practice AM team responsible for related audit procedure(s). process(es) surpass establish procedure(s) function audit requirements (e.g. the associated requirements its asset management The organisation's the standard required to for the audit of its asset • The audit process raises CI tasks in the registered CI plan in a of PAS 55 s 4.6.4 and its linkages to s 4.7). procedure(s). The team methodology(s) by which it comply with requirements management system sustainable manner with overall responsibility determined the scope and set out in a recognised (process(es))? • High levels of non-conformance are then treated by the CI rules as for the management frequency of the audits standard. special cases which need to be closed out within 90 days of the assets. Audit and the criteria by which it • The monthly management review process ensures audits are progressing teams, together with identified the appropriate The assessor is advised to schedule, raising CI tasks and these tasks are getting closed out key staff responsible audit personnel. Audit to note in the Evidence • This could become a competitive advantage for Unison since it for asset management. schedules, reports section why this is the is reported and tracked by senior management to drive continual For example, Asset etc. Evidence of the case and the evidence improvement Management Director, procedure(s) by which seen. • A measure of its success is its ongoing ability to identify actions which not Engineering Director. the audit results are only enable people to do their work but focus them on tasks which deliver People with responsibility presented, together direct value in terms of cost and risk for carrying out risk with any subsequent • This function needs to continually prove that it is driving measurable assessments. communications. The risk improvement assessment schedule or risk registers. 109 Corrective & How does the 3 • CI register or plan drives CARs and Pas, e.g. earth grid data was found to Having investigated asset related failures, incidents The management Analysis records, Mechanisms are Preventative organisation instigate be deficient and locations of earth grids are not recorded and non-conformances, and taken action to mitigate team responsible for meeting notes and consistently in place and action appropriate corrective • These are tracked monthly and feedback provided to the originator their consequences, an organisation is required its asset management minutes, modification effective for the systematic and/or preventive • Competent process which appears to be sustainable to implement preventative and corrective actions procedure(s). The team records. Asset instigation of preventive actions to eliminate to address root causes. Incident and failure with overall responsibility management plan(s), and corrective actions or prevent the causes investigations are only useful if appropriate actions are for the management of the investigation reports, audit to address root causes of identified poor taken as a result to assess changes to a businesses assets. Audit and incident reports, improvement of non compliance or performance and non risk profile and ensure that appropriate arrangements investigation teams. Staff programmes and projects. incidents identified by conformance? are in place should a recurrence of the incident responsible for planning Recorded changes to investigations, compliance happen. Widely used AM standards also require and managing corrective asset management evaluation or audit. that necessary changes arising from preventive or and preventive actions. procedure(s) and corrective action are made to the asset management process(es). Condition system. and performance reviews. Maintenance reviews. 10-38 SECTION 10 SCHEDULES SECTION 10 SCHEDULES 10-39 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29 UNISON NETWORKS LIMITED | REGULATORY ASSET MANAGEMENT PLAN UPDATE 2019-29

Question Record/documented Maturity narrative for Function Question Score Evidence—Summary Why Who No. Information assessed score 113 Continual How does the 4 • Unison has communicated and educated its teams in CI Widely used AM standards have requirements to The top management Records showing The organisation's Improvement organisation achieve • The CI plan is reviewed to ensure its content is credible and actionable establish, implement and maintain process(es)/ of the organisation. systematic exploration of process(es) surpass continual improvement • Domain owners are appointed to manage groups of tasks procedure(s) for identifying, assessing, prioritising The manager/team improvement. Evidence the standard required to in the optimal • The domain owners prioritise CI tasks and assign resources to get them and implementing actions to achieve continual responsible for managing of new techniques comply with requirements combination of costs, completed. They are accountable for the backlog of tasks in their domain improvement. Specifically there is a requirement to the organisation's asset being explored and set out in a recognised asset related risks and • Management reviews monitor the backlog demonstrate continual improvement in optimisation of management system, implemented. Changes standard. the performance and • There is a linkage of CI to performance evaluation. Cis are linked to cost risk and performance/condition of assets across including its continual in procedure(s) and condition of assets and whether Unison AMOs are being met. the life cycle. This question explores an organisation's improvement. Managers process(es) reflecting The assessor is advised asset systems across • Well defined and supported CI process which is an exemplar capabilities in this area—looking for systematic responsible for policy improved use of to note in the Evidence the whole life cycle? improvement mechanisms rather that reviews and development and optimisation tools/ section why this is the audit (which are separately examined). implementation. techniques and available case and the evidence information. Evidence seen. of working parties and research. 115 Continual How does the 3 • Unison actively considers new technology, looking at other EDBs and One important aspect of continual improvement The top management Research and The organisation actively Improvement organisation seek and external organisations is where an organisation looks beyond its existing of the organisation. development engages internally and acquire knowledge • It was noted that Unison is working hard to understand the business of boundaries and knowledge base to look at what The manager/team projects and records, externally with other asset about new asset the future and what they need to do to prepare for it 'new things are on the market'. These new things responsible for managing benchmarking and management practitioners, management related • Competent process to investigate, report back and then trial new can include equipment, process(es), tools, etc. An the organisation's asset participation knowledge professional bodies and technology and technologies and materials organisation which does this (e.g. by the PAS 55 management system, exchange professional relevant conferences. practices, and evaluate • No evidence of a strategic plan for how technology and improved s 4.6 standards) will be able to demonstrate that including its continual forums. Evidence of Actively investigates and their potential benefit to practices will assist the organisation moving forward it continually seeks to expand its knowledge of all improvement. People who correspondence relating evaluates new practices the organisation? things affecting its asset management approach monitor the various items to knowledge acquisition. and evolves its asset and capabilities. The organisation will be able to that require monitoring Examples of change management activities demonstrate that it identifies any such opportunities for 'change'. People that implementation and using appropriate to improve, evaluates them for suitability to its own implement changes to evaluation of new tools, developments. organisation and implements them as appropriate. the organisation's policy, and techniques linked This question explores an organisation's approach to strategy, etc. People to asset management this activity. within an organisation strategy and objectives. with responsibility for investigating, evaluating, recommending and implementing new tools and techniques, etc. A GLOSSARY OF TERMS APPENDIX

GLOSSARY OF TERMS APPENDIXAPPENDIX GLOSSARYGLOSSARY OF OF TERMS TERMS A -A1 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

CONTENTS A. Glossary of Terms...... A-2

© Unison Networks Limited 2019 A - 2APPENDIXAPPENDIX GLOSSARYGLOSSARY OF OFTERMS TERMS APPENDIXAPPENDIX GLOSSARYGLOSSARY OF OF TERMS TERMS A -A3 UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29 UNISON NETWORKSUNISON LIMITED NETWORKS | REGULATORY LIMITED | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN PLAN UPDATE UPDATE 201 2019-299-29

IP Internet Protocol Peanut Vacuum Capacitor Switch A. GLOSSARY OF TERMS IPT Investment Prioritisation Tool PILC Paper Insulated, Lead Covered IT Information Technology PLC Programmable Logic Controller

A Amperes DER Distributed Energy Resources k Thousand POS Point of Supply

AAAC All Aluminium Alloy Conductor Deuar Deuar Mechanical Partial Load Deflection Testing kV Kilovolt PSMS Public Safety Management System

AAC All Aluminium Conductor DFA Delegated Financial Authority kVA 1000 Volt-Amps PV Solar Photovoltaic

ABB Supplier DG Distributed Generation kVAr Reactive power PVC Polyvinyl Chloride

ABC Aerial Bundled Cable DGA Dissolved Gas Analysis L+G Landis + Gyr R:P Reactive to Preventative Cost

ABS Air Break Switch DMAIC Define, Measure, Analyse, Improve, Control LCAM Lifecycle Asset Management RAMP Regulatory Asset Management Plan

AC Alternating Current DNP-3 Distributed Network Protocol LCP Legislative Compliance Programme RC Replacement Cost

ACC Accident Compensation Corporation DPP Commerce Commission’s Default Price Path LED Light Emitting Diode RCS Remote Controlled Switch

ACSR Aluminium Conductor Steel Reinforced DR Disaster Recovery LFT Load Forecast Tool RE Renewal Envelope

ACTIVA Software Package EAMS Enterprise Asset Management System LMVP Model of Reyrolle Pacific Switchgear REG D A Eberle Voltage Regulating Relay

ADMS Advanced Distribution Management System EDB Electricity Distribution Business LTOS Live Tank Oil Sampling RLE Residual Life Expectancy

AE Augmentation Envelope EDSS Expert Decision Support System LV Low Voltage RMS Ring Main Switchgear

AEI Associated Electrical Industries EMT Executive Management Team m Million RMU Ring Main Unit

AMMAT Asset Management Maturity Assessment Tool ENTEC Supplier MAGTECH Supplier RPS Reyrolle Pacific

AMO Asset Management Objective ERC Executive Risk Committee MCR Maximum Continuous Rating RTU Remote Terminal Unit

AMP Asset Management Plan EVA Ethylene Vinyl Acetate MD Maximum Demand S/S Substation

AMS Asset Management System FAIDI Feeder Average Interruption Duration Index MDS Master Data Services SAIDI System Average Interruption Duration Index

AOC Alternative Operations Centre FAIFI Feeder Average Interruption Frequency Index MED Major Event Day SAIFI System Average Interruption Frequency Index

ARC Audit and Risk Committee FRS-3 Financial Reporting Standards MIND Mineral Insulated Non-Draining SAMP Strategic Asset Management Plan

ARP Asset Renewal Planning GEC The General Electric Company MPT40 Deuar Mechanical Partial Load Deflection Testing SAN Storage Area Network

ASEA Merged with Brown Boveri to create ABB GIS Geo-spatial Information System MRP Mighty River Power SAP Software Package

BCP Business Continuity Planning GMI Annual Invasive Inspection MV Medium Voltage SCADA Supervisory Control and Data Acquisition

BMSF Business Management Framework GPS Global Positioning System MVA Mega Volt-Amps SCI Statement of Corporate Intent

CAD Computer Aided Design GSP Great Safety Performance MW Megawatt SF6 Sulphur Hexafluoride

CAPEX Capital Expenditure GWh Giga Watt-hours NIT Network Investment Toolbox SH State Highway

CB Circuit Breaker GXP Grid Exit Point NOC Network Operations Centre SI Serviceability Index

CBD Central Business District H&S Health and Safety Specific, Measurable, Achievable, Relevant, NPS Net Promoter Score SMART Timebound CBRM Condition Based Risk Management H2S Hydrogen Sulphide

CDEM Civil Defence Emergency Management HBPCT Hawke’s Bay Power Consumers’ Trust NPV Net Present Value SO2 Sulphur Dioxide

CI Continual Improvement HILP High Impact Low Probability NZ New Zealand Stn Station

CorMon Corrosion Monitoring HP Hewlett Packard NZIER New Zealand Institute for Economic Research SWER Single Wire Earth Return

CPI Consumer Price Index HR Human Relations OH Overhead TCP Transmission Control Protocol

CRM Customer Relationship Management HV High Voltage OHUG Overhead to Underground TEC Technical Evaluation Committee

CT Current Transformer ICP Installation Control Point OPEX Operational Expenditure TELARCC Supplier

DC Direct Current IMG Information Management Group PA Partial Achievement Triple-R Repair, Refurbish, Replace

DDO Dominion Drop Out IMP Insulator Pollution Monitoring PD Partial Discharge UCSL Unison Contracting Services Limited PDCA Plan, Do, Check, Act UG Underground

© Unison Networks Limited 2019 © Unison Networks Limited 2019 A - 4APPENDIXAPPENDIX GLOSSARYGLOSSARY OF OFTERMS TERMS UNISON NETWORKS NETWORKS LIMITED LIMITED | REGULATORY | REGULATORY ASSET MANAGEMENT ASSET MANAGEMENT PLAN UPDATE 2019-2 PLAN9 UPDATE 2019-29

UHF Ultra-High Frequency VoIP Voice over Internet Protocol

UNISAFE A model of ABB switchgear VPT Vegetation Prioritisation Tool

UNL Unison Networks Limited VRR Voltage Regulating Relay

Var Volt Ampere Reactive VT Voltage Transformer

VHF Very High Frequency WPC Works Planning and Consolidation