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Distribution Annual Planning Report (DAPR) Is Prepared and Made Available Solely for Information Purposes

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Distribution Annual Planning Report (DAPR) Is Prepared and Made Available Solely for Information Purposes >fcon 2019-20 to 2023-24 2020 Version Control Version Date Description 1.0 22/12/2020 Final Further Information Further information on Ergon Energy’s network management is available on our website.1 Disclaimer Ergon Energy’s Distribution Annual Planning Report (DAPR) is prepared and made available solely for information purposes. While care was taken in the preparation of the information in the DAPR, and it is provided in good faith, Ergon Energy accepts no responsibility or liability for any loss or damage that may be incurred by any person acting in reliance on this information or assumptions drawn from it, except to the extent that liability under any applicable Queensland or Commonwealth of Australia statute cannot be excluded (including without limitation, liability to any person by reason of negligence or negligent mis-statement). It contains assumptions regarding, among other things, economic growth, load forecasts and network capacity, which may or may not prove to be correct. The forecasts included in the DAPR involve analysis which are subject to significant uncertainties and contingencies, many of which are out of the control of Ergon Energy. Ergon Energy makes no representation or warranty as to the accuracy, reliability, completeness or suitability for any particular purpose of the information in this document. All information should be independently investigated, reviewed, analysed and verified, and must not be relied upon in connection with any investment proposal or decision. All financials presented in the DAPR are correct at the time of writing (Dec 2020) and represent the existing organisational accounting treatment, which may be subject to change. The information contained in the DAPR is subject to annual review. Ergon Energy is obligated to publish future editions by 31st December, in accordance with the National Electricity Rules. 1 Webpage: https://www.ergon.com.au/network/network-management Distribution Annual Planning Report 2020-21 to 2024-25 ii Contents Executive Summary............................................................................................................ 1 1. Introduction ................................................................................................................. 3 1.1 Foreword .................................................................................................................................................... 3 1.2 Network Overview.................................................................................................................................... 4 1.3 Peak Demand ............................................................................................................................................ 6 1.4 Minimum Demand Forecasting ............................................................................................................ 6 1.5 Changes from 2019 DAPR ..................................................................................................................... 8 1.6 DAPR Enquiries........................................................................................................................................ 8 2. Corporate Profile and Asset Management ...................................................................10 2.1 Corporate Overview ..............................................................................................................................10 2.1.1 Vision, Purpose and Values .................................................................................................... 10 2.2 Ergon Energy’s Electricity Distribution Network...........................................................................11 2.3 Network Operating Environment .......................................................................................................14 2.3.1 Physical Environment............................................................................................................... 14 2.3.2 Shareholder and Government Expectations......................................................................... 14 2.3.3 Community Safety .................................................................................................................... 15 2.3.4 EQL Health, Safety and Environment Integrated Management System .......................... 15 2.3.5 Environmental Commitments .................................................................................................. 16 2.3.6 Legislative Compliance ............................................................................................................ 17 2.3.7 Economic Regulatory Environment........................................................................................ 18 2.4 Asset Management Overview .............................................................................................................19 2.4.1 Best Practice Asset Management .......................................................................................... 19 2.4.2 Asset Management Policy ....................................................................................................... 19 2.4.3 Strategic Asset Management Plan......................................................................................... 20 2.5 Investment Process...............................................................................................................................20 2.5.1 Corporate Governance ............................................................................................................ 20 2.5.2 Network Risk Management and Program Optimisation ...................................................... 22 2.5.3 Further Information ................................................................................................................... 22 3. Community and Customer Engagement ......................................................................24 3.1 Overview ..................................................................................................................................................24 3.2 Our Engagement Program...................................................................................................................25 3.2.1 Customer Council and other Forums ..................................................................................... 25 3.2.2 Working with Industry Partners............................................................................................... 25 3.2.3 Community Leader Engagement............................................................................................ 25 3.2.4 Online Engagement.................................................................................................................. 26 3.2.5 Our Customer Research Program ......................................................................................... 26 3.3 What We Have Heard ............................................................................................................................27 3.3.1 Safety First................................................................................................................................. 27 3.3.2 More Affordable Electricity ...................................................................................................... 28 3.3.3 A Secure Supply – Keeping the lights on.............................................................................. 29 3.3.4 A Sustainable Future................................................................................................................ 30 3.4 Our Customer Commitments ..............................................................................................................33 4. Strategic Forecasting ..................................................................................................36 4.1 Forecasting Assumptions ...................................................................................................................36 4.2 Economic Growth ..................................................................................................................................36 4.3 Solar PV....................................................................................................................................................37 4.3.1 Electric Vehicles and Energy (battery) Storage ................................................................... 38 4.3.2 Temperature Sensitive Load ................................................................................................... 38 Distribution Annual Planning Report 2020-21 to 2024-25 iii 4.4 Substation and Feeder Maximum Demand Forecasts .................................................................39 4.4.1 Substation Forecasting Methodology .................................................................................... 40 4.4.2 Transmission Feeder Forecasting Methodology .................................................................. 41 4.4.3 Sub-transmission Feeder Forecasting Methodology ........................................................... 42 4.4.4 Distribution Feeder Forecasting Methodology...................................................................... 42 4.4.5 System Maximum Demand Forecast..................................................................................... 43 4.4.6 System Demand Forecast Methodology ............................................................................... 44 4.4.7 System Maximum Demand Forecast
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