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Plan. Build. Deliver. Powerlink Queensland Plan. Build. Deliver. Powerlink Queensland POWERLINK QUEENSLAND ABN 82 078 849 233 Annual Plan. 33 Harold Street Virginia Queensland Australia 4014 PO Box 1193 Virginia Report Queensland Australia 4014 Build. Telephone +61 7 3860 2111 2006/07 Facsimilie +61 7 3860 2100 [email protected] www.powerlink.com.au Deliver. Annual Report 2006/07 Plan. Contents Highlights . .3 Community . .40 In Profile . .4 People . .46 Build. Corporate . .8 Corporate Governance . .52 Financial Overview 8 Board of Directors 58 Chairman’s Review 10 Executive Leadership Team 60 Chief Executive’s Review 12 Directors’ Report 65 Powerlink and the Financials . .68 16 National Electricity Market . Statistical Summary . .110 20 Network Strategy . Index . .114 28 Network Development . Glossary and Terms of Measurement . .116 34 Environment . Acknowledgements . .118 This report has been prepared in accordance with the provisions of the Government Owned Corporations Act 1993 and the Financial Administration and Audit Act 1977. It is submitted to our shareholding Ministers for presentation to the Legislative Assembly Queensland. Further copies may be obtained by telephoning (07) 3860 2111 or writing to: Corporate Communication Manager, Powerlink Queensland, PO Box 1193 Virginia Queensland Australia 4014. Deliver. Pictured Front Cover: Andre Leebody, Trade Technical – Barehand Live Linesperson Pictured at right: Top: Gary Edwards, Maintenance Services Manager Middle: Brett Handley, Project Delivery Engineer Bottom: Geoff Dusha, Secondary Systems Specialist Plan. Powerlink’s long term strategic planning ensures Queensland’s future electricity transmission network needs will be met. Build. Our dedicated people are working hard to build our network and expand its capacity in the most effi cient way. Deliver. Powerlink is performing to world’s best standards, delivering the best value service to the people of Queensland. POWERLINK ANNUAL REPORT 2006/07 1 Mission Powerlink Queensland is committed to delivering transmission network and related services at world class levels of safety, reliability and cost effectiveness. Vision To be the leading Transmission Network Service Provider in Australia and one of the best in the world. Values • Reasonable returns for the owners. • Value for money services to our customers. • The wellbeing of our employees. • Community recognition as a good corporate citizen. • Fair and courteous dealings with our suppliers. Helicopter stringing of the Belmont to Murarrie transmission line in Brisbane. 2 POWERLINK ANNUAL REPORT 2006/07 Highlights Electricity demand in Queensland Easements for nine new transmission 2006/07 grew to record highs, driven by the lines and six new substations that will worldwide resources boom, strong be developed in the future to meet industrial and population growth and Queensland’s emerging electricity Annual Report the increased use of domestic air needs were gazetted. Refer to conditioning. Refer to page 20. page 26. The Powerlink Annual Report is a summary of our fi nancial Powerlink invested a record Initiatives to improve operating and non-fi nancial performance $583 million in capital works during effi ciencies and network 2006/07 and expects to invest more performance were implemented. during the 2006/07 year. than $2.6 billion over the next fi ve Refer to page 23. Powerlink presents this Annual years to develop our transmission A range of water management Report to our shareholding network ahead of electricity demand effi ciencies to further enshrine Ministers and other stakeholders growth. Powerlink continued to be responsible water use throughout with an interest in our activities. the fastest growing Transmission our operations was introduced. Network Service Provider in the During 2006/07, Powerlink focused Refer to page 36. National Electricity Market. on optimising our capabilities Several new research projects to Refer to page 23. and processes to plan, build and identify opportunities to improve The Australian Energy Regulator the effectiveness of our land deliver a record $583 million fi nalised its determination of management practices were initiated. capital works program to meet the Powerlink’s regulated revenue stream Refer to page 37. forecast electricity demand growth. for the period 1 July 2007 until Within this context, this 30 June 2012. The determination Eleven new projects in Townsville enables Powerlink to affi rm our and Thuringowa were funded by Annual Report focuses on our commitment to the timely delivery of the Community Environment Fund performance in the areas of the our large capital works program to to enhance the environmental National Electricity Market, support Queensland’s growth. properties, and to minimise the network, environment, community visual impact of Powerlink’s Refer to page 19. and people, and describes our transmission infrastructure in the Twenty major transmission line and area. Refer to page 40. corporate governance processes substation projects were under and fi nancial performance. We also construction, and seven major Two new levels of management identify the key challenges we face projects were commissioned during development were launched to the year. Refer to page 30. complement our existing leadership in the year ahead. programs, and to develop our Three Rule Consultation and This report, past Powerlink Annual people to meet Powerlink’s future Regulatory Tests recommending Reports and additional information capability requirements. Refer to future augmentations to our network page 49. about Powerlink’s activities are in Northern, Central and Southern available at www.powerlink.com.au Queensland were completed. or by calling 07 3860 2111. Refer to page 28. POWERLINK ANNUAL REPORT 2006/07 3 In Profi le Our business: Powerlink owns, develops, operates and maintains the high voltage electricity transmission network that underpins Queensland’s economic prosperity. We plan our network development to Our activities and operations are ensure a secure, reliable, safe and cost undertaken in compliance with effective high voltage electricity grid the Electricity Act 1994, the for Queensland customers. National Electricity Rules and other relevant legislation. We build our network by applying leading engineering and environmental As a Transmission Network Service solutions, and with respect for the Provider (TNSP) in the National landowners and communities Electricity Market (NEM), Powerlink we encounter. operates its transmission system to facilitate the transfer of power between a world class transmission We deliver participants within the NEM. We do not service, operated by highly skilled buy or sell electricity. people applying leading edge technology and processes. We work closely with our customers to provide access to our network under a Our transmission network transports non-discriminatory, open-access regime. electricity generated at power stations Powerlink is a regulated monopoly throughout the State and delivers it business, with revenues set by the to major electricity consumers and Australian Energy Regulator (AER). electricity distributors for supply to customers. Our work includes planning and building new high voltage transmission lines and substations to provide continued security and reliability of the Queensland electricity grid. Our grid is an integral part of the export infrastructure chain. 4 POWERLINK ANNUAL REPORT 2006/07 We are committed to achieving operational excellence in all facets of Powerlink’s business. Brett Hanan, Training and Safety Advisor, and Darren Pegram, Electrical Safety Advisor, at Alligator Creek Substation near Mackay. POWERLINK ANNUAL REPORT 2006/07 5 Our strategic direction Our organisation In We are committed to achieving Powerlink is a Queensland Government operational excellence in all facets of owned corporation established on Powerlink’s business – safety, network 1 January 1995 under the Government Profi le performance, environment and cost Owned Corporations (GOC) Act 1993. effi ciency. This strategic direction is Our shareholding Ministers for the underpinned by our corporate, team 2006/07 fi nancial period were the and individual strategies and actions. Deputy Premier, Treasurer and Minister for Infrastructure, and the Minister for For the past eight years, Powerlink’s Mines and Energy. network has benchmarked in the top quartile internationally, in terms of Powerlink is governed by a Board of network reliability and cost effi ciency. Directors, and managed by an Executive Leadership Team committed to working Our demonstrated performance, together with our people to achieve together with our commitment to operational excellence and sustainable continuous improvement, promotes business performance. our stakeholders’ confi dence in our ability to continue to deliver a safe, The Powerlink Board is responsible for reliable high voltage electricity the overall corporate governance of supply to meet the fast growing the corporation and its subsidiary Queensland demand. companies, setting the organisation’s strategic direction, setting goals for management, and establishing the policies and operational framework for the corporation. The Board and management work together to establish and maintain an environment and framework that ensures accountability throughout Powerlink that is in the best interests of the corporation, shareholders and other stakeholders. Cairns Our network Powerlink’s $3.9 billion transmission Townsville network extends 1,700 kilometres from north of Cairns to the New South Wales
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