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ASSET MANAGEMENT PLAN 2019-2029 Contents 1 EXECUTIVE SUMMARY ASSET MANAGEMENT PLAN 2019-2029 Contents 1 EXECUTIVE SUMMARY ....................................................................................................... 5 1.1 OVERVIEW AND PLAN PURPOSE ........................................................................................... 5 1.2 CORPORATE OBJECTIVES AND ASSET MANAGEMENT DRIVERS ........................................... 5 1.3 STATUS OF PROGRAMMES AND PROJECTS .......................................................................... 6 1.4 ASSET MANAGEMENT SYSTEMS AND INFORMATION .......................................................... 6 1.5 NETWORK CONFIGURATION AND ASSET DESCRIPTION ....................................................... 7 1.6 SERVICE LEVEL OBJECTIVES ................................................................................................... 7 1.7 ASSET MAINTENANCE AND RENEWALS PLAN .................................................................... 10 1.8 NETWORK DEVELOPMENT PLANS ...................................................................................... 12 1.9 RISK MANAGEMENT............................................................................................................ 14 1.10 PERFORMANCE GAP ANALYSIS AND IMPROVEMENT PLANS ............................................. 14 2 BACKGROUND AND OBJECTIVES ...................................................................................... 17 2.1 ASSET MANAGEMENT PLAN PURPOSE ............................................................................... 17 2.2 CORPORATE OBJECTIVES .................................................................................................... 17 2.3 ASSET MANAGEMENT PLANNING DRIVERS ........................................................................ 18 2.4 PLANNING PERIOD AND REVIEW PERIODS ......................................................................... 19 2.5 STAKEHOLDERS ................................................................................................................... 19 2.6 ACCOUNTABILITIES AND RESPONSIBILITIES........................................................................ 21 2.7 AMP INTERACTION WITH CORPORATE GOALS AND BUSINESS PLANNING ........................ 23 2.8 ASSET MANAGEMENT INFORMATION SYSTEMS ................................................................ 24 2.9 INFORMATION SYSTEMS GAP ANALYSIS:............................................................................ 25 2.10 ASSET MANAGEMENT PLAN FORMULATION AND STRATEGIC REVIEW PROCESS ............. 25 3 NETWORK CONFIGURATION AND ASSET DESCRIPTION .................................................. 29 3.1 NETWORK CONFIGURATION ............................................................................................... 29 3.2 ASSET JUSTIFICATION AND NETWORK OPTIMISATION ...................................................... 31 3.3 ASSET DESCRIPTION ............................................................................................................ 31 3.4 NETWORK VALUATION ....................................................................................................... 40 4 NETWORK PERFORMANCE............................................................................................... 41 4.1 ASSET PERFORMANCE......................................................................................................... 41 4.2 ASSET EFFECTIVENESS ......................................................................................................... 42 4.3 ASSET EFFICIENCY ............................................................................................................... 44 4.4 PERFORMANCE OBJECTIVES ............................................................................................... 44 4.5 JUSTIFICATION FOR SERVICE LEVEL TARGETS ..................................................................... 47 Network Tasman Asset Management Plan 2019-2029 Page 2 5 NETWORK DEVELOPMENT PLAN ..................................................................................... 51 5.1 INTRODUCTION ................................................................................................................... 51 5.2 NETWORK DEVELOPMENT POLICIES ................................................................................... 51 5.3 NON ASSET SOLUTION POLICY ............................................................................................ 52 5.4 DISTRIBUTED GENERATION POLICY .................................................................................... 53 5.5 PLANNING CRITERIA ............................................................................................................ 53 5.6 NETWORK SECURITY POLICY ............................................................................................... 54 5.7 SECURITY DESIGN STANDARD ............................................................................................. 55 5.8 DEMAND FORECAST ............................................................................................................ 56 5.9 DEVELOPMENT PLAN - DETAIL ............................................................................................ 61 5.11 MAJOR NETWORK DEVELOPMENT PROJECTS 2018/19 ...................................................... 72 5.12 MAJOR NETWORK DEVELOPMENT PROJECTS 2019/20-2022/23 ...................................... 72 6 ASSET RENEWAL AND MAINTENANCE PLAN ................................................................... 75 6.1 PLANNING CRITERIA AND ASSUMPTIONS .......................................................................... 75 6.2 ASSET RENEWAL AND REFURBISHMENT POLICY ................................................................ 76 6.3 ASSET CLASSES .................................................................................................................... 76 6.4 ASSET MAINTENANCE AND RENEWAL CATEGORIES .......................................................... 77 6.5 ASSET INSPECTION AND CONDITION MONITORING........................................................... 77 6.6 LIFECYCLE ASSET MAINTENANCE AND RENEWAL POLICIES BY ASSET CLASS ..................... 78 6.7 VEGETATION ....................................................................................................................... 90 7 NON NETWORK ASSETS ................................................................................................... 93 7.1 NON NETWORK ASSET DESCRIPTION ................................................................................. 93 7.2 NON NETWORK ASSET DEVELOPMENT, MAINTENANCE AND RENEWAL POLICIES ........... 93 7.3 NON NETWORK ASSET CAPITAL, MAINTENANCE AND RENEWAL PROJECTS 2018-2023 ... 93 8 RISK MANAGEMENT ......................................................................................................... 94 8.1 OVERVIEW ........................................................................................................................... 94 8.2 RISK MANAGEMENT STRATEGY .......................................................................................... 94 8.3 RISK MANAGEMENT BACKGROUND ................................................................................... 94 8.4 NETWORK RISKS CONTEXT .................................................................................................. 95 8.5 RISK BENCHMARKING ......................................................................................................... 97 8.6 NETWORK RISK ANALYSIS ................................................................................................... 97 8.7 EARTHQUAKE PERFORMANCE AND RISK .......................................................................... 105 8.8 RISK MANAGEMENT CONCLUSIONS ................................................................................. 108 9 PERFORMANCE MEASUREMENT, EVALUATION AND IMPROVEMENT .......................... 109 9.1 FINANCIAL AND PHYSICAL PERFORMANCE ...................................................................... 109 9.2 SERVICE LEVEL AND ASSET PERFORMANCE ...................................................................... 112 Network Tasman Asset Management Plan 2019-2029 Page 3 9.3 GAP ANALYSIS AND IMPROVEMENT PLANS ..................................................................... 114 10 PLANNING ASSUMPTIONS ............................................................................................. 116 10.1 SIGNIFICANT ASSUMPTIONS ............................................................................................ 116 10.2 FACTORS THAT MAY AFFECT AMP OUTCOMES ............................................................... 118 LIST OF APPENDICES............................................................................................................... 120 A. NETWORK LAYOUT ............................................................................................................ 121 B. GROWTH PROJECTION ...................................................................................................... 129 C. NETWORK PERFORMANCE STATISTICS ............................................................................. 131 D. CAPITAL EXPENDITURE PROJECTION NETWORK DEVELOPMENT & ASSET RENEWAL ..... 132 E. SPECIFIC NETWORK DEVELOPMENT & ASSET RENEWAL PROJECTS ................................. 133 F. NETWORK MAINTENANCE AND OPERATIONS EXPENDITURE PROJECTION ..................... 136 G. TYPICAL ASSET MAINTENANCE AND RENEWALS ACTIVITIES ...........................................
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