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Asset Management Plan 2011 - 2021

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Asset Management Plan 2011 - 2021 Asset Management Plan 2011 - 2021 Publicly disclosed in March 2011 CONTENTS Contents 0. SUMMARY OF THE PLAN ................................................................................................................... 5 0.1 BACKGROUND AND OBJECTIVES..................................................................................................... 5 0.2 DETAILS OF THE ASSETS ................................................................................................................ 6 0.3 PROPOSED SERVICE LEVELS ......................................................................................................... 7 0.4 DEVELOPMENT PLANS ................................................................................................................... 8 0.5 MANAGING THE ASSET’S LIFECYCLE................................................................................................ 9 0.6 RISK MANAGEMENT ....................................................................................................................... 9 0.7 FUNDING THE BUSINESS................................................................................................................. 9 0.8 PROCESSES AND SYSTEMS ............................................................................................................ 9 0.9 RESOURCING THE BUSINESS ........................................................................................................ 10 0.10 PERFORMANCE AND IMPROVEMENT .............................................................................................. 10 0.11 FEEDBACK AND COMMENTS.......................................................................................................... 10 1. BACKGROUND AND OBJECTIVES.................................................................................................. 11 1.1 PURPOSE OF THE ASSET MANAGEMENT PLAN............................................................................... 11 1.2 INTERACTION WITH OTHER GOALS AND DRIVERS ............................................................................ 12 1.3 KEY PLANNING DOCUMENTS ......................................................................................................... 13 1.4 INTERACTION OF GOALS / STRATEGIES .......................................................................................... 16 1.5 PERIOD COVERED BY THE ASSET MANAGEMENT PLAN................................................................... 16 1.6 STAKEHOLDER INTERESTS ........................................................................................................... 16 1.7 ACCOUNTABILITIES FOR ASSET MANAGEMENT ............................................................................... 20 1.8 SYSTEMS AND PROCESSES .......................................................................................................... 22 2. DETAILS OF THE ASSETS ................................................................................................................ 23 2.1 DISTRIBUTION AREA..................................................................................................................... 23 2.2 NETWORK CONFIGURATION .......................................................................................................... 27 2.3 AGE AND CONDITION OF THE ASSETS BY CATEGORY ...................................................................... 39 2.4 JUSTIFYING THE ASSETS .............................................................................................................. 47 3. PROPOSED SERVICE LEVELS.........................................................................................................49 3.1 CREATING SERVICE LEVELS.......................................................................................................... 49 3.2 CUSTOMER-ORIENTED SERVICE LEVELS........................................................................................ 50 3.3 REGULATORY SERVICE LEVELS..................................................................................................... 53 3.4 JUSTIFYING THE SERVICE LEVELS ................................................................................................. 54 4. DEVELOPMENT PLANS .................................................................................................................... 56 4.1 PLANNING APPROACH AND CRITERIA............................................................................................. 56 4.2 PRIORITISATION METHODOLOGY ................................................................................................... 61 4.3 OTAGONET’S DEMAND FORECAST ................................................................................................ 66 4.4 WHERE ARE OTAGONET NETWORK CONSTRAINTS......................................................................... 72 4.5 POLICIES FOR DISTRIBUTED GENERATION...................................................................................... 73 4.6 USE OF NON-ASSET SOLUTIONS.................................................................................................... 74 4.7 NETWORK DEVELOPMENT OPTIONS............................................................................................... 74 4.8 DEVELOPMENT PROGRAMME ........................................................................................................ 75 5. MANAGING THE ASSETS’ LIFECYCLE ........................................................................................... 90 5.1 LIFECYCLE OF THE ASSETS........................................................................................................... 90 5.2 OPERATING OTAGONET’S ASSETS................................................................................................ 91 5.3 MAINTAINING OTAGONET’S ASSETS.............................................................................................. 93 5.4 OTAGONET’S MAINTENANCE POLICIES .......................................................................................... 99 5.5 RENEWING OTAGONET’S ASSETS................................................................................................. 99 5.6 UP-SIZING OR EXTENDING OTAGONET’S ASSETS ......................................................................... 102 5.7 ENHANCING RELIABILITY ............................................................................................................ 103 5.8 CONVERTING OVERHEAD TO UNDERGROUND............................................................................... 104 5.9 RETIRING OF OTAGONET’S ASSETS ............................................................................................ 104 5.10 OTAGONET’S MAINTENANCE BUDGET ........................................................................................ 104 Asset Management Plan Page 2 of 151 CONTENTS 6. RISK MANAGEMENT ....................................................................................................................... 106 6.1 RISK METHODS.......................................................................................................................... 106 6.2 RISK DETAILS............................................................................................................................ 107 6.3 CONTINGENCY PLANS................................................................................................................ 111 6.4 INSURANCE ............................................................................................................................... 111 7. FUNDING THE BUSINESS ............................................................................................................... 113 7.1 BUSINESS MODEL ...................................................................................................................... 113 7.2 REVENUE SOURCE..................................................................................................................... 113 7.3 EXPENDITURE ........................................................................................................................... 114 7.4 CHANGES IN THE VALUE OF ASSETS............................................................................................ 114 7.5 DEPRECIATING THE ASSETS ....................................................................................................... 114 8. PROCESSES AND SYSTEMS.......................................................................................................... 116 8.1 ASSET KNOWLEDGE................................................................................................................... 116 8.2 IMPROVING THE QUALITY OF THE DATA........................................................................................ 117 8.3 USE OF THE DATA ...................................................................................................................... 117 8.4 DECISION MAKING...................................................................................................................... 118 8.5 KEY PROCESSES AND SYSTEMS.................................................................................................. 118 8.6 ASSET MANAGEMENT TOOLS...................................................................................................... 120 9. PERFORMANCE AND IMPROVEMENT .......................................................................................... 122 9.1 OUTCOMES AGAINST PLANS ......................................................................................................
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