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Adapt Depend Sustain adapt sustain depend able Annual Report 2008/09 contents Highlights 2 Profile 4 Financial Overview 8 adaptable Chairman’s Review 10 Chief Executive’s Review 12 Powerlink continually interacts with government, the energy Powerlink and the National Electricity Market 14 sector, customers and the community to develop its network Network Strategy and Operations 20 to meet Queensland’s and Australia’s changing needs. Network Development 28 Environment 38 Community 46 People 52 Corporate Governance 58 Board of Directors 64 Executive Leadership Team 66 sustainable Directors’ Report 70 Powerlink works closely with the community and specialist Financials 75 advisors to manage its operations in ways that are Statistical Summary 128 environmentally and economically sustainable. Index 132 Glossary and Terms of Measurement 134 dependable Front cover: John Burgess, Field Test Engineering Officer Powerlink’s best-practice systems and dedicated workforce Inside front cover: Adam Hammersley, Assistant Construction Manager, and Lloyd Warr, Lead Line Construction Manager, supervise helicopter stringing of the South Pine to ensure its transmission network is amongst the most reliable Sandgate transmission line in Brisbane and cost effective in the world. Powerlink’s 2008/09 highlights Powerlink Queensland is committed to delivering transmission network and mission related services at world-class levels of safety, reliability and cost effectiveness. To be the leading Transmission Network Service Provider vision in Australia, and one of the best in the world. Reasonable returns for our owners. values Value for money services to our customers. deliverable The wellbeing of our employees. Being a good corporate citizen and community recognition of this. Fair, commercial and courteous dealings with our suppliers. In the 2008 calendar year, Powerlink’s Powerlink’s robust planning Powerlink Queensland network reliably met or exceeded the processes took account of the Annual Report 2008/09 targets set by the Australian Energy changes in the economic climate Regulator (see page 18). and the implications of the This Annual Report is designed Commonwealth and State Powerlink’s high voltage network to give an understanding of our Governments’ climate change policies reliably handled a record peak operations and finances in 2008/09 (see page 18). and provide an overview of our summer electricity demand of plans for the immediate future. 8,677 megawatts reached in We completed construction works to We present this Report to our February 2009 (see page 20). connect three power stations to the grid, including two low emissions, two shareholding Ministers, the We undertook $675 million gas-fired generators in South West Queensland Treasurer and Minister in construction works across for Employment and Economic Queensland (see page 19). Queensland in 2008/09, ensuring Development, and the Queensland that we are on target to invest about We launched our new $1.3 million Minister for Natural Resources, $2.9 billion over the five-year period Mines and Energy and Minister for Powerlink GreenWorks program to Trade. The Report is also designed to 2013/14 to develop the Queensland provide funding for environmental to give the Queensland community transmission grid (see page 28). projects in the vicinity of the proposed 500 kilovolt transmission network an insight into our operations and to $73.3 million was invested in (see page 48). update our partners and stakeholders the maintenance of the network in the electricity industry. (see page 24). Through our involvement with This Report has been prepared in Grid Australia, Powerlink took a All of this work was delivered accordance with the provisions of proactive role in shaping the future at very high levels of safety and the Government Owned Corporations of the National Electricity Market by environmental management. Act 1993 and the Financial preparing submissions on a range of Administration Act 1977 and is Planning and approvals for the regulatory and market development presented to the Legislative new 500 kilovolt transmission network matters (see page 16). Assembly of Queensland. to reinforce electricity supply for We have implemented a number This Annual Report is available on South East Queensland, the largest of initiatives to reduce our in-house line at www.powerlink.com.au and electricity load centre in the State, greenhouse emissions by actively further copies can be obtained from: were progressed on schedule targeting waste, energy, water, (see page 30). Manager Corporate Communications transport, and emissions inventories. Powerlink Queensland (see more on page 40). PO Box 1193 Virginia Queensland Australia 4014. Phone +61 7 3860 2111 Cairns Central Business District 2 powerlink annual report 2008/09 powerlink annual report 2008/09 3 Powerlink profile able Powerlink owns, operates and develops Queensland’s world-class high voltage electricity transmission network, which transports electricity in bulk from power generators to the regional distributors and directly to some large industrial customers. Powerlink’s $5.2 billion network extends 1,700 kilometres from north of Cairns to the New South Wales border where it links to the national electricity grid, which underpins the National Electricity Market (NEM). We harness a wide range of management, technical and support skills to operate a network that achieves world’s best practice in terms of both reliability and cost efficiency for our customers. Who we are What we do environmental impact assessments Powerlink is a Queensland Government- Our primary business activities include: and the related community Owned Corporation established in consultation, maintaining the operating the transmission network 1995 under the Government Owned transmission network, including on a 24/7 basis, by monitoring Corporations (GOC) Act 1993. monitoring the condition of network electricity flows across the network components and replacing them We are a regulated monopoly to ensure it operates in an efficient, at the optimum time to ensure business responsible for ensuring secure and stable manner, and by very high levels of reliability the transmission network reliably responding to any unplanned meets Queensland’s electricity needs, outages quickly and safely non-regulated business activities, anticipates future growth and also including connecting new power developing and extending the meets its responsibilities in the NEM. generators and large industrial transmission network in a timely customers to the grid and providing The major proportion of our revenue manner, taking into account forecast transformer oil testing services to is determined by an independent population and economic growth, the industry national economic regulator, the changing regional needs and other Australian Energy Regulator (AER). factors, including energy efficiency contributing to the development Some revenue comes from the initiatives, which affect demand. of the NEM to further the National provision of non-regulated transmission This long-term planning also involves Electricity Objective – to promote an network-related services in accordance the strategic acquisition of easements efficient, reliable and safe electricity with the National Electricity Rules to provide long-term certainty for supply for the long-term interests of (the Rules). land use planning, and the associated Australian consumers. Powerlink goes the distance environmental impact assessments Read more about our corporate Powerlink does not buy or sell electricity and community consultation in every way to ensure our governance and legislative framework – we operate our transmission system on page 58. to transfer electricity in bulk from power stations to the distribution networks. transmission network reliably meets the fastest-growing electricity demand in the Michael Craperi, Line Inspector, during easement scoping works for the proposed Yabulu South to Ingham replacement transmission line National Electricity Market. 4 powerlink annual report 2008/09 powerlink annual report 2008/09 5 Powerlink profile working together to power Queensland A number of different organisations and corporations are involved in electricity supply in Queensland. This diagram shows where Powerlink fits into the broader structure. Powerlink by numbers AUSTRALIAN ENERGY AUSTRALIAN ENERGY AUSTRALIAN ENERGY MARKET COMMISSION MARKET OPERATOR REGULATOR (AER) (AEMC) (AEMO) Administers the National A statutory commission Operates the National Electricity Rules and responsible for developing Electricity Market and manages makes regulated revenue the rules for the National power system security determinations for More than 13,000 circuit kilometres of high Electricity Market and for monopoly networks market development voltage transmission network Transmission lines operating at 110 kilovolts, 132 kilovolts, POWER GENERATORS including: 275 kilovolts and 330 kilovolts coal-fired gas-fired renewable (hydro, wind, biomass) 1 0 9 substations Providing the backbone of the electricity supply chain for more HIGH VOLTAGE LARGE INDUSTRIAL TRANSMISSION GRID CUSTOMERS including: than 1.8 million electricity consumers in Queensland Bulk transport of electricity aluminium smelters POWERLINK coal mines rail Connecting 22 customers to the grid, including the distribution networks and large industrial customers DISTRIBUTORS Queensland Electricity Deliver electricity to consumer premises Transmission Network Transporting about 50,000 gigawatt hours of energy per year ENERGEX
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