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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 Chapter 7 2019-20 to 2023-24 2019-20 to 2023-24 Version Control Version Date Description 1.0 24/12/2019 Final for Publication Further Information Further information on Ergon Energy’s network management is available on our website: https://www.ergon.com.au/network/network-management 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 subjective judgements and 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 2019) 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. Distribution Annual Planning Report 2019-19 to 2023-24 ii Contents Executive Summary ........................................................................................................................ 1 1. Introduction ............................................................................................................................... 1 1.1 Foreword ...................................................................................................................................... 1 1.2 Reporting Requirements ............................................................................................................. 2 1.3 Network Overview ........................................................................................................................ 2 1.4 Peak Demand ............................................................................................................................... 4 1.5 Changes from 2018 DAPR .......................................................................................................... 5 1.6 DAPR Enquiries ........................................................................................................................... 6 2. Ergon Energy Overview ........................................................................................................... 8 2.1 Corporate Overview ..................................................................................................................... 8 2.1.1 Vision, Purpose and Values .............................................................................................. 8 2.2 Ergon Energy’s Electricity Distribution Network ...................................................................... 9 2.3 Network Operating Environment .............................................................................................. 11 2.3.1 Physical Environment ..................................................................................................... 11 2.3.2 Economic Activity ............................................................................................................ 12 2.3.3 Social and Demographic Change ................................................................................... 13 2.3.4 Technological Change .................................................................................................... 13 2.3.5 Shareholder and Government Expectations ................................................................... 14 2.3.6 Community Safety .......................................................................................................... 15 2.3.7 EQL Health, Safety and Environment Integrated Management System ......................... 16 2.3.8 Environmental Commitments .......................................................................................... 16 2.3.9 Legislative Compliance ................................................................................................... 17 2.3.10 Economic Regulatory Environment ................................................................................ 18 3. Community and Customer Engagement.............................................................................. 20 3.1 Overview ..................................................................................................................................... 20 3.2 Our Engagement Program ........................................................................................................ 22 3.2.1 Online Engagement ........................................................................................................ 22 3.2.2 Customer Council Framework ........................................................................................ 22 3.2.3 Community Leader Forums ............................................................................................ 22 3.2.4 Our customer Research Program ................................................................................... 23 3.3 What we have heard .................................................................................................................. 23 3.3.1 Safety First ...................................................................................................................... 24 3.3.2 More Affordable Electricity .............................................................................................. 24 3.3.3 A Secure Supply – Keeping the lights on ....................................................................... 25 3.3.4 A Sustainable Future ...................................................................................................... 26 3.4 Our Customer Commitments .................................................................................................... 28 4. Asset Management Overview................................................................................................ 31 4.1 Best Practice Asset Management ............................................................................................ 31 4.2 Asset Management Policy ........................................................................................................ 31 4.3 Strategic Asset Management Plan ........................................................................................... 32 4.4 Investment Process ................................................................................................................... 32 4.4.1 Corporate Governance ................................................................................................... 32 4.5 Further Information ................................................................................................................... 34 5. Network Forecasting .............................................................................................................. 36 5.1 Forecasting Assumptions ......................................................................................................... 36 5.1.1 Customer Behaviour ....................................................................................................... 36 5.1.2 Solar PV Systems ........................................................................................................... 37 Distribution Annual Planning Report 2019-19 to 2023-24 iii 5.1.3 Electric Vehicles ............................................................................................................. 39 5.1.4 Energy (battery) Storage ................................................................................................ 39 5.1.5 Temperature Sensitive Load ........................................................................................... 39 5.1.6 Economic Growth ........................................................................................................... 40 5.1.7 Population Growth .......................................................................................................... 42 5.2 Electricity Delivered Forecasts ................................................................................................ 43 5.2.1 Electricity Delivered versus Electricity Consumed .......................................................... 43 5.2.2 Electricity Delivered Forecast Methodology .................................................................... 45 5.2.3 Electricity Delivered History and Forecast ...................................................................... 46 5.3 Substation and Feeder Maximum Demand Forecasts ..........................................................
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