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Asset Management Plan 2016-26

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Asset Management Plan 2016-26 䄀匀匀䔀吀 䴀䄀一䄀䜀䔀䴀䔀一吀 倀䰀䄀一 ㈀ ㄀㘀ጠ㈀ ㈀㘀 䄀匀匀䔀吀 䴀䄀一䄀䜀䔀䴀䔀一吀 倀䰀䄀一 䄀䰀倀䤀一䔀 䔀一䔀刀䜀夀 䰀䤀䴀䤀吀䔀䐀 倀氀愀渀渀椀渀最 瀀攀爀椀漀搀㨀 ㄀ 䄀瀀爀椀氀 ㈀ ㄀㘀 琀漀 ㌀㄀ 䴀愀爀挀栀 ㈀ ㈀㘀 䐀椀猀挀氀漀猀甀爀攀 搀愀琀攀㨀 ㌀㄀ 䴀愀爀挀栀 ㈀ ㄀㘀 倀㨀 ㌀ 㘀㠀㜀 㐀㌀ 䘀㨀 ㌀ 㘀㠀㐀 㠀㈀㘀㄀ 眀眀眀⸀愀氀瀀椀渀攀攀渀攀爀最礀⸀挀漀⸀渀稀 䰀䤀䄀䈀䤀䰀䤀吀夀 䐀䤀匀䌀䰀䄀䤀䴀䔀刀 䄀渀礀 椀渀昀漀爀洀愀琀椀漀渀 挀漀渀琀愀椀渀攀搀 椀渀 琀栀椀猀 搀漀挀甀洀攀渀琀 椀猀 戀愀猀攀搀 漀渀 椀渀昀漀爀洀愀琀椀漀渀 愀瘀愀椀氀愀戀氀攀 愀琀 琀栀攀 琀椀洀攀 漀昀 瀀爀攀瀀愀爀愀琀椀漀渀⸀ 一甀洀攀爀漀甀猀 愀猀猀甀洀瀀琀椀漀渀猀 栀愀瘀攀 戀攀攀渀 洀愀搀攀 琀漀 愀氀氀漀眀 昀甀琀甀爀攀 爀攀猀漀甀爀挀攀 爀攀焀甀椀爀攀洀攀渀琀猀 琀漀 戀攀 愀猀猀攀猀猀攀搀⸀ 吀栀攀猀攀 愀猀猀甀洀瀀琀椀漀渀猀 洀愀礀 瀀爀漀瘀攀 琀漀 戀攀 椀渀挀漀爀爀攀挀琀 漀爀 椀渀愀挀挀甀爀愀琀攀 愀渀搀Ⰰ 挀漀渀猀攀焀甀攀渀琀氀礀Ⰰ 洀愀渀礀 漀昀 琀栀攀 昀甀琀甀爀攀 愀挀琀椀漀渀猀 椀搀攀渀琀椀ǻ攀搀 椀渀 琀栀椀猀 搀漀挀甀洀攀渀琀 洀愀礀 渀漀琀 漀挀挀甀爀⸀ 唀猀攀爀猀 漀昀 琀栀攀 椀渀昀漀爀洀愀琀椀漀渀 挀漀渀琀愀椀渀攀搀 椀渀 琀栀椀猀 搀漀挀甀洀攀渀琀 搀漀 猀漀 愀琀 琀栀攀椀爀 漀眀渀 爀椀猀欀⸀ 䄀氀瀀椀渀攀 䔀渀攀爀最礀 䰀椀洀椀琀攀搀 眀椀氀氀 渀漀琀 戀攀 氀椀愀戀氀攀 琀漀 挀漀洀瀀攀渀猀愀琀攀 愀渀礀 瀀攀爀猀漀渀 昀漀爀 氀漀猀猀Ⰰ 椀渀樀甀爀礀Ⰰ 漀爀 搀愀洀愀最攀 爀攀猀甀氀琀椀渀最 昀爀漀洀 琀栀攀 甀猀攀 漀昀 琀栀攀 挀漀渀琀攀渀琀猀 漀昀 琀栀椀猀 搀漀挀甀洀攀渀琀⸀ 䤀昀 愀渀礀 瀀攀爀猀漀渀 眀椀猀栀攀猀 琀漀 琀愀欀攀 愀渀礀 愀挀琀椀漀渀 漀渀 琀栀攀 戀愀猀椀猀 漀昀 琀栀攀 挀漀渀琀攀渀琀 漀昀 琀栀椀猀 搀漀挀甀洀攀渀琀Ⰰ 琀栀攀礀 猀栀漀甀氀搀 挀漀渀琀愀挀琀 䄀氀瀀椀渀攀 䔀渀攀爀最礀 䰀椀洀椀琀攀搀 昀漀爀 愀搀瘀椀挀攀 愀渀搀 挀漀渀ǻ爀洀愀琀椀漀渀 漀昀 愀氀氀 爀攀氀攀瘀愀渀琀 搀攀琀愀椀氀猀 戀攀昀漀爀攀 愀挀琀椀渀最⸀ ALPINE ENERGY LIMITED DIRECTORS’ STATEMENT The purpose of our 2016 to 2026 Asset Management Plan (AMP) is to provide insight and explanation of how we intend to provide electricity distribution services. We are committed to managing our distribution assets in a safe, reliable, and cost-effective manner that addresses required service levels and maintains a robust energy delivery system for our stakeholders. Our asset management disclosures consist of two documents. The first document is this AMP and the second is our Asset Management Plan—Major Assets (AMP—Major Assets). The primary purpose of the AMP—Major Assets is to provide our staff and contractors with key information on major assets and network development in the most accessible form. Together, the AMP and AMP—Major Assets have been published to meet our regulatory requirements for asset management under the Electricity Distribution Information Disclosure 2012. Our distribution network is in a fair to good condition. Assets built in the 1950s and 1960s are near the end of expected service life. However, the majority of older assets will be able to safely continue in service for the next 8 to 10 years. Assets that have served expected life or have become uneconomic will be retired and replaced with alternative products. We continue our investment phase by identifying and committing funds for network developments. Developments are identified that best serve our consumers for the next 50 years i.e. the average life of an electricity distribution asset. Our investment in the network is funded through our tariffs that are set in accordance with our pricing methodology. It is our intention to continue to keep tariffs within the price path set by the Commerce Commission and have a pricing methodology that is consistent with the Electricity Authority’s pricing principles. Capacity increases at grid exit points will be addressed through new investment agreements with Transpower, with a resulting price pass through to consumers as is now the case. Sole beneficiaries identified for additional capacity will have back-to-back agreements to minimise the risk of stranded assets. We encourage consumers to comment on both documents and the approach taken to maintain a cost-effective, safe, and reliable supply to South Canterbury. The Directors Alpine Energy Limited ASSET MANAGEMENT PLAN 2016–2026 | DIRECTORS’ STATEMENT 1 ALPINE ENERGY LIMITED DIRECTOR CERTIFICATION Certification for Asset Management Plan 2016–2026. We, Stephen Richard Thompson and Alister John France, being directors of Alpine Energy Limited certify that, having made all reasonable enquiries, to the best of our knowledge— a) the Asset Management Plan 2016–2026 of Alpine Energy Limited prepared for the purposes of clause 2.6.1 and sub clauses 2.6.3(4) and 2.6.5(3) of the Electricity Distribution Information Disclosure Determination 2012 (consolidated in 2015) in all material respects complies with that determination b) the prospective financial or non-financial information included in the attached information has been measured on a basis consistent with regulatory requirements or recognised industry standards. Stephen Richard Thompson Alister John France 30 March 2016 30 March 2016 ASSET MANAGEMENT PLAN 2016–2026 | DIRECTOR CERTIFICATION 2 ALPINE ENERGY LIMITED CONTENTS 1. EXECUTIVE SUMMARY ............................................................................................ 10 1.1 The purpose of the plan .......................................................................................... 10 1.2 Key assumptions ...................................................................................................... 10 1.2.1 General economic assumptions ...................................................................... 10 1.3 Period covered by the AMP ..................................................................................... 12 1.4 Asset management systems .................................................................................... 12 1.5 Network and asset description ................................................................................ 13 1.6 Service levels ........................................................................................................... 13 1.7 Network development plans ................................................................................... 13 1.8 Life cycle asset management .................................................................................. 14 1.9 Risk management .................................................................................................... 14 1.9.1 Health and safety ............................................................................................. 14 1.9.2 Emergency response and contingency planning ............................................. 14 1.9.3 Environment .................................................................................................... 15 1.10 Evaluation of performance ...................................................................................... 15 1.10.1 Expenditure forecast ....................................................................................... 15 2. BUILDING BLOCKS OF THE ASSET MANAGEMENT PLAN............................................ 19 2.1 Introduction ............................................................................................................. 19 2.2 Purpose of the AMP ................................................................................................ 19 2.3 Mission statement ................................................................................................... 19 2.4 Development of strategic goals and objectives ...................................................... 20 2.4.1 Stakeholder engagement ................................................................................ 20 2.5 Key planning documents ......................................................................................... 23 2.5.2 Asset management strategy ............................................................................ 24 2.5.3 Annual works plan ........................................................................................... 24 2.5.4 Safety Management System ............................................................................ 24 2.6 Planning assumptions .............................................................................................. 24 2.7 Asset management systems and processes ............................................................ 25 2.7.1 Key systems and processes .................................................................................... 25 2.8 Accountabilities for asset management .................................................................. 27 2.8.1 Accountability at ownership level .......................................................................... 27 2.8.2 Accountability at governance level ........................................................................ 28 ASSET MANAGEMENT PLAN 2016–2026 | CONTENTS 3 ALPINE ENERGY LIMITED 2.8.3 Accountability at executive level ............................................................................ 28 2.8.4 Accountability at management level ...................................................................... 29 2.8.5 Accountability of our contractors ........................................................................... 30 2.8.6 Key reporting lines .................................................................................................. 31 3. NETWORK ASSETS .................................................................................................. 33 3.1 Introduction ............................................................................................................. 33 3.2 An overview of our area of operations ................................................................... 33 3.2.1 Load growth on our network ........................................................................... 35 3.2.2 Significant economic and environmental influences ...................................... 35 3.2.3 Network energy and demand characteristics ................................................. 38 3.3 Network configuration ............................................................................................ 38 3.3.1 Historical constraints on our network ............................................................. 39 3.3.2 Bulk supply configuration ...............................................................................
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