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Asset Management Plan 2015-2025 Network Tasman Limited

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Asset Management Plan 2015-2025 Network Tasman Limited ASSET MANAGEMENT PLAN 2015-2025 NETWORK TASMAN LIMITED CONTENTS 1 EXECUTIVE SUMMARY .................................................................................................................. 1 1.1 OVERVIEW AND PLAN PURPOSE .......................................................................................................... 1 1.2 CORPORATE OBJECTIVES AND ASSET MANAGEMENT DRIVERS ................................................... 1 1.3 STATUS OF PROGRAMMES AND PROJECTS ...................................................................................... 2 1.4 ASSET MANAGEMENT SYSTEMS AND INFORMATION ....................................................................... 2 1.5 NETWORK CONFIGURATION AND ASSET DESCRIPTION .................................................................. 3 1.6 SERVICE LEVEL OBJECTIVES................................................................................................................ 4 1.7 ASSET MAINTENANCE AND RENEWALS PLAN ................................................................................... 7 1.8 NETWORK DEVELOPMENT PLANS ....................................................................................................... 9 1.9 RISK MANAGEMENT .............................................................................................................................. 12 1.10 PERFORMANCE GAP ANALYSIS AND IMPROVEMENT PLANS ....................................................... 12 2 BACKGROUND AND OBJECTIVES ............................................................................................. 14 2.1 ASSET MANAGEMENT PLAN PURPOSE ............................................................................................. 14 2.2 CORPORATE OBJECTIVES ................................................................................................................... 14 2.3 ASSET MANAGEMENT PLANNING DRIVERS ...................................................................................... 15 2.4 PLANNING PERIOD AND REVIEW PERIODS ....................................................................................... 16 2.5 STAKEHOLDERS .................................................................................................................................... 16 2.6 ACCOUNTABILITIES AND RESPONSIBILITIES ................................................................................... 18 2.7 AMP INTERACTION WITH CORPORATE GOALS AND BUSINESS PLANNING ................................ 21 2.8 ASSET MANAGEMENT INFORMATION SYSTEMS .............................................................................. 22 2.9 INFORMATION SYSTEMS GAP ANALYSIS: ......................................................................................... 23 2.10 ASSET MANAGEMENT PLAN FORMULATION AND STRATEGIC REVIEW PROCESS ................... 24 3 NETWORK CONFIGURATION AND ASSET DESCRIPTION ........................................................ 27 3.1 NETWORK CONFIGURATION ................................................................................................................ 27 3.2 ASSET JUSTIFICATION AND NETWORK OPTIMISATION .................................................................. 29 3.3 ASSET DESCRIPTION ............................................................................................................................ 31 3.4 NETWORK VALUATION ......................................................................................................................... 41 4 NETWORK PERFORMANCE ........................................................................................................ 42 4.1 ASSET PERFORMANCE ......................................................................................................................... 42 4.2 ASSET EFFECTIVENESS ....................................................................................................................... 43 4.3 ASSET EFFICIENCY ............................................................................................................................... 45 4.4 PERFORMANCE OBJECTIVES .............................................................................................................. 46 4.5 JUSTIFICATION FOR SERVICE LEVEL TARGETS .............................................................................. 48 5 NETWORK DEVELOPMENT PLAN ............................................................................................... 52 5.1 INTRODUCTION ...................................................................................................................................... 52 5.2 NETWORK DEVELOPMENT POLICIES ................................................................................................. 52 5.3 NON ASSET SOLUTION POLICY ........................................................................................................... 53 5.4 DISTRIBUTED GENERATION POLICY .................................................................................................. 54 5.5 PLANNING CRITERIA ............................................................................................................................. 55 5.6 NETWORK SECURITY POLICY.............................................................................................................. 56 5.7 SECURITY DESIGN STANDARD............................................................................................................ 56 5.8 DEMAND FORECAST ............................................................................................................................. 58 5.9 DEVELOPMENT PLAN - DETAIL ........................................................................................................... 63 5.10 NEW CONSUMER GENERATED NETWORK EXPENDITURE ............................................................ 75 5.11 MAJOR NETWORK DEVELOPMENT PROJECTS 2015/16 .................................................................. 76 5.12 MAJOR NETWORK DEVELOPMENT PROJECTS 2015/16-2019/20 ................................................... 79 6 ASSET RENEWAL AND MAINTENANCE PLAN .......................................................................... 81 6.1 PLANNING CRITERIA AND ASSUMPTIONS ......................................................................................... 81 6.2 ASSET RENEWAL AND REFURBISHMENT POLICY ........................................................................... 82 6.3 ASSET CLASSES .................................................................................................................................... 82 6.4 ASSET MAINTENANCE AND RENEWAL CATEGORIES ..................................................................... 83 6.5 ASSET INSPECTION AND CONDITION MONITORING ........................................................................ 84 6.6 LIFECYCLE ASSET MAINTENANCE AND RENEWAL BY ASSET CLASS......................................... 85 6.7 VEGETATION........................................................................................................................................... 99 7 NON NETWORK ASSETS ........................................................................................................... 102 7.1 NON NETWORK ASSET DESCRIPTION ............................................................................................. 102 7.2 NON NETWORK ASSET DEVELOPMENT, MAINTENANCE AND RENEWAL POLICIES ................ 102 7.3 NON NETWORK ASSET CAPITAL, MAINTENANCE AND RENEWAL PROJECTS 2015-2020 ....... 103 8 RISK MANAGEMENT .................................................................................................................. 104 8.1 OVERVIEW ............................................................................................................................................. 104 8.2 RISK MANAGEMENT STRATEGY ....................................................................................................... 104 8.3 RISK MANAGEMENT BACKGROUND ................................................................................................ 105 8.4 NETWORK RISKS CONTEXT ............................................................................................................... 106 8.5 RISK BENCHMARKING ........................................................................................................................ 107 8.6 NETWORK RISK ANALYSIS ................................................................................................................ 108 8.7 EARTHQUAKE PERFORMANCE AND RISK ....................................................................................... 117 8.8 RISK MANAGEMENT CONCLUSIONS ................................................................................................ 120 9 PERFORMANCE MEASUREMENT, EVALUATION AND IMPROVEMENT ................................ 122 9.1 FINANCIAL AND PHYSICAL PERFORMANCE ................................................................................... 122 9.2 SERVICE LEVEL AND ASSET PERFORMANCE ................................................................................ 126 9.3 GAP ANALYSIS AND IMPROVEMENT PLANS ................................................................................... 127 10 PLANNING ASSUMPTIONS ........................................................................................................ 129 10.1 SIGNIFICANT ASSUMPTIONS ............................................................................................................ 129 10.2 FACTORS
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