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Asset Management Plan 2021–2031

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Asset Management Plan 2021–2031 Asset Management Plan 2021–2031 MainPower New Zealand Limited Chief Executive’s Message MainPower’s Asset Management Plan outlines our commitment to providing a safe, secure, reliable and sustainable network that delivers electricity and energy services to homes and businesses in the North Canterbury region, from north of the Waimakariri River, through the Hurunui, to Kaikōura. This Asset Management Plan describes our network, our management practices and the assumptions that support our obligation as the responsible custodian of the MainPower electricity distribution network. These are exciting times, as New Zealand transitions to a low-carbon economy. The services that MainPower provides will become increasingly important, with the company acting as the backbone for decarbonisation and the sustainable future of our communities. A highlight of this reporting year is the delivery of our work programme, which includes a technology upgrade to the systems and process MainPower uses to manage its electricity distribution network. The recent completion of our Advanced Distribution Management System is one of a number of major system improvements that we have completed over the past few years and represents a key milestone in our journey to enabling carbon-free energy services in the North Canterbury community. This plan details how MainPower will invest prudently in our electricity distribution network and related services for the next 10 years and how these services will enhance the delivery of safe, reliable and sustainable low-carbon energy – powering our communities while delivering value to our shareholders. Andy Lester Chief Executive Asset Management Plan 2021–2031 Page 2 of 158 MainPower New Zealand Limited Contents Chief Executive’s Message ........................................................................................................................................... 2 List of Tables ................................................................................................................................................................ 9 List of Figures............................................................................................................................................................. 11 1 Summary .............................................................................................................................................................. 13 2 Asset Management Plan ...................................................................................................................................... 14 2.1 Our Electricity Distribution Network .................................................................................................................. 14 2.2 Asset Management ............................................................................................................................................. 15 2.2.1 Asset Management Objectives ............................................................................................................. 15 2.2.2 Asset Management System Purpose .................................................................................................... 15 2.2.3 Asset Management Policy .................................................................................................................... 16 2.2.4 Asset Management System .................................................................................................................. 17 2.2.5 Asset Lifecycle....................................................................................................................................... 17 2.3 Planning Period ................................................................................................................................................... 19 2.4 Date Approved by Directors ............................................................................................................................... 19 2.5 Stakeholder Interests .......................................................................................................................................... 19 2.5.1 MainPower Consumers and Customers ............................................................................................... 19 2.5.2 Stakeholder Engagement ..................................................................................................................... 19 2.5.3 Summarising the Interests of Our Stakeholders ................................................................................... 21 2.5.4 Managing Stakeholder Interests when they Conflict ........................................................................... 22 2.6 Accountabilities and Responsibilities ................................................................................................................. 23 2.6.1 Ownership ............................................................................................................................................ 23 2.6.2 Governance and Executive Leadership ................................................................................................. 23 2.6.3 Field Services ........................................................................................................................................ 23 2.7 Assumptions Made ............................................................................................................................................. 24 2.7.1 Significant Assumptions Made ............................................................................................................. 24 2.7.2 Sources of Information ......................................................................................................................... 24 2.7.3 Forecasting Certainty ............................................................................................................................ 25 2.7.4 Escalation Index .................................................................................................................................... 25 2.8 Sources of Uncertainty ....................................................................................................................................... 26 2.8.1 Demand Factors .................................................................................................................................... 26 2.8.2 Operational Factors .............................................................................................................................. 26 2.9 Systems and Information Management ............................................................................................................. 26 2.9.1 Asset Lifecycle Management – Maintenance and Replacement .......................................................... 26 2.9.2 Limitation of Asset Data and Improvements ........................................................................................ 27 2.9.3 Electricity Distribution Network Planning ............................................................................................ 27 2.9.4 Maintenance Processes ........................................................................................................................ 28 2.9.5 Measuring Electricity Distribution Network Performance ................................................................... 28 2.10 Communication and Participation ...................................................................................................................... 29 3 Service Levels and Performance Evaluation ......................................................................................................... 30 3.1 Consumer Engagement ...................................................................................................................................... 30 3.1.1 Consumer Engagement Workshops ..................................................................................................... 30 3.1.2 Online Consumer Surveys ..................................................................................................................... 30 3.2 What Consumers Have Told Us .......................................................................................................................... 31 3.2.1 Consumers – Reliability ........................................................................................................................ 31 3.2.2 Consumers – Resilience ........................................................................................................................ 32 3.2.3 Consumers – New Technology ............................................................................................................. 33 3.2.4 Consumers – Safety .............................................................................................................................. 33 3.3 Maintaining Performance Indicators .................................................................................................................. 34 3.3.1 Inputs .................................................................................................................................................... 34 3.3.2 Planning ................................................................................................................................................ 34 3.3.3 Works Programme ...............................................................................................................................
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