Asset Management Plan 2009 - 2019 Asset Management Plan 2009 - 2019 Asset Management Plan 2010 - 2019 Westpower Limited 146 Tainui Street PO Box 375, GreymouthAnnual Report 2008 Telephone 03 768 9300 Facsimile 03 768 2766 West Coast’s Locally Owned Electricity Distributor Westpower Limited 146 Tainui Street PO Box 375, Greymouth Telephone 03 768 9300 Facsimile 03 768 2766 West Coast’s Locally Owned Electricity Distributor Asset Management Plan A 10 Year Management Plan for Westpower’s Electricity Network From 1 April 2009 to 31 March 2019 Westpower Limited PO Box 375 Greymouth Web site www.westpower.co.nz Phone + 64 3 768 9300 Fax + 64 3 768 2766 1st published March 1993 © Copyright: Westpower Ltd. 2009 This document is entitled to the full protection given by the Copyright Act 1994 to the holders of the copyright. Reproduction of any substantial passage from this document is a breach of the copyright. This copyright extends to all forms of photocopying and any storing of material in any kind of information retrieval system. All applications for reproduction in any form should be made to Westpower Ltd. Plan compiled by: Asset Management Division This issue approved by Westpower Board of Directors March 2009 Liability Disclaimer This Asset Management Plan (AMP) has been prepared and publicly disclosed in accordance with the requirements of the Electricity Information Disclosure Requirements 2004 and the ammendments 2006. Some of the information and statements contained in the AMP are comprised of, or are based on, assumptions, estimates, forecasts, predictions and projections made by Westpower Limited (Westpower). In addition, some of the information and statements in the AMP are based on actions that Westpower currently intends it will take in the future. Circumstances will change, assumptions and estimates may prove to be wrong, events may not occur as forecasted, predicted or projected, and Westpower may at a later date decide to take different actions to those it currently intends to take. Except for any statutory liability which cannot be excluded, Westpower will not be liable, whether in contract, tort (including negligence), equity or otherwise, to compensate or indemnify any person for any loss, injury or damage arising directly or indirectly from any person using, or relying on any content of, the AMP. When considering any content of the AMP persons should take appropriate expert advice in relation to their own circumstances and must rely solely on their own judgement and expert advice obtained. WESTPOWER ASSET MANAGEMENT PLAN 2010 - 2019 1 Contents 1.0 EXECUTIVE SUMMARY 4 3.11 Ripple Injection Plants 90 3.12 Optimised Assets 91 1.1 Purpose of the Plan 4 3.13 Generation 91 1.2 Improvements to the Plan 5 3.14 Load and Customer Characteristics 1.3 Westpower’s Network 5 by GXP 92 1.4 Westpower’s Asset Management 3.15 Westpower Mobile Substation 96 Process 5 3.16 Substation Buildings 97 1.5 Assets covered 9 1.6 Asset Management Policy 10 4.0 LEVELS OF SERVICE 99 1.7 Levels of Service 11 1.8 Reliability Trends 11 4.1 Introduction 99 1.9 Security of Supply 12 4.2 Customer Orientated 1.10 Losses 13 Performance Targets 99 1.11 Network Development 13 4.3 Other Targets 106 1.12 Life Cycle Management Plan 13 4.4 Justification for Targets 107 1.13 Financial Summary 14 4.5 Stakeholder Needs 107 1.14 Asset Management Practices 15 1.15 Risk Management 17 5.0 NETWORK DEVELOPMENT 108 1.16 Plan Outcomes 18 5.1 Introduction 108 2.0 INTRODUCTION 20 5.2 Load Forecasting 108 5.3 Strategic Plans by Area 118 2.1 Background 20 5.4 Overall Work Plan 120 2.2 Objective of the Plan 35 5.5 Sub-transmission Assets 124 2.3 Asset Ownership Justification 36 5.6 Distribution Assets 132 2.4 Assumptions of the Asset 5.7 Reticulation Assets 144 Management Plan 37 5.8 Services 149 2.5 Asset Management Drivers 37 5.9 Zone Substations 150 2.6 Asset Management Linkage 5.10 Distribution Substations 162 with Westpower Performance 38 5.11 MV Switchgear 165 2.7 Plan Structure and Approach 38 5.12 SCADA, Comms and Protection 171 2.8 Core and Advanced Asset 5.13 Distribution Transformers 179 Management 39 5.14 Other 182 2.9 Asset Management Systems and Processes 40 6.0 ASSET LIFECYCLE MANAGEMENT 184 3.0 ASSETS COVERED 50 6.1 Introduction 184 3.1 Asset Condition 51 6.2 Design and Planning 184 3.2 Transpower Grid Exit Points (GXP) 53 6.3 Acquisition and Installation 192 3.3 Sub-transmission Assets 54 6.4 Maintenance and Operation 194 3.4 Distribution Assets 61 6.5 Disposal 198 3.5 Reticulation Assets 67 3.6 Services 70 7.0 FINANCIAL SUMMARY 199 3.7 Zone Substations 71 3.8 Distribution Substations 79 7.1 Financial Forecasts 199 3.9 Medium Voltage Switchgear 85 7.2 Assumptions and Sensitivity Analysis 202 3.10 SCADA, Communications 7.3 Actual Deviations from Previous Asset and Protection 87 Management Plans 203 2 WESTPOWER ASSET MANAGEMENT PLAN 2010 - 2019 8.0 ASSET MANAGEMENT 9.0 RISK MANAGEMENT PLAN 255 PRACTICES 207 9.1 Risk Management Planning 8.1 Introduction 207 Framework 255 8.2 Asset Management Policy 207 9.2 Risk Planning Methodology 255 8.3 Rationalisation of Responsibilities 9.3 Failure Mode and Effects Critically and Procedures 209 Analysis 260 8.4 Network Services Operational Support 209 9.4 Safety 261 8.5 Information Systems Development 209 9.5 Environmental 261 8.6 Specifications, Procedures and 9.6 Key Risks Identified 262 Manuals 209 9.7 Mitigation Measures 263 8.7 Deregulation/Compliance with MED & 9.8 West Coast Engineering Lifelines Plan 264 Commerce Commission Requirements 210 9.9 Transmission Lines 265 8.8 Electricity Industry Reform Act 210 9.10 Communications 266 8.9 Asset Renewal Policy 210 9.11 Disaster Recovery 266 8.10 CAPEX Analysis 211 8.11 Distributed Generation 211 APPENDIX A 268 8.12 Asset Management System APPENDIX B 271 Improvement Process 213 APPENDIX C 274 8.13 Detailed Findings 215 APPENDIX D 278 8.14 Asset and Works Management APPENDIX E 279 System Development 250 WESTPOWER ASSET MANAGEMENT PLAN 2010 - 2019 3 1.0 EXECUTIVE SUMMARY 1.1 Purpose of the Plan The Asset Management Plan (AMP) is a foundation document, which drives the planning for all work undertaken on Westpower’s assets. Each year, a comprehensive update of the plan is completed including network changes that have taken place. Furthermore, the results of a formal, external peer review process are taken into account to ensure that this plan meets current disclosure requirements in terms of the Electricity Information Disclosure Requirements 2008 and amended requirements 2006 and is continually improved in both content and layout. 1.1.1 Period Covered This particular plan was completed in March 2009 and covers a planning period from 1 April 2009 through to 31 March 2019. The main focus is placed on the next three years, with updates being completed annually. This Executive Summary is prepared for people who may not be involved within the business of electricity distribution networks and associated services, but who understand and have an interest in efficient management. This plan was approved by Westpower’s Board of Directors on the 13 March 2009. 1.1.2 Objective of the Plan The defined objective of the Asset Management Plan is: “To provide a systematic approach to the planning of programmes which are intended to ensure that the condition and performance of infrastructure assets are being efficiently maintained or improved to satisfy stakeholders requirements.” 1.1.3 Company Mission and Statement of Corporate Intent Westpower’s Mission is; “A West Coast Company operating successful businesses which provide first class electrical and technology solutions, wherever our customers take us” Westpower’s Vision is; “Recognised for excellence in all links of the electricity value chain” Statement of Corporate Intent (SCI) Salient statements from the Statement of Corporate Intent (SCI) that relate to management of Westpower’s assets include: • To continue to provide West Coast communities with a safe, secure, sustainable and cost effective electricity distribution network; • To ensure obligations under the Energy Companies Act 1992, the Electricity Act 1992, the Electricity Industry reform Act 1998 and their various amendments and regulations are met; • To continue to lobby on behalf of the West Coast consumers to ensure that a reliable transmission network is maintained into the West Coast. 4 WESTPOWER ASSET MANAGEMENT PLAN 2010 - 2019 1.2 Improvements to the Plan Westpower’s AMP for the ten year period 1 April 2009 through 31 March 2019 has been thoroughly reviewed and compared against other Electricity Lines Business (ELB) plans and industry comments and reports. 1.3 Westpower’s Network This AMP includes Westpower’s assets that transport electricity (owned by the electricity retailers) from Transpower’s seven Grid Exit Points (GXP’s) to over 12,000 electricity consumers on the West Coast of New Zealand’s South Island. The Westpower network consists of 110 kV, 66 kV and 33 kV subtransmission networks supplying 110/33/11 kV substations at Reefton and Logburn Road, 66/33/11 kV substations at Dobson and Hokitika, 66/11 kV substations at Greymouth and Kumara and 33/11 kV substations at Globe, Pike River, Ngahere, Arnold, Rapahoe, Ross, Waitaha, Harihari, Whataroa, Wahapa, Franz Josef and Fox Glacier. Transpower’s seven grid exit points (GXP’s) supplying Westpower’s networks are Reefton and Atarau at 110 kV, Greymouth, Kumara and Hokitika at 66 kV, Dobson at 33 kV and Otira at 11 kV.