Asset Management Plan A 10-year management plan for Orion’s electricity network from 1 April 2015 – 31 March 2025 Front cover: A team from Independent Line Services removing conductors prior to dismantling transmission towers in the Westmorland Heights subdivision. The four towers were removed and replaced with slimline steel mono poles and 66kV underground cables. This was at the request of the subdivision’s developer. 3 Welcome to Orion’s 10-year network asset management plan (AMP). Our AMP details how we plan to extend, maintain and reinforce our electricity distribution network over the next decade. Our AMP is central to our day-to-day operations. It’s a practical resource that captures the valuable insights and experience of our highly-skilled employees. Our risk management strategies have proven themselves during and following the recent earthquakes and we will continue to invest prudently for the future of our community. Key issues discussed in this AMP include: our approach to restore the resilience of our eastern Christchurch network our measures to mitigate and prevent major electricity outages our approach to ensuring public, contractor and employee safety our investment in new technology to better understand, control and monitor the condition and capability of our network. We hope you find this AMP informative and we welcome your comments on it or any other aspect of our performance. Comments can be emailed to [email protected]. Rob Jamieson CHIEF EXECUTIVE OFFICER Orion New Zealand Limited 10 year Asset Management Plan – From 1 April 2015 4 Liability disclaimer This Asset Management Plan (AMP) has been prepared and publicly disclosed in accordance with the Electricity Distribution Information Disclosure Determination 2012. Some of the information and statements contained in thisAMP are comprised of, or are based on, assumptions, estimates, forecasts, predictions and projections made by Orion New Zealand Limited (Orion). In addition, some of the information and statements are based on actions that Orion currently intends to 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 Orion 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, Orion 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, this AMP. When considering the content of this 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. Orion New Zealand Limited 10 year Asset Management Plan – From 1 April 2015 5 Contents 1 Summary 9 2 Background and objectives 35 2.1 Purpose of our AMP 37 2.2 Business plans and goals 37 2.3 Stakeholders 40 2.4 Management responsibilities 42 2.5 Assumptions 45 2.6 Asset management drivers 48 2.7 Asset management process 50 2.8 Systems and information 54 2.9 Development of systems and processes 60 3 Service levels 61 3.1 Introduction to service levels 63 3.2 Consumer consultation 64 3.3 Service level measures 66 3.4 Service level forecasts 71 4 Lifecycle asset management 75 4.1 Network overview 77 4.2 Network justification 82 4.3 Asset management approach 84 4.4 Substations 86 4.5 - 4.8 Overhead lines 66,33,11,0.4kV 91 4.9 - 4.12 Underground cables 66,33,11,0.4kV 105 4.13 Communication cables 120 4.14 Circuit breakers 122 4.15 Switchgear - high and low voltage 129 4.16 Power transformers and regulators 135 4.17 Distribution transformers 139 4.18 Generators 142 4.19 Protection systems 144 4.20 Communications 147 4.21 Load management systems 150 4.22 Distribution management systems 154 4.23 Information systems - Corporate 157 4.24 Information systems - Asset management 160 4.25 Metering 163 4.26 Network property 165 4.27 Corporate property 169 4.28 Vehicles 171 Orion New Zealand Limited 10 year Asset Management Plan – From 1 April 2015 6 Contents (continued) 5 Network development 173 5.1 Introduction 175 5.2 Network architecture 176 5.3 Planning criteria 178 5.4 Energy, demand and growth 186 5.5 Network gap analysis 205 5.6 Network development proposals 208 6 Risk management 243 6.1 Introduction 245 6.2 Governance and operational business risks 248 6.3 Safety 251 6.4 Environmental management 252 6.5 Network risk analysis 253 6.6 Interdependence 254 6.7 Natural disaster 255 6.8 Asset failure 258 6.9 Mitigation measures 259 7 Financial 265 7.1 Financial forecasts 267 7.2 Changes from our previous forecasts 275 8 Evaluation of performance 277 8.1 Introduction 279 8.2 Review of consumer service 279 8.3 Efficiency 283 8.4 Works 287 8.5 Safety 289 8.6 Environment 289 8.7 Legislation 289 8.8 Improvement initiatives 290 8.9 Gap analysis 295 Appendices 297 A Disclosure schedules 11 - 13 299 B Cross reference table 328 C Glossary of terms 329 D Certificate of compliance 332 Orion New Zealand Limited 10 year Asset Management Plan – From 1 April 2015 7 List of figures Figure Title Page Figure Title Page Summary 4-16b Power transformers - age profile 136 2-2a Interaction of plans and processes 12 4-17a Distribution transformers - age profile 140 1-1b Asset management structure 13 4-19a Protection systems - health index profile 145 1-3a Orion’s network area 18 4-19b Protection systems - age profile 145 5-4b Overall maximum demand trends on our network 22 4-20a Radio communication network repeater sites 147 5-4e Rural summer maximum demand (MW) 23 4-21a Ripple injection system control diagram 150 8-2a Orion network SAIDI FY92 - Current Year 30 4-22a SCADA remote terminal units (RTU) - age profile 155 Background and objectives 4-26a Substation buildings (owned by Orion) - age profile 166 2-2a Interaction of plans and processes 39 4-26b Kiosks - age profile 167 2-4a Asset management structure 42 Network development 2-6a Optimal cost versus quality principle 48 5-2 Transpower system in Orion's network area 176 2-7a Asset management system 50 5-3 Peak demand capping 183 2-7b Process to introduce new equipment 52 5-4a Orion network annual energy trends 187 2-7c Process for routine asset inspection and maintenance 52 5-4b Overall maximum demand trends on the Orion network 188 2-7d Process for performance measurement 53 5-4c System load factor 189 2-7e Process for network development 53 5-4d Christchurch urban area network – load duration curves 190 2-8a Management systems and information flows 55 5-4e Central Plains Water scheme stages 191 Service levels 5-4f Rural summer maximum demand (MW) 191 3-3a Orion SAIDI – ten year history and 10 year forecast 66 5-4g Rural winter maximum demand (MW) graph 192 3-3b Orion SAIFI – ten year history and 10 year forecast 67 5-4h Take-up of industrial land 193 3-3c Unplanned interruptions - % restored in under 3hrs 67 5-4i GXPs – Maximum demand versus firm capacity 196 Lifecycle asset management 5-4j Urban 66/33 zone substations – max demand v capacity 197 4-1a 66,33kV and 11kV subtransmission – Urban area 78 5-4k Urban 11kV zone substations – max demand v capacity 197 4-1b 66kV and 33kV subtransmission network – Rural area 79 5-4l Zone subs – urban (CY-1 max demand as % of capacity) 199 4-1c Network voltage level/asset relationships 80 5-4m Rural zone substations – max demand v firm capacity 200 4-3a Condition score conversion - CBRM to ComCom 12a 85 5-4n Zone subs – rural (max demand as a % of firm capacity) 202 4-5a 66kV Subtransmission – 66kV overhead lines 92 5-4o 66kV, 33kV and 11kV zone substation utilisation 203 4-5b 66kV Overhead lines – asset failures/100km 93 5-4p Zone substation 11kV feeder cable utilisation graph 204 4-5c 66kV Overhead poles and towers – age profile 93 5-4q Distribution transformer utilisation graph 204 4-6a 33kV Subtransmission network 96 5-6a Transpower core grid and spur assets in Orion’s area 210 4-6b 33kV Overhead lines – asset failures/100km 97 5-6b Urban subtrans 66kV – existing and proposed (Diagram) 214 4-6c 33kV Overhead line poles - age profile 97 5-6c Urban subtrans 33kV – existing and proposed (Diagram) 214 4-7a 11kV Overhead lines – asset failures/100km 99 5-6d Urban subtrans 66,33kV – existing and proposed (Map) 215 4-7b 11kV Overhead line poles – age profile 101 5-6e Rural subtrans 66kV – existing and proposed (Diagram) 221 4-8a 400V Overhead line poles – age profile 103 5-6f Rural subtrans 33kV – existing and proposed (Diagram) 221 4-9a 66kV Subtransmission – UG cables - Christchurch urban area 105 5-6g Rural subtrans 66,33kV – existing and future (Map) 222 4-9b 66kV Underground cables – asset failures/100km 107 Risk management 4-9c 66kV Underground cables – age profile 107 6-1a The three components of risk 245 4-10a 33kV Subtransmission – Christchurch urban area 109 6-1b Key risk responsibilities 245 4-10b 33kV Underground cables – asset failures/100km 110 6-1c Orion risk acceptability matrix 246 4-10c 33kV Subtransmission – Lincoln and Springston area 110 6-1d Orion risk acceptability chart 246 4-10d 33kV Underground cables – age profile 111 6-4a Environmental management documentation 252 4-11a 11kV Underground cables – asset failures/100km 113 6-4b Environmental management process 252 4-11b 11kV Underground cables – age profile 115 Evaluation of performance 4-12a 400V Underground cables – age profile 118 8-2a SAIDI - Orion network FY92-Current year