Asset Management Plan 2015 to 2025 Publicly disclosed in March 2015 TPCL’S AMP CONTENTS Contents 0. SUMMARY ............................................................................................................................................... 4 0.1 BACKGROUND AND OBJECTIVES ........................................................................................................... 4 0.2 DETAILS OF THE ASSETS ...................................................................................................................... 5 0.3 PROPOSED SERVICE LEVELS ............................................................................................................... 6 0.4 DEVELOPMENT PLANS ......................................................................................................................... 6 0.5 MANAGING THE ASSET’S LIFECYCLE ...................................................................................................... 8 0.6 RISK MANAGEMENT ............................................................................................................................. 8 0.7 FUNDING THE BUSINESS ....................................................................................................................... 8 0.8 PROCESSES AND SYSTEMS .................................................................................................................. 9 0.9 PERFORMANCE AND IMPROVEMENT ...................................................................................................... 9 0.10 FEEDBACK AND COMMENTS .................................................................................................................. 9 1. BACKGROUND AND OBJECTIVES ..................................................................................................... 10 1.1 BACKGROUND ................................................................................................................................... 10 [A.3.3.] 1.2 PURPOSE OF THE ASSET MANAGEMENT PLAN ............................................................................ 10 1.3 INTERACTION WITH OTHER GOALS AND DRIVERS .................................................................................. 11 1.4 KEY PLANNING DOCUMENTS ............................................................................................................... 12 [A.3.3.5.] 1.5 INTERACTION OF GOALS / STRATEGIES ...................................................................................... 15 1.6 PERIOD COVERED BY THE ASSET MANAGEMENT PLAN ......................................................................... 15 1.7 STAKEHOLDER INTERESTS ................................................................................................................. 16 [A.3.7] 1.8 ACCOUNTABILITIES FOR ASSET MANAGEMENT .............................................................................. 19 [A.3.13] 1.9 SYSTEMS AND PROCESSES ....................................................................................................... 22 2. DETAILS OF THE ASSETS ................................................................................................................... 23 2.1 DISTRIBUTION AREA ........................................................................................................................... 23 2.2 NETWORK CONFIGURATION ................................................................................................................ 28 [A.4.4.] 2.3 AGE AND CONDITION OF TPCL’S ASSETS BY CATEGORY .............................................................. 41 2.4 JUSTIFYING THE ASSETS .................................................................................................................... 56 [A.5.] 3. PROPOSED SERVICE LEVELS ..................................................................................................... 58 3.1 CREATING SERVICE LEVELS ................................................................................................................ 58 3.2 CUSTOMER-ORIENTED SERVICE LEVELS .............................................................................................. 58 [A.7.2.] 3.3 REGULATORY SERVICE LEVELS ................................................................................................... 62 [A.8.] 3.4 JUSTIFYING THE SERVICE LEVELS ................................................................................................. 63 4. DEVELOPMENT PLANS ....................................................................................................................... 69 [A.3.13.2. & A.11.1.] 4.1 PLANNING APPROACH AND CRITERIA ............................................................................. 69 [A.11.7.] 4.2 PRIORITISATION METHODOLOGY ............................................................................................... 73 [A.11.8.] 4.3 TPCL’S DEMAND FORECAST ..................................................................................................... 78 [A.8.3.] 4.4 WHERE ARE TPCL’S NETWORK CONSTRAINTS ............................................................................ 86 [A.11.11.] 4.5 POLICIES FOR DISTRIBUTED GENERATION ................................................................................. 87 [A.11.12.] 4.6 USE OF NON-ASSET SOLUTIONS ............................................................................................... 88 [A.11.2.] 4.7 NETWORK DEVELOPMENT OPTIONS ........................................................................................... 89 [A.11.9. & A.11.10.] 4.8 DEVELOPMENT PROGRAMME ......................................................................................... 91 4.9 NON-NETWORK ASSETS ................................................................................................................... 108 [A.12.] 5. MANAGING THE ASSETS’ LIFECYCLE .................................................................................... 109 5.1 LIFECYCLE OF THE ASSETS ............................................................................................................... 109 5.2 OPERATING TPCL’S ASSETS ............................................................................................................ 110 [A.3.13.1. & A.12.1.] 5.3 MAINTAINING TPCL’S ASSETS .................................................................................... 112 [A.12.2.1.] 5.4 TPCL’S MAINTENANCE POLICIES ........................................................................................... 117 [A.12.3.] 5.5 RENEWING TPCL’S ASSETS ................................................................................................... 117 5.6 UP-SIZING OR EXTENDING TPCL’S ASSETS ....................................................................................... 122 5.7 ENHANCING RELIABILITY................................................................................................................... 123 5.8 CONVERTING OVERHEAD TO UNDERGROUND ..................................................................................... 124 5.9 RETIRING OF TPCL’S ASSETS .......................................................................................................... 124 [A.12.2.3.] 5.10 TPCL’S MAINTENANCE BUDGET ........................................................................................... 125 [A.14.] 6. RISK MANAGEMENT .................................................................................................................. 126 [A.14.1., A.14.2] 6.1 RISK METHODS .............................................................................................................. 126 6.2 RISK TACTICS .................................................................................................................................. 128 [A.14.1, A.14.2 & A.14.3.] 6.3 RISK DETAILS ....................................................................................................... 128 [A.14.4.] 6.4 CONTINGENCY PLANS ............................................................................................................. 132 TPCL’S AMP CONTENTS 6.5 INSURANCE ..................................................................................................................................... 133 7. FUNDING THE BUSINESS .................................................................................................................. 134 7.1 BUSINESS MODEL ............................................................................................................................ 134 7.2 REVENUE ........................................................................................................................................ 134 7.3 EXPENDITURE ................................................................................................................................. 134 7.4 CHANGES IN THE VALUE OF ASSETS .................................................................................................. 135 7.5 DEPRECIATING THE ASSETS ............................................................................................................. 135 [A.3.11. & A.3.12.] 8. PROCESSES AND SYSTEMS ........................................................................................ 136 [A.3.12.] 8.1 ASSET KNOWLEDGE ............................................................................................................... 136 [A.8.12.] 8.2 IMPROVING THE QUALITY OF THE DATA .................................................................................... 137 8.3 USE