MainPower New Zealand Limited. Asset Management Plan 2016 – 2026 Asset Management Plan 1st April 2016 – 31st March 2026 The information contained herein is confidential to MainPower and may not be reproduced without express permission. Page 2 of 186 Contents Executive Summary ........................................................................................................................................... 7 1. Background and Objectives of the AMP ................................................................................................ 15 1.1 Introduction ......................................................................................................................................... 15 1.2 Purpose Statement .............................................................................................................................. 15 1.3 Corporate Overview ............................................................................................................................. 16 1.4 Planning Period .................................................................................................................................... 17 1.5 Date Approved by Directors ................................................................................................................. 17 1.6 Description of Stakeholder Interests .................................................................................................... 17 1.6.1 Identifying Stakeholders ................................................................................................................. 17 1.6.2 Stakeholder Interests ...................................................................................................................... 18 1.6.3 Accommodating Stakeholder Interests ........................................................................................... 19 1.6.4 Managing Conflicting Interests ....................................................................................................... 20 1.7 Accountabilities and Responsibilities for Asset Management ............................................................... 21 1.7.1 Ownership ....................................................................................................................................... 21 1.7.2 Governance ..................................................................................................................................... 21 1.7.3 Executive ......................................................................................................................................... 22 1.7.4 Management ................................................................................................................................... 22 1.7.5 Works Implementation ................................................................................................................... 22 1.7.6 Reporting Asset Management Plans and Outcomes ...................................................................... 23 1.7.7 Delegated Authorities ..................................................................................................................... 23 1.8 Forecasting Assumptions ...................................................................................................................... 24 1.8.1 Significant Assumptions .................................................................................................................. 24 1.8.2 Price Inflator Assumptions .............................................................................................................. 25 1.8.3 Sources of Uncertainty .................................................................................................................... 25 1.9 Overview of Asset Management Strategy and Delivery ........................................................................ 26 1.9.1 Asset Management Strategy ........................................................................................................... 26 1.9.2 Asset Management Objectives ....................................................................................................... 26 1.10 Overview of Systems and Information Management Data ................................................................... 27 1.10.1 Health and Safety, Quality, and Environmental Systems ................................................................ 27 1.10.2 Asset Management System ............................................................................................................ 28 1.10.3 Integrated Management System .................................................................................................... 28 1.10.4 Asset Management Information Systems ....................................................................................... 28 1.10.5 Limitations of Asset Management Data .......................................................................................... 30 1.11 Description of Key Processes ............................................................................................................... 31 1.11.1 Establishing expenditure plans ....................................................................................................... 32 1.11.2 Managing Routine Asset Inspections and Network Maintenance .................................................. 32 1.11.3 Planning and Implementing Network Development Processes ...................................................... 32 1.11.4 Measuring Network Performance .................................................................................................. 33 1.11.5 Documentation, Controls and Review Process ............................................................................... 33 1.11.6 Communication and Participation Process ..................................................................................... 33 2. Assets Covered ..................................................................................................................................... 35 2.1 Overview .............................................................................................................................................. 35 2.1.1 Service Area .................................................................................................................................... 35 Page 3 of 186 2.1.2 Load Characteristics ........................................................................................................................ 38 2.1.3 Peak Demand and Total Energy Delivered ...................................................................................... 38 2.1.4 Major Customers ............................................................................................................................ 39 2.2 Network Configuration ......................................................................................................................... 40 2.2.1 Bulk Supply Configuration ............................................................................................................... 40 2.2.2 Subtransmission System ................................................................................................................. 43 2.2.3 Distribution System ......................................................................................................................... 45 2.2.4 Distribution Substations.................................................................................................................. 45 2.2.5 Low Voltage Network ...................................................................................................................... 45 2.2.6 Secondary assets ............................................................................................................................. 46 2.3 Network Assets by Category ................................................................................................................. 46 2.3.1 Subtransmission .............................................................................................................................. 47 2.3.2 Zone Substations ............................................................................................................................. 47 2.3.3 Distribution and LV Lines ................................................................................................................ 47 2.3.4 Distribution and LV Cables .............................................................................................................. 48 2.3.5 Distribution Substations and Transformers .................................................................................... 48 2.3.6 Distribution Switchgear .................................................................................................................. 48 2.3.7 Secondary Assets ............................................................................................................................ 49 3. Service Levels ....................................................................................................................................... 51 3.1 Performance Indicators ........................................................................................................................ 51 3.1.1 Safety .............................................................................................................................................. 51 3.1.2 Compliance