ASsET M ANAG E M E N T P LA N

INFOR m AT I O N D I S C LO S U R E F O R
ELECT R I C I T Y N E T W O R K S
20102019
ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Disclaimer: This Asset Management Plan (AMP) is a high-level document providing Powerco
Limiteds management and stakeholders with a broad overview of the companys Asset
Management policies, asset details, service levels, capital and maintenance works planning,
expenditure forecasts, risk management and performance evaluation. It summarises the
content of other plans prepared for specific purposes, and is structured to comply with Section
24 of the Commerce Commissions Electricity Information Disclosure Requirements 2004 (as
amended 31 October 2008). The information in this document has been prepared in good faith
and represents Powercos intentions and opinions at the date of issue. Powerco does not give
any assurance, either express or implied, about the accuracy of the information or whether the
company will actually implement the plan or undertake any work mentioned in the documents.
None of Powerco Limited, its directors, officers, shareholders or representatives accepts any
liability whatsoever by reason of, or in connection with, any information in this document or any
actual or purported reliance on it by any person. Powerco may change any information in this
document at any time.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Chief Executives Statement

The magnitude of the investment needed in the network to renew an increasingly ageing
network and increase the security of the core network is significant. Based on our analysis
a further $17 million of annual expenditure is necessary to reduce the risk to reliability to an
acceptable level.

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

100

2004

Year
(Ending March)

Forecast Reliability (Apr-09 AMP Spend)

Actual Reliability (excl. storms)

Forecast Reliability (Apr-10 AMP Spend)

Forecast Reliability (Apr-10 AMP + 5% more work)

Actual Reliability (incl. storms)

Regulatory Threshold

Target Reliability (AMP)

Forecast Reliability (based on IR Spend)

Figure 1: Actual and Forecast Reliability Performance

We take the risk to reliability very seriously and in this AMP we have committed to a further
step-up in expenditure to minimise the risk to reliability. The resulting improvement (or perhaps
better stated as reducing the risk) in reliability performance can be seen in Figure 1 where

25

$0

24

Total Capex

Average Network Age

2021

$20
2020

26

2019

$40

2018

27

2017

$60

2016

28

2015

$80

2014

150

29

2013

200

$100

2012

250

30

2011

Improvement due to
increased work done
for same money

$120

2010

300

Deterioriating reliability due

to regulation constaining
expenditure (reduced)

31

2009

Improvement due to
increase in spend due to
CPI-0% threshold change

2003

SAIDI (Class B+C) minutes

350

Total Capex ($m)

Actual and Forecast SAIDI Reliability

Average Age

Network Average Age and Forecast Capex

$140

2008

Over the past 15 years, we have performed well in efficiently delivering a reliable electricity
supply. In the past seven years, we have doubled our expenditure on the network. Significant
expenditure has been directed towards renewals and maintenance, reflecting the increasing
age of the network and the growing proportion of assets reaching the end of their useful lives.
Despite this increased expenditure, reliability has remained static and the risk of breaching our
reliability standards has materially increased. This issue is illustrated in Figure 1 where there is a
widening gap between target (blue line) and forecast performance (the light blue bars).

The increase in expenditure has been made possible by the outcome of the Default Price
Path (which regulates Powercos revenue) effective from 1 April 2010. For the past six years,
Powercos prices reduced 2% per annum in real terms. The new Default Price Path allows
Powerco to maintain its prices in real terms. We look forward to the conclusion of the current
regulatory development process to provide greater certainty for further investment decisions.

2007

I am pleased to present the 2010 edition of our Asset Management Plan (AMP). The AMP is an
important part of Powercos planning framework. It describes for our customers, shareholders,
staff and partners how we will manage our electricity distribution network to meet the
standards of reliability of electricity supply that our customers demand and the commercial
performance that our shareholders expect.

the reliability forecast from the April 2009 AMP (the dark red line) is compared to the updated
reliability forecasts based on this years AMP expenditure (the light blue bars). The AMP
commits to an additional annual $5.5 million capital expenditure, growing to $6.7 million by
2020.

2006

Welcome to the 2010 Edition of our Asset Management

Plan (AMP).

Year (ending June)

Figure 2: Network Age and Forecast Capex

Figure 2 highlights the magnitude of the investment required. Even though capital expenditure
has increased significantly, the network will continue to age without a further step-change
increase in expenditure.
With that said, we have increased our focus on security, which is building redundancy into the
core (or backbone) of the network. This will improve resilience (and hence reliability) and the
networks capacity to accommodate future growth.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

The need for increased expenditure to replace assets was confirmed by independent
consultants Farrier Swier Consulting in its report to the Commerce Commission on electricity
distribution network asset management. Farrier Swier found that Powerco may need to
increase renewal expenditure in the period 2009 to 2014 by 27% (to $30 million in 2012) and,
2014 to 2019 by 71% (to $44 million in 2017).

A Plan for Focused Investment in Security, Capacity and Reliability

As I mentioned at the start, the AMP is an important part of the business planning framework.
We are committed to pursuing the following electricity Asset Management-related strategies:
1. Renewal and modernisation;
2. Increasing the redundancy of the core network;
3. Standardisation of systems and processes; and
4. Development of Smart Network.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

1.500

50

1.250

40

1.000

30

0.750

20

0.500
0.250

10

Inflation Index

Refurbishment and
Renewal Maintenance

2020 F

2021 F

2019 F

2018 F

2017 F

2016 F

2015 F

2014 F

2012 F

Asset Replacement and Renewal

2013 F

0
2011 F

Inflation Index

60

2010 F

As the recession (and the global financial crisis) had little impact on our growth, the expenditure
reductions foreshadowed in the 2009 edition of the AMP will not be occurring. If future
growth is significantly higher than expected, particularly in areas where there is already
limited redundancy, then this will require increased investment, only a small part of which is
contributed to by the new or upgrading customer.

1.750

2009 B

The demand for reliable electricity supply in our markets has continued despite the recent
recession. We expect this demand to continue to grow, particularly as the intensification and
reliance on technology in rural areas increases.

2.000

70

2007 A

Powerco is NewZealands second largest electricity and gas distributor. We own and operate
a large network of electricity distribution assets that delivers over 4,400 GWh of electricity
through 27,400 km of lines and cables to more than 317,000 consumer connections in
Coromandel; Hauraki Plains; Eastern and Southern Waikato; Western Bay of Plenty (including
Tauranga); Taranaki; Wanganui; Rangitikei; Tararua; Manawatu and Wairarapa.

Asset Renewal Capital & Operational Expenditure

80

2008 A

An Ageing Network and Increasing Demand for Reliable Electricity Supply

Modernisation of the network involves the replacement and a updating of our aged assets. The
increase in renewal expenditure is described in the following graph.

2006 A

The most important outcome of our increased investment is that we will be better able to meet
the demands of our customers and the requirements of regulators.

Renewal and Modernisation

Nominal Expenditure ($000)

We also continue to develop a range of innovative solutions to improve reliability, and are
looking to develop the foundations or smart grid technology and other solutions to maximise
the utilisation of assets and service from those assets.

Year (ending June)

Figure 3: Actual and Forecast Asset Renewal Capital and Maintenance Expenditure

Increasing the Redundancy of the Core Network

Increasing the redundancy of the core network involves increasing zone substation capacity
and installing more network automation, such as auto reclosers and earth fault neutralisers.
Currently, the level of zone substation utilisation is about 57% and, without investment in zone
substation capacity utilisation, will increase to about 64% in 2014. To increase zone substation
capacity we have identified the potential for 17 zone substations to be built and 20 additional
transformer banks to be installed at existing substations over the next 10 years.

Standardisation
Standardisation of systems and processes is a key strength of Powercos employees and it
has been a significant focus for management. As a result, we have been able to develop a
common maintenance management system and a suite of information system projects directed
at improving processes.

There has also been continuing development of design, construction and maintenance
standards, which lead to lower risk profiles in the network and less reliance on the skill levels of
field staff. Further investment in the standardisation of systems and processes will allow us to
extend asset lives.
We also recognise that although Powerco has demonstrated strong capability in our Asset
Management processes compared with our peers in NewZealand, our processes and systems
compare less favourably with Australian utilities. We need to invest to bring our performance up
to international standard.

Smart Network
Becoming a Smart Network is an addition to the 2010 AMP. The aims of Smart Networks
include self-healing networks and networks that can shift load from peak times to reduce peak
demand growth. Smart Networks are something that regulators in many countries are now
paying greater attention to because they are perceived to offer improvements in performance
to customers. Well thought out and implemented Smart Grid technologies offer exciting
performance benefits. They also fit well with our business plan objectives of improving reliability
through automated solutions and managing increasing investment profiles through non-asset
solutions. The 2010 AMP sets out initiatives that are consistent with the ESRI and Energy
Networks Australia visions of Smart Networks.

Concluding Comment
Powerco has a responsibility to provide a safe, secure, and reliable supply of electricity to our
customers and we have worked hard over the past 15 years to achieve this efficiently. While
the reliability of Powercos electricity distribution networks is not considered to be out of step
with customer expectations, reliability has been largely static and the risk of reliability worsening
is increasing. We have committed an additional $6 million of capex per annum to minimise
this risk. However, due to ageing of the network and increased demand we have a significant
challenge to meet the required investment under the existing regulatory settings.
The Asset Management Plan that follows provides more detail on the issues I have discussed.
It also describes in more detail our plan for addressing those issues. We are enthusiastic about
Powercos future and look forward to discussing our plans with you.

Richard Krogh
Chief Executive

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Contents

1. EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.1.
1.2.
1.3.
1.4.
1.5.

1.6.
1.7.
1.8.
1.9.
1.10.
1.11.

1.12.
1.13.
1.14.
1.15.
1.16.

2. Background and Objectives

2.1.
2.1.1.
2.1.2.
2.1.3.
2.2.
2.2.1.
2.2.2.
2.2.3.
2.3.
2.3.1.
2.3.2.
2.4.
2.5.
2.6.
2.6.1.
2.6.2.
2.7.
2.7.1.
2.7.2.
2.7.3.
2.7.4.
2.7.5.

Purpose of the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Period Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Asset Management Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Asset Management Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Balancing Constraints, Asset Management
Drivers and Conflicting Stakeholder Needs . . . . . . . . . . . . . . . . 10
Asset Management Information Systems . . . . . . . . . . . . . . . . . . . 11
Service Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Assets Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Performance Level Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Performance Measurement, Evaluation and
Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Ongoing Growth in Electricity Demand
and Throughput . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Maintenance, Renewal and Development Plans . . . . . . . . . 16
Smart Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Expenditure Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Advanced Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
. . . . . . . . . . . . . . .

20

About Powerco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview and Historical Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Powercos Vision and Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Powercos Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purpose and Objective of the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Period Covered by the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Future Review of the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Structure of the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Management Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stakeholder Drivers of the Asset Management Process . .
Other Drivers of the Asset Management Process . . . . . . . . . . . .
Balancing Asset Management Drivers . . . . . . . . . . . . . . . . . . . . . . .
Corporate Interaction with the Asset Management
Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Management Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Process Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Core Process for Balancing Asset Management Drivers . .
Responsibilities for Asset Management . . . . . . . . . . . . . . . . . . . . . .
Powercos Network Ownership and Management
Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Governance Level Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive and Senior Management Level
Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Field Operations Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Management Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20
20
20
20
21
22
22
22
23
23
27
27
29
30
30
32
33
33
35
35
36
36

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

2.8.
2.8.1.
2.8.2.
2.8.3.
2.8.4.
2.8.5.
2.8.6.
2.8.7.
2.8.8.
2.8.9.
2.8.10.
2.8.11.
2.8.12.
2.9.
2.9.1.
2.9.2.
2.9.3.
2.9.4.
2.9.5.
2.9.6.
2.10.

Asset Management Information Systems . . . . . . . . . . . . . . . . . . . 36

Geographical Information System (GIS) . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Maintenance, Works Management and Financial System 37
ENS/Gentrack . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
SCADA Data and PI System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
TVD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
OutDef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
CIW Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Improvement Register and Optimisation Tool . . . . . . . . . . . . . . . . . . 38
Drawing Management System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Ancillary Databases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Other Record Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Information Integrity and Improvement Actions . . . . . . . . . . . . . . . 38
Network Service Provision Arrangements . . . . . . . . . . . . . . . . . . 39
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Powerco Outsourcing Policy Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Pure Alliance-Style Agreement and Contracts . . . . . . . . . . . . . . . . . 40
Other Alliance-Style Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Vegetation Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Customer Initiated Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Transmission Relationship Management . . . . . . . . . . . . . . . . . . . . 41

3. Assets Covered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

3.1. Electricity Network Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

3.2. The Network Assets by Type and Function . . . . . . . . . . . . . . . . . 42
3.2.1. Justification for the Network Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.2.2. Transmission Points of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.2.3. Justification for the Points of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.2.4. Subtransmission Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.2.4.1 Justification for Subtransmission Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.2.5. Embedded Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.2.6. Zone Substations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.2.6.1 Justification for Zone Substation Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.2.7. Distribution Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.2.8. Distribution Switchgear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.2.8.1 Justification for Distribution Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.2.9. Distribution Substations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.2.9.1 Justification for Distribution Substation Assets . . . . . . . . . . . . . . . . . . . . . 50
3.2.10. Low-voltage Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
3.2.10.1 Justification for Low-voltage Reticulation Assets . . . . . . . . . . . . . . . . . . 51
3.2.11. Protection and Control Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3.2.11.1 Protection and Control Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3.2.11.2 Protection Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3.2.11.3 SCADA and Communication Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3.2.11.4 Load-control Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.2.11.5 Energy Measurement Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.2.11.6 GXP Meters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.2.11.7 Justification for Protection and Control Assets . . . . . . . . . . . . . . . . . . . . . 52
3.2.12. Emergency and Critical Spares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

3.2.12.1 Justification for Emergency and Critical Spares . . . . . . . . . . . . . . . . . . . 53

.2.13. Back-up Generation Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3
3.3. Area Network Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.3.1. Manawatu Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.3.2. Taranaki Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.3.3. Tauranga Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.3.4. Valley Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.3.5. Wairarapa Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.3.6. Wanganui Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
3.4. Network Assets by Prevailing Customer Type . . . . . . . . . . . . 55
3.4.1. Industrial and Commercial (F1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
3.4.2. Kinleith Mill Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
3.4.3. Te Rerehau Windfarm Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
3.4.4. Large Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
3.4.5. Dairy Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
3.4.6. Timber Processing Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
3.4.7. Food Processing Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.4.8. Transportation Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.4.9. Manufacturing Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.4.10. Chemicals Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.4.11. Government Sector & Research Facilities . . . . . . . . . . . . . . . . . . . . . . . 58
3.4.12. Central Business District Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.4.13. Residential Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.4.14. Rural Networks (F4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.4.15. Remote Rural Networks (F5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.5. Network Asset Age and Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
3.5.1. The Assets by Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
3.6. Overhead Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.6.1. Overhead Lines Age Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.6.2. Overhead Line Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.7. Underground Cables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.7.1. Underground Cable Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.7.2. Subtransmission Cable Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.7.3. Distribution Cable Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.7.4. LV Cable Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.8. Distribution Transformer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.8.1. Distribution Transformer Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.8.2. Distribution Transformer Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.9. Distribution Switchgear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.9.1. Distribution Switchgear Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.9.2. Distribution Switchgear Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
3.10. Zone Substations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
3.10.1. Zone Substation Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
3.10.2. Zone Substation Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Return to Index

4. Performance TARGETS and

Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

4.1.
4.1.1.
4.2.
4.2.1.
4.2.2.
4.2.2.1
4.2.2.2
4.2.2.3
4.2.2.4
4.2.3.
4.2.3.1
4.2.4.
4.2.4.1
4.2.5.
4.2.6.
4.2.7.
4.2.7.1
4.2.8.
4.2.8.1
4.2.9.
4.3.
4.3.1.
4.3.1.1
4.3.1.2
4.3.1.3
4.3.1.4
4.3.2.
4.3.2.1
4.3.3.
4.3.3.1
4.3.3.2
4.3.3.3
4.3.4.
4.3.5.
4.3.6.
4.4.
4.4.1.
4.4.2.
4.4.3.
4.5.
4.6.
4.7.
4.8.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Performance Target Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Levels of Consumer Service (Quality) Performance . . . . 64
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Consumer Consultation Price Quality Trade-off . . . . . . . . . . . . 64
Complaints Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Results of Consultation to Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Effect of Consultation on Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Definition of Consumer Service and Service Performance . . . . . 65
Supply Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Justification for the Quality Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Reliability Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Justification for the Reliability Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Capacity Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Street Lighting Service Target Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Targeted Number of Faults per km of Line . . . . . . . . . . . . . . . . . . . . . . 69
Justification for the Target Numbers of Faults . . . . . . . . . . . . . . . . . . . . . . . 70
Targeted Number of Interruptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Justification for the Target Numbers of Interruptions . . . . . . . . . . . . . 70
Targeted Numbers of Customers per Feeder . . . . . . . . . . . . . . . . . . 70
Target Performance for Economic Efficiency . . . . . . . . . . . . . . 70
Integration of Economic Efficiency Drivers into
Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Asset Replacement Economic Assessment . . . . . . . . . . . . . . . . . . . . . . . . . 70
Planning Criteria Economic Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Maintenance Techniques Economic Assessment . . . . . . . . . . . . . . . . . 71
Consumer Initiated Developments Economic Assessment . . . . 71
Asset Efficiency Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Justification for the Asset Efficiency Targets . . . . . . . . . . . . . . . . . . . . . . . . . 71
Asset Utilisation Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Justification for the Asset Utilisation Targets . . . . . . . . . . . . . . . . . . . . . . . . . 72
Expenditure Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Justification for the Expenditure Performance Targets . . . . . . . . . . . 72
Network Loss Performance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Non-Network and Non-Asset Solutions . . . . . . . . . . . . . . . . . . . . . . . . . 73
Adoption of New Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Performance of Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Prequalification of Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Maintenance Scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Monitoring Quality of Workmanship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Target Performance for Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Target Performance for Environmental Responsibility 75
Statutory Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Return to Index

5. EVALUATION OF PERFORMANCE. . . . . . . . . . . . . . . . . 76

5.1.
5.1.1.
5.1.2.
5.2.
5.2.1.
5.2.2.
5.2.3.
5.2.4.
5.2.5.
5.2.6.
5.2.7.
5.2.8.
5.3.
5.3.1.
5.3.2.
5.3.3.
5.4.
5.5.
5.6.
5.6.1.
5.6.2.
5.6.3.
5.7.
5.7.1.
5.7.2.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
General Review Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Review of Work in Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Review of Consumer Service Performance
against Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Results of Consumer Consultation Process . . . . . . . . . . . . . . . . . . . . 76
Results of Complaints Monitoring Process . . . . . . . . . . . . . . . . . . . . . 76
Network Supply Quality Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Reliability Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Reliability History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Underlying Reliability Performance Trends . . . . . . . . . . . . . . . . . . . . . . 82
Distribution Feeder Class Reliability Performance . . . . . . . . . . 83
Network Capacity Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Review of Economic Efficiency Performance
against Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Asset Efficiency Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Asset Utilisation Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Cost Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Review of Safety Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Review of Environmental Performance . . . . . . . . . . . . . . . . . . . . . . 86
Review of Physical Performance against Plan . . . . . . . . . . . . 86
Subtransmission Network Project Performance . . . . . . . . . . . . . . 86
Distribution Network Project Performance . . . . . . . . . . . . . . . . . . . . . . 88
Protection and Control Development Performance . . . . . . . . . 88
Review of Financial Progress against Plan . . . . . . . . . . . . . . . . . . 90
Capital Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Maintenance Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

6. ASSET LIFE CYCLE MANAGEMENT

PLAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

6.1.
6.1.1.
6.1.2.
6.1.3.
6.2.
6.2.1.
6.2.2.
6.2.3.
6.2.4.
6.3.
6.3.1.
6.3.2.
6.3.3.
6.3.4.
6.3.5.
6.3.6.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Life Cycle Asset Management Concepts . . . . . . . . . . . . . . . . . . . . . . . 91
Network Standards Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Network Standards Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Asset Conception, Design and Specification . . . . . . . . . . . . . . 92
Class A Item-Focused Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Class B Standards-Focused Equipment . . . . . . . . . . . . . . . . . . . . . . . 93
Class C Functionality-Focused Equipment . . . . . . . . . . . . . . . . . . . 93
Class Exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Maintenance Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Determining Maintenance Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Maintenance Work Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Inspection and Condition Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Routine Servicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Evaluation of Condition Monitoring Results . . . . . . . . . . . . . . . . . . . . . 95
Evaluation of Faults and Monitoring Reliability
(Reliability Driven Renewal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

6.3.7.
6.3.8.
6.3.9.
6.3.10.
6.4.
6.4.1.
6.4.2.
6.4.3.
6.4.4.
6.4.5.
6.4.6.
6.4.7.
6.4.8.
6.5.
6.6.
6.6.1.
6.6.2.
6.6.3.
6.6.4.
6.6.5.
6.6.6.
6.6.7.
6.6.8.
6.7.
6.7.1.
6.7.2.
6.7.3.
6.7.4.
6.7.5.
6.7.6.
6.7.7.
6.8.
6.8.1.
6.8.2.
6.8.3.
6.8.4.
6.8.5.
6.9.
6.9.1.
6.9.2.
6.9.3.
6.9.4.
6.10.
6.10.1.

Fault First Response and Call Outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Corrective Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Individual Asset Life Cycle Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Maintenance Management System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Asset Renewal Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Asset Renewal Strategic Themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Asset Renewal Timing Renewal versus Maintenance . . . . 96
Asset Renewal Forecasting Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Age Profile-Based Renewal Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Implications of the Wall of Wire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Renewal Investment Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Historical Rates of Asset Replacement . . . . . . . . . . . . . . . . . . . . . . . . . 100
Life Extension Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Redeployment, Upgrade and Disposal of
Existing Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Overhead Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Individual Asset Life Cycle Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Frequencies of Overhead Line Inspections . . . . . . . . . . . . . . . . . . 101
Overhead Line Condition Monitoring and Maintenance
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Overhead Line Replacement Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Reliability Driven Renewal Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Subtransmission Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Distribution Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Low-Voltage Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Underground Cables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Individual Asset Life Cycle Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Frequencies of Underground Circuit Inspections . . . . . . . . . . 104
Underground Cable Network Condition Monitoring and
Maintenance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Underground Cable Replacement Profile . . . . . . . . . . . . . . . . . . . . . . 104
Subtransmission Cables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Distribution Cables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Low-Voltage Cables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Distribution Transformers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Individual Asset Life Cycle Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Frequencies of Inspections and Maintenance Activities . 105
Distribution Transformer Condition Monitoring
and Maintenance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Distribution Transformer Replacement Profile . . . . . . . . . . . . . . . 106
Condition Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Distribution Switchgear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Individual Asset Life Cycle Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Frequencies of Inspections and Maintenance Activities . 107
Distribution Switchgear Condition Monitoring
and Maintenance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Switchgear Replacement Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Zone Substation Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Individual Asset Life Cycle Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

 .10.2. Frequencies of Inspections and Maintenance Activities . 108

6
6.10.3. Zone Substation Condition Monitoring
and Maintenance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
6.10.4. Zone Substation Replacement Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
6.10.5. Zone Substation Switchgear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
6.10.6. Zone Transformers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
6.10.7. Zone Substation DC Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
6.10.8. Substation Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.11. Protection and Control Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.11.1. Individual Asset Life Cycle Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.11.2. Frequencies of Inspections and Maintenance Activities . 112
6.11.3. Protection and Control Condition Monitoring
and Maintenance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.11.4. Protection Relays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.11.5. SCADA and Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
6.11.6. Load Control Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
6.11.7. Metering System Instrument Transformers . . . . . . . . . . . . . . . . . . . . 114
6.11.8. GXP Metering Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
6.11.9. Street Lighting Control Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
6.12. Critical and Emergency Spares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
6.13. Network Renewal Project Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 115

7. Network Development Plan

System Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

7.1.
7.2.
7.3.
7.3.1.
7.3.2.
7.3.3.
7.3.4.
7.3.5.
7.3.6.
7.3.7.
7.3.8.
7.4.
7.4.1.
7.4.2.
7.4.3.
7.4.4.
7.5.
7.5.1.
7.5.2.
7.5.3.
7.5.4.
7.5.5.
7.5.6.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Security of Supply Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Network Capacity Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Design Operational Temperatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Capacities for Planning Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Planning Design Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
General Principles Related to Feeders . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Underground versus Overhead Construction . . . . . . . . . . . . . . . . 121
Voltage Fluctuation Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Voltage Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Transformer Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Planning Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Long-Term Planning (Subtransmission) . . . . . . . . . . . . . . . . . . . . . . . . . 121
Medium-Term Planning (Distribution) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Kinleith Paper Mill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Planning Criteria Low-Voltage Reticulation Planning . . . 122
Load Forecasting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Regional Influences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Changing Consumer Technologies and Demand . . . . . . . . . . . 123
Impact of Demand Side Management Initiatives . . . . . . . . . . . 123
Volume Load Forecasting Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Volume Elasticity with GDP and Population . . . . . . . . . . . . . . . . . . 124

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

7.5.7.
7.5.8.
7.5.9.
7.5.10.
7.5.11.
7.6.

Electricity Volume Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

Zone Substation Load Forecasting Process . . . . . . . . . . . . . . . . . . 127
Forecast Demand at Zone Substations . . . . . . . . . . . . . . . . . . . . . . . . . 128
Impact of Uncertainties in the Forecasts . . . . . . . . . . . . . . . . . . . . . . . 128
The Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Impacts of Distributed Generation and
Non Network Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.6.1. Distributed Generation Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.6.2. Distributed Generation Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.6.3. Non Network Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.7. Acquisition of New Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.8. Subtransmission Development Plan . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.8.1. LTDP Preparation Process Zone Substations . . . . . . . . . . . . . 137
7.8.2. Grid Exit Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
7.8.3. Zone Substation Transformer Utilisation . . . . . . . . . . . . . . . . . . . . . . . 141
7.8.4. Transformer Utilisation and Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
7.8.5. Zone Substation Capacity and Security Levels . . . . . . . . . . . . . 147
7.8.6. Manawatu Network Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
7.8.7. Taranaki Network Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
7.8.8. Tauranga Network Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
7.8.9. Valley Network Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
7.8.10. Wairarapa Network Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
7.8.11. Wanganui Network Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
7.8.12. Fault Levels and Equipment Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
7.8.13. Summary of Subtransmission Network Development . . . . 161
7.9. Medium-Term Development Plan (Distribution) . . . . . . . . . 162
7.9.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
7.9.2. Medium-Term Development Planning Process . . . . . . . . . . . . . . 162
7.9.3. Distribution Network Upgrade Projects . . . . . . . . . . . . . . . . . . . . . . . . . 162
7.10. Reticulation Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
7.11. Implementing Development Projects . . . . . . . . . . . . . . . . . . . . . . . . 162
7.11.1. Resource Consent Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
7.11.2. Easement Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
7.12. Major Project Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
7.12.1. New Bethlehem Zone Substation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
7.12.2. Hatricks and Taupo Quay Zone Substation Upgrade . . . . . 163
7.12.3. New Pyes Pa Zone Substation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
7.12.4. New Omanu Zone Substation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
7.12.5. Browne St and Tower Rd Zone Substation Upgrades . . . . 165
7.12.6. New Sulphur Point Zone Substation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
7.12.7. Tauranga CBD Reinforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
7.12.8. Te Puke Subtransmission Upgrade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
7.12.9. New Katere Zone Substation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
7.12.10. New Paengaroa Zone Substation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
7.12.11. New Te Maunga Zone Substation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
7.12.12. Peat St Zone Substation Upgrade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
7.13. Network Development Project Summary . . . . . . . . . . . . . . . . . . 168

8. Network Development Plan

Performance Enhancement . . . . . . . . . . . . . . . 172

8.1.
8.2.
8.2.1.
8.2.2.
8.2.3.
8.2.4.
8.2.5.
8.2.6.
8.3.
8.3.1.
8.3.2.
8.3.3.
8.3.4.
8.4.
8.4.1.
8.5.
8.5.1.
8.5.2.
8.5.3.
8.5.4.
8.5.5.
8.5.6.
8.5.7.
8.6.
8.6.1.
8.6.2.
8.6.3.
8.6.4.
8.6.5.
8.6.6.
8.7.
8.8.
8.8.1.
8.8.2.
8.8.3.
8.8.4.
8.9.
8.9.1.
8.9.2.
8.9.3.
8.9.4.
8.9.5.
8.9.6.
8.9.7.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Reliability Planning Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Business Planning Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Reliability Performance Comparisons . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Reliability Road Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Reliability Performance Lagging Measures . . . . . . . . . . . . . . . . . 176
Reliability Performance Leading Measures . . . . . . . . . . . . . . . . . 176
Global Network Reliability vs Localised Reliability . . . . . . . . . 176
Automation - Reliability Improvement . . . . . . . . . . . . . . . . . . . . . . . 176
Automation Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Automation to be Applied at Zone Substations . . . . . . . . . . . . . 176
Automation to be Applied on Subtransmission
Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Automation on Distribution Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Regional Reliability Performance Review . . . . . . . . . . . . . . . . . . 177
Reliability Tactical Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Worst Performing Feeder Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Feeder Class F1 FIDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Feeder Class F2 FIDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Feeder Class F3 FIDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Feeder Class F4 FIDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
Feeder Class F5 FIDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Numbers of Customers per Feeder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
Reliability Actions Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
Protection and Control System Development Plan . . . 188
Protection Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
SCADA Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
SCADA Master Stations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Load-control Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Metering System Instrument Transformers . . . . . . . . . . . . . . . . . . . . 192
GXP Metering Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Streetlight Supply and Control Enhancement . . . . . . . . . . . 192
Environmental Enhancements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Strategic Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Environmental Site Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Sensitive Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Environmental Action List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Safety Enhancements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Health & Safety Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Network Incident Register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Red Pin Defect process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Zone Sub Integrity Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Switchgear replacements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
LV Switchgear and Pillar replacements . . . . . . . . . . . . . . . . . . . . . . . . 195
New Equipment Trials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

Return to Index

 8.10.
8.10.1.
8.10.2.
8.10.3.
8.10.4.
8.10.5.
8.10.6.
8.10.7.
8.11.
8.12.
8.12.1.
8.12.2.
8.12.3.
8.12.4.
8.12.5.
8.12.6.
8.12.7.

Smart Network Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

Smart Grid Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Consumer Information Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Drivers for Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
A Smart Grid Roadmap for Powerco . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Network Enhancement Project Summary . . . . . . . . . . . . . . . . . 199
Descriptions of Key Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Thames Coast to Manaia Link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Putaruru Second Circuit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Coroglen Kaimarama 110kV Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Miscellaneous Cable Installations and Links . . . . . . . . . . . . . . . . . 200
Miscellaneous Series 1 Switch Replacements . . . . . . . . . . . . . . 200
Coromandel Second Transformer Bank . . . . . . . . . . . . . . . . . . . . . . . . 200
Miscellaneous Noja installations and Recloser
Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
8.12.8. Miscellaneous Protection Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
8.12.9. Thames Second Subtransmission Circuit . . . . . . . . . . . . . . . . . . . . . 200
8.12.10. Whangamata Second Subtransmission Circuit . . . . . . . . . . . . . 200

9. FINANCIAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204

9.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204

9.2. Assumptions and Strategic Influences Underlying
the Expenditure Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
9.2.1. Background and Significant Assumptions . . . . . . . . . . . . . . . . . . . . 204
9.2.2. Strategic Influences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
9.2.3. Multiple Stakeholder Influences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
9.2.4. Forecast Accuracy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
9.3. Capital and Maintenance Expenditure Overview . . . . . . . 205
9.3.1. Expenditure Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
9.3.2. Key Asset Management Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
9.3.3. Relationship with Disclosed Expenditures . . . . . . . . . . . . . . . . . . . . . 207
9.4. Capital Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
9.4.1. Treatment of Uncertainty in the Capital Expenditure
Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
9.4.2. Impact of Expenditure Forecast on Network
Average Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
9.4.3. Customer Connection Capex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
9.4.3.1 Assumptions behind the Customer Connection
Capex Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
9.4.4. System Growth Capex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
9.4.4.1 Assumptions behind the System Growth Capex Forecast . . . 209
9.4.5. Reliability, Safety and Environment Capex . . . . . . . . . . . . . . . . . . . 209
9.4.5.1 Assumptions behind the Reliability, Safety and
Environment Capex Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
9.4.6. Asset Replacement and Renewal Capex . . . . . . . . . . . . . . . . . . . . . . 210

Return to Index

9.4.6.1
9.4.7.
9.4.7.1
9.4.8.
9.4.9.
9.5.
9.5.1.
9.5.2.
9.5.2.1
9.5.3.
9.5.3.1
9.5.4.
9.5.4.1
9.5.5.
9.5.5.1
9.5.6.
9.6.
9.6.1.

Assumptions behind the Asset Renewal Capex Forecast . . . . 210

Asset Relocation Capex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Assumptions behind the Asset Relocation Capex Forecast . 210
Forecast Capital Expenditures against Improvement
Register Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Status of Capital Programme Initiatives . . . . . . . . . . . . . . . . . . . . . . . . 212
Operational Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
Treatment of Uncertainty in the Operational Expenditure
Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Routine and Preventive Maintenance Opex . . . . . . . . . . . . . . . . . . 213
Assumptions behind the Routine and Preventive
Maintenance Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Refurbishment and Renewal Maintenance . . . . . . . . . . . . . . . . . . . 214
Assumptions behind the Refurbishment and Renewal
Maintenance Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Fault and Emergency Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Assumptions behind Fault and Emergency Maintenance
Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
System Management and Operations Expenditures . . . . . . 215
Assumptions behind System Management and
Operations Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Status of Maintenance Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Expenditure Forecast Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Summary of Changes from Previous Forecasts . . . . . . . . . . . . . 217

10. RISK MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218

10.1.
10.2.
10.2.1.
10.2.2.
10.2.3.
10.3.
10.3.1.
10.3.2.
10.3.3.
10.3.4.
10.3.5.
10.4.
10.4.1.
10.4.2.
10.4.3.
10.4.4.
10.4.5.
10.5.
10.5.1.
10.5.2.
10.5.3.
10.5.4.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Corporate Risk Management and Governance . . . . . . . . . 218
Audit and Risk Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Risk Management Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Risk Assessment Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Risk Management Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Risk Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Risk Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Risk Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Risk Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Monitoring and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Key Risk Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Operational Continuity and Customer Relations . . . . . . . . . . . . 219
Environmental Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Regulatory and Legal Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Contingency Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Electricity Supply Continuity Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Major Network Event Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
Substation Contingency Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Business Continuity Plans (Process, Information
Technology and Loss of Precinct) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
10.5.5. Pandemic Contingency Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222

10.6. Risk Management Application to Asset Management222

0.6.1. Risk Management Process: Review of
1
Maintenance Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
10.6.2. Risk Management Process: Design Overhead Lines . . . . . 223
10.6.3. Project Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
10.7. Conclusions from Asset Management Risk Analysis 224
10.7.1. General Network Risk Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
10.7.2. Eastern Region At-Risk Situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
10.7.3. Western Network At-Risk Situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

11. Asset Management Improvement. . . . 227

11.1.
11.2.
11.2.1.
11.2.2.
11.2.3.
11.2.4.
11.3.
11.3.1.
11.3.2.
11.3.3.
11.4.
11.4.1.
11.4.2.
11.5.
11.5.1.
11.5.2.
11.1.
11.2.
11.3.
11.4.
11.5.
11.6.
11.7.
11.8.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Review of AM Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Gap Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Commentary on the Gap Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
Constraints on Asset Management Process . . . . . . . . . . . . . . . . . . 229
Improvement Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Network Performance Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Maintenance Process Improvement Initiatives . . . . . . . . . . . . . 230
Summary of Improvement Initiatives Undertaken
in FY2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
Proposed Asset Management Advancement Projects230
Proposed Future Information System Projects . . . . . . . . . . . . . . 230
Human Resource Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
Asset Management Plan Improvements . . . . . . . . . . . . . . . . . . . . 231
Asset Management Plan Improvements . . . . . . . . . . . . . . . . . . . . . . . . 231
Planned Asset Management Plan Improvements . . . . . . . . . . 231
Framework Questions for Reference . . . . . . . . . . . . . . . . . . . . . . . . 241
B.3 Background and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
B.4 Details of Assets Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
B.5 Service Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
B.6 Capital Works Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
B.7 Maintenance Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
B.8 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
B.9 Performance Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

1.

EXECUTIVE SUMMARY

1.1.

Purpose of the Plan

Who wants what
from the assets?

The AMP is an important part of Powercos planning framework. It describes for

our customers, shareholders, staff and partners how we will manage our electricity
distribution network to meet the standards of reliability of electricity supply that our
customers demand and the commercial performance that our shareholders expect.
Importantly, this AMP sets out our plans for focussed investment in security, capacity
and reliability to address an ageing network, increasing demand for reliable electricity
supply and expenditure constrained below the level required to maintain reliability.

What is the state of the

assets?

Section 2
Define
Stakeholders
Define AM Drivers

Efficient and effective management of Powercos electricity network assets is critical to

the provision of an efficient service to our customers. With Powercos electricity network
assets ranging in age from new to more than 50 years old and ageing, effective longterm network planning is a fundamental requirement of their management. Powerco
continues to experience an Increasing Investment need as assets progressively reach
the ends of their useful lives. We also continue to experience growth on our network,
which in turn drives a need to invest in reinforcing and strengthening the core elements
of the network. Costs can be reduced via the adoption of new technology and by
ensuring effective and efficient capital delivery, however the scale of investment remains
significant.

Section 3
Describe Assets

What performance are

we targeting from the
assets? How are we
doing vs. the target?
What are the gaps?

How are we managing

the network and solving
any performance gaps?

What does this

mean for the works
programmes and
required expenditure?

How can we improve?

Section 4
Set Performance
Targets

Section 6
Set Asset
Lifecycle Strategy
Analyse Renewal
Needs

Section 6, 7
and 8
Develop Work
Programmes
Linked with AM
Driver

Section 11
Develop AM
Improvement
Initiatives

Section 5
Performance
Evaluation
Section 10
Analyse Network
Risks

1. Renewal and modernisation (see Section 6);

Figure 1.1: AMP Structure

2. Increasing the redundancy of the core network (see Section 7);

Developing this plan is a key step in ensuring that the needs of all stakeholders are
properly considered and incorporated into the long-term management strategies, and
that the plans provide, subject to any regulatory constraints, the optimum balance
between levels of service and the efficient costs to provide the required service.

3. Standardisation of systems and processes (see Section 11); and

4. Development of Smart Network (see Section 8).

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Section 9
Set Expenditure
Forecasts

Section 8
Reliability, Safety,
Environment
Enhancement
Needs
Protection
& Control,
Smart Network
Development

Within the context of restricted capital availability, Powerco has focussed its investment
programme on a range of strategies that have been confirmed as offering optimal
benefit to stakeholders. This plan contains these specific details on our short and
long-range planning for network development, renewal and maintenance and, more
particularly contains detail on the following electricity Asset Management-related
strategies:

In terms of structure, the AMP is a high-level document providing management and

stakeholders with a broad overview of Powercos Asset Management policies, asset
details, service levels, capital and maintenance works planning, expenditure forecasts,
risk management and performance evaluation. This AMP incorporates information from
a range of other internal documents. It sets out the performance criteria for the assets
and summarises the actions needed to achieve those performance criteria. Its structure
is shown in Figure 1.1.

Section 7
Security Criteria
Prepare Load
Forecasts
System Growth
Needs

1.2.

Period Covered
This Asset Management Plan covers a period of 10 years, beginning on 1 July 2010
and continuing to 2021. It replaces the April 2009 Asset Management Plan. The main
focus of analysis is the first three to five years, for which plans are generally firm.
Beyond five years, general forecasts are made and reviewed annually. Expenditure
forecasts cover a 10-year period from FY2011 to FY2021. In some instances, it is
necessary to have longer- term (out to 20 years) plans to provide the context needed
for the AMP planning periods. The Asset Management Plan was approved by the
Powerco Board in March 2010.

Return to Index

1.3.

Asset Management Stakeholders

The key stakeholders are:
Powercos customers (which include Energy Retailers and End-Use Consumers),
are the people, organisations and businesses that rely on Powerco for the delivery of
electricity.
Powercos owners and lenders wish to see that their financial returns are
commensurate with the risk of their investment.

Customers/
Consumers

Service/Price Safety Load

Growth

Government &
Regulator

Economic Efficiency
(Long-Term Interest of Consumers)
Environmental Safety & Compliance

Powercos employees wish to have safe, challenging and varied careers, and make a
contribution to NewZealand and NewZealanders.

1.4.

Asset Management Drivers

The high-level objectives of Asset Management and the key driver inputs into the Asset
Management process are outlined in Section 2. Figure 1.2 illustrates the relationship
between the main stakeholders, their drivers, the underlying investment drivers for the
assets and the Asset Management process.

Safety Workflow Certainty

Market Costs

Development, Renewal,
Maintenance, Operation
Asset Performance Asset age/condition

Assets

Figure 1.2: The Asset Management Driver Overview.

Network Spend

Other stakeholders with an interest in Powercos Asset Management include the public
over whose land the distribution network is built, the electricity industry, and any local
and central government authorities that have jurisdiction over Powercos activities.

Long Term Value

(Productivity & Utilisation)
Risk Management

Asset Management Process

The industry regulators having jurisdiction over Powercos activities include the
Ministry of Economic Development and the Electricity Commission.
Territorial local authorities have an interest in Powercos activities arising through the
Resource Management Act.

Employees &
Contractors

Business Planning Process

Powercos contractors require having a sustainable and long-term relationship with

Powerco. The contractors should be productive and efficient.
The economic regulator is the Commerce Commission.

Owners & Lenders

Long-term
Shareholder
value
Regulated Revenue
Productivity
Utilisation
O&M

Indirect Costs

Development
Market Costs
For Work

Renewal
Environmental
Asset Age,
Condition &
Configuration

Service

Load
Growth

Risk
Mgmt

Safety

Time
Asset Management Process

Figure 1.3: Illustration of the Influence of Asset Management Drivers

Figure 1.3 illustrates the influences of the various drivers on the total expenditure of the
network over time.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

1. Ageing Network: Sections 3.5 3.10;

Manual Filing
System
Asset
Condition
Analysis

2. Worsening Reliability: Section 4.2;

3. Load Growth: Section 7.5.
The need for increased expenditure to replace assets was confirmed by independent
consultants Farrier Swier Consulting in its report to the Commerce Commission on
electricity distribution network asset management. Farrier Swier found that Powerco
may need to increase renewal expenditure in the period 2009 to 2014 by 27% (to $30
million in 2012) and, 2014 to 2019 by 71% (to $44 million in 2017).
1.5.

Balancing Constraints, Asset Management Drivers and Conflicting

Stakeholder Needs
At a strategy level, constraints, Asset Management drivers and the needs and interests
of various stakeholders are evaluated and considered as part of the corporate planning
process and these are applied during the network planning process. For instance, at
a strategy level, the need to increase investment to manage an ageing network, load
growth and worsening reliability has to be balanced against the revenue that Powerco
is allowed to earn under the current default price path and investors (debt and equity)
expectations of earning risk adjusted returns on their investment. Figures 1 and 2 of the
Chief Executives statement highlight the magnitude of investment needed in the network
to renew an increasingly ageing network and increase the security of the core network.
At a tactical and operational level in the network planning process, the investment
policy and asset strategy shapes and is shaped by Powercos multi-stakeholder
assessment process. This process is a key part of the way in which network
development and renewal programmes are formed. At its core, the process is one
of optimisation where the portfolio of projects is evaluated and then optimised to
form programmes of work that offer the best benefit to stakeholders within available
expenditure allowances.

AMPs

Gate Keeper (Planning Team)

As alluded to above and in the Chief Executives Statement, three drivers are worthy
of particular mention: (1) An ageing network (notwithstanding significantly increased
investment), (2) deteriorating service (in particular worsening reliability) and (3) load
growth, which has eroded redundancy in the core (backbone) network. These drivers
are discussed in more detail in the following sections:

Works Plan

Improvement
Register
Database

Field Input

Automated population of Coin

Issue
Consultation

Coin Scoring
System based
on predifined
budget

Budget gets
confirmed or
changed

Reporting

Work Plan

NPAM
Create
Templates
automatically
for final
works plan

Initial Priority of high to cut to

120% of budget then use Coin
prioritisation to cut to 100% of
budget and EXP Draft Plan.

Budget only gets confirmed after

Draft Plan was sent out. Should
it change the priortisation needs
to be run again.

Figure 1.4: Network Works Programme Optimisation Process

Figure 1.4 provides a more detailed outline of the multi-stakeholder analysis used to
develop optimised investment programmes. The primary objectives of the optimisation
process are:
To provide a consistent approach to the development of capital works programmes
that balances (potentially conflicting) stakeholder requirements.
To eliminate (or mitigate) any high risks to public safety, network performance,
customer outcomes, public relations, or employee engagement.
To maximise the strategic value of the portfolio of projects that make up the capital
works programme.
Potential projects are entered into the Improvement Register, which is essentially
a database. The projects come from various sources, such as internal Asset
Management plans or project ideas from the field. Projects are scored against 14
different strategic value criteria, each of which comes under four strategic themes,
and the projects considered for go/no go under a combination of budget and risk
profile constraints. Projects that have a high strategic value pass into the annual works

10

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

programme. Those that have a lesser strategic value are deferred to future years. The
system has reporting tools for producing Works Plan reports and Project Approval
documentation (NPAM).
1.6.

Asset Management Information Systems

Given Powercos history of growth and acquisition, standardisation of systems and
processes are key strengths of Powercos employees and this has been a significant
focus for management over recent years. A range of Asset Management information
systems have been implemented at Powerco to support the Asset Management
processes, including the following systems that Powerco considers to be core:
GIS is our key system for storage of spatial network data;
JDE is our key system for works and financial management; and
SCADA is our key system for real time operation and control of the network.
A number of significant data and system standardisation projects are currently being
undertaken to enhance this core capability. These projects are summarised below:
The centralisation of asset location and attributed data into the GIS. A key goal
of the systems management is to make the GIS system the master for all spatial
data. This involves the synchronisation of information from ENS and other ancillary
databases;
Normalisation of naming and coding conventions for asset and network sites in all
core systems to minimise discrepancies;
Updating and redrawing critical zone substation schematics and protection
diagrams;
Integration between network modelling software applications (Synergy and PSS
Sincal) and network data contained in GIS. This will significantly minimise the
amount of rework and inaccuracies introduced in maintaining independent datasets;
The completion of the GIS Network connectivity project will improve the consistency
and completeness of critical network hierarchy and topology, especially in the highvoltage network, which will benefit all dependent systems;
Migration of Western SCADA to a common Master Station platform;
A project has recently been completed to reduce the backlog of as-built drawings
awaiting input in the GIS to an acceptable level; and
The continued refinement of Powercos maintenance management system (GEM)
including the progressive rollout of field automation (SPA).
Future network information improvement would result from a rolling audit of network
data from the field to gather information, like the size of a conductor and location of
street lights.

1.7.

Service Provision
Powerco has developed a service provision strategy to set the long-term direction for
the management of construction and maintenance activities in line with its business
model and corporate objectives. This strategy has been designed to deliver long term
productivity gains and maximise design innovation. The strategy was developed in 2004
and has resulted in a move to outsourcing detailed design and (capital and operational)
field work via alliance and patch based contracts.
The delivery strategy uses competitive market principles to deliver sustainable
improvements in the cost, quality and safety of construction and maintenance services
on the electricity and gas networks. These include:
Facilitating Service Provider resources with expertise matched to the work
requirement in the locations required;
Maximising the Service Providers control over the inputs to its services to allow it to
meet the service performance level;
Utilising competitive tension to encourage continuous improvement in the cost of the
delivered service;
Minimising the level of management of Service Providers while ensuring appropriate
control is maintained to deliver the desired service outcome;
Maintaining a high level of safety performance by Service Providers; and
Fairly allocating risk between Powerco and the Service Provider.
The strategy is underpinned by a series of guiding principles has been developed to
provide greater detail on how the service provision strategy can be achieved. The service
provision principles cover:
Facilitation of resources to meet Powercos needs;
Delegation of responsibility to Service Providers;
Utilising competitive tension to improve productivity and innovation;
Optimising the level of Service Provider management; and
The allocation, communication and recognition of risk.
Powercos Service Delivery strategy has delivered strong improvements in works
completion performance. It is currently being reviewed to ensure that the arrangements
are able to demonstrate to all stakeholders that capital and maintenance costs are
efficient.
As part of Powercos process to validate delivery efficiency, about 5% ($6m) of additional
capital work (primarily pole replacement work) is being tendered in FY10. This is being
done to provide benchmark data which is particularly important given the age and
renewal profile of Powercos overhead lines.

The Asset Management information systems are described in more detail in Section 2.8.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

11

1.8.

Assets Covered

Electricity Network Replacement Cost by Asset Type

900
800
700
600
$million

Powerco owns and operates extensive urban and rural electricity distribution networks
servicing around 310,000 customers in the North Island of NewZealand. It has
extensive urban and rural networks serving Taranaki, Wanganui, Rangitikei, Manawatu,
Tararua, Wairarapa, the western Bay of Plenty, Coromandel and Thames Valley south to
Tokoroa.
Table 1.1: Key Network Statistics
Key Network Statistics as at 31 March 2009

Number of ICPs
System Length (km)
Regulatory Value of System Fixed Assets (31
March 2009)
Energy Conveyed
System Coincident Maximum Demand

Total

Eastern

Western

315,379

143,493

171,886

29,274

10,998

4,507GWh

2,224GWh

2,283GWh

764MW

379MW

394MW

This plan concerns Powercos electricity network assets. These include all network
fixed assets, subtransmission network, zone substations, high-voltage distribution
networks, distribution substations, switchgear and transformers, low-voltage (LV)
distribution networks including consumer service connections, protection, SCADA, load
control injection systems, stores and spares and communication systems. Excluded
from the network assets are land and buildings, except zone substation land and
buildings, most consumer revenue meters and most load control relays, which are
currently owned by Energy Retailers, non-network fixed assets such as motor vehicles,
furniture and office equipment, plant, tools, and net financial assets.

400
300
200
100

18,276

$1,185m

500

0
Overhead Line

Underground Cable

Distribution Switchgear

Zone Substations

SCADA/Comms/Ripple

Spares (Emergency & Critical)

Distribution Transformers

Figure 1.5: Electricity Network Asset Replacement Cost by Asset Type.

Figure 1.5 shows the composition of the network by the replacements costs of each
asset type.
The network comprises a sub-transmission network, mostly 33kV but with some 66kV,
supplying 111 zone or switching substations. These are mostly 33/11kV, but a few are
33/6.6kV or 66/11kV. Some supply 22kV from 11/22kV transformers. A radial feeder
network runs from the zone substations throughout the service area. Zone substation
transformer capacities range from 1.25MVA to 24MVA.
The majority of the networks are of overhead construction, on wooden or concrete
poles, but there are some cabled routes or sections of routes. Short lengths of 33kV
cable are used at some zone substations.
The 11kV networks in the Tauranga, New Plymouth, Wanganui, Palmerston North and
Masterton central business districts consist of highly interconnected radial feeders. The
400V networks consist of radial circuits with a high degree of interconnection.
Both distribution voltage and 400V urban distribution networks are interconnected
radial systems. The level of interconnection is moderate, commensurate with
reliability requirements. The network configuration for large industrial consumers is
commensurate with the nature of the consumers operation and capacity demand.
The rural network consists mainly of distribution voltage networks with isolators
installed every few kilometres. Some interconnection between feeders is present to
allow backfeeding in maintenance and fault situations. Typically, around 70-80% of the
feeder load can be supplied by backfeeding from adjacent feeders.

12

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

The condition of all infrastructure assets is maintained to a level commensurate with

the nature of the asset, the environmental conditions and the consumers reliability
requirements. Table 1.2 summarises the average standard life and average age for different
asset categories. An average standard life is given for each asset category because there
are assets with different standard lives included in the general asset categories.
Table 1.2: Average Age of Assets
Average Age at
30/06/06

Average Design Life

(Weighted by Cost)

(Weighted by Cost) [1]

Overhead Line

57.16

30.32

Underground Cable

49.29

22.07

Distribution Transformer

55.00

24.80

Subtransmission and Distribution Switchgear

37.24

17.92

Zone Substation Assets

45.86

27.45

Asset Category

Total Asset Replacement Cost vs Age

110,000

Performance Level Objectives

The AMP recognises that a trade-off exists in the Asset Management process between
performance, cost and risk. By minimising the costs of the assets, the asset manager
may compromise on asset performance and asset risk; by minimising the asset risk,
service performance and cost may be compromised.
The target levels of service chosen in this plan are based on a combination of past
practice, consultation with customer and consumer groups, economic factors,
recognised international best practice, legal obligations and safety considerations.
Powerco seeks to achieve a balance between legislative, regulatory, owner/financier
requirements and consumer expectations in setting these performance criteria. The
levels of service adopted by Powerco for its Asset Management Plan are based on
the internationally recognised measurements, SAIDI, SAIFI, and CAIDI, and accepted
NewZealand lines companies best practice.
The customer consultation process has been an important part in the selection of
appropriate supply reliability targets. This consultation process is continuing and is
confirming that the consumers needs will be satisfied if Powerco meets its Service
Performance targets. Service Performance is defined as:
Delivery of electricity line function services to meet consumer load requirements within
targeted quality and reliability limits.

100,000
90,000
Replacement Cost ($000)

1.9.

80,000

Table 1.3: Reliability Performance Targets

70,000
60,000
50,000

Target

40,000

SAIFI (B+C)

SAIDI (B+C)

CAIDI (B+C)

2.56

170

66

Note: (B + C) refers to total distributor reliability, including planned outages (class B) and unplanned
outages (class C).

30,000
20,000
10,000
0
0

10

15

20

25

30

35

40

45

50

55

60

65

ODL

Age (Years)
Transformers

Switchgear

Transformers

Underground

The balance between service and economic efficiency (asset investment/utilisation

and maintenance and operating costs) needs to be considered in Asset Management
decision-making. Table 1.4 sets out some of the expenditure-related targets.

Overhead

Figure 1.6: Total Asset Age Profile

The age profile for the entire infrastructure asset base, presented as a nine-year moving
average, is given in Figure 1.6 above. Costs represent Powercos estimate of actual
replacement cost for brownfield construction at scales typical of actual anticipated
levels. It is noted that these rates are higher than the ODV replacement costs.
While it is practical that longer-term renewal forecasts of the type above are made on
the basis of age profiles, actual commitment to renewal projects (used for near-term
forecasting) is based on the condition of the assets rather than their age.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

13

Table 1.4: Expenditure Performance Targets

Asset Management Driver: Economic Efficiency, Risk Management & Long-Term Value
FY2010 B

FY2011 F

FY2012 F

FY2013 F

FY2014 F

1,197

1,186

1,196

1,209

1,211

Direct Cost per Asset Base (RC) (%)

1.96%

1.97%

2.00%

2.04%

2.07%

Maintenance Expenditure per Asset

Base (RC) (%)

1.50%

1.49%

1.52%

1.55%

1.57%

Capital Expenditure per Asset Base

(%)

4.31%

4.87%

5.06%

5.26%

5.34%

Renewal Expenditure per

Depreciation (%)

59.4%

57.6%

74.1%

81.3%

89.2%

803

850

872

894

855

Powerco is efficient in terms of its spend when compared to other electricity

distributors. For instance, Powercos operating expenditure is below average and its
average revenue is close to average.

Significant Impacts on SAIDI

Opex $ / ICP

6.3

880

4.8

673

Average

6.1

916

4.5

680

Medium

6.0

927

4.4

690

Minimum

4.2

442

3.3

336

Maximum

10.4

1,612

8.8

1,346

1.10. Performance Measurement, Evaluation and Improvement

Overall network reliability performance, as measured by SAIDI, was above Powercos
internal target (unfavourable) in 2009. The SAIFI index was slightly above target
(unfavourable), as shown in Table 1.5.

14

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Loss
Whangamata
Sub

10

L2 Storm
Event
Wairarapa
& Taranaki

Storm Event
Tauranga
Region

31/03/2009

Powerco

20

3/03/2009

Distribution
Revenue $/ICP

17/03/2009

Distribution
Revenue c/kWH

3/02/2009

Gross Line
Revenue $/ICP

L2 Storm Event
Valley &
Tauranga Region

Whangamata Outage
Bunnythorpe Outage

17/02/2009

Gross Line
Revenue c/kWh

Loss Waihi,
Waihi Beach &
Whangamata Sub

30

6/01/2009

587

20/01/2009

113

7,583

9/12/2008

1,233

4.96

23/12/2008

1.77

Maximum

Transpower Loss
Tauranga Region

Manawatu & Taihape

Wind & Rain Storm

25/11/2008

Minimum

Valley Region
Wind & Rain Storm

40

11/11/2008

269

28/10/2008

2,579

14/10/2008

3.17

30/09/2008

Medium

2/09/2008

211

16/09/2008

2,801

5/08/2008

2.81

19/08/2008

Average

50

8/07/2008

185

22/07/2008

1,988

24/06/2008

2.51

10/06/2008

Powerco

27/05/2008

Opex $ / km

13/05/2008

Opex $ % of RAB

29/04/2008

With the oncoming wave of renewal needed, it is expected that reliability performance
will worsen unless renewal activity is able to keep up. The overhead line age profile
indicates that the average age of overhead line assets is increasing. To a certain
extent, it will be possible to mask this impact through implementation of automation,
more fuses, reclosers and sectionalisation (although this may see a rise in momentary
outages), but in the main it will be necessary to address this through increased levels of
renewal activity.

1/04/2008

Growth Expenditure per Change in

Transformer Capacity ($/kVA)

The historical reliability performance pattern indicates a continuing theme of slightly

greater than target faults per unit of HV line (which is consistent with an ageing
network), leading to slightly greater than target numbers of interruptions and SAIFI. The
actual CAIDI is rather higher than target, caused in part by the lack of back-up supply
routes and difficulty of access in some parts of the network.

15/04/2008

Direct Cost per km of line ($/km)

SAIDI Mins

KPI Description

Powercos reliability performance to 31 March 2009 was adversely affected by storms

(July 2008 affecting the Valley and Manawatu networks, and some Grid Exit Point
events). Excluding these storms, the performance was only somewhat adverse when
compared with the target.

Figure 1.7: SAIDI Performance over Time to March 2009

Powercos 2009 reliability performance is summarised in Table 1.5. In overview, the

SAIDI performance is adversely affected by the number of faults and the ability to
restore supply quickly to most customers following faults. A focus on renewal and
greater levels of network automation is being taken as a result.

Return to Index

Table 1.5: Powerco Reliability Performance Summary

Table 1.6: Expenditure Comparison with FY2009 AMP ($000)

Powerco Actual
2009

Powerco Actual
excl storms
2009

Powerco Target
2009

Development

Renewal

Ops. & Maint.

Total

FY2009 AMP Actual

58,279

24,297

24,396

106,972

170

FY2009 AMP Budget

49,308

23,513

23,245

96,067

2.61

2.56

Variance

(18%)

(3%)

(5%)

(11%)

75.5

66.4

Performance Measure

Unit

SAIDI (B+C)

Minutes per Customer

320

197

SAIFI (B+C)

Interruptions per Customer

2.76

CAIDI (B+C)

Minutes per Interruption

116

Actual and Forecast SAIDI Reliability

Improvement due to
increase in spend due to
CPI-0% threshold change

300

Deterioriating reliability due

to regulation constaining
expenditure (reduced)

Improvement due to
increased work done
for same money

250
200

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

100

2004

150

2003

SAIDI (Class B+C) minutes

350

Year
(Ending March)

Forecast Reliability (Apr-09 AMP Spend)

Actual Reliability (excl. storms)

Forecast Reliability (Apr-10 AMP Spend)

Forecast Reliability (Apr-10 AMP + 5% more work)

Actual Reliability (incl. storms)

Regulatory Threshold

Target Reliability (AMP)

Forecast Reliability (based on IR Spend)

Figure 1.8: Actual and Anticipated SAIDI Performance

As can be seen in the 2009 performance and the historic trend, reliability has been
worsening and the risk of breaching our reliability standards has materially increased.
This issue is illustrated in Figure 1.8 where there is a widening gap between target
(green line) and forecast performance (the blue bars). Minimising the risk to reliability is
a key strategy for Asset Management and is discussed further below.
Powercos asset efficiency performance of $2,979 ODRC/ICP compares favourably
against the industry average of $4,613/ICP and favourably against target. However,
with the increasing expectations from the community in supply reliability and quality,
particularly from the dairy farming industry, as well as general expectations on
environmental impact, it is expected that network investment per ICP will necessarily
have to increase in the longer term.

Return to Index

The Development Expenditure variance was due to greater than forecast levels of
subdivision activity, customer connections and third party asset relocations. Salient
features of this work included major residential and industrial subdivisions around Pyes
Pa and Papamoa; the conversion of large areas of South Waikato forestry land to dairy;
Transit work at Mt Maunganui and Bell Block; upgrades of Waharoa zone substation
due to industrial expansion; and irrigation activity in the lower Rangitikei area. During
the year, a significant value of additional scheduled development projects were added
to the works program in the Western region. These included 400V underground
development projects in Palmerston North, and an increase in the scope of Katere
substation in Taranaki. In the Eastern region there was additional carry over work (non
budgeted) from the prior year plan completed.
For network renewal, although some projects were deferred to release funds for
development projects, unbudgeted reactive renewal resulted in an overall above budget
result. Key drivers of this result include the following; Main Street Zone substation
rebuild in Palmerston North, extra renewal work on the 66kV network into the
Coromandel and significant storm events across the Powerco footprint at the end of
July and across the Wairarapa and Taranaki regions in October.
The key driver for the over budget operational expenditure related to ongoing corrective
network defects, mostly on the overhead network and particularly in the Eastern region.
1.11. Ongoing Growth in Electricity Demand and Throughput
In the April 2009 edition of the AMP, we identified that if the recession caused growth in
volume and maximum demand to be significantly less than forecast, then there would
probably be a reduction in development expenditure (customer-specific and general
network development expenditure). As the recession (and the global financial crisis) had
little impact on growth, the expenditure reductions foreshadowed in the 2009 edition
of the AMP will not be occurring. Further, this continued growth has continued to eat
into the redundancy in Powercos core network. Currently, the level of zone substation
utilisation is about 57%. Without investment in zone substation capacity utilisation
will increase to about 64% in 2014. To increase zone substation capacity, we have
identified the potential for 17 zone substations to be built and 20 additional transformer
banks to be installed at existing substations over the next 10 years. To maintain current
zone substation utilisation levels of 57%, at least a third of the projects need to be
implemented. Following is a table that shows our current forecast growth rates and
compares to our mid-point recession growth rates:

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

15

An outcome of this process has illustrated the magnitude of the investment needed in
the network to renew an increasingly ageing network and increase the security of the
core network is significant. Based on our analysis, a further $17m of annual expenditure
is necessary to reduce the risk to reliability to an acceptable level.

1.5

2.5

2.5

2.5

2.5

Western Region (medium

recession scenario)

0.67

0.67

1.0

1.0

1.0

1.0

1.12. Maintenance, Renewal and Development Plans

This AMP describes the life cycle management perspectives for renewal and
maintenance strategy management in Section 6, development (system growth) in
Section 7 and performance improvement measures in Section 8.
Powercos maintenance and renewal policy is based on balancing the cost of repair
and replacement against the consequences of failure. The maintenance and renewal
planning process determines the most cost-effective method for reducing the risk of the
asset not achieving the required performance level. This is a key focus for the business,
given the risk to reliability presented above.
Powercos maintenance and renewal comprises:
Routine inspections and condition monitoring;
Routine servicing;
Evaluation of inspection and condition monitoring results to determine maintenance
and renewal requirements;
Evaluating faults to predict maintenance and renewal requirements; and
Performing maintenance (repairs, refurbishment or renewal).
The decision to continue to maintain an asset or to renew it is made considering
the ongoing costs of maintaining the existing assets vs. the cost of renewing the
asset, including the risks of not meeting performance requirements in each case.
Individual asset life cycle plans are presented for each asset type, along with plans for
maintenance and renewal of the network assets.

16

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Network Average Age and Forecast Capex

$140

31

$120

30

$100

29

$80

28

$60

27

$40

26

$20

25

$0

24

Total Capex

Average Network Age

Average Age

1.5

2020

1.25

2021

1.25

2019

1.25

2018

1.25

2017

1.25

2016

1.25

2015

Western Region (Model)

Eastern Region (medium
recession scenario)

2014

2.50

2013

2015

2.50

2012

2014

2.50

2011

2013

2.25

2010

2012

1.75

2009

2011

1.25

2007

2010

Eastern Region (Model)

2008

Assumption

2006

kWh Growth forecast (Electricity Only)

Total Capex ($m)

Table 1.7: Electricity Volume Forecast

Year (ending June)

Figure 1.9: Network Age and Forecast Capex

Consistent with this (as evidenced above), the risk to reliability is increasing and, as a
result, we are increasing our focus on the replacement and modernisation of the network.
Development of the subtransmission network, distribution network and 400V
distribution network over the planning period is determined from the asset management
drivers, planning criteria and forecast load growth. Where drivers or planning criteria are
not satisfied, development options are evaluated and programmed. Development plans
have been prepared for the long- and medium-term planning periods.
The Maintenance, Renewal and Development planning analysis indicates that Powerco
could be spending approximately $17m per year - more than it is forecasting on
network development and network renewal respectively. That is, if the regulatory
environment were more amenable towards investment, Powerco could justifiably be
spending this much more.

Return to Index

1.13. Smart Networks

Powerco has for many years been adopting Smart Grid technology (albeit under the
name of automation). Becoming a Smart Network is an addition to this AMP. The
aims of Smart Networks include self-healing networks and networks that can shift
load from peak times to reduce peak demand growth. Smart Networks are something
that regulators in many countries are now paying greater attention to because they
are perceived to offer improvements in performance to customers. Well thought out
and implemented Smart Grid technologies offer exciting performance benefits. Smart
Network technologies also fit well with our business plan objectives of improving
reliability through automated solutions and managing increasing investment profiles
through non-asset solutions. The 2010 AMP sets out initiatives that are consistent with
the ESRI and Energy Networks Australia visions of smart networks.
1.14. Expenditure Forecasts

The process of deriving expenditure forecasts is an iterative one that seeks to optimise
the performance and risk levels in the network within these competing constraints
(refer Section 4.1). In particular, projected network expenditure needs to be given
consideration within the context of the revenue allowed by regulatory regime and
Powercos mandate of delivering long-term sustainable earnings and interest payments
to its capital providers.
The programme of work for a given period is passed through the Multi-Stakeholder
Prioritisation process (refer to Section 2.6). With this process, the strategic values
and risks associated with each potential project are weighed against their associated
dollar spend, and a decision can be made on the best projects to include in a work
programme given a certain budget constraint.
The forecast expenditure, including development, renewal and maintenance, over the
planning period, is given in Tables 1.10 to 1.12.

The network expenditure forecasts detail the development, renewal and maintenance
expenditure to:
Maintain levels of service performance for the assets;
Develop the assets to meet the new and future load growth; and
Improve service performance where the service standards are not being met.
As already mentioned, a key focus of this AMP is on reducing the risk to adverse
reliability performance (from the failure of ageing assets or the loss of redundancy
in the core network due to load growth). Hence, to further support our key works
programmes, overall expenditure has been increased by an average of $17m per
annum. The increase in expenditure has been made possible by the increase in
allowable revenue under the Default Price Path (that regulates Powercos revenue)
effective from 1 April 2010.
Powercos network expenditure forecasts are developed from the bottom up and
the top down. Working from the bottom up, expenditure forecasts are developed
in conjunction with our multi-stakeholder portfolio optimisation planning process,
taking into consideration the age and condition of existing assets, targeted reliability
and security standards, projected growth rates, the current regulatory constraints on
expenditure, and the performance expectations of the companys owners. Working
from the top down (which are compared with the bottom-up forecasts), the expenditure
forecasts comprise the previous AMP expenditure forecast, adjusted for actual CPI
change, with adjustment for specific issues noted and agreed to by key stakeholders
during the previous year. Generally, the adjustments to the expenditure forecasts have
been upwardly trending. There have been several reviews of the forecasts driven from
the asset planning processes.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

17

Table 1.10: Expenditure Summary Forecast

Total Expenditure Forecast ($000) (Nominal $ Values)

Expenditure Category

FY 2006 A

FY 2007 A

FY 2008 A

FY 2009 A

FY 2010 B

FY 2011 F

FY 2012 F

FY 2013 F

FY 2014 F

FY 2015 F

FY 2016 F

FY 2017 F

FY 2018 F

FY 2019 F

FY 2020 F

FY 2021 F

Operational Expenditure

28,118

28,580

32,045

30,364

33,826

35,953

37,152

38,460

38,947

39,756

40,580

41,421

42,279

43,153

44,046

45,015

Capital Expenditure

61,851

61,293

72,920

82,797

76,469

83,870

87,080

90,545

91,989

93,708

99,581

106,002

112,601

119,811

127,699

136,335

Total

89,969

89,873 104,964 113,161 110,295 119,823 124,232 129,005

130,936

133,464

140,162

147,423

154,879

162,965

171,744

181,349

Table1.11: Capital Expenditure Summary by Work Category

Capital Expenditure Forecast ($,000) (Nominal $ Values)

Expenditure Category

FY 2006 A

FY 2007 A

FY 2008 A

FY 2009 A

FY 2010 B

FY 2011 F

FY 2012 F

FY 2013 F

FY 2014 F

FY 2015 F

FY 2016 F

FY 2017 F

FY 2018 F

FY 2019 F

FY 2020 F

FY 2021 F

Customer Connection

23,714

22,076

29,144

29,023

18,366

19,860

18,919

18,141

17,123

16,262

16,620

16,985

17,359

17,741

18,131

18,530

System Growth

11,563

14,472

15,951

18,853

22,474

23,796

24,411

25,023

23,940

22,787

23,288

23,801

24,324

24,859

25,406

25,965

Reliability, Safety and Environment

7,413

8,128

8,961

10,986

10,845

13,567

14,281

15,042

15,202

15,399

16,309

17,302

18,323

19,436

20,652

21,980

Asset Replacement and Renewal

16,526

14,164

15,626

20,710

21,177

24,441

27,131

30,098

33,390

37,043

41,098

45,597

50,227

55,355

61,037

67,333

2,635

2,453

3,238

3,225

1,422

2,207

2,338

2,242

2,335

2,218

2,266

2,316

2,367

2,419

2,472

2,527

61,851

61,293

72,920

82,797

74,285

83,870

87,080

90,545

91,989

93,708

99,581

106,002

112,601

119,811

127,699

136,335

Asset Relocations
Total

Table 1.12: Operational Expenditure Summary by Work Type

Operational Expenditure Forecast ($000) (Nominal $ Values)

Expenditure Category

System Management & Operations

FY 2006 A

FY 2007 A

FY 2008 A

FY 2009 A

FY 2010 B

FY 2011 F

FY 2012 F

FY 2013 F

FY 2014 F

FY 2015 F

FY 2016 F

FY 2017 F

FY 2018 F

FY 2019 F

FY 2020 F

FY 2021 F

6,654

6,750

7,627

5,968

8,026

10,351

11,041

11,760

11,920

12,120

12,336

12,556

12,778

13,004

13,233

13,524

Routine & Preventive Maintenance

9,427

9,901

11,510

10,394

11,800

11,521

11,750

12,015

12,162

12,436

12,710

12,989

13,275

13,567

13,866

14,171

Refurbishment & Renewal Maintenance

7,683

7,615

6,918

8,938

8,921

7,680

7,833

8,010

8,108

8,291

8,473

8,660

8,850

9,045

9,244

9,447

Fault & Emergency Maintenance

Total

4,353

4,314

5,990

5,064

5,079

6,400

6,528

6,675

6,757

6,909

7,061

7,216

7,375

7,537

7,703

7,873

28,118

28,580

32,045

30,364

33,826

35,953

37,152

38,460

38,947

39,756

40,580

41,421

42,279

43,153

44,046

45,015

Note: The year refers to financial year end 30 June. The expenditure has been stated in nominal terms.

18

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

The development expenditure forecasts are driven from the need to keep up with the
levels of growth in electricity demand across the network. The renewal expenditure
forecasts have been dictated by the appropriate recognition of the actual cost of
renewing assets.
Summary tables of capital work are provided in Sections 6, 7 and 8 that link the
capital work to an Asset Strategy theme, outline project options and reference back to
sections of the AMP that justify their need.

1.16. Advanced Asset Management

Powerco has demonstrated strong capability in our Asset Management processes
compared with our peers in NZ. However, when compared against Australian utilities,
which have been regulated for significantly longer, our processes and systems compare
less favourably. Accordingly, in Section 11 we assess our current capabilities (strengths
and weaknesses) and identify the improvements that we are working on.

The key change to the expenditure forecasts over those presented in the April 2009
AMP is the 10% increase in capital expenditure (other than Customer Connection and
Asset Relocation expenditure), which will be focussed on increasing security, capacity
and reliability. The increase in expenditure has been made possible by the outcome of
the Default Price Path (which regulates Powercos revenue) effective from 1 April 2010.
For the past six years Powercos prices reduced 2% per annum in real terms. The new
Default Price Path allows Powerco to maintain its prices in real terms. System Growth,
Reliability, Safety and Environment and Asset Renewal and Refurbishment capital
expenditures have been increased by 10% on account of the improvement in regulatory
revenue threshold from CPI-2% to CPI-0%.
As articulated above, the constraint on further network investment (to minimise reliability
risk) is the current uncertainty around the future regulatory regime. We look forward
to the conclusion of the current regulatory development process to provide greater
certainty to increase our investment further.
1.15. Risk Management
Risk Management analysis and risk tables are presented in Section 10. This presents
the risks under headings as follows:
Operational Continuity and Customer Relations;
Environmental Management;
Regulatory and Legal Compliance;
Finance; and
Health and Safety;
Powercos contingency plans are described and these include:
Electricity Supply Continuity Plan;
Major Network Event Procedures;
Substation Contingency Plans;
Business Continuity Plans (Process, Information Technology and Loss of Precinct);
and
Pandemic Contingency Plans.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

19

2.

Background and Objectives

2.1.

About Powerco

2.1.1.

Overview and Historical Context

In November 2005, Powerco sold its NewZealand field service contracting businesses
to Tenix Alliance. In NewZealand, Powerco contracts a large portion of its field services
from Tenix under an open-book alliance arrangement.

Powerco is a utility network ownership and management business and is

NewZealands largest provincial distributor of electricity and gas, with around 400,000
consumers connected to its networks. Powercos electricity networks are in Tauranga,
Thames, Coromandel, Eastern and Southern Waikato, Taranaki, Wanganui, Rangitikei,
Manawatu and Wairarapa. Its gas pipeline networks are in Hutt Valley, Porirua,
Wellington, Horowhenua, Manawatu, Taranaki and Hawkes Bay.
From the mid-1990s until the early 2000s, Powerco grew significantly through mergers
and acquisitions to its current position as NewZealands second largest electricity
and gas distribution utility. In March 2000, Mergeco (renamed Powerco in September
2000) was incorporated, and in September 2000, acquired the energy distribution
undertakings of the former Powerco Limited and CentralPower Limited (and, as such,
has never had any obligations under the Energy Companies Act 1992). Powerco
acquired the Eastern Region electricity network and Central gas network from
UnitedNetworks Limited in November 2002.

The electricity industry has undergone significant change, including regulatory changes,
since 1992 to a point where electricity lines businesses were separated from retail and
generation, and electricity line price and quality thresholds were introduced in 2003.
These thresholds were in force until 31 March 2010. On 1 April 2010 Powerco falls
under the electricity distribution default price-quality path determination, pursuant
to Part 4 of the Commerce Act 1986. Powerco will have the option of applying for a
customised price-quality path after the end of 2010 once the rules and methodologies
are finalised.
Throughout the large extent of change over the last 15 years, Powerco has continued
to maintain strong service performance across its networks to its stakeholders.
2.1.2.

At its highest level, Powercos direction is described through its Vision and Mission
statements, which provide the fundamental basis against which each detailed element
of the strategy must align. Powercos Vision and Mission, and the interpretations of the
Vision and Mission by stakeholders, are shown in Figure 2.2. The different perspectives
of the various stakeholders are important in defining the appropriate Asset Management
response (expanded upon later in this section).

POWERCO CORPORATE HISTORY

2005

Sale of Powerco Energy

Services to Tenix Alliance

2004

Acquisition of Powerco Prime

Infrastructure

2002

United Networks (Eastern

Electricity and Central Gas
Networks

2001

AGL (Hutt Valley and Porirua

network)

2000

Central Power

1999

Wairarapa Electricity

1998

Sale of retail and generation

business

1998

Natural Gas Corporation

(Taranaki networks)

1997

Egmont Electricity

1995

Powerco

Hawera Gas Company

1994

Taranaki Electricity

New Plymouth Energy

1993

Powercos Vision and Mission

2.1.3.

Powercos Values

Powercos Values (Figure 2.3) are important in shaping how the organisation acts. They
define the types of behaviour and actions that will contribute to the success of the
company. Each of these statements defines the basic cultural ingredients that shape
the approach towards the management of Powercos network assets.

Figure 2.1: History of Powerco Mergers and Acquisitions.

Funds managed by QIC Limited recently acquired a 58% stake in Powerco, with
the remaining 42% holding owned by Prime Infrastructure Limited. QIC Limited is a
Queensland Government-owned institutional investment manager. Prime Infrastructure
is an Australian infrastructure investment company listed on the ASX.

20

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

VISION
Where do we
want to be?

Leading NewZealand in electricity

and gas delivery

MISSION
What are we
here to do?

To provide a safe, reliable and economically efficient electricity and gas network
distribution service whilst achieving earnings
Owners & Lenders

STAKEHOLDERS
What does this
mean for our
stakeholders?

Customers and Retailers

Deliver stable and improving cashflow

earnings
Maximise organic and related growth
Improve efficiency
Manage risks
Asset optimisation

Employees
Safety
Fairness
Development
Opportunities

Safety
Appropriate price vs. quality trade-offs
Reliability and timely response to faults
Reasonable prices
Communication and consultation on
issues
Prompt connections
Regulator
Economic efficiency
Compliance

Reputable Employer
Figure 2.2: Powercos Vision and Mission.

Acting with integrity

We will work honestly and fairly, operate professionally

and ethically, and take ownership for our actions

Providing leadership
and demonstrating
teamwork

We will demonstrate the behaviours, drive and

commitment necessary to build respect, open
communication and co-operation

Working in
partnership with our
stakeholders

We are committed to building win-win partnerships

across our businesses and with our customers, suppliers
and the community

Driving business
improvement through
innovation

We will continually seek improvement and innovative

solutions from ourselves and our suppliers, and do what
it takes to get quality results

Committed to safety
and having regard for
the environment

We are committed to keeping people healthy and safe,

and to sustainable environmental practices

2.2.

Purpose and Objective of the Plan

The purpose of this AMP is to demonstrate responsible management of the electricity
network assets by Powerco on behalf of its customers, consumers, owners and other
stakeholders. This plan is the documented outcome of Powercos Asset Management
process. The primary purpose of the Asset Management process at Powerco is to
provide the required level of service from the physical assets in the most cost-effective
manner. The required level of service reflects customer price/quality preferences (which
in itself is heavily influenced by past Asset Management practices), and prices reflect
efficient costs (including the return on and of capital) required to develop, renew and
maintain the assets after appropriately accounting for the needs of all stakeholders.
Given the regulated nature of Powercos assets, the economic regulator (i.e. the
Commerce Commission) has a role in setting prices, which, in turn, governs the level of
investment that can be made in the assets.
Effective management of Powercos electricity network assets is critical to the provision
of an efficient and effective service to the companys consumers. With Powercos
electricity network assets ranging in age from new to more than 50 years old, effective
long-term network planning is a fundamental requirement of their development, renewal
and maintenance. This plan provides planning for network development, renewal and
maintenance.
The AMP is a high-level document providing management and stakeholders with a
broad overview of Powercos Asset Management policies, asset details, service levels,
capital and maintenance works planning, expenditure forecasts, risk management
and performance evaluation. This AMP incorporates information from a range of other
internal documents. It sets out the performance criteria for the assets and summarises
the actions needed to achieve those performance criteria. The relationship between this
AMP and other internal documents is set out in Figure 2.4 below.
The plan ensures that the needs of all stakeholders are properly considered and
incorporated into the long-term development, renewal, maintenance and operating
strategies, and that the plans provide, subject to any regulatory constraints, the
optimum balance between levels of service and the efficient costs to provide the
required service.
The AMP is prepared by the Planning, Regulatory, Information Systems and Service
Delivery teams, and is reviewed by the Executive Management Team as part of wider
business planning. The AMP is reviewed and approved by the Chief Executive and the
Board of Directors.

Figure 2.3: Powercos Values.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

21

2.2.2.
Tier 1

This plan is continuously reviewed and updated as fresh data becomes available.
Formal reviews are carried out annually, in line with other Powerco business plans. The
development strategies are reviewed to ensure that they keep pace with changing load
patterns, and the maintenance strategies are reviewed as technology and techniques
develop.

Disclosure Asset Management

Plan prepared annually

Performance & Investment Drivers

Work Plan Overview

Tier 2
Asset Lifecycle Plan, Development Plans, Renewal Plans, Special Asset
Management Plans, Environmental Plan - prepared annually or biennially

Future Review of the Plan

2.2.3.

Structure of the Plan

Figure 2.5 below illustrates the structure of the Asset Management Plan and what each
section is seeking to address.
Who wants what
from the assets?

Work Programme Policy Strategy

Cost Assumptions Programme status Risk escalation

What is the state of the

assets?

What performance are

we targeting from the
assets? How are we
doing vs. the target?
What are the gaps?

How are we managing

the network and solving
any performance gaps?

What does this

mean for the works
programmes and
required expenditure?

How can we improve?

Section 4
Set Performance
Targets

Section 6
Set Asset
Lifecycle Strategy
Analyse Renewal
Needs

Section 6, 7
and 8
Develop Work
Programmes
Linked with AM
Driver

Section 11
Develop AM
Improvement
Initiatives

Tier 3 Policy and Works Plans

Network Project Design Scopes prepared as needed
Annual Capital and Maintenance Works Plan prepared annually
Network Maintenance and Design Standards reviewed 3 yearly or as needed

Section 2
Define
Stakeholders
Define AM Drivers

Figure 2.4: Asset Management Documentation Hierarchy.

The Plan ensures that the needs of all stakeholders are properly considered and
incorporated into the long-term development, renewal, maintenance and operating
strategies, and that the plans prepared provide the optimum balance between levels
of service and economic efficiency (asset investment/utilisation and maintenance and
operating costs).
2.2.1.

Period Covered by the Plan

This Asset Management Plan covers a period of 10 years, beginning on 1 July 2010 and
continuing to 2020. It replaces the April 2009 Asset Management Plan. The main focus of
analysis is the first three to five years, for which plans are generally firm. Beyond five years,
general forecasts are made and reviewed annually. Expenditure forecasts cover a 10-year
period from FY2011 to FY2021. In some instances, it is necessary to have longer term (out
to 20 years) plans to provide the context needed for the AMP planning periods. The Asset
Management Plan was approved by the Powerco Board in March 2010.

22

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Section 3
Describe Assets

Section 5
Performance
Evaluation
Section 10
Analyse Network
Risks

Section 7
Security Criteria
Prepare Load
Forecasts
System Growth
Needs

Section 9
Set Expenditure
Forecasts

Section 8
Reliability, Safety,
Environment
Enhancement
Needs
Protection
& Control,
Smart Network
Development
Figure 2.5: Structure of Asset Management Plan.

Return to Index

2.3.

Asset Management Drivers

2.3.1.

Stakeholder Drivers of the Asset Management Process

Powercos customers, retailers and end-use customers

Figure 2.6 illustrates the relationship between the main stakeholders and drivers and
the Asset Management process. The diagram now includes recognition of the business
planning process because the stakeholder drivers are equally (and in some cases more
appropriately) applicable to the business planning process.
Customers/
Consumers

Government &
Regulator

Owners & Lenders

Employees &
Contractors

are the people, organisations and businesses that rely on Powerco for the delivery of electricity.
They want a safe, reliable, high-quality supply of electricity at the lowest possible price.
Stakeholder

Except for the new connection work and certain large consumers having direct connection
contracts with Powerco, the energy retailers manage the interests of the consumers. Service
levels, pricing and other consumer issues are addressed in the Use of System agreements
existing between retailers and Powerco. Powerco consults with retailers and representatives
of end-use consumers over price and service trade-offs. Details of the consultation work are
outlined in Section 4.2.2.
For new connection work, the consumer or developer deals with an approved contractor and any
planning-related issues are addressed between the contractor, the consumer and Powerco.

Service/Price Safety Load

Growth

Economic Efficiency
(Long-Term Interest of Consumers)
Environmental Safety & Compliance

Long Term Value

(Productivity & Utilisation)
Risk Management

Safety Workflow Certainty

Market Costs

Driver

Service performance is the delivery of electricity line function service. The key elements of
service in this context are:

Business Planning Process

Adequacy of the network: the capacity, configuration and security inherent in the network to
supply the load required;

Asset Management Process

Reliability of supply: the frequency and duration of supply interruptions; and

Development, Renewal,
Maintenance, Operation

Asset Performance Asset age/condition

Quality of supply: voltage level, waveform quality and momentary fluctuations..

Method identifying Stakeholder Interest

Consumer surveys and meetings with consumer representatives and major consumers.
Assets

Feedback from complaints and compliments.

Use of System agreements and meetings with retailers.

Figure 2.6: Powerco Stakeholders and Drivers of the Asset Management Process.

The Asset Management process is described in more detail in Section 2.6 below;
however its primary objective is to optimise the management (i.e. development,
renewal, maintenance and operation) of assets to deliver the required level of service in
a manner that effectively controls costs and risks.
The tables below present the key stakeholders and their drivers of the Asset
Management process. The input these parties have into the Asset Management Plan is
addressed at various stages of the planning process.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

23

The Economic Regulator

The Industry Regulators

(i.e. the Commerce Commission) is the main government regulatory agency that regulates
Powerco.

that have jurisdiction over Powercos activities include the Commerce Commission, the Ministry of
Economic Development and the Electricity Commission. The key driver from the Government is
outlined in the Government Policy Statement on Electricity Governance.

Stakeholder

The Commerce Commission aims to ensure regulated industries, such as electricity lines
businesses, are constrained from earning excessive profits, and are given incentives to invest
appropriately and share efficiency gains with consumers. The Commerce Commission has both
an enforcement and adjudication role under the Electricity Industry Reform Act 1998, and has
responsibilities under Part 4 of the Commerce Act 1986, where the Commission:
Sets default or customised price/quality paths that lines businesses must follow;
Administers the information disclosure regime for lines businesses; and
Develops input methodologies.
Driver

Economic efficiency is the delivery of service through the best use of capital and other resources,
considering the opportunity cost of doing so.
From an economic regulators perspective, this is best described in the Purpose Statement to
Part 4 of the Amended Commerce Act, which states that suppliers should:

Stakeholder

The Electricity Commission regulates the operation of the electricity industry and markets to
ensure that electricity is produced and delivered to all consumers in an efficient, fair, reliable and
environmentally sustainable manner. The Commission has jurisdiction over Powercos activities
as they relate to the electricity industry structure, including terms of access to the grid, Use
of System agreements with retailers, as well as metering, load control, electricity losses and
distribution pricing methodologies.
The Governments overall objective (for the Electricity Commission) is to ensure that electricity
is delivered in an efficient, fair, reliable and environmentally sustainable manner to all classes
of consumer. Industry arrangements should promote the satisfaction of consumers electricity
requirements in a manner that is of least cost to the economy as a whole and is consistent with
sustainable development.
Driver

Have incentives to improve efficiency;

Providing service in a safe and environmentally sustainable manner and provision of the Asset
Management service in a manner that complies with the statutes and regulations and industry
standards. In the electricity distribution network context, the most noteworthy legislation to
comply with is:

Share with consumers the benefits of efficiency gains;

Electricity Act 1991 (and subsequent amendments);

Have limited ability to extract excessive profits;

Electricity Regulations 1997;

The key factors that drive economic efficiency are:

Resource Management Act 1992;

Asset investment: the level of capital investment in the assets to deliver the service. The key
performance driver is the level of utilisation;

Health and Safety in Employment Act 1992;

Operating costs: the overhead, operating and maintenance costs associated with the network
assets; and

Hazardous Substances and New Organisms Act 1996.

Have incentives to innovate and invest;

Service: the quality or level of service delivered.

Part 4 of the Commerce Act requires the Commerce Commission to implement an information
disclosure regime for electricity lines services. The regime places a requirement on businesses
to provide enough information publicly, such as regulatory accounts and various performance
indicators, to ensure that interested parties are able to assess whether the regulatory objectives
are being met.

Electricity Governance Regulations 2003; and the

Method identifying Stakeholder Interest

Requirements of various Acts relating to electricity

Government Policy Statement on Electricity
Consultation papers, decision papers and regulations
Meetings with Commissioners and staff

Method identifying Stakeholder Interest

Requirements of the Commerce Act 1986

Consultation papers, decision papers and determinations
Meetings with Commissioners and staff

24

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Government and Other Regulatory Bodies

Territorial Local Authorities

The NewZealand Energy Strategy (NZES), published in October 2007, provides a vision of
NewZealands energy future and has a core focus of moving towards a sustainable, lowemissions energy system. The strategy sets a clear, long-term strategic direction for the supply
and use of energy to 2050 that responds to the challenges of climate change and energy security.
In February 2009, the Minister of Energy and Resources announced his intention to update the
NZES.

have an interest in Powercos activities through the Resource Management Act.

Stakeholder

The Ministry of Economic Development develops and implements policy for the electricity sector,
in particular relating to the regulatory framework and governance. The Ministry also monitors
market performance, including competition issues and electricity prices. The Ministry maintains
responsibility for the promotion of safety in the electricity industry through the Energy Safety office
and the registration of ongoing competence of electrical workers.
Driver

The guiding principles are:

Investment should occur in energy efficiency measures where this is cheaper than the long-term
costs of building extra generation capacity, including environmental costs; and
For the foreseeable future, it is preferable that all new electricity generation be renewable, except
to the extent necessary to maintain security of supply.
Electricity distribution networks have a role to play in achieving this vision and can contribute
through a variety of avenues, including:
Integrating renewable generation into distribution networks;
Providing price signals to consumers, possibly through the use of smart meters or other
mechanisms of load control to encourage flatter load shapes;

Stakeholder

Territorial local authorities have an interest in Powercos activities through the Resource
Management Act. The overriding purpose of the RMA is to promote the sustainable
management of natural and physical resources. The delivery of reliable and sustainable energy
is part of this. The role of the RMA in enabling investment in the energy sector is essential to the
achievement of reliable energy supply and the efficient use objectives outlined in the NZES.
Powerco participates in the consultative process at national level on environmental matters
with the Ministry for Environment to represent distribution company interests for National Policy
Statements (NPS) such as NPS Renewable Generation and NPS Transmission.
The Government has passed the Resource Management (Simplifying and Streamlining)
Amendment Act 2009 and introduced the Infrastructure Bill into Parliament. Both these legislative
changes aim to facilitate infrastructure development by removing unnecessary barriers.
Driver

Main guiding principles are that we are a long-term and responsible corporate citizen actively
involved in District Plan change debates and taking part in hearings and submissions on local
issues.
Method identifying Stakeholder Interest

National policy statements

Strategic meetings with TLAs
Hearings and submissions

Minimising losses in distribution networks; and

Possible investment by lines companies in renewable generation.
Method identifying Stakeholder Interest

Government Statements,
Consultation documents and policy announcements

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

25

Powercos Owners and Lenders

Powercos Contractors

Stakeholder

Stakeholder

Powercos owners and lenders wish to see that their financial returns are commensurate with
the risk of their investment. This is achieved by ensuring that the development, operation
and maintenance of the network is optimised to enable an appropriate level of return, while
maintaining an acceptable risk profile for the investment.

Powercos contractors require a sustainable and long-term relationship with Powerco. The
contractors should be profitable but efficient. This means having a foreseeable and constant
stream of work to keep their workforces productively employed. Focus areas from an asset
owners perspective are safety, competency, training of young mechanics and technicians, crew
leadership, alignment of business models, and systems to work drivers.

Note: As the Electricity Distribution sector is highly regulated, regulatory certainty, along with the way in which the
regulatory regime recognises the cost of capital projects above the value of the Regulated Asset base, are both key issues
that impact on the owners investment decisions.
Driver

Productivity and commercial efficiency: delivery of Asset Management in a productive, efficient

and commercially prudent manner.
Optimal utilisation of assets represents the best trade-off between capital expended on the
assets and network risk.
Risk management processes seek to identify, recognise, communicate and accept or control
risks that arise in the Asset Management process (Section 10).
Powerco is subject to a number of Corporate KPIs that measure business performance and
Asset Management performance. These include: cash flow available for distribution; earnings
before interest, tax and depreciation; various capital structure and credit metrics; electricity
reliability (SAIDI, SAIFI); faults repaired within target times; electricity counterparty credit risk;
total electricity costs per km; completion of electricity concept scopes; completion of electricity
works plan; close out of internal audit findings; employees with personal plans; training hours
completed and lost-time injuries.
Note: this section is seeking to focus on the key owner/lender drivers and avoids duplication of
drivers covered elsewhere. Owners (as represented by the Directors) have overall responsibility
for Powerco and, as such, are seeking for Powerco to address and optimise a wide range of
business drivers.
Method identifying Stakeholder Interest

Powercos Board meetings and KPIs

Powercos Employees
Stakeholder

Powerco has 220 staff. The staff are predominantly of a technical skill set.
Driver

Powercos employees wish to have interesting and varied careers, with the ability for career
development. Safety, job satisfaction In terms of working environment, and staff wellbeing are key
employee tenets. Powercos culture is backed up by its Health and Safety and Human Resource
policies. The employees have an interest in managing the network competently and doing what is
the right thing. Electrical equipment is capable of causing serious harm. Employees need to have
a safe environment to work in and need to ensure that the environments are safe for contractors
and the public as a result of the work they do (safety through design). This point is reflected in the
Design and Construction standards, and description of maintenance, in Section 6.2.

Driver

Workflow certainty allows the contractors to confidently build up the right level of resources
to achieve efficient resource utilisations. It also allows contractors to achieve the right scale
of benefits for their material purchases, resulting in efficient pricing and a stable industry
environment.
Note: Electrical equipment is capable of causing serious harm, and measures should be taken
to ensure that contractor employees work in a safe environment. From an asset owners
perspective, this is accomplished through a competency certification framework, procedures and
through audit processes.
Method identifying Stakeholder Interest

Contractor relationship meetings

Contractual agreements
Other Stakeholders

Other stakeholders with an interest in Powercos Asset Management process include iwi,
the public over whose land the distribution network is built, Transpower, media and groups
representing the electricity industry, such as Electricity Networks Association and the Electricity
Engineers Association.
Powerco recognises the importance of consulting with iwi on significant new projects, particularly
development of new subtransmission line routes to ensure that the iwi views, values, significant
sites and special relationship with the land is taken into account early in the project development
phase.
Affected landowners wish to be advised when maintenance crews enter their property, and wish
to be assured that their property will not be damaged or put at risk.
Transpower supplies bulk electricity from the grid. Operational plans (like outages and
contingency planning) and long-term development plans need to be co-ordinated well in advance
to ensure seamless supply.
Industry groups, such as the Electricity Engineers Association, provide industry guidelines, training
and a point of focus for inter-industry working groups. The Electricity Networks Association
represents the interests of the distribution lines companies in NewZealand.
Powerco is involved in a range of community projects and activities.

Method identifying Stakeholder Interest

Internal communications
Employee surveys

26

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

2.3.2.

Other Drivers of the Asset Management Process

Other inherent drivers of the Asset Management processes relate to the physical
assets the current and prospective age and condition of the assets, and their
capacity and configuration. In terms of capacity and configuration, and in the context
of Asset Management driver, this refers to the level of redundancy currently inherent
in the network, the level of switching points, the level of spare/reserved capacity and
the location of the load relative to the supply points (both GXP and substations). The
influences of these drivers are discussed in the following Sections 2.5, 7.2 and 7.3.
2.4.

Balancing Asset Management Drivers

At its highest level the Asset Management process seeks to optimise or find the most
efficient trade-off between cost, service and risk. By minimising the costs (i.e. sunk cost
plus any development, renewal, maintenance and operation costs) associated with the
assets, the asset manager may compromise on service and asset risk; by minimising
the asset risk, service and cost may be compromised.

Network Spend

Drivers for investment in electricity distribution include growth, reliability, quality

and regulatory compliance (sources - PBA, Resetting the 2009 Quality Thresholds:
Investigation Report, 19 December 2007, Section 2.2; Farrier Swier, Research Project
for 2009 Threshold Reset, November 2007, Section 3.1).

Long-term
Shareholder
value

Utilisation
Indirect Costs

Development

Environmental
Asset Age,
Condition &
Configuration

Service

Load
Growth

Customer-specific load growth comes about because of the addition of new

customers, subdivisions and developments. The upstream network development
needed to accommodate the new customers is usually proportional to the
demand from the new customers, unless there is spare network capacity
available. The connection of new customers is often funded in part by the
customers, especially if the scale of network investment required outweighs the
expected revenue from the new customers.
General load growth in demand brings about a need to invest in additional
network capacity when the load demanded meets a capacity constraint.
Electricity networks are generally designed to accommodate the maximum load
demanded. Generally, demand for electricity has tended to grow year on year,
although the scale of the growth is not usually constant network-wide. One of the
roles of network planning is to monitor usage patterns and network constraints
so that the network can be augmented before a constraint hits. Often the growth
in demand results in increased revenues that can offset the augmentation
investment. This is not always the case, however, such as when demand growth
is at the expense of load factor.

In general terms, load growth drives development expenditure to increase/

maintain suitable network capacity and to increase/maintain network security
(which is an inherent driver of reliability). Development expenditure to increase
security levels is required as load grows because security levels (namely inherent
network redundancy) increase for given loads.

Market Costs
For Work

Renewal

(a) Load growth (i.e. demand growth) due to new connections and changing consumer
demands. Load growth can be separated into customer-specific load growth and
general load growth.

High-demand growth levels may reduce the networks renewal investment needs
because the growth investment may retire or replace assets that would otherwise
need to be replaced. On the other hand, if the network augmentation does not
keep up with the demand growth, the network assets may be placed under
stress, which may mean they need to be retired early.

Regulated Revenue
Productivity

O&M

Figure 2.7 illustrates the influences of the various drivers on the total expenditure
of the network over time. The diagram reflects the current situation, which can be
summarised as upwards pressure on network expenditure through:

Risk
Mgmt

Safety

Time
Asset Management Process

Figure 2.7: Illustration of the Influence of Asset Management Driver.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

27

(b) The need to maintain/enhance the required level of service (in a broad sense this
includes supply reliability and quality of supply) is the key quality component that
customers notice about the electricity they receive. However, the right level of reliability
of supply is a difficult thing to define.
There is a correlation between network investment and supply reliability in that it
is possible to have a more reliable network through greater network investment.
Economic theory indicates that network customers should be able to identify
the level of investment that achieves the level of reliability that best suits them.
However, no model has yet been developed that accurately balances the cost
benefit for all customers over all points of time.
Electricity distribution network managers recognise the reliability/investment
trade-off implicitly. This can be seen through the architecture of the networks and
in their behaviour towards restoring supply. For example, in rural networks the
level of investment per customer may be higher than that in urban networks but
rural network customers often receive a lower reliability of supply than their urban
counterparts.
Changes in reliability expectations can arise where the utilisation of electricity
changes. This can be seen in the dairy sector. Network shutdowns may raise
the profile of reliability as an issue in the publics mind and precipitate increased
reliability expectations. Additional investment is usually required to meet the
new expectations. Evidence internationally suggests, however, that the largest
step increases in reliability investment have usually been driven by legislative or
regulatory changes.
The need to maintain/enhance the required level of service to consumers
drives both development and renewal costs. That is, depending on the
nature, underlying reason and most cost-effective solution to the gap between
actual service and required service, the expenditure may be in either network
development or network renewal. Network development solutions may relate
to network augmentation to improve security, network automation and the like.
Network renewal solutions would typically involve the replacement of assets in
poor condition to reduce the risk of failure.
(c) Regulatory obligations are imposed by government agencies. These include health and
safety, environmental compliance, taxation, business law and energy sector regulation.
The obligations may be able to be grandfathered, but generally they act to increase the
levels of investment required.
(d) Asset age, condition and configuration are key drivers of the Asset Management
process. These attributes of the network form the baseline upon which solutions need
to be implemented. The challenge for the asset managers is to determine the optimal
timing for the renewal of assets.

28

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Effective asset renewal is a key component of the Asset Management process.

It is most successfully performed when it is fully integrated with all aspects of
the Asset Management strategy and not treated in isolation. Information from
other parts of the Asset Management process may influence the timing of asset
renewal activities and similarly, information from the renewal process impacts on
other processes.
The result of the inter-relatedness of asset renewal with other parts of the Asset
Management process is that, to achieve optimal outcomes overall, actions
are often needed that appear suboptimal at an individual process level. As an
example, some poles are replaced early to achieve the benefits of scale for an
overall pole replacement programme. Another example is that a high-quality,
expensive unit is installed to replace an old item, so that it provides a more
reliable service throughout its lifetime.
The current configuration of the network is also a key driver. The configuration
includes the inherent redundancy (i.e. security), the use of automation, and
the locality of the assets and where the load is. There are many locationally
specific factors, such as the need to cater for special snow loadings, high winds,
rocky soils, remote terrains and vegetation management. They also include the
economies of scale available to a business.
(e) Market costs for work should reflect an efficient work provision regime sustainable
over the long term and without excessive cost.
Competitive tendering for work is one way in which efficient work provision can
be assured, although in a distribution context there can be a large number of jobs
to tender, and the cost of tendering and administration is included in the job cost
(this is one of the benefits of Alliancing).
Benchmarking studies can be undertaken to compare competitively tendered
work.
Unit cost comparisons can be used to compare costs between contractors,
between teams, inter-temporally or a combination of these. The ability to analyse
unit costs depends on the information available in the works management
systems
In recent years, the need for extra traffic management, in some cases limited
working hours, additional safety measures and shutdown constraints have led
to increasing unit costs. For example, pole replacement, which in the mid-90s
averaged around $1200 per pole, is now averaging almost $4000 per pole.
(f) Lastly, risk management is a key driver to maintain long-term sustainable value to
shareholders and is inherent in the Asset Management process when dealing with
matters of safety, environmental compliance and the delivery of the required level of
service.

Return to Index

 There will be a natural tension between the overarching corporate objectives

for utilisation and productivity improvements, and the need to manage risks in
terms of service to customers. This point is the core interface between business
planning and Asset Management planning (and is referred to as the asset
strategy in the Asset Management process diagram in Figure 2.8).

Referring again to Figure 2.7, the current constraints on network expenditure are
generally in the form of:
(g) The outcomes of the economic regulatory environment, which is ultimately the level of
regulated revenue. The regulated revenue is in two parts: firstly, the level of allowable
revenue; and, secondly, the form of control. The regulated revenue is the outcome of
the regulatory process and there are a number of other factors that sit behind this that
impose the present constraints on the level of investment:

The mechanisms to make these trade-offs are discussed in the following two sections
on the interaction with the corporate business planning and the Asset Management
process.

Regulatory certainty is a cornerstone of investor certainty because investors

must be confident that the returns from their investments will not be eroded by
regulatory action over the life of those investments.

Although not drivers of investment per se, there are other factors that influence the
costs of investment. As mentioned earlier, these include location-specific factors such
as the need to cater for special snow loadings, high winds, rocky soils, remote terrains
and vegetation management. They also include the economies of scale available to
a business. Large businesses tend to have specialised techniques that can reduce
the costs of investment. Conversely, they can face increased costs associated with
the need to adhere to (perhaps inflexible) systems and processes. Finally, business
ownership structures impact on the cost of investment through access to and the cost
of capital, appetite for risk, customer engagement; and cashflow. There is much debate
internationally around the best forms of ownership structures for utility network assets.

Transparency and predictability of the regulators decision-making helps ensure

that the regulator is accountable and credible. As an agency establishes a body
of reasoning, it will develop a clear reputation so that investors will be able to
predict the regulatory regime.
Stability ensures short-term shocks are minimised, and investor confidence is
maintained.
As network assets can last 40+ years, these factors are of particular importance
to owners of, and lenders to, network businesses. In short, investors need to
have confidence that they will receive a fair return on and of capital (both sunk
and new invested capital).

The Asset Management process requires that the services provided by the electricity
network are delivered at a competitive price. Planning of the network and forecasting
the associated expenditures is a strategic level activity. Optimisation of expenditures is
a business objective at this level, involving a trade-off between capital and operational
expenditure, network performance and levels of network risk. For example, some
renewal activities may need to be delayed if the business operates in an environment
where revenues are constrained.

It is worth noting that dealing with these factors is primarily a corporate business
planning matter, and the direct driver on the Asset Management process is the
level of capital and maintenance provided for work on the network, and the level
of service accepted for this given level of capital and maintenance expenditure.
(h) A properly incentivised owner will be seeking long-term sustainable earnings from its
current and ongoing investment in its business. Notwithstanding the wide role and
responsibilities of Directors (as owner representatives), which was briefly discussed in
the Stakeholder Tables above, the two key drivers to improve financial performance
(other than growth) are utilisation improvements and productivity improvements.
A commercial entitys drive for utilisation and productivity improvement provides
the appropriate countervailing force on the setting of budgets and investment
decision-making for Asset Management work.
Proper incentives come when the business is able to benefit from making
improvements to productivity and utilisation while maintaining an appropriate
control of risk to ensure that the required level of service is delivered. That is, the
regulatory regime needs to ensure that dynamic efficiency is properly considered
in setting the allowable revenue and the form of control over the long term.

2.5.

Corporate Interaction with the Asset Management Process

The previous two sections have looked at the stakeholder drivers for Asset Management
and the balancing of these varied Asset Management drivers. Before looking at the
Asset Management process in more detail it is appropriate to first review the interaction
between the corporate business planning and Asset Management planning.
The Asset Management Plan is a key input to the corporate planning process.
Conversely, key corporate objectives influence the direction of the Asset Management
process. The interfaces between corporate business planning and Asset Management
planning occur at the senior management, Executive Management team and Board level.

There is strong alignment with the commercial utilisation and productivity drivers
with the economic efficiency drivers under a well-constructed regulatory regime.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

29

From an Asset Management process perspective, the key linkages between the
business plan and the Asset Management processes occur with the setting of the
Electricity business tactical action plan. Primarily, the Electricity business tactical
action plan deals with the implementation of the various process, system, people and
knowledge perspectives of the business plan relating to the electricity business.

The corporate business planning process (and the business plan) deals with setting
strategies for Powerco. An overview of these strategies and their interaction with the
Asset Management process is given in the table below:
Business Plan Component

Interaction with the Asset Management Plan

The overarching strategic

objectives.

From the FY09 Powerco business plan, the overarching

strategic objectives relating to the physical assets and the
Asset Management process are:
Workflow and productivity improvements in operating,
maintenance and capital work;
Improvements in Asset Management workflow systems and
processes;
Increasing customer focus and being more responsive to
customer demands; and,
Exploiting non-asset solutions.

The customer value

proposition.

The level of service from the asset.

The financial objectives and

forecasts.

Investment policy (which underpins the Coin optimiser)

The level of investment and O&M.
The utilisation/productivity improvement strategies.

Asset Management Process

2.6.1.

Process Overview

The Asset Management process requires that the services delivered by the electricity
network be provided at efficient cost. Powercos Asset Management process is
designed to accommodate the needs of the stakeholders and corporate requirements,
as shown diagrammatically in Figure 2.6. The process includes the following
subprocesses:
Manage Asset Strategy: This process provides long-term strategic direction for the
management of the assets and the business operations, and is the key interface for
customer/consumer consultation and corporate strategy;
Deliver Asset Planning: This process involves planning for the renewal, development,
maintenance and operation of the assets;

The business processes and

improvement programmes.

The objectives for the Asset Management processes.

Manage Service Provision: This process involves the delivery of construction,

maintenance and operating services on the network assets;

The Corporate Risk

Assessment Guidelines

The Asset Management process puts the corporate risk

management policies into practice.

Manage Network Operations: This process involves the management of the realtime operation of the networks, recording network outages and approving planned
shutdowns and the access to the network by service providers; and

Powerco people and

knowledge strategies.

The mix and depth of skills and systems required to support

the Asset Management processes.

Maintain Asset Information: This process involves the maintenance of, and reporting
from, the asset information databases.

To set the abovementioned corporate strategies requires both a consideration of the

key stakeholder needs and a consideration of the output from the Asset Management
process. As noted in Figure 2.8, the corporate business planning and Asset
Management stakeholders and drivers overlap. Recognition of how the stakeholder
needs are considered across the corporate and Asset Management planning processes
was discussed in the preceding section.
The key interface between business planning and Asset Management planning is
referred to as the asset strategy in the Asset Management process diagram in Figure
2.8. The asset strategy is the investment policy, capital, maintenance and required
service level and would incorporate the strategies for utilisation and productivity
improvements. Setting these aspects is an iterative process and occurs largely during
the drafting, review and approval of the Asset Management Plan (which is an input into
the business planning cycle).

30

2.6.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Figure 2.8 also shows the interaction with key corporate processes, namely:
Governance and Management: This process provides direction, governance and
management to ensure that the Asset Management Groups objectives are met and
delegated responsibilities are properly executed;
Manage Customer Relationships: This process involves maintaining the relationships
with retailers and major connected customers;
Manage Regulatory Relationships: This process provides legal advice, coordinates regulatory submissions, co-ordinates corporate risk management, and
environmental policy and performance monitoring;
Details of Powercos Asset Management information systems are given in Section 2.8.

Return to Index

Forecast Investment, Cost,

Service and Risk + Asset
Valuation

Monitor
Legislation
Changes

Involvement in
Industry Work
Groups

Risk
Management

Legal Advice

Environmental
Management

Prepare
Regulatory
submissions

TO ALL PROCESS
Group Performance Measures
TO/FROM ALL PROCESS

Project Financial &

Status Info

Works
Management
System

Manage Customer Relationships

Set Contract
Structure

Consumer Supply Issues and Consumer Complaints via retaillers

Manage
Retailer
relationships

Manage
relationships with
large customers

Manage
Customer
Initiated Works

Develop
Pricing

Manage Asset Strategy

Asset Strategy

Planning Cycle

Set Network
Performance Criteria
Asset
Management Plan

Set Investment Policy

Set Asset Strategy

Network
Operation Policy
Asset Operating
Standards

Information on
Assets and their
History and
Performance (to
all processes)

Monitor
Network Against
Performance
Criteria

Develop Solutions to
meet Performance
Requirements and
Growth

Determine
Network
Renewal Needs

Compile AMP,
Construction
Standards &
Operating Policy From
Solutions

Forecast
Demand

Compile Annual
Works Plan and
Conceptual Scopes

Manage Network Operation

Deliver
Customer
Interface

Monitor
Network
Performance

Dispatch
Network
Work

Manage
Network
Availability
and Load

Manage
Network
Deffects
Manage
Employee
Competency

Manage
Network
Access

Asset
Information
Systems

Data

Maintain Asset Information

Data

Update and
Maintain Asset
Information

Audit and
Verify Asset
Information

ICP Information

Approve
Service
Providers

Manage
Contractor
Relationship

Billing
Process
Fault Information

Manage Service Provider

Performance

Manage Programmes
and Projects

Commissioning

(Direct to Powerco
for Gas and via to
Service Providers for
Electricity)

Requests for Customer Initiated Work

Financial
Systems

Service Provision Contract 2

Service Provision Contract 1

Contract Preparation,
Tendering and Negotiation

Annual Works Plan

Design, construction &
Materials Standards

Deliver Asset Planing

Asset
Strategy

Manage Service Provision

Network Switching Instructions Permits

Asset Condition Information
Network Status Information
Fault Job Information

Contract (Terms & Standards) and Project

Work packs

Owner (Owner,
Lenders & Board)

Consumer
Price/Service
Preferences
(As Regulated
or agreed)

Management
Review

As-Built and Asset Information

Disclosure

Customers/
Consumers

Business
Planning

Manage Regulatory Relationships

Legislation and Regulatory

Requirements

Government &
Regulators

Governance and Management

Corporate Business Plan

Corporate Governance Charter Delegated Authorities

Market & Industry

T
EN
EM
G
A
AN
M ES
ET ESS
S
AS OC
PR

E
AT S
OR SSE
P
R E
CO ROC
Tactical Actions P
Business Improvement
Management Policy

Design Approval,
Powerco Investment Approval
Works Completion Notice

Competitor & Best-Practice Information

Service Provider Undertakes

Required Work

As-Built and Asset Information

Figure 2.8: Powercos Asset Management Process Map.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

31

2.6.2.

Core Process for Balancing Asset Management Drivers

At the heart of the Asset Management process is the balancing of the various
Asset Management drivers. At a strategic level, the needs and interests of various
stakeholders are evaluated and considered as part of the corporate planning process,
and these are applied during the network planning process (refer Figure 2.9). At a
tactical and operational level in the network planning process, the investment policy
and asset strategy shapes, and is shaped by, Powercos multi-stakeholder assessment
process. This process is a key part of the way in which network development and
renewal programmes are formed.

Asset
Condition
Analysis

AMPs

Financial Performance
Gate Keeper (Planning Team)

Manual Filing
System

The Coin optimiser is a portfolio optimisation system developed specially for Powerco.
Potential projects are entered into the Improvement Register, which is essentially
a database. The projects come from various sources, such as internal Asset
Management plans (tier 2 documents in Figure 2.4) or project ideas from the field.
Projects are scored against 14 different strategic value criteria, each of which comes
under four strategic themes (Figure 2.10), and the projects considered for go/no go
under a combination of budget- and risk-profile constraints. Projects that have a high
strategic value pass into the annual works programme. Those with a lesser strategic
value are deferred to future years. The system has reporting tools for producing Works
Plan reports and Project Approval documentation (NPAM).

Works Plan
Consultation

Improvement
Register
Database

Reporting

Work Plan

Financial Worth
(based on NPV measures)
Financial Return
(based on ODV and Payback period
measures)
Customer Value

Field Input

Automated population of Coin

Issue

Coin Scoring
System based
on predifined
budget

Budget gets
confirmed or
changed

NPAM
Create
Templates
automatically
for final
works plan

Regulatory Quality
Customer Quality
Relationships
Customer Service Delivery

Business Operations
Growth and Competitive Positioning
Public/Community Safety
Environment
Network Performance
Process/Information Integrity
Employee Safety and Development
Workforce Safety
Training and Development
Culture and Commitment

Figure 2.10: Portfolio Optimisation Strategic Themes and Criteria.

Initial Priority of high to cut to
120% of budget then use Coin
prioritisation to cut to 100% of
budget and EXP Draft Plan.

Budget only gets confirmed after

Draft Plan was sent out. Should
it change the priortisation needs
to be run again.

Figure 2.9: Network Works Programme Optimisation Process.

32

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Each of the strategic criteria is weighted as follows:

Efficient Frontier Risk & Value

90

Culture & Commitment

Training & Development
Workforce Safety
Process/Information Integrity

80
Financial Worth

70

Network Performance

60

Environment

9
18
1

15
5

6
7

10

11 12
13

40

Growth & Competitive

Positioning

14

19

50

Public/Community Safety

30

Customer Service Delivery

20

Relationships
Customer Quality
Regulatory Quality

Financial Performance 49%

Probability

100

Overall Risk of Deferral

10

Financial Return

Customer Value 20%

Strategic Value

Figure 2.11: Strategic Theme and Criteria Weightings.

Projects are also analysed for risk (i.e. the risk to the company if the project is not done)
as part of the project approval process.
Planned projects are required to undergo concept design, followed by multistakeholder evaluation and economic justification processes. If the projects measure
up, they are recommended for approval at the appropriate level of authority.

$ (000)

Employee Safety and Development 10%

The optimisation process produces an efficient frontier (strategic value versus

expenditure) against which a budget can be set. This gives the company a view of
marginal value benefit versus additional cost. An example of this is shown below (Figure
2.12) where the purple curve represents growing strategic value for every dollar spent
and the blue curve demonstrates risk reduction (representing the additional risk if the
project were not done) per dollar spent. The diagram on the right is a risk matrix of the
programme, with each dot representing the risk reduction in doing a project.

16

0
3,000 4,000 5,000 6,000 7,000 8,000 9,000

Business Operations 21%

17

4
5
Consequence

Risk

Figure 2.12: Examples of Strategic and Risk-Scoring Graph Outcomes.

2.7.

Responsibilities for Asset Management

Responsibilities for Asset Management are held from the Board through to contractor
field staff. This section presents an overview of Powercos business model and
organisation structure as context for the discussion on responsibilities for Asset
Management across the company.

2.7.1.

Powercos Network Ownership and Management Business Model

Powerco owns and manages the network, and external alliance partners undertake the
field service activities. The business model is shown diagrammatically in Figure 2.13.

The primary objectives of the optimisation process are:

To provide a consistent approach to the development of capital works programmes
that balances (potentially conflicting) stakeholder requirements;
To eliminate (or mitigate) any high risks to public safety, network performance,
customer outcomes, public relations, or employee engagement; and
To maximise the strategic value of the portfolio of projects that make up the capital
works programme.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

33

Funds managed by Queensland investments Corporation (58%)

Powerco Group

Babcock and Brown Infrastructure (42%)

Powerco NZ Holdings Limited Board

Powerco Limited Board

Governance Reporting

Executive Management Team

Electricity Customer
and Commercial
Management

New Connection

Connection Contractor
New Connection

Transmission business
PTS/ITS2

Electricity Prospects

IS Services and
network information

Billing

IS Infrastructure

Treasury

Programme Office

Financial Services

IS and PO services
Asset Information

Transpower

DBOO

AMP Works Plan

Generators
Tx customers

Other Suppliers
IT services and
projects
Communication
system
Engineering specialist
Regulatory Specialist
Legal
Property
Travel

Electricity Planning

Outage mgmt
Customer
Service

Legal, regulatory and

growth support

Corporate Communication
Legal Services

Gas Retailers
Gas Network Customers

Gas Customer
and Commercial
Management

Business Planning
Management Review

Finance

Helpdesk and
Control Room1

Customer Needs

Electricity Network
Customers

Helpdesk and
Control Room1

Retail Service

New Connection

Gas Prospects
Service

Service Mgmt

Connection Contractor
Gas Fitters
Vector Transmission

Gas Planning
AMP Works Plan

Outage mgmt
Customer
mgmt

Customer Needs

Energy Retailers

Debt Providers
NZDX

Supplier mgmt

Electricity Service
Delivery

Business Development

Gas Service Delivery

Regulatory Management
Contract/ project mgmt
Safety mgmt
Maint/defect mgmt

Service Providers
Design & Field Services

Regulatory
Management

Regulator

Communication

Rating Agencies
Public

Contract/ project mgmt

Safety mgmt
Maint/defect mgmt

Community

Service Providers
Design & Field Services

Figure 2.13: Powerco Business Model.

34

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

The Board reviews and approves the Asset Management plan, annual capital and
operating expenditure forecasts, sanctions for operational or capital projects involving
expenditure greater than $2,000,000 (refer to Figure 2.15), and the divestment of any
assets with a value greater than $250,000. One of the main rationales that the Board
uses for approving such projects is its alignment with the Asset Management Plan.

Powerco has five functional units, as outlined in Figure 2.14, comprising separate
functional groups for Electricity and Gas networks and shared Finance, Information
Systems and Regulatory and Business functional groups. This structure became current in
April 2008, prior to which the company was structured along functional lines.
The Corporate structure (and associated position descriptions) is important in the
context of the AMP because it defines how accountabilities for the Asset Management
subprocesses are assigned to managers and teams.
Chief Executive

2.7.3.

Richard Krogh
Human Resources

General
Manager
(Electricity)

Nigel Barbour

Electricity
Customer and
Commercial
Management
Electricity
Planning
Electricity
Service Delivery
Transmission
Business
Management
Network
Operations
Management

General
Manager (Gas)

Chief Financial
Officer

Andrew
McLeod

Elanga
Ekanayake

Gas
Customer and
Commercial
Management
Gas Network
Planning
Gas Service
Delivery

Corporate
Finance
Management
Accounting
Billing and
Reconciliation
Treasury

Information
Services
Manager

Regulatory
and Business
Manager

Blane
Evans-Parker

Paul Goodeve

IS Services
IS Infrastructure
Programme
Office
Network
Information

Regulatory
Management
Technical
Regulatory
Management
Business
Development
Legal Services
Corporate
Communications

Figure 2.14: Powercos Corporate Structure.

2.7.2.

The Board receives monthly reports that include performance reports against the Asset
Management Plan and escalated top 10 risks. It also receives audit reports against a
prescribed audit schedule.

Governance Level Responsibilities

In carrying out its governance, a key role of the Board is to drive the performance of
the company. It does this through establishing Powercos objectives and the major
strategies for achieving these objectives, while meeting the owners key corporate
governance policies within the business of the company.

Executive and Senior Management Level Responsibilities

The Electricity Division is the custodian of Powercos electricity network assets. This
Group is responsible for ensuring that the utility assets are developed, renewed,
maintained, operated and used on a long-term, sustainable basis to meet the needs
of all stakeholders. Setting and monitoring performance standards, making investment
decisions, using network information, establishing standards, operating the network,
managing work on the network and risk management are included in this work. The
General Manager Electricity is responsible for the Electricity Division.
The Electricity Planning Manager is responsible for the Asset Strategy and Asset
Planning processes. These processes culminate in the delivery of Asset Management
policies and documentation, network valuation, investment policies and forecasts,
maintenance and capital works plans, project concept design scopes and
maintenance, and design and construction standards.
The Electricity Service Delivery Manager is responsible for fulfilling the capital and
maintenance works plans in a timely manner, managing the defects and vegetation
control processes, and maintaining the relationship with service providers. The
Electricity Service Delivery team is responsible for implementing Powercos Health
and Safety policies, and administering the Contract Works Manuals and competency
certification of contract staff.
Day-to-day operation and access to the network is managed by the Network
Operations Manager and the Network Operations Centre. This process includes
controlling network shutdowns and network switching, co-ordinating the response to
network outages, managing the load control process, maintaining the SCADA system
and ensuring adherence to the contractor competency requirements.
The Customer and Commercial team maintains relationships with the major connected
customers and retailers, the Customer Initiated Works process, and relationships with
other parties associated with the network, such as distributed generators.
Responsibility for the Asset Management Information Systems is taken by the
Information Services Group, which is also responsible for IT infrastructure and data
services, quality systems, IT development projects and as building (updating to match
the physical environment) the Information Systems.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

35

Legal services, Business Development and Regulatory Management are the

responsibility of the Regulatory and Business Group. Subprocesses include preparation
of regulatory submissions, co-ordination of risk management, environmental planning
and management, and the Communications and Customer Consultation processes.
The impact of new and existing legislation on Powercos network is reviewed regularly.

financial, customer, process and improvement/learning areas of their groups. Monthly

KPIs include financial performance against budget, SAIDI; projects scoped and works
plan completion. Key project status and performance against budget (including
explanations of any variations) are reported monthly. Longer-term performance
measures are reported annually in the AMP.

Approval of projects is done through the network project approval process. This
process works within the companys Delegated Financial Authorities and sets out the
levels of justification needed for projects to be considered for approval. In summary,
the process involves the levels shown in Figure 2.15. In this diagram, a short NPAM
comprises a description of the project scope, required timing, budget and major
risks. A long NPAM comprises the content of a short NPAM, along with an economic
justification, assessment of options and multi-stakeholder benefits.

Major issues from an Asset Management perspective can be raised at executive

meetings or at bi-monthly or weekly team meetings. Annual reviews of AMP to Works
Plan and Works Plan completion, and a quarterly group review of Works Plan project
status, are undertaken. Group reviews of network incidents and closure of resulting
improvement actions are undertaken regularly.

Projects
< $30 thousand
Approval Level:

Planner Project
Manager

Project documentation:

Email or memo

Number per year:

Approx 2000

Projects
> $30 thousand and
< $300 thousand

Projects
> $300 thousand and
< $2 million

Approval Level:

Approval Level:

Manager

Project documentation:

Short Network
Project Approval Memo
Number per year:
Approx 250

Executive

Project documentation:

Long Network
Project Approval Memo
Number per year:
Approx 20

In accordance with Delegated Financial Authorities (DFA), requests for capital are
approved by the Board or the Chief Executive Officer and Chief Financial Officer, to
ensure that appropriate economic viability investigation has been undertaken and that
the proposed project considers the needs of the stakeholders. On project completion,
close-out reports are prepared to give internal stakeholders information on how the
projects have been completed.

Projects
> $2 million
Approval Level:

Board

Project documentation:

Sanction for
Expenditure and NPAM

2.8.

Asset Management Information Systems

Asset Management information systems have been implemented at Powerco to
support the Asset Management processes. The information systems include:

Number per year:

Approx 3 to 10

ESRI Geographical Information System (GIS)

Figure 2.15: Powercos Network Project Approval Levels.

JD Edwards (JDE) Maintenance, Work Management and Financial System

2.7.4.

Field Operations Responsibilities

Electrical Network System (ENS)

Powercos field service operations are fully outsourced (Section 2.9.2 describes the
outsourcing arrangements). Field service personnel undertake the network maintenance
and capital work, gather asset condition information, and provide timely responses to
faults and incidents. The field service contractors are a key sensory organ for the Asset
Management process the ears and eyes for the network.

SCADA data and PI system

Crossover inevitably and desirably exists between teams. For example, customer
communication on price/quality trade-offs is shared between the Corporate
Communications process, the Customer Relations process and the Asset Strategy
process. Information systems are used and maintained by a variety of teams.

Hard copy records and Drawing Management System (DMS)

External consultants are sometimes used by all teams for expert advice, performing
detailed studies and peer review, such as on detailed design issues.
2.7.5.

Asset Management Reporting

Monthly reports against a balanced scorecard of critical performance measures are

given to the Chief Executive Officer and Board of Directors. The scorecard reflects

36

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

TVD dispatch system and OutDef outage recording system

CIW Electricity
Improvement Register database and Coin optimisation tool
Ancillary databases
The following section provides a brief description of the systems and their associated
processes.
2.8.1.

Geographical Information System (GIS)

Powerco uses a GIS to capture, store, manage and visualise its network assets. The
GIS is built on top of a set of ESRI and Telvent applications (ArcGIS, ArcFM) that deliver
data in Web, desktop and service based solutions.

Return to Index

The systems contain data about the lines, cables, devices, structures and Installations
of the electricity distribution network, and about the pipes, structures and installations
of the gas distribution network.
GIS is the master system for current assets in the network, but it also distributes and
informs other systems about the current assets via a middleware system interface
(Biztalk server). The primary consumer of this data is the enterprise system (JD
Edwards), which acts as the works management and financial system that operates as
a slave system off the GIS data. This integration allows calculating and managing the
network optimised depreciated replacement cost (ODRC), the network maintenance
plans, and others as described under the next chapter. The asset spatial information
is also a key input into maintenance scheduling where geographical and network
hierarchy factors are considered in the planning, monitoring and improvement of the
asset base.
The GIS system also serves as a data reference master for other systems and
processes, like new connection requests, address geocoding, and general network
information.
As a matter of process, as built documentation is required to be submitted to the
Network Information team following any work on the network in order to keep the GIS
and other systems current.
2.8.2.

Maintenance, Works Management and Financial System

Powerco operates a JDE system, which provides Asset Management and reporting
capability, including financial tracking, works management, procurement and
maintenance management.
Powerco has centralised asset condition and maintenance programming in JDE. As
the master for all maintenance and condition information, JDE drives asset renewal
programmes centrally. Within JDE, Powerco has implemented system and process
improvements for defect and rotable Asset Management. The system provides
improved visibility over Powercos rotable asset base.
Powerco has recently deployed a mobile platform that will enable the delivery of
applications to Service Provider PCs and mobile devices. This will enable asset
condition, defect and maintenance activity records to be captured in the field. Future
plans include the recording of scheduled maintenance activity completion, prescribed
test result capture and corrective maintenance work instructions.
2.8.3.

ENS/Gentrack

The ENS is a subsystem of our Gentrack billing system and is used to maintain the
relationship of the Powerco installation points and the parent distribution transformer.

Return to Index

2.8.4.

SCADA Data and PI System

The PI system specialises in the collection, processing, storage and display of time
series data. Powerco will use PI to store the SCADA tag values from, initially, all the
analogue SCADA points (initially 2,343 tags with capacity to increase to 4,000). The
current SCADA control systems, Abbey Systems and Foxboro, feed the tag data to PI,
which stores and processes it. A strong feature of PI is the way large amounts of data
are stored and retrieved with quick response time. The client tools for PI, Data Link and
Process Book are available over the Citrix portal. These are for viewing data and graphs
in customisable interactive displays.
2.8.5.

TVD

The TVD Avalanche and CSC Network application suites are both business-critical
applications designed for 24/7 operations within Powerco.
Together they are used as a comprehensive Fault Management System for all lowvoltage faults reported by consumers and retailers. TVD manages all aspects of the
fault, from initial logging, business-to-business event logging, telephony IVR diversion
and work order, and service request handling for fault management.
The consumers retailer tends to be the first point of contact for customers in respect of
any service request, network query or complaint. This includes requests for temporary
safety disconnects as well as notification of faults or loss of supply. There is an 0800
number available for direct contact with Powercos 24-Hour Network Operations Centre
in emergency situations. Large consumers regularly contact Powerco directly via the
Key Account Managers.
The retailers are expected to advise Powercos Network Operations Centre (NOC) of
any concerns regarding the performance of the network on a real-time basis. Field staff
will be dispatched to attend faults while maintaining liaison with the NOC to ensure that
any inspection or remedial work is carried out in complete safety and in co-ordination
with other activities on the network. The NOC ensures that:
Jobs are prioritised on the basis of safety risk first and then on the basis of social or
economic impact;
Appropriate safety measures are applied as necessary;
Industry best practice, as well as Powercos own processes and procedures, are
adhered to at all times; and
All necessary information regarding incidents and outages (including Powercos
response) is recorded accurately for later analysis and public disclosure, as
necessary.
Powerco targets an average dispatch time of less than four minutes and 90% of jobs
dispatched in less that seven minutes. Additionally, Powerco aims to restore supply
within three hours for urban faults and six hours for rural faults.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

37

2.8.6.

OutDef

OutDef is an application built and maintained by Powerco that handles high-voltage

fault recording, fault diagnosis and the management of outages and defects (electrical
networks).
The fault database is used to produce external reports for the Commerce Commission,
Ministry of Economic Development, and internal reports for Powerco Management
and Performance and Protection Engineers to improve network performance. It is an
ongoing record of electrical interruptions in the Powerco network, with data collected
by fault staff in the field and control room.
OutDef is populated by the Network Controllers during times of low switching activity
from switching record sheets. Daily reports of interruptions are prepared and circulated
internally. Key outages and SAIDI and SAIFI numbers are reported on monthly. An
annual network reliability report is prepared for information disclosure purposes.
2.8.7.

CIW Electricity

This is a stand-alone Workflow Management application with an internet interface

for Powerco approved contractors. The primary function is to manage the flow of
Customer Initiated Work from conception by third party proponent through to asbuilding and ICP process completion.
Requests for new or existing customers to carry out work on Powercos network
are covered by Powercos Customer Initiated Works process. This process places
importance on providing new and existing consumers with a choice of prequalified
contractors that they can engage to carry out work at their connection point(s). The
process adopted ensures that the integrity of the overall local network and the quality
of supply to adjacent consumers is retained, while making the Customer Initiated Work
contestable.
A Customer Works Engineer provides the contact point between the customer,
or customers representative, and Powerco. An Approved Contractor working in
accordance with Powercos Contract Works Manual can usually complete routine or
simple work. Moderately complex or medium-sized works have their design details
assessed before approval by the Customer Works Engineer. Complex or large works
are referred to the Asset Management Planning team for scoping and review. Works
of this nature may require high levels of planning and design input before work can
commence.
2.8.8.

Improvement Register and Optimisation Tool

The Improvement Register and Optimisation Tool is described in Section 2.6.

38

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

2.8.9.

Drawing Management System

The drawing management system is based on IC Meridian, and works in conjunction

with AutoCad drawing software. It is a database of all engineering drawings, including
substation schematics, structure drawings, wiring diagrams, regulator stations, and
metering stations. In addition, there is a separate vault that contains legal documents
relating primarily to line routes over private property.
While the drawing management system works well, the accuracy of the drawings
against what is out in the field is not confirmed. This means that wherever work is done
at a zone substation, checks are carried out and drawings updated to reflect the asbuilt status of the site.
2.8.10. Ancillary Databases

Powerco operates ancillary electronic databases for control and issuing of installation
connection point (ICP) information to retailers, and to control hard copy drawings and
documents.
Powerco also maintains a comprehensive protection database to manage settings in
numerical and electromechanical protection relays.
2.8.11. Other Record Systems

In addition to the electronic systems, several other recording systems are maintained,
including:
Zone substation drawing folders. These contain hard copies of the electronic master
drawings;
Standard construction drawings;
Equipment operating and service manuals;
Manual maintenance records;
Network operating information (system capacity information and operating policy);
Policy documentation; and
HV and LV schematic drawings. These are distributed in pdf format whenever the
electronic master copy is updated.
2.8.12. Information Integrity and Improvement Actions

Extensive effort is made to ensure the integrity of the asset information. This includes
auditing as-built information against the physical work, checking GIS additions against
the as-built information, and formal auditing. A comprehensive network information
programme is being developed to ensure the quality, consistency and completeness of
the entire networks asset data.

Return to Index

A number of significant data and system rationalisation projects are being undertaken.
These projects are summarised below:

Powercos corporate business drivers;

The centralisation of asset location and attributed data into the GIS. A key goal
of the systems management is to make the GIS system the master for all spatial
data. This involves the synchronisation of information from ENS and other ancillary
databases.

The needs of the Service Providers; and

Normalisation of naming and coding conventions for asset and network sites in all
core systems to minimise discrepancies.

Powerco utilises Service Providers and competitive market principles to deliver

sustainable improvements in the cost, quality and safety of construction and
maintenance services on the electricity and gas networks. These include:

Updating and redrawing critical zone substation schematics and protection

diagrams.
Integration between network modelling software applications (Synergee and PSS
Sincal) and network data contained in GIS. This will significantly minimise the
amount of rework and inaccuracies introduced in maintaining independent datasets.
The completion of the GIS Network connectivity project will improve the consistency
and completeness of critical network hierarchy and topology, especially in the highvoltage network, which will benefit all dependent systems.
A project has recently been completed to reduce the backlog of as-built drawings
awaiting input in the GIS to an acceptable level.

The current capabilities, strengths and weaknesses of the service provision market;
The capabilities of the Asset Management Group in managing the outsourcing of
construction and maintenance activities.

Facilitating Service Provider resources with expertise matched to the work

requirement in the locations required;
Maximising the Service Providers control over the inputs to its services to allow it to
meet the service performance level;
Utilising competitive tension to encourage continuous improvement in the cost of
the delivered service;
Minimising the level of management of Service Providers while ensuring appropriate
control is maintained to deliver the desired service outcome;
Maintaining a high level of safety performance by Service Providers; and

Powerco has also recently replaced the Eastern Region SCADA Master Station as a
first step towards an integrated SCADA Master Station. The new ICT platform on which
the SCADA Master Station has been delivered gives corporate users real-time data via
a web browser, high availability, redundancy and disaster recovery options. This new
system provides future capability with advanced network modelling tools to support
Asset Management.

Fairly allocating risk between Powerco and the Service Provider.

Future network information improvement would result from a rolling audit of network
data from the field to gather information, like the size of a conductor and location of
street lights.

Utilising competitive tension to improve productivity and innovation;

2.9.

Network Service Provision Arrangements

2.9.1.

Introduction

The service provision principles describe the use of long-term pure alliance or alliancestyle contracts with Service Providers. It is considered that this style of contract is
the most appropriate commercial arrangement for Powerco to adopt with its Service
Providers for core construction and maintenance activities, given the need to provide
24/7 cover across Powercos large (and sometimes remote) network footprint. Pure
alliance and alliance-style contracts are well matched to the level of maturity of the
Electricity Service Delivery Group and Service Providers.

Powerco outsources all of its field construction and maintenance activities.

2.9.2.

Powerco Outsourcing Policy Overview

Powerco has developed a service provision strategy to set the long-term direction for
the management of construction and maintenance activities in line with its business
model and corporate objectives.

A series of guiding principles has been developed to provide greater detail on how the
service provision strategy can be achieved. The service provision principles cover:
Facilitation of resources to meet Powercos needs;
Delegation of responsibility to Service Providers;
Optimising the level of Service Provider management; and
The allocation, communication and recognition of risk.

Powerco will undertake one of its regular reviews of the service provision strategy
during 2010.

The service provision strategy was revised during 2004 and the updated strategy is
given below. The strategy was reviewed giving consideration to:

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

39

2.9.3.

Pure Alliance-Style Agreement and Contracts

2.9.4.

Alliancing is a collaborative arrangement aimed at overcoming a number of the

disadvantages often associated with what is described as the traditional contracting
approach. The alliance relationship, evidenced by the title, is based on a framework of
co-operation and mutual adhesion to agreed principles and outcomes, particularly in
relation to matters such as risk and risk-sharing, quality, timing, cost and profit.

Powerco also has a Contract for Field Services Agreement (CFSA) with NorthPower to
build and maintain services, primarily in the Valley network of the Eastern region.
Generally, the CFSA requires the Service Provider to provide:
Fault and defect repair;
Major ground-level distribution substations and HV switchgear maintenance;

Alliancing can lead to a more accurate assessment and certainty of the cost to
Powerco in relation to the delivery of services. Usually that cost is lower than what may
have been bid or delivered if a more traditional contracting approach had been used.
It should be noted, however, that the accuracy and certainty obtained represents a
trade-off of sorts. To secure accuracy and certainty, Powerco collectively assumes
responsibility, with its alliance partners, for the risks associated with the delivery of
services. In a traditional contract arrangement, various risks will have been solely
allocated to the contractor (and the contractor would have priced those risks in) and
Powerco would have retained the right to sue the contractor in relation to those risks.

Detailed design for general line construction;

Construction, maintenance, inspection and condition-monitoring work for the
subtransmission and distribution network;
Zone substation development work;
Distribution network condition-monitoring and maintenance; and
Construction work for the subtransmission and distribution network.
Apart from major project work and some non-exclusive services outlined in the
contract, such as zone substation maintenance, ground-mounted switchgear
maintenance and capital work, the services mentioned above are exclusive to the
Service Provider.

Tenix Alliance has had all of the shares in Powercos contracting business since
November 2005. Tenix Alliance now undertakes the provision of network construction
and maintenance services in the Eastern and Western regions, except for the Southern
Waikato area. The scope of this partnership includes the following general work types:

Other contract arrangements exist pertaining to the provision of tree management over
the network footprint.

Fault and defect repair;

Zone substation maintenance;
Major ground-level distribution substations and HV switchgear maintenance;

2.9.5.

Construction, maintenance, inspection and condition-monitoring work for the

subtransmission and distribution network;
Zone substation development work;
Distribution network condition-monitoring and maintenance; and

The Vegetation Management Agreements are set up to be theoretically self-managing.

Targeted cutting takes place on preselected network areas, chosen by safety to the public,
personnel, property and network, system reliability and feeder classification (F1 to F5 as
defined in section 4.2.4). Powerco derives a list of critical feeders for cutting, which are
prioritised on network reliability implications and criticality (e.g. starting at the beginning of
a feeder rather than the end), and these are provided to the contractor to manage.

Construction work for the subtransmission and distribution network.

Typically, this work is performed under either lump-sum or measure-and-value

contracts. In addition, other work types are outsourced for benchmarking purposes.

40

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Vegetation Management

There are three contractors employed under Vegetation Management Agreements

(VMAs). They are charged with looking after all of Powercos tree management
activities. They look after not only the physical cutting but also compliance with
vegetation management regulations. These contractors are Asplundh, Arborco and J&L
Cummings Ltd.

Detailed design for general line construction;

The value of work selected and issued under the alliance agreement is set at a
guaranteed minimum expenditure level. This enables the alliance Service Provider
partner to support the quantity and location of resources to deliver core fault and defect
response services, along with scheduled maintenance and capital works services.
Major projects, typically greater than $500,000, specialist technical services and
vegetation management are performed by other Service Providers.

Other Alliance-Style Agreements

2.9.6.

Customer Initiated Work

Customer initiated work, which is typically the extension of the network to connect
new consumers or the reticulation of new subdivisions, is performed by a number of
approved Service Providers. There is an active market across Powercos regions where
the approved Service Providers compete for this work.

Return to Index

3.
2.10. Transmission Relationship Management

Powerco is a utility network ownership and management business and is

NewZealands largest provincial distributor of electricity and gas. This plan covers
Powercos fixed electricity network assets.

Powerco maintains a close relationship with the National Grid owner and System
Operator, Transpower NZ Ltd, at the following four levels of contact:
Regular peer contact at senior management levels.
Powerco has a resource dedicated to managing day-to-day business for the
technical aspects of the Transpower relationship (and with embedded generators).
This relationship deals with formal requests for information or services from either
Powerco or Transpower. Such requests are formally documented and supported by
technical evidence.
Powercos Network Operations release planners work with Transpowers field
planners to co-ordinate outages and load management for maintenance or
development operations.
Powercos Network Operations control room operators are in direct contact with
Transpower regional control centres in Auckland and Wellington for day-to-day
operations of network interfaces.
Powerco network demand is monitored closely in real time against grid exit point
capacity limits and constraints, as described in Section 7.8.2. The load management
system can automatically control thermal storage loads if preset limits are reached.
Reactive power consumption is being looked at to meet the proposed Electricity
Commission requirements.

Assets Covered

3.1.

Electricity Network Assets

Powerco owns and operates extensive urban and rural electricity distribution networks,
servicing around 310,000 customers in the following parts of the North Island of
NewZealand:
Coromandel
Hauraki Plains
East and South Waikato
Western Bay of Plenty/Tauranga
Taranaki
Wanganui
Rangitikei
Manawatu
Wairarapa
Key Network Stats as at 31 March 2009

Number of ICPs
System Length (km)
System ODV (as at 31 March 2004)
DRC Network Fixed Assets in Use (2006)
Energy Conveyed
System Coincident Maximum Demand

Total

Southern &
Western

Eastern

315,379

143,493

171,886

29,274

10,998

18,276

$950 million

$408 million

$535 million

$1,185 million

4,507GWh

2,224GWh

2,283GWh

764MW

379MW

394MW

Notes:
1. Eastern Region comprises Coromandel, South and East Waikato and Tauranga.
2. Southern and Western Regions comprise Manawatu, Taranaki, Wairarapa and Wanganui.
3. Total values include common assets (Central SCADA and Spares).
4. Values accommodate corrections to the asset register (e.g. found assets).

In this plan, we describe and characterise the network assets by asset type, network
function, geographical region and customer type.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

41

3.2.

The Network Assets by Type and Function

The major type categories of electricity distribution network assets are:
Overhead lines;
Underground cables;
Distribution transformers;
Subtransmission (not zone substation) and distribution switchgear;
Zone substation and Transmission Point of Supply asset; and
Emergency and critical spares.
The major functional categories of the electricity distribution assets are:
Transmission Points of Supply;
Subtransmission network;
Zone substations, including buildings;
High-voltage distribution networks and distribution switchgear;
Distribution substations and transformers;
Low-voltage distribution networks, including consumer service connections;
Protection, SCADA, load-control injection and communications systems; and
Emergency and critical spares.
The electricity distribution assets do not include:
Land and buildings, except for substation land and buildings;
Consumer revenue meters and load control relays, which are owned by other
parties;
Non-network fixed assets, such as motor vehicles, furniture and office equipment,
plant and tools; and
Net financial assets.

42

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Thumbnail statistics about the network by asset type and functional category as follows:

Replacement Cost by Asset Category

2,500,000

Electricity Network Replacement Cost by Asset Type

1,200

2,000,000
Replacement Cost ($000)

1,000

$million

800
600
400
200

1,500,000
1,000,000
500,000
0
Overhead

Underground

Transformers

Switchgear

Substations

0
Assets Valued at ODV Replacement Cost
Overhead Line

Underground Cable

Zone Substations

Distribution Transformers

SCADA/Comms/Ripple

Distribution Switchgear

Spares (Emergency & Critical)

Table 3.1: Key Network Statistics

Key Network Stats as at 31 March 2009

Electricity Network Replacement Cost by Function

Total

Eastern

Southern &
Western

23,089

8,189

14,900

1,200

Length of Overhead Circuit (km)

1,000

Length of Underground Circuit (km)

6,185

2,809

3,376

Subtransmission Circuit Length (km)

1,666

598

1,068

Distribution Circuit Length (km)

16,638

5,905

10,733

Low-Voltage Circuit Length (km)

10,970

4,495

6,475

108

42

66

Zone Substation Transformer Capacity (MVA)

1,503

749

754

Distribution Transformer Capacity (MVA)

2,870

1,376

1,494

$million

800
600
400

Number of Zone Substations and Switching

Stations

200
0

Distribution Substation

Asset Category

Figure 3.3: Replacement Cost by Asset Category.

Figure 3.1 Electricity Network Asset Replacement Cost by Asset Type (2004 ODV Valuation).

Subtransmission

Assets Valued at Current Replacement Cost

Zone Substation & GXP

Low Voltage

Protection & Control

Distribution

Spares (Emergency & Critical)

Figure 3.2: Electricity Network Asset Replacement Cost by Functional Category (2004 ODV Valuation).

Total network replacement costs by asset type category and function (ODV valuation as
at 31 March 2004) are shown in Figures 3.1 and 3.2 above.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

43

3.2.1.

Justification for the Network Assets

3.2.4.

Subtransmission Networks

Electricity distribution networks follow the philosophy that, despite the associated
complications in community, society is more than the simple sum of its parts. Put
another way, we are better off working together than if all people act individually.
One way for consumers to have electricity would be for each one to own their own
generator and run it independently. However, through the benefits of scale and diversity
of consumption, unless consumers live in very remote rural areas, it is usually more
economical for electricity to be generated centrally and for consumers to receive
reticulated power.
Network assets are required to deliver electricity from generating sources to many
consumers. They range from subtransmission assets down to low-voltage reticulation
along residential streets. Powerco uses several voltages for different distribution
distances.
3.2.2.

Transmission Points of Supply

Powercos network connects to Transpowers grid at 66kV, 33kV and 11kV via 27
Transpower points of supply or grid exit points (GXPs). The grid exit points comprise
assets mostly owned by Transpower, although Powerco does own circuit-breakers
and protection and control gear at some grid exit points. The grid exit points supplying
Powercos electricity network are identified in Table 7.14, along with their respective
capacities.
3.2.3.

Justification for the Points of Supply

The grid exit points are the points of interface between Powercos subtransmission
and distribution networks and Transpowers transmission grid. The transmission
grid conveys bulk electricity from the generators throughout NewZealand to local
communities. The grid exit points are the main supply points from which the local
communities are supplied with electricity and where embedded generation is
connected to the grid. To provide a reliable supply of electricity to the subtransmission
network, redundancy is built into the grid exit points in many locations by means
of duplicated incoming lines, transformers and sectioned busbars. A large number
of consumers may lose supply if a grid exit point fails or is shut down, so a highly
reliable configuration is required. However, the levels of security required by Powercos
standards are not always achieved (refer to Figure 7.14).

Figure 3.4: Linesman at work on a 66kV subtransmission circuit near Thames.

The subtransmission networks carry electricity within regions to suburbs or rural

localities. They mostly operate at 33kV, although there are some at 66kV, and they
supply in excess of 100 zone substations. The subtransmission voltages in use are
mainly a result of history and they correspond with the 36kV and 72.5kV maximum
apparatus voltage classes set out by IEC.
Subtransmission network configurations tend to be radial for remote rural areas, loops
or rings for intensive rural or suburban areas, or transformer feeders for industrial or
urban environments.
The majority of the rural subtransmission networks are of overhead construction, on
wood or concrete poles, but there are some cabled routes or sections of routes. Short
lengths of 33kV cable are used at some zone substations. The load density in the
service areas is relatively low and thus many conductor sizes are light.
Underground cables tend to be more common for subtransmission networks in urban
areas. These are typically cross-linked polyethylene-insulated cables, although some
pressure oil-filled cables exist in Palmerston North and Hawera.

44

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 3.2: Key Subtransmission Statistics

Subtransmission
Network Stats as at
31 March 2009

Table 3.3: Key Embedded Generation Statistics

Total

Eastern

Dedicated Export Generation:

Southern & Western

OH

UG

Total

OH

UG

Total

OH

UG

Total

Length of 66kV
Circuit (km)

152

152

152

152

Length of 33kV
Circuit (km)

1,316

114

1,430

370

55

424

946

59

1,005

Total
subtransmission
(km)

1,467

114

1,581

521

55

576

946

59

1,005

The subtransmission networks are described in more detail in Section 3.3, and are
shown geographically on maps in Appendix 2.

Tauranga

40MW

Tararua Wind Farm North

Manawatu

34MW

Tararua Wind Farm South

Manawatu

34MW

Patea Hydro

Taranaki

30.5MW

Todd Energy Mangahewa

Taranaki

9MW

Hau Nui Wind Farm

Wairarapa

8.5MW

Mangorei Hydro

Taranaki

4.5MW

Motukawa Hydro

Taranaki

4.3MW

Carter Holt Harvey

Kinleith

30MW

Ballance-Agri

Kapuni

2.5MW

Ballance-Agri

Mt Maunganui

2MW

Todd Energy McKee

Taranaki

2MW

Origin Pacific

Taranaki

1.2MW

Manawatu

1MW

Industrial Co-generation installations:

3.2.4.1 Justification for Subtransmission Assets

Subtransmission assets carry electricity at 66kV or 33kV from the Transpower or

generating company connection points to zone substations, although other voltages
could be used in the future. To provide a reliable supply of electricity to the zone
substations, redundancy is built into the network in many locations by means of
duplicated or interconnected lines. A large number of consumers would lose supply if a
zone substation fails, so a highly reliable subtransmission network is required. However,
the levels of security required by Powercos standards at zone substations are not
always achieved.
3.2.5.

Kaimai Hydro

Under Construction:

Palmerston North City Council

In addition, there are an increasing number of smaller, embedded generation installations

being commissioned, ranging from 1.8kW micro-systems to 600kW landfill methane
gas-driven units. Details of all new installations are being captured and documented
into Powercos network operating systems. All installations are commissioned under
Powercos embedded generation standards to ensure safety and security.

Embedded Generation

In some locations, Powercos subtransmission and distribution networks have

generation connected that can impact on the planning and operation of the network.
Therefore, while they are not Powerco assets, per se, they still warrant mention in this
plan. Generation with capacity greater than 1MW is outlined as follows:
3.2.6.

Zone Substations

Subtransmission voltage is converted to distribution voltage by means of zone

substations. These are mostly 33/11kV, but a few are 33/6.6kV or 66/11kV. Some
supply 22kV from 11/22kV transformers. A radial feeder network runs from the zone
substations throughout the service area. Zone substation transformer capacities range
from 1.25MVA to 24MVA.
Substations supplying urban/industrial loads typically have two transformers, two
incoming 33kV feeders and anywhere between four and 15 outgoing distribution
voltage feeders, except in the Wanganui and Valley areas where some single
transformer substations are typically used.
For rural substations only one transformer is normally provided, and there are typically
three to six distribution voltage feeders.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

45

3.2.6.1 Justification for Zone Substation Assets

Zone substations convert subtransmission voltage levels of 66kV or 33kV to distribution

voltage levels of 22kV, 11kV or 6.6kV. They are required because voltages above 22kV
are not an economically viable means of distributing electricity to individual consumers
or groups of consumers, except for single customers with a load above about 8MVA.
In many cases, equipment redundancy is provided at zone substations so that supply
can be maintained in the event of an equipment failure and maintenance can be
performed without a supply interruption.
3.2.7.

Distribution Network

Electricity is distributed from the zone substations around suburbs and rural localities
to consumers using a network of 22kV, 11kV or 6.6kV distribution lines or cables. Like
the subtransmission networks, these voltages are mainly a consequence of history, but
they correspond to the 24, 12 and 7.2kV maximum apparatus voltages set by IEC.
The majority of the rural distribution networks are of overhead construction, on concrete
or wooden poles. In suburban areas, there is a mix of overhead and underground
construction, depending on the age of the original reticulation and the planning rules
of the particular local authority at the time. In CBD areas, the distribution network is
almost invariably underground.

Figure 3.5: Main St Zone Substation, Palmerston North.

There are two vector groups in use: Dy11 in the Valley area and the ex-Taranaki
EPB area; and Yy0 in the other regions. The difference in vector groups limits
interconnection between regions and restricts the interchanging of transformers.
Table 3.4: Zone Substation Statistics
Zone Substation Stats as at 31 March 2009

Number of central city zone substations

Total

Eastern

Southern &
Western

Number of suburban or town zone substations

54

23

31

Number of rural and remote rural zone substations

33

11

22

Number of zone substations whose role is predominantly

supplying industrial load

14

Number of switching stations

Total zone substations and switching stations

111

44

67

Overhead distribution circuits usually comprise three conductors arranged in a flat

configuration. The distribution circuits may be accompanied by low-voltage circuits
under-built on the same line. In some rural areas where customers have a need for
single phase supply, circuits may have only two wires. In remote rural areas, Single Wire
Earth Return (SWER) systems may used. The majority of poles are reinforced concrete,
pre-stressed concrete, hardwood or softwood. Railway iron poles exist in some areas.
Overhead conductor types are predominantly aluminium (AAC or ACSR), copper or in
some remote areas, galvanised steel. The present norm is to use pre-stressed concrete
poles with hardwood cross-arms and AAC conductor.
Underground cables tend to have paper or cross-linked polyethylene (XLPE) insulation
and either copper or aluminium conductors. The present norm is to use underground
cables with aluminium conductors and XLPE insulation.
Distribution network configurations are typically highly meshed to a degree dependent
on the density of load. Distribution networks in CBD areas are heavily meshed and, at
the other end of the scale, remote rural feeders may contain little ability to interconnect.

Details of zone substation capacities and security of supply classes are given in Section 7.

46

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Further descriptions of the distribution networks are given in Section 3.3.

Table 3.5: Distribution Network Statistics

Distribution Network
Stats
as at 31 March 2009

Total

Eastern

3.2.8.

Southern & Western

OH

UG

Total

OH

UG

Total

OH

UG

Total

Length of 22kV
Circuit (km)

120

121

120

121

Length of 11kV
Circuit (km)

13,915

1,718 15,633

4,732

1,108

369

9,183

610

9,793

Length of 6.6kV
Circuit (km)

419

427

419

427

Total distribution
(km)

14,454

1727 16,180

4,732

1,108

5,840

9,722

619

1,025

Distribution Switchgear

Distribution switchgear is specialised equipment used for transferring the load

between distribution feeders, moving distribution feeder open points, isolating faulted
components from the rest of the network, or for providing points of isolation to enable
work to be done safely on the distribution network.
In overhead networks, distribution switchgear includes air-break switches, circuitbreakers, links and fuses, which are used to partition or sectionalise parts of distribution
feeders; and reclosers, sectionalisers and fuses, which are used to isolate faulted
sections from the main distribution feeders.

Figure 3.7: Air-break Switch (left) and Dropout Fuse.

Figure 3.6: Rural Distribution Line, Rangitikei area.

Despite their meshed configuration, distribution feeders are always operated in radial
fashion, apart from short periods while feeders are paralleled to transfer loads from one
feeder to another.
The meshed nature of distribution feeders provides a degree of security for maintaining
supply to customers during fault events or maintenance shutdowns.
Distribution network conductor size is selected to provide a mix of adequate capacity
to accommodate the forecast load during backfeed situations, adequate voltage
performance, adequate fault capacity and optimising the energy-loss profile of the
network. Voltage performance can be improved by ensuring that the power factor of
the electricity is adequate, or through voltage regulators.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

47

3.2.8.1 Justification for Distribution Assets

Electricity is distributed to consumers or groups of consumers using lines or

cables operating at between 6.6kV and 22kV, usually 11kV. These voltages can
distribute electricity for many kilometres depending on the load, and switchgear
and transformation to customer voltage is reasonably cost effective. As low-voltage
reticulation is limited to around 400m, distribution voltage feeders constitute a
significant part of the networks total assets.
Switches are installed at intervals along feeders to provide interconnection between
adjacent feeders, to enable supply to be restored in the event of a fault and to minimise
supply interruptions for maintenance.
Distribution capacitors and voltage regulators are required at times to maintain
acceptable voltage on the distribution network and to customers.
3.2.9.

Figure 3.8: Ground-Mounted Switch.

In underground networks, oil switches or ring main units (oil-filled, vacuum or SF6-filled)
are used to sectionalise parts of the distribution feeders. Ground-mounted transformers
are protected through fuse switches as part of the ring main units.
Safety of operation is the main consideration influencing the maintenance and selection
of distribution switchgear.
Distribution capacitors and voltage regulators have been included in this category of asset.
Table 3.6: Distribution Switchgear Statistics
Distribution Switchgear Stats as at 31 March 2004 (2004 ODV)

Air-break Switch and Load-Break Switch

Sets of Dropout Fuses and Links
Reclosers and Sectionalisers

Eastern

5,279

3,085

2,193

29,109

11,031

18,078

184

154

30

5,927

3,634

2,293

Capacitors

39

39

Voltage Regulators

43

35

Distribution Switch or Fuse Switch

48

Total

Southern &
Western

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Distribution Substations

Distribution substation configurations across the regions vary because the

organisations predating Powerco used different substation arrangements. However,
urban distribution substations generally have a ground-mounted transformer with a
low-voltage fuse panel, and may have an accompanying ring main unit. They may be
enclosed within a consumers building, housed in a concrete block walk-in enclosure,
or berm-mounted in a variety of enclosures. Sizes depend on load density, but typically
range from 500kVA to 1.5MVA capacity in CBD areas, and 200 or 300kVA in suburban
areas, or 50 or 100kVA for lifestyle areas.
Pole-mounted distribution substations are usually used in rural areas or in suburban
areas with overhead distribution networks. These substations range in capacity from
15kVA up to 200kVA. Often they may not have low-voltage fuses, they rely instead on
the high voltage fuses to protect against faults or, in urban areas, on the low-voltage
network having covered conductor.
Suburban pole-mounted substations may be mounted on an H-type pole structure.
The present norm for suburban areas with existing overhead networks is to have a
ground-mounted substation with cable connections to the overhead circuits. This
configurations have, a better seismic risk exposure.

Return to Index

All distribution substations have a neutral connection to earth as part of the Multiple
Earthed Neutral (MEN) system. The earth connection may be made through driven
earth stakes or through buried conductor. For safety reasons, it is important that the
earth connection is integral and earth testing is performed at regular intervals.
The distribution substation often contains a maximum demand indicator that allows
monitoring of the historical loading at the transformer. The substation also often
contains a streetlight control relay.
Table 3.8: Distribution Transformer Statistics
Distribution
Transformer Stats as
at 31 March 2004

Rural distribution substations generally comprise a transformer on a pole, pictured

above, left, with associated high-voltage fuse gear, and often low-voltage fuses. Sizes
range from 15kVA to 100kVA depending on load density, with 15kVA generally used
for remote rural areas (60A peak with ADMD at zone substation level of 2kVA, or 13%
utilisation) and between 30 and 100kVA often used for dairy farm or orchard areas.
Some of the smaller pole-mounted transformers are single phase units being fed from
two or three-wire distribution lines; others are three-phase units depending on the
nature of load supplied and on the available distribution network phasing.
Table 3.7: Typical Distribution Substation Application by Transformer Size

Southern & Western

Ground
Mount

Total

Pole
Mount

Ground
mount

Total

Pole
Mount

Ground
Mount

Total

Above 1500kVA
capacity
(industrial)

82

82

82

82

1000kVA,
1250kVA &
1500kVA (large
commercial,
industrial)

157

157

92

92

65

65

500kVA, 750kVA
(commercial,
industrial)

19

735

754

385

392

12

360

372

200kVA, 300kVA
(residential)

762

2,716

3,478

64

1,548

1,612

698

1,168

1,866

100kVA
(residential,
agricultural)

724

2,542

3,266

250

1,776

2,026

474

766

1,240

2,774

2,774

1,252

1,252

1,522

1,522

0 14,921

4,645

4,645 10,276

0 10,276

Transformer Capacity
(kVA)

Typical Application

15kVA

Single Remote Rural Customer

30kVA

Between 1 and 4 Rural Customers with small LV network connecting the

customers

50kVA

Between 5 and 9 Rural or Lifestyle customers, or single large agricultural load.

100kVA

Up to 22 Suburban or Semi-rural customers, or large agricultural load

200kVA

Up to 47 Suburban domestic customers, or industrial load

300kVA

Up to 72 Suburban domestic customers, or industrial load

33kV (zone
substation, ripple
injection)

500kVA

High density suburban domestic customers, industrial or commercial load

Total

750kVA

Industrial or commercial load

1000kVA, 1500kVA

Commercial load in CBD or large shopping centre, industrial process

Above 1500kVA

Special industrial process

Return to Index

Eastern

Pole
Mount

(2004 ODV)

Figure 3.9: Pole-Mounted Substation and Ground-Mounted Substation.

Total

50kVA, 75kVA
(large rural, semi
rural)
30kVA (rural)

14,921

15kVA (rural,
remote rural)

4,611

4,611

1,769

1,769

2,842

2,842

18

16

6,251 30,068

7,987

23,820

3,885 11,869 15,833

2,366 18,199

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

49

3.2.9.1 Justification for Distribution Substation Assets

Distribution substations convert distribution voltages to 230/400V for consumers to

use. They are located close to groups of consumers because these voltages cannot be
distributed more than about 400m without excessive voltage drop.
3.2.10. Low-voltage Assets

Low-voltage network design is dictated by the voltage fluctuation at each consumers

premises. The number of consumers on a particular low-voltage network depends
on the load density, but the distance from the distribution transformer to the furthest
consumer is usually limited to around 400 metres.
In urban situations, 400V link boxes are in place to allow the adjacent 400V circuits to
provide back-up supply in the event of failure of a distribution substation.

Figure 3.11: Street-mounted LV Pillar Boxes.

Figure 3.10: Low-voltage Line.

Low-voltage (LV) assets consist of 400V lines, cables, link boxes and pillar-boxes. By
design, the LV neutral is intended to be maintained at earth potential (as part of the Multiple
Earthed Neutral (MEN) system) and special earth banks may be in place ensure this.
Overhead low-voltage circuits may be mounted on their own poles or they may be
under-built below a distribution network circuit. Low-voltage circuits may have as many
as six conductors, comprising three phases, one neutral, one dedicated streetlight wire
and one hot water pilot conductor. Conversely, low-voltage circuits may have only two
conductors one phase and one neutral for supplying one single-phase customer or a
row of street lights.

Consumers connect to Powercos LV network either by a cable from a service pillar,

usually located on the boundary of the property, or by an overhead service line from a
pole-mounted fuse. Ownership of service lines varies depending on the policy in place at
the time of installation, but they are generally owned by the consumer from the point of
connection to the consumers main switchboard. Ownership of the service line from the
point of supply back to the isolation fuse is usually by the distribution lines company.
Powerco supplies street lights although it does not own street lighting columns, lamps,
reflectors or lamp holders: these are generally owned by the Local Authority.
A controlled street-lighting wire is often provided whichh may be mounted on the Lowvoltage poles or on their own standards. The supply to each streetlight has its own
means of isolation.

Underground low-voltage circuits may comprise a single four- or five-core cable, or a

neutral screened three- or four-core cable. The final core may be used for supplying
street lights. A variety of cable types may be in use, ranging from PVC-covered singlecore conductors, such as Beetle, to stranded aluminium XLPE/PVC insulation.
A variety of historical standards of workmanship are evident, with some examples of
corroding conductor or improper use of bimetallic lugs.

50

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

3.2.11.2 Protection Assets

Table 3.9: Low-voltage Network Statistics

Low Voltage Network
Stats
as at 31 March 2009

Total

Eastern

Southern & Western

OH

UG

Total

OH

UG

Total

OH

UG

Total

Length of 400V
Circuit (km)

3,107

2,107

5,214

120

121

Length of
Streetlight Circuit
(km)

1,084

1,457

2,542

4,732

1,108

369

9,183

610

9,793

Length of Hot
Water Pilot Circuit
(km)
Total Distribution
(km)

Protection relays or integrated controllers are used to detect measure and initiate the
clearance of faults on a high-voltage electricity network.
Protection systems include auxiliary equipment such as current- and voltage-measuring
transformers, communication interfaces, special function relays, auxiliary relays and
interconnecting wiring. They also include circuit-breakers and auto-reclosers.
Protection equipment on Powercos network falls into the following categories:
Electromechanical protection devices;

362

451

813

419

427

Static (analogue electronic) protection devices;

Digital protection devices; and

4,554

4,015

8,569

4,732

1,108

5,840

9,722

619

1,025

Numerical protection devices.

3.2.11.3 SCADA and Communication Systems

3.2.10.1 Justification for Low-voltage Reticulation Assets

Low-voltage assets exist to supply consumers with electricity at 230V phase-to-neutral

or 400V phase-to-phase. Consumers connect to Powercos network either by a cable
from a service pillar or by an overhead service line from a pole-mounted fuse. The
distance that LV networks can physically cover is usually limited to around 400 metres.
The dimensioning of each low-voltage network depends on the economics of supply
over the lifetime of the assets. That is, a marginal change in NPV of LV network cost
should be balanced by a marginal change in NPV of distribution substation cost. This
balance, in turn, depends on the density of consumers, the magnitude of their load
usage and the diversity of their peak demands.
3.2.11. Protection and Control Assets
3.2.11.1 Protection and Control Configuration

The protection system is a key element in the operation of Powerco networks and,
when properly implemented, it can have a significant impact in improving key network
performance indicators.
Key service requirements that the protection system equipment is to provide include:
High reliability the protection equipment must operate correctly when required,
despite not operating for most of its life.
Stability the protection equipment must remain stable when events that look like
faults occur and continue operating the way it should over the length of its life.
Sensitivity, Speed and Selectivity individual protection equipment must operate
with the appropriate speed and coverage as part of an overall protection scheme
Safety and Reliability of Supply the protection scheme must assure safety to
the public and personnel, as well as minimise damage to the network equipment.
Correct operation is the key to providing good supply reliability.

Return to Index

Figure 3.12: Communications System Radio Antennae.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

51

The system control and data acquisition (SCADA) equipment is used to control and
monitor the networks remotely from the Network Operations Centre in New Plymouth.
Powerco operates two SCADA systems, one supplied by Abbey Systems in the
Western region and one supplied by Foxboro in the Eastern region. They comprise:
SCADA master stations located at the Network Operations Centre;
Remote terminal units (RTUs) located at zone substations;
RTUs located on the distribution network. This includes pole-mounted and groundmounted units, radio repeaters and load control plant.
Communication systems consisting of:
VHF, UHF or Microwave radio circuits,
Optical fibre
TelstraClear/Telecom leased circuits,
CDMA and GPRS private IP networks
Powerco-owned copper cable communication circuits
Communication hubs for the Abbey Systems SCADA at Hawera, Wanganui,
Palmerston North and Masterton are connected through a wide area network (WAN)
to the master station located at the Network Operations Centre. Communication hubs
for the Foxboro SCADA system at Te Aroha and Tauranga are linked via a WAN to an
operator station in the Network Operations Centre.
A SCADA replacement project is under way, which will replace the Eastern SCADA
Master Station and Load Control systems with OSI Monarch to provide a common
interface across Powerco. It is intended that this new SCADA platform will be
subsequently rolled out into the Western Region.
Powerco is also re-establishing and enhancing its own VHF Voice Radio network to
remove reliance on the current Fleetlink trunked radio system, thereby increasing radio
coverage while reducing operational costs.
3.2.11.4 Load-control Systems

Load-control systems allow electricity distribution companies to control the profile of

the load demanded by consumers where they have load suitable for control. Audio
frequency signals are sent through electricity distribution networks from ripple-injection
plants. Ripple-receive relays, located at consumer main distribution boards, turn-on or
off certain consumer loads, such as hot water or space heating. Configured well, loadcontrol systems are highly effective at reducing demands at peak times by deferring
non-time-critical power usage. The benefits of load-control systems include more
predictable peak demand magnitudes, fewer peaking generation plants and deferred
transmission and distribution capacity augmentations. The benefits accrue across the
entire electricity sector.

52

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

The load-control system comprises two main parts the injection plant and the receivers.
Powercos injection plants vary in type, technology and age, but generally they are operated
under the control of the SCADA system and inject signals across the electrical network to
control the receivers in the field. Injection plants are installed at some GXPs and some zone
substations. The receivers are located at the point where the controllable load is connected
and are generally owned by a third party, not Powerco.
The load-control system is used to control water heating and other controllable loads,
to manage system peak demand, to provide load smoothing, to operate public lighting
and to meet other customer requirements.
Where load control system is used to control street lights, Powerco provides a control
signal to switch the lights on and off in accordance with the requirements of the lighting
owner. Ownership of the street lighting relay receivers varies depending on area. In
some cases Powerco owns and maintains the relay receivers or local control system, in
others they are 3rd party owned.
3.2.11.5 Energy Measurement Systems

Powercos network includes metering voltage and current transformers at 63

installations. The voltage and current transformers outputs are used to power
measurement devices and, in some cases, to operate other substation protection
and control devices. The metering units are calibrated and maintained to meet the
requirements of the electricity Governance Rules and Regulations. The metering units
are embedded in the distribution network and comprise:
Outdoor metering units, pole-mounted or ground-mounted, which are part of the
network switching equipment; and
Components of zone substations, including current transformers mounted on highvoltage busbars, and voltage transformers forming part of the substations auxiliary
voltage supply.
3.2.11.6 GXP Meters

High-accuracy meters exist at grid exit points for checking the Transpower energy
reconciliation meters to determine demand for load control purposes, SCADA
indication purposes and recording power factor. Most of these meters are now around
20 years old or older.
3.2.11.7 Justification for Protection and Control Assets

The protection, SCADA, radio, microwave and cable communication systems are used
to protect, monitor and control the status of the network and to enable some assets to
be operated remotely. The overall replacement cost of these assets may be lower than
other categories but the amount of strategic direction and careful design is significant.
Load control equipment benefits the entire electricity industry by improving the load
factor of electricity demand. An improved load factor means less need for expensive

Return to Index

peaking generation and lower installed capacity of transmission equipment and some
distribution network equipment. With Demand Side Management (DSM) taking on
increasing importance, the need for effective and reliable load control systems is
becoming more important.

3.3.

Powerco has two contiguous networks, but within these there used to be several
previously separate distribution network entities. By virtue of their history, each of these
network parts has its own unique characteristics that need to be taken into account
in the planning and network management process. The subtransmission networks of
each network are shown in Appendix 2.

3.2.12. Emergency and Critical Spares

Emergency spares are held to provide a level of immunity in the network operation
against the (catastrophic) failure of assets. This may be for prescribed events, although
one has to be careful to know where to stop. Emergency spares include things like
transformers of assorted sizes, poles of different types, fuses and fuse elements, crossarms, insulators, bolts, pillar boxes, switch units, joint kits, compression joints and
heat-shrink.
Critical spares are specialised parts that are kept to keep an existing asset going. They
may be consumables as part of a maintenance regime, or special parts that need to
otherwise be specially manufactured due to obsolescence or have a long lead time.
These may include tap changer parts, pressure oil cable joint kits, transformer bushings
or switchgear parts.
3.2.12.1 Justification for Emergency and Critical Spares

Emergency spares are held to provide a level of security in the network against an
unexpected failure of network assets that could be difficult to obtain (or in the quantities
needed) at short notice. Without these holdings, consumers could be exposed to long
periods without power supply. Emergency spares may be held for a prescribed type of
event.
Critical spares are held to provide a level of security against the unexpected failure of a
unique or specialised piece of equipment whose parts may be difficult to source at short
notice. Critical spares may also be specialised consumables that a certain asset needs as
part of its ongoing regular maintenance regime. Without critical spares, a network asset
(and therefore the network) is exposed to excessive risk of failure.
3.2.13. Back-up Generation Equipment

Back-up diesel generation is available for supporting the Network Operations Centre in
New Plymouth and the operational hub at Palmerston North.
Powerco owns around 20 small (5kVA) portable generators to provide customers with
special power supplies in extreme circumstances where supply may not otherwise be
able to be provided for long periods, such as in severe storms.

Area Network Descriptions

3.3.1.

Manawatu Network

The Manawatu region has three areas, based on the areas of the electricity supply
authorities that used to operate them. These are Manawatu, Palmerston North and
Tararua.
The Manawatu rural subtransmission network (ex-Manawatu Oroua EPB) consists of
an open 33kV ring feeding four substations around the periphery of Palmerston North
and 33kV radial feeders to Sanson and Kimbolton via Feilding. The Feilding substation
supplies all Feildings load. The 33kV circuits are predominantly overhead construction
on concrete poles.
Outlying suburbs and rural areas close to Palmerston North are supplied from the
Kelvin Grove, Milson, Kairanga and Turitea substations. These substations are located
on the periphery of Palmerston North. All of these substations are supplied by two 33kV
circuits from either Linton GXP or Bunnythorpe GXP. Turitea Substation has neutral
earthing resistors to limit fault levels.
The Palmerston North urban (ex-Palmerston North MED) subtransmission network
comprises three 33/11kV zone substations. Keith Street substation, at the northeastern periphery of the urban area of Palmerston North, is supplied by two 33kV
circuits from Bunnythorpe and an interconnection to Kelvin Grove substation. Pascal
Street substation, at the western end of the City, takes supply via 33kV circuits from
Bunnythorpe and Linton. Two circuits from Keith Street and a single circuit from Pascal
Street supply Main Street substation. All 33kV subtransmission circuits are underground
in the city area. 33kV circuits outside this area are of overhead construction on
concrete poles.
The Tararua network, formerly operated by the Tararua Electric Power Board, consists
of four zone substations supplied from Mangamaire GXP. It has two 33kV circuits
feeding Mangamutu substation, and a 33kV ring feeding zone substations at Pongaroa,
Alfredtown and Eketahuna. Auto transformers exist at these zone substations, which
will be converted to standard Yy0 when the opportunity arises.

Mobile and temporary generators are hired when needed for minimising the customer
impacts from planned shutdowns or when needed for emergencies.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

53

3.3.2.

switching station. At 11kV, the GXP supplies a large suburban and surrounding rural
area including Greerton, Pyes Pa and Bethlehem out to the Kaimai Range.

Taranaki Network

The Taranaki area comprises three areas, based on the areas of the electricity supply
authorities that used to operate them. These are New Plymouth, Taranaki and Egmont.
The New Plymouth subtransmission network consists of two 33kV cables supplying
City Substation from Carrington GXP, two 33kV lines from Carrington GXP and one
33kV line from Huirangi GXP supplying Bell Block Substation, two 33kV cables owned
by Powerco linking New Plymouth Power Station (NPPS) and Moturoa GXP, and two
33kV lines from Huirangi GXP to Mamaku Rd Substation.

3.3.3.

Kaitimako GXP supplies the substation at Welcome Bay at 33kV. It is capable of

supplying Atuaroa substation and interconnecting with Tauranga GXP.
Te Matai GXP supplies Te Puke, Atuaroa and Pongakawa substations. A 33kV line
interconnects Welcome Bay and Te Puke substations.
3.3.4.

The Taranaki subtransmission network is an interconnected network supplying 12 zone

substations from Huirangi GXP and Stratford GXP. The distribution network around
Inglewood operates at 6.6kV conversion may take place to 11kV or to 22kV.

The Valley region covers the eastern area of the Waikato as far south as Kinleith, plus
Waihi and the Coromandel Peninsula. Several small towns have some industrial load,
but the rural area is predominantly dairy farming load.

The Egmont subtransmission network supplies the south Taranaki area and consists of
Cambria Substation supplied via two oil-filled 33kV cables, and four zone substations
supplied via two 33kV line closed rings from Hawera GXP. It also supplies three zone
substations from Opunake GXP via an interconnected 33kV line network. One of these
feeds the Oaonui Shore Station.

The region has five grid exit points supplying Powercos network at 66, 33 and 11kV.
Kopu GXP supplies six substations on the Coromandel Peninsula and the Hauraki
Plains at 66kV with a mixture of ring and radial feeds.
From Waikino GXP, 33kV lines run to Waihi, Whangamata, Waihi Beach and Paeroa
also in a mixture of ring and radial feeds.

Tauranga Network

Waihou GXP supplies the Piako area. A 33kV meshed network supplies Morrinsville,
Waitoa, Farmer Rd, Piako and Walton Substations, although Walton and Morrinsville
are operated in radial configuration. Tahuna is a supplied via a radial spur from Waihou
GXP. Mikkelsen Rd, adjacent to Waihou GXP, is supplied by twin 33kV connections.

The Tauranga region covers the western Bay of Plenty area from near Athenree, north
of Katikati to Otamarakau, east of Te Puke. Tauranga has significant industrial load
and a major port. The Bay of Plenty area has predominantly dairy and orchard load,
particularly kiwifruit and avocados.

Hinuera GXP supplies the area around Matamata, Tirau and Putaruru. The network
consists of single radial feeds to Tower Rd, Browne St and Waharoa, and Putaruru via
Tirau. This network can be partially backed up via a 33kV line between Walton and
Browne St.

Tauranga has two areas based on the electricity supply authorities that used to operate
them. These are the ex-Tauranga Electricity Limited network supplying Tauranga CBD
and the surrounding area, and the former Tauranga EPB network, which supplies
the remainder. These areas used to be separately operated due to being supplied by
transformers with different vector groups, but the Dy11 transformers have now been
replaced with Yy0 units, and integration of the networks is proceeding.
The subtransmission network in the Tauranga region is connected to the grid via
Transpower GXPs at Kaitimako, Mt Maunganui and Tauranga, where supply is taken at
33kV and 11kV and Te Matai, at 33kV. It also connects to generation from the Kaimai
hydro scheme and generation at a fertiliser manufacturer.
Mt Maunganui GXP supplies Matapihi, Papamoa and Triton substations at 33kV by
double circuit lines and cables. A harbour bridge cable links Triton with Tauranga City
substation at 33kV. Another zone substation is under construction at Omanu.
Tauranga GXP supplies the substations at Waihi Rd, City, Otumoetai and Matua,
Omokoroa, Aongatete, Katikati and Kauri Point by a network of lines and cables
at 33kV. Trustpowers Kaimai generation feeds into the 33kV network at Greerton

54

Valley Network

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Kinleith GXP supplies at 33kV and 11kV. The 33kV network supplies two substations at
Tokoroa, Maraetai Rd and Baird Rd, and the two substations associated with the water
pumping stations for the Kinleith mill at Midway and Lakeside.
Supply at 11kV is taken from Kinleith GXP for the Kinleith mill site. A co-generation
plant is connected to the Kinleith GXP.
3.3.5.

Wairarapa Network

The Wairarapa region covers the Wairarapa area from south of Eketahuna to Cape
Palliser. Masterton has significant industrial load. The Wairarapa area has predominantly
dairy farming load, although there are also many orchards and vineyards.
The network is supplied from Masterton GXP and Greytown GXP.

Return to Index

Due to the higher load currents, there tends to be limited load transfer capacity through
the 400V networks. Typically radial 400V feeders from the transformer to the consumer
are provided. In some industrial subdivisions 400V interconnection between feeders is
provided using either 240mm2 or 185mm2 aluminium cable, but load transfer is limited.

Masterton GXP supplies Akura and Te Ore Ore Substations in a ring. A single line
eastwards from Te Ore Ore supplies Awatoitoi and Tinui Substations. It supplies Norfolk
and Chapel Substations on a ring, which is part line and part cable. It also supplies
Clareville Substation via two lines and Gladstone Substation via a single line.
Greytown GXP supplies an interconnected line network which supplies Featherston and
Martinborough Substations by two lines each, and Kempton, Hau Nui and Tuhitarata
Substations by one line each.
3.3.6.

3.4.2.

There is a significant network owned and operated by Powerco supplying 33kV

subtransmission and 11kV distribution assets located at the Carter Holt Harvey Pulp
Paper Mill at Kinleith, near Tokoroa. The network is highly interconnected, beginning
at the cable terminations of the Transpower switchgear at the Kinleith GXP, and
ending at the low-voltage terminals of the supply transformers. The system is mainly
underground, comprising 29 11kV feeders, and including one 33kV circuit that supplies
Midway and Lakeside substations.

Wanganui Network

The Wanganui region covers the area from Waiouru in the north to Bulls in the south,
and includes the Rangitikei and Wanganui areas. The Wanganui network consists
of four areas, Wanganui, Marton, Taihape and Raetihi. Wanganui and Marton have
significant industrial load. The rural area has a predominantly mixed farming load.
The Wanganui area is supplied from two Transpower GXPs at opposite sides of the city,
Wanganui GXP and Brunswick GXP. A 33kV line runs between these, passing through
substations at Peat St, Castlecliff, Beach Rd and Taupo Quay on the way. Hatricks
Wharf Substation is connected by 33kV line to Wanganui GXP and by 33kV cable
and line to Peat St. A radial line connects Peat St to Kai Iwi Substation, and another
connects Brunswick GXP to Roberts Ave Substation. A radial line connects Wanganui
GXP to Wanganui East Substation, and two short radial lines connect Wanganui GXP to
the adjacent Blink Bonnie Substation.
The Marton area is supplied from Marton GXP. One line connects Marton GXP to Bulls
Substation. Another line connects Marton GXP to Arahina and Rata Substations, and a
short cable connects Marton GXP to the adjacent Pukepapa Substation.
The Taihape area is supplied from Mataroa GXP. It is connected to Taihape Substation
by three lines, two of which are in parallel, to form two circuits, and it is connected to
Waiouru Substation by a single line.
The Raetihi area is supplied from Ohakune GXP. There is a small, embedded hydro
generator near Ohakune.
3.4.

Network Assets by Prevailing Customer Type

3.4.1.

Industrial and Commercial (F1)

The network configuration for large industrial customers (F1 in Tables 4.2 and 7.3)
is commensurate with the nature and capacity of the customers load. Typically, for
customers with a demand above 3MVA, dual 11kV feeders are available, providing a
no-break supply for maintenance, or backup in the event of a single fault. Automated
or remote control of 11kV switching is provided for some major customers. The cable
and conductor sizes reflect the load size. In general, newer areas have underground
reticulation, while older areas are overhead.

Return to Index

Kinleith Mill Site

There are 230 indoor 11kV switches and circuit-breakers grouped into 32 switchboards
that range in size from four to 24 panels, 64km of cable circuits comprising of 33/11kV,
24.6km of overhead line that comprising of 33/11kV, and 136 transformers that provide a
total of 195 MVA of distribution capacity converting 11kV to 3.3kV, 575V, 415V, or 440V.
3.4.3.

Te Rerehau Windfarm Site

An underground cable reticulation system links wind turbines in the Manawatu area
and connects them to the Tararua 3 transmission GIP. This comprises 28km of 33kV
underground cable, presently 65 33kV/400V distribution transformers, an optical fibre
network and a 33kV switching station.
3.4.4.

Large Customers

Customers with an installed capacity of greater than 1.5MVA (owned by Powerco and
excluding Kinleith) are characterised as follows:
Region

Number of Large Customers

Total Powerco owned installed capacity

Eastern Region

41 customers

Over 128 MVA

Western Region

51 customers

Over 187 MVA

The large customers and their impacts on network operations are characterised by
industry sector below. Generally, the type of asset maintenance applied does not depend
on whether the assets are dedicated to the customer or not, and the maintenance
regimes applicable are described in the Asset Life cycle section. However, the available
windows for maintenance are dictated by the special needs of each customer.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

55

Eastern customers > 1.5MVA installed capacity

Western customers > 1.5MVA installed capacity

Fonterra Morrinsville

Fonterra Mainland Products

90

Fonterra Tirau

Fonterra - Pahiatua

80

Fonterra Waitoa

Fonterra - Longburn

60

Open Country Cheese

Silver Fern Farms

50

Tatua Dairy

Industrial Customer Installed Capacity by Sector

Installed Capacity (MVA)

100

70

40

3.4.6.

30
20
10
0
Dairy

Western

Timber
Processing

Food
Processing

Ports

Manufacturing

Chemicals

Government

Eastern

Timber Processing Sector

Timber processing facilities may be located in remote areas where there is low network
security. This means that outage planning may involve extensive customer consultation
and that voltage fluctuations may occur.
Eastern customers > 1.5MVA installed capacity

Western customers > 1.5MVA installed capacity

CHH - Kopu

Kiwi Lumber - Sawmill

Figure 3.13: Installed Transformer Capacity by Large Customer Sector.

Kiwi Lumber

Juken Nissho

Notes:

Pacific Pine

1. Timber processing sector includes sawmills and wood processing plants. It excludes the Kinleith
Pulp and Paper Mill site.

Pukepine Sawmills

2. The Food Processing sector includes meat and chicken industries, flour industries, major cool stores,
major bakeries and breweries.
3. The Manufacturing sector includes vehicle assembly, plastic pipeline, carpets and electrical cable
industries.

Thames Timber
Fletcher Challenge Forests
Claymark Katikati

4. The Chemical sector includes oil and gas process industries.

5. The Government sector includes the NZ Defence Force Bases, University Campus and Research
facilities.
6. Some customers own their own transformer capacity.

The size of these customers puts them on feeders with a Powerco security class of F1 or
F2, which requires a security of supply of at least AA (restoration time of 45 minutes).
3.4.5.

Dairy Sector

The dairy industry electricity peak demands occur in spring. The industry is reliant on a
reliable electricity supply, so shutdowns for maintenance or network upgrade activities
have to be planned for the dairy dry season, especially in South Waikato and South
Taranaki.
At an individual farm level, operations are intensifying and amalgamating. There is
greater use of irrigation and new technologies. The overall impact is that the load is
increasing and the operations require higher reliability of supply and better quality
of supply than was previously the case. This is consuming existing spare capacity,
creating a greater onus on effective network planning and operations.

56

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

3.4.7.

Food Processing Sector

Outage requirements for customers in this sector can usually be co-ordinated if sufficient
notice is given. Unplanned outages can lead to spoiled products, causing expensive
wastage and staff disruption. Coolstores are significant growth packages and can have
heavy, peaky loads. Careful planning is needed to ensure adequate backfeed capability
is allowed for these loads. Backup capacities to the full site capacities are becoming
more difficult to provide due to the size of the loads.
Eastern customers > 1.5MVA installed capacity

Western customers > 1.5MVA installed capacity

Apata Coolstores

Ernest Adams

Affco Rangiuru

Canterbury Meat Packers

Baypac

Riverlands Manawatu

Champion Flour

Foodstuffs

Eastpac Coolstores

Foodstuffs Coolstores

Greenlea Meats

DB Breweries

Huka Pak Totara

Tegal Foods

Inghams Enterprises Mt Maunganui

Goodman Fielder Meats

Inghams Enterprises Waitoa

International Malting Company

Cold Storage Tauranga

Yarrows Bakery

Silverfern Farms

Affco NZ Feilding

Sanford

Affco NZ Wanganui

Trevalyan Coolstore

Riverlands Eltham

Wallace Corporation

Aotearoa Coolstores

Seeka

ANZCO Foods

Cold Storage International

3.4.8.

3.4.9.

Eastern customers > 1.5MVA installed capacity

Western customers > 1.5MVA installed capacity

Port of Tauranga

Westgate Transport

Manufacturing Sector

The manufacturing sector is dependent on the prevailing general economic conditions

and the economic conditions within the industrys particular niche. The requirements on
the electricity distribution network can therefore vary accordingly.
Eastern customers > 1.5MVA installed capacity

Western customers > 1.5MVA installed capacity

A & G Price

MCK Metals Pacific

Fulton Hogan

Ballance Agri-Nutrients

Thames Toyota

Olex Cables NZ

Katikati Quarries 2001

Iplex Pipelines NZ

Waihi Gold

Taranaki By Products
Waters & Farr
Cavalier Spinners
Van Globe

3.4.10. Chemicals Sector

The chemical sector is heavily reliant on a reliable supply of electricity with few voltage
disturbances. Some of the machines in this industry can create large voltage dips on
the network when they start. This needs ongoing co-ordination with the customers.
Eastern customers > 1.5MVA installed capacity

Western customers > 1.5MVA installed capacity

Ballance (Mt Maunganui)

Shell Exploration NZ - Pohokura

Evonik

Methanex NZ Waitara Valley

Ballance (Morrinsville)

Shell Todd Oil Services - Oaonui

Transportation Sector

Methanex NZ Waitara Pumps

Port operations are based around shipping movements and the quick turnaround of
ships is important. When ships are in port, the facilities make heavy demands on the
electricity distribution network and at these times a highly reliable supply is needed to
ensure a fast turnaround. A secure supply (N-1) is therefore needed by ports. Continued
drive for efficiency and increasing demands in this sector has been squeezing the
windows available for maintenance. Both of the main ports supplied by Powerco are on
growth paths. The port in Tauranga is highly competitive with a large expansion planned.
Improvements in the capacity of the rail link between New Plymouth and Marton have
occurred but the closure of the rail link from Stratford to Taumarunui could constrain
Westgates future growth path.

Origin Energy Waihapa TAG

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

57

3.4.11. Government Sector & Research Facilities

3.4.13. Residential Networks

Some of the Government sector organisations have on-site generation and this needs
to be co-ordinated with Powercos network operations.
Eastern customers > 1.5MVA installed capacity

Western customers > 1.5MVA installed capacity

Chapel St Sewage Plant

AgResearch

Tauranga Hospital

Dow AgroSciences NZ

Bay of Plenty Polytech

Taranaki Healthcare
Wanganui DC - Waste Water Treatment
NZDF Army Training Waiouru
TEI Works
Fonterra Research Centre
NZDF Linton Military Camp
MidCentral Health
NZDF RNZAF Base Ohakea
Massey University Turitea Campus

3.4.12. Central Business District Networks

The networks in the Tauranga, Palmerston North, New Plymouth, Wanganui, Tokoroa
and Masterton central business districts (CBDs) consist of highly interconnectable 11kV
radial feeders. Switching points are provided at most 11kV/400V transformer locations.
There is a high level of interconnection between adjacent 11kV feeders (F2 in Tables 4.2
and 7.3). The reticulation in the CBDs is 100% underground, with cable sizes ranging
from 70mm2 to 300mm2, aluminium or copper. In some areas there are express
feeder inter-ties of up to 630mm2. In key locations 11kV switch automation is being
progressively introduced, and provision for future automation is being provided at less
critical locations. This configuration allows quick restoration of supply in fault situations.
The 400V network consists of radial circuits with a high degree of interconnection. The
interconnection between distribution substations is made at junction boxes located
along the 400V circuits. The cable sizes are typically large (up to 0.5 sq inch copper).
The 400V network is 100% underground in the CBDs. Load can be transferred across
the 400V network in some locations.
The main streets of most towns and suburban centres in Powercos network have a
typical urban network configuration. In these centres the business district is largely or
completely underground.
Large retail business customers include 88 The Square in Palmerston North, Bayfair in
Mt Maunganui and Centre City Shopping Centre in New Plymouth.

58

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Both 11kV and 400V residential distribution networks (F3 in Tables 4.1 and 7.3)
are interconnectable radial networks. The level of interconnectability is moderate,
commensurate with the reliability requirements. In general, newer areas have
underground reticulation while older areas are overhead. In some urban areas, the
distance and/or load between switching points is such that Powercos planning criteria
are not fully met.
Low-voltage networks in residential areas tend to be extensive, with transformer
capacities of around 200kVA typically supplying 50 or more ICPs. Load can be
transferred across the 400V network in some locations either through link boxes or
through temporary jumpers.
3.4.14. Rural Networks (F4)

The rural network consists of 11kV lines with isolators installed every 1-2km in some regions
(F4 in Tables 4.1 and 7.3). This enables flexibility of switching, but presents a maintenance
and reliability liability. Generally, 11kV spur lines may be fused with dropout fuses. There
is some interconnection between feeders to allow backfeeding in maintenance and fault
situations. Feeders are overhead lines on wooden or concrete poles.
Line reclosers and sectionalisers are used in rural areas. Typically reclosers are placed at
the transition between urban and rural loads and between rural and remote rural loads.
Sectionalisers are used on some spur lines. Many reclosers are SCADA-controlled.
Low-voltage networks may be short supplying up to around five ICPs and transformer
capacities of up to around 100kVA are common.
3.4.15. Remote Rural Networks (F5)

Remote rural feeders are generally radial (F5 in Tables 4.2 and 7.3), with limited or
no interconnection between adjacent feeders. In some areas, 11kV isolators and
11kV dropout fuses are used to provide discrimination and sectionalising under fault
conditions. Some remote areas are supplied by two-phase lines, and a small number
are supplied by single-wire earth return (SWER).
Due to the scattered nature of the population there are no significant rural 400V
networks. Typically, the 400V network extends 100-200m under the main distribution
voltage lines from the distribution transformer to supply nearby loads. Distribution
transformers would typically have a capacity of 15 or 30kVA.
Many of the remote rural coastal communities have been undergoing subdivision,
leading to stress on the electricity networks that supply them, particularly during
holiday periods. Furthermore, there is a tendency that the consumers moving to
these communities are used to urban supply reliability and have consequent high
expectations.

Return to Index

3.5.

Network Asset Age and Condition

3.5.1.

The Assets by Age

Piecemeal replacement almost all of Powercos renewal projects are of piecemeal

type, because it is not economically efficient to replace assets that have not reached
the end of their lives;

The average design life and age of the distribution network is shown Table 3.10. The
rules that the ODV Handbook uses for determining equipment age have been applied.
For example, line age equates to pole age.

Work complications constraints on shutdown times or the need to do renewal or

upgrade work live. Severe complications can arise for zone substation switchboard
replacements or for pole replacements involving multiple circuits;

Asset replacement cost versus age graphs are presented below and indicate the overall
age of the assets. Certain groups of assets have unknown ages because installation
records have been lost or installation dates were not recorded. Asset numbers shown
for the last three to four years are low, as there have been delays in getting installed
assets recorded in the GIS system, from which these graphs are produced.

Non-competitive costs in some rural areas Powerco is unable to obtain the degree
of competition among its contractors that is available in other areas; and

Since the preparation of the 2007 AMP, much work has been done to re-estimate
the ages of some of the assets, particularly distribution switchgear. This has involved
investigating the type of switch and comparing the previously estimated age with the
known periods of manufacture for each switch type. The overall result is more targeted
age estimations, resulting in smoothed and more accurate age profiles.

Low asset capital efficiency certain work types, by their nature, have a low capital
efficiency. An example is line reconductoring or pole replacement projects. While
these tend to have a capital efficiency of between only 15 to 40% (refer to Section
6.4), they still usually represent the best renewal or development option.
Total Asset Replacement Cost vs Age
$120,000
$100,000

Average Age
at 30/06/06
(Weighted by
Cost) [1]

Overhead Line

57.16

30.32

Underground Cable

49.29

22.07

Distribution Transformer

55.00

24.80

Subtransmission and Distribution Switchgear

37.24

17.92

Zone Substation Assets

45.86

27.45

Note 1: Average age has been calculated using improved data integrity over the September 2007 plan.

Age profiles give a macro-perspective of asset replacement projections, although actual

asset replacement is normally driven from known asset condition. While longer-term
renewal forecasts need to be made on the basis of age profiles, actual commitment to
renewal projects is based on asset condition.

$80,000
$60,000
$40,000
$20,000
$0
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
60
62
64
66
68
ODL

Asset Category

Average Design
Life (Weighted by
Cost)

Replacement Cost ($000)

Table 3.10: Average Age of Assets

Substations

Switchgear

Transformers

Underground

Overhead

Age (Years)

Figure 3.14: Total Asset Age Profile.

The age profile for the entire infrastructure asset base based on current replacement
costs, presented as a nine-year moving average, is given in Figure 3.14 above.

The age profiles have been derived from the electricity network ODV, using standard
replacement costs and multipliers. The standard ODV replacement costs are based on
optimum conditions six years ago that were rarely achieved in practice, including massscale construction of the full asset under fully competitive conditions by an efficient
new entrant under brownfield site conditions. Other than greenfield subdivisions, actual
construction conditions are almost always more adverse than this, and the following
factors tend to increased replacement cost:

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

59

Current experience has shown that actual replacement costs are significantly higher
than the ODV replacement costs. Actual current replacement costs assumed are as
follows, but even these do not represent the present true costs of replacement:
Overhead lines:

2.9 times ODV unit rate

Underground cables:

1.9 times ODV unit rate

Distribution transformers:

1.6 times ODV unit rate

Distribution switchgear:

1.6 times ODV unit rate

Zone substation equipment:

1.7 times ODV unit rate

The bars on the graph in Figure 3.14 and the following graphs show the current
replacement cost calculated on these figures.
3.6.

Overhead Lines

3.6.1.

Overhead Lines Age Profile

In Figures 3.15 to 3.19, the bar graphs show the unsmoothed asset age profiles and
the green line is a nine-year moving average. How the unknown age assets have
been assigned can be clearly seen. A single bar at the right-hand end of the graphs
represents assets over their standard design life. It should be noted that equipment
with different design lives are included in these graphs. Graphs showing replacement
cost against year of replacement are included in Sections 6.6 to 6.11.

3.6.2.

Overhead Line Condition

Condition monitoring, shows that most lines are in the condition expected for their age,
although some in harsh coastal areas have deteriorated more quickly than expected.
Steel core corrosion in ACSR conductors is a problem in coastal areas, and some older
copper conductors have become work-hardened by wind movement and load cycling.
In Tauranga, there are some instances of concrete poles with top load strengths not
clearly established. These poles are allowed to remain in service unless additional load
is required on the pole head due to heavier conductors. In the Hawera area, some
concrete poles were manufactured with salt contaminated sea sand. Many of these
have spalling exposing the reinforcing steel. These are monitored to ensure they have
sufficient strength for the loads they are carrying.
In some places, cross-arms are too short for the spans of conductors they support
resulting in conductor clashing. These are rectified when they are identified as
problems.
Some 33kV insulators (batches from the 80s and 90s) appear to have a specific failure
mode where the neck breaks off the top shed. Multiple-piece 33kV pin insulators
mounted on steel cross-arms with heavy conductors appear to fail by splitting or
breaking the cement between the shells. These insulators are replaced when this failure
mode arises.

Overhead Line Replacement Cost vs Age

$90,000
$75,000
Replacement Cost ($000)

Figure 3.15 shows the age profile of overhead line assets based on the current
replacement cost. It includes overhead lines and their replacement cost multipliers,
overhead service connections and associated traffic management. There is a large
hump of replacement value among line assets with an age of between 15 and 35 years.
Lines have a standard useful life of between 45 and 60 years and the graph indicates
that a wave of line renewal activity is coming over the next 20 years. This is in common
with many other line companies in NewZealand, Australia and the UK.

A tendency to fail has been noted on kidney strain insulators, although wholesale
replacement is not considered justified. These insulators tend to be located on older
wooden poles and programmed pole replacement will eventually phase them out.
Polymer strain insulators are used on some replacement structures.

$60,000
$45,000
$30,000

Cross-arm and insulator replacement is being undertaken to maintain the condition at

the overall line asset.

$15,000

0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
ODL

$0

RC - Valued at Current Cost of Renewal

9 Year Average RC - Valued at Current Cost of Renewal

Age (Years)

Figure 3.15: Overhead Line Age Profile.

60

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

3.7.

Underground Cables

3.7.1.

Underground Cable Age

Sections of 33kV cables supplying the Tauranga CBD have been identified as having
screens that could have overheated at some stage during their lives. Sections of this
cable have been replaced, but with the increasing load a project is being scoped to
move Waihi Rd on to its own 33kV feeder transformers.

Underground Cable Replacement Cost vs Age

For other 33kV cables, no replacement due to age or condition is expected during the
period covered by this plan.

$35,000

Replacement Cost ($000)

$30,000

3.7.3.

$25,000

Distribution cables are generally in good condition, commensurate with their age.
Underground construction commenced in the 1950s. The early cables were paperinsulated, lead-covered (PILC) type, which have a life expectancy of 70 years provided
they are not moved. Some early 11kV PILC cables in the New Plymouth area have
brittle lead sheaths, prone to cracking. These cannot be moved, and where cables are
grouped in a common trench, jointing is difficult.

$20,000
$15,000
$10,000
$5,000

ODL

65

60

55

50

45

40

35

30

25

20

15

10

$0

RC - Valued at Current Cost of Renewal

9 Year Average RC - Valued at Current Cost of Renewal

Age (Years)

Figure 3.16: Underground Cable Age Profile.

Figure 3.16 shows the age profile for underground cable assets based on current
replacement cost. It includes underground cables, underground service connections
and associated traffic management. Prior to 35 years ago, little cable had been
installed. The age profiles show that little cable replacement will be required as cables
have a standard life of 40 to 70 years. However, an increasing number of early XLPE
insulated cables are being found to need replacement before their standard lives
because of water treeing in the insulation, screen corrosion, poorly adhering semicon
layers or other manufacturing defects.
3.7.2.

Distribution Cable Condition

Other cables that may require early replacement are aluminium XLPE cables installed
in the late 1960s and 1970s. These were first-generation XLPE cables, manufactured
using tape semi-conducting layers and water-curing. This, coupled with a lack of
knowledge and subsequent poor handling of cables during installation, has resulted in
some cable failures.
Early 11kV XLPE cables, installed prior to 1975 in the Tauranga area, especially smaller
25mm cables, have a tendency to fail. A replacement programme is proceeding for
circuit segments where the reliability impact of a failure is expected to be significant.
The problem appears to be poor installation methods and exposure to fault levels
above their rating, as well as poor cable manufacturing.

Subtransmission Cable Condition

In the CBDs of main centres such as Tauranga and Palmerston North, the sustained
levels of load growth have meant that the distribution cables do not now have adequate
capacity to provide a full N-1 security level. While feeder inte-tie projects have been
completed in response, the situation continues to be monitored. The Tauranga CBD
distribution network is being upgraded with a 300mm Al cable ring around the CBD.

Subtransmission cables and distribution cables are generally in good condition,

commensurate with their age. The majority of failures are caused by third-party damage
by contractors excavating in road reserves. Some failures have been attributed to
joint failure, poor manufacture of early XLPE cables and poor installation.

In some cases, non-compressed sleeves have been used for jointing compressed
11kV conductors, leading to the possibility of joints not being correctly or adequately
compressed. In other cases, joints using early heat shrink methods (tin can joints) are
starting to fail. Instances of this issue will be rectified when they fail.

The 33kV oil-filled cables in Palmerston North are around 40 years old. Design
shortcomings in joints of the type used on these cables have been identified elsewhere,
and an investigation is ongoing to determine whether the cables need derating to
protect the joints. They may need to be replaced prematurely if the cost of fault repairs
becomes uneconomic or if the derating required is too severe.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

61

3.7.4.

LV Cable Condition

3.8.2.

No 400V cables were installed prior to the 1950s. Early cables were PILC construction
with a 70-year expected total life.
Powercos inspection of older 400V cables during excavation works indicates that they
are generally not ageing more than expected. Some 400V cables in the Hawera area
have badly corroded termination lugs caused by bimetallic corrosion. It is not expected
that any significant replacement will be required prior to 2010, except for some singlecore aluminium conductor cable with only a single layer of insulation. It is possible that
the insulation breakdown may require its replacement prior to the forecast replacement
date. This is being monitored.
3.8.

Distribution Transformer

3.8.1.

Distribution Transformer Age

Figure 3.17 shows the age profile for distribution transformer assets based on current
replacement costs. It shows that the distribution transformer population is relatively
young, and few will require replacement in the near future, although some in harsh
coastal environments are requiring replacement before their standard lives. Most
distribution transformer replacement occurs due to changed capacity requirements.
The large bars are years into which transformers of unknown age have been assigned.

Distribution Transformer Condition

Condition monitoring shows that most transformers are in a condition that would be
expected for their age. Most older transformers appear likely to exceed their design
life, although work is under way to consider the total lives of younger distribution
transformers that, anecdotally, may not be achieving the same life lengths as their
older counterparts. The younger ones appear to be more prone to damage by lightning
strikes. The condition of urban ground-mounted transformers is monitored frequently to
ensure both service performance and public safety. These assets are maintained to a
high standard of condition, appropriate for their location and age.
3.9.

Distribution Switchgear

3.9.1.

Distribution Switchgear Age

Figure 3.18 shows the profile for switchgear replacement cost against age. It can be
seen that network switchgear exhibits a rather constant age profile over its population
except for the years to which switchgear of unknown age has been assigned. Some
types of switchgear are being replaced before their standard lives, due to safety issues.
A large quantity of distribution switchgear, particularly overhead switchgear, has been
installed without its date of installation being recorded.
Switchgear Replacement Cost vs Age
$25,000

Distribution Transformer Replacement Cost vs Age

$30,000

$20,000
Replacement Cost ($000)

$20,000
$15,000
$10,000
$5,000

$15,000
$10,000
$5,000
$0
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
ODL

Replacement Cost ($000)

$25,000

54
ODL

52

50

48

46

44

42

40

38

36

34

32

30

28

26

24

22

20

18

16

14

12

10

$0

RC - Valued at Current Cost of Renewal

9 Year Average RC - Valued at Current Cost of Renewal

Age (Years)

RC - Valued at Current Cost of Renewal

9 Year Average RC - Valued at Current Cost of Renewal

Age (Years)

Figure 3.18: Distribution Switchgear Age Profile.

Figure 3.17: Distribution Transformer Age Profile.

62

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

3.9.2.

Distribution Switchgear Condition

Overhead Line Replacement Cost vs Age

Overhead 33kV and 11kV switchgear is inspected in conjunction with line or

transformer inspections. These assets are in the condition to be expected for their age
and location. Greater maintenance or earlier replacement is undertaken in coastal areas
when necessary.

Oil-filled plain break-type switches are understood to have been fully replaced for safety
reasons. Any remaining such switches that are found will be replaced.
A significant amount of Magnefix resin-insulated switchgear is in service, but the
majority is in good condition and is housed in dry, clean environments. Replacement
is planned only where the Magnefix current rating is causing operating restrictions or
where the units are open points between feeders.
3.10. Zone Substations
3.10.1. Zone Substation Age

Figure 3.19 shows the age profile of zone substation equipment based on current
replacement cost. It includes all zone substation equipment and buildings, but excludes
land. Note that due to their 45-year life, a large number of 11kV switchboards installed
in the 1960s and 1970s will require replacement on an ongoing basis from now on.
The large amount of equipment beyond its design life is largely load control and other
electronic equipment with a short standard life.

$15,000
$10,000
$5,000
$0
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
ODL

Several failures of one type of oil-filled ring main unit have occurred as a result of
apparent poor design, poor assembly or water ingress. Some remedial work has been
carried out in accordance with the manufacturers instructions. Operating restrictions
are in place for this switchgear and a renewal programme has been established in
advance of its design life.

$20,000
Replacement Cost ($000)

The condition of urban ground-mounted switchgear is monitored frequently to ensure

serviceability and public safety. Other than the exceptions noted below, these assets
are in good condition, as appropriate for their location and age.

$25,000

RC - Valued at Current Cost of Renewal

9 Year Average RC - Valued at Current Cost of Renewal

Age (Years)

Figure 3.19: Zone Substation Equipment Age Profile.

3.10.2. Zone Substation Condition

Significant condition monitoring is undertaken on zone substation assets and most

are in good condition. Older switchboards or individual circuit-breakers have been
identified as requiring replacement due to condition, lack of earthing equipment or
lack of replacement spare parts. A large number of 11kV switchboards installed in
the 1960s and 1970s will be reaching the nominal end of their design life. Progressive
replacement, starting with the oldest units or those in worst condition, will be necessary
to prevent excessive numbers needing replacement at once.
The English Electric OKW3 33kV minimum oil breakers have a tendency to absorb
moisture, resulting in the deterioration of insulation resistance. The GEC JB424 type of
33kV breaker is becoming old. The dog box type of circuit-breaker, while fairly new, is
prone to let water into its cubicle, resulting in heightened risk of failure.
The original design of the protection equipment in the Wairarapa area means that the
protection can become unstable under some fault conditions.
Load control injection plants are becoming aged and, while still serviceable, should be
replaced.
New building code requirements mean zone substation buildings have to be built more
robustly than they have in the past. The new Building Act requires that Lifelines Utilities
construct their buildings with a 2500-year earthquake return period.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

63

4.

Performance TARGETS and Monitoring

4.1.

Introduction
This section of the plan outlines the performance levels required from the network
assets. It first looks at the consumer-related service requirements, and the confirmation
of these requirements through the consumer consultation process. It then looks at
the ways in which economic efficiency is assured in the Asset Management process,
contractor performance, safety performance, environmental matters and statutory
compliance. The targets also take into account the type of assets used across
our network (as described in Section 3) and a balance of comparisons with other
NewZealand lines companies with the same customer density, ratio of overhead
to underground construction, past planning practice, economic factors, recognised
international best practice and safety considerations.

Cost

Network Assets

This section looks at the processes used to monitor the performance levels, how the
monitoring processes help set performance levels, as well as the performance targets
themselves.
Key performance drivers were described briefly in Section 2 from a stakeholder
introduction perspective. Each aspect of performance is described in detail in this
section.
Where targets do not have a date specified, they are intended to apply for the whole
period of the AMP. This does not, however, preclude the setting of revised targets in
future AMPs.
4.1.1.

Level of Risk
Figure 4.1: Cost, Performance and Risk Balance.

4.2.

Levels of Consumer Service (Quality) Performance

4.2.1.

Overview

The target levels of service chosen in this plan are based on a combination of past
practice, consultation with customer and consumer groups, economic factors,
recognised international best practice, legal obligations and safety considerations.

Performance Target Philosophy

A trade-off exists in the Asset Management process between performance, cost and
risk, as shown in Figure 4.1. By minimising the costs of the assets, the asset manager
may compromise on asset performance and asset risk; by minimising the asset
risk, service performance and cost may be compromised. This section of the Asset
Management Plan looks to set Network Performance targets by seeking the best
trade-off between levels of Network Risk (Section 10) and cost of providing the service
(Section 9).

Performance
Levels

Powerco achieves a balance between legislative, regulatory, owner requirements and

consumer expectations in setting these performance criteria. The levels of service
adopted by Powerco for its Asset Management plan are based on the internationally
recognised measurements, SAIDI, SAIFI, and CAIDI, and accepted NewZealand lines
companies best practice.
4.2.2.

Consumer Consultation Price Quality Trade-off

Powerco conducts a Customer Communications Programme as part of its compliance

with requirements of the Commerce Act (Electricity Distribution Thresholds Notice
2004). The primary intention of this requirement is to ensure distribution businesses
effectively consult with, and take into account, the views of their customers and
stakeholders.
4.2.2.1 Complaints Process

Through its call centre Powerco keeps a database of all complaints and suggestions
registered by its customers. Powerco has commenced mapping these complaints by
type and feeding these into the Asset Management process (refer Section 5.2.2).

64

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Generally, feedback from consumers has been that if the targets were met they would
be satisfied. For this reason, Powercos focus remains on the worst-performing feeders.

4.2.2.2 Results of Consultation to Date

Generally, meetings held with local authorities and urban business people indicate
satisfaction with reliability of supply for urban consumers. In areas experiencing fast
growth, recent prolonged outages or in communities that are relatively isolated,
significant discussions and exchanges of information tend to take place.

4.2.2.4 Definition of Consumer Service and Service Performance

Consumer consultation is a useful method of gauging the mood of the community for
acceptable supply reliability, but it needs to be borne in mind that, by itself, consumer
consultation does have its drawbacks for objectively monitoring reliability. The mood of
the community is a coarse measure of the economic wellbeing that a secure electricity
supply provides because, until the power goes off, consumers can forget how much
they rely on a secure supply. The mood can be swung by one-off events. Also, the
views of some sections of the community often contradict other sections of the
community, leading to an unsure direction.

Discussion with manufacturers, dairy farmers or the horticulture industry often draw
attention to the significance of the Cost of Non-Supply (CNS) and deliberation on the
localities/social services/industries for priority restoration in the event of an outage that
might result from a large storm or similarly significant event.
Focus group discussions often provide Powercos planning engineers with information
useful for the scheduling of projects and initiatives that could improve the performance
of particular feeders (possible initiatives are described in Section 8.5).
Aside from the capital development/infrastructure expansion perspective referred to
above, a number of shorter-term issues often come up during discussions. These
include topics such as voltage instability and outages such as those resulting from
trees or animals interfering with overhead lines. Such situations often involve a degree
of shared responsibility. In the case of voltage instability, this would be between
the owner(s) of heavy plant/equipment and the lines company. In the case of tree
interference, it can concern the land/tree-owner and the lines company. Again, the
focus group discussions provide a helpful forum for advancing mutual understanding on
such topics, as well as information that could be used in the scheduling of maintenance
projects.
Overall, the consumer consultation programme can be seen to have resulted in:
A significant widening in understanding by some members of the public of the
structure of the electricity industry following reforms and their implications;
Information on consumer preferences that can be of assistance in scheduling the
programmes for both capital and maintenance works;
Information of assistance in deciding on the detail of individual projects;
Understanding that, on the whole, communities do not mind having pre-planned
outages if they know the outage is for maintenance or improvement to the network.
4.2.2.3 Effect of Consultation on Targets

Powerco reviews the reliability performance targets annually, set out in Tables 4.1 and
4.2 below, taking account feedback from consumers during the consultation process.
To date, the only specific issues raised at these consultation meetings have been
in relation to certain feeders where performance targets have not been met. Some
consumers in dairy farming and horticultural areas have commented on the difficulties
that power outages cause if they happen at certain times, but a concrete conclusion
has not been reached as to whether the F4 target warrants changing.

Return to Index

For reasons of objectivity and for the purposes of this plan, we must assume that the
consumers needs will be satisfied if Powerco meets its Service Performance targets.
Service Performance is defined as:
Delivery of electricity line function services to meet consumer load requirements within
targeted quality limits and within targeted levels of reliability.
The three key elements of the service performance definition are quality, reliability (which
is a subset of quality) and capacity. These are described below.
4.2.3.

Supply Quality

There are two types of supply quality issues - continuous and discrete. Continuous
supply quality elements include flicker, harmonics and phase balance. Discrete issues
include outages, voltage sags and swells, brown-outs and frequency excursions.
Powercos power quality performance criteria are shown in the Power Quality
Characterisation Plan shown below.
Powercos voltage regulation targets are in line with statutory requirements, which are
that the voltage shall be maintained within 6% at the consumers point of connection.
Performance outside the target is usually indicated by low-voltage complaints from
consumers. Corrective action is taken as soon as possible after the performance gap
is identified.
Presently, there are no statutory requirements in respect of transient fluctuations from
the statutory voltage limits.
Increasing use of electronic devices is resulting in a progressive deterioration of
waveform quality and it is likely that further measures will need to be introduced and
enforced to monitor and control harmonics over the next decade. Harmonics also affect
neutral and transformer ratings.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

65

Table 4.1: Reliability performance targets

Discrete Power Quality Issues

Continuous Power Quality issues

Issue

Characterisation

Impact to Customer

Target Performance

How monitored

Issue

Characterisation

Impact to Customer

Target Perfromance

How monitored

Outages (>
1min)

Power goes off

No power

170 SAIDI

Customer
notification,
SCADA alert,
logged in Outdef
system

2.56 SAIFI

Flicker

Frequency of less
than 35Hz

Visual flicker with

lighting

No complaints

Customer
complaint

Harmonics &
Interharmonics

3rd, 5th and 7th

harmonics most
common on
distribution level

Radio
Interference,
Transformer
overheating,
motors
overheating,
induction motors
contacts tripping

Total Harmonic
Voltage < 5% at
Point of Common
Coupling

PQ Meters at the
Substation 11kV,
site monitoring
using portable
PQ-Box 100

Auto Recloses
(< 1min, > 2
sec)

Power goes off

then comes back
on

Reset electronic
equipment,
clocks,

No complaints

Reclose
Counters,
SCADA
notification,
PQ Meters at
Substations

Phase Voltages
Unbalance

One or two
phases with
voltage <95%,

Damages
rotating
machines, a fuse
on one phase
continually blows

No complaints

Customer
complaint

Short Term
Fluctuations,
Dips & Sags,
Flicker

Lights flicker

Visual flicker,
clocks running
faster

No complaints

PQ Meters at
Substations, tap
change counter

Voltage Spikes

Longer Term
Brown Outs

Voltage drop to
below 0.9pu >
1min

Burns out motors

Voltage within
6% of nominal

Customer
Complaint

Short term <1min

voltage

Damages
equipment

No damage to
equipment

Customer
Complaint

Longer Term
Overvoltages

Greater than
1.1pu > 1min

Light bulbs
blowing, 3 phase
motor heating

Voltage within
6% of nominal

Customer
Complaint

Frequency
Excursions
Short Term <
1 sec

Deviation from
50Hz. May
cause protection
system
maloperation

Frequency
Excursions Long
Term > 1 sec

Deviation from
50Hz

Clocks Running
Faster/Slower

AUFLS
operation,
System Operator
advice

4.2.3.1 Justification for the Quality Targets

Some power quality requirements, such as voltage quality and harmonic voltage,
are set out in statute. Other requirements stem from the need to maintain adequate
customer satisfaction with the delivered electricity. Practical difficulties of monitoring
the supply quality imply a reactive response to customer notifications of supply quality
issues is needed. The target is no complaints or as few as possible. Changes in the
types of appliances in the last 20 years are having an impact on customers tolerance
to power quality issues (such as auto-recloses) and on the production of harmonic
pollution. Smart metering projects may offer the potential to be more proactive towards
power quality issues and Powerco is closely monitoring their adoption.

66

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

4.2.4.

Reliability Targets

The reliability service component is a function of six phases:

1. The failure of network assets or planned shutdowns that render the assets
unavailable for normal service. This is dependent on asset design and type and the
condition of the asset, where this affects the likelihood of failure;
2. The susceptibility of the network to loss of asset service. That is, does a faulted
asset cause an interruption to the supply to customers? This is dependent on
network architecture, one of the most important mechanisms being built-in
equipment redundancy, referred to as the security level, which is, a measure of
the resilience of the network to operational changes. Powerco has developed
security criteria for the subtransmission and distribution network (which continue
to be consulted on with consumers) and these are key inputs into the planning
process. Network security results from a combination of adequacy of capacity and
configuration. A network with good security has a diversity of supply options that
allow supply to be maintained or restored quickly following a fault.
3. The security criteria are discussed in Section 7 of this plan;

Powercos reliability targets vary according to the feedback of needs and preferences
from the different types of consumers and what is practical to achieve within the
constraints of economic and technical feasibility. The reliability targets are quantified
by indices of interruption duration (SAIDI) and frequency of interruption (SAIFI). Fault
response and repair times affect the duration of interruptions. The reliability targets
assume normal weather conditions.
Powerco sets reliability targets at a network and feeder level based on five different
types of consumer. Of these, four types concern small to medium-sized consumers:
Commercial/CBD;
Urban residential;
Rural; and
Remote rural.
The fifth category embraces large industrial users of electricity. For these consumers,
special needs, such as reliability and voltage stability, can be accommodated by
negotiation.

4. The widespreadness of an interruption of supply. That is, if a fault does cause an

interruption of supply to customers, is its impact widespread or localised in terms
of numbers of customers? This is influenced by numbers of customers by feeder or
the presence of reclosers;

Each distribution feeder is assigned a feeder class that best encompasses the types of
consumers connected to the feeder. In some instances the feeder class changes from
a higher to lower class. Where this occurs, a distribution recloser or other protection
element is often used. Feeder level reliability targets are an approximation of individual
consumer reliability needs.

5. Identification of the cause and location of the fault. Often this is done at the same
time as restoring customers, and can be helped by line fault indicators or through
SCADA;

Acceptable reliability performance for unplanned outages is performance equal to or

better than the performance indices stated in Table 4.2 below. This table indicates the
targets for major (storm-excluded) feeder class reliability performance.

6. Restoration of supply to as many customers as possible in timely fashion.

Sectionalisability helps this restoration phase. Network security also affects
restorability. There is a kind of inverse relationship between the levels of security
inherent in a network and CAIDI; and
7. Finally, the faulted equipment is repaired in a quality and timely fashion.
Each of these phases requires a different focus from different parts of a lines business,
but some elements of the network management process, such as the defect
management process, impact on reliability from every angle. The capital works and
maintenance strategy processes require attention from all of the focus areas. Powerco
uses all endeavours, as a reasonable and prudent network operator, to provide
continuous service within the limitations of the network design.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

67

Table 4.2: Unplanned Reliability Performance Targets by Feeder (Consumer) Type

Asset Management Driver: Service
Typical Consumer
Type

Large
Industrial

Commercial

Urban

Rural

Remote
Rural

Powerco
Feeder Class

F1

F2

F3

F4

F5

Average
number of
consumers on
feeder class

100

800

500

250

Unit

Table 4.3: Network Reliability Performance by Class and Year

Asset Management Driver: Service
Year
Measure

Outage
Class

2010

2011

2012

2013

SAIDI

40

40

40

40

130

130

130

130

SAIFI (average
for class)

0.33

0.33

0.5

Interruptions
per year

CAIDI (average
for class)

45

45

45

90

150

Minutes per
interruption

SAIFI

SAIDI (average
for class)

15

Minutes per
consumer
per year

CAIDI

15

23

180

450

16

24

Maximum no.
of Interruptions

0.5

1.0

1.5

Interruptions
per year

Maximum
average outage
duration

60

60

120

150

180

Minutes per
interruption

Feeder
interruption
duration index
(FIDI)

30

60

180

600

1080

Minutes per
feeder per
year

Maximum
no. of autorecloses

Reclose
shots per
year

Note: The reliability performance stated in the table above excludes the performance of the network
upstream of the feeder. Refer to Section 3.4 for descriptions of the feeder types.

The network reliability targets have been further disaggregated by outage class for
the next four years and this is shown in Table 4.3 below. Class B outages relate to
planned outages on the Powerco network and class C outages relate to unplanned
outages (faults) on the Powerco network. The specific target levels of service chosen
are based on a balance of consumer feedback, comparisons with other NewZealand
lines companies with the same customer density, past practice, economic factors,
recognised international best practice and safety considerations. The targets were
increased last year to provide a greater planned SAIDI allowance. This will improve
project cost efficiency and improve reliability performance in the future, which in
previous years results were worse than target. Tight control of planned SAIDI has an
adverse impact on network project cost efficiencies.

68

Strategic investment in planned SAIDI has the benefit of actually increasing the reliability
of the network in the medium and long term, which is particularly important given the
ageing profile of network assets. By increasing the allowable planned SAIDI, we can set
about maintaining the unplanned SAIDI for the same network budget cost.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

0.20

0.20

0.20

0.20

2.36

2.36

2.36

2.36

202

20

202

202

55

55

55

55

B+C

2.56

2.56

2.56

2.56

SAIDI

B+C

170

170

170

170

CAIDI

B+C

66

66

66

66

SAIFI

Unit

Minutes per consumer per year

Interruptions per year

Minutes per interruption

Interruptions per year

Minutes per consumer per year
Minutes per interruption

4.2.4.1 Justification for the Reliability Targets

The reliability targets have been determined by weighing a combination of several

factors:
Benchmarking with other lines companies: comparisons of the reliability performance
of other lines companies with similar mixes of provincial urban, rural and remote rural
customers results in a SAIDI performance average of around 220 and SAIFI average of
2.5.
Comparisons with historical reliability performance: the graphs of historical SAIDI
indicate that reliability is heavily influenced by weather. Removing storms, the reliability
performance has been consistently between 165 and 190 SAIDI from 2004 to 2008.
Therefore 170 SAIDI is a stretching target achievable when weather is benign.
Consideration of public preferences: customer consultation to date has indicated that
apart from some localised reliability concerns, on the whole our customers perceive the
supply reliability performance to be adequate.
The targets by feeder type take into account the consequences of supply loss by
customer type. For example, loss of supply to commercial customers in a CBD and
industrial customers will cause a large economic loss during business hours and so

Return to Index

in the case of non-performance. These service level expectations are recognised

and documented in Powercos low voltage fault procedures with regard to reported
instances of street lighting failure. Where single light failures are reported, the fault is
referred to the appropriate asset owner, usually a local authority. Where multiple circuits
or full town outages are reported, Powerco initiates fault response procedures on the
supply and control assets involved. These responses are subject to the same Powerco
KPIs as all other LV faults, namely to achieve 95 per cent of LV faults to be dispatched
within seven minutes.

very high reliability expectations exist in these areas. Conversely, in rural areas, the
scale of economic loss caused by loss of supply may be significant but the reduced
customer density in rural areas usually means longer lines, more faults and longer
restoration times, and a reduced reliability of supply is inevitable.
The SAIDI, SAIFI and CAIDI targets remain static as a reflection of the need for
increased network renewal due to the increasing average age of the network. Reliability
performance of worst-performing feeders is monitored every month on a 12-month
rolling basis as part of the performance engineering process. Actions to improve
network performance are incorporated into the works plan each year or during the year
when required. Note that Section 6.6 outlines that the reliability performance targets
may have to increase if there is insufficient incentive for lines companies to invest in
asset renewal.
4.2.5.

Key stakeholders in the street lighting service are:

Territorial Local Authorities are required to provide public lighting in accordance with
AS/NZ 1158. They rely on public lighting for safety, security, economic and aesthetic
reasons.
Transit NewZealand owns and operates road lighting at various state highway
intersections and pedestrian crossings, again in accordance with AS/NZ1158.

Capacity Targets

The capacity service component needs to be considered in two parts.

Firstly, for medium-term network planning, consumer load requirements are taken as
the present load on the network plus provision for load growth over five years. The
load is taken at the network distribution feeder level. Five years is chosen because
this is the lead time in which most network additions can be planned, designed
and implemented. The network must be capable of meeting the demand until any
necessary reinforcements, or additions can be brought into service. The capacity
targets are discussed as a planning criterion for network development planning in
Section 7 of this plan.
Secondly, for an individual consumer connection the consumers load requirement
is the present consumers load, typically measured at the point of common coupling
on the 400V network. Powerco aims to meet this requirement. In most parts of the
network there is spare capacity available in the 400V network to accommodate limited
individual consumer load growth. However, changes to an individual consumers load
(or the addition of new consumers) is subject to Powercos investment policy.
Capacity management at distribution level is an integral part of the planning process.
Closely associated with the concepts of asset utilisation (Section 4.3.3), load versus
capacity targets are key planning criteria that drive the need to spend development capex.
Further descriptions of the capacity criteria and targets are given in Section 7.3.
4.2.6.

Street Lighting Service Target Levels

NewZealand Police rely on adequate lighting of public and commercial areas as a

crime deterrent.
4.2.7.

Targeted Number of Faults per km of Line

This measure, considered with demographic factors, helps to identify reliability

maintenance or improvement options (Section 6.6) that are worth pursuing, such as
line segmentation, upgrades and additional feeders. The measure excludes preplanned
shutdowns of a preplanned nature. Regionally, comparing results identifies where
improvements can be made through researching the cause of poor fault/km performance.
Table 4.4: Targeted Future Average Number of Faults per 100 km per year
Asset Management Driver: Asset Age, Condition, Configuration & Service
Target No of Faults per 100km per year
Forecast

Voltage

2010

6.6, 11 & 22kV overhead

2011

2012

2013

2014

14

14

14

14

14

6.6, 11 & 22kV underground

33kV & 66kV overhead

33kV underground
Average

12.3

12.3

12.3

12.3

12.3

Street and road lighting is subject to a requirement for a high level of service. It is relied
upon for safety, security, economic and aesthetic reasons. Adequate lighting of public
and commercial areas serves as a crime deterrent. The asset owners of street lighting
equipment are subject to negative publicity, and media, public and regulatory scrutiny

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

69

4.2.9.

4.2.7.1 Justification for the Target Numbers of Faults

In previous AMPs, the target number of faults has been confused with the target
number of interruptions. To clarify this, this year, a new target for unplanned
interruptions has been introduced and the target for numbers of faults has been
extended to equate with the EEA Guidelines. The fault number targets are the same as
those presented in the Electricity Engineers Association Security Guideline. Faults per
100km are targeted to remain constant over the five-year forecast period. Therefore,
as the network grows in length, the number of network interruptions is targeted to
increase. This constant forecast is dependent on the overall condition of the network
assets remaining constant, which is dependent on the ability to invest adequately in
renewal activities.
4.2.8.

The link between the target number of interruptions per length of line and SAIFI is a
direct one that depends on the number of customers per feeder. However, there is also
a link between numbers of customers per feeder and CAIDI because a feeder with a
large number of customers on it can become difficult to back up through switching.
As a general rule, Powerco tries to limit the numbers of customers per feeder to 1500
or fewer (refer Section 7.3.4). For residential feeders this equates to 3MVA and because
most feeders have a capacity rather less than the modern design standard, which is
above this number, the ability to back up the feeders becomes constrained.
4.3.

Not all of the asset failures cause supply interruptions because the configuration of
the network may mean that some subtransmission faults cause no break to supply,
or auto-reclose facilities may mean that the interruption is only very short. Earth fault
neutralisers can allow the network to maintain supply in the face of earth faults. The
targeted numbers of interruptions are given below in Table 4.5.

To determine whether economically efficient decisions have been made and whether
a network operation is economically efficient requires measurement of several
factors. Powerco makes the following economic efficiency measurements for which
performance targets are set out below:

4.2.8.1 Justification for the Target Numbers of Interruptions

This is a new target that aims to clarify some confusion that has existed between
numbers of faults and numbers of interruptions. The target for numbers of unplanned
interruptions are based on a proportion of two thirds of faults causing interruptions.
This proportion has been determined from analysis of the historical causes of both
overhead and underground faults causing interruptions and is still being reviewed.
Targeted numbers of planned interruptions are based on historical figures adjusted for
the increasing levels of work projected (upwards) and for increasing efficiency in work
scheduling (downwards).
Table 4.5: Targeted Average Number of Interruptions
Asset Management Driver: Service
Target No of Interruptions
Forecast

Planned Interruption per 100km by

Powerco (class B)
Unplanned interruptions per 100km by
Powerco (class C)

70

2010

2011

2012

2013

2014

7.8

8.1

8.5

8.9

9.4

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Target Performance for Economic Efficiency

Along with providing service to consumer preferences, economic efficiency is a
significant Asset Management driver, and a balance between service and economic
efficiency (asset investment/utilisation and maintenance and operating costs) needs to
be considered in Asset Management decision-making. This section describes how the
economic efficiency driver is integrated into the Asset Management process.

Targeted Number of Interruptions

Interruption Type

Targeted Numbers of Customers per Feeder

Asset efficiency;
Asset utilisation (physical asset capacity utilisation and load factor); and
Cost performance.
4.3.1.

Integration of Economic Efficiency Drivers into Asset Management

4.3.1.1 Asset Replacement Economic Assessment

Economic efficiency is an important driver for maintenance, renewal and development

work. A large proportion of repair work, refurbishment and asset replacement work is
undertaken only after economic analysis to determine the most cost-effective solution.
This frequently involves the choice between replacement and continued maintenance.
The decision-making process for asset replacement is outlined in Section 6. The aim
of this process is to set the optimum time for renewal, which is theoretically when
the long-run marginal cost of owning the asset, known as EUAW (Equivalent Uniform
Annual Worth), equals the marginal cost of maintenance.
There is an inherent economic viability in the safety, environmental and general planning
criteria. That is, the standards set under these areas have already been tested for
economic sustainability or their economic viability is implicit, therefore repeating the
economic testing does not add any value.

Return to Index

Powercos asset efficiency targets are presented in Table 4.6 below:

4.3.1.2 Planning Criteria Economic Assessment

Economic viability testing is performed as part of the project approval process when
projects are proposed that address non-compliance with planning criteria. The life-cycle
cost of ownership of a notional network or portion of a network constructed using the
planning criteria is determined. This cost of ownership is tested against other network
scenarios to ensure the most economically viable criteria are selected.

Table 4.6: Asset Efficiency Performance Targets

Asset Management Driver: Economic Efficiency
KPI Description

In setting the planning criteria, the balance between service, economic efficiency and
reliability needs to be considered. There are significant trade-offs to be made with the
level of assets employed to provide security and the resulting reliability performance.
That is, in general, an increased quantity of assets provide greater redundancy and
security, or provide increased service performance, but increase the price of the service
due to the asset investment return requirements and costs, and reduces utilisation.

$/ICP

<3000

<3000

Asset Efficiency (RC/ICP)

$/ICP

<6000

<6000

Asset Efficiency (ODRC/MWh)

$/MWh

<225

<225

Asset Efficiency (RC/MWh)

$/MWh

<450

<450

60

60

2. Asset Efficiency (RC/MWh) is the ratio of network replacement cost over input network MWh.
3. Capital Efficiency is the annual network Capital Expenditure over the change in ODRC as a
percentage. It excludes the reduction due to depreciation and any gain due to asset revaluation
during the period considered. Different project types have different asset efficiency levels. For
example, pole replacements or reconductoring projects can have a capital efficiency of around 40%.
The Capital Efficiency factors presented in Section 6.4 are the inverse of the Capital Efficiency ratios
presented here.

4.3.2.1 Justification for the Asset Efficiency Targets

The asset efficiency targets have been determined by dividing the actual 2004 ODV
by the numbers of customers. Actually, the numbers of customers and their upstream
portion of supply network value follow a form of Poisson distribution. The targets aim is
to minimise the assets needed to supply customers.
The capital efficiency of a project depends on its nature. A typical figure is around 60%.
However, a reconductoring project may have a capital efficiency of 20% or lower. A new
zone substation may have a capital efficiency of 80% to 100%.

Asset Efficiency Performance Targets

Return to Index

Asset Efficiency (ODRC/ICP)

1. Asset efficiency (ODRC/MWh) is the ratio of network optimised depreciated replacement cost over
input network MWh.

4.3.1.4 Consumer Initiated Developments Economic Assessment

Asset efficiency is a measure of the value of assets employed to provide the service.
To allow benchmarking against other electricity lines companies, the common measure
of Replacement Cost per Consumer (RC/ICP) has been used. Because ODRC is more
publicly available than RC, the measure of ODRC/ICP has also been used even though
there can be some distortion when comparing networks with different average ages.
Similar measures are developed per MWh delivered.

2011

Notes:

When maintenance techniques are reviewed or changed, the effect on long-term

asset ownership cost and risk is considered, rather than the short-term effects
on maintenance expenditure. The economic analysis consists of a comparison of
the marginal annualised cost of the maintenance, risk costs and disposal over the
remaining life of the asset.

4.3.2.

2010

Capital Efficiency

4.3.1.3 Maintenance Techniques Economic Assessment

When determining investment into consumer initiated network developments, such

as subdivisions and network extensions for new consumers, the expected financial
return is weighed against the life cycle cost of ownership of the new assets. Powercos
investment into new consumer initiated works is set at the level that will provide the
required commercial return, given the projected revenue and costs. The payback period
considered in the NPV analysis may be adjusted to account for risk of connected
business(es).

Unit

4.3.3.

Asset Utilisation Performance Targets

Asset utilisation is the measurement of the physical utilisation of the assets employed.
The utilisation measurements used focus on the utilisation of capacity of the assets.
The following utilisation targets, based on international data, are used:

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

71

The targeted performance for direct cost per km of line is given in Table 4.8 below:

Table 4.7: Asset Utilisation Performance Targets

Table 4.8: Expenditure Performance Targets

Asset Management Driver: Economic Efficiency & Long-Term Value

KPI Description

Target

Asset Management Driver: Economic Efficiency, Risk Management & Long Term-Value

Zone Substation Transformer in F3, F4 or F5 area at planning horizon

50 - 60%

KPI Description

Zone Substation Transformer in F1 of F2 area at planning horizon [2]

40 - 50%

Direct Cost per km of line ($/km)

FY2011 F

FY2012 F

FY2013 F

FY2014 F

1,197

1,259

1,288

1,321

1,324

Distribution Transformer by supply MD (urban area)

35%

Direct Cost per Asset Base (RC) (%)

1.96%

2.09%

2.16%

2.23%

2.26%

Distribution Transformer by supply MD (rural area)

23%

1.50%

1.49%

1.52%

1.55%

1.57%

Distribution Transformer by disaggregated feeder MD

38%

Maintenance expenditure per Asset Base

(RC) (%)
Capital Expenditure per Asset Base (%)

4.44%

4.87%

5.06%

5.26%

5.34%

Renewal Expenditure per Depreciation (%)

63.5%

67.7%

74.1%

81.3%

89.2%

803

850

872

894

855

Distribution Feeder
Load Factor

50 - 65%
65%

Growth Expenditure per Change in

Transformer Capacity ($/kVA)

Notes:
1. Zone Substation Transformer utilisation is the substation maximum demand over total substation
ONAN rating.

Notes:

2. Industrial and commercial load curves tend to be flatter than their residential or rural equivalents.
3. Distribution transformer utilisation is calculated for both aggregated and disaggregated demand.

1. The Direct Cost targets include network maintenance costs, network operating and network
management costs. They exclude utility rates.

4. Aggregated: Network kW MD over distribution transformer capacity.

2. Direct costs expressed in nominal $ values. Refer to Section 9.

5. Disaggregated: Sum of disaggregated feeder MDs over distribution transformer capacity.

3. Depreciation determined from ODV.

6. Distribution Feeder utilisation is the disaggregated feeder maximum demand over the winter 6pm
capacity of the smallest section of distribution feeder.

4.3.3.3 Justification for the Expenditure Performance Targets

The expenditure performance targets stem directly from the budgeted and forecast
expenditures outlined in Section 9.

4.3.3.1 Justification for the Asset Utilisation Targets

The utilisation targets have been developed from a combination of international practice
comparisons and design fundamentals, such as supply diversity.
4.3.3.2 Expenditure Performance Targets

For the efficient operation of an electricity network company the direct costs need to
be monitored and carefully controlled. The Asset Management Plan considers network
expenditures. Total organisation cost has not been considered because corporate
costs are not under the control of the Asset Management process. Direct network
expenditures include:
Asset Management;
Network operating and maintenance; and
Network control function (Powercos Network Operations Centre).

72

FY2010 B

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

4.3.4.

Network Loss Performance Targets

Technical network losses occur due to resistance as electricity passes through

lines and other network elements. Technical losses can be minimised through good
engineering but never eliminated entirely, and it is not usually economic to minimise
them. Although not directly charged to lines companies, losses are an operating cost
to be controlled and balanced against other costs. The economic lifetime costs to pass
electricity through lines vary according to the amount of current a line carries, with the
cost of losses increasing in proportion to the square of the current carried.
Non-technical losses also arise due to metering error, variations in the timing of meter
readings, or due to theft.
Network losses can be determined by calculating the difference between energy
flowing into the network and energy flowing out. This relies on information provided
from retailers. The targeted level of network losses is 6%. This target is related to the
Economic Efficiency and Environmental Asset Management Drivers.

Return to Index

4.3.5.

Non-Network and Non-Asset Solutions

Remotely operated distribution switchgear;

Powerco has an active policy of investigating and, where appropriate, recommending

or adopting non-network and non-asset solutions. Presently, the following solutions
have been implemented:

Digital microwave radio;

Numerical protection relays;
Ethernet-based high-speed radio;

Demand-side management is encouraged through demand-based network charges

in some cases;

Expansion of CDMA secure data communications;

Computerised fault management and dispatch;

Load control is used to reduce demand peaks. This has been proposed for
controlling irrigation pumps in areas where voltage complaints have arisen;

Installation of a new integrated SCADA system;

Spread-spectrum radio, microwave and optical fibre communication for SCADA;

Power factor correction is best applied at the customers installations and this is set
out in Powercos connection standard. In some cases it is applied in the distribution
network, particularly in the Valley area, with shunt capacitors (generally 750kVA
banks) applied at key locations on distribution feeders;
In some areas, particularly in the Valley area, customers are supplied via long singlecircuit subtransmission feeders and Powercos security criteria cannot be met at an
economic cost. In these areas additional maintenance is carried out to minimise the
probability of outages;
Load transfer through the distribution network is considered prior to any substation
capacity upgrade (conversely, new substations should also be considered as an
alternative to upgrades of existing substations);

Handheld electronic data capture devices for inspection and maintenance work; and
Creation of an online application that allows Powercos approved contractors
to access the Contract Works Manual and the Network Operations Manual
documentation.
4.4.

Performance of Contractors

4.4.1.

Prequalification of Contractors

Potential contractors for work on the network are given the opportunity to prequalify as
competent to perform work on Powercos network. This is one way Powerco ensures
that work performed has adequate quality, and that contractors have the capabilities to
attend faults in a timely manner and make repairs efficiently and effectively, in a way that
meets Powercos own compliance standards and legislated requirements.

Solar-powered installations have been supplied in place of network extensions for

some remote small loads, such as electric fence units; and
Micro-grids and remote-area power systems are being implemented in some remote
rural areas.
All opportunities will continue to be monitored and the current policy of encouraging
non-network and non-asset-based solutions will continue. Non-asset solution
possibilities are pointed out to consumers when they approach Powerco with a request
for information or for a connection. Non-network options are also pointed out to key
customers by Powercos Key Account Managers.
4.3.6.

Adoption of New Technology

Powerco has an active programme in keeping up with the latest technical innovations
and, where appropriate introducing these on to its network. Recent new technology
adopted by Powerco includes the use of the following:
Transformer monitoring and control units;
Infra-red, ultrasonic and partial discharge condition monitoring techniques;
The use of profile loggers for circuit-breaker condition monitoring;
Helicopter-mounted Wescam camera and corona-detecting camera for special line
inspections;

Return to Index

4.4.2.

Maintenance Scheduling

When maintenance is required on the network, contractors have to schedule a

shutdown with the Network Operations Centre in advance. The contractors prepare
their own switching plan that is considered and approved by the Network Operations
Centre. In determining the suitability of a scheduled shutdown (depending on the length
of the shutdown, and the types and numbers of consumers affected) the Network
Operations Centre considers the following:
Feedback from retailers with affected consumers;
The effect on special connections (for instance, Powerco has a list of connections
that rely on electricity for providing dialysis treatment or other medical needs);
The impact on large or electricity-dependent consumers. For instance, shutdowns in
dairying areas are scheduled not to coincide with milking times;
The period available to inform consumers of the shutdowns; and
Alternative arrangements that may be available for consumers, including the
availability of generators.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

73

4.4.3.

Monitoring Quality of Workmanship

Powerco has a well-developed contracts work audit process to ensure that the work carried
out on the network meets Powercos standards in terms of workmanship and safe working
practices. Although engaged by Powercos Asset Management Group, the auditors are
charged with carrying out their duties on a completely independent basis.
The audit process involves:
Regular inspection of the work during construction for workmanship and safe
working practices. The auditors prepare independent reports and the findings are
passed on to the Asset Management Group;
Copies of the audit reports are forwarded to the contractors on the understanding
that any necessary remedial work will be completed within a fixed time. In respect
of safe working practices, any required change should normally be implemented
immediately; and
A final inspection of the completed work is undertaken, if required to receive a
satisfactory audit report before close-off.
Examples of serious breaches of workmanship quality include (by way of example):
Insufficient depth for laying underground conductors or insufficient aerial clearance
for overhead conductors;
Poor security of electrical installations, i.e. transformer doors left unlocked, and poor
service pillar security where unauthorised access can be gained;
Live terminals or bushings not electrically protected within pillar or transformer
installations; and
Loose neutral connections.
4.5.

Target Performance for Safety

Safety is one of the most important drivers on the Asset Management process.
Electrical plant and equipment are capable of causing serious harm. Measures must be
taken to ensure, as far as practicable, the safety of employees and the public.
For the safety of staff and the public, the network must be maintained in a way that
meets statutory requirements, follows good engineering practice, and is considered
safe in accordance with recognised industry standards.
Safety is determined by a combination of:
Asset design;

NewZealand Standard Wiring Rules. These contain the general framework for
Powercos safety-related Asset Management. They require existing assets to be
maintained in good order and repair to protect from danger;
The Safety Manual Electricity Industry (SM-EI). SM-EI contains the framework for
Powercos safety-related network operation. Powerco has now implemented its
network operating procedures to comply with the requirements of SM-EI;
Safe Practices for Low-voltage Electrical Work. This is a safe working code for work
on low-voltage equipment;
The Building Act. This puts in place a building maintenance regime that is aimed at
ensuring the existence of essential safeguards for the users of buildings;
The Health and Safety in Employment Act. This is a key item of safety legislation.
While not overriding safety requirements found in other electrical Acts and
Regulations, this Act requires all significant hazards associated with assets to be
identified, assessed, and controlled. This is achieved by duties set on all parties
associated with design, construction, maintenance and operation of assets; and
The Hazardous Substances and New Organisms Act 1996: This is relevant as it
sets out requirements for handling certain chemicals that are used from time to time
during equipment maintenance and construction.
There are also industry drivers set out in the Electricity Engineers Association guides.
Powerco has adopted the practice of working as a reasonable and prudent operator
as a guide to safe Asset Management practices. Its health and safety policy and
procedures are set out in documents in the Powerco Business Management System
(BMS). Contractors can receive instructions via the online Contracts Works Manual
and the Network Operations Manual. Both of these are new initiatives that operate with
online search applications.
Powerco carries out a policy of auditing its contractors for health and safety
compliance, along with quality of workmanship. Health and safety audit breaches
are divided into major and minor. Powerco has a focus on continual improvement on
health and safety and has a target number of zero major breaches. Examples of major
breaches include:
Not testing that conductors are de-energised prior to applying temporary earths;
Not completing a Hazard Identification Register prior to commencing work duties;
Not wearing appropriate PPE while carrying out duties e.g. insulated gloves, fallarrest devices, overalls and hard hats when working in proximity to live conductors;

Maintaining the assets in a safe condition; and

Not following correct switching procedures, i.e. not applying temporary earthing as
set out in NOC switching sheets;

Safe operating and work practices.

Insufficient traffic management; and

The statutory safety drivers are:

Employees carrying out tasks for which they are not suitably qualified, unsupervised.

The Electricity Regulations, Electrical Codes of Practice and the Australian/

74

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Whilst Powerco is targeting many areas for compliance, particular focus is on :

Powercos targeted health and safety performance is zero injuries or near misses to
Asset Management personnel, contractors or the public.
4.6.

Rolling reviews of seismic stability at zone substations;

Preparation of an environmental management plan and environmental risk audit;

Target Performance for Environmental Responsibility

Vegetation Management through the Electricity (Hazards from Trees) Regulations

2003.

Powerco is committed to achieving our goals, as stated in our mission statement,

in a manner that prevents or minimises pollution and other adverse impacts on the
surrounding environment and has regard for the interests of the communities in which it
operates.

Review of compliance with Electricity Governance (Connection of Distributed

Generation) Regulations 2007;
Recording of new 230/400V cable locations between service pillars and customers
boundaries (focusing on Tauranga);

Powerco supports the NewZealand Energy Strategy and the NewZealand Energy
Efficiency and Conservation Strategy and is committed to developing more sustainable
energy outcomes.

Knowledge of service providers of the requirements of the Hazardous Substances

and New Organisms Act 1996;

Powerco is also committed to pursuing continual improvement and recognises that

sound environmental management is consistent with and complementary to the
companys overall vision to lead NewZealand in electricity and gas distribution.
To fulfil these commitments, Powerco will:
As a minimum, comply with all statutory environmental requirements and other
relevant Standards and Codes, and provide adequate resources to meet those
requirements;
Implement an Environmental Management System that provides a framework for
setting and reviewing environmental objectives and targets;
Continually seek improvement and innovative solutions from ourselves and our
suppliers, and do what it takes to get quality results;

Requiring Authority applications for Electricity and Gas; and,

Gaining all necessary radio licences needed to operate the radio network.
4.8.

Risk Management
Powercos risk management strategy and techniques are explained in Section 10 of
this plan. In summary, risk management is implemented to reduce the likelihood of
the targeted performance not being achieved and to reduce the consequences to the
company and its stakeholders if this happens.
Measurement of risk management is achieved through monitoring of key performance
indicators and verification that risks are being considered in the decision-making
processes.

Recognise that effective environmental management has implications across the

business and seek to deliver improved environmental and economic performance.
4.7.

Statutory Compliance
Powerco is targeting many areas for compliance and has appointed a new Risk and
Legal Compliance Analyst who will be reviewing Powercos statutory compliance
regime. Particular focus over the next 12 months will be on:
review of compliance with key applicable legislation;
vegetation management through the Electricity (Hazards from Trees) Regulations
2003;
draft Electricity (Safety) Regulations;
preparation of an environmental management plan and environmental risk audit; and
Requiring Authority Notices of Requirement for the designation of Electricity and
Gas sites.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

75

5.

EVALUATION OF PERFORMANCE

5.1.

Introduction

In addition to the focus group discussions there was ongoing:

This section presents a review of Powercos performance against target for the previous
year, discusses the factors that influenced the performance, and compares these
against industry performance where a reasonable comparison can be made. Detailed
discussion of the performance measures and targets is included in Section 4 of this
plan. Actions resulting from the evaluation of performance are presented and these are
reflected in Sections 6, 7, 8 and 11.

One-to-one liaison between a number of very large industrial consumers and

Powercos Key Account Managers;

5.1.1.

Pricing and Asset Management Plan consultation with electricity retailers;

Consumer surveys;
Consumer education, in particular around safety issues; and
Reactive consultation in response to outages caused by extreme weather events or
general consumer dissatisfaction;

General Review Comments

This plan is the result of the review against Powercos April 2009 Asset Management
Plan. Preparation of the plan is an ongoing process throughout the year, but
work intensifies when final results become available. Powerco has established a
comprehensive set of performance targets for FY2010 (Section 4) and will monitor
performance against them over the next year.
5.1.2.

Interface with utilities managers from territorial authorities as representative of the

lifelines networks identified in terms of the Civil Defence Emergency Management
structure.
These interfaces with consumers are recorded and discussed with Powercos planning
engineers. Customer-specific requirements from these meetings are handled through
the Customer Initiated Works process and higher-level concerns are considered as
part of the planning process, be they immediate requirements or input to longer-term
projects.

Review of Work in Progress

Powerco has prepared a series of internal Asset Management Plans that culminate
in a five-year work programme suitable for entry into its Improvement Register (refer
to Section 2.6). These plans include the long-term development plan, covering
subtransmission development for a 15-year period to FY2025; the medium-term
development plan covering distribution network development for a five-year period to
FY2015; as well as a range of other special Asset Management plans.
5.2.

Review of Consumer Service Performance against Targets

5.2.1.

Results of Consumer Consultation Process

Discussion usually takes place at the Powerco subregion level to take account of
investment drivers such as reliability of individual feeders and the vagaries of the
environment in different areas. (Section 8.5 discusses feeder level performance in more
detail.)
In addition to the general ongoing consultation activities described above, an
opportunity was identified to carry out a specific exercise relating to a true price/quality
trade-off for a distinct group of consumers in Taihape and Waiouru. The extensive
exercise was conducted over four months and included media advertising, direct
consumer contact and correspondence and public meetings - and culminated In the
community voting on the proposed improvement. The purpose of the exercise was
to determine the communitys willingness to pay more for an improvement in security
of supply. While the proposed improvement was emphatically rejected, the exercise
provided valuable insight into consumer expectations and future consultation methods.

Powerco continued with its programme of face-to-face focus group discussions with
agencies representing the great majority of consumers as defined by:
Local economic development agencies/Chambers of Commerce as representative
of Industrial (F1) and Commercial (F2) consumers;
Territorial authorities and the electricity retailers as representative of Urban
Residential (F3) consumers;
Federated Farmers and independent farmer groups as representatives of Rural (F4)
and Remote Rural (F5) consumers; and
Community boards as representatives of Urban Residential (F3) consumers, Rural
(F4), and Remote Rural (F5) consumers.

76

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

5.2.2.

Results of Complaints Monitoring Process

Complaints from the public are recorded in a database. The database is used to follow
up the complaints, but it can be used to analyse the types of complaints and put actions
around them. This process is currently being integrated as a business system (refer to
Section 11.4). The map in Figure 5.1 is one way that the complaints data is analysed.

Return to Index

5.2.3.

Network Supply Quality Performance

Powercos Supply Quality performance for the 12 months to the end of December 2009
is outlined in Table 5.1.
Table 5.1: Review of past year Quality Performance and Complaints
Continuous Power Quality issues
Target
Performance

Issue

Characterisation

Impact to Customer

Flicker

Frequency of
less than 35Hz

Visual flicker with

lighting

No complaints

Customer
complaint

Harmonics &
Interharmonics

3rd, 5th and

7th harmonics
most common
on distribution
level

Little noticeable
difference, Radio
Interference,
Transformer
overheating,
motors
overheating,
induction motors
contacts tripping

Total Harmonic
Voltage <
5% at Point
of Common
Coupling

PQ Meters at
the Substation
11kV, site
monitoring
using portable
PQ-Box 100

Phase
Voltages
Unbalance

One or two
phases with
voltage <95%,
>80%

Damages
rotating
machines, a fuse
on one phase
continually blows

No complaints

Customer
complaint

19

No complaints

Customer
complaint

15

One or two
phases with
low voltage
<80%

How monitored

Number

Longer Term
Brown Outs

Voltage drop
to between
0.1 to 0.9pu

Burns out motors

Voltage within
6% of nominal

Customer
Complaint

Longer Term
Overvoltages

Greater than
1.1pu > 1min

Light bulbs
blowing, 3 phase
motor heating

Voltage within
6% of nominal

Customer
Complaint

Figure 5.1: Mapped Customer Complaints Example.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

77

Most complaints on power quality were reliability complaints involving autoreclosers.

Reliability is covered later in this section. Comprehensively monitoring the actual autorecloser (or MAIFI) performance presents a problem due to the limitations of the field
equipment and the numbers of reclosers not able to be readily counted.

Discrete Power Quality Issues

Issue

Characterisation

Impact to Customer

Target
Perfromance

Outages (>
1min)

Power goes
off

No power

170 SAIDI

Auto Recloses
(< 1min, > 2
sec)

Power goes
off then comes
back on

Reset electronic
equipment,
clocks,

Short Term
Fluctuations,
Dips & Sags,
Flicker

Lights flicker

Voltage Spikes

Short term
<1min voltage

Frequency
Excursions
Short Term <
1 sec

Deviation from
50Hz

Frequency
Excursions
Long Term >
1 sec

Deviation from
50Hz

2.56 SAIFI

No complaints

Visual flicker,
clocks running
faster

No complaints

Damages
equipment

No damage to
equipment

Clocks Running
Faster/Slower

How monitored

Number

Customer
notification,
SCADA alert,
logged in
Outdef system

62

Reclose
Counters,
SCADA
notification,
PQ Meters at
Substations

15

PQ Meters at
Substations,
tap change
counter

Customer
Complaint

AUFLS
operation,
System
Operator
advice

The network generally performed to the required level in terms of voltage and quality.
Some voltage imbalance and low-voltage complaints were received, but these were
predominantly caused by the consumer or adjacent consumers increasing their load.
Some of these issues were dealt with in accordance with Powercos policy covering
conductor and transformer upgrades and reconfigurations. In some areas, general load
growth has been accommodated by installing 11kV voltage regulation equipment.
Some of the consumer property damage complaints were received as a result of
voltage fluctuations. Powerco undertook investigations in all instances and the
fluctuations were outside the reasonable control of a prudent network operator.
Harmonic levels on the network are not known although few, if any, complaints are
received. Power Quality Monitoring equipment is being installed at certain sites to
collect harmonics data.

21

5.2.4.

Reliability Overview

Powercos SAIDI and SAIFI performance measures for the year ending March 2009
were higher than the targets set and agreed by customers in Section 4.2.4. This data
is presented in Table 5.2. Powerco is also measured against a threshold set by the
Commerce Commission, which we were under for this period. The April to March
period for reporting reliability performance in this plan ensures that the AMP aligns with
the disclosed figures.
Powerco calculates the network performance measures through the OutDef
application, as described in Section 2.8. This application records the start and end
times of faults (and times in between for staged restorations) and then automatically
calculates SAIDI and SAIFI figures using an interface with Gentrack (see Section 2.8),
which contains the numbers of customers connected to the network, and is then used
to determine the number of customers affected by each outage.
For the threshold calculations of SAIDI and SAIFI, the Supplementary Guidelines for
Investigating Breaches of the Reliability Criterion of the Quality Threshold have been used
(which is based on IEEE Standard 1366TM-2003) to remove extreme weather events.
Powercos 2009 reliability performance (planned and unplanned to 31 March 2009) is
summarised in Table 5.2 below.

78

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 5.2: Powerco Reliability Performance Summary

Actual
2009

Powerco
Excl
Major
Event
Days
2009

Eastern
Excl
Major
Event
Days
2009

Western
Excl
Major
Event
Days
2009

Powerco
Target
2009

Industry
Average
2009

Industry
Median
2009

290.69

196.7

244.8

156.5

170

223.4

200.9

2.76

2.61

3.35

2.00

2.56

2.5

2.1

105.3

75.4

73.1

78.3

66.4

88

78

Powerco
Performance
Measure

Unit

SAIDI (B+C)

Minutes per
Customer

SAIFI (B+C)

Interruptions
per Customer

CAIDI (B+C)

Minutes per
Interruption

Reliability performance statistics, including major events (e.g. storms), disaggregated

to the level of Powercos sub-regions, are given in Table 5.3 below. The Valley (Val)
sub-region had the most adverse performance figures, comprising around 70% of
Powercos SAIDI. This result was largely due to the storms that occurred in July 2008
(highlighted in Figure 5.3 below). Separate figures, in terms of faults per 100km, are
provided for overhead lines and underground cable.
The storms somewhat mask the underlying performance but it can be concluded that
numbers of faults are either at or above the target. Unplanned interruptions are above
target. SAIFI is generally at about target, although the numbers of customers affected
per interruption in Tauranga and Coromandel is high, indicating a high number of
customers per feeder. CAIDI performance is higher than target, although this is likely to
be because of storms. Underlying CAIDI indicates that adoption of automation would
enable restoration times for most customers to reduce following a fault.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

79

Table 5.3: Regional Reliability Performance

Powerco Actual FYE 2009

Performance
Measure

Unit

Man

Tar

Tau

Val

Wai

Wan

Total

Target 2009

SAIDI (Class A)

Minutes per Customer

0.00

0.01

0.00

0.03

0.00

2.59

2.64

SAIDI (Class B)

Minutes per Customer

3.2

5.5

11.1

19.71

5.09

2.21

46.87

40
130

SAIDI (Class C)

Minutes per Customer

37.6

25.9

43.8

112.58

14.43

9.46

243.82

SAIDI (Class D)

Minutes per Customer

0.0

1.7

17.31

0.94

0.00

0.51

20.49

SAIDI (B+C)

Minutes per Customer

40.84

31.49

54.89

132.29

19.52

11.67

290.69

170

SAIDI (All Classes)

Minutes per Customer

41.14

34.77

72.73

135.99

20.31

15.15

320.09

SAIFI (Class A)

Interruptions per Customer

0.000

0.000

0.000

0.000

0.000

0.000

0.000

SAIFI (Class B)

Interruptions per Customer

0.020

0.024

0.063

0.069

0.021

0.010

0.207

0.2
2.36

SAIFI (Class C)

Interruptions per Customer

0.489

0.382

0.604

0.790

0.141

0.140

2.545

SAIFI (Class D)

Interruptions per Customer

0.000

0.000

0.000

0.000

0.000

0.000

0.000

SAIFI (B+C)

Interruptions per Customer

0.509

0.406

0.667

0.859

0.162

0.150

2.753

SAIFI (All Classes)

Interruptions per Customer

0.509

0.406

0.667

0.859

0.162

0.150

2.753

CAIDI (Class A)

Minutes per Interruption

CAIDI (Class B)

Minutes per Interruption

160.24

236.38

174.97

283.69

237.83

228.59

225.95

CAIDI (Class C)

Minutes per Interruption

77.03

67.74

72.58

142.53

102.64

67.32

95.78

CAIDI (Class D)

Minutes per Interruption

CAIDI (B+C)

Minutes per Interruption

80.31

77.57

82.29

153.95

120.48

77.70

105.59

CAIDI (All Classes)

Minutes per Interruption

2.56

66

Faults O/H and U/G

Number per 100km

11.24

12.02

12.13

12.06

15.41

11.60

12.16

12.3

Faults O/H

Number per 100km

15.61

13.85

20.22

14.49

17.36

12.25

15.07

13.2

Faults U/G

Number per 100km

2.20

2.26

2.18

2.72

0.32

2.56

2.24

Notes:
A) The data returned from the Business Objects report doesnt provide SAIFI for Transpower, so Classes A & D are missing (also affecting all classes). This also affects CAIDI.
B) The denominator for regional SAIDI figures is the customer numbers for the full Powerco footprint.
C) The different classes are defined as follows:
1. Class A planned interruption by Transpower
2. Class B planned interruption by Powerco
3. Class C unplanned interruption on the Powerco network
4. Class D unplanned interruption on the Transpower network
D) Faults O/H and U/G excludes faults on zone substations and distribution equipment. Interruptions, however, does include these faults.

80

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

5.2.5.
Lines Companies SAIDI against Customers/km

At face value, the performance outlined appears adverse, but Figure 5.3 shows that a
significant proportion of the SAIDI incurred in the 2009 year was because of storms.
Powercos network suffered significant damage during storms, particularly affecting
the Valley and Manawatu areas at the end of July 2008. Also there were some
impacts caused by the loss of supply at Grid Exit Points. Apart from these events, the
performance was only slightly adverse when compared with target. Much reinforcement
work is under way in the Valley area to improve the performance and security of this part
of Powercos network. A timeline of SAIDI performance is shown below in Figure 5.4.

500
400

SAIDI

Reliability History

300
200
100

Significant Impacts on SAIDI

0

5
SAIDI

10

15

20

25

30

35

40

50

Customers/km

Log. (SAIDI)

Lines Companies SAIFI against Customers/km

Transpower Loss
Tauranga Region

Valley Region Wind

& Rain Storms

40

Manawwatu & Taihape

Wind & Rain Storm

SAIDI Mins

6
5

20

Fig 5.2: SAIDI and SAIFI versus Powerco Customer Density.

The graph in Figure 5.2 shows Powercos reliability performance against that of other
networks serving similar consumer densities. It suggests that the performance of the
Powerco network is somewhat worse than average compared with its peers (note
that five outliers exist with SAIDI above 500). Because of the nature of the topography
of some areas supplied, the impact of storms has been significant on the SAIDI
performance, although not as on SAIFI. The forward work plans for both regions can
be expected to balance a worsening trend as the average network age continues to
grow, leading to greater numbers of equipment failures. Many of the projects (notably
those involving installation of back-up subtransmission lines) will take several years to
implement because of landowner agreement and resource consent issues.

30/03/2009

2/03/2009

16/03/2009

3/02/2009

17/02/2009

6/01/2009

20/01/2009

9/12/2008

23/12/2008

25/11/2008

11/11/2008

28/10/2008

14/10/2008

30/09/2008

2/09/2008

16/09/2008

40

5/08/2008

35

Customers/km

8/07/2008

30

22/07/2008

25

24/06/2008

20

10/06/2008

15

27/05/2008

10
Log. (SAIFI)

13/05/2008

5
SAIFI

29/04/2008

1/04/2008

Return to Index

Storm Event
Tauranga Region

L2 Storm Event
Wairarapa & Taranaki

Loss
Whangamata Sub

10

Whangamata Outage,
Bunnythorpe Outage

Loss Waihi, Waihi Beach

& Whangamata Sub

15/04/2008

SAIFI

L2 Storm event Valley

& Tauranga Region

30

19/08/2008

Fig 5.3: SAIDI Performance versus Time (2008/09).

Figure 5.3 illustrates SAIDI performance on the network since April 2004. It highlights
the impact of storms and one-off events - the July 2007 storms caused the largest
single-day event in the period of the records shown, and the outages in July 2008 are
clearly seen as multi-day events with a large overall impact.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

81

SAI
SAI

5
15
15
0
10
10

2006
Planned

2007
Unplanned

2008

FaultsTarget

5
5
0
0
20

15

SAIDI

Significant Impacts on SAIDI

140
Jul 07 extreme
weather event

SAIDI Mins

100

Transpower Loss
Tauranga Region

Eastern Region
severe strorm

80

Jul 05 extreme
weather event

60

FaultsTarget
FaultsTarget

2009
2009
Year
Year ending
ending 31
31 Mar
Mar

Interruptions
Interruptions per
per 100
100 km
km HV
HV cct
cct (excl.
(excl. storms)
storms)

20
20
10

5
10
10
0
5
5

Loss Waihi, Waihi Beach

& Whangamata Sub

Aug 04 Taihape
Snowstorm

40

Unplanned
Unplanned

15
15

SAIDI
SAIDI

120

2006
2007
Interruptions
cct (excl. storms)2008
2006 per 100 km HV
2007
2008
Planned
Planned

2009
Year ending 31 Mar

Severe storm in
Coromandel

0
0
600

20

2006
Planned

2007
Unplanned

2006

2008

Unplanned Interuptions Target

2007

2008
2008
Unplanned
Unplanned Interuptions
Interuptions Target
Target

2006 Interruption (excl.

2007 storms)
Customers/
Planned
Planned

Unplanned
Unplanned

2009
Year ending 31 Mar

2009
2009
Year
Year ending
ending 31
31 Mar
Mar

500

SAIDI

Mar 2009

Oct 2008

Apr 2008

Nov 2007

May 2007

Dec 2006

Jul 2006

Jan 2006

Aug 2005

Feb 2005

Sept 2004

Apr 2004

5.2.6.

SAIDI
SAIDI

Fig 5.4: SAIDI Performance versus Time (2004 to 2009).

Underlying Reliability Performance Trends

The graphs below deconstruct Powercos underlying reliability (excluding major events)
performance in 2009 using the philosophies outlined in Section 8 (reliability rainbow).

400
600
600
300
500
500
200
400
400
100
300
300
0
200
200

2006

2007

Planned

Unplanned

2006
2006
Planned
Planned

Unplanned
Unplanned

2008

30

2009
Year ending 31 Mar

100
100
0
0

Faults & Shutdowns per 100 km HV cct (excl. storms)

Customers/
Customers/ Interruption
Interruption (excl.
(excl. storms)
storms)

2007
2007

2008
2008

2009
2009
Year
Year ending
ending 31
31 Mar
Mar

25

SAIFI (excl. storms)

SAIDI

20

15

2.5

10
5
0

2006
Planned

2007
Unplanned

2008

FaultsTarget

Interruptions per 100 km HV cct (excl. storms)

20

82

SAIDI

15

10
ASSET MANAGEMENT
PLAN ELECTRICITY NETWORKS FY2010 FY2019

2009
Year ending 31 Mar

SAIFI (excl. storms)

2 SAIFI (excl. storms)
3
3
1.5
2.5
2.5
1
2
2
0.5
1.5
1.5
0
1
2006
1
Planned
Unplanned
0.5
0.5
0
0

2006
2006

CAIDI
(excl. storms)
Planned
Unplanned
200

Planned

Unplanned

2007

2008

Interuptions Target

2007
2007
Interuptions
Interuptions Target
Target

2009
Year ending 31 Mar

2008
2008

2009
2009
Year
Year ending
ending 31
31 Mar
Mar

Return to Index

1.5
1
1
0.5
0.5
0
0

200
200

2006
2006
Planned
Planned

Unplanned
Unplanned

2007
2007
Interuptions Target
Interuptions Target

2008
2008

2009
2009
Year ending 31 Mar
Year ending 31 Mar

Overall, Powercos underlying network performance measured in SAIDI has been

substantially consistent over time. In the bottom right graph in Figure 5.5, the
underlying SAIDI excluding extreme events has been rather static at between 160 and
200 SAIDI although in recent years there appears to be a rising trend. The trough in
numbers of faults and SAIDI in 2007 and 2008 is most likely due to the calm La Nia
weather patterns.

CAIDI (excl. storms)

CAIDI (excl. storms)

SAIDI
SAIDI

150
150
100
100

5.2.7.

50
50
0
0

2006
2006
Planned
Planned

Unplanned
Unplanned

2007
2007
Target

2008
2008

Target

2009
2009
Year ending 31 Mar
Year ending 31 Mar

250

SAIDI
SAIDI

200
200

July 2008 - Valley network;

150
150

July August 2008 - Manawatu network; and

100
100

September 2008 - Valley and Manawatu networks.

50
50
2006
2006
Planned
Planned

Unplanned
Unplanned

2007
2007
SAIDI Target
SAIDI Target

2008
2008

2009
2009
Year ending 31 Mar
Year ending 31 Mar

Figure 5.5: Underlying Reliability Performance Trends

As explained above, storms and one off incidents played a big part in the overall
reliability indices. Extracting the extreme events provides a better view of the underlying
issues that cause outages to customers.
The number of faults, apart from during 2008, have been above target. This implies
a continued focus is needed on maintaining the network in good condition (renewal
and maintenance) and managing tree contacts. Likewise, the numbers of interruptions
are above target, although the ratios are about the same as for the number of faults.
Customers per interruption high because of the high number customers affected by
interruptions in Tauranga and Coromandel. These areas require a focus on reducing the
number of customers per feeder, and on subtransmission reinforcement. The CAIDI is
about on target, although work can be done to improve the restoration times for most
customers through implementing automation schemes and implementing SCADA. In
2008, planned CAIDI was affected by a six-hour shut down of supply to Coromandel to
rebuild sections of 66kV line. These sorts of initiatives are described further in Section 8.
Return to Index

Powerco has established a set of Feeder Interruption Duration Index (FIDI)1 targets for
each of the five different classes of feeder (as defined in Section 4.2.4). This individual
feeder performance index provides a disaggregated measure of service levels that is more
closely aligned to those that individuals experience. Monitoring FIDI performance provides
key information for the focus group consultation process referred to in Section 4.2.2.
Supply reliability performance against target is the main area in which targets are not
being met. Much of this is weather-dependent, with storms adversely affecting the
reliability results (all storm-related outages have been included the FIDI results), and
major-event days in the reporting year have increased the KPIs listed against feeders in
the following networks:

SAIDI (excl. storms)

SAIDI (excl. storms)
250

0
0

Distribution Feeder Class Reliability Performance

There are several areas in which performance improvements are being made on an
ongoing basis. While these are taking several years to complete, significant progress
has and is being made on them. They include:
Continued monitoring and management of the worst-performing distribution feeders
(Pareto diminishing returns):
Distribution system reconfiguration, automation and sectionalisation to improve
performance; loop automation schemes are being implemented to re-supply healthy
sections on faulted feeders in less than one minute;
Zone substation earth fault neutralisers will be commissioned to limit the impact of
earth-type faults on the distribution networks;
The fitting of SCADA control to normally open, and mid-points on distribution
feeders to allow quicker restoration times;
The fitting of line fault indicators (some 66kV circuits having SCADA indication);
Implementing SCADA at zone substations that do not have this facility; and
Addressing subtransmission network reliability performance, particularly in the
Eastern region. Significant planning work in this area is reflected in the Eastern
Region long-term development plan (refer to Section 7.13).
1 FIDI is defined in the Key Definitions given in the glossary. As a mathematical formula, it is the number of
customer minutes of interruption experienced by consumers on a feeder divided by the number of ICPs.
ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

83

F1 feeders increased from 8 in 2008 to 11 in 2009, one feeder remains listed.

F2 feeders increased from 16 in 2008 to 26 in 2009, five feeders remain listed.
F3 feeders were increased from 25 in 2008 to 39 in 2009, five feeders remain listed.
F4 feeders increased from 13 in 2008 to 24 in 2009, five feeders remain listed.
F5 feeders increased from 2 in 2008 to five in 2009.
Reflecting on the causes of the below-target performance, storm activity, foreign
interference and defective equipment are major contributor: along with the number
of one-off incidents. A focus will be placed on greater levels of automation in the
distribution network, while not neglecting action on defective equipment. Also, as the
targets for deadline work increase this year to improve the project productivity levels,
we will see more planned outages affecting the FIDI results.
A blitz approach is being used for line upgrades, where sections of line are renewed
under large-project scale to give a 10-year upgrade and forget clean bill of health
period. The expectation is that during the 10 years there will be no unplanned outages
due to equipment failure. This includes vegetation clearing and rectification of known
and likely defects.
The graphs presented in Section 8.5 show planned and unplanned FIDI for each
security class. The horizontal blue line represents the FIDI target for the feeder class.
5.2.8.

Network Capacity Performance

The distribution network has several feeders where numbers of customers are high
and this can lead to difficulties when backing up the supply from adjacent feeders. This
particularly occurs in areas around Tauranga, some parts of Coromandel and Valley
networs, and around Palmerston North.
The urgent capacity shortfalls that previously existed in the Tauranga transmission
network have been addressed with Transpower by commissioning plans for a new
switching station at Kaitemako and the thermal upgrades of lines into Tauranga
GXP. Howeve, the spare capacity on these will quickly be eroded as load climbs.
The transmission system in the Bay of Plenty needs a long term vision for obtaining
easements and consents for line upgrades so that they are less incremental and urgent.
5.3.

Review of Economic Efficiency Performance against Targets

5.3.1.

Asset Efficiency Performance

Powercos asset efficiency performance is presented in Table 5.4 below. Various

measures have been used to consider asset efficiency and Powerco has performed
well against the targets for each.

84

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Powercos ODRC/ICP of $2,9379/ICP compares favourably against the industry

average ODRC/ICP of $4,613/ICP. However, this comparison is of limited value
because it considers depreciation and, hence, those networks with a higher average
asset age appear to perform better than those of newer construction. RC benchmark
figures for other line companies are not available from the Information Disclosure
regime.
Table 5.4: Asset Efficiency Performance Measures
2009 Actual
Performance Measure

Unit

Target

East

West

Total

Powerco

Asset Efficiency (ODRC/ICP)

$/ICP

2,844

3,091

2,979

3,000

Asset Efficiency (RC/ICP)

$/ICP

4,938

5,836

5,428

6,000

Asset Efficiency (ODRC/MWh)

$/MWh

184

233

208

225

Asset Efficiency (RC/MWh)

$/MWh

319

439

380

450

Notes:
1. Asset efficiency (RC/ICP) is the ratio of replacement cost over the number of ICPs.
2. Asset efficiency (RC/MWh) is the ratio of replacement cost over the input network MWh.
3. Capital efficiency is the annual network Capital Expenditure over the change in ODRC, as a
percentage. It can be calculated onynwhen both start and end ODRC, values are available. It
excludes the reduction due to depreciation and any gain due to asset revaluation in the period.
4. ODRC and RC are as at 31 March 2004, and exclude street light assets.

Figure 5.6 presents a graph of asset efficiency (ODV/ICP) versus customer density using
the FY2009 disclosure information. In this comparison, Powercos performance is good.
Line Company Asset Efficiency vs Customer Density
10,000
Asset Efficiency (ODV $/ICP)

While some progress has been made with these initiatives, as evidenced by the case
study shown in Figure 6.12, there is potential to do better with feeders not meeting their
reliability targets.

8,000
6,000
4,000
2,000
0

5
Other Line Companies

10

15
Powerco

20

25

Log. (Other Line Companies)

30

35

40

Customer Density (ICP/km)

Figure 5.6: Asset Efficiency versus Customer Density based on 2007 Information Disclosure Data.

Return to Index

Powerco performs well on asset efficiency in comparison to many other distributors

because of the rural nature of Powercos network. However, with the increasing
expectations from the community in supply reliability and quality, particularly from the
dairy farming industry, as well as general expectations on the environmental impact,
it is expected that network investment per ICP will necessarily have to increase in the
longer term.
5.3.2.

The zone substation transformer utilisation resides at the high end of the target band,
which indicates, on average, a good utilisation level. Valleys and Taurangas utilisation
levels are high, indicating that shutdowns have to be carefully pre-planned for times
of low demand. This, coupled with the historically high growth levels in these areas,
means that further zone substations should be constructed (refer Section 7).
The distribution transformer utilisation was slightly below target and under the national
average of 32.1% (Information Disclosure Compendium). It is typical for less dense
networks to have a lower distribution transformer utilisation due to the low diversity of
rural distribution substations. Lower utilisation factors are also observed in widespread
networks where weather and demographic trends lead to non-coincidence of local
versus regional consumption patterns.

Asset Utilisation Performance

Asset utilisation is a key driver of long-term asset efficiency. Generally, Powerco

performance was good when compared to with the targets set. The load factor and
substation transformer utilisation were in the good performing range when compared
with national and international benchmarks.

Load factor was slightly above the 65% target. The efficacy of the load control systems
is important in achieving this target. Discussions are under way with the receiver
owners about maintaining this system.

Table 5.5: Asset Utilisation Performance Measures

Powerco Actual FYE 2009
Performance Measure

Man

Tar

Tau

Val

Wai

Wan

Total

Target

Substation Transformer Utilisation.

Note 1

55%

53%

74%

81%

51%

59%

61%

40%

Distribution Transformer Utilisation

by Supply MD. Note 2

31%

34%

31%

28%

24%

34%

29%

30%

Distribution Transformer Utilisation

by Disaggregated Feeder MD.
Notes 3, 4, 6 and 8

37%

38%

39%

35%

36%

39%

37%

38%

Load Factor. Note 5

60%

67%

58%

70%

69%

62%

67%

65%

Line Losses. Note 7

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Notes:

Losses were not able to be reported on due to the fragmented nature of the energy
reconciliation records.
5.3.3.

Cost Performance

Powercos direct cost performance is presented in Table 5.6 below. The actual
performance for FY2008 was slightly above target (unfavourable by 4%), which,
considering the storm activity that occurred, demonstrated tight control of the
maintenance budget.
Table 5.6: Powercos Direct Cost Performance
KPI Description

FY2008

Direct Cost per km of line ($/km)

FY2009

1,176

1,090

1. Zone substation transformer utilisation is the substation maximum demand over the total substation
ONAN rating, expressed as a percentage.

Direct Cost per Asset Base (RC) (%)

1.86%

1.76%

2. Distribution transformer utilisation is calculated for both aggregated and disaggregated demand.

Maintenance expenditure per Asset Base (RC) (%)

1.42%

1.42%

3. Aggregated: Network kW MD over distribution transformer capacity.

Capital Expenditure per Asset base (%)

4.24%

4.79%

4. Disaggregated: Sum of disaggregated feeder MDs over distribution transformer capacity. Note that
the aggregated factor is lower due to power factor.

Renewal Expenditure per Depreciation (%)

45.3%

58.6%

5. Load factor is the ratio of Network kWh/Network MD kW x 365 x24.

Growth Expenditure per Change in Transformer Capacity ($/kVA)

551

672

6. Feeder capacity utilisation is the disaggregated feeder MD over the total distribution feeder winter
6pm capacity.
7. Line losses calculation is not reported because up-to-date information is not available from all
retailers.
8. While disaggregated distribution transformer utilisation has been calculated, the results should be
treated with some caution. Feeder MD results were not available for some feeders and some feeders
supply loads directly (not via distribution transformers). These feeders have been removed from the
average. Taurangas result is strongly affected by these limitations

Return to Index

Notes:
1. Actual direct costs are denominated in the value of the dollar for the year they are reported.
2. The actual direct costs include the System Management and Operations expenditures along with the
network maintenance costs.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

85

Figure 5.7 presents a graph of operational costs versus customer density, using the
FY2009 information disclosure information. It presents a view of the key cost and
service component. Powerco experienced lower operational costs than the industry
average of $2910/km.
Line Company Asset Efficiency vs Customer Density

During 2009 an audit of the Zone Substation Oil Containment in the Western Region
was carried out and outcomes are described in Section 8.8.

6,000

The FY09 scheduled capital works programme (development and renewal activities)
was 97% complete by year-end. Certain work had to be deferred due to resource
constraints (the result of a tight labour market), delays for gaining resource or
landowner consents, and the delivery of some materials. The uncompleted works have
been rescheduled for completion in 2010.

4,000
2,000

5
Other Line Companies

10

15
Powerco

20

25

Log. (Other Line Companies)

30

35

40

The FY09 maintenance work programme was largely completed, with 97% of
scheduled activities achieved by year-end. The outstanding maintenance has been
incorporated into the FY2010 maintenance plan.

Customer Density (ICP/km)

Figure 5.7: Operational Costs versus Customer Density, based on Information Disclosure Data.

5.6.1.

5.4.

Review of Safety Performance

There were four lost-time injury Incidents reported in the 12 months ending June 2009.
The most serious was during a storm when a linesman fell from a pole.
Tenix Alliance and other contracted service providers perform all construction and
maintenance work on Powercos network. The health and safety programmes of
all service providers are audited and field safety audits are conducted to confirm
compliance. In the FY2009 year, 11,291 field audits were conducted. In the year ended
June 2009, there were 184 near-miss incidents reported by contract service providers,
and four lost-time injuries.
Contractors: Four lost-time injuries were reported from Powercos major contractors in
the year ended 30 June 2009.
A total of 184 near-misses were reported by Powercos major contractors in the 12
months ended 30 June 2009.
Employees: Over the year ending 30 June 2009, there were three near-miss events
reported, and one lost-time injury.

86

Review of Physical Performance against Plan

The physical progress of major development, renewal and maintenance activities for
FY2009 and FY2010, as at February 2010, is summarised in Tables 5.7 to 5.11, which
provide a brief description of the project, its status and a summary of the project
difficulties encountered.

8,000

Review of Environmental Performance

No environmental incidents occurred during the previous year on Powercos network.

5.6.

10,000
Asset Efficiency (ODV $/ICP)

5.5.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Subtransmission Network Project Performance

Major subtransmission and zone substation development and equipment replacement

project progress is summarised in Table 5.7 below.
Table 5.7: Subtransmission Projects Status
Status at
February 2010

Description of
Project Difficulties

Obtain and designate

land

In progress

Consent process to
obtain designation
is not clear and is
liable to take several
years.

Pyes Pa Substation
Land

Purchase land, assist

with designation

In progress

Consent process to
obtain designation is
liable to take several
years.

Whitianga 66kV line

extension

In progress
Negotiate line
route, easement
compensation, resource
consent preparation

Obtaining landowner
consent has taken
several years, and
on-going.

Location

Project

Description

Tauranga

Bethlehem
Substation Land

Tauranga

Valley

Return to Index

Status at
February 2010

Description of
Project Difficulties

In progress

Location

Project

Description

Valley

Coroglen to
Kaimarama
Landowner
compensation

Complete resource
consent process,
landowner negotiations,
payment of easement
compensation, legal
fees, sign-on fees

Valley

Whangamata
second circuit
easement
compensation

In progress
Line route
negotiation, easement
compensation, resource
consent costs

Valley

Kopu - Kauaeranga
110kV line
construction

Landowner
negotiation, easement
compensation,
signing fees, consent
preparation

Tauranga

Tauranga

In progress

Tauranga

Paengaroa
substation

Construct new zone

substation, obtain land,
obtain consent

In progress

Valley

Second Thames
66kV circuit

Construct new 66kV

circuit to Thames

Design under
way

Obtaining landowner
consent has already
taken several
years and may
require compulsory
acquisition.

Tauranga

Omokoroa second
bank

Install second
transformer, new 33kV
CB and protection at
Omokoroa. Replace
11kV switchboard

Commissioned,
as building
underway

Valley

Complete
Mikkelsen
Purchase and install
transformer upgrade two new transformers at
Mikkelsen Rd

Tauranga

New Kaitimako GXP Connect new GXP

into the existing
subtransmission circuits

As-building

Tauranga

Otumoetai new
switchboard

Replace 11kV
switchboard, protection
relays and SCADA

Complete

Wanganui

Hatricks Substation
transformer

Install new 16/24MVA

transformer and extend
substation area. Obtain
consent and lease.

In progress

The time taken to

obtain a lease for
the site extension
could delay the
project.

Taranaki

New Katere
Substation

Establish new zone

substation.

Under
construction

Cables in the
road have taken
extended time
to negotiate with
Council.

Wanganui

Beach Rd
Change switchgear to
switchgear upgrade indoor, extend building

Equipment on
order

Taranaki

Tasman substation
rebuild

Extend building, replace

switchgear with indoor

Equipment on
order

Wanganui

Peat Street
switchgear

Replacing 33kV
switchgear at Peat St
with indoor equipment

Equipment on
order, design
under way

Replacing 33kV
switchgear at Main St

Construction
under way

Landowner
negotiation will take
several years

Omanu Substation

Environment Court
hearing costs, easement
compensation, design,
subtransmission cabling

Consents
obtained,
design
complete, major
equipment
ordered, cabling
under way

Consent process to
obtain designation
has been taken an
extended period
and the process has
not been straight
forward.

In progress

Consent process to
obtain designation is
liable to take several
years.

Tauranga

Te Matai - Te Puke
subtransmission
circuit upgrade

Upgrade the 33kV circuit Construction

under way
B from Te Matai to
Atuaroa take off

Valley

Second Browne St
transformer

Install second
transformer at Browne
St, Matamata

Return to Index

Obtaining landowner
consent has taken
several years, and
on-going.

The available
cable routes are
quite congested.
Easements could
take extended time
to obtain.

Identify, purchase
site, obtain consents,
concept design

Valley

Description

Wetlands area
under tender,
cable route in
progress for
Tauranga to
Greerton

Te Maunga
Substation

Kopu - Coroglen line Stage 4 of the

reconductoring
reconductoring project

Landowner consent
has taken extra
time.

Main build
contract
let, major
equipment on
order
Construction
under way

Description of
Project Difficulties

Project

Identify circuit routes,

Tauranga CBD
undertake concept
Reinforcement Waihi Rd - Tauranga design, obtain consents
33kV circuits

Tauranga

Status at
February 2010

Location

Manawatu Main St 33kV

switchboard

Shutting down the

line for an extended
period needs
careful security risk
planning.

Taranaki

Livingston 11kV
switchboard
replacement

Taranaki

Brooklands
substation

Some equipment
quality issues
Temporary
protection grading
issues occurred.

New zone substation

Complete

DRMCC transformer
management relays
have had teething
problems.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

87

5.6.2.

Distribution Network Project Performance

Protection and Control Development Performance

The following tables indicate the status of protection, communications and SCADA
projects in the FY2009 and FY2010 plans:

Table 5.8: FY2009 Distribution Network Project Status

Table 5.9: FY2009 Protection Project Status

Status at
February 2010

Location

Project

Description

Tauranga

11kV and 33kV

Overhead
reconstruction

Build tenders
Overhead hardware
renewal of Pongakawa 33, awarded
Kauri Pt 33, Committee
Ccts, Welcome Bay, Mt
Maunganui, Bethlehem,
Green Park, Mural Town,
Paengaroa, Rotoehu, Black
Stump

Description of Project
Difficulties

Status at February
2010

Description of Project
Difficulties

Linton-Kairanga-Pascal 33kV protection

and communications system

Protection
installed,
communications
link not yet
operational

Communications
link is
temperamental.

Manawatu

Kelvin Grove-Keith Street and

Bunnythorpe Line differential protection
and communications system

In progress

Manawatu

Linton-Turitea protection upgrade

Protection
installed,
communications
link not yet
operational

Communications
link is
temperamental.

Manawatu

Kimbolton Protection Upgrade

To be deferred
until switchgear is
replaced

Protection
upgrades are
incumbent
on class of
switchgear.

Region

Protection Project

Manawatu

Valley

400V, 11kV and

33kV Overhead
reconstruction

Waikino 33, Tairua 66,

Kaihere, Kuaotunu, Cook
Dr, Victoria St, Waihi Nth,
Bennett St, Ngatea, Kopu,
Thames Urban, Waihi
Urban

Build tenders
awarded

Tauranga
& Valley

11kV Distribution
reconstruction

Distribution transformer,
ABS, Distribution
Switchgear replacement

Site work in
progress

Tauranga

Distribution
development
project

Maunganui Rd,
Otamarakau, Waikite,
Welcome Bay capacity
upgrades and new feeders

Outage
planning
under way, soil
resistivity tests
underway

Obtaining landowner
consent has taken
several years and
ongoing.

Wairarapa

Norfolk - Chapel directional protection

Completed

Wairarapa

Tuhitarata protection upgrade

Complete

Mangatarata, Purangi,
Whitianga, Pauanui,
Manaia line reconstruction

Design in
progress

Potential for
resource consent
to rebuild line will
cause project delay
in TCDC area.

Tauranga

Triton 33kV protection upgrade

Completed

Tauranga

Te Puke A&B circuits protection

replacement

Deferred to FY11

Wairarapa

Akura transformer protection upgrade

Completed

Taranaki

Comms and Protection upgrade

Waitara East

Completed

Valley

Scheduled
development
project

Build tenders
awarded

11kV and 33kV

Overhead Line
reconstruction

Pole and cross-arm

replacement in general
Western area.

Tauranga

Tauranga CBD
Reinforcement
- Waihi Rd Tauranga 33kV
circuits

In progress
Identify circuit routes,
undertake concept design,
obtain consents

Wanganui

Raetihi Overhead Reconstruction of a length

reconstruction
of aged line

Western

88

5.6.3.

The status of major distribution network projects in FY2009 and FY2010 is outlined in
the table below.

The available
cable routes are
quite congested.
Easements could
take extended time
to obtain.

This was a
pole-mounted
circuit-breaker
replacement.

Installation work
planning in
progress

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 5.10: FY2009 Communications Project Status

Status at
February 2010

Region

Development Project

All

Provision of 4 x VOIP units to bring VHF

voice traffic back to NOC from Wanganui and
Palmerston regions

Completed

All

Implementation of remote Dial-Out facility on

Powerco WAN for data access

Completed

Manawatu

Radio communications between NOC and

Powercos contractors

Completed

Develop VHF voice radio network and

interface to VOIP circuit back to NOC
Manawatu

Migration of the Pahiatua Track

communications facility to Te Rere Hau
Substation site

Completed

Wairarapa

Create new Radio Repeater site at Rewa to

replace current poor Fleetlink communications
to Awatoitoi and Tinui Substations

Completed

Taranaki

Digital radio upgrade Junction Street

Completed

Provide protected mode communications

circuit from Junction St to Egmont.
Taranaki

New radio link Waitara West to East Egmont,

(replacing Waitara East to East Egmont).

In progress

Taranaki

Replacement of the overloaded and rusting

radio structure at the CA hut.

Completed

Taranaki

Install new digital radio link between CA hut

and Hawera and Brunswick

Feasibility study
done, project
not proceeding

Wanganui

Replace/repair Bastia Hill Radio Mast

Completed

Eastern
Region

Trial of Powerco-owned VHF Voice Radio

Network to replace current Fleetlink trunked
radio system

Being
commissioned

Eastern
Region

Continuation of the Eastern Region Powercoowned Microwave Communications Backbone

One link still to

be completed

Manawatu

Kairanga-Pascal St Protection Comms

Completed

Various

Review/upgrade communications to facilitate

interrogation of modern relays.

Completed

Various

Install time-synchronisation facilities to

substations with modern protection relay
equipment

In progress

Return to Index

Description of
Project Difficulties

Status at
February 2010

Region

Development Project

Various

Migrate Point-to-multipoint radio licensing

system to land mobile

Completed

Various

Review/upgrade data communication systems

to allow interrogation of field devices and
sharing of data on Corporate network

Completed

Taranaki

Rationalise Waitara East and West Comms

Under way
as part of
Dataterm
replacement

Tauranga,
Valley

Change older crystal controlled radio

equipment to allow DNP3 Comms

Not started

Manawatu

Palmerston radio equipment replacements

In progress

Valley

Migrate voice comms to VHF

In progress

All

Implement SEL calling for VHF and UHF voice

In progress

Description of
Project Difficulties

Dependent upon
the migration to
DNP3 proof of
concept.

Table 5.11: FY2009/10 SCADA Project Status

Status at
February 2010

Substation

Development Project

Various

Line fault locators and RTUs /

Communications

In progress

Various

Line circuit breaker control upgrades

In progress

Various

Review/upgrade load control facilities

In progress

Central

Upgrade SCADA Master Station to open

architecture and associated technology
enhancements

Eastern done,
Western
conversion
undergoing proof
of concept

Wairarapa

Upgrade Norfolk, Gladstone SCADA RTUs

Wanganui

Fit new Taihape RTU

Completed

Taranaki

Migrate Cambria, Eltham, Inglewood and

Transpower Stratford RTUs to DNP3

In progress

Wanganui

Provide SCADA visibility of Transpowers

breakers at Brunswick and Wanganui GXPs

Cancelled
because of the MS
to MS interface
project

Description
of Project
Difficulties

Migration is
dependant
on proof of
concept

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

89

5.7.

Review of Financial Progress against Plan

Scheduled and Reactive Development Expenditure Variance Commentary

The financial progress against plan is summarised by asset category in Tables 5.12 to
5.14 below. Powercos network capital expenditure for FY2009 was 14% over budget
and maintenance expenditure was 5% above the planned budget. Commentary on the
variance between actual and budget is also provided.

Development expenditure was $2,580k (11%) over budget for the year. During the year,
a significant value of additional scheduled development projects were added to the
works program in the Western region. These Included 400V underground development
projects in Palmerston North, and an increase in the scope of Katere substation in
Taranaki. In the Eastern region there was additional carry over work (non budgeted)
from the prior year plan completed.

Table 5.12: Expenditure Comparison with FY2009 AMP ($000)

Development

Renewal

Ops. & Maint.[1]

Total

FY2009 AMP Actual

58,432

24,365

24,396

107,193

FY2009 AMP Budget

49,308

23,513

23,245

96,067

(19%)

(4%)

(5%)

(12%)

Variance

Scheduled and Reactive Renewal Expenditure Variance Commentary

Renewal expenditure was $852k (4%) over budget for the year. Although some projects
were deferred to release funds for more urgent development projects, unbudgeted
reactive renewal has resulted in an over budget result. Key drivers of this result include the
following; Main Street Zone substation rebuild in Palmerston North, extra renewal work on
the 66kV network into the Coromandel and significant storm events across the Powerco
footprint at the end of July and across the Wairarapa and Taranaki regions in October.

Note: [1] Ops and maintenance does not include network management and operating.
Refer also Tables 8.2 and 8.4 in the financial section of this plan.

5.7.1.

Capital Expenditure

5.7.2.

Actual capital expenditure for FY09 is shown in the table below compared with the
budgeted capital spend amount. During FY2009, the company had not yet adopted
the Commerce Commissions capital expenditure reporting categories and so the
comparisons are given in the previous categories. Variances are described. Storms
through the year meant that renewal of assets was higher than budgeted. Powerco
monitors programmed work completion at the total scheduled capital level only. The
weighted result for scheduled works across all service providers was 97% for the full year.
Capital Expenditure 2009 ($000)
Expenditure Type

Actual

Budget

Variance

Customer -Driven Development

32,248

25,704

(25%)

Scheduled and Reactive Development

26,184

23,604

(11%)

Scheduled and Reactive Renewal

24,365

23,513

(4%)

Total

82,797

72,822

(14%)

Customer-Driven Development Expenditure Variance Commentary

The Customer-Driven Development Expenditure variance was due to greater than
forecast levels of subdivision activity, customer connections and third party asset
relocations. Salient features of this work included major residential and industrial
subdivisions around Pyes Pa and Papamoa; the conversion of large areas of South
Waikato forestry land to dairy; Transit work at Mt Maunganui and Bell Block; upgrades
of Waharoa zone substation due to industrial expansion; and irrigation activity in the
lower Rangitikei area.

90

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Maintenance Expenditure

Maintenance expenditure was 5% above budget and 1% above budget when System
Management and Operations are included.
Western Capital Expenditure 2009 ($000)
Expenditure Type

System Management and Operations

Actual

Budget

Variance

5,968

6,848

13%

Scheduled Maintenance

10,394

10,513

1%

Corrective Maintenance

8,938

6,919

(29%)

First Call Maintenance

Total

5,064

5,813

13%

30,364

30,093

(1%)

System Management and Operations Expenditure Variance Commentary

There are three main reasons for the variance from budget. Firstly, utility rates totalling
$637,000 were excluded from the actual expenditure reconciliation, where they were
included in the budget. The network management teams under spent their budgets
by an average of 7%, largely because of unfilled vacancies. Thirdly, there were some
variations against budget on site lease costs, and electricity and water costs at zone
substation sites.
Routine and Preventive Maintenance Expenditure Variance Commentary
Scheduled maintenance was $119k (1%) below budget for the full year. The program
completion results were 97%.

Return to Index

Corrective Maintenance Expenditure Variance Commentary

Corrective maintenance was $2,019 (-29%) above budget for the full year. The key
driver for the over budget expenditure relates to ongoing network defects, mostly on
the overhead network, particularly in the Eastern region. This is despite urgent defects
only being attended to, those being where public safety or customer supply are
compromised. All other non urgent defects have been deferred with a focus on bundling
these into scheduled work where they can be actioned in a more efficient manner.
Fault and Emergency Maintenance Expenditure Variance Commentary
Fault maintenance expenditure was $749k (13%) under budget. Although there were
significant storm events which impacted renewal expenditure mainly in July, the winter
was otherwise relatively benign resulting in a favourable result for first response fault
maintenance.

6.

ASSET LIFE CYCLE MANAGEMENT PLAN

6.1.

Introduction
This section provides an overview of the equipment selection and design, maintenance,
renewal and disposal strategies for the network assets, as well as an outline of the
strategies applied to each asset category.

6.1.1.

Life Cycle Asset Management Concepts

Powerco applies various concept perspectives to the life cycle management of the
network assets.
Asset categorisations: Different types of asset have different design, construction
maintenance and operational needs.
Asset life cycle concept: This concept is shown diagrammatically below. It is applied
to the preparation and amendment of asset related standards and procedures.
Separate asset life cycle regimes apply to each asset category.
Asset Management documentation hierarchy: This perspective is described in
Section 2 and views the suite of Asset Management documentation as an hierarchy
topped by the disclosed Asset Management plan; below this come the renewal and
development plans and specific Asset Management plans; and below this come the
standards and procedures, along with the capital and maintenance works plans.
Asset planning cycle: This concept views the Asset Management documentation as
living documents and the planning process as a rolling annual cycle. Documentation
can be continually updated within this annual update cycle.

Plan/
Concieve
Dispose

Renew/
Refurbish

Design/
Construct

Maintain/
Operate

Figure 6.1: Asset Life Cycle Concept.

This section of the plan uses the Asset Category and Life Cycle concepts: the other
concepts are considered elsewhere in the plan (such as in Section 2).

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

91

6.1.2.

Network Standards Philosophy

An area of consistent debate is around striking the best balance between functionality
and prescription in the standards. Standards road shows indicate that contractors now
have a preference for prescriptive standards. From the 1990s and into the earlier part of
the 2000s, functional standards had been preferred because these could give contract
field staff greater autonomy for innovative solutions. However, we are finding that
contract staff now need more guidance to do the work right. Therefore we are trying to
increase the level of prescription in our standards without hamstringing our contractors.

Powercos Network Standards set the requirements for the design and construction
of equipment, particularly those that we use a lot of, like poles, cable, pipe and
transformers. Our standards also set out our requirements for maintenance inspections
and servicing, and guidelines for the overhaul of equipment. They also set out our
specification requirements when purchases are being made by contract field staff on
Powercos behalf.
The standards reflect the range of different contractor drivers in place across Powercos
network. Most field work is done through alliance contract arrangements and the
purpose of the standards is partly to assist and train field staff. Some work is fully
contestable (such as Customer Initiated Work) and standards reflect a need to prevent
corner-cutting while not disallowing new ways of doing things.

6.1.3.

The standards and policies follow a continuous improvement process whereby the
standards are challenged as they are used. Input to the standards preparation and
update process can arise during the semi-regular standards road shows, through the
field work audit process or if anyone has a new idea that should be tried out.

The standards are reviewed nominally on three-year cycles, although more regularly
when needed. Standards become applicable, only once they are issued into Powercos
Business Management System (a controlled documentation filing system). Once issued
into the BMS, the documents may also be confirmed for entry to the on-line Contract
Works Manual (CWM). The CWM is a password protected application that contains
all of the documents necessary for work on the networks. Changes to standards are
highlighted at annual roadshows and workshops held across the network area. These
events are generally attended by senior representatives of contract field staff.

Figure 6.3 shows a status summary of the standards by asset category and by asset
life cycle stage. The blue areas represent standards that are well developed and where
the work of field staff is well aligned with the standard. The green areas represent
standards that are still becoming well developed, while the yellow-coloured areas
represent areas where policy development work is under way.
Plan Conceive

Design
Construct

Maintain

Operate

Dispose

Electricity

The structure of the standards is based on an asset life cycle concept with each asset
type being considered from an asset life cycle perspective. Asset specifications are
prepared with working committees involving field and engineering staff. It is assumed that
those using the standard have experience in doing the work that the standard is about.

Overhead Lines
Underground Cables
Distribution Txfrs
Distribution Sgear

Prescriptive Standards

Functional Standards

Network Standards Status

Zone Substations

Functional Prescriptive Continuum

Development under way

Well developed

Standard not yet developed

Figure 6.3: Standards Development Status Summary.

Earlier position
more functional
than presciptive

Our desired
Position

Figure 6.2: Functional Prescriptive Standards Continuum.

Presently our
contractors desire
more prescription

6.2.

Asset Conception, Design and Specification

The conception part of the asset life cycle concerns the process of planning for a new
asset. From a renewal perspective, this is covered under Section 6.4.
Most design work is performed by Powercos contractors in line with Powercos Contract
Works Manual. This is a suite of design, construction and maintenance policy documents
available on line to approved contractors and consultants. These are continually reviewed
and updated, and the nominal three-year rolling review is most often preceded.

92

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Safety Through Design is a key philosophy applied throughout the standards updating
process. Every technical standard is progressively being updated to include recognition of
Health and Safety, Environmental, Risk Identification and Risk Management requirements.

6.2.3.

This is a Functionality-Focused group of materials and equipment. Class C items can

be selected in compliance with functional requirements published within Powercos
online Contract Works Manual. Examples of Class C equipment types include bolts,
cross-arm braces, LV fuses and disconnector units and LV fuse pillars/cubicles.

Powerco is revising its equipment selection policy. In short, this requires all materials
and equipment used on Powercos electricity network to comply with:
Applicable legislation Regulations and Codes of Practice;
Safety Manual Electricity Industry (latest versions of SM-EI, Parts 1, 2 and 3) and
Safe Practices for Low-voltage Electrical Work;

Class C Functionality-Focused Equipment

6.2.4.

Class Exceptions

From time to time, some items arise that can be categorised into one or more classes.
These exceptions are clearly noted within the relevant Powerco standards.

Powerco Asset Management Plans;

Powercos Contracts Works manual; and
In the absence of a technical standard, then equipment and materials compliant with
NZS and AS, NZ Codes of Practice, IEC or IEEE may be used (generally external
standards are only valid when they are referenced directly within a Powerco standard).

Class A
Item Focused
Items approved for use by NAT Focus Group.
Service Providers choose items from list
Published in Powercos Material standards.
No Service provider Discretion

A key area that Powerco is working on is the alignment of activity to the standards
across the organisation.
Powerco has split its approach to asset specification into three classes as set out
below. Powercos Service Providers have full discretion to select Class B and Class C
items as long as they comply with the equipment specifications.
6.2.1.

Class C

Class A Item-Focused Equipment

Acts &
Regulations
Powerco driven
Policies, AMPs
Standards &
Specifcations

Functionality
Focused
Service Providers
choose items in
compliance with
Functional Requirements
detailed in Material
standards (e.g.
393S013)

Class A is an Item-Focused group of materials and equipment. Items within this class
are regarded as being critical to supporting the reliability and performance of their
respective networks. Examples of Class A equipment are as follows:
33kV and 11kV switchgear
Power transformers
Distribution ground-mounted switchgear (RMUs)

Class B

Standards
Focused
Service Providers
choose items
in compliance
with Technical
Requirements
detailed in Material
standards (e.g.
393S013)

Protection relays
Class A equipment must be chosen from specific type lists within standards published
in Powercos on-line Contracts Works Manual. Specialist Network Advisory Teams
(NATs) help management decide on the composition of those lists. No Powerco Service
Provider discretion is allowed when choosing these items.
6.2.2.

Class B Standards-Focused Equipment

Class B is a Standards-Focused group of materials and equipment. These items of

equipment can be chosen in compliance with standards published within Powercos online
Contract Works Manual. Examples of Class B equipment include overhead conductors,
underground cable, poles, cross-arms, distribution transformers and surge arresters.

Return to Index

Figure 6.4: Equipment Specification Classes.

6.3.

Maintenance Strategy

6.3.1.

Determining Maintenance Strategy

Maintenance strategy is recorded in the Electricity Network Asset Life Cycle Plan. The
objective of the maintenance planning process is to determine the most cost-effective
method for managing the levels of network risk and allowing the network assets to
achieve their expected level of service potential.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

93

A risk analysis has been conducted for each asset category and from this an inspection
regime has been developed. A summary of the types of maintenance performed for
each general type of asset has been included.
Risk management analysis is used to determine the type and effects of maintenance
through:
Identifying all hazards that present a risk to the asset performing its intended
function;
Conducting a Failure Mode and Effects Analysis (FMEA). In performing the FMEA,
the maintenance that can be performed to reduce or eliminate the consequences of
the failure is reviewed and the type of maintenance is selected; and
Determining the cost of the maintenance or renewal, cost of failure and selecting a
maintenance or renewal type that provides a positive EUAW return.
Powercos maintenance and renewal policy is based on balancing the cost of
inspections, servicing and renewal, against the consequences of failure. Premature or
too-frequent servicing and refurbishment unnecessarily increase maintenance costs,
while servicing delayed too long can increase the risk of failure and generally increase
the servicing costs overall. Age-based maintenance and renewal provide a conservative
approach and may result in the potential for high asset investment costs due to
premature replacements.
Practical factors affect the maintenance management balance: for example, a condition
or reliability-based maintenance approach puts heavy onus on the effectiveness of
the maintenance management systems. In the distribution industry, with hundreds of
thousands of assets, a time-based maintenance approach reduces system complexity
to work satisfactorily. Similarly, a time-based approach may better foster maintenance
task scale benefits.
6.3.2.

Maintenance Work Types

Powercos maintenance work comprises the following elements:

Maintenance management and maintenance planning;
Routine inspections and condition assessments;
Routine servicing;
Non-routine servicing (overhauls);
Fault first response, callouts;
Asset relocations (where an asset is simply moved and not replaced);
Evaluation of inspection and condition monitoring results to determine any
maintenance or renewal requirements (this may be performed in the field at the time
of inspection/condition monitoring or later by engineering staff);

94

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Evaluating faults to predict maintenance or renewal requirements;

Performing corrective maintenance or renewal as a result of the above; and
Service disconnections.
6.3.3.

Inspection and Condition Assessments

Powerco has developed specific routine inspection requirements for each asset type.
These requirements are based on a combination of manufacturers recommendations,
industry practice and Powercos own experience. Powercos experience is based on
asset type, duty, incidence of faults and the operating environment.
The frequency of the inspection and condition monitoring is based on the expected
lead time to failure (LTF). The LTF is the time between the asset deterioration
detection and the point of failure. Routine inspection work is scheduled from the date of
the last inspection to fall within the LTF.
Greater emphasis is being placed on non-invasive diagnostic testing wherever
practical. This work involves the adoption of new technology through the chemical
analysis of transformer and switch oils, the use of infrared cameras, ultra-sound
discharge detection, partial discharge and other techniques. In particular, all Kinleith mill
transformers above 500kVA and smaller units of particular importance have oil samples
taken at least every year for dissolved gas analysis. If previous tests indicate that a unit
is deteriorating the sampling period is shortened. Any units that show a deteriorating
trend are either scheduled for a planned outage or have a full transformer condition
assessment carried out.
Powercos contractors have a responsibility to report defects observed while in the
field. This defect information may be used to initiate inspections or maintenance.
A maintenance plan is prepared annually that outlines the scheduled maintenance
tasks, the number of assets that each task applies to, the frequency and the allowed
budget. Corrective Maintenance and Fault Response tasks are included as line items in
the plan to which budget buckets are assigned.
Asset condition information is being logged in the maintenance management system
and this information will be useful for scheduling future renewal and corrective
maintenance activities. The scheduling and execution of distribution network condition
monitoring and maintenance is co-ordinated across the asset base to minimise
cost and avoid duplication of travelling. The detailed maintenance schedules are not
included in this plan.
Powerco is presently developing a format of recording asset maintenance and condition
assessment parameters in a mobility regime. Maintenance and condition parameters
will be logged in hand-held loggers for downloading to a computer maintenance
management system.

Return to Index

6.3.4.

Routine Servicing

6.3.9.

Routine servicing is prescribed where condition-based monitoring is not practical

or possible. The application of these techniques is based on a combination of
manufacturers recommendations, industry practice and Powercos own experience.
Routine servicing work is generally scheduled from the date of the last service.
6.3.5.

Evaluation of the type of faults occurring in a particular area of the network or on a

particular type of equipment can provide information on how to prevent the faults
from recurring. Appropriate maintenance can then be applied to prevent or eliminate
further faults. The type of maintenance or renewal prescribed will depend on the
type of failure mode. The review of the types of faults typically occurs six-monthly
over a two- to three-year window to determine asset service levels and trends
Evaluation of individual feeder performance indices is carried out over a rolling
12-month window. Condition monitoring work will be initiated on feeders with poor
reliability. The type of condition monitoring and the resulting maintenance or renewal
would be dependent on the nature of the unreliability.
Fault First Response and Call Outs

Fault callouts arise where a third party advises that the level of service is not normal,
resulting in a need to investigate and attempt to repair if possible. If repair is not simple,
the problem becomes one of corrective maintenance or renewal.
6.3.8.

6.3.10. Maintenance Management System

A significant Information Systems project (Project GEM) has been under way to convert
Powercos many maintenance management systems into one JD Edwards system. This
project aims to streamline the existing maintenance management process and bring
about greater effectiveness in maintenance information reporting. The introduction of
mobility solutions to network inspections was at the time of writing about to begin.

Evaluation of Faults and Monitoring Reliability (Reliability Driven Renewal)

In addition to routine servicing, Powerco undertakes Reliability Driven Renewal and this
is achieved using the following techniques:

6.3.7.

Individual asset life cycle plans have been prepared for each asset type. These identify
the inspection regimes and their frequencies, along with their associated corrective and
renewal programmes. They are described in overview in Sections 6.6 to 6.10 and in
more detail in Powercos Asset Life Cycle Plan and Powercos Maintenance Standards
for each main asset type.

Evaluation of Condition Monitoring Results

The results of inspection and condition monitoring are analysed by specialist service
providers or by Powerco engineers. The type and extent of maintenance prescribed, or
total asset replacement, will depend on results.
6.3.6.

Individual Asset Life Cycle Plans

Corrective Maintenance

As a result of fault callout, condition monitoring or fault analysis, corrective maintenance

may be required. The type of maintenance carried out will depend on the results of the
investigation and evaluation. Where the relationship between the condition monitoring
and type of maintenance required is known this is described in the maintenance plans
that follow.
Where the condition monitoring indicates that an asset needs replacement or
refurbishment, this is typically scheduled to co-ordinate with other planned work in
the area. In the case of large customers, particularly Kinleith, work is programmed to
coincide with plant maintenance shutdowns. General criteria for asset replacement
have been defined in Section 6.4.

Return to Index

6.4.

Asset Renewal Strategy

6.4.1.

Asset Renewal Strategic Themes

Powercos scheduled asset renewal strategy encompasses three main themes, each of
which is appropriate for the different asset types.
A run to failure strategy is applied to assets where the consequences of failure are not
major and where the costs of ongoing condition monitoring may outweigh the costs of
failure. This strategy is applied to equipment such as small pole-mounted distribution
transformers, underground distribution feeder cable spurs, LV cables, expulsive fuses
and surge arresters.
A risk and condition based replacement strategy is applied where there is a significant
implication due to failure, such as major health and safety risk, significant reliability
of supply consequence or a major expense in repair. This strategy is applied where
ongoing condition inspections are needed to comply with regulations or where the
costs of condition monitoring are small compared with the costs associated with failure.
It is applied to equipment such as poles, cross-arms, important distribution feeder
cables and zone substation transformers.
An age and obsolescence based replacement strategy is applied to assets with a high
level of technical complexity or a high level of interconnectedness with other network
assets (that is, the operation of a system as a whole is dependent on the integrity of
several assets. It includes the need to replace equipment because of availability of spares,
or for standardisation or changes in technology. This strategy is applied to equipment
such as zone substation switchgear, SCADA equipment and protection relays.
Reactive renewal strategies are based around the need to renew assets that have
failed and need to be replaced in a short time or to renew assets with a high imminent
risk of failure.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

95

NPV of asset cost

Sub transmission Cable

Sub transmission Line
Sub transmission Isolators
Zone Sub Transformers
Zone Sub Switchgear - min oil
Zone Sub Switchgear - Other
Zone Sub Switchgear - 11kV
Outdoor Busbars & Structures
Distribution Feeder cables
LV Cables
Distribution Lines
Distribution Circuit Breakers
Ground Mounted Switchgear
Overhead Distribution Switchgear
Distribution ABS
Overhead Expulsion Fuses
Ground Mounted Transformer
Pole Mounted Transformer
Distribution Boxes and Pillars
Surge Arresters
SCADA RTU Outstation
SCADA DC Systems
Zone Substation DC Systems
SCADA MS
Protection Relays
Instrument Transformers
Earthing Systems
Ripple Injection Plants
Pole Mounted Capacitor
Zone Substation Buildings & Fences
11kV Ground Mounted JBs
Back up Diesel Generators
Distribution Voltage Regulators

Asset Type

Best Timing for Asset Renewal

Optimum time
to replace asset
Present

Age &
Obsolescence
Notes
A - Distribution cables replaced on Risk & Condition where known.
B - Any asset can be replaced reactively if it fails in service.
Figure 6.5: Renewal Strategy by Asset Type

6.4.2.

Asset Renewal Timing Renewal versus Maintenance

The question of when to maintain an old asset and when to replace it with new
frequently arises when maintenance and renewal strategy is set. CIGRE Technical
Brochure 353 (WG B2.13) offers some guidance by outlining the theoretical optimum
time to renew assets. While the context of the brochure is electricity transmission, the
theory applies equally well in the distribution context.
An assets economic end of life is relevant in the context of network assets. Usually
technical end of life occurs when an item of equipment fails to perform within the
normal operating requirements and is no longer fit for its original purpose. However,
it may be economic to replace an asset before its technical end of life, or to repair an
asset that has reached its technical end of life.
In an asset renewal decision, there are typically two options: one to replace the asset
(blue curve in Figure 6.6) and the other to continue maintaining the asset (red curve).
In the case of replacing the asset, there is a step change in expenditure due to the
replacement followed by a continued maintenance cost. In the case of continuing to
maintain an existing asset, there is a continued but rising maintenance cost due to the
early stages of asset deterioration and increased maintenance activities, followed by an
accelerated and increasing recurrent maintenance cost.

96

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Risk & Condition

Note A

Run to Failure

Renew existing asset

Continue maintaining

LRMC existing asset renewal

Time from present (yr)

LRMC delayed renewal

Figure 6.6: Theoretical Optimum Timing for Asset Renewal.

The optimum time for asset renewal (economic end of life) is when the long-run marginal
costs of continued ownership are minimum, that is, where the slope of the green line
(between point {0,0} and tangent to the renew asset cost curve) is minimum (the slope
of this line represents the EUAW). In most cases, utilities do not have historical financial
asset data and a mid-life cost analysis has to be done. The optimum time for undertaking
the renewal project is where the marginal costs of the continued maintenance option
equal the long run marginal costs of the renewal project. Therefore, in Figure 6.6, the
optimum timing for the renewal project is where the red curve is tangential with the mauve
LRMC line, which, in this example is in about six years time. In practice, this occurs when
extraordinary maintenance starts to be needed to keep the asset functioning normally.
Powerco has built this theory into a process that resides in the Network Project Approval
Memorandum template. To calculate the marginal cost of continued ownership and the
life cycle cost of ownership of the new asset the following items are considered:
Risk of failure (annualised risk cost, including incidence of outages and customer
complaints);
Asset maintenance and operating costs;
Health and safety risks;
Asset disposal cost; and
Asset market value (or asset purchase cost in the case of a new asset).

Return to Index

6.4.4.

Start

Significant Risk?
(Reliability, Capacity, Safety ...)

Powerco uses age profile-based techniques for estimating the long-term trends in
renewal needs for the network. Figure 6.8 shows the asset replacement profiles of
different asset categories in ODV valuation replacement cost terms with a nine-year
moving average. Further age profiles by asset category are shown in Sections 6.6 to
6.10.

Yes

No
Marginal Cost of Ownership of Existing Asset
< Marginal Cost of Ownership of New Asset?

No

Yes
Is refurbishment and/or redeployment
economically feasible?

No

Yes
Keep Asset

Replace Asset

Note: The Asset may be redeployed

Note: The original Asset is disposed

Figure 6.7: Asset Replacement Decision Process.

If there are significant over-riding risks, such as reliability (i.e. imminent failure), safety,
environmental impact or capacity, a project economic analysis may not be necessary.
6.4.3.

Age Profile-Based Renewal Forecasts

Asset Renewal Forecasting Process

The most accurate means of forecasting renewal needs for the network is through
knowledge of the condition of the assets. A condition-based renewal programme is the
most accurate for a period of around one to five years hence. Beyond this, renewal
forecasts are best made using age profiles.
Renewal forecasting involves determining the quantity of assets needing renewal
(renewal tasks) and the unit costs per renewal task. The forecast renewal expenditure
equals the product of these two factors. The asset condition information is presently
being compiled in the Maintenance Management system, and so the full extent of
condition-based renewal needs is still in progress.

Budgeted asset renewal expenditures can be somewhat different from expenditures

estimated from age profiles alone. Actual asset renewals are generally driven by their
condition rather than their age. Other criteria for replacing equipment include availability
of spares, particularly in the case of switchgear and load control injection equipment,
standardisation and changes in technology (which can arise in protection and SCADA
equipment), latent defects and the present value costs of ongoing maintenance. In
addition, some assets may not be able to reach their standard maximum lives due to
third-party damage, road realignments, overhead line to underground conversions,
higher asset degradation rates than expected or historically deferred maintenance.
The unit costs for the asset renewal tasks do not equate with the ODV unit costs, with
the actual replacement costs significantly higher. This is partly because actual projects
usually have a smaller scale than those assumed by the ODV replacement costs,
partly because of the extra difficulties due to the need to maintain supply to existing
customers, and partly because of the need to work around other services (such as
hand-digging to co-ordinate with Telecom cables).
Additionally, raw material costs, including fabrication steel, electrical steel, aluminium,
copper and oil, have fluctuated dramatically in recent years. This coupled with the
recent falling exchange rate, means that the ODV replacement costs in the 2004
Valuation Handbook have risen on average by around 35 or 40%.
Thirdly, ODV replacement costs understate actual renewal expenditure needs because
ODV valuations do not fully recognise the values of some asset categories (such as
street lighting, service pillars and service connections).
As outlined in Section 4, the concept of capital efficiency links the expenditure on a
project with its associated valuation uplift. When network assets are replaced, the
associated expenditure is a multiple of the ODV. Approximate multiples by asset group
are shown in Table 6.1.

Estimates of condition-based renewal forecasts, calculated on the information available,

have been entered into Powercos Improvement Register and an extract of the renewal
expenditure needs from this is given in Section 9.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

97

In some instances, the date that an asset was installed was never recorded. This means
that the ages of some assets have had to be estimated. Techniques for age estimation
vary, but most rely on association with known ages of related assets. For example, if
the age of a main feeder is not known, then associated customer service connections
or switches can be used to estimate the age where they are known. In some isolated
cases, estimates have had to be made from known dates of subdivisions.

Table 6.1: Asset Renewal Cost Multiples of ODV Unit Rates by Asset Categories
Capital Efficiency Factor
Asset Category

(multiple of ODV unit rate in 2004 valuation Handbook)

Overhead lines

2.9 (Actual range 2 to 6)

Underground cables

1.9

Distribution transformers

1.6

Distribution switchgear

1.6

Zone substation equipment

1.7

Notes:
Capital Efficiency Factor is the inverse of the Capital Efficiency ratio as outlined in Section 4.
Average simple pole replacement cost is $3500 but equivalent ODV uplift is $1350.

Total Asset Replacement Cost vs Age

$120,000

$120,000

$100,000
$80,000
$60,000

$100,000
$80,000
$60,000
$40,000
$20,000

ODV Replacement Cost (June 2007 quantities in $2004 terms)

$20,000

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

$40,000

2010

0
2009

Replacement Cost ($000)

All Assets - Replacement Profile

$140,000

Replacement Cost ($000)

The source of the age profile information is Powercos GIS, Billing and ENS systems.
These information systems have been queried as at June 2007 to form an access
database from which the age profiles have been derived. The age profiles have used
the same (or similar) queries as those that were used for the regulatory asset valuation
in 2004.

The average total life of the network is in the order of 53 years (based on 2007 FRS3
valuation) and this indicates that, on average, the requirement for network renewal will
be rising over the coming years. It is not likely, however, that the rate of renewal will
increase as quickly as the age profile that drops away between 35 to 50 years of age
because the asset lives comprise a spread about a mean, as indicated in Section 6.6,
rather than a sharply defined life. Also assets like cross-arms need renewal at a lines
mid life. Instead the expectation is that the rate of increased renewal requirement will
increase by the rate indicated by the gold line in Figure 6.9.

Year of Replacement (FY)

Current Replacement Cost (including $2004 to $2007 inflationfactor and capital efficiency factor)
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
60
62
64
66
68
ODL

$0
Substations
Underground

Switchgear

Transformers

Overhead

Age (Years)

Figure 6.8: Total Network Asset Age Profile.

Some delays may exist in the information flow from practical completion of an asset
replacement task in the field through the information systems to the age profiles. For
example, when a pole is replaced, there can be work-in-progress delays between the
actual pole being replaced and the overall pole replacement project being completed.

98

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

9 year rolling average, Current Replacement Cost

(including$2004 to $2007 inflation factor and capital efficiency factor)
50 Year Average (Current Replacement Cost) ($2007)
Renewal Budget (Real 2008$)

Figure 6.9: Total Network Asset Replacement Profile.

The asset age profiles are presented in real 2004 dollars (as per the Valuation
Handbook). The current asset replacement profiles and expenditure forecast are in real
December 2009 dollars ($ value at the time of writing).

Return to Index

Based on the gold 9 year rolling average, Current Replacement Cost line, Figure
6.9 shows that the average renewal expenditure required over the next five years is
between $50 and $70 million and that renewal expenditures will need to increase
beyond this over coming years. The renewal budget on the graph (the green line) is
in agreement with the total forecast renewal expenditure costs listed in Section 9.
The large bars in 2009 represent equipment past its design life. The forecast renewal
expenditure has been derived by trending up from the present level and increasing
annually at a fixed percentage. The rate of increase chosen was 8.6%, reflecting the
capability of service providers to increase capacity. This forecast expenditure ramps
the funding up towards the 9 year rolling average, Current Replacement Cost (the
gold line). The gold line is above the present renewal expenditure (green line), indicating
a present shortfall. This implies that a degree of deferral is happening, based on
asset condition, that will eventually have to be caught up. At present, this shortfall
is accommodated by the assets that are over design life but are still in serviceable
condition, and to some extent by development work that includes renewal (or making
up for renewal).
Although the revised renewal forecast is greater than that proposed in the FY2006 plan,
and is moving towards the gold 9 year Average, Replacement Cost line, it is plain that
in the medium term, there is still a shortfall. Furthermore, the replacement profile graphs
are based on a fixed asset life but, in reality the assets have a life that varies according to
a probability function. Powerco has been doing work to define this probability function for
different asset types using Weibull analysis. This is still work in progress, but the analysis
shows that renewal activity should actually be higher than what the gold line represents.
This is because the probability function flattens out the required renewal curve.
The level of expenditure proposed above, and later, attendance to the shortfall, will
require agreement by two main stakeholders, namely, Powercos owner and the
Regulator. The actual level of renewal work (i.e. expenditure) will be dependent on
the individual project and annual budget justification, and in particular the treatment
of the higher renewal costs (when compared with the ODV replacement costs) under
the regulatory regime will be a critical factor in the justification. That is to say, should
the regulatory regime not properly recognise the cost of renewal projects above ODV
(and hence not properly allow for sustainable returns from capital expenditure on these
projects), it would be difficult to justify undertaking this type of work. It is envisaged that
the rules governing Powercos investment strategy and allowed financial return, must
be addressed to reflect this forthcoming reality.
A consequence of not adequately investing in scheduled renewal is that asset renewal
then has to be managed reactively. Powerco is constantly striving to ensure an
appropriate balance between scheduled and reactive work. Reactive work tends to
be associated with long supply outages to customers, increased health and safety
risks, hasty network designs that can lead to short-term patches and future liabilities.
These all lead to increased asset life cycle costs. Failure to proceed with adequate

Return to Index

network renewal approximately in line with the age profiles will significantly increase the
likelihood that reliability of supply and safety levels will deteriorate.
6.4.5.

Implications of the Wall of Wire

Powerco is well aware of the wall of wire and has mentioned this in earlier plans. As
the assets constructed during the post-war development period begin to reach the end
of their life, the scale of renewal activity is expected to have to ramp up. This rampup of renewal activity is known by some as the wall of wire. It is a very significant
challenge with:
Input (steel, copper, aluminium, oil and labour) costs fluctuating;
The quantity of asset needing replacement increasing;
The external pressure (regulated CPI-X and otherwise) to reduce price;
The pressure to deliver better supply quality and maintain reliability;
Contractor relationships and their ability to deliver the required service; and
Increasing land access costs and environmental compliance.
Having the need to invest in ageing electricity infrastructure properly recognised and
catered for in the regulatory regime will be highly important for the future NewZealand
economy. There are several actions that Powerco has under way in response to the
wall of wire issue, described below.
Blitz approach to improve productivity while the number of assets needing renewal
is expected to increase (when assets are at their technical end of life, there isnt a
do nothing option), Powerco can control the costs of replacement by exploiting
the benefits of large scale that are talked about in ODV replacement cost circles. By
increasing the benefits of scale and bringing much replacement work together into
one project, setting up and travel costs can be minimised. In this regard, there is a
significant amount of work that can be bundled together by optimising the project size,
including analysis of shut-down requests and project management activity. Powercos
blitz approach aims to renew a section of line (between two switches) so that the line is
given a clean bill of health for a 10-year period. In addition to the normal replacement,
work done includes general maintenance on the line and a clean up of vegetation.
Optimising the renewal work done when several lines need attention through their
overall condition (that is nearing the end of life but not at end of life), the renewal
work is then prioritised by mapping the recent fault history, along with the presence
of equipment defects found during routine asset inspections. Lines with the highest
concentration of faults and defects are given a higher priority in the works programmes.
Staff training perspective While numbers of trainees have ramped up significantly
in the past few years, no significant numbers of trainees entered either the electricity
distribution industry for around 15 years. As the baby-boom generation of technical

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

99

staff will look to retire, or work shorter or more flexible hours, more onus will go on
to the small number of young engineers and technical staff to keep the wheels of the
energy distribution industry turning. The skills of technical and engineering staff take
many years to build up and we need to be thinking now about future gaps in our
technical staff resources at least 10 years forth so that we dont end up with a gap in
the skill set continuum.
At the same time, the quantity and complexity of electricity network work is expected
to increase as the network continues ageing, as community expectations for greater
supply reliability continue to increase, and as resource consent, regulatory and
environmental requirements continue to get stricter. This means more work and
continually greater demand for skilled staff.
To maintain status quo on numbers and skills for Powerco as an asset owner, a large
number of trainees, comprising a mix of NDE-qualified and graduate trainees, need
to enter the industry. Powerco is responding to this by taking on students and NDE
cadets, building associations with universities and retaining good staff efforts that are
reflected in Powercos business plan as key requirements.
Supply continuity to marginally economic areas A large part of Powercos network
is remote rural. This brings challenges of its own, with lower customer density and
increased costs required to continue supplying these areas.
Some of the remote rural network areas were constructed through subsidies to assist
marginal rural areas to develop. Faced with the oncoming renewal of these lines,
Powerco has been undertaking a fully consultative Remote Area Power Supply (RAPS)
trial to investigate alternative power supply possibilities. The three main options for
supply are: continued maintenance and renewal of the present line; a reduced capacity
line such as SWER; or standalone systems including combinations of micro-hydro,
solar panels and batteries, bottled LPG and diesel generation.
The study commenced mid-2006, when a sample site was selected and landowner
agreement gained for the project. Generally speaking, the study is to investigate known
supply options for the selected site, including technical, social and economic feasibility
for each option. Various stakeholders are included as we work through the project and,
to date, the work has included Powerco commercial and Asset Management staff, the
landowner or customer, Federated Farmers, a remote area power supply specialist and
Ministry of Economic Development staff.
In this instance, the stand-alone system was found to be economic and satisfied
the requirements of the stakeholders. We envisage there will need to be a review
conducted for each uneconomic line to determine the best method of supply when
renewal is required. This type of work is expected to increase in the coming years as
the renewal needs increase, with the certainty given through the amendment of the
Electricity Act.

100

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

6.4.6.

Renewal Investment Risks

The potential reducing costs of technologies such as Photovoltaic Cells and batteries
create risks to the investment in overhead line renewal, particularly those in remote rural
areas. Customers in moderately sparsely populated areas may be more economically
supplied by Remote Area Power Supplies leading to the risk of investments in
conventional line technology being written down in value.
6.4.7.

Historical Rates of Asset Replacement

Historical asset renewal rates provide a useful benchmark against present and forecast
rates. Renewal expenditures back to FY2006 are outlined in Section 9. However,
determining the historical rates of asset replacement to any degree of accuracy for
the previous 10 years is not a particularly fruitful task. Extracts from GIS can provide
the numbers of assets installed during the period, but do not identify the rates of
replacement. Queries of historical work management systems are problematic because
it is difficult to identify the underlying driver for each of the jobs.
6.4.8.

Life Extension Practices

Various life extension techniques have been tried by Powerco, but apart from
transformer refurbishment, these really apply to only specialised assets, and many of
the techniques have had only limited degrees of success. These include:
Retrofitting of vacuum circuit-breakers to existing indoor switchgear at some sites. This
effectively extends the life of a switchboard if the busbar, associated panelwork and
cable terminations are in good condition. However, retrofitting tends to be expensive
and often development-type drivers lead to the need to replace the switchboard with
new.
Techniques for enhancing the useful life of underground cables have been trialled but
not really pursued. These have involved injecting compounds into the cable to prevent
the ingress of moisture. Powerco considers that specifying underground cables with
water-blocking tapes and HD or MDPE outer sheath is a better all-round solution. This
specification results in a slightly higher cost cable initially, but international studies show
that cable life can be extended by 20 years.
Powerco has historically done some work to bandage poles where strength loss occurs
just below the ground surface. Bandaging is usually good for an immediate deferment
strategy but complete replacement is the ideal option. Some line companies have
pinned their poles to achieve an extended life. Pinning involves inserting a steel plate
into the ground next to the pole and bolting the above ground part of the pole to the
plate. Generally, this technique has been used if a risk survey has been completed
and the lines company has decided that quick action is needed. Pinning can buy time
for pole replacement to happen. In our view, pinning is not an ideal practice and it is
usually more cost effective to replace the entire poles.

Return to Index

 Scheduled replacement of distribution surge arrestors;

Redeployment, Upgrade and Disposal of Existing Assets

Specific maintenance is carried out as a result of condition monitoring or reliability

assessment; and

Vegetation management;
Earth testing;

Powerco is presently developing its policy on reusing second-hand materials, such as

poles and conductors, and rotables, such as transformers.

6.6.2.

$30,000

ODV Replacement Cost (March 2009 quantities in $2004 terms)

(includes midlife crossarms)

High-voltage distribution voltage and 400V distribution lines

Current Replacement Cost (including 2.9 capital efficiency factor)

Frequencies of Overhead Line Inspections

Overhead Line Condition Monitoring and Maintenance Summary

The types of condition monitoring and maintenance carried out on overhead lines include:
Visual inspection of pole, conductor, cross-arm, insulators and ancillary equipment
at regular intervals;
Infrared scans, and detailed inspections of fittings on strategic feeders from bucket
truck;
RF inspection of insulators on strategic feeders;
Scheduled replacement of cross-arms;

Return to Index

2024

2023

2022

2021

2020

2019

2018

2017

$20,000
$10,000
$0

66 kV and 33kV subtransmission lines

Circuit Inspection frequencies vary depending upon the criticality of the circuit.
Subtransmission circuits are inspected annually, while distribution circuits are inspected
at five-yearly intervals. Spur lines may be inspected at 10-yearly intervals.
6.6.3.

$40,000

2016

Individual asset life cycle plans have been prepared for the following overhead line asset
types:

$50,000

2015

Individual Asset Life Cycle Plans

$60,000

2014

6.6.1.

$70,000

2013

Overhead Lines

Overhead Line Replacement Profile

$80,000

2012

6.6.

Overhead Line Replacement Profile

2011

Powerco does not anticipate disposing of any major network assets for the duration
of the plan other than obsolete, superseded equipment, or equipment at the end of its
economic life. Equipment that is redundant at a particular location will be maintained
or refurbished and returned to service in an alternative location more appropriate to
its capabilities, provided that it has sufficient life remaining for refurbishment to be
economic. Any serviceable equipment that does not have a potential use within a
reasonable period is disposed of.

6.6.4.

2010

Powerco is also updating its disposal policies in line with its Environmental strategy.
It is not envisaged that any major network assets will need disposal that would have
environmental consequences during the period covered by the plan.

Verification of conductor phase-to-earth clearances.

Replacement Cost ($000)

6.5.

Refurbishing distribution transformers is a way of achieving an extension of life.

Refurbishment tends to be done on the larger indoor-mounted transformers, but for
small pole-mounted transformers, refurbishment is usually not economic.

Year of Replacement (FY)

9 year rolling average, Current Replacement Cost (including 2.9 capital efficiency factor)
50 Year Average (Current Replacement Cost) ($2008)
Renewal Budget (Real 2009$)

Figure 6.10: Overhead Line Replacement Profile.

Figure 6.10 shows a steadily increasing pole asset replacement cost each year. As
mentioned in the commentary after Figure 6.8, Powerco has been doing work to
better define the end-of-life probability functions for different asset types using Weibull
analysis. This is still work in progress, but because the probability function flattens out
the required renewal curve, renewal activity should actually be higher than what the
gold line represents. The analysis can also point to design and construction technique
improvements that we can focus on. Figure 6.11 shows typical probability distribution
functions for different assets, as well as survivor curves for different types of poles.
Of interest, prestressed poles (which could fail due to sudden shock or due to rough
handling during installation) exhibit a fairly constant failure rate, whereas hardwood
poles exhibit a more sharply defined end of life (due to deterioration of strength). These
are points for consideration in our design policies.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

101

and strength, and is most noticed with smaller conductors. Some copper conductors
have become work-hardened due to load cycling, wind movement, vibration and age.

1.0

0.05
0.04
0.03
0.02
0.01
0

6.6.5.

0.8

Network reliability is an important measure of the condition of overhead line equipment.

The Network Performance process applies a control feedback loop to condition-driven
network reliability issues. Reliability performance of feeders is monitored monthly and
actions are tailored when reliability (in particular, faults due to defective equipment) is
showing a worsening trend or is worse than what we would like it to be.

0.6

0.4
0.2

0
0

25

50

75

100
Age (yr)

Reliability Driven Renewal Philosophy

25
Prestressed
Softwood

50
Reinforced
Hardwood

75

100
Age (yr)

Figure 6.11: Sample Survivor and Probability Density Curves for Assets at End of Life.

There are several areas where poles may need replacement before the standard life due
to unsatisfactory materials or manufacture. These include part of the Tauranga network,
which was constructed using poles with top-load strength not clearly established, and
some older concrete poles in the south Taranaki area, where some concrete poles were
manufactured using sand anecdotally contaminated with sea salt. Softwood poles of
certain species installed at various locations throughout Powercos network have been
found to decay rapidly and are requiring early renewal. Conversely, some of the timbers
used for cross-arms 50 years ago are still in good condition and in some cases are
reported to still be of better quality than new cross-arms.

This is a reliability-driven renewal strategy and is proving to be very successful in terms

of work efficiency, safety and reliability enhancement. It is recognised that renewal
has the possibility of improving SAIDI, SAIFI and MAIFI and, as a minimum, does not
deteriorate network reliability. Renewal is targeted to where reliability has the most
potential for improvement and aims to prevent slippage or deterioration of SAIDI and
SAIFI performance. Renewing the network from switch point to switch point, which
includes the removal of known defects, ensures that unplanned outages due to
defective equipment are minimised for a 10-year period.
Vegetation and other reliability impacts aside, as a line ages, its components begin to
fail and this manifests as a worsening reliability (SAIDI and SAIFI) impact. The network
performance process in action can be seen in Section 8. Reliability performance of
feeders is monitored and reported on, with recommendations for corrective actions
when reliability performance worsens. Worsening reliability performance can occur fairly
rapidly. Over the space of two years a feeder can move from being a good performer to
being a poor performer (Figure 6.12).
Theoretical Feeder Age
Reliability Performance

Normally, cross-arm replacement has to occur when the pole reaches its mid-life.
In theory, this is recognised in lives and replacement costs assigned to network
valuations, but in the case of the ODV (from which the age profiles have been derived)
remaining life assessment is based on the age of the poles. This means that an extra
mid-life allowance needs to be made for cross-arm replacement. This has been
factored into the gold lines in the graphs in Figure 6.8 and 6.9.

1.2

2.5

1.0

2.0

Crossarm replacement
Renewal work eg Crossarm
replacement

0.8
SAIDI

Condition monitoring shows that most lines are in the condition expected for their
age, although some in harsh coastal areas they have deteriorated more quickly than
expected. Snow storms in recent years in the Taihape and Northern Manawatu region,
and severe weather in Coromandel, have severely stressed some ageing assets. The
renewal programme has been, and still is focussed in these regions. In the Eastern
regions, many cross-arms require replacement. ACSR conductor corrosion is also
influenced by the presence or lack of grease (some suppliers of this conductor have
not offered grease in their conductors). The coastal environment causes corrosion to
copper conductors. This reduces useful cross-sectional area affecting both conductivity

Typical Feeder Age

Reliability Performance

0.6
Reliability improvement
- eg New Recloser

0.4

1.5
SAIDI

0.06

Fraction of Poles Surviving

Probability Density for End of Life

0.07

1.0
0.5

0.2
0
0
0

10

20

30

40
Age (yr)

10
Feeder 1

20
Feeder 2

30

40
Age (yr)

Figure 6.12: Typical Reliability Performance as Feeders Age.

102

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

The reliability-based renewal programme is about maintaining the existing feeder supply
reliability and, in essence, renewal work is done to restore the underlying reliability.
Reliability improvement, on the other hand, is about improving the underlying feeder
reliability. Improvements can be made through automation or by reducing the number
of customers per feeder.

Forecast Powerco SAIDI Performance

SAIDI (Class B+C) minutes

350

Figure 6.13 shows a case study highlighting the relationship between reliability and
renewal work. Significant work was done in the Taihape area in 2004 and 2005 that
saw reliability performance markedly improve. The graphs highlight that work will be
needed in the near future to renew lines in the Motunui (Waitara) area and Pongaroa
and Tinui areas (Wairarapa).
Zone Sub Station Unplanned outage SAIDI

300
250
200
150
100
50
0
2004

3.50

2005

2006

Powerco incl. storms

3.00

Present Renewal Scenario

2007

2008

2009

Powerco excl. storms

2010

2011

Powerco Target

Powerco Trendline (inclstorms)

2012

2013

2014

Year ending 31 March

Powerco Trendline (exclstorms)

SAIDI Minutes

2.50

Figure 6.14: Anticipated Increased SAIDI Performance Target.

2.00

If line companies are not given adequate encouragement to invest in overhead line
renewal, the outcome will be that reliability will worsen and this will have to be reflected
through increased reliability performance targets. This is shown in Figure 6.14 where
the SAIDI target (violet line) will have to increase (brown line).

1.50
1.00
0.50
0
2003
Pongaroa

2004
Taihape

2005

2006
Tinui

2007
Waitara East

6.6.6.

2008

Subtransmission Line

Due to their importance in terms of reliability and security, these lines are maintained
to a higher level than distribution lines. In general, the lines are in good condition for
their age. The Coromandel 66kV subtransmission, network has reached the end of its
useful life, with significant work completed to thermally upgrade the conductor, upgrade
the conductor, and overhead reconstruction for poles and cross-arms. The problems
encountered with renewing these lines are the difficult terrain and maintaining supply
to end-use customers while the renewal work happens. Some samples of the ACSR
conductors from the 33kV lines from Hawera to Patea, and Whareroa to Patea show
internal corrosion, probably due to a lack of grease during manufacture.

Year

Figure 6.13: Reliability Performance over Time by Zone.

With the oncoming wave of renewal needed, it is expected that reliability performance
will worsen unless renewal activity is able to keep up. The overhead line age profile
indicates that the average age of overhead line assets is increasing. To a certain extent it
will be possible to mask this impact through implementation of automation, more fuses,
reclosers and sectionalisation (although this may see a rise in momentary outages).
6.6.7.

Distribution Line

Condition monitoring shows that most lines are in the condition expected for their age,
although some in harsh coastal areas have deteriorated more quickly than expected,
and, due to economic and customer benefit, remote rural areas have received less
attention. Steel core corrosion in ACSR conductors is a problem in coastal areas. Some
all-aluminium conductors (AAC) have suffered severe corrosion and some older copper
conductors have become work-hardened by wind movement and load cycling.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

103

Underground Cable Replacement Profile

Underground Cable Replacement Profile
$20,000

Cross-arm and insulator replacement is being undertaken to maintain the condition of

the overall line asset.

$4,000
$2,000
2024

2023

2022

2021

2020

2019

$0
2018

Individual asset life cycle plans have been prepared for the following asset types:

$6,000

2017

Individual Asset Life Cycle Plans

$8,000

2016

6.7.1.

$10,000

2015

Underground Cables

$12,000

2014

6.7.

$14,000

2013

Similar condition comments apply as for Distribution (above). However, given the lesser
security and reliability impacts of LV network compared to the above, Powercos response in
this category tends to be more reactive, driven mainly by safety or customer initiated growth.

$16,000

2010

Low-Voltage Line

Replacement Cost ($000)

6.6.8.

$18,000

2012

6.7.4.

2011

A tendency to fail has been noted on kidney strain insulators, although wholesale
replacement is not considered justified. These insulators tend to be located on older
wooden poles and programmed pole replacement will eventually phase them out.

Year of Replacement (FY)

Subtransmission cables

ODV Replacement Cost (March 2009 quantities in $2004 terms)

Distribution and low-voltage cables

9 year rolling average, Current Replacement Cost (including 1.9 capital efficiency factor)

Current Replacement Cost (including 1.9 capital efficiency factor)

50 Year Average (Current Replacement Cost) ($2008)

6.7.2.

Frequencies of Underground Circuit Inspections

Circuit inspection frequencies vary depending upon the criticality of the circuit.
Subtransmission circuits are inspected annually while distribution circuits are inspected
at five-yearly intervals.
6.7.3.

Underground Cable Network Condition Monitoring and Maintenance Summary

The types of condition monitoring and maintenance carried out on underground cables
include:
Review of operating ratings to ensure that ratings are correct for various conditions.
This can be achieved by distributed temperature-sensing devices on some recently
installed subtransmission cables;
Visual survey of subtransmission cable routes for possible damage points;
Partial discharge tests on XLPE subtransmission cables;
Continuous oil pressure monitoring;
Routine sheath-to-earth resistance tests on subtransmission cables;
Visual, infrared and RF inspection of terminations;
Visual inspection of link and pillar boxes;
On-line partial discharge testing of subtransmission cables; and

2009 AMP Renewal Budget (Real 2009$)

Figure 6.15: Underground Cable Replacement Profile.

Subtransmission and distribution cables are generally in good condition, commensurate

with their age.
While the amount of underground cable requiring replacement due to age is
expected to increase steadily, there are several instances where cables need to be
replaced before the end of their standard economic life. These include:
In Tauranga, where large-scale development has taken place, existing 25 sq mm
and 35 sq mm cables need to be replaced by 185 sq mm or 300 sq mm cables for
capacity reasons. This is effectively small cable retired early;
Some early (early to mid 70s) XLPE-type distribution cables, particularly in
the Tauranga and Palmerston North areas, suffer from water-treeing and poor
manufacturing, and are prone to failure. This type of cable was the standard at
the time, however its selection for use varied from place to place and records are
incomplete. The extent of the problem is difficult to quantify;
Unplanned defect replacement as a result of third-party excavations;
Unplanned defect replacement as a result of poor quality jointing techniques, e.g. tin
can joints in Palmerston North area;

Specific maintenance is carried out as a result of condition-monitoring or reliability

assessment.

104

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

In the CBDs of main centres such as Tauranga and Palmerston North, the sustained
levels of load growth mean that many of the distribution cables have not had adequate
capacity to provide a full N-1 security level. Whilst all supply was able to be restored in
Palmerston North after the Main St substation fire in February 2006, the situation was
aided by the benign weather conditions at the time, and feeder inter-tie projects have
since been completed in response. Both CBD distribution networks are gradually and
progressively being upgraded with new 300mm Al cable feeders.

Route realignment for Transit and others;

Consumer requirements;
Link box and underground tee replacement (safety and reliability);
Replacement due to repositioning of other assets (e.g. distribution substations); and
Land subsidence, requiring the moving of cables to a secure area.
While the standard total life applied to XLPE cables of 40 years may be reasonable for
modern XLPE cable, it does appear that there is a statistical spread with some failing
early and some not failing (yet), and that modern XLPE cable is much more robust than
earlier types if specified and laid properly.
6.7.5.

6.7.7.

No significant amounts of 400V cable were installed prior to the 1950s. Early cables
were PILC construction with a 70-year expected total life.

Subtransmission Cables

Powercos inspection of older 400V cables during excavation works indicates that they
are not ageing more than expected. It is not expected that any significant replacement
will be required this year except for some single-core aluminium conductor cable
with only a single layer of insulation. It has been observed that insulation damage or
breakdown allows ingress of water, which severely corrodes the aluminium conductor.
Replacement is required well before the forecast replacement date. The incidence of
cable faults is being monitored, and is the initiating indicator that replacement might be
required.

A section of 33kV cable in Tauranga was replaced because it had a failed screen. A
project to install extra subtransmission cable capacity into the CBD is under way to
cater for load growth and to relieve loading on the existing circuits.
The 33kV oil-filled cables in Palmerston North are around 40 years old. Design
shortcomings in joints of the type used on these cables have been identified elsewhere
and as a result of an investigation the cables have been derated to protect the joints.
The cable circuits may need to be replaced prematurely if the cost of fault repairs
becomes uneconomic.
6.7.6.

Distribution Cables

6.8.

Distribution Transformers

6.8.1.

Individual Asset Life Cycle Plans

Underground construction commenced in the 1950s. The early cables were paperinsulated lead-covered (PILC) type, which have a life expectancy of 70 years, provided
they are not moved. Some early 11kV PILC cables in the New Plymouth area have
brittle lead sheaths, prone to cracking. These cannot be moved, and where cables are
grouped in a common trench, jointing is difficult.
Other cables that may require early replacement are aluminium XLPE cables installed
in the late 1960s and 1970s. These were first-generation XLPE cables, manufactured
using tape semi-conducting layers and water-curing. This, coupled with a lack of
knowledge and subsequent poor handling of cables during installation, has resulted in
some cable failures.
Early 11kV XLPE cables, installed prior to 1975 in the Tauranga area, especially smaller
25mm cables, have a tendency to fail, particularly in sympathy with a downstream
fault. A replacement programme is proceeding for circuit segments where the reliability
impact of a failure is expected to be significant. The problem appears to be due to
poor installation methods, exposure to fault levels above their rating, and poor cable
manufacturing.

Return to Index

Low-Voltage Cables

Individual asset life cycle plans have been prepared for the following distribution
transformer asset types:
Distribution voltage regulators
Distribution transformers
Earthing systems
6.8.2.

Frequencies of Inspections and Maintenance Activities

Distribution transformers and substation inspection frequencies depend on the size

of transformer. Small pole-mounted transformers are inspected on five-yearly cycles
concurrent with the circuit inspections. Ground-mounted transformers receive a sixmonthly and five-yearly safety inspection, a five-year routine inspection and condition
monitoring on a frequency determined by transformer capacity.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

105

6.8.3.

Distribution Transformer Condition Monitoring and Maintenance Summary

Figure 6.16 indicates that distribution transformer replacement costs are set to increase
steadily. This is because of rapid network development in the pas, resulting in year-byyear increases in equipment being installed. This ageing profile is thought to be slightly
pessimistic however, as the load cycles of some distribution transformers result in
them lasting longer than their standard lives. However, our analysis so far shows that
distribution transformers may exhibit a wider variation of the average standard life than
other assets. Older transformers are lasting longer (due to tank material) than their more
modern equivalents.

The types of conditions monitoring and maintenance carried out on distribution

transformers include:
Inspect transformer enclosure condition and locks for security;
Inspect transformer tank and general fittings;
Check Maximum Demand Indicator if fitted;
Oil testing (acidity, dielectric strength & moisture tests performed on transformers
>200 kVA at prescribed intervals unless the transformer is completely sealed);

There are some instances where distribution transformers need to be replaced before
their standard life. Examples of this include:

Check and change breathers;

Replacement due to capacity change, where the age or condition of the changed
transformer makes its reuse uneconomic;

Earth testing; and

Specific maintenance is carried out as a result of condition monitoring or reliability
assessmen, and the transformer will be refurbished if physical and economic criteria
are met.
6.8.4.

Asset replacement due to actual condition;

Unplanned defect repairs as a result of third-party damage;
Overhead transformer to pad-mount conversions due to seismic strength;

Distribution Transformer Replacement Profile

Overhead line to underground conversions;

Severe corrosion in harsh coastal environments; and

Distribution Transformer Replacement Profile

Manufacturing defects (e.g. inadequate corrosion protection).

Replacement Cost ($000)

$12,000

6.8.5.

$10,000

General condition monitoring shows that most transformers are in a condition

that would be expected for their age, although some in harsh coastal areas have
deteriorated faster than expected, and newer transformers are showing signs of tank
deterioration at a much younger age than their older counterparts. The condition of
urban ground-mounted transformers is monitored frequently to ensure both service
performance and public safety.

$8,000
$6,000
$4,000
$2,000

ODV Replacement Cost (March 2009 quantities in $2004 terms)

(includes midlife crossarms)

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

$0

Year of Replacement (FY)

Current Replacement Cost (including 1.6 capital efficiency factor)

Often the LV panel associated with the distribution substation needs to be replaced for
capacity or safety reasons. A recent design change has been instigated to ensure that
LV cable entry is not forced and to ensure the integrity of insulation on the terminations.
Due to the nature of the surrounding soil, earth banks often need to be upgraded.

9 year rolling average, Current Replacement Cost (including 1.6 capital efficiency factor)

Some distribution transformers are replaced on age, but much replacement is due to:

50 Year Average (Current Replacement Cost) ($2008)

Fault or damage that leads to reactive renewal.

2009 AMP Renewal Budget (Real 2009$)

Poor condition discovered on inspection. This may trigger immediate or deferred

renewal.

Figure 6.16: Distribution Transformer Replacement Profile.

106

Condition Overview

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Increased load requirement. This is either because of underlying load growth or due
to a customer initiated project.

Return to Index

Switchgear Replacement Profile

Distribution voltage isolators

Switchgear Replacement Profile

Distribution voltage surge arrestors

$30,000

6.9.3.

Distribution Switchgear Condition Monitoring and Maintenance Summary

The types of condition monitoring and maintenance carried out on distribution

switchgear include:
Routine visual inspection;
Operating tests & mechanism servicing;
Review of recloser and sectionaliser protection settings;
Ultrasonic scans of cast resin-type switchgear;
Clean and re-seal external surfaces on cast resin-type switchgear;
Partial discharge testing on ground-mounted switchgear;
Ultrasonic checks for dry-type cable termination deterioration in ground-mounted
switchgear;
Close-in inspection, infrared scans, adjustment and lubrication of isolators;

ODV Replacement Cost (March 2009 quantities in $2004 terms)

(includes midlife crossarms)

2024

$0
2023

Overhead-mounted distribution switches are inspected during circuit inspections.

These frequencies vary depending upon the criticality of the associated circuit.
Subtransmission circuits are inspected at two yearly Intervals, while distribution circuits
are inspected at five-yearly intervals. Spur lines may be inspected at 10-yearly intervals.
Ground-mounted distribution switchgear is inspected on annual and five-yearly cycles.

$5,000

2022

Frequencies of Inspections and Maintenance Activities

2021

6.9.2.

$10,000

2020

11 kV ground-mounted link boxes

$15,000

2019

11 kV pole-mounted capacitors

2018

400 V distribution boxes (pillars)

$20,000

2017

Distribution voltage line reclosers

$25,000

2010

Distribution switchgear (ground-mounted)

Replacement Cost ($000)

Distribution voltage expulsion fuses

2016

6.9.4.

2015

Individual asset life cycle plans have been prepared for the following asset types:
Distribution voltage circuit-breakers

2014

Individual Asset Life Cycle Plans

2013

6.9.1.

Specific maintenance is carried out as a result of condition monitoring or reliability

assessment. The switchgear will be refurbished if operational, physical and
economic criteria are met.

2012

Distribution Switchgear

2011

6.9.

Year of Replacement (FY)

Current Replacement Cost (including 1.6 capital efficiency factor)

9 year rolling average, Current Replacement Cost (including 1.6 capital efficiency factor)
50 Year Average (Current Replacement Cost) ($2008)
Renewal Budget (Real 2009$)

Figure 6.17: Switchgear Replacement Profile.

The rate of switchgear replacement is likely to be steady over the planning period of this
plan. The large bar in FY2010 represents switchgear past its design life, and the other large
bar represents unknown age switchgear with different standard lives. Proper condition
monitoring will ensure that switchgear is replaced at the optimal time. These assets are
in the condition to be expected for their age and location. Greater maintenance or earlier
replacement is undertaken in coastal areas when necessary.
A significant amount of work has been done to re-estimate the ages of distribution
switchgear, given the extensive proportion of the switchgear with a pre-estimated
installation date of 1977. This has resulted in a better understanding of the age profile
of this switchgear.

Earth testing;
Gas pressure checks;
Oil condition testing; and

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

107

There are occasions when switchgear needs to be replaced before its standard life.
Examples include:
Asset replacement due to actual condition;
Unplanned defect repairs as a result of third-party damage;
Network reconfiguration to achieve operational flexibility, improved reliability or
efficiency; and

6.10. Zone Substation Equipment

6.10.1. Individual Asset Life Cycle Plans

Individual asset life cycle plans have been prepared for the following asset types:
66/11kV power transformers
33/11kV power transformers

Replacement to remove safety hazards associated with the equipment.

66 kV and 33kV circuit-breakers

Most overhead switchgear replacement is reactive.

66kV and 33kV isolators

The condition of urban ground-mounted switchgear is monitored frequently to ensure

serviceability and public safety. Other than the exceptions noted below, these assets
are in good condition as appropriate for their location and age.
Several failures of one type of oil-filled ring main unit have occurred because of
apparent poor design, poor assembly or water ingress. Some remedial work has been
carried out in accordance with the manufacturers instructions. Operating restrictions
are in place for this switchgear, and a renewal programme has been established in
advance of its design life.
A significant amount of Magnefix resin-insulated switchgear is in service, but the
majority is in good condition and is housed in dry, clean environments. Replacement
is planned only where the current rating is causing operating restrictions, deteriorated
resin components are resulting in partial discharge, or where the units are open points
between feeders.
The following types of switchgear are being targeted for replacement:
Remaining SD series 1;
Magnefix (especially in high salt areas and in Tokoroa where fog causes partial
discharge); and

33kV surge arrestors

66 kV 33kV and 11kV busbars
33kV and 11kV protection relays
33kV instrument transformers
Zone substation supply batteries and charging system
Distribution voltage circuit-breakers
DC supply systems
SCADA remote terminal units
Distribution voltage instrument transformers
Earthing systems
Zone substation buildings and security fences
6.10.2. Frequencies of Inspections and Maintenance Activities

Zone substation equipment receives a three-month visual inspection with special

inspections and maintenance generally being carried out at yearly, three-yearly, fiveyearly and 10-yearly intervals.

J2/ETV2 Long and Crawford and earlier models.

The criticality of switchgear is considered when determining order of replacement, with
units at feeder open points being viewed as most important.
A pilot programme has been carried out in the Western region to test the condition
of oil-filled distribution switchgear. The results showed that the oil-filled switchgear
population is generally in very good condition.
Air-break switches and fuse isolators are inspected periodically and repaired or
replaced as problems are detected and no programme for replacing them is considered
necessary. The age of many of them is not recorded, and they are serviced at intervals
prescribed by Powercos Ground Mounted Switchgear Maintenance standard or when
found faulty. They are replaced as found necessary but not systematically replaced.

108

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

6.10.4. Zone Substation Replacement Profile

The types of condition monitoring and maintenance performed on zone substation

equipment include:

Zone Substation Replacement Profile

(a) Zone substation transformers and tapchangers:

$45,000
$40,000

Visual inspection for mechanical wear, damage and serviceability

$2,000

ODV Replacement Cost (March 2009 quantities in $2004 terms)

2024

Year of Replacement (FY)

Current Replacement Cost (including 1.9 capital efficiency factor)

General operational tests and maintenance, monitor operational performance

9 year rolling average, Current Replacement Cost (including 1.9 capital efficiency factor)

High-voltage test

50 Year Average (Current Replacement Cost) ($2008)

DC insulation test

2023

2022

2021

2020

2019

$0
2018

(b) Circuit-breakers and switchboards:

$4,000

2017

Infra-red scans

$5,000

2016

Insulation resistance/polarisation tests

$10,000

2015

Oil tests (degree of polymerisation, dielectric strength, moisture, acidity)

$15,000

2014

General operating tests and maintenance

$20,000

2013

Fans/pumps operational checks

$30,000

2012

Dehydrating breather maintenance

$35,000

2010

Tap changer contact and mechanism maintenance

Replacement Cost ($000)

Visual inspection for mechanical deterioration and damage

2011

6.10.3. Zone Substation Condition Monitoring and Maintenance Summary

2009 AMP Renewal Budget (Real 2009$)

Contact resistance test

Figure 6.18: Zone Substation Replacement Profile.

Partial discharge condition monitoring

Figure 6.18 shows a large amount of equipment due for replacement in 2010. Most
of this is load control equipment that is beyond its standard design life, and plans
for its replacement are set out in Powercos Load Control Asset Management Plan.
Two plants are programmed for installation in FYE 2010 and five in FYE 2011. The
replacement cost bars on this graph assume that like is replaced with like. Because
zone substation equipment is complicated, subordinate age profiles of zone substation
and protection and control equipment are shown in Figures 6.20 to 6.27.

(c) Inspection and testing is also conducted on ancillary items at zone substations,
including:
Protection relays
Instrument transformers
Isolators
SCADA remote terminal units
Buswork and surge arrestors
Batteries and charger
Buildings, fences and enclosures
Earthing system
LVAC supply

Zone substation equipment undergoes regular condition monitoring, and is replaced

when its condition indicates that replacement is advisable. The figure indicates
significant variation in replacement cost from year to year, and some replacement will
have to be advanced or deferred to smooth out the capital requirement and workload.
Assets sometimes need to be replaced before their standard life. Reasons for this include:
Asset replacement due to actual condition;
Reliability issues, including spares and ability to service;
Replacement due to operational constraint or safety issues;
Insulator/structure replacement in heavy pollution areas, or other environmental factors;
Replace/reposition zone substation due to load changes;
Environmental compliance issues.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

109

6.10.5. Zone Substation Switchgear

The 33kV and 11kV switchgear is inspected in conjunction with line, transformer
or substation inspections. These assets are generally found in the condition to be
expected for their age and location. Greater maintenance or earlier replacement is
undertaken in coastal areas when necessary.
Figure 6.20 shows an age profile of zone substation switchgear (11kV, 33kV and 66kV
switchgear). In this graph, the peaky bar of 25 to 30 years is because of unknown
age switchgear and the low amount of switchgear in the new to five-year category is
because the age profile results from ODV asset registers around three years old.
Zone Substation Switchgear

Replacement Cost ($000)

25,000

15,000
10,000
5,000

50 to 55

45 to 50

40 to 45

35 to 40

30 to 35

25 to 30

20 to 25

15 to 20

10 to 15

0
5 to 10

There are about 200 33kV or 66kV circuit-breakers on Powercos networks, with ages
ranging from new to 45 years. The standard life of these is 40 years for outdoor and
45 years for indoor. While it is expected that all of these are serviceable, lack of parts
makes maintaining some of the older units difficult. Because of the large number
installed between 1970 and 1985, which will reach their standard age between 2010
and 2025, some of the oldest units are programmed for replacement. Some of the
withdrawn units are retained for spares to support in service units.

Focus to be on
renewing these in
next five years

0 to 5

Figure 6.19: 33kV Zone Substation Switchgear at Hamilton St.

20,000

Age (years)
Figure 6.20: Age Profile for Zone Substation Switchgear.

Many 11kV oil circuit-breakers, mostly Reyrolle LMT, were installed between 1960 and
1980. Reyrolle considers these to have a 25-year life, but their standard life is 45 years.
Powercos experience is that circuit-breakers older than 45 years, while sometimes
failing due to faulty auxiliary contacts, are still performing satisfactorily, and although
no spare parts are available from the manufacturer, there are enough Reyrolle spare
second-hand units around that maintaining them is not a problem.
Several older switchboards or individual circuit-breakers have been identified as
requiring replacement due to condition, lack of earthing equipment or lack of
replacement spare parts.

110

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

6.10.6. Zone Transformers

Zone Substation Transformers

20,000

May need mid life refurbishment

Replacement Cost ($000)

18,000
16,000
14,000
12,000

Focus to be on
retiring these in
next five years

10,000
8,000
6,000
4,000
2,000

50 to 55

45 to 50

40 to 45

35 to 40

30 to 35

25 to 30

20 to 25

15 to 20

10 to 15

5 to 10

0 to 5

Age (years)

Figure 6.22: Zone Substation Transformer Age Profile.

6.10.7. Zone Substation DC Supplies

Obsolete batteries and chargers are being systematically replaced. This is a relatively lowcost, but critically important, item. An age profile for DC Supplies is shown in Figure 6.23.
Zone Substation DC Supply Systems
Figure 6.21: Zone Substation Transformers at Te Puke.

800
Replacement Cost ($000)

Given the relatively small number of zone transformers, their high value and their
condition being monitored by regular DGA testing, zone transformers will be replaced
only when necessary. When a zone transformer does need to be renewed, a larger
transformer is generally purchased and transformers are relocated or trickled down
the network to allow more optimal utilisation. Aged transformers are retired to sites of
low supply risk (refer to Section 7.8.4). This strategy also provides a newer transformer
for larger loads where increased reliability and fault tolerance is more important. The
age profile of Powercos zone substation transformers is shown in Figure 6.22.

900
Focus of renewal effort

700
600
500
400
300
200
100

18 to 20

16 to 18

14 to 16

12 to 14

10 to 12

8 to 10

6 to 8

4 to 6

2 to 4

0 to 2

Age (years)

Figure 6.23: Age Profile for Zone Substation DC Supplies.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

111

6.10.8. Substation Buildings

6.11.2. Frequencies of Inspections and Maintenance Activities

Buildings are generally in a well-maintained condition, with substation building

maintenance being carried out as needed, such as repainting and re-roofing. Significant
renewals are usually co-ordinated with extensions or other zone substation upgrade
or renewal work. Figure 6.24 shows an age profile and condition profile for Zone
Substation Buildings. Poor condition means that there are non-compliances, such as
seismic strength, potential flooding or Building Code requirements.
Zone Substation Building Age Profile

Zone Substation Building Condition

3000

4000

Area (sq m)

Area (sq m)

1000

95

1
re

0
95

-5

0
96

-6

0
97

-7

0
98

-8

0
99

-9

0
00

2000

-0

Protection maintenance testing to guarantee asset integrity;

Protection discrimination and control issues. Replacing equipment no longer

capable of required discrimination;
Protection system philosophy review to enhance network protection;
SCADA I/O integrity testing between input and master-station; and

1000

500

The types of conditions monitoring and maintenance performed on protection and

control equipment include:

Protection setting verification on-site;

3000

1500

6.11.3. Protection and Control Condition Monitoring and Maintenance Summary

Protection setting review to ensure that the equipment being protected will be
adequately served by the relay settings;

2500
2000

Protection and Control equipment receives a three-month visual inspection with special
inspections and maintenance generally being carried out at yearly, two-yearly, fiveyearly and 10-yearly intervals.

Communication systems.

0
Poor

Construction Year

Average

Good

Very Good

6.11.4. Protection Relays

Condition

Protection Systems
10,000

Figure 6.24: Condition and Age Profiles for Zone Substation Buildings.

Ripple injection plants

112

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

1,000
45 to 50

40 to 45

0
35 to 40

SCADA supply batteries and charging system

2,000

30 to 35

SCADA master station

3,000

25 to 30

SCADA RTU outstations

4,000

20 to 25

11kV protection relays

5,000

15 to 20

33kV protection relays

6,000

10 to 15

Individual asset life cycle plans have been prepared for the following protection and
control asset types:

7,000

5 to 10

6.11.1. Individual Asset Life Cycle Plans

8,000

0 to 5

6.11. Protection and Control Equipment

Replacement Cost ($000)

9,000

Age (years)

Figure 6.25: Age Profile for Protection Systems.

Return to Index

Powerco has collated the protection configuration technical information from all regions
into a single reference database. This has enhanced the management of this key
engineering information. Data maintenance and upgrades of this facility will continue.
6.11.5. SCADA and Communications

As a broad policy, open architecture systems are adopted whenever possible with a
view to facilitating future development.
Powerco has replaced its Eastern Region SCADA Master Station with a new OSI
Monarch system. The plan is to migrate the Western Region to this same platform in
the next two years (also described in Section 8.6.3).

Return to Index

3,000
2,500
2,000
1,500
1,000

18 to 20

16 to 18

14 to 16

12 to 14

10 to 12

8 to 10

6 to 8

0
4 to 6

In the Palmerston North area, the network has been constructed to allow multiple
supplies to various substations. This configuration, coupled with the in feed from the
Tararua windfarm, greatly improves the security of supply to the district. However, the
existing non-unit protection systems installed in the district have not been designed to
fully complement this and several undesirable trippings have occurred. To address this
deficiency, the possibility of introducing unit protection schemes to particular parts of
the networks is being developed.

3,500

2 to 4

The growth happening in Tauranga and the demand for faster fault clearance has
necessitated an upgrade of older protection schemes. This work is now completed.

SCADA & Communications Systems

4,000

0 to 2

The deterioration of the older electro-mechanical protection equipment begins to

influence its reliability after 25-30 years of service. In addition, the older equipment is
becoming technically inferior as the variety of functions, such as data acquisition and
interrogation now provided by newer systems are becoming standard features. The
replacement programme for ageing equipment is expected to continue over the next
decade as many relays in this category are now approaching or have exceeded their
useful life.

All Dataterm SCADA RTUs have exceeded their supportable life span. Powerco has
implemented a project to replace all the Dataterm RTUs with modern RTUs. The new
RTUs support the proposed migration to the DNP3 protocol as the preferred protocol
for Master Station to RTU communication. The Dataterm replacement project is
scheduled for completion prior to the rollout of the new Monarch SCADA system into
the Western region.

Replacement Cost ($000)

Older electro-mechanical relays begin to lose reliability with age, and newer electronic
relays become obsolete as protocols are developed and replacement parts become
unavailable. Over the past few years, Powerco conducted several reviews and
equipment upgrades in the Eastern and Western regions to improve the reliability of
its protection systems. Similar reviews and upgrades will continue in conjunction with
the planned network developments. The age profile of protection relays and systems
is shown in Figure 6.25. A Protection Systems Asset Management Plan presents a
programme of protection equipment replacements until 2014. While this is based
on age and type of relay, relay performance and actual replacement, or upgrade of
protection systems, is reliability or risk-driven.

Age (years)

Figure 6.26: SCADA and Communications System Age Profile.

Communication transmission systems will be renewed and developed utilising digital

radio, fibre and copper transmission mediums to build an inter-region, high-capacity
backbone. This will then enable digital cross-connectability to zone substation level and
provide valuable inter-area communications. The improved management, availability
and control that can be seen from a digital transmission system will enable Powerco to
provide diverse routing and industry standard communication protocols throughout its
operational network.
An age profile of SCADA and Communications system equipment is shown in Figure
6.26. While there are variously aged RTUs, these are still performing reliably. The main
focus will be ensuring that the protocols used by these RTUs are compatible with the
new master stations.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

113

6.11.6. Load Control Plants

As a consequence of past deferrals, Powercos load control systems need renewal

investment, especially in the Western region, to ensure they can adequately continue
to meet the levels of service identified in the load control AMP and the requirements of
Powercos connection standard.
The load control development and life cycle asset management plan includes a
prioritised list of issues and indicates required capital investment profile to address
urgent and long-term issues. The application of the management plan will require the
co-operation of all stakeholders to ensure the sustainable operation of an effective
load management system. Modern plants have features that make them perform
better than their predecessors. The plan lays out a five-year programme for transmitter
replacement, which, instead of being like-for-like replacement, takes into account
advances in technology and a strategy around plants situated at GXPs.

4,000
3,000
2,000
1,000

45 to 50

40 to 45

35 to 40

30 to 35

25 to 30

20 to 25

15 to 20

10 to 15

0
5 to 10

In the last few years, however, greater certainty has emerged. For instance, the
Electricity Commissions model use of system agreement stipulates that grid and
network security of supply and control of transmission peaks take priority over
gentailers interests. Further, the Electricity Commissions advanced metering guidelines
specify that smart meters should be added to respond to a ripple signal sent via
distributors.

5,000

0 to 5

While load control has been used in NewZealand for the past 60 years, over the last
decade, much renewal work on load control injection plants and equipment, especially
in Powercos Western region, has been deferred. The legislated requirement to split
the ownership of electricity distribution lines and retail business components did not
encourage investment in load control because it lay in between these two functions.
For instance, in Powercos network area, Powerco owns the ripple injection plants but
third parties own the receive relays.

Load Control Injection Plants

6,000

Replacement Cost ($000)

Load (ripple) control systems are described in detail in Powercos Load Control System
Asset Management Plan. From this, an age profile of injection plants is presented in
Figure 6.27. The plan identifies that many of the injection plants are well beyond their
standard life and this means that the availability of spare parts is a concern.

Age (years)

Figure 6.27: Age Profile of Load Control Injection Plants.

6.11.7. Metering System Instrument Transformers

Where the instrument transformers are used to provide inputs to power meters that
are used by energy companies to provide energy consumption data for reconciliation
in the NewZealand energy market, the transformers are required to meet the accuracy
standards defined in the Electricity Governance Regulations 2003, which have replaced
the MARIA codes of practice. All instrument transformers used for this purpose are
adequately rated.
A High Voltage Metering Unit Asset Management plan has been substantially
completed. Issues identified by the plan will be addressed on a case-by-case basis. In
general, the existing assets are considered capable of providing acceptable levels of
service.
The major upcoming renewal work for the zone substation assets is summarised in
Table 6.2. It should be noted that the majority of subtransmission replacements involve
upgrading rather than like-with-like replacement, and they are included in this plan as
development projects.
6.11.8. GXP Metering Systems

Most of Powercos GXP metering is in excess of 20 years old and is in need of renewal.
When renewal takes place, new technologies will be adopted as set out in Section 8.6.

114

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

6.11.9. Street Lighting Control Assets

Maintenance of Powerco owned control relays and fuse bases is generally carried
out on a reactive basis, where equipment is serviced or replaced as required when
evidenced by performance issues. Present owners of street lighting control receivers
will need to be consulted with regard to upgrading legacy receivers to match the
operating parameters of any new injection equipment. Maintenance of Powerco owned
street lighting supply conductors (5th wire) is carried out in reactive fashion as part of
general low voltage fault response.
6.12. Critical and Emergency Spares
Powerco has an inventory of holdings and requirements for critical spares and this is
kept as a standard on the Business Management System. Powercos contractors are
charged with managing and maintaining the critical spares. The ages of the critical
spares match the ages of their associated assets. From time to time, the inventory is
reviewed for up-to-dateness and adequacy.
Holdings of emergency spares are kept by Powercos contractors. The contractors are
required to hold certain stock levels to cater for emergency situations. There are also
close relationships with suppliers and other utilities that can provide stock levels in short
times if needed.
6.13. Network Renewal Project Summary
Major renewal projects residing in the Improvement Register (of value typically greater
than $500,000, or specifically mentioned in the AMP) to FY15 are summarised in Table
6.2 , along with their options and the Asset Management driver.
The contents of the Improvement Register are assessed using a multi-stakeholder
assessment process (Coin) whereby projects are reviewed against a set of four
strategic objectives representing stakeholder needs under which constraints are applied
(refer to Section 2.6). The summaries do not cater for any projects that have delayed
implementation or are carried over from one year to another.
The expenditure totals in Table 6.2 reflect the expenditure forecasts in Section 9.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

115

Table 6.2: Major Renewal Projects

Potential Projects
Replacement and Renewal Project

4OH
Misc pole replacements
4OH Blitz, Western Region
DOH
Misc complete distribuition overhead replacements
Misc conductor replacements
Misc pole replacements
Misc crossarm replacements
DOH Blitz, Western Region
SOH
Misc crossarm replacements
Misc combined pole and crossarm replacements
Misc insulator replacements
Misc pole replacements
SOH Blitz, Western Region
4UG
Misc OHUG program works
Misc LV cable/equipment works
DUG
Misc iron pothead replacements
Misc deteriorated cable replacements
Palmerston North CBD HV UG Cable replacement
SUG
Misc 33kV cable replacements due to TP changes
Misc deteriorated cable replacements
AEN
Misc RAPs assessment & implementation
COM
Misc Repeater battery charger replacements
Misc Repeater DC battery replacements
Misc RTU renewals
DAB
Misc ABS reactive renewals
DGS
Misc switchgear replacements
DLF
Misc links/fuse reactive renewals

Project Driver

AMP
Reference
Section

Options

FY2011

FY2012

FY2013

FY2014

FY2015

$1,041,000

$1,030,000
$600,000

$1,030,000
$750,000

$950,000
$950,000

$950,000
$1,150,000

Asset Integrity; Safety

Asset Integrity; Safety

6.6.8
6.6.8

Tolerate worse relibility

Tolerate worse relibility

$330,000
$550,000
$3,525,000
$30,000
$3,383,000

$200,000
$640,000
$3,430,000

$100,000
$2,455,000

$4,600,000

$5,100,000

$80,000
$6,100,000

Reliability; Safety
Reliability; Safety
Reliability; Safety
Reliability; Safety
Reliability; Safety

6.6.7
6.6.7
6.6.7
6.6.7
6.6.7

Tolerate worse relibility

Tolerate worse relibility
Tolerate worse relibility
Tolerate worse relibility
Tolerate worse relibility

Reliability; Safety
Reliability; Safety
Reliability; Safety
Reliability; Safety
Reliability; Safety

6.6.6
6.6.6
6.6.6
6.6.6
6.6.6

Tolerate worse relibility

Tolerate worse relibility
Tolerate worse relibility
Tolerate worse relibility
Tolerate worse relibility

Stakeholder requirement
Asset Integrity; Safety

6.7.7
6.7.7

Do nothing - accept H&S risk, reliability issues

$586,600

Reliability; Safety
Reliability
Reliability

6.7.6
6.7.6
6.7.4

Tolerate cable failures

Tolerate cable failures
Tolerate cable failures

$250,000

Asset Integrity
Reliability

6.7.5
6.7.5

Tolerate cable failures

Asset Integrity; Safety

6.4.5

Renew lines

$50,000
$40,000
$5,600,000

$280,000
$100,000
$150,000
$260,000
$978,000

$125,000
$80,000
$395,000
$2,300,000

$150,000
$280,000
$2,800,000

$3,300,000

$3,800,000

$150,000
$495,000

$350,000

$350,000

$391,000

$250,000

$65,000
$657,800
$579,200

$65,000
$1,468,200
$539,800

$65,000
$762,000
$545,800

$65,000
$652,000
$534,600

$65,000

$450,000

$318,000

$110,000

$110,000

$110,000

$110,000

$28,500
$30,000
$40,000

$28,500
$30,000

$28,500
$30,000

$28,500
$30,000

$25,000
$25,000

Asset Integrity; Reliability

Asset Integrity; Reliability
Asset Integrity; Reliability

6.11.5
6.11.5
6.11.5

Do nothing, take risk of losing communications

Do nothing, take risk of losing communications
Do nothing - accept H&S risk, more maintenance

$635,000

$715,000

$665,000

$665,000

$665,000

Asset Integrity; Reliability

6.9.4

Do nothing - accept H&S risk, more maintenance

$65,000

Asset Integrity; Reliability

6.9.4

Do nothing - accept H&S risk, more maintenance

$35,000
$50,000

$50,000

$50,000

$50,000

$50,000

Asset Integrity; Reliability

6.9.4

Do nothing - accept H&S risk, reliability issues

$130,000
$900,000

$130,000
$900,000

$130,000
$900,000

$130,000
$900,000

$130,000
$900,000

Asset Integrity; Reliability

Asset Integrity; Reliability

6.8.4
6.8.4

Do nothing - accept H&S risk, reliability issues

Do nothing - accept H&S risk, reliability issues

$555,000

$170,000

Asset Integrity; Reliability

6.8.4

Do nothing - accept H&S risk, reliability issues

$130,000
$265,880

$399,490

$380,000

$395,000

$350,000

Asset Integrity; Reliability

Asset Integrity; Reliability

6.8.4
6.8.4

Do nothing - accept H&S risk, reliability issues

Do nothing - accept H&S risk, reliability issues

$1,650,000

$1,650,000

$1,650,000

$1,650,000

$1,650,000

Asset Integrity; Reliability

6.8.4

Do nothing - accept H&S risk, reliability issues

DOT

Misc DOT replacements

Replace pole mount transformers
DUT

Misc outdated ground mount transformer

replacements
Misc cable replacements
Misc deteriorated ground mount transformer
replacements
Replace ground mount transformers

116

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Potential Projects
Replacement and Renewal Project

AMP
Reference
Section

Project Driver

FY2011

FY2012

FY2013

FY2014

FY2015

$50,000
$100,000

Options

ZTR

Misc transformer refurbishments

Misc transformer rotations
Volt Control Relay upgrade
Motukawa Zone Transformer upgrades, 6.6 to 11kV

$200,000
$100,000

$150,000
$100,000
$600,000

$100,000

$100,000

$40,000

$105,000

$40,000

$30,000

Asset Integrity; Reliability

Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability

6.10.6
6.10.6
6.10.6
6.10.6

Do nothing - accept H&S risk, reliability issues

Do as opportunity arises

Asset Integrity; Reliability

6.9.4

Do nothing - accept H&S risk, more maintenance

Asset Integrity; Reliability

Service

6.9.4
6.9.4

Do nothing - accept H&S risk, more maintenance

Asset Integrity; Reliability

Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability
Security

6.11.6
6.11.6
6.11.6
6.11.6
6.11.6
6.11.6

Do nothing - accept H&S risk, more maintenance

Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Decommission plant, increase network
development

Asset Integrity; Security

Asset Integrity; Security

6.10.6
6.10.6

Do nothing, take risk of losing controllability

Do nothing, take risk of losing controllability

Asset Integrity; Relibility

6.11.4

Do nothing - accept H&S risk, reliabiliy issues

Service; Asset
Performance

6.11.5

Do nothing and some areas will not have SCADA

coverage

Asset Integrity; Reliability

Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability
Asset Integrity; Reliability

6.10.5
6.10.5
6.10.5
6.10.5
6.10.5
6.10.5
6.10.5
6.10.5

Do nothing - accept H&S risk, more maintenance

Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance
Do nothing - accept H&S risk, more maintenance

DSR

Misc recloser/sectionaliser replacements/upgrades

SSG

Misc 33kV CB replacements

Misc new 33kV switchgear installations

$200,000
$-

ZIE

TP Kinleith Injection Plant replacement

Lake Rd Injection Plant replacement
Okoia Injection Plant renewal
Arahina Injection Plant renewal
Mikkelsen Rd Injection Plant replacement
Kinleith Injection Plant replacement

$750,000
$750,000
$700,000
$700,000
$700,000
$700,000

ZOT

Misc substation DC battery replacements

Misc substation DC battery charger replacements

$25,000
$14,000

$40,000
$19,000

$75,000
$24,000

$70,000
$24,000

$80,000

$244,000

$180,000

$120,000

$80,000

$80,000

$1,035,000
$575,000
$300,000
$1,500,000

$550,000

$960,000
$300,000
$150,000

$50,000
$15,000

ZPR

Misc protection replacements/upgrades

ZSC

Misc RTU to DNP3 migrations

ZSG

Misc 11kV CB replacements

Misc 33kV CB replacements
Greerton 33kV CB replacements
Feilding 33kV Switchgear
Cloton Rd 11kV Switchgear replacement
Cambia 11kV Switchgear replacement
Mangamutu 11kV Switchgear replacement
Mikkelsen Rd 11 kV Switchboard replacement
Totals

$650,000
$585,000
$554,000
$20,814,380

$27,614,990

$19,764,300

$19,135,100

$19,016,600

unspecified development projects

$0

$0

$0

$0

$0

Reactive Development
Deferrals from previous year
Deferrals to next year
Total (real)
Total (nominal)

$7,628,371
$8,279,880
$8,987,419
$9,755,807 $10,590,275
$$4,604,091 $14,624,335 $15,290,369 $13,694,380
-$4,604,091 -$14,624,335 -$15,290,369 -$13,694,380 -$10,206,645
$23,838,660 $25,874,626 $28,085,685 $30,486,896 $33,094,610
$24,440,529 $27,131,396 $30,097,746 $33,389,741 $37,043,158

Return to Index

$175,000
$85,000

$150,000

$300,000
$400,000
$150,000
$750,000

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

117

7.

Network Development Plan System Growth

7.1.

Introduction
This section of the plan describes network development and security assessment
processes to address system growth. The network security criteria in the following
sections describe the factors considered when preparing the long- and medium-term
development plans. Load forecasts are presented and these, along with the security
criteria, culminate in the capital works programme for development.

Average Duration for First Interruption

Average Duration for Second Interruption

AAA

None

50% to 100% load, 60 minutes

AA+

15 seconds

Remainder, repair time

50% to 100% load, 60 minutes
Remainder, repair time
AA

60 minutes

Repair time

Long-Term Development Plan (Subtransmission Development);

A1

Isolation time

Repair time

Medium-Term Development Plan (Distribution Development);

A2

Repair time

Repair time

Network Reliability Improvement and Overhead Line Renewal Plan; and

Various specific Asset Management plans that cover development.
These plans are discussed in this section of the plan, including tables of projects giving
year, estimated cost and brief comment for each proposed project. Detailed discussion
of these projects, generally including linkages to service level targets, can be found
in the above plans. Because of the large number of projects, detailed discussion is
considered to be beyond the scope of this document.

Details of the classifications are as follows:

AAA

Supply is uninterrupted in the event of the outage of one major element of the network.
Load can be transferred to other substations without interruption by switching on the
network if necessary to avoid exceeding ratings. If two lines or cables supplying a zone
substation are in sufficient proximity for a single event to cause the failure of both, at least
50% of the load can be supplied from an alternative source.

AA+

Supply may be lost in the event of the outage of one major element of the network. Supply
is restored automatically within 15 seconds by automatic switching at subtransmission or
distribution level. If two lines or cables supplying a zone substation are in sufficient proximity
for a single event to cause the failure of both, at least 50% of the load can be supplied from
an alternative source. (However, this is uncommon for AA+ supplies).

AA

Supply may be lost in the event of the outage of one major element of the network. Supply
can be restored in 60 minutes by switching at subtransmission or distribution level.

A1

Supply may be lost in the event of the outage of one major element of the subtransmission
network. Supply can be restored by switching after the faulted element is isolated.

A2

Supply may be lost in the event of the outage of one major element of the subtransmission
network. Supply cannot be restored until the faulty element is repaired or replaced.

Security of Supply Criteria

Network security of supply is a measure of the resilience of the network to operational
changes such as planned (e.g. maintenance) outages and unforeseen events
(e.g. forced outages, unexpected customer loads). The ability of the network to
accommodate unforeseen events is a factor that can influence reliability of supply,
somewhat akin to a network balance sheet.
In some jurisdictions, such as Great Britain and Hong Kong, meeting minimum
network security of supply requirements is mandated in legislation. In New South
Wales, distributors are required to the meet reliability, quality and security obligations of
Standard Control Services. In NewZealand, the EGRs require the transmission network
to meet stipulated security levels, but there are no legislated minimum requirements for
network security in distribution, apart from the discouragement of excessive security
levels through valuation optimisation.
Powercos security of supply criteria have been set taking into account the EEAs
Security of Supply Guidelines and the report, Interaction between Transmission and
Distribution System Planning from CIGRE/CIRED Working Group CC.01 (Cigr 37.01
Cired 6). As well, the findings of the Customer Communications process (refer Section
4.2) have been taken into consideration in confirming the security levels. Security of
supply requirements for Powercos network are shown in Table 7.1.

118

Substation Classification

Powerco has a range of development plans for different categories of equipment.

These are:

Reticulation Standards;

7.2.

Table 7.1: Zone Substation Security Classification

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Where a group of AAA or AA+ security zone substations supply a population centre of
40,000 or more, supply from more than one GXP is preferred.
Tables 7.2 and 7.3 below set out the criteria and selection process for network security
levels and feeder classification. They are applied subject to economic and technical
feasibility. As part of the development project approval process, the application of
the security criteria is tested to ensure that a project results in an economic network
configuration.

Return to Index

Powercos security criteria are deterministic rather than probabilistic. At the concept
design stage, however, larger projects are required to pass an economic assessment
and a multi-stakeholder assessment. Generally, projects that meet deterministic criteria
will also fulfil probabilistic criteria although this is not always the case and it is possible
that a project that ensures network security criteria are met is deferred in favour of
another security-enhancing project that offers a better economic benefit.

7.3.

Network Capacity Criteria

There are four perspectives for determining capacity in an electricity distribution network:
The normal operational capacity of an asset (usually this is dictated by the
temperature at which the asset is allowed to operate under normal conditions);
The ability of the asset to maintain adequate voltage;
The fault capacity of an asset, either thermal or mechanical; and

Table 7.2: Zone Substation Security Level Selection

The assets economic capacity (i.e. where the marginal cost of increasing the
conductor size equates to the marginal cost of NPV of losses).

Maximum Group Demand

Load Type

< 1MVA

1 5MVA

5 12MVA

>12MVA

F1

AA

AA

AA+

AAA

F2

A1

AA

AA+

AAA

F3

A2

AA

AA

AA

F4

A2

A1

A1

n/a

F5

A2

A2

A1

n/a

Powerco has some zone substations where provision of this security level is not
economically viable. In these cases, particular care is taken to ensure that the critical
components of the supply system are as reliable as possible. Some substation busbars
require AAA security, where the design of the network makes its provision technically
infeasible. These are being progressively upgraded to AA+ security. Some network
architectures, particularly those in Wanganui and Valley, have been based historically
on the premise that transformer failure is rare and that should a transformer need to
be taken out of service in a preplanned manner, switching can be performed on the
distribution network. These network architectures fulfil security levels up to AA class,
but are not necessarily ideal for CBD areas or sensitive industrial loads.
Table 7.3: Distribution Feeder Classifications
Classification

Description

F1

Large Industrial

F2

Commercial / CBD, town population > 10,000

F3

Urban Residential, town population > 5,000

F4

Rural

F5

Remote Rural

7.3.1.

Design Operational Temperatures

Network asset capacity is usually dictated by the operational temperatures set out in
Table 7.4. These capacity targets have changed following revisions to the line design
standard and use of better information. Network capacity is monitored through the
long-term, medium-term and short-term planning process with improvement initiatives
included in the works plan.
Table 7.4: Target Maximum Temperatures for Capacity Constraints
Asset Management Driver: Asset Performance

Asset

Normal Operation - Maximum

Temperatures

Fault Conditions
Maximum
Temperatures

XLPE cable conductor

90oC

250oC

PILC cable conductor

70 C

160oC

HDCu Overhead Line

50oC (70oC in some cases)

200oC

AAAC/1120 Overhead Line; AAC Overhead

Line; PVC Covered Overhead Line

50oC (70oC in some cases)

160oC

ACSR Overhead Line

50oC (70oC in some cases)

150oC

Galv Steel Overhead Lines

50oC (70oC in some cases)

400oC

Transformer Hot Spot (Emergency)

115 C

Security levels for large customers are agreed upon by negotiation. For example,
Kinleith Paper Mill requires a high supply reliability level and this is, to some extent,
reflected in the levels of security provided at the site. In such cases the security criteria
are tested to ensure they result in an economic network configuration.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

119

7.3.2.

Capacities for Planning Purposes

7.3.3.

These yield the following capacities for overhead lines and underground cables.

The following design concepts have become common within Powerco for dimensioning
the subtransmission, zone substation and distribution network assets.

Table 7.5: Cable and Line Conductor Capacities for Planning Purposes
Cable / Conductor

Summer Day

Summer Night

Winter Day

Planning Design Concepts

Inner City and Suburban areas

Winter Night

185mm AL, 3c, XLPE 11kV

230A
(4.4MVA)

Subtransmission

630 mm AL 1c 33kV cable, two circuits laid side by side with fibre optic
pilots

300mm AL, 3c, XLPE 11kV

305A
(5.8MVA)

Zone Substation

Twin 16/24MVA transformers with oil containment, 8 to 12 feeder

switchboard with bus section

300mm AL, 1c, XLPE 33kV

310A
(17.7MVA)

Distribution Feeders

300 or 185 mm AL 3c 11kV cable

630mm AL, 1c, XLPE 33kV

450A
(25.7MVA)

Intensive Rural or Small town areas

Wasp

298A

360A

372A

411A

Weke

326A

395A

408A

451A

Cockroach

518A

643A

658A

733A

Butterfly

581A

726A

742A

828A

Dingo

383A

468A

482A

534A

Jaguar

454A

560A

575A

639A

Notes: Nominal cable ratings based on 20 deg C soil temperature, 1.0 metre burial depth, soil resistivity
2.0Km/W, two circuits in parallel laid 450mm apart.
Solar Gain = 780W/sqm (summer) or 400W/sqm (winter); ambient temperature = 24 deg C summer day;
19 deg C summer evening; 14 deg C winter day; 9 deg C winter evening.
Detailed study of base parameters may yield higher (or lower) capacities.

For planning purposes, the nameplate rating can be used for a quick guide, however
cyclic and emergency ratings are relied upon depending on the condition of the
transformer in accordance with IEC354. Capacities of electrical equipment such as
switchgear are assigned in accordance with manufacturers recommendations.

7.3.4.

Subtransmission

Cockroach or Neon conductor 33kV or 66kV overhead lines

Zone Substation

Single or Twin 12/17 MVA or 10/12 MVA transformers with oil

containment, 6 to 9 feeder switchboard with bus section circuit breaker

Distribution Feeders

Weke or Iodine conductor 11kV or 22kV overhead line

General Principles Related to Feeders

The load per 11kV distribution feeder averages 3MVA but can reach 4MVA. Working
on the two thirds principle of design, new feeder trunks are generally rated between
4 and 6MVA maximum load. Lower loadings are used in rural areas where lower load
densities and capacities are expected to apply in the long term. Some 22kV and 6.6kV
feeders are used in lower load density areas, where they do not normally carry loads of
this magnitude. Generally, when the number of consumers on a feeder reaches 1200 to
1500, efforts will be made to split the feeder, either by shifting open points or by adding
a new feeder.
The ability of a feeder to meet reliability performance targets, if properly maintained, is
the primary objective. Factors that affect reliability are fault probability and typical repair
or restoration time. As the reliability of equipment is governed by condition and thus
influenced by maintenance, appropriate standards of maintenance have been set. An
ongoing process (network performance engineering) to identify the worst performing
feeders and carry out improvements on them is described in Section 8.
Fault locators, line reclosers and sectionalisers are being progressively installed in
appropriate positions on the network, to reduce the extent and duration of outages.
Powerco has a policy of improving the utilisation of distribution transformers in the
long-term by removing transformers from under-utilised sites and placing them in
locations where the required capacity better matches the transformer rating, provided

120

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Elsewhere, 11kV will remain the primary distribution voltage, with existing 6.6kV
updated only where performance or economic advantages require it. Individual areas
of the network may be constructed at or uprated to 22kV if there is a performance or
economic advantage.

it is cost-effective to do so. In general, an under-utilised transformer is noted, and is

moved when a more appropriate site is identified. Utilisation is poor where oversized
transformers are installed for electric motors powering irrigation and frost protection
schemes, and in remote rural locations where diversity is low and the difference
between peak load and ADMD is large.
7.3.8.
7.3.5.

Underground versus Overhead Construction

Powerco conducted a major review of the ratings of its zone substation transformers
using the methodology of IEC354, and a set of rating tables has been produced
covering all zone substations at ambient temperatures from 0OC to 30OC. The 20OC
ratings are used throughout this section.

Powercos policy on overhead versus. underground construction is as follows:

Overhead lines in urban areas will be replaced with overhead lines at the end of their
economic life, unless funding for the uneconomic portion of underground conversion
can be obtained from an outside source;
New urban circuits will be constructed underground in accordance with the district
plan; and,

7.4.

Planning Considerations

7.4.1.

Long-Term Planning (Subtransmission)

New rural circuits will be constructed overhead unless there is a specific consumer
request for underground, such as a rural lifestyle block subdivision. In this case, the
design must be in line with Powerco standards, and the full additional cost must be
met by the consumer.

The long-term development plan deals with the subtransmission network and zone
substations. Key issues taken into account in subtransmission network planning are:
Forecast growth rate for electrical load at existing zone substations;
The horizon year load densities within the supply area related to zone substation
utilisation;

Powercos main underground programme is an arrangement with the Palmerston North

City Council for underground conversion prescribed areas. This programme is almost
complete and prioritises the undergrounding of older lines. Projects in other areas will
be considered as they are requested.
7.3.6.

Development of the subtransmission system, with particular reference to the total

number and size of zone substations foreseen in the horizon year;
The need for effective utilisation of capital investment on the network;

Voltage Fluctuation Criteria

The need to meet objectives for supply reliability, quality and safety;

Particularly in rural areas, the limiting feature of the network is voltage variation rather
than conductor capacity. Voltage fluctuations on the subtransmission network should
be limited to the capabilities of tap changers. At the distribution level, voltage variation
is limited to the statutory allowable voltage variations to end use consumers. Power
factor correction (shunt capacitors) and voltage regulators can be used to reduce the
fluctuations of voltage. The following are planning guidelines on allowable voltages.

Reinforcement strategy beyond the horizon year; and

Network

Subtransmission

7.3.7.

Transformer Ratings

Allowable voltage fluctuation

+5%, -10%

Distribution

+5%, -5%

Low Voltage

+6%, -6%

Voltage Selection

Both 66kV and 33kV will continue to be used as appropriate for the subtransmission
network, reinforced or extended as required. For some areas of the Coromandel
Peninsula and the Bay of Plenty, 110kV is being considered as a possible option.

Return to Index

Replacement of aged assets to maintain the average age of the network assets.
Long-term distribution planning is carried out annually, within the framework of 15-year
rolling cycles.
7.4.2.

Medium-Term Planning (Distribution)

The key planning criteria that guide the development of the distribution network include:
Area forecast load growth;
Asset utilisation;
Reliability performance;
Quality of supply performance;
Industrial, commercial and residential developments affecting specific areas of
supply;
Demand-side management (DSM) initiatives;

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

121

Infill customers have the potential to disrupt existing low-voltage networks because
the network characteristics end up having to change significantly. This is a particularly
expensive problem in places like Mount Maunganui, where original reticulation was
designed for quarter-acre sections, but now there can be eight units per quarter-acre
section, fed by a new reticulation system of much larger size.

The results of Powercos price/quality consultation and focus group consultations;

Legislation allowing non-economic supplies to be discontinued after 2013;
Service criteria met; and
Distribution standards review.
Medium-term distribution planning is carried out annually, within the framework of fiveyear rolling cycles. This shorter time frame matches the lead time required for budgeting
and implementing capital works at distribution level.
7.4.3.

Kinleith Paper Mill

Development planning of the electrical distribution assets at Kinleith is dependent on

and coupled with the plans for developing the plant. These, in turn, are coupled to
the forestry industry, world pulp and paper markets and the value of the NewZealand
dollar. Regular meetings are held with mill management to discuss long-term plans.
7.4.4.

Planning Criteria Low-Voltage Reticulation Planning

Key low-voltage system planning issues are as follows:

Upgrading existing supplies to existing customers;
Selection of an appropriate ADMD;
Connecting new customers, particularly infill housing customers;
Loading of distribution substations;
Legislation on non-economic supplies after 2013;
Voltage and other quality-of-supply complaints and suggestions; and
Adherence to, and economics of, standard reticulation designs.
Low-voltage planning is undertaken in line with standard reticulation designs and After
Diversity Maximum Demand (ADMD) criteria. Typically this is combined with capital
works planning at all levels.
The economics of low-voltage system coverage, conductor sizes and distribution
substation size for different load densities are reviewed periodically to accommodate
changes in unit costs and new construction techniques. The cost efficiency of standard
implementation associated with LV networks is being assessed on an ongoing basis.
Increases in the ADMD per consumer are being considered, particularly as appliances
such as air conditioning become more popular. Determining an accurate ADMD for
new industrial subdivision consumers is always difficult, although a figure of 25kVA per
customer is the minimum.

122

Holiday accommodation often adds to the LV and MV distribution system during short
periods of the year when some parts of the network become heavily loaded. The
difficulty with this form of load is the low associated revenue, coupled with the heavy
impact it can have on network performance.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

7.5.

Load Forecasting

7.5.1.

Introduction

This section provides and describes the load forecasts. Load forecasting for the
purposes of the Asset Management process is based on growth in peak-time demands.
Peak requirements need to be understood to determine the required capacity of a lines
infrastructure that will support local load growth. The volume forecasts are also reviewed.
The most significant influences on demand growth continue to result from changes
in population/household composition and the growth/relocation of industry. Internal
migration patterns thus have a strong influence on the observed demand growth.
Government initiatives to promote energy efficiency and the preference for renewable
sources of energy have been considered in preparing the forecast growth.
Development of known industry changes such as oil and gas exploration and
development; and primary sector changes and infrastructure such as ports account
for step changes seen in the forecast below. The establishment of major new industry
can have a considerable impact within a short time frame in the level of demand
experienced in any given locality. The possibility of new spot loads is monitored through
key account managers, Resource Management Act notifications and consumer
consultation. The forecast figures for growth given below lean somewhat to the high
side, reflecting a conservative approach. Programmed work can be deferred if demand
increases at a slower rate than forecast and brought forward if demand accelerates. It
is usually better to defer work.
It should be acknowledged that load forecasting is not an exact science and is only as
good as the snapshot of the best information available at the time of consolidating the
data. Powerco has made every effort to take account of each of the variables described
in the processes below in Section 7.5.5 and 7.5.8, however these projections can be
altered at any time as new information becomes available.

Return to Index

7.5.2.

There are two types of micro heat and power technologies, fuel cells and engine-based
units. However, the high price of both of these technologies is a significant barrier to
their uptake for the foreseeable future, and units with a high heat-to-electricity ratio do
not appear to be particularly suited to the NewZealand consumer.

Regional Influences

Positive population growth of significant magnitude is being experienced in parts of

the Eastern Region, although there are differences in the form that this growth takes.
In Powercos Tauranga subregion (the Western Bay of Plenty), growth continues to be
driven by high levels of inward migration. Should sustainable employment opportunities
become available, this could be expected to add impetus to the growth already being
experienced. In contrast, on the east coast of the Coromandel the most significant
influence on growth in demand derives from a temporary but major increase in shortterm residents during holiday periods. Population growth in the more southern part of
the Eastern Region is relatively low although changes in the pattern of rural land use
and allied growth in industry are expected to become important drivers.

Our view, in conclusion, is that micro-generation is not likely to affect the consumption
of grid-supplied electricity for the next 20 years.
The forecast assumes that domestic fuel switching, like the increasing penetration of
solar water heating will be compensated by a similar increase in electric heat pump
space heating.
Larger embedded or distributed generation schemes have not been included in the
volume forecast because as long as there is separate metering of these generators,
the volumes conveyed on the network are inclusive of any embedded or distributed
generation. Implementation of RAPs schemes is at present, on too small a scale
to noticeably affect the forecast: any uncertainty on this will be catered for through
the prudent forecast. The zone substation demand forecast will accommodate any
distributed or embedded generation schemes as they arise.

Population growth in most of Powercos Western Region is expected to continue along

a relatively modest growth path. The main provincial urban areas, notably Palmerston
North and to a lesser extent, New Plymouth, are experiencing large growth. There is
also increased interest in coastal residential development throughout the region. Again,
changes in rural land use are having an impact in some parts.
7.5.3.

Changing Consumer Technologies and Demand

Historically, national electricity demand has grown at an average rate of 2.7% annually.
This growth is the result of both increases in the number of total consumers and
consumption per consumer. Growth in demand within Powercos network has tended
to mirror the national trends.
The uptake of increasingly power-hungry electronics means that the average amount
of electricity per person is increasing and, by 2020, home entertainment systems are
expected to account for around 45% of total household consumption.
At the same time, changing technology has the power to transform the electricity
distribution sector. This could involve fuel-switching the use of alternative sources of
fuel for water and space heating; adoption of electric cars these could use household
electricity supply to recharge and potentially sell unused electricity back to the grid; and
micro-generation the generation of zero- to low-carbon heat and power by individual
consumers, small businesses and communities to meet their own needs.
Solar Photovoltaic (PV) Cells have an expanding market worldwide with several
multinational corporations involved in their development and manufacture, but they
are hampered by high costs and are not projected to be able to compete with gridsupplied electricity for another 20 years unless there is a breakthrough in technology or
generous government subsidies.

7.5.4.

Impact of Demand Side Management Initiatives

The impact of energy savings campaigns such as calls for dry year energy restraint
can have the impact of reducing energy consumption and volumes transported. The
impacts of these campaigns can reduce the volumes by around 5%. Lines companies
find the dry year savings campaigns cannot be accurately predicted. They are not built
into the volume forecast and are therefore a risk to the forecast.
The installation of smart meters by some retailers has the potential to affect peak
demands. On the one hand, new meters may mean more accurate meter readings which
could reduce the overall demands. In our experience there has not yet been a noticeable
move by most customers to control their time of use because they have a smart meter.
On the other hand, the smart meter roll out is having a beneficial impact on the numbers
of working ripple receive relays, leading to greater ability to control of thermal storage load
(or, the duty on a dwindling number of operational receivers is improving).
Another demand side management initiative is the proposal to audit the customer
power factor at various places on the network. This is driven by the Electricity
Commissions requirement that power factor should be above 0.95 at the GXP at peak
load times.

Micro Wind Generation is a mature technology with a growing international market. It has
a potential break-even point with grid-supplied electricity in the next seven to 12 years.
However, siting issues will mean that uptake will likely to be concentrated in rural areas.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

123

Powercos volume forecast methodology has three inputs. A statistical regression is

based on the historical (and remainder of year forecast if done in the middle of a year)
Gross Domestic Product (GDP) and population, regressed against actual volume
consumption. This analysis produces a set of betas and intercepts for forecasting
volumes. Error measures are as used as part of the least squares regression.

Weighting factor for GDP figure

Weighting factor for Population figure

Random error

Volume Elasticity with GDP and Population

The drivers of growth in electricity usage and demand include economic growth,
population and household growth. GDP growth is a significant driver of demand for
commercial and industrial consumption. Although important, GDP is less of a driver
for domestic electricity demand. The figure below shows the correlation between GDP
and electricity usage. As noted, this correlation is very strong, particularly for industrial
consumers.

2006

2002

1998

1994

1990

1986

1982

1974

Source: Electricity Commission

Figure 7.1: GDP and Electricity Volume

Population and household growth is a significant driver of customer connection growth.

Consequently, population growth and the number of people per household are the
most significant factors in determining residential consumption and demand growth
(refer to the figure below).
National household and domestic volume
14,000

1,800
1,600

12,000

CAGR: 1.58%

1,400

10,000

1,200
1,000

8,000

CAGR: 1.57%

800

6,000

600

4,000

400

s #LOSECORRELATIONCOEFFICIENT

200

s ,ONGTERMTRENDSETBYGROWTHINHOUSEHOLDS

Domestic volume (GWh)

Volume

2,000

Households

2006

Households

GDP

2002

GDP

X2

1998

X1

10,000
5,000

1994

Previous years demand

15,000

1990

Demand to be calculated

X0

40,000

1986

7.5.6.

Electricity volume displayed

resilience and was affected little by
the weak economic conditions in
the late 1980s and early 1990s

1982

Where:

20,000
60,000

1974

Y = X0 + (X1 * 1) + (x2 * 2) +

25,000

80,000

20,000

Number of Households (000s)

In algebraic terms, Powercos volume forecast model is:

30,000

100,000

Consumption (GWh)

35,000

1978

Volume Load Forecasting Process

40,000

120,000

1978

7.5.5.

Relationship between GDP and electricity volume

140,000

Real GDP $95/96

Overall Powercos load factor is good. Much of this is due to the effective control of
GXP peak demands through the load control system. While the forecast assumes a
constant load factor, improvement in the numbers of operational receive relays may
enable load factor improvements. Any improvements gained will increase the likelihood
that the actual demands are below the prudent forecast, leading to the potential to
defer some investments. Conversely, changes in appliances (eg heat pumps) may
reduce the load factor. Changes in load factor will be monitored each year as part of
the forecasting process.

Domestic Volume

Figure 7.2: Household Numbers and Electricity Volume

124

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

3500
3700

2003

2004

2005

2006

2007

2008

2009

2010

2003
Historical2004
Volumes 2005

200610 AMP
2007
2008
April
Forecast

2009

2010

Real GDP ($b)

Historical Volumes

April 10 AMP Forecast

3500

2011

2012

115
110

Year ending June 110

2011
2012
Year ending June

Real GDP ($b)

4700
4900
4500
4700

4100
4300
3900
4100

3500
3700

2006

2007

2008

90 day bank bill rates (%)

Historical Volumes

Volume Growth Rate (June) (%)

April 10 AMP Forecast

135

90 day bank bill rates (%)

Volume Growth Rate (June) (%)

120

4900 Energy Conveyed vs Agricultural Output

3700

115

4700
4900

110

4500
4700

2005

Historical Volumes

2006

2007

2008

2009

2010

2011

2012

GWh GWh

3900

2004

Year ending June

April 10 AMP Forecast

Real GDP ($b)

2009

2010

10%

4900

9%

4700

8%

4500

7%

2012

0%

Year ending June

24
24
22
22
20
20
18
18
16

4100
4300
3900
4100

16
14

3700
3900

14
12
12
10
2003

2004

2005

2006

2007

2008

2009

2010

200610 AMP
2007
2008
April
Forecast

2009

2010

3500

Energy Conveyed vs Interest Rates

2011

Year ending June

2011
2012

4300
4500

3500
3700

2003
Historical2004
Volumes 2005

Agricultural Gross Output ($b)

Historical Volumes
April 10 AMP Forecast

2011

2012

Year ending June

2011
2012

10

Year ending June

Agricultural Gross Output ($b)

Figure 7.3: Powerco Electricity Volumes against Econometric Data

6%

4300

5%

4100

4%

3900

3%
2%

3700

1%

3500
2003

2004

2005

Historical Volumes

Return to Index

2010

9%
10%
8%
9%
7%
8%
6%
7%
5%
6%
4%
5%
3%
4%
2%
3%
1%
2%
0%
1%

Energy Conveyed vs Agricultural Output

125

2003

2009

140

4100

3500

GWh

2005

200610 AMP
2007
2008
April
Forecast

130

4300

2004

2003
Historical2004
Volumes 2005

$ billion

4500

2003

3500

145

4700

GWh

4300
4500

3700
3900

Energy Conveyed vs GDP

4900

10%

4900 Energy Conveyed vs Interest Rates

$ billion
$ billion

The econometric forecasts are NZIER forecasts. These predict GDP growth rates to
remain low during FY10 followed by a pick up in FY11.

Energy Conveyed vs Interest Rates

GWh GWh

The graphs below show Powercos regional GDP growths and forecasts. The areas
covered by Powercos footprint, has experienced strong GDP growth. Energy volumes
from monthly reported figures have been used to produce the graphs shown below.
GDP (sourced from NZIER) is closely correlated with energy volumes (particularly
during periods of high growth) and this can be seen in the graphs. Also graphed are
the energy volumes against interest rates and because Powerco has a large rural base,
agricultural output.

90 day bank bill rates (%)

2006

2007

2008

2009

April 10 AMP Forecast

Volume Growth Rate (June) (%)

2010

2011

2012

0%

Year ending June

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

125

Growth in new customer connections (measured using registry data and looking at
ICPs that retailers have switched from ready to active status (which effectively looks
through various historical retailer data issues) has trended at between 5,000 and 4,000
(in round numbers) in recent years. This is illustrated in the following chart.

Western Region Forecast Population Growth

2007

ICP Creation Trend

6000

CAGR
(07-16)

107,290

110,170

112,350

0.7%

Manawatu

198,300

206,200

213,400

1.0%

0.8%

Wairarapa

39,540

40,750

41,740

0.8%

0.6%

345,130

357,120

367,490

0.9%

0.7%

NZ

West

East

28.0%

10.2%

34.1%

Source: NZIER
4000
3000

Projected increase in number of households 2001-2021(%)

Source: Statistics NZ

2000

7.5.7.

1000
0
2005

2006

2007

2008

2009
Year Ending 31 March

Figure 7.4: New ICP Additions

Electricity Volume Forecast

The historical and forecast drivers of growth have driven substantial growth in
Powercos volume and connection numbers during the past decade. Based on the
drivers of electricity usage and their associated forecasts, this growth is projected to
continue. The medium-term, top-down growth forecasts are shown in Figure 7.5 and
Table 7.7 below.

Powercos footprint has experienced significant population and household growth as

shown in Table 7.6.

Actual & Forecast Eastern Volumes vs Waikato/ Bay of Plenty Real GDP
2600

Table 7.6: Forecast Population Growths

26

2400

98,550

2011

101,750

2016

103,950

CAGR
(07-11)

0.8%

CAGR
(07-16)

0.6%

2200

Tauranga

152,700

167,300

184,100

2.3%

2.1%

2100

Total Eastern

251,250

269,050

288,050

1.7%

1.5%

2000

Source: NZIER

25

2300
GWh

2007

Thames Valley

27
Real GDP

2500

Eastern Region Forecast Population Growth

24
CAGR 2.6%

23
22

1900
1800

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

21

Historical Volumes
April 10 AMP Forecast
Taranaki/ Manawatu Wanganui GDP

126

0.5%

$ billion

No. ICPs Created

CAGR
(07-11)

2016

Taranaki

Total Western

5000

2011

Financial Year

Return to Index

2500

14.5

2400

14.0
13.5
CAGR 1.1%

Historical Volumes
April 10 AMP Forecast
Taranaki/ Manawatu Wanganui GDP

Financial Year

Figure 7.5: Powerco Electricity Volume Forecast

Table 7.7 Forecast growth in electricity volumes (2010 -2015)
kWh Growth forecast (Electricity Only)
Assumption

7.5.8.

2010

2011

2012

2013

2014

or zone substation because it offsets the underlying demand leaving a smaller

denominator for the growth percentage to be calculated from.
Changes in rural land use are having a marked effect in some areas, notably including
the increase in electricity demand required to power irrigation pumps. Attention has
been directed towards developing a better understanding of such influences and
to taking appropriate cognisance of them in the forecast. The assumed outlook for
local growth in both agriculture and associated process industries acknowledges
observed trends and relevant commentaries, including aspects noted in discussion with
economic development agencies.
Close attention to the land use policies and (intended) zoning provisions adopted by
territorial planning authorities allows closer definition of where growth in population and/
or industry is likely to occur. It thus provides for better definition of the zone substation
locations where increased demand is likely to be experienced. In relatively low-growth
districts where the location of future subdivisions and industrial parks has not been so
closely defined, attention has nonetheless been given to geographical constraints on
future development.

2014

2013

2012

2009

2008

2011

12.0
2010

2000
2007

12.5

2006

2100

2005

13.0

2004

2200

2003

GWh

2300

$ billion

Actual & Forecast Western Volumes vs Taranaki/ Manawatu Wanganui Real GDP

2015

Eastern Region (Model)

1.25

1.75

2.25

2.50

2.50

2.50

Western Region (Model)

1.25

1.25

1.25

1.25

1.25

1.25

Eastern Region (medium

recession scenario)

1.5

1.5

2.5

2.5

2.5

2.5

Western Region (medium

recession scenario)

0.67

0.67

1.0

1.0

1.0

1.0

Zone Substation Load Forecasting Process

The process used by Powerco for peak demand forecasting is similar to the process for
forecasting energy volumes except that the starting point is MW demands rather than
GWh energy volumes and the GDP and population factors are broken down into a local
level. The model assumes that load factors and summer and winter peaks are static:
analysis on load factors and summer / winter peaks shows that over the last eight or so
years, this has been the case. The chart below shows the process for zone substation
demand forecasting diagrammatically:

The forecast is generally expressed in absolute peak demand and 98th percentile
maximum demands. Which peak demand to use depends on the purpose it is used
for. The 98th percentile maximum demand is the normal peak demand used for system
growth planning as it eliminates most load transfers between substations. The absolute
peak demand is used if load transfers need to be taken into account.
STEP1

Obtain historical
zone substation
demands
from zone
substation half
hourly metering
data. If not
available, obtain
Maximum
Demand
Indicator
(MDI) and/or
LT40 readings
from zone
substation.

STEP 2

STEP 3

Allocate GDP and

Undertake a
population forecasts
two element
(from the Dept of
regression for
Statistics) by each
each zone
network zone (zone
substation
substation area).
using local
Because the statistical
GDP and local
data was by TLA
population
area, the network
forecasts as
zones areas do not
inputs and the
match, so a best fit
recent actual
interpolation was
maximum
applied, judged by
demand as the
reviewing maps and
starting point.
local information.

STEP 4

Adjust the forecast where

necessary to cater for
known step load charges
due to large consumers
(both increases and
decreases in load), known
local subdivision activity and
known local land use/zoning
changes. For prudent
forecast adjustments should
err toward the high side.
Convert MW to MVA
Use the forecast for
system growth planning.

Presently embedded generation is having a very limited impact on the demand

forecasts. Where it is installed, it is taken into account in the forecasts. Often,
embedded generation has the impact of increasing the forecast growth at a GXP

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

127

Forecast Demand at Zone Substations

Tables 7.8 to 7.13 provide a forecast of the peak demand (in MVA) at the various zone
substations within each of Powercos subregions. Growth figures are for the area
currently supplied from each substation location. Where it will become impractical to
increase the capacity of existing substations to accommodate long-term load growth
options, such as load transfers, network reinforcement or non-network solutions will
be investigated. In some cases this will include the installation of new substations at
strategic locations.
Other points to be noted include:
The figures presented in the following tables are for peak demand values and growth
figures before the impact of the recession.
Provision is made for the effect that changes in the mix of domestic and business
consumers may have on the demand peak.
The maximum half-hourly average figure is the highest half-hourly peak. It may have
occurred temporarily when load was being transferred, for example. However, as
such transfers may be repeated, items of equipment with little or no cyclic capability,
such as switchgear and cable, need to be sized to accommodate such loads.
The 98th percentile half-hourly average is the load level used for determining
transformer ratings and load transfer capability, for instance.
Provision for something on the minimum load growth level.
7.5.10. Impact of Uncertainties in the Forecasts

Zone Substation Maximum Demand Growth

5.0%
4.0%
Percentage Growth

7.5.9.

3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%

2005

2006

2007

2008

2009

2010 F

2011 F

Powerco

Powerco Prudent

Powerco Probable

Eastern
Western

Eastern Prudent
Western Prudent

Eastern Probable
Western Probable

2012 F

2013 F

2013 F

2015 F

Year

Figure 7.6: Powerco Aggregate Maximum Demand Growth

7.5.11. The Forecast

Forecast peak power demands for each zone substation in the Powerco network follow
in Table 7.8 to Table 7.13 on the following pages.

Powerco runs two forecasting philosophies - probable and prudent. The probable is
the base forecast and the prudent forecast is a somewhat higher forecast that allows
for upside risk in the growth project. Generally the probable forecast is used for volume
forecasting and the prudent forecast is used for planning the capacity and security
levels in the network.
Because the load demand forecast is one of the main drivers of development capital
expenditure in order to provide adequate network capacity and security, a prudent
forecast is used. The prudent forecast allows for the natural variations in demand that
occur due to variations in the diversity of load and allows some wriggle room should
actual demand growth exceed the forecasts.
Graphed below is the aggregate of the historical actual and forecast zone substation
98% demands. This portrays the growth in network maximum demand showing the
difference between the prudent and probable forecasts.

128

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.8: Forecast Maximum Demand for Manawatu Zone Substations

Load Forecast in MW

5yrs Forecast Growth

Substation

Beyond 5yrs Forecast

Peak Type

Alfredton
Alfredton
Feilding
Feilding
Feilding East
Feilding East
Feilding West
Feilding West
Fitzherbert
Fitzherbert
Kairanga
Kairanga
Keith St
Keith St
Kelvin Grove
Kelvin Grove
Kimbolton
Kimbolton
Main St
Main St
Mangamutu
Mangamutu
Milson
Milson
Parkville
Parkville
Pascal St
Pascal St
Pongaroa
Pongaroa
Sanson
Sanson
Tararua Wind Farm
Tararua Wind Farm
Turitea
Turitea

0.5%
0.5%
1.9%
1.9%
0.0%
0.0%
0.0%
0.0%
2.0%
2.0%
1.6%
1.6%
1.5%
1.5%
2.3%
2.3%
2.0%
2.0%
3.0%
3.0%
1.0%
1.0%
2.0%
2.0%
0.5%
0.5%
2.0%
2.0%
0.5%
0.5%
4.0%
4.0%
0.0%
0.0%
3.8%
3.8%

98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max
98%
Max

Return to Index

2009

0.6
0.6
16.6
19.4
14.8
43.1
12.3
25.3
0.0
0.0
14.1
15.7
12.5
15.2
12.5
15.5
2.0
2.6
22.6
28.2
7.6
8.3
13.7
16.1
1.6
1.9
19.5
22.9
0.6
0.8
6.3
7.4
67.3
69.2
13.2
14.8

2010

0.6
0.6
16.9
19.8
14.8
43.1
12.3
25.3
0.0
0.0
14.3
16.0
12.7
15.4
12.8
15.8
2.1
2.6
23.3
29.1
7.7
8.4
14.0
16.4
1.6
1.9
19.9
23.4
0.6
0.8
6.5
7.7
67.3
69.2
13.7
15.4

2011

0.6
0.6
17.2
20.2
14.8
43.1
12.3
25.3
0.0
0.0
14.6
16.3
12.9
15.6
13.1
16.2
2.1
2.7
24.0
30.0
7.8
8.5
14.3
16.7
1.6
1.9
20.3
23.8
0.6
0.8
6.8
8.0
67.3
69.2
14.2
16.0

2012

0.6
0.6
17.5
20.5
14.8
43.1
12.3
25.3
0.0
0.0
14.8
16.5
13.1
15.9
13.4
16.6
2.2
2.7
18.7
24.9
7.9
8.6
14.6
17.1
1.6
1.9
16.8
20.4
0.6
0.8
7.1
8.3
67.3
69.2
11.7
13.6

2013

0.6
0.6
17.9
20.9
14.8
43.1
12.3
25.3
0.0
0.0
15.0
16.8
13.2
16.1
13.7
16.9
2.2
2.8
19.2
25.6
8.0
8.7
14.8
17.4
1.6
1.9
17.2
20.8
0.6
0.8
7.3
8.7
67.3
69.2
12.2
14.1

2014

0.6
0.6
18.2
21.3
14.8
43.1
12.3
25.3
0.0
0.0
15.3
17.0
13.4
16.3
14.0
17.3
2.3
2.8
19.8
26.4
8.0
8.8
15.1
17.8
1.6
2.0
17.5
21.2
0.6
0.8
7.6
9.0
67.3
69.2
12.6
14.6

2015

0.6
0.6
18.5
21.7
14.8
43.1
12.3
25.3
0.0
0.0
15.5
17.3
13.6
16.6
14.4
17.7
2.3
2.9
20.4
27.2
8.1
8.8
15.4
18.1
1.6
2.0
17.9
21.7
0.6
0.8
7.9
9.4
67.3
69.2
13.1
15.2

2016

0.6
0.6
18.9
22.1
14.8
43.1
12.3
25.3
0.0
0.0
15.8
17.6
13.9
16.8
14.7
18.1
2.4
2.9
21.0
28.0
8.2
8.9
15.8
18.5
1.7
2.0
18.2
22.1
0.6
0.8
8.3
9.7
67.3
69.2
13.6
15.7

2017

0.6
0.6
19.2
22.6
14.8
43.1
12.3
25.3
0.0
0.0
16.0
17.9
14.1
17.1
15.0
18.6
2.4
3.0
21.6
28.8
8.3
9.0
16.1
18.9
1.7
2.0
18.6
22.5
0.6
0.8
8.6
10.1
67.3
69.2
14.1
16.3

2018

0.6
0.6
19.6
23.0
14.8
43.1
12.3
25.3
0.0
0.0
16.3
18.2
14.3
17.3
15.4
19.0
2.4
3.1
22.3
29.7
8.4
9.1
16.4
19.2
1.7
2.0
18.9
23.0
0.6
0.8
8.9
10.5
67.3
69.2
14.7
17.0

2019

0.6
0.6
20.0
23.4
14.8
43.1
12.3
25.3
0.0
0.0
16.5
18.5
14.5
17.6
15.7
19.4
2.5
3.1
23.0
30.6
8.4
9.2
16.7
19.6
1.7
2.0
19.3
23.4
0.6
0.9
9.3
11.0
67.3
69.2
15.2
17.6

2020

0.6
0.6
20.4
23.9
14.8
43.1
12.3
25.3
0.0
0.0
16.8
18.8
14.7
17.9
16.1
19.9
2.5
3.2
23.7
31.5
8.5
9.3
17.1
20.0
1.7
2.0
19.7
23.9
0.6
0.9
9.7
11.4
67.3
69.2
15.8
18.3

2021

0.6
0.6
20.8
24.3
14.8
43.1
12.3
25.3
0.0
0.0
17.1
19.1
14.9
18.1
16.5
20.3
2.6
3.2
24.4
32.4
8.6
9.4
17.4
20.4
1.7
2.0
20.1
24.4
0.6
0.9
10.1
11.8
67.3
69.2
16.4
19.0

2022

0.6
0.6
21.1
24.8
14.8
43.1
12.3
25.3
0.0
0.0
17.3
19.4
15.1
18.4
16.8
20.8
2.7
3.3
25.1
33.4
8.7
9.5
17.7
20.8
1.7
2.0
20.5
24.9
0.6
0.9
10.5
12.3
67.3
69.2
17.0
19.7

2023

0.6
0.6
21.5
25.3
14.8
43.1
12.3
25.3
0.0
0.0
17.6
19.7
15.4
18.7
17.2
21.3
2.7
3.4
25.8
34.4
8.8
9.6
18.1
21.2
1.7
2.0
20.9
25.4
0.6
0.9
10.9
12.8
67.3
69.2
17.7
20.4

2024

0.6
0.6
22.0
25.7
14.8
43.1
12.3
25.3
0.0
0.0
17.9
20.0
15.6
19.0
17.6
21.8
2.8
3.4
26.6
35.4
8.9
9.7
18.5
21.7
1.7
2.1
21.3
25.9
0.6
0.9
11.3
13.3
67.3
69.2
18.3
21.2

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

129

Table 7.9: Forecast Maximum Demand for Taranaki Zone Substations

Load Forecast in MW
5yrs Forecast Growth

130

Substation

Beyond 5yrs Forecast

Peak Type

Bell Block

2.3%

98%

2009

16.1

2010

16.4

2011

13.3

2012

13.6

2013

13.9

2014

14.2

2015

14.6

2016

14.9

2017

15.3

2018

15.6

2019

16.0

2020

16.3

2021

16.7

2022

17.1

2023

17.5

2024

17.9

Bell Block

2.3%

Max

18.3

18.7

15.6

16.0

16.4

16.7

17.1

17.5

17.9

18.3

18.8

19.2

19.6

20.1

20.5

21.0

Brooklands

1.8%

98%

16.2

16.5

13.1

13.3

13.5

13.8

14.0

14.3

14.5

14.8

15.1

15.3

15.6

15.9

16.2

16.5

Brooklands

1.8%

Max

21.8

22.2

18.9

19.3

19.6

19.9

20.3

20.7

21.0

21.4

21.8

22.2

22.6

23.0

23.4

23.8

Cambria

1.5%

98%

12.5

12.7

12.9

13.0

13.2

13.4

13.6

13.9

14.1

14.3

14.5

14.7

14.9

15.1

15.4

15.6
19.8

Cambria

1.5%

Max

15.8

16.1

16.3

16.5

16.8

17.0

17.3

17.6

17.8

18.1

18.4

18.6

18.9

19.2

19.5

Cardiff

0.5%

98%

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.3

1.3

1.3

1.3

Cardiff

0.5%

Max

1.3

1.3

1.3

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

City

1.9%

98%

17.6

17.9

17.5

17.8

18.2

18.5

18.9

19.2

19.6

20.0

20.3

20.7

21.1

21.5

21.9

22.3

City

1.9%

Max

21.2

21.6

21.2

21.6

22.0

22.4

22.9

23.3

23.8

24.2

24.7

25.1

25.6

26.1

26.6

27.1

Cloton Rd

1.5%

98%

7.2

7.3

7.4

7.5

7.6

7.8

7.9

8.0

8.1

8.2

8.4

8.5

8.6

8.7

8.9

9.0
11.1

Cloton Rd

1.5%

Max

8.9

9.0

9.1

9.3

9.4

9.6

9.7

9.9

10.0

10.2

10.3

10.5

10.6

10.8

10.9

Douglas

1.0%

98%

1.3

1.3

1.3

1.3

1.3

1.3

1.3

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.5

1.5

Douglas

1.0%

Max

1.8

1.8

1.8

1.8

1.8

1.8

1.9

1.9

1.9

1.9

1.9

2.0

2.0

2.0

2.0

2.0

Eltham

1.5%

98%

9.0

9.1

9.2

9.4

9.5

9.7

9.8

10.0

10.1

10.3

10.4

10.6

10.7

10.9

11.0

11.2

Eltham

1.5%

Max

9.9

10.0

10.2

10.4

10.5

10.7

10.8

11.0

11.2

11.3

11.5

11.7

11.8

12.0

12.2

12.4

Inglewood

1.2%

98%

4.1

4.1

4.2

4.2

4.3

4.4

4.4

4.5

4.5

4.6

4.6

4.7

4.7

4.8

4.8

4.9

Inglewood

1.2%

Max

5.4

5.5

5.5

5.6

5.7

5.7

5.8

5.9

5.9

6.0

6.1

6.1

6.2

6.3

6.4

6.4

Kaponga

0.5%

98%

2.8

2.8

2.8

2.8

2.8

2.8

2.8

2.9

2.9

2.9

2.9

2.9

2.9

2.9

3.0

3.0

Kaponga

0.5%

Max

3.0

3.1

3.1

3.1

3.1

3.1

3.1

3.2

3.2

3.2

3.2

3.2

3.2

3.3

3.3

3.3

Kapuni

2.0%

98%

6.7

6.9

7.0

7.1

7.3

7.4

7.6

7.7

7.9

8.0

8.2

8.4

8.5

8.7

8.9

9.0

Kapuni

2.0%

Max

9.1

9.3

9.4

9.6

9.8

10.0

10.2

10.4

10.6

10.9

11.1

11.3

11.5

11.7

12.0

12.2

Katere

2.0%

98%

0.0

0.0

8.0

8.2

8.3

8.5

8.7

8.8

9.0

9.2

9.4

9.6

9.8

9.9

10.1

10.3
10.3

Katere

2.0%

Max

0.0

0.0

8.0

8.2

8.3

8.5

8.7

8.8

9.0

9.2

9.4

9.6

9.8

9.9

10.1

Livingstone

0.5%

98%

2.4

2.4

2.4

2.4

2.4

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.6

2.6

2.6

Livingstone

0.5%

Max

2.7

2.7

2.7

2.7

2.7

2.8

2.8

2.8

2.8

2.8

2.8

2.8

2.9

2.9

2.9

2.9

Manaia

2.5%

98%

5.5

5.7

5.8

5.9

6.1

6.2

6.4

6.6

6.7

6.9

7.1

7.2

7.4

7.6

7.8

8.0

Manaia

2.5%

Max

6.5

6.6

6.8

7.0

7.1

7.3

7.5

7.7

7.9

8.1

8.3

8.5

8.7

8.9

9.1

9.3

Mangorei

0.0%

98%

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

2.9

Mangorei

0.0%

Max

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Load Forecast in MW
5yrs Forecast Growth
Substation

Beyond 5yrs Forecast

Peak Type

McKee

0.0%

98%

2009

0.9

2010

0.9

2011

0.9

2012

0.9

2013

0.9

2014

0.9

2015

0.9

2016

0.9

2017

0.9

2018

0.9

2019

0.9

2020

0.9

2021

0.9

2022

0.9

2023

0.9

2024

0.9

McKee

0.0%

Max

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

0.9

Motukawa

1.0%

98%

1.0

1.0

1.0

1.0

1.0

1.0

1.1

1.1

1.1

1.1

1.1

1.1

1.1

1.1

1.1

1.2

Motukawa

1.0%

Max

1.3

1.3

1.3

1.3

1.3

1.3

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.5

1.5

1.5

Ngariki

0.5%

98%

2.0

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.2

2.2

2.2

2.2

2.2

Ngariki

0.5%

Max

2.2

2.3

2.3

2.3

2.3

2.3

2.3

2.3

2.3

2.4

2.4

2.4

2.4

2.4

2.4

2.4

Oakura

5.0%

98%

2.6

2.7

2.8

3.0

3.1

3.3

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

5.1

5.3

Oakura

5.0%

Max

3.1

3.3

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

5.0

5.3

5.6

5.8

6.1

6.4

Oaonui

0.0%

98%

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

Oaonui

0.0%

Max

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

Pohokura

10.0%

98%

1.4

1.5

1.7

1.8

2.0

2.2

2.4

2.7

2.9

3.2

3.5

3.9

4.3

4.7

5.2

5.7

Pohokura

10.0%

Max

1.8

2.0

2.2

2.4

2.7

2.9

3.2

3.5

3.9

4.3

4.7

5.2

5.7

6.3

6.9

7.6

Pungarehu

0.5%

98%

2.8

2.8

2.8

2.8

2.8

2.8

2.9

2.9

2.9

2.9

2.9

2.9

2.9

3.0

3.0

3.0

Pungarehu

0.5%

Max

4.7

4.7

4.8

4.8

4.8

4.8

4.9

4.9

4.9

4.9

5.0

5.0

5.0

5.0

5.1

5.1

Strathmore

0.0%

98%

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

Strathmore

0.0%

Max

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

Tasman

0.5%

98%

5.8

5.8

5.8

5.8

5.9

5.9

5.9

6.0

6.0

6.0

6.1

6.1

6.1

6.1

6.2

6.2

Tasman

0.5%

Max

6.5

6.5

6.5

6.6

6.6

6.6

6.7

6.7

6.7

6.8

6.8

6.8

6.9

6.9

7.0

7.0

TP Moturoa

2.2%

98%

16.9

17.3

17.7

18.1

15.4

15.7

16.1

16.4

16.8

17.1

17.5

17.9

18.3

18.7

19.1

19.5

TP Moturoa

2.2%

Max

20.0

20.4

20.8

21.3

18.7

19.1

19.5

19.9

20.4

20.8

21.3

21.7

22.2

22.7

23.2

23.7

Waihapa

0.0%

98%

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

Waihapa

0.0%

Max

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

Waitara East

1.0%

98%

4.4

4.4

4.5

4.5

4.6

4.6

4.6

4.7

4.7

4.8

4.8

4.9

4.9

5.0

5.0

5.1

Waitara East

1.0%

Max

5.3

5.4

5.4

5.5

5.5

5.6

5.7

5.7

5.8

5.8

5.9

6.0

6.0

6.1

6.1

6.2

Whareroa

1.0%

98%

3.5

3.5

3.5

3.6

3.6

3.6

3.7

3.7

3.7

3.8

3.8

3.9

3.9

3.9

4.0

4.0

Whareroa

1.0%

Max

5.0

5.1

5.1

5.2

5.2

5.3

5.3

5.4

5.5

5.5

5.6

5.6

5.7

5.7

5.8

5.8

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

131

Table 7.10: Forecast Maximum Demand for Tauranga Zone Substations

Load Forecast in MW

5yrs Forecast Growth

132

Substation

Beyond 5yrs Forecast

Peak Type

Aongatete

3.0%

98%

2009

4.3

2010

4.5

2011

3.1

2012

3.2

2013

3.3

2014

3.4

2015

3.5

2016

3.6

2017

3.7

2018

3.8

2019

3.9

2020

4.0

2021

4.2

2022

4.3

2023

4.4

2024

4.5

Aongatete

3.0%

Max

6.3

6.5

5.2

5.3

5.5

5.7

5.8

6.0

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

Atuaroa

4.0%

98%

5.8

6.0

6.2

6.5

6.7

7.0

7.3

7.6

7.9

8.2

8.5

8.9

9.2

9.6

10.0

10.4

Atuaroa

4.0%

Max

6.8

7.0

7.3

7.6

7.9

8.2

8.6

8.9

9.3

9.6

10.0

10.4

10.8

11.3

11.7

12.2

Hamilton St

3.5%

98%

11.6

12.0

12.4

12.9

13.3

13.8

14.3

14.8

15.3

15.8

16.4

16.9

17.5

18.1

18.8

19.4

Hamilton St

3.5%

Max

14.0

14.5

15.0

15.5

16.1

16.6

17.2

17.8

18.4

19.1

19.8

20.5

21.2

21.9

22.7

23.5

Katikati

3.0%

98%

5.7

5.9

6.0

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

7.9

8.1

8.3

8.6

8.9

Katikati

3.0%

Max

7.0

7.2

7.4

7.6

7.8

8.1

8.3

8.6

8.8

9.1

9.3

9.6

9.9

10.2

10.5

10.8

Kauri Point

2.0%

98%

2.0

2.0

2.1

2.1

2.1

2.2

2.2

2.3

2.3

2.4

2.4

2.5

2.5

2.6

2.6

2.7

Kauri Point

2.0%

Max

2.7

2.8

2.8

2.9

2.9

3.0

3.0

3.1

3.2

3.2

3.3

3.4

3.4

3.5

3.6

3.6

Matua

1.5%

98%

7.9

8.0

8.1

8.2

8.4

8.5

8.6

8.7

8.9

9.0

9.1

9.3

9.4

9.6

9.7

9.8

Matua

1.5%

Max

9.3

9.4

9.6

9.7

9.9

10.0

10.2

10.3

10.5

10.6

10.8

11.0

11.1

11.3

11.5

11.6

TP Mt Maunganui

4.0%

98%

15.0

15.6

16.2

16.9

17.5

18.2

19.0

19.7

20.5

21.3

22.2

23.1

24.0

25.0

26.0

27.0

TP Mt Maunganui

4.0%

Max

19.5

20.3

21.1

22.0

22.8

23.8

24.7

25.7

26.7

27.8

28.9

30.1

31.3

32.5

33.8

35.2

Omokoroa

5.0%

98%

7.1

7.4

9.3

9.8

10.2

10.8

11.3

11.9

12.4

13.1

13.7

14.4

15.1

15.9

16.7

17.5

Omokoroa

5.0%

Max

9.0

9.4

11.4

12.0

12.6

13.2

13.8

14.5

15.3

16.0

16.8

17.7

18.5

19.5

20.4

21.5

Otumoetai

2.0%

98%

12.6

12.9

13.2

13.4

13.7

14.0

14.2

14.5

14.8

15.1

15.4

15.7

16.0

16.4

16.7

17.0

Otumoetai

2.0%

Max

17.5

17.8

18.2

18.5

18.9

19.3

19.7

20.0

20.4

20.9

21.3

21.7

22.1

22.6

23.0

23.5

Papamoa

6.0%

98%

18.7

19.8

21.0

22.3

23.6

25.0

26.5

28.1

29.8

31.6

33.5

35.5

37.6

39.9

42.3

44.8

Papamoa

6.0%

Max

22.8

24.2

25.7

27.2

28.8

30.6

32.4

34.3

36.4

38.6

40.9

43.3

45.9

48.7

51.6

54.7

Pongakawa

2.0%

98%

4.6

4.7

2.8

2.9

2.9

3.0

3.0

3.1

3.2

3.2

3.3

3.4

3.4

3.5

3.6

3.6

Pongakawa

2.0%

Max

5.5

5.6

3.8

3.8

3.9

4.0

4.1

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

Te Puke

3.0%

98%

17.0

17.5

16.0

16.5

17.0

17.5

18.0

18.6

19.1

19.7

20.3

20.9

21.5

22.2

22.9

23.5

Te Puke

3.0%

Max

18.9

19.5

18.1

18.6

19.2

19.7

20.3

20.9

21.6

22.2

22.9

23.6

24.3

25.0

25.7

26.5

TP_Tauranga

4.5%

98%

22.0

23.0

24.0

25.1

20.2

21.1

22.1

23.1

24.1

25.2

26.3

27.5

28.8

30.1

31.4

32.8

TP_Tauranga

4.5%

Max

26.5

27.7

29.0

30.3

25.6

26.8

28.0

29.2

30.6

31.9

33.4

34.9

36.4

38.1

39.8

41.6

Triton

4.0%

98%

20.1

20.9

21.8

12.6

13.1

13.7

14.2

14.8

15.4

16.0

16.6

17.3

18.0

18.7

19.4

20.2

Triton

4.0%

Max

24.1

25.0

26.0

17.1

17.8

18.5

19.2

20.0

20.8

21.6

22.5

23.4

24.3

25.3

26.3

27.4

Waihi Rd

3.5%

98%

13.9

14.1

14.2

14.3

14.5

14.6

14.8

14.9

15.1

15.2

15.4

15.5

15.7

15.8

16.0

16.2

Waihi Rd

3.5%

Max

15.6

15.8

15.9

16.1

16.3

16.4

16.6

16.8

16.9

17.1

17.3

17.4

17.6

17.8

18.0

18.1

Welcome Bay

3.5%

98%

14.8

15.3

15.8

16.4

17.0

17.6

18.2

18.8

19.5

20.1

20.8

21.6

22.3

23.1

23.9

24.8

Welcome Bay

3.5%

Max

19.1

19.7

20.4

21.1

21.9

22.6

23.4

24.2

25.1

26.0

26.9

27.8

28.8

29.8

30.8

31.9

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.11: Forecast Maximum Demand for Valley Zone Substations

Load Forecast in MW

5yrs Forecast Growth

Substation

Beyond 5yrs Forecast

Peak Type

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Baird Rd

2.0%

98%

6.8

6.9

7.1

7.2

7.3

7.5

7.6

7.8

7.9

8.1

8.3

8.4

8.6

8.8

8.9

9.1

Baird Rd

2.0%

Max

9.9

10.1

10.3

10.5

10.7

10.9

11.2

11.4

11.6

11.8

12.1

12.3

12.6

12.8

13.1

13.3

Browne St

2.0%

98%

6.1

6.2

6.3

6.5

6.6

6.7

6.9

7.0

7.1

7.3

7.4

7.6

7.7

7.9

8.0

8.2

Browne St

2.0%

Max

10.9

11.1

11.3

11.5

11.7

12.0

12.2

12.5

12.7

13.0

13.2

13.5

13.8

14.0

14.3

14.6

Coromandel

2.0%

98%

3.0

3.0

3.1

3.1

3.2

3.3

3.3

3.4

3.5

3.5

3.6

3.7

3.8

3.8

3.9

4.0

Coromandel

2.0%

Max

4.0

4.1

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.8

4.9

5.0

5.1

5.2

5.4

Farmer Rd

2.0%

98%

6.0

6.1

6.2

6.3

6.5

6.6

6.7

6.9

7.0

7.1

7.3

7.4

7.6

7.7

7.9

8.0

Farmer Rd

2.0%

Max

6.9

7.0

7.2

7.3

7.5

7.6

7.8

7.9

8.1

8.2

8.4

8.6

8.7

8.9

9.1

9.3

Kerepehi

1.0%

98%

6.6

6.7

6.7

6.8

6.9

6.9

7.0

7.1

7.1

7.2

7.3

7.4

7.4

7.5

7.6

7.7

Kerepehi

1.0%

Max

7.9

8.0

8.1

8.2

8.3

8.3

8.4

8.5

8.6

8.7

8.8

8.9

8.9

9.0

9.1

9.2

Lake Rd

1.0%

98%

4.5

4.5

4.6

4.6

4.7

4.7

4.8

4.8

4.9

4.9

5.0

5.0

5.1

5.1

5.2

5.2

Lake Rd

1.0%

Max

5.3

5.4

5.4

5.5

5.6

5.6

5.7

5.7

5.8

5.8

5.9

6.0

6.0

6.1

6.1

6.2

Maraetai Rd

2.0%

98%

7.9

8.1

8.2

8.4

8.6

8.7

8.9

9.1

9.3

9.4

9.6

9.8

10.0

10.2

10.4

10.6

Maraetai Rd

2.0%

Max

9.5

9.7

9.9

10.1

10.3

10.5

10.7

10.9

11.1

11.3

11.6

11.8

12.0

12.3

12.5

12.8

Matatoki

1.0%

98%

3.4

3.4

3.4

3.5

3.5

3.5

3.6

3.6

3.7

3.7

3.7

3.8

3.8

3.8

3.9

3.9

Matatoki

1.0%

Max

4.9

4.9

5.0

5.0

5.1

5.1

5.2

5.2

5.3

5.3

5.4

5.5

5.5

5.6

5.6

5.7

Mikkelsen Rd

2.0%

98%

12.1

12.4

12.6

12.9

13.1

13.4

13.7

13.9

14.2

14.5

14.8

15.1

15.4

15.7

16.0

16.3

Mikkelsen Rd

2.0%

Max

13.3

13.6

13.9

14.1

14.4

14.7

15.0

15.3

15.6

15.9

16.2

16.6

16.9

17.2

17.6

17.9

Morrinsville

1.0%

98%

7.5

7.6

7.6

7.7

7.8

7.9

8.0

8.0

8.1

8.2

8.3

8.4

8.4

8.5

8.6

8.7

Morrinsville

1.0%

Max

9.5

9.6

9.7

9.8

9.9

10.0

10.1

10.2

10.3

10.4

10.5

10.6

10.7

10.8

10.9

11.0

Paeroa

1.0%

98%

6.0

6.1

6.1

6.2

6.2

6.3

6.4

6.4

6.5

6.6

6.6

6.7

6.8

6.8

6.9

7.0

Paeroa

1.0%

Max

8.0

8.0

8.1

8.2

8.3

8.4

8.5

8.5

8.6

8.7

8.8

8.9

9.0

9.1

9.2

9.3

Piako

1.5%

98%

10.6

10.7

10.9

11.0

11.2

11.4

11.6

11.7

11.9

12.1

12.3

12.4

12.6

12.8

13.0

13.2

Piako

1.5%

Max

12.7

12.9

13.1

13.3

13.5

13.7

13.9

14.1

14.3

14.5

14.7

15.0

15.2

15.4

15.6

15.9

Putaruru

1.0%

98%

9.3

9.4

9.5

9.6

9.7

9.8

9.9

10.0

10.1

10.2

10.3

10.4

10.5

10.6

10.7

10.8

Putaruru

1.0%

Max

10.8

10.9

11.0

11.1

11.2

11.3

11.4

11.5

11.7

11.8

11.9

12.0

12.1

12.3

12.4

12.5

Tahuna

1.0%

98%

4.7

4.7

4.7

4.8

4.8

4.9

4.9

5.0

5.0

5.1

5.1

5.2

5.2

5.3

5.4

5.4

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

133

Load Forecast in MW

5yrs Forecast Growth

Substation

134

Beyond 5yrs Forecast

Peak Type

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Tahuna

1.0%

Max

5.7

5.8

5.8

5.9

5.9

6.0

6.1

6.1

6.2

6.2

6.3

6.4

6.4

6.5

6.6

6.6

Tairua

2.0%

98%

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

6.0

6.1

6.2

6.3

6.4

6.6

6.7

6.8

Tairua

2.0%

Max

7.6

7.7

7.9

8.0

8.2

8.4

8.5

8.7

8.9

9.1

9.2

9.4

9.6

9.8

10.0

10.2

Thames

1.0%

98%

10.7

10.8

10.9

11.0

11.2

11.3

11.4

11.5

11.6

11.7

11.8

12.0

12.1

12.2

12.3

12.4

Thames

1.0%

Max

14.0

14.1

14.2

14.4

14.5

14.7

14.8

15.0

15.1

15.3

15.4

15.6

15.7

15.9

16.0

16.2

Tirau

1.0%

98%

7.5

7.6

7.7

7.7

7.8

7.9

8.0

8.1

8.1

8.2

8.3

8.4

8.5

8.6

8.6

8.7

Tirau

1.0%

Max

8.1

8.2

8.3

8.4

8.5

8.6

8.6

8.7

8.8

8.9

9.0

9.1

9.2

9.3

9.4

9.4

Tower Rd

2.0%

98%

6.9

7.0

7.2

7.3

7.5

7.6

7.8

7.9

8.1

8.3

8.4

8.6

8.8

8.9

9.1

9.3

Tower Rd

2.0%

Max

8.8

9.0

9.2

9.4

9.5

9.7

9.9

10.1

10.3

10.5

10.8

11.0

11.2

11.4

11.6

11.9

Waharoa

0.0%

98%

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

5.7

Waharoa

0.0%

Max

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

6.6

Waihi

1.0%

98%

13.9

14.1

14.2

14.3

14.5

14.6

14.8

14.9

15.1

15.2

15.4

15.5

15.7

15.8

16.0

16.2

Waihi

1.0%

Max

15.6

15.8

15.9

16.1

16.3

16.4

16.6

16.8

16.9

17.1

17.3

17.4

17.6

17.8

18.0

18.1

Waihi Beach

2.0%

98%

3.7

3.8

3.9

3.9

4.0

4.1

4.2

4.3

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5.0

Waihi Beach

2.0%

Max

5.5

5.6

5.7

5.8

5.9

6.1

6.2

6.3

6.4

6.6

6.7

6.8

7.0

7.1

7.2

7.4

Waitoa

0.0%

98%

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

9.6

Waitoa

0.0%

Max

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

10.6

Walton

1.0%

98%

4.3

4.4

4.4

4.5

4.5

4.5

4.6

4.6

4.7

4.7

4.8

4.8

4.9

4.9

5.0

5.0

Walton

1.0%

Max

5.2

5.2

5.3

5.3

5.4

5.4

5.5

5.5

5.6

5.6

5.7

5.8

5.8

5.9

5.9

6.0

Whangamata

1.5%

98%

4.9

4.9

5.0

5.1

5.2

5.2

5.3

5.4

5.5

5.6

5.6

5.7

5.8

5.9

6.0

6.1

Whangamata

1.5%

Max

8.5

8.7

8.8

8.9

9.1

9.2

9.3

9.5

9.6

9.8

9.9

10.1

10.2

10.4

10.5

10.7

Whitianga

3.0%

98%

10.7

11.0

11.3

11.6

12.0

12.3

12.7

13.1

13.5

13.9

14.3

14.7

15.2

15.6

16.1

16.6

Whitianga

3.0%

Max

14.9

15.3

15.8

16.2

16.7

17.2

17.7

18.3

18.8

19.4

20.0

20.6

21.2

21.8

22.5

23.2

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.12: Forecast Maximum Demand for Wairarapa Substations

Load Forecast in MW
5yrs Forecast Growth
Substation

Beyond 5yrs Forecast

Peak Type

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Akura

2.4%

98%

9.6

9.9

10.1

10.3

10.6

10.8

11.1

11.4

11.6

11.9

12.2

12.5

12.8

13.1

13.4

13.7

Akura

2.4%

Max

10.8

11.0

11.3

11.5

11.8

12.1

12.4

12.7

13.0

13.3

13.6

14.0

14.3

14.6

15.0

15.3

Awatoitoi

1.0%

98%

1.2

1.2

1.2

1.2

1.2

1.3

1.3

1.3

1.3

1.3

1.3

1.3

1.4

1.4

1.4

1.4

Awatoitoi

1.0%

Max

1.2

1.2

1.2

1.2

1.2

1.3

1.3

1.3

1.3

1.3

1.3

1.3

1.4

1.4

1.4

1.4

Chapel

2.0%

98%

12.3

12.6

12.8

13.1

13.4

13.6

13.9

14.2

14.5

14.8

15.0

15.3

15.7

16.0

16.3

16.6

Chapel

2.0%

Max

17.9

18.3

18.7

19.0

19.4

19.8

20.2

20.6

21.0

21.4

21.9

22.3

22.8

23.2

23.7

24.1

Clareville

1.0%

98%

7.0

7.1

7.2

7.2

7.3

7.4

7.4

7.5

7.6

7.7

7.7

7.8

7.9

8.0

8.1

8.1

Clareville

1.0%

Max

9.5

9.6

9.7

9.8

9.9

10.0

10.1

10.2

10.3

10.4

10.5

10.6

10.7

10.8

10.9

11.0

Featherston

1.0%

98%

3.7

3.7

3.8

3.8

3.8

3.9

3.9

3.9

4.0

4.0

4.1

4.1

4.1

4.2

4.2

4.3

Featherston

1.0%

Max

4.4

4.5

4.5

4.5

4.6

4.6

4.7

4.7

4.8

4.8

4.9

4.9

5.0

5.0

5.1

5.1

Gladstone

1.0%

98%

1.1

1.1

1.1

1.1

1.1

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.3

1.3

1.3

Gladstone

1.0%

Max

1.1

1.1

1.1

1.1

1.1

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.3

1.3

1.3

Hau Nui

1.0%

98%

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

Hau Nui

1.0%

Max

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

Kempton

1.0%

98%

3.3

3.3

3.3

3.4

3.4

3.4

3.5

3.5

3.5

3.6

3.6

3.6

3.7

3.7

3.7

3.8

Kempton

1.0%

Max

4.7

4.8

4.8

4.9

4.9

5.0

5.0

5.1

5.1

5.2

5.2

5.3

5.3

5.4

5.5

5.5

Martinborough

2.0%

98%

2.9

3.0

3.0

3.1

3.2

3.2

3.3

3.4

3.4

3.5

3.6

3.6

3.7

3.8

3.9

3.9

Martinborough

2.0%

Max

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5.0

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.9

Norfolk

1.5%

98%

6.0

6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8

6.9

7.0

7.1

7.2

7.3

7.4

7.5

Norfolk

1.5%

Max

6.0

6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8

6.9

7.0

7.1

7.2

7.3

7.4

7.5

Te Ore Ore

2.5%

98%

5.1

5.2

5.4

5.5

5.6

5.8

5.9

6.1

6.2

6.4

6.5

6.7

6.9

7.0

7.2

7.4

Te Ore Ore

2.5%

Max

6.1

6.3

6.4

6.6

6.7

6.9

7.1

7.3

7.4

7.6

7.8

8.0

8.2

8.4

8.6

8.9

Tinui

0.5%

98%

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.9

0.9

0.9

0.9

0.9

0.9

Tinui

0.5%

Max

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.9

0.9

0.9

0.9

0.9

0.9

Tuhitarata

1.0%

98%

2.5

2.5

2.5

2.5

2.6

2.6

2.6

2.6

2.7

2.7

2.7

2.7

2.8

2.8

2.8

2.9

Tuhitarata

1.0%

Max

2.5

2.5

2.6

2.6

2.6

2.6

2.7

2.7

2.7

2.7

2.8

2.8

2.8

2.8

2.9

2.9

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

135

Table 7.13: Forecast Maximum Demand for Wanganui Substations

Load Forecast in MW

5yrs Forecast Growth

136

Substation

Beyond 5yrs Forecast

Peak Type

Arahina

1.0%

98%

2009

6.5

2010

6.6

2011

6.7

2012

6.7

2013

6.8

2014

6.9

2015

6.9

2016

7.0

2017

7.1

2018

7.1

2019

7.2

2020

7.3

2021

7.4

2022

7.4

2023

7.5

2024

7.6

Arahina

1.0%

Max

8.3

8.4

8.5

8.5

8.6

8.7

8.8

8.9

9.0

9.1

9.2

9.3

9.3

9.4

9.5

9.6

Beach Rd

3.5%

98%

6.0

6.2

6.4

6.6

6.8

7.1

7.3

7.6

7.9

8.1

8.4

8.7

9.0

9.3

9.7

10.0

Beach Rd

3.5%

Max

7.7

7.9

8.2

8.5

8.8

9.1

9.4

9.8

10.1

10.5

10.8

11.2

11.6

12.0

12.4

12.9

Blink Bonnie

1.0%

98%

2.3

2.3

2.3

2.4

2.4

2.4

2.4

2.5

2.5

2.5

2.5

2.6

2.6

2.6

2.6

2.7

Blink Bonnie

1.0%

Max

4.1

4.1

4.2

4.2

4.3

4.3

4.3

4.4

4.4

4.5

4.5

4.6

4.6

4.7

4.7

4.7

Bulls

3.0%

98%

4.5

4.6

4.7

4.9

5.0

5.2

5.3

5.5

5.7

5.8

6.0

6.2

6.4

6.6

6.8

7.0

Bulls

3.0%

Max

5.3

5.4

5.6

5.8

5.9

6.1

6.3

6.5

6.7

6.9

7.1

7.3

7.5

7.8

8.0

8.2

Castlecliff

3.0%

98%

7.1

7.3

7.5

7.8

8.0

8.2

8.5

8.7

9.0

9.3

9.6

9.8

10.1

10.4

10.8

11.1

Castlecliff

3.0%

Max

10.4

10.8

11.1

11.4

11.8

12.1

12.5

12.8

13.2

13.6

14.0

14.5

14.9

15.3

15.8

16.3

Hatricks Wharf

4.0%

98%

9.0

9.4

9.7

10.1

10.5

10.9

11.4

11.8

12.3

12.8

13.3

13.9

14.4

15.0

15.6

16.2

Hatricks Wharf

4.0%

Max

11.3

11.8

12.3

12.8

13.3

13.8

14.4

14.9

15.5

16.1

16.8

17.5

18.2

18.9

19.6

20.4

Kai Iwi

1.0%

98%

1.6

1.6

1.7

1.7

1.7

1.7

1.7

1.7

1.8

1.8

1.8

1.8

1.8

1.8

1.9

1.9

Kai Iwi

1.0%

Max

2.1

2.1

2.1

2.1

2.1

2.2

2.2

2.2

2.2

2.2

2.3

2.3

2.3

2.3

2.4

2.4

Ohakune

1.0%

98%

1.7

1.7

1.7

1.7

1.8

1.8

1.8

1.8

1.8

1.8

1.9

1.9

1.9

1.9

1.9

2.0

Ohakune

1.0%

Max

2.2

2.2

2.2

2.2

2.3

2.3

2.3

2.3

2.3

2.4

2.4

2.4

2.4

2.5

2.5

2.5

Peat St

2.2%

98%

12.6

12.9

13.2

13.5

13.8

14.1

14.4

14.7

15.0

15.4

15.7

16.0

16.4

16.7

17.1

17.5

Peat St

2.2%

Max

15.2

15.5

15.9

16.2

16.6

17.0

17.3

17.7

18.1

18.5

18.9

19.3

19.7

20.2

20.6

21.1
3.4

Pukepapa

1.3%

98%

2.8

2.9

2.9

2.9

3.0

3.0

3.1

3.1

3.1

3.2

3.2

3.3

3.3

3.4

3.4

Pukepapa

1.3%

Max

8.0

8.1

8.2

8.3

8.5

8.6

8.7

8.8

8.9

9.0

9.1

9.3

9.4

9.5

9.6

9.7

Rata

0.5%

98%

1.6

1.6

1.6

1.6

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

Rata

0.5%

Max

2.0

2.0

2.0

2.0

2.0

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.1

2.2

Roberts Ave

2.0%

98%

4.0

4.1

4.2

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5.0

5.1

5.2

5.3

5.4
12.3

Roberts Ave

2.0%

Max

9.2

9.3

9.5

9.7

9.9

10.1

10.3

10.5

10.7

10.9

11.2

11.4

11.6

11.8

12.1

Taihape

1.0%

98%

6.1

6.2

6.2

6.3

6.3

6.4

6.5

6.5

6.6

6.7

6.7

6.8

6.9

6.9

7.0

7.1

Taihape

1.0%

Max

6.1

6.2

6.2

6.3

6.3

6.4

6.5

6.5

6.6

6.7

6.7

6.8

6.9

6.9

7.0

7.1

Taupo Quay

2.0%

98%

7.4

7.5

7.7

7.8

8.0

8.1

8.3

8.5

8.6

8.8

9.0

9.2

9.3

9.5

9.7

9.9

Taupo Quay

2.0%

Max

10.8

11.1

11.3

11.5

11.7

12.0

12.2

12.5

12.7

13.0

13.2

13.5

13.7

14.0

14.3

14.6

TP Ohakune

1.0%

98%

1.7

1.7

1.7

1.7

1.8

1.8

1.8

1.8

1.8

1.8

1.9

1.9

1.9

1.9

1.9

2.0

TP Ohakune

1.0%

Max

2.2

2.2

2.2

2.2

2.3

2.3

2.3

2.3

2.3

2.4

2.4

2.4

2.4

2.5

2.5

2.5

TP Waverley

1.5%

98%

3.3

3.3

3.4

3.5

3.5

3.6

3.6

3.7

3.7

3.8

3.8

3.9

3.9

4.0

4.1

4.1

TP Waverley

1.5%

Max

3.7

3.8

3.8

3.9

3.9

4.0

4.0

4.1

4.2

4.2

4.3

4.4

4.4

4.5

4.6

4.6

Waiouru

0.5%

98%

2.7

2.7

2.7

2.7

2.7

2.7

2.7

2.8

2.8

2.8

2.8

2.8

2.8

2.8

2.9

2.9

Waiouru

0.5%

Max

3.2

3.2

3.2

3.2

3.2

3.2

3.3

3.3

3.3

3.3

3.3

3.3

3.4

3.4

3.4

3.4

Wanganui East

1.0%

98%

4.5

4.5

4.6

4.6

4.7

4.7

4.8

4.8

4.9

4.9

5.0

5.0

5.1

5.1

5.2

5.2

Wanganui East

1.0%

Max

6.2

6.3

6.4

6.4

6.5

6.6

6.6

6.7

6.8

6.8

6.9

7.0

7.0

7.1

7.2

7.2

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

7.6.

Impacts of Distributed Generation and Non Network Options

7.6.1.

Distributed Generation Policy

Powercos Distributed Generation Policy follows the requirements of the Electricity

Governance (Connection of Distributed Generation Regulations) 2007. In addition, it
details Powercos Network Management, Health and Safety, and Connection policies,
along with pertinent industry rules and standards. The policy is reviewed annually due
to the fast changing nature of distributed generation development.
The policy describes the application process, time frames applicable, disputes
resolution process, terms of connection and applicable fees. It also outlines
requirements for the recovery of network support or avoided cost of transmission
payments available to generators.

7.6.3.

Non network options are described in Section 4.3.6.

7.7.

7.8.

Subtransmission Development Plan

A Long-Term Development Plan (LTDP), separate from this Asset Management
Plan, has been prepared for Powercos networks to assess each zone substation
on Powercos networks, considering the loadings and security standards required
of it during the planning period and its ability to meet these. A programme of
subtransmission development projects required has been prepared from this
information, and is presented in Table 7.27.

Powerco is recognising the RMA provisions and the NZ Energy Strategy as they pertain
to Distributed Generation in the discussions it enters into with territorial authorities
regarding the policies and rules included in Regional and District plans. The broad
intent is to avoid the need to generate electricity thorough the burning of fossil fuels.

The LTDP is updated whenever significant changes to loads are known, but at
least once a year. The subtransmission performance drivers are reviewed, and the
development plan is updated to satisfy changed network conditions. The LTDP
reviews each zone substation, considering the GXP, the subtransmission network, the
transformer and switchgear capacity and the security level required. The data required
to make these assessments follows, along with comments on the capacity and security
of each zone substation.

Distributed Generation Impacts

Use of Remote Area Power Supplies has been described in Section 6.4 in the context
of deferring renewal expenditure.
Powerco has undertaken various studies on using various forms of generation to defer
major network developments. One study briefly investigated the option of constructing
banks of diesel generation at various places in Coromandel. However the study concluded
that diesel generation in this area would be an expensive way of providing network
security. Another investigation reviewed the feasibility of using gas fired generation to offset
additional demand growth on the Valley spur, and showed a low viability.

Acquisition of New Assets

Where appropriate and economically viable, Powerco will continue to acquire new
assets. This may be by acquiring sections of the network owned by consumers or new
subdivisions. Those carrying out subdivision development have shown little inclination
to retain ownership and it is anticipated that this trend will continue for the duration of
this plan.

Powercos Distributed Generation Policy is published on the companys website, along

with detailed advice and links to relevant standards. A dedicated guide document
is also available to electricity retailers to assist in responding to customer enquiries
regarding DG.

7.6.2.

Non Network Options

7.8.1.

LTDP Preparation Process Zone Substations

Figure 7.7 shows the process of assessing the network against various criteria,
determining work required and entering it into the LTDP. This highlights that the level of
detail in the assessment of each project is inappropriate for inclusion in this AMP.

There will likely be impacts on remote rural supply brought about by combinations
Photo-voltaics and batteries as the costs for these reduce, but these will not
necessarily defer system growth driven network developments, rather they will most
likely impact renewal investments.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

137

7.8.2.

For each
substation

The development of the network is dependent on the present and planned future
capacity and security of the 26 grid exit points supplying it (refer Table 7.14). Regular
discussions with Transpower (refer Section 2.10) are held to co-ordinate Powercos
and Transpowers respective development plans. The following situations are under
consideration:

Spares/Service Availability
Transformer(s), Tap Changer(s),
Switchgear

Determine Equipment Reliability

A new GXP for the Piako area is currently in the design stages. This installation will
be built by Independent Transmission Services Ltd adjacent to the existing Piako
zone substation, and is scheduled for completion mid 2011. This will address the
long-term supply capacity and security concerns in the area presently supplied by
Waihou GXP;

Reliability Data
Powerco Data/Experience
External Date (EEA, ESAA)

Age Profile

Determine Equipment Performance

Capability

A new GXP at Papamoa East is proposed to cater for the large-scale urban and
industrial developments planned for Papamoa East, Wairakei and Rangiuru.
Independent Transmission Services Ltd is currently conducting line route, easement
and site procurement investigations. This site will need to be commissioned c. 2014,
or earlier if possible.

Transformer(s), Switchgear

Capacity
Rating, Environment, Overload
Capacity

Determine Substation Performance

Capability

Substation details

A new GXP is planned for Putaruru, which will provide an alternative supply for
Putaruru, Tirau and Lake Rd substations, enabling their security of supply to be
strengthened. Independent Transmission Services Ltd is currently conducting line
route, easement and site procurement investigations.

Standard of Construction,
Condition, Age Profile
Prepare Load Forecasts

Feeder Loads
From SCADA, from MDIs, from
spot readings

Te Matai GXP security has been enhanced by the addition of a second transformer
bank, commissioned in April 2009.

Load Growth
Historical, Demographic and
Business Data

The Kaitimako GXP has been completed by the installation of a single 75MVA
110/33kV transformer. The Welcome Bay zone substation load of approximately
16MVA has been transferred permanently from the Tauranga 33kV bus to the new
GXP

Determine Required Substation

Performance

Standards

T4 at the Tauranga 33kV GXP is being upgraded from 30MVA to 120MVA. This
project is under way and scheduled for completion in late 2010. A project to
upgrade the 33kV switchyard to an indoor bus will follow closely.

Compare

Determine Solution and Timing

No

The demand at the 11kV bus at Mt Maunganui GXP exceeds its firm capacity
and, due to the rate of development, the ability to transfer load to Papamoa and
Triton substations is diminishing. The new Matapihi zone substation adjacent to
Mt Maunganui GXP is scheduled for completion in early 2010, while Transpowers
upgrade of Mt Maunganui GXP to a firm capacity of 75MVA is scheduled for
completion In October 2010.

REQUIREMENTS
MET TO 2020
Yes

No

OPTIMUM?

Yes

Grid Exit Points

Record Result in LTDP

LTDP

The security of supply offered by Transpowers 110kV circuits into the Tauranga area
is affected by the Poike Tee. A small number of spans between Kaitimako and Poike
have limited capacity. This situation is under ongoing discussion with Transpower,
who are promoting a regional study of transmission issues in the wider Bay Of

Figure 7.7: LTDP Preparation Process Zone Substation.

138

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Plenty. A progressive step will be the upgrading of the Tarukenga-Kaitimako circuits

from 110kV to 220kV, and the installation of interconnection assets at Kaitimako.
Transpower currently have this Grid Upgrade Proposal before the Electricity
Commission, and it is expected to be approved in late 2009.
Transpower has prepared an operating protocol to open the 110kV bus at
Mangamarie GXP under high north-to-south power flows. The opening of the bus
reduces security of supply to Powercos Tararua and Wairarapa networks from N-1
to N;
Planning for the renewal of the transformers and 33kV switchgear at Masterton is
under way. This provides the opportunity to upgrade the capacity to 60MVA firm
from the present 30MVA;
An upgrade of the capacity at Stratford GXP is being discussed with Transpower;
Discussions are under way with Transpower over the provision of spare transformers
for Waverley, Ohakune and Mataroa. Transpower are building a fleet of national
spare transformers which will be cold stored at strategic locations.
In late 2009, Transpower initiated a series of connection risk reviews, assessing
current and future risks at individual GXPs. Connected parties were invited to
participate, with the result that to date, Powerco and Transpower have carried out
site visits and assessments at Bunnythorpe, Kopu, Waikino and Waihou GXPs.
Price Quality consultation was carried out with consumers In Taihape and Waiouru
with the result that the status quo was preferred - N security at Mataroa over N-1
at greater cost. Transpower are basing one of their national spare transformers at
Mataroa.
Waverley GXP is to get a capacity upgrade to 10MVA, while remaining a single
transformer GXP. Increased demand became apparent at Waverley during the dairy
season of 2009-2010, with the single transformer running to capacity at times. It is
thought that this increase is as a result of increased dairying, Industry and irrigation
activity. Demand management is made difficult by the fact that there is no load
control available at Waverley. The transformer upgrade is at least two years away, so
demand side participation measures may need to be explored.
The Electricity Commissions load management strategy is being watched with
interest. This will dictate whether investment in load control systems is viable.
.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

139

Table 7.14: Grid Exit Point Loads and Capacities

BranchLimit
(MVA) [1]

Firm
Capacity
(MVA)

Limiting
Factor [2]

Max Export
98% (MW)

Max Import
98% (MW)

S/gear
owner[3]

Desired
security
class

2009
Supply
Security [4]

1. Information based on Transpower Branch

Ratings Reports. (N) indicates single
transformer GXP.

GXP

Transformer Rating MVA

Brunswick (BRK)

1 x 39

39

39(N)

Trans

24.3

TP

AAA

AA [5]

Bunnythorpe (BPE)

2 x 83

83

83

Trans

72.5

AAA

AAA

Carrington St (CST)

2 x 75

62

62

Prot

43.7

TP

AAA

AAA

Greytown (GYT)

2 x20

20

20

Trans

3.6

9.65

TP

AA

AAA

4. Red denotes a security shortfall.

Hawera (HWA)

2 x30

30

30

Trans

22.2

TP

AAA

AAA

Hinuera (HIN)

1 x 30,1 x 50

50

30

Trans

33.6

TP

AAA

A1 [6]

5. Subtransmission interconnection is available

to partially back up Brunswick and Wanganui
GXPs.

Huirangi (HUI)

2 x 20

20

20

Trans

4.2

11.5

TP

AAA

AAA

Kaitimako

1 x 75

75

75(N)-

Trans

10.5

TP

AA

AA[7]

Kinleith (KIN) 11kV (CHH)

2 x 10, 1x 20, 2 x 30

30

30

Trans

65

TP

30

30(N)

Trans

15

TP

AA

Kinleith (KIN) 33kV (Powerco)

140

Notes:

AA

[8]

Kinleith (KIN) 33kV (CHH cogen)

20

20

20

Trans

-9

TP

Kopu (KPU)

2 x 60

43.4

40

Prot

35.6

TP

AAA

AAA

Linton (LTN)

2 x 100

81.7

81.7

OEL

15.2

40.0

AAA

AAA

Mangamaire (MGM)

2 x 30

27.1

27.1

OEL

9.5

TP

AA

AAA

Marton (MTN)

1 x 20, 1 x 30

19.6

19.6

OEL

13.5

TP

AAA

AAA

Masterton (MST)

2 x 30

30

30

Trans

35.3

TP

AAA

Mataroa (MTR)

30

19.6

19.6(N)

OEL

6.5

TP

A1

A2 [11]

Moturoa (MRA)

2 x 23

13.6

13.6

Cable

16.3

TP [12]

AAA

AA

Mt Maunganui 33 (MTM)

1 x 20, 1 x 40

40

20

Trans

32.0

AAA

AA [13]

Mt Maunganui 11 (MTM)

2 x 10

10

10

Trans

15.5

AAA

AA [13]

Ohakune (OKN)

10

10

10(N)

Trans

1.7

TP

A1

A2 [14]

[9]

AAA

[10]

Opunake OPK)

2 x 30

13.6

13.6

OEL

9.5

TP

AA

AAA

Stratford (SFD)

2 x 20

20

20

Trans

20.0

TP

AAA

AAA

Tauranga 11 (TGA)

2 x 30

29.7

29.7

Cable

21.0

TP

AAA

AAA

Tauranga 33 (TGA)

1 x 30, 1 x 90

30

30

Trans

42.0

AAA

AA [15]

Te Matai (TMI)

1 x 30, 1 x 40

30

30

Trans

23.5

AAA

AAA

Waihou (WHU)

3 x 20

20

40

Trans

50.5

TP

AAA

AA [16]

Waikino (WKO)

2 x 30

30

30

Trans

28.5

TP

AAA

AAA

Wanganui (WGN)

1 x 20, 1x 30

20

20

Trans

24.2

TP

AAA

AA [5]

Waverley (WVY)

4.5

4.5(N)

OEL

3.3

TP

A1

A1[17]

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

2. OEL in limiting factor column indicates

unspecified other equipment.
3. TP Transpower; P Powerco.

6. N security at Hinuera results from the single

incoming 110 kV circuit. Proposed new GXPs at
Putaruru and Piako will provide back up to this
GXP.
7. Welcome Bay Zone Substation will be supplied
from new GXP at Kaitemako from April 2009.
Existing lines to Tauranga GXP will provide
required backup security at AA level.
8. Kinleith T5 is backup for T4 supply to Maraetai
and Baird Rd in Tokoroa but must be break
before make switching.
9. Cogeneration averages 30MW at normal
operation but total export depends on mill load.
Powerco has no visibility of CHH 33kV load.
10. N-1 security relies on overload capacity of
transformers. Upgrade planned at Masterton to
2 x 60 MVA transformers.
11. Mataroa GXP has four single-phase
transformers.
12. Powerco owns incoming 33kV cable and share
of transformers at this GXP. Negotiations are
under way about purchasing this GXP.
13. Mt Maunganui GXP upgrade is under way and
due for completion March 2010.
14. Ohakune GXP has four single-phase
transformers.
15. Tauranga T4 replacement due in 2010.
16. New GXP proposed at Piako .
17. Waverley GXP has four single-phase
transformers.

Return to Index

The needs for development or upgrading of GXPs are monitored annually and when
embedded generation proposals arise. It is likely that additional capacity will be needed
at Stratford and Wanganui during the planning period. The upstream grid capacity
during the planning period is something that Powerco is watching and comments to
Transpower regularly.
7.8.3.

Zone Substation Transformer Utilisation

The following tables, Table 7.15 to Table 7.20 show transformer utilisation for 2008
and forecast utilisation for 2013 and 2018 on the basis of the presently installed
transformers. Load data is taken from load forecast tables.
Table 7.15: Manawatu Zone Substation Transformer Utilisation Data
Substation

Xfmr Nameplate Rating

(MVA)

ONAN Capacity

% Growth

2009 98th percentile

Load

2014 98th percentile

Load

2019 98th percentile

Load

% Utilisation 2009

% Utilisation 2014

% Utilisation 2019

Alfredton

1.5

1.44

0.5

0.6

0.7

0.66

43.8%

45.1%

45.8%

Feilding

16 / 24

32

1.9

17.4

19.2

21.04

54.5%

59.8%

65.8%

Fitzherbert

16 / 24

32

0.0

13.9

15.6

0.0%

43.3%

48.8%

Kairanga

12.5 / 17

25

1.6

14.8

16.1

17.39

59.4%

64.2%

69.6%

Keith St

11.5 / 23

20.8

1.5

13.1

14.2

15.25

63.2%

68.1%

73.3%

Kelvin Grove

12.5 / 17

25

2.3

13.2

14.8

16.56

52.8%

59.1%

66.2%

Kimbolton

2.9

2.1

2.4

2.63

72.6%

82.1%

90.7%

Main St

20

40

23.8

20.8

24.21

59.5%

52.1%

60.5%

Mangamutu

7.5

15

8.1

8.5

8.89

53.7%

56.4%

59.3%

Milson

12.5 / 17

25

14.4

16.0

17.6

57.8%

63.8%

70.4%

Parkville

2.9

0.5

1.7

1.7

1.77

57.6%

59.3%

61.0%

Pascal St

20

38.4

20.5

18.4

20.32

53.5%

48.0%

52.9%

Pongaroa

2.88

0.5

0.6

0.6

0.62

20.5%

21.2%

21.5%

Sanson

7.5

15

6.6

8.0

9.78

44.1%

53.6%

65.2%

12.5 / 17

25

3.8

13.9

13.3

16.02

55.4%

53.2%

64.1%

150.9

168.4

188.3

49.7%

55.5%

62.1%

Turitea

No of Xfmrs

26

303.32

Note:
1) Fitzherbert substation is planned for 2012. This substation will offload Main Street, Pascal & Turitea
substation by 6, 3.9 & 3 MVA respectively.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

141

Table 7.16: Taranaki Zone Substation Transformer Utilisation Data

No of Xfmrs

Xfmr Nameplate Rating

(MVA)

ONAN Capacity

% Growth

2009 98th percentile

Load

2014 98th percentile

Load

2019 98th percentile

Load

% Utilisation 2009

% Utilisation 2014

% Utilisation 2019

Bell Block

16 / 24

32

2.3

16.9

15.0

16.8

52.8%

46.9%

52.5%

Brooklands

16 / 24

32

1.8

17.0

14.5

15.8

53.2%

45.3%

49.5%

Cambria

10

19.2

1.5

13.1

14.2

15.2

68.4%

73.7%

79.4%

Cardiff

2.9

0.5

1.2

1.3

1.3

42.8%

43.8%

45.2%

City

11.5 / 23

21.2

1.9

18.6

19.5

21.4

87.5%

91.9%

100.9%

Cloton Rd

10 / 13

20

1.5

7.6

8.2

8.8

37.9%

40.9%

44.0%

Douglas

1.3

1.4

1.5

26.6%

28.0%

29.4%

Eltham

7.5 / 10

15

1.5

9.4

10.2

11.0

62.9%

67.8%

73.1%

Inglewood

10

1.2

4.3

4.6

4.9

43.2%

45.8%

48.6%

Kaponga

2.5

4.8

0.5

2.9

3.0

3.1

60.2%

61.9%

63.5%

Kapuni

10

7.1

7.8

8.6

70.7%

78.1%

86.2%

Katere Rd

16 / 24

32

0.0

8.9

9.9

0.0%

27.9%

30.8%

Livingstone

2.5

4.8

0.5

2.5

2.6

2.6

52.5%

53.8%

55.0%

Manaia

7.5

7.2

2.5

5.8

6.6

7.4

80.7%

91.4%

103.3%

McKee

1.25

2.4

1.0

1.0

1.0

39.6%

39.6%

39.6%

Motukawa

2.5

2.4

1.0

1.1

1.2

43.3%

45.4%

47.9%

Moturoa

TP Txs

28

2.2

17.8

16.6

18.4

63.7%

59.1%

65.9%

Ngariki

5 / 6.25

0.5

2.2

2.2

2.3

43.0%

44.0%

45.2%

Oakura

7.5 / 10

10

0.0

3.4

4.4

0.0%

34.3%

43.8%

Pohokura

10 / 12.5

20

10

1.4

2.3

3.7

7.2%

11.6%

18.7%

Pungarehu

3.0 / 4.0

0.5

2.9

3.0

3.1

48.7%

49.8%

51.2%

Tasman

10

0.5

6.1

6.2

6.4

60.6%

62.2%

63.7%

Waihapa

1x1.25, 1x2.5

3.75

1.3

1.3

1.3

33.6%

33.6%

33.6%

Waitara East

5.0 / 9.0

9.6

4.6

4.8

5.1

48.0%

50.4%

52.9%

Waitara West

10

4.3

4.5

4.7

42.8%

45.1%

47.3%

10

9.6

Substation

Whareroa

42

332.85

3.6

3.8

4.0

37.8%

39.8%

41.8%

154.0

167.8

183.7

46.3%

50.4%

55.2%

Note:
1) Katere Rd substation is under construction and is expected to be energised in 2011. This substation will offload Bell Block, Brooklands & City substation by 3.5, 3.7 & 0.8 MVA respectively.
2) Oakura substation is planned for 2013. This substation will offload Moturoa GXP by 3.1 MVA
3) The ambient temperature and hot spot temperature for which transformers are rated varies See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings assigned by
this standard.

142

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.17: Tauranga Zone Substation Transformer Utilisation Data

No of Xfmrs

Xfmr Nameplate Rating

(MVA)

ONAN Capacity

% Growth

2009 98th percentile

Load

2014 98th percentile

Load

2019 98th percentile

Load

% Utilisation 2009

% Utilisation 2014

% Utilisation 2019

Aongatete

10

3.0%

4.6

5.3

6.2

46.0%

53.3%

61.8%

Atuaroa

12.5 / 17

12.5

4.0%

6.1

7.4

9.0

48.8%

59.4%

72.2%

Hamilton St

16 / 24

32

3.5%

12.2

14.5

17.2

38.1%

45.3%

53.8%

Katikati

10 / 12.5

10

3.0%

6.0

7.0

8.1

60.0%

69.6%

80.6%

Kauri Point

2.0%

2.1

2.3

2.6

42.0%

46.4%

51.2%

Matua

10

1.5%

8.3

8.9

9.6

83.0%

89.4%

96.3%

Omokoroa

10 / 12.5

20

5.0%

7.4

9.4

12.1

37.0%

47.2%

60.3%

Otumoetai

1x10/12.5, 1x12.5/15

22.1

2.0%

13.3

14.7

16.2

60.2%

66.4%

73.4%

Papamoa

11.5 / 23

23

6.0%

19.7

26.4

35.3

85.7%

114.6%

153.4%

Pongakawa

1 x 5, 1 x 5 / 6.25

10

2.0%

4.9

5.4

6.0

49.0%

54.1%

59.7%

Te Puke

16 / 24

32

3.0%

17.9

20.8

24.1

55.9%

64.8%

75.2%

Triton

11.5 / 23

23

4.0%

21.2

25.8

31.4

92.2%

112.1%

136.4%

Waihi Rd

16 / 24

32

3.5%

14.6

17.3

20.6

45.6%

54.2%

64.4%

Welcome Bay

11.5 / 23

23

3.5%

15.6

18.5

22.0

67.8%

80.6%

95.7%

153.9

183.8

220.2

58.2%

69.5%

83.2%

Substation

25

264.6

Note: The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings assigned
by this standard.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

143

Table 7.18: Valley Zone Substation Transformer Utilisation Data

Substation

No of Xfmrs

Xfmr Nameplate Rating

(MVA)

ONAN Capacity

% Growth

2009 98th percentile

Load

2014 98th percentile

Load

2019 98th percentile

Load

% Utilisation 2009

% Utilisation 2014

% Utilisation 2019

Baird Rd

9.6

2.0%

7.1

7.8

8.7

74.0%

81.7%

90.2%

Browne St

7.5

7.2

2.0%

6.4

7.1

7.8

88.9%

98.1%

108.4%

Coromandel

2.0%

3.1

3.4

3.8

62.0%

68.5%

75.6%

Farmer Rd

9.6

2.0%

6.3

7.0

7.7

65.6%

72.5%

80.0%

Kerepehi

1 x 7.5, 1 x 5

12.5

1.0%

6.9

7.3

7.6

55.2%

58.0%

61.0%

Lake Rd

1.0%

4.7

4.9

5.2

94.0%

98.8%

103.8%

Lakeside +
Midway

3+3

5.8

0.0%

2.5

2.5

2.5

43.1%

43.1%

43.1%

Maraetai Rd

7.5

14.4

2.0%

8.3

9.2

10.1

57.6%

63.6%

70.3%

Matatoki

7.5

7.5

1.0%

3.6

3.8

4.0

48.0%

50.4%

53.0%

Mikkelsen Rd

7.5

14.4

2.0%

12.8

14.1

15.6

88.9%

98.1%

108.4%

Morrinsville

9.6

1.0%

7.9

8.3

8.7

82.3%

86.5%

90.9%

Paeroa

9.6

1.0%

6.3

6.6

7.0

65.6%

69.0%

72.5%

Piako

7.5

15

1.5%

11.1

12.0

12.9

74.0%

79.7%

85.9%

Putaruru

7.5

14.4

1.0%

9.8

10.3

10.8

68.1%

71.5%

75.2%

Tahuna

1.0%

4.9

5.1

5.4

98.0%

103.0%

108.3%

Tairua

7.5

15

2.0%

5.4

6.0

6.6

36.0%

39.7%

43.9%

Thames

5 / 7.5

20

1.0%

11.3

11.9

12.5

56.5%

59.4%

62.4%

Tirau

7.5 / 10

7.5

1.0%

7.9

8.3

8.7

105.3%

110.7%

116.4%

Tower Rd

7.5

7.5

2.0%

7.3

8.1

8.9

97.3%

107.5%

118.6%

Waharoa

0.0%

6.0

6.0

6.0

120.0%

120.0%

120.0%

Waihi

7.5

15

1.0%

14.6

15.3

16.1

97.3%

102.3%

107.5%

Waihi Beach

2.0%

3.9

4.3

4.8

78.0%

86.1%

95.1%

Waitoa

7.5

22.5

0.0%

10.1

10.1

10.1

44.9%

44.9%

44.9%

Walton

7.5

7.2

1.0%

4.6

4.8

5.1

63.9%

67.1%

70.6%

Whangamata

7.5 / 10

7.5

1.5%

5.1

5.5

5.9

68.0%

73.3%

78.9%

Whitianga

12.5 / 17

25

3.0%

11.2

13.0

15.1

44.8%

51.9%

60.2%

42

281.8

189.1

202.7

217.5

67.1%

71.9%

77.2%

Note: The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings assigned
by this standard.

144

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.19: Wairarapa Zone Substation Transformer Utilisation Data

No of Xfmrs

Xfmr Nameplate Rating

(MVA)

ONAN Capacity

% Growth

2009 98th percentile

Load

2014 98th percentile

Load

2019 98th percentile

Load

% Utilisation 2009

% Utilisation 2014

% Utilisation 2019

Akura

7.5 / 10

14.4

2.4

10.1

11.4

12.8

70.3%

79.2%

89.2%

Awatoitoi

1.3

1.3

1.4

42.0%

44.2%

46.7%

Chapel

11.5 / 23

20.8

13.0

14.3

15.8

62.4%

69.0%

76.2%

Clareville

7.5 / 10

14.4

7.4

7.8

8.2

51.2%

53.9%

56.6%

Featherston

5 / 6.25

3.9

4.1

4.3

77.4%

81.4%

85.4%

Gladstone

1.2

1.2

1.3

115.0%

122.0%

128.0%

Hau Nui

5 / 6.25

0.3

0.3

0.3

6.2%

6.7%

6.9%

Kempton

5 / 6.25

3.4

3.6

3.8

68.4%

72.0%

75.6%

Martinborough

5 / 6.25

3.1

3.4

3.7

61.4%

68.0%

74.9%

Norfolk

5 / 6.25

10

1.5

6.3

6.8

7.3

63.1%

68.0%

73.3%

Te Ore Ore

5 / 6.25

2.5

5.4

6.1

6.9

107.2%

121.4%

137.4%

Tinui

1.5

1.5

0.5

0.9

0.9

0.9

56.7%

58.0%

59.3%

Tuhitarata

2.9

2.6

2.7

2.9

89.0%

93.4%

98.3%

17

93.0

58.7

63.9

69.6

63.1%

68.7%

74.8%

Substation

Note: The ambient temperature and hot spot temperature for which transformers are rated varies. See
Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the
ratings assigned by this standard.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

145

Table 7.20: Wanganui Zone Substation Utilisation Data

Substation

No of Xfmrs

Xfmr Nameplate Rating

MVA

ONAN Capacity
MVA

2009 98th percentile

Load

% Growth

2014 98th percentile

Load

2019 98th percentile

Load

% Utilisation 2009

% Utilisation 2014

% Utilisation 2019

Arahina

10 / 12.5

9.6

6.9

7.2

7.6

71.56%

75.21%

79.06%

Beach Rd

10

9.6

3.5

6.3

7.5

8.9

65.42%

77.71%

92.29%

Blink Bonnie

4.8

2.4

2.5

2.6

50.21%

52.71%

54.38%

Bulls

7.5

7.2

4.7

5.5

6.3

65.42%

75.69%

87.78%

Castlecliff

1x7.5, 1x10

16.8

7.5

8.7

10.1

44.52%

51.67%

59.88%

Hatricks Wharf

7.5/10

9.6

9.5

11.5

14.0

98.65%

120.10%

146.04%

Kai Iwi

4.8

1.7

1.8

1.9

35.63%

37.50%

39.17%

Ohakune

TP Tx

10

1.8

1.9

2.0

17.80%

18.70%

19.70%

Peat St

10/12.5/20

10

2.2

13.3

14.8

16.5

132.80%

148.10%

165.20%

Pukepapa

10 / 12.5

10

1.3

3.0

3.2

3.4

29.80%

31.80%

33.90%

Rata

7.5

7.2

0.5

1.7

1.8

1.8

23.75%

24.31%

24.86%

Roberts Ave

7.5 / 10

7.2

4.2

4.7

5.1

58.47%

64.58%

71.39%

Taihape

10

10

6.4

6.8

7.1

64.20%

67.50%

70.90%

Taupo Quay

10 / 12.5

10

7.8

8.6

9.5

77.50%

85.60%

94.50%

Waverley

TP Tx

1.5

3.5

3.8

4.0

69.40%

75.00%

80.60%

Waiouru

7.5

7.2

0.5

2.8

2.9

3.0

39.03%

39.86%

40.97%

Wanganui East

7.5

7.2

4.7

5.0

5.2

65.83%

69.17%

72.64%

18

146.2

88.1

97.8

108.9

60.25%

66.92%

74.49%

Note: The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings assigned
by this standard.

146

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

7.8.4.

Transformer Utilisation and Age

7.8.5.

The method of determining transformer ratings (IEC354) relies on the transformers

being in good condition. Transformers that are advanced in years should be less
exposed to overloads. Figure 7.8 presents the zone substation transformers by
utilisation and age. The maroon oval highlights the zone transformers that have a
combination of high utilisation and age. It should be borne in mind that utilisation has
been defined using the ONAN transformer rating. In the case of Peat St, the utilisation
based on the OFAF rating is less than 100%. Second transformers are proposed at
Peat St and Manaia. A larger transformer is planned for Hatricks Wharf.

Table 7.21 to Table 7.26 below summarise zone substation capacities and security of
supply levels.
In Manawatu, transformer utilisations are between 19% and 69% with an average of
51%. Five substations do not meet Powercos security standards:
Kairanga, Kelvin Grove and Pascal St upgrading are in the LTDP;
Turitea cannot be upgraded above AA+ because of the wind farm connection
arrangements. This upgrade is in the LTDP;
Upgrading Sanson above its present security levels is considered to be very costly,
but developments at Ohakea could tip the balance, making a second supply route
necessary.

Transformer Utilisation vs Age

140%
Peat St
Utilisation (98%ile load/ONAN capacity)

Zone Substation Capacity and Security Levels

In Taranaki, transformer utilisations are between 7% and 84% with an average of 48%.
All Taranaki substations meet Powercos security standards.

Wanganui East

120%
Waharoa
100%

Hatricks Wharf

In Tauranga, transformer utilisations are between 28% and 90% with an average of
64%. Five Tauranga substations do not meet Powercos security standards: Atuaroa,
Katikati, Kauri Point, Matua and Omokoroa. Plans for upgrading these are in the LTDP.

Tahuna
80%

Manaia

In Valley, transformer utilisations are between 28% and 108% with an average of 63%.
Eleven Valley substations out of twenty four do not meet Powercos security standards.
Of these, Coromandel is considered to be so costly as to not be viable to upgrade.
The other 10 have upgrade plans in the LTDP or MTDP, although the latter will not be
brought fully up to standard in all cases.

60%
40%
20%
0%
0

10
Urban

Suburban

20
Rural

Figure 7.8: Zone Transformer Utilisation and Age.

30

40

50

60

Age (yr)

In Wairarapa, transformer utilisations are between 40% and 109% with an average
of 60%. Six Wairarapa substations do not meet Powercos security standards, and
upgrading them is technically infeasible or considered uneconomic.
In Wanganui, transformer utilisations are between 28% and 124% with an average of 66%.
It should be noted that the class capacity for AAA and AA+ security level substations is
taken to be the capacity of the lowest rated incoming supply plus the load able to be
transferred, or the four-hour rating of the transformer, whichever is the lesser, provided
the load transfer can be carried out in four hours.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

147

Table 7.21: Manawatu Substation Maximum Demands and Transfer Capacities

2009 98th
percentile
Load (MVA)

2009
Maximum
Demand
(MVA)

Substation
Firm
Capacity
(MVA)

Substation
Class
Capacity
(MVA)

98th
Percentile
Load as %
of Class
Capacity

2009
Security of
Supply

Desired
Security
Class

Substation

No of
Xfmrs

No of 33
kV infeeds

Xfmr Nameplate
Rating (MVA)

Xfmr Cont Rating

20deg (MVA)

Xfmr 4 Hour
Rating 20deg
(MVA)

Switchgear firm
Capacity
(MVA)

Alfredton

1.5

1.4

1.8

7.6

0.6

0.6

0.6

0.6

105%

A1

A1

Feilding

16 / 24

21.1

27

22.9

17.4

20.4

21.1

24.1

72%

AAA

AAA

Feeder
Transfer
Capacity
(MVA)

Kairanga

12.5 / 17

15

19.1

22.9

14.8

16.6

15

19.1

78%

AA

AAA

Keith St

11.5 / 23

18.6

23.8

22.9

7.2

13.1

16.0

18.6

23.8

55%

AAA

AAA

Kelvin Grove

12.5 / 17

15

19.1

22.9

13.2

16.3

15

19

69%

AA

AA+

Kimbolton

2.9

3.6

12

0.5

2.1

2.7

0.5

422%

A2

A1

Main St

20

20

24.8

38.1

12

23.8

29.7

20

24.8

96%

AAA

AAA

Mangamutu

7.5

7.5

9.3

7.6

1.6

8.1

8.8

7.5

9.1

88%

AA

AA+

Milson

12.5 / 17

15

19.2

22.9

7.1

14.4

17.0

15

19.2

75%

AAA

AAA

Parkville

2.9

3.7

7.6

1.6

1.7

2.0

1.6

104%

A1

AA

Pascal St

20

19.2

24.6

38.1

8.3

20.5

24.1

19.2

24.6

83%

AAA

AAA

Pongaroa

2.9

3.7

7.6

0.7

0.6

0.9

0.7

84%

A1

A1

Sanson

7.5

7.5

9.6

15.2

4.1

6.6

7.8

7.5

9.6

69%

A2

AA+

Turitea

12.5 / 17

14.5

18.5

22.9

13.9

15.6

14.5

16.5

84%

AA

AAA

Notes: The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings
assigned by this standard.

148

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.22: Taranaki Substation Maximum Demands and Transfer Capacities

2009 98th
percentile
Load (MVA)

2009
Maximum
Demand
(MVA)

Substation
Firm
Capacity
(MVA)

Substation
Class
Capacity
(MVA)

98th
Percentile
Load as %
of Class
Capacity

2009
Security of
Supply

Desired
Security
Class

No of
Xfmrs

No of
33 kV
in-feeds

Xfmr Nameplate
Rating (MVA)

Xfmr Cont Rating

20deg (MVA)

Xfmr 4 Hour
Rating 20deg
(MVA)

Switchgear firm
Capacity
(MVA)

Bell Block

16 / 24

21.1

27

22.9

16.9

19.2

21.1

25.1

67%

AAA

AAA

Brooklands

16 / 24

21.1

27

38.1

12

17.0

23.0

21.1

27

63%

AAA

AAA

Substation

Feeder
Transfer
Capacity
(MVA)

Cambria

10

9.6

12.3

22.9

13.1

16.7

9.6

12.3

107%

AAA

AAA

Cardiff

2.9

3.7

7.6

1.5

1.2

1.4

1.5

83%

A1

A1

City

11.5 / 23

20.4

26.1

22.9

18.5

22.3

20.4

26.1

71%

AAA

AAA

Cloton Rd

10.0 / 13.0

11.4

14.6

22.9

3.5

7.6

9.4

11.4

14.6

52%

AAA

AA+

Douglas

6.4

22.9

1.9

1.3

1.8

1.9

70%

A1

AA

Eltham

7.5 / 10

8.8

11.3

15.2

15

9.4

10.4

8.8

11.3

84%

AAA

AA+

Inglewood

6.2

14.2

4.3

5.7

72%

AA+

AA

Kaponga

2.5

2.4

7.6

2.9

3.2

2.4

96%

AA

A1

Kapuni

5.8

7.1

22.9

1.5

7.1

9.6

5.8

7.1

100%

AAA

AA+

Livingstone

2.5

2.4

3.1

7.6

2.5

2.8

2.4

2.4

105%

AA

AA

Manaia

7.5

7.2

9.2

22.9

5.8

6.8

116%

A1

AA+

McKee

1.3

1.2

1.5

7.6

1.0

1.0

1.2

1.5

63%

A1

AA

Motukawa

2.5

2.4

4.6

1.1

1.0

1.4

1.1

95%

A2

AA

Ngariki

5 / 6.25

5.5

7.6

2.2

2.4

72%

AA

AA

Pohokura

10 / 12.5

10

12.8

71.4

1.4

1.9

12.5

12.5

12%

AA+

AA+

Pungarehu

3.0 / 4.0

3.5

4.5

15.2

2.9

5.0

3.5

4.5

65%

AA

A1

Tasman

4.8

6.1

22.9

6.1

6.8

4.8

6.1

99%

AA

AA+

Waihapa

1x1.25, 1x2.5

1x1.2, 1x2.4

1x1.5, 1x3.1

7.6

0.6

1.3

1.3

2.4

1.5

84%

A2

AA

Waitara East

7.9

10.1

23.8

4.6

5.6

7.9

10.1

46%

AA

A1

Waitara West

6.4

23.8

4.3

4.3

5.3

6.4

67%

AA

AA

Whareroa

10

9.6

12.3

7.6

3.8

3.6

5.3

3.8

96%

AA

A1

TP Moturoa

11.5 / 23

13

17.8

21.0

AAA

AAA

Note: The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings assigned
by this standard.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

149

Table 7.23: Tauranga Substation Maximum Demands and Transfer Capacities

2009 98th
percentile
Load (MVA)

2009
Maximum
Demand
(MVA)

Substation
Firm
Capacity
(MVA)

Substation
Class
Capacity
(MVA)

98th
Percentile
Load as %
of Class
Capacity

2009
Security of
Supply

Desired
Security
Class

No of
Xfmrs

No of 33
kV infeeds

Xfmr Nameplate
Rating (MVA)

Xfmr Cont Rating

20deg (MVA)

Xfmr 2 Hour
Rating (MVA)

Transformer 4
Hour Rating
(MVA)

Switchgear firm
Capacity
(MVA)

Aongatete

5.8

8.3

7.2

22.9

5.0

4.3

6.3

7.2

12.2

35%

AA

A1

Atuaroa

12.5 / 17

15

22

18.6

38.1

5.0

5.8

6.8

5.0

115%

AA

AAA

Substation

Backup
Capacity
Available
(MVA)

Hamilton St

16 / 24

21.1

31

26.2

38.1

6.0

11.6

14.0

26.2

32.2

36%

AAA

AAA

Katikati

10 / 12.5

11

15.7

13.6

38.1

4.0

5.7

7.0

4.0

142%

A1

AA

Kauri Point

7.4

6.4

7.6

2.0

2.0

2.7

2.0

99%

A2

A1

Matua

5.8

8.5

7.4

22.9

3.5

7.9

9.3

3.5

225%

A2

AA

Omokoroa

10 / 12.5

10.6

15.2

13.2

22.9

1.5

7.1

9.0

13.2

14.7

48%

A2

AA

Otumoetai

10/12.5, 12.5/15

10.6, 13.2

15.6, 19.6

13.4, 13.6

22.9

4.0

12.6

17.5

13.4

17.4

73%

AA

AA

Papamoa

11.5/23

20.4

30

23.8

22.9

4.0

18.7

24.2

23.8

27.8

67%

AAA

AAA

Pongakawa

7.2

6.2

22.9

3.2

4.6

5.5

3.2

144%

A1

A1

Te Puke

16 / 24

21.1

31

26.2

22.9

3.0

17.0

18.9

26.2

29.2

58%

AAA

AAA

Triton

11.5 / 23

18.6

26.6

23.1

22.9

2.0

20.1

24.1

23.1

25.1

80%

AAA

AA

Waihi Rd

16/24

21.1

31

26.2

38.1

5.0

13.9

15.6

26.2

31.2

45%

AAA

AAA

Welcome Bay

11.5 / 23

20.4

30

23.8

22.9

2.0

14.8

19.1

23.8

25.8

57%

AA

AA

Note:
1) The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating standard 393S041.
2) ONAN capacities reported are the ratings assigned by this standard.
3) Definition of Substation Class Capacity :- Station firm Capacity (MVA) plus Backup capacity (MVA)

150

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.24: Valley Substation Maximum Demands and Transfer Capacities

Substation

No of
Xfmrs

No of
66kV or
33kV
in-feeds

Baird Rd

Browne St

Coromandel

Xfmr 2 Hour Transformer 4 Hour

Rating (MVA)
Rating (MVA)

Switchgear Firm
Capacity
(MVA)

Backup
Capacity
2009 98th
Available
Percentile
(MVA) Load (MVA)

2009
Maximum
Demand
(MVA)

Substation
Firm
Capacity
(MVA)

Substation
Class
Capacity
(MVA)

98th
Percentile
Load as %
of Class
Capacity

2009
Security of
Supply

Desired
Security
Class

Xfmr Nameplate
Rating (MVA)

Xfmr Cont Rating

20deg (MVA)

4.8

7.1

6.1

22.9

5.0

6.8

9.9

5.0

136%

AA

AA

7.5

10

14.7

12.8

22.9

3.0

6.1

10.9

3.0

203%

A2

AA

7.4

6.4

22.9

0.0

3.0

4.0

0.0

none

A2

AA

Farmers Rd

5.8

7.4

6.4

22.9

2.5

6.0

7.0

6.4

8.9

67%

AA

AA

Kerepehi

7.5 + 5

8.6 + 5.0

12.3 + 8.2

10.7 + 7.1

22.9

3.0

6.6

8.0

3.0

220%

A2

A1

Lake Rd

7.2

6.2

22.9

2.4

4.5

5.3

2.4

187%

A1

A1

Lakeside + Midway

3+3

2.9 + 2.9

4.1

3.6

n/a

n/a

2.5

5.2

n/a

n/a

n/a

n/a

n/a

Maraetai Rd

7.5

7.2

10.6

9.2

22.9

4.0

7.9

9.5

4.0

198%

A2

AA+

Matatoki

7.5

5.8

7.9

22.9

3.0

3.4

4.9

3.0

112%

A2

AA+

Mikkelsen Rd

12.5/17

15

22

20

22.9

3.7

12.1

13.3

20

23.7

51%

AA

AA

Morrinsville

10

8.7

22.9

3.0

7.5

9.5

3.0

250%

AA

AA

Paeroa

4.8

6.9

6.0

22.9

3.0

6.0

8.0

9.0

67%

AA

AA

Piako

7.5

7.5

10.7

9.3

22.9

4.0

10.6

12.7

9.3

13.3

79%

AA

AA

Putaruru

7.5

8.3

12.1

10.6

22.9

3.5

9.3

10.8

10.6

14.1

66%

A2

AA

Tahuna

10.3

9.0

22.9

3.0

4.7

5.7

3.0

155%

A2

A2

Tairua

7.5

7.5

10.7

9.3

22.9

1.0

5.1

7.6

1.0

509%

A2

AA

Thames T1&T2

7.5

7.5

11.1

9.9

22.9

6.1

10.7

14.0

6.1

176%

AA

AA

Thames T3

7.4

6.4

22.9

6.9

2.6

3.4

6.9

38%

AA

AA

Tirau

7.5/10

8.8

12.1

10.7

22.9

2.8

7.5

8.1

2.8

269%

A2

AA+

Tower Rd

7.5

8.6

11.8

10.5

22.9

3.0

6.9

8.8

3.0

230%

A2

AA

Waharoa

7.5

7.5

10.7

9.3

38.1

3.0

5.7

6.6

3.0

188%

AA

AA

Waihi

7.5

10

14.3

12.4

22.9

2.0

13.9

15.6

12.4

14.4

97%

AA

AA

Waihi Beach

7.4

6.4

22.9

2.0

3.7

5.5

2.0

185%

A1

A1

Waitoa

7.5

10

14.7

12.8

22.9

0.0

9.6

10.6

20

20.0

48%

AAA

AAA

Walton

7.5

7.2

10.3

8.9

22.9

3.5

4.3

5.2

3.5

124%

A1

A1

Whangamata

7.5/10 + 5

10 + 5

14.7 + 7.2

12.8 + 6.2

22.9

2.0

4.9

8.5

2.0

243%

A2

AA

Whitianga

12.5 / 17

15

22

20

22.9

1.5

10.7

14.9

1.5

710%

A2

AA

Note:
1) The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating standard 393S041.
2) ONAN capacities reported are the ratings assigned by this standard.
3) For Tairua, it is assumed that the 66kV supply from Coroglen cannot be used because of thermal constraints through the Kauaeranga Valley.
4) Definition of Substation Class Capacity :- Station firm Capacity (MVA) plus Backup capacity (MVA)

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

151

Table 7.25: Wairarapa Substation Maximum Demands and Transfer Capacities

2009 98th
percentile
Load (MVA)

2009
Maximum
Demand
(MVA)

Substation
Firm
Capacity
(MVA)

Substation
Class
Capacity
(MVA)

98th
Percentile
Load as %
of Class
Capacity

2009
Security of
Supply

Desired
Security
Class

No of
Xfmrs

No of
33 kV
In-feeds

Xfmr Nameplate
Rating (MVA)

Xfmr Cont Rating

20deg (MVA)

Xfmr 4 Hour
Rating 20deg
(MVA)

Switchgear firm
Capacity
(MVA)

Akura

7.5 / 10

8.5

10.9

22.9

10.1

11.3

8.5

10.9

93%

AA+

AA+

Awatoitoi

3.7

22.9

1.2

1.3

1.3

1.2

105%

A2

A2

Chapel

11.5 / 23

18.6

23.8

22.9

13.0

18.9

18.6

23.8

55%

AA+

AAA

Clareville

7.5 / 10

8.5

10.9

22.9

7.4

10.0

8.5

8.5

87%

AA

AA+

Featherston

5 / 6.25

5.5

22.9

2.5

3.9

4.6

2.5

155%

A2

AA

Gladstone

1.2

22.9

0.7

1.2

1.2

0.7

166%

A2

A1

Hau Nui

5 / 6.25

5.5

7.6

0.3

0.3

A2

AA

Kempton

5 / 6.25

5.5

22.9

2.8

3.4

5.0

2.8

122%

A2

AA

Martinborough

5 / 6.25

5.5

22.9

2.3

3.1

4.5

2.3

133%

A1

AA

Norfolk

5 / 6.25

5.5

22.9

2.5

6.3

6.3

5.5

90%

AAA

AA+

Te Ore Ore

5 / 6.25

5.5

6.8

22.9

5.4

6.4

107%

AA

AA

Tinui

1.5

1.3

1.7

15.2

0.8

0.9

0.9

0.8

106%

A2

A2

Tuhitarata

2.9

3.7

11.4

1.5

2.6

2.6

1.5

173%

A2

AA

Substation

Feeder
Transfer
Capacity
(MVA)

Note: The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings assigned
by this standard.

152

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.26: Wanganui Substation Maximum Demands and Transfer Capacities

Substation

No of
33 kV
In-feeds

No of
Xfmrs

Xfmr Nameplate
Rating (MVA)

Xfmr Cont Rating

20deg (MVA)

Switchgear firm
Capacity
(MVA)

Xfmr 4 Hour
Rating 20deg
(MVA)

Feeder
Transfer
Capacity
(MVA)

2009 98th
percentile
Load (MVA)

2009
Maximum
Demand
(MVA)

Substation
Firm
Capacity
(MVA)

Substation
Class
Capacity
(MVA)

98th
Percentile
Load as %
of Class
Capacity

2009
Security of
Supply

Desired
Security
Class

Arahina

10 / 12.5

10.6

13.6

22.9

7.2

6.9

8.7

7.2

95%

AA

AA+

Beach Rd

10

9.6

12.5

22.9

4.2

6.3

8.1

4.2

150%

A2

AA+

Blink Bonnie

4.8

6.1

22.9

2.9

2.4

4.3

2.9

83%

AA

AA

Bulls

7.5

7.2

9.2

22.9

3.6

4.7

5.6

3.6

131%

A2

AA+

Castlecliff

1x7.5, 1x10

1x7.2, 1x9.6

1x9.2, 1x12.3

22.9

2.4

7.5

11.0

7.2

9.2

81%

AA

AA+

Hatricks Wharf

7.5/10

8.8

11.3

22.9

9.5

11.9

118%

AA

AA+

Kai Iwi

4.8

6.1

15.2

2.1

1.7

2.2

2.1

81%

A2

AA

Peat St

10/12.5/20

16.2

20.7

22.9

7.8

13.3

16.0

7.8

170%

AA

AAA

Pukepapa

10 / 12.5

8.8

11.3

22.9

6.5

3.0

8.5

6.5

46%

AA

A1

Rata

7.5

7.5

9.6

7.6

1.7

2.1

86%

A2

A1

Roberts Ave

7.5 / 10

7.2

9.2

22.9

3.9

4.2

9.7

3.9

108%

AA

AA

Taihape

10

9.6

13.6

22.9

0.7

6.4

6.4

0.7

917%

A1

AA+

Taupo Quay

10 / 12.5

11

14.1

22.9

7.8

11.4

129%

AA

AA+

Waiouru

7.5

7.2

9.2

15.2

0.5

2.8

3.4

0.5

562%

A2

AA

Wanganui East

7.5

7.2

9.2

22.9

3.8

4.7

6.5

3.8

125%

A2

AA+

TP Ohakune

1.8

2.3

A2

A1

TP Waverley

3.5

3.9

A2

A1

Note: The ambient temperature and hot spot temperature for which transformers are rated varies. See Powercos Zone Substation Transformer Rating Standard 393S041. ONAN capacities reported are the ratings assigned
by this standard.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

153

7.8.6.

Manawatu Network Descriptions

The following paragraphs provide a commentary of the supply arrangements covering

network adequacy for the Manawatu subregion by each zone substation, along with
the individual development options.
Alfredton, Parkville and Pongaroa substations supply areas of northern Wairarapa.
They are connected in a ring and have A1 security. Each consists of a single
transformer that has sufficient installed capacity to meet forecast load growth. There
are sufficient interconnections between these substations and Mangamutu for mutual
support. Alfredton, Parkville and Pongaroas futures are under consideration and they
may be disestablished.
Bunnythorpe GXP supplies the western side of Palmerston North and the country
towards the Rangitikei River. Powerco owns the 33kV switchgear at Bunnythorpe. This
switchgear is aged and in need of replacement.
Feilding substation supplies Feilding and the surrounding rural area, commercial,
industrial, residential and rural load. It has two transformers with a capacity of 21.1MVA,
which contribute to AAA security. Its capacity will be adequate for the planning period,
provided the Manawatus District Council Long-Term Plan of 25 years-plus, showing
areas available for about 3000 subdivisions, does not come to fruition. Upgrading a
small section of existing and constructing a third Bunnythorpe-Feilding 33kV circuit is
likely to be carried out in the early of planning period. New 33kV switchgear is planned
at the same time.
Kairanga substation supplies residential consumers in South Western Palmerston
North, the rural load to the south east of Palmerston North and the Fonterra milk
factory at Longburn. It has two 15MVA transformers and the load is likely to exceed a
single transformer capacity near the end of planning period. Two new transformers are
planned for 2023. At 33kV, Kairanga and Pascal St substations are connected on an
open ring from Linton GXP. Kairangas present security level is AA, and an upgrade of
communication link for protection signal is in progress to allow operation with the ring
closed, providing AAA security
Keith St substation supplies industrial, commercial and residential load in Palmerston
North. It also provides support for Main St substation. The transformers were upgraded
in 2003 to 18.6MVA. It has AAA security. Load has been transferred from Main St
to Keith St to better utilise transformer capacity. Its capacity will be adequate for the
planning period. The load on the 33kV feeders into Keith St is near to the capacity. This
is being monitored and some sections of cable will need to be replaced.
Kelvin Grove substation supplies the commercial, industrial and residential load in
Palmerston North and the rural load to the north. Its single transformer capacity Is likely
to exceed near the end of the planning period. Two new transformers are planned for

154

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

2022. Its present security level is AA. Upgrading to AAA security is considered to be
technically difficult but AA+ is achievable. Development in the area is likely to require
either upgrading of the zone substation or a new zone substation in the planning period.
Longburn is a disestablished single transformer zone substation through which the
Linton Kairanga line passes. Its transformer and switchgear were relocated when
the dairy factory load for which it was established was shutdown. Re-establishment
is being considered with potential increase in loads at Linton Army Camp, NZ
Pharmaceuticals and other network configuration.
Kimbolton substation supplies the settlement of Kimbolton and the surrounding rural
area. It has sufficient installed transformer capacity to the end of the planning period.
Backfeeding from Feilding is possible and a regulator site has been installed to achieve
this. Its security level is A2. A neutral earthing compensator is being trialled to minimise
outages due to earth faults.
Main St substation supplies the Palmerston North CBD. It has a new 11kV
switchboard, and a new 33kV switchboard is planned for 2008. It has AAA security. It
has two 20MVA transformers and the load has exceeded a single transformer rating.
Some load has already been transferred from Main to Keith and Pascal to better utilise
spare transformer capacity. Further transfer to Keith St will be investigated. A new zone
substation at the south end of the CBD (Fitzherbert) is anticipated in the planning
period.
Mangamutu substation supplies Pahiatua, a Fonterra dairy factory and the
surrounding rural area. Load growth largely depends on dairy industry load. Fans were
fitted to the transformers in 2006 to increase capacity but this may be insufficient
for the planning period. Transformer rotation plan includes replacing the present
transformers with two 10 MVA units. Short sections of 33kV cable will need to be
replaced in the near future. Its security level is AA.
Milson substation supplies the industrial, commercial and residential load in western
Palmerston North, including the airport. Its security level is AAA. It has two 15MVA
transformers and its capacity will need to be increased near the end of planning period
or load transferred to a new zone substation, which will also reduce load off Kelvin
Grove. Two new transformers are planned for 2020.
Parkville substation supplies the town of Ekatahuna and the surrounding rural area. It
has one 2.9MVA autotransformer. Its security level is A2. There has been a motel and
other amenities mooted for Ekatahuna. Should a 300-500kVA load eventuate, as has
been forecast, the MD for 2022 would be achieved with just this one major load.
Pascal St substation supplies the industrial, commercial and residential load in central
Palmerston North. Its security level is AAA and has two 19.2MVA transformers. The
load will exceed a single transformer rating in the early of planning period with no load

Return to Index

transfer. Fitzherbert new zone substation at the south end of the CBD will alleviate load
from Pascal St. and no new transfomers will be requirred in the planning period.
Pongaroa substation is a small rural substation supplying the rural load in the north
eastern Wairarapa area. There is one 2.9MVA autotransformer and its security level
is A1. Pongaroa can be supplied via 11kV from Mangamutu substation, although the
voltage is marginal under some conditions. Its future is under consideration.
Sanson substation supplies Sanson township, Ohakea Air Force base and the
surrounding rural area. The single circuit 33kV supply limits its security level to A2 and
upgrading is not considered economically justified. Sanson has two 7.5MVA transformers
and, with increased loads, these are operating at peak times past their firm capacity.
Transformer rotation plan includes changing out the transformers with two 7.5/10MVA
units in 2013. Major load increases from Ohakea Air Force base may require a new small
zone substation in the area and linking up with Bulls substation could eventuate.
Turitea substation supplies Massey University, Linton Military Camp, industrial,
residential and rural load to the south east of Palmerston North. It has two 12.5MVA
transformers. New Fitzherbert zone substation south of the CBD will alleviate load from
Turitea when a link into Massey University and Summerhill is established. There are new
loads that are requiring a new feeder from Turitea to split Linton feeder into two. The
Linton feeder is affected and further growth south-east of Turitea is expected. Turitea
is supplied by one 33kV line from Linton GXP. A second line has been considered for
providing AAA security but the existing line from Linton is short and rarely faults and
there is little economic justification for it.
Tararua Wind Power (TWP), not owned by Powerco, has been configured as two
groups of turbines of approximately 34MW, each in a north and south configuration and
supplying Kelvin Grove and Turitea substations. At times the Northern generation supply
can also be connected into Keith St substation. They are connected into Powerco by a
33kV cable network. Its capacity may be increased during the planning period.
7.8.7.

Taranaki Network Description

The following paragraphs provide a commentary of the supply arrangements covering

network adequacy for the Taranaki subregion by each zone substation, along with the
individual development options.
Bell Block substation supplies the Bell Block industrial area, and the nearby residential
and surrounding rural areas. The area offers flat industrial-zoned sites, conveniently
sited for access to the highway, port and rail at reasonable cost, so further industrial
load growth is likely. Its security level is AAA and its capacity is expected to be
adequate for the planning period. With load growth in the Waiwhakaiho area and a
new Katere zone substation being established, upgrading the existing 33kV lines from
Carrington is likely in the planning period.

Return to Index

Brooklands Substation supplies the southern residential area of New Plymouth and
the rural area to the south of the city. There is significant residential development going
on in the area, and additional residential sections are being subdivided. It is a new
substation, with AAA security level and adequate capacity for the planning period. To
improve the substation utilisation, network reconfiguration between Brooklands, City
Sub, Moturoa and the new Katere substation will be undertaken.
Cambria substation supplies the commercial and residential areas of Hawera and
the immediate surrounding rural area. Its security level is AAA. It has seen unpredicted
load growth in recent years and requires upgrading. The plan is to replace present 2 x
10 MVA transformers with 2 x 16/24 MVA refurbished transformers in 2010. This will
provide adequate single transformer capacity to meet the load growth during planning
period.
Cardiff substation supplies the rural area to the west of Stratford and provides support
for Kaponga. With a security level of A1 it has a single 2.9MVA transformer, which is
expected to be adequate for the planning period.
City substation supplies the central business district and surrounding residential
area of New Plymouth. There is some building activity, but there is capacity for further
development in the central business district where a number of retail and office
premises are vacant. It has two 20.4MVA transformers and a security level of AAA. The
33kV cables supplying were replaced in 2008.
Cloton Rd substation supplies the commercial and residential areas of Stratford and
the surrounding rural area. The population is static, with little building activity, although
the dairy load is growing. Its security level is AAA and its capacity is expected to be
adequate for the planning period.
Douglas substation supplies consumers to the east of Stratford and beyond
Whangamomona. With a security level of A1, it has a single 5MVA transformer, which is
expected to be adequate for the planning period.
Eltham substation supplies Eltham town and the surrounding rural area. A significant
part of its load is taken by Riverlands freezing works and the Fonterra dairy products
factory. Expansion of the dairy foods factories will result in a load increase. Its security
level is AAA but its class capacity is exceeded and load reduction would be needed in
the event of a sustained outage. New transformers are included in the planning period.
Inglewood substation supplies Inglewood town and the surrounding rural area. Its
security level is AA+ and its capacity is expected to be adequate for the planning period.
Kaponga substation supplies Kaponga and the surrounding rural area. Its security
level is AA and its capacity is marginal but low load growth makes reinforcement in the
planning period unlikely.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

155

Kapuni substation supplies the rural area around Kapuni and a single large load,
Balance Agri Nutrients. Its security level is AAA, but will require reinforcement in the
planning period. It previously took co-generation load from the Natural Gas Corporation
Kapuni site. The generation supplies the Fonterra lactose plant.
Livingstone substation supplies Patea and the surrounding area. Load growth is
static. Its security level is AA. It is loaded to its firm capacity, but by transferring some
load to Whareroa, its capacity is expected to be adequate for the planning period.
Manaia substation supplies Manaia and the surrounding area. One industrial
consumer, Yarrows Bread, takes a significant part of its load. It is a single transformer
substation, backed up by 11kV supply from Kapuni, but the backup is inadequate at
times. Its security level is A1. A new 33kV switchboard was installed in 2005, and a
second transformer and 33kV line into Manaia are in the planning period but subject
to growth, which is largely dependent on Yarrows Bread and, possibly, Taranaki ByProducts. Transformer rotation plan includes second transformer in 2011.
Mamaku Rd is a third-party-owned zone substation that supplies the Synfuels plant
near Waitara. Supply is via two 33kV overhead lines owned by Powerco from Huirangi
GXP.
McKee substation supplies the McKee petroleum production station and the
surrounding rural area. Its security level is A1 and its capacity is expected to be
adequate for the planning period. However, the transformers are around 50 years
old and in a deteriorated condition. They will require replacement during the planning
period. Because of limited space in the substation yard, it is planned for a single
transformer zone substation. A new 5 MVA transformer is planned in the early of
planning period. Backup supply can be provided at 11kV. McKee Production station
now has an installed capacity of 2MW generation at 11kV and 9MW generation at
33kV.
Motukawa substation is located at Trustpowers Motukawa power station site, and it
supplies the surrounding rural area. Its security level is A2 and its capacity is expected
to be adequate. Load growth is minimal. It forms a 6.6kV network, which may be
upgraded to 11kV in the planning period.
Moturoa GXP 11kV is owned by Transpower, although Powerco owns some of the
equipment in it and the 33kV cables supplying it. Powerco also has an interest in
the transformers, having paid GB2,100 in 1971 to have 11.5/23MVA transformers
installed instead of 10MVA units. Moturoa substation supplies the port area of New
Plymouth and the western part of the New Plymouth residential area. It also supplies
the rural area westward to Okato. Its security level is AAA and its capacity is adequate
for the planning period. Discussions have been held with Transpower regarding
Powerco purchasing this substation. It may require reinforcement in the planning period
but network reconfiguration between Brooklands, City, the new Katere and Moturoa

156

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

substations, as well as a possibility of establishing a zone substation at Oakura, is likely

to postpone any need for reinforcement in the planning period.
Ngariki substation is on Ngariki Rd, between Opunake and Pungarehu. Its primary
purpose is to provide a backup supply to the Maui Gas Terminal and to Tasman
substation if a transformer there is out of service. It supplies the surrounding rural area.
Its security level is AA and its capacity is expected to be adequate for the planning
period, especially if the gas terminal ceases production.
Oakura substation is a proposed new substation that will take the place of an 11kV
switching station. The area supplied by this feeder is growing sufficiently to exceed the
rating of an 11kV feeder. The 11kV line is rated at 33kV. A zone substation is likely to be
established during the planning period.
Pohokura substation provides a dedicated supply to the Pohokura natural gas plant.
Its security level is AAA and its capacity will be adequate for the planning period.
Pungarehu substation supplies Pungarehu and the surrounding rural area. It used to
supply a dairy factory, which may be reopened. No reinforcement is planned unless the
dairy factory proceeds. Its security level is AA.
Tasman substation supplies Opunake, the surrounding rural area and the Shell Todd
Oil Services Maui Gas Terminal at Oaonui. Its security level is AA and its capacity is
expected to be adequate for the planning period. It has two 4.8MVA transformers, to
which fans could be retrofitted if necessary. Its security level is AA with 3MVA of load
able to be transferred to Ngariki substation. Uncertainty surrounds the future loads
of the STOS Oaonui Production Station. The load exceeds the single transformer
rating but STOS 1.5MVA load can be transferred to Ngariki remotely. So its capacity is
expected to be adequate for the planning period.
Waihapa substation is exclusively for supplying the Waihapa petroleum production
station. It has two transformers - a 2.1MVA and a 2MVA. Its security level is A2. Its
load is not expected to increase. The 1.25MVA transformer manufactured in 1957 has
serious corrosion on the tank and a new transformer is planned.
Waitara East substation supplies the rural area to the east of Waitara and all the area
north towards Mt Messenger. Its security level is AA. Little load growth is expected and
its capacity is expected to be adequate for the planning period.
Waitara West substation supplies the Waitara town area and some nearby rural areas.
Its security level is AA and its capacity is expected to be adequate for the planning
period as a proposed large load requiring reinforcement has not materialised.
Whareroa substation is located on the NewZealand Milk Products Dairy Factory
site. It previously supplied and accepted generation from the Kiwi Dairy Factory, and
now supplies the rural area to the south of Hawera. There is co-generation from an oil
and gas well site to the south of the substation. The substation is configured for two

Return to Index

transformers but only one is now installed. Its security level is AA, but it is loaded to
its class capacity. It has a transformer rating in excess of the load and future growth
requirements. The Whareroa transformer is on the transformer rotation schedule.
7.8.8.

Tauranga Network Description

The following paragraphs provide a commentary of the supply arrangements covering

network adequacy for the Tauranga subregion by each zone substation along, with the
individual development options.
Aongatete substation provides supply to Aongatete, Matakana Island, and the
surrounding rural area. There are a number of cool stores and sawmills in the area. Its
security level is AA. Its security level is AA and its capacity is expected to be adequate
for the planning period. Its 33kV lines are being upgraded progressively.
Atuaroa substation is a new zone substation that supplies the growing industrial load at
the north end of Te Puke. It has AA security at present, but this will be increased when a
second transformer is installed and second 33kV cable laid, depending on load growth.
Greerton switching station links the Kaimai Hydro scheme with Tauranga GXP,
Aongatete and Otumoetai 33kV rings. The security of Greerton is important given the
importance and number of customers it supplies.
Hamilton St substation supplies Tauranga City CBD, Sulphur Point and the Port of
Tauranga. Its security level is AAA and its capacity will be adequate for the planning
period provided that the incoming 33kV ring is upgraded. A new zone substation at
Sulphur Point is proposed for supplying businesses in this area, for backing up Matua
and the supply to the CBD.
Katikati substation is a new zone substation that supplies the town of Katikati and the
surrounding rural area. Its security level is AA and a second transformer is planned for
installation in 2012.
Kauri Point substation supplies the area between Katikati and Waihi Beach, including
some small beach settlements. A voltage regulator is located at Kauri Point substation
to provide back up for parts of the 11kV network. Its security level is AA.
Matapihi substation is under construction to supply the Mt Maunganui (Bayfair) area.
It is located adjacent to Transpowers GXP and will have two 16/24MVA transformers. It
will also house the SCADA hub for the Tauranga subregion, which is being installed as
part of the SCADA Master Station replacement project.
Matua substation supplies the Tauranga suburban load, with some load growth
expected to come from infill housing. It is loaded beyond its class capacity. AA security
is desired but, due to the single supply, only A2 is available. An 11kV reinforcement is
planned to restore class capacity.

Return to Index

Omanu substation has been proposed for sometime, this new substation will provide
support to Triton Substation. A contract has been an issue for the civil work with the
construction of this new substation, some preliminary site works have been started.
Omokoroa substation supplies the area north of Tauranga, a mix of rural, lifestyle
blocks and urban residential consumers. Load growth for this area is significant, with
the District Council signalling the possibility of more urban development. AA security is
desired but, due to the single transformer, only A2 is available. A second transformer
was installed in 2009. The 11kV switchboard was replaced when the second
transformer banks were installed. The protection arrangements for the incoming 33kV
lines are difficult to set discriminatively. New zone substations at Apata may be required
if the presently forecast load from horticulture in the area occurs, and in Omokoroa
town itself to cater for likely population growth.
Otumoetai substation supplies the Otumoetai and Bethlehem areas of Tauranga.
Steady load growth is forecast for this area. Its security level is AA and its capacity is
expected to be adequate for the planning period, although the 11kV switchgear is aged
and due for replacement in 2009. A new zone substation is proposed at Bethlehem
to cater for load growth in the area, improve reliability of existing feeders and provide
backup supply options to the other side of the Wairoa River.
Papamoa substation supplies the Papamoa area. Residential growth is continuing
at a strong rate, and the load has increased rapidly. Its security level is AAA. It will
exceed its firm capacity in 2009 and reinforcement options are being evaluated.
Papamoa substation will require relocating in the near future to accommodate highway
extensions. Substations at Te Maunga and Papamoa East are proposed to reinforce
Papamoa and to cater for the high levels of load growth.
Pongakawa substation supplies rural customers in the Pongakawa area. Its security
level is AA and its capacity will be adequate for the planning period. However, the
limited backup capacity on the distribution network means that a second zone
substation at Paengaroa is planned. the new substation at Paengaroa will be
commissioned in 2011.
Tauranga CBD is supplied by a 33kV ring from Greerton and Tauranga GXP. The
capacity of each of the circuits in this 33kV ring is between 25 and 28MVA, based
on sandy soil. The load is roughly the same as firm capacity. A proposal to lay new
transformer feeder circuits to Waihi Rd and new cables between Greerton and
Tauranga GXP in FY10 will reduce the loading on this ring. Another circuit runs between
Hamilton St and Triton substations (Bridge Cable), however use of this circuit to supply
the CBD from Mt Maunganui or Triton from Tauranga means a drop to N security levels.
Tauranga 11kV GXP is a Transpower supply point that supplies the Gate Pa area and a
large rural area past Pyes Pa and the Kaimai area. Supply is via 110/11kV transformers,
with a rating of 40MVA. This means that plenty of capacity is available but the fault level

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

157

is high and there are practical difficulties with laying new feeder cables along Cameron
Rd. To supply the new subdivision, a new zone substation is proposed at Pyes Pa. This
will initially be supplied from Tauranga 11kV GXP at 11kV and later be converted to 33kV.
Te Puke substation supplies Te Puke and the surrounding rural area including
Rangiuru freezing works. Its security level is AAA and, with the recent establishment of
Atuaroa substation, its capacity will be adequate for the planning period. Nevertheless,
the distribution network has limited backup capacity and a new zone substations is
proposed at Rangiuru to supply the proposed Rangiuru Business Park, an industrial
subdivision. The proposed Paengaroa zone substation will also assist with backing up
the feeders supplied from Te Puke.
Triton substation supplies a mix of industrial and urban customers in Mount
Maunganui. The industrial load at the Port of Tauranga and the surrounding area is
growing steadily. Its security level is AAA although it will require reinforcement by 2013.
The new Omanu substation, which is planned for 2010, will reduce the load on Triton.
Waihi Road substation supplies urban and commercial load in the centre of Tauranga.
Load is expected to increase, partly due to infill housing and intensification. Its security
level is AAA and its capacity will be adequate for the planning period.
Welcome Bay substation supplies the Welcome Bay area. Its security level is AA and
its capacity will be adequate for the planning period. Because of the terrain, distribution
feeders follow long routes to cover short distances as the crow flies and customer
counts per feeder are high. A new zone substation at Poike is proposed to cater for
growth and reduce the customer count per feeder.
7.8.9.

Valley Network Description

The following paragraphs provide a commentary of the supply arrangements covering

network adequacy for the Valley subregion by each zone substation, along with the
individual development options.
Baird Road substation supplies the northern part of Tokoroa, including the CBD and
the farming area just to the north of Tokoroa. It has AA security, but is loaded to its
class capacity. Dairy conversions from pine plantation are occurring in this area.
Browne Street substation supplies the western side of Matamata, including the
CBD and the rural area towards Cambridge. It is loaded beyond its class capacity and
requires support from Tower Rd substation. Security is A2. A project to install a second
transformer at Browne St has been started. Commission of this second transformer
should be completed June 2010.
Coroglen switching station comprises two remotely operable 66kV switches that can
provide an alternative source of supply for Whitianga and Coromandel.

158

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Coromandel peninsula is supplied from Kopu GXP via two 66kV circuits. One of the
circuits goes to Coroglen through the Kauaeranga valley. The other supplies Tairua,
and then crosses over to join the other circuit at Coroglen. From Coroglen, a single
circuit supplies Whitianga and Coromandel. This is a rugged area to which access is
difficult. The lines are now 50 years old and in need of renewal. Given the load growth
in the area, the lines have recently been uprated to work at 70 degrees. A programme
of reconductoring and reconstruction is under way. A second line from Coroglen to
Kaimarama is going through a Notice of Requirement process and subject to easement
negotiations. This will see two lines feeding a proposed switching station at Kaimarama.
Coromandel substation is a single transformer substation, which supplies
Coromandel and the surrounding areas. There is no interconnection via the 11kV
network with any other substations. Major maintenance generally requires supply
interruptions, although generators have been used to maintain supply. Supply is via a
single 66kV line. AA security is desired, but providing a supply security greater than A2
is not presently a viable proposition.
Farmer Road substation supplies two major industrial customers plus the dairy
farms in the immediate area. Both of these major customers, Tatua Dairy and Wallace
Corporation have indicated that their loading requirements are likely to increase. AA+
security is desired, but due to a single 33kV supply, only AA is available. Farmer Road
is supplied from a tee from a bonded double circuit line passing nearby. A new GXP
is planned for the Piako area and, once the incoming supply is modified, capacity and
security will be adequate for the planning period.
Kerepehi substation provides supply to most of the Hauraki Plains, including the
township of Ngatea. Its security level is A1. Backup supply via the 11kV network is
available from Tahuna, Paeroa, and Matatoki substations. A second substation at
Mangatarata is planned to better back up Kerepehi.
Lake Road substation is sited alongside the Transpower 33kV GXP at Hinuera. It supplies
farms in the Hinuera area. It has A2 security and is loaded beyond its class capacity. A new
substation at Okoroire is proposed that will back up the supply in the area.
Maraetai Road substation supplies the southern part of Tokoroa and the rural area
south to Kinleith. No significant increase in load is predicted during the planning period.
Security is A1 and it is loaded beyond its class capacity, but this can be increased to
the required AA by reinforcing feeder links to Baird Rd. A new substation is planned for
Mossops Rd in the planning period.
Matatoki substation is a single transformer substation supplying the Matatoki rural
area and one major customer, Thames Timber at Kopu. AA+ security is desired, but
due to a single supply, only A1 is available.

Return to Index

Mikkelsen Road substation is sited alongside Transpowers Waihou GXP. It supplies

Te Aroha and the surrounding rural area. It supplies two major customers, Inghams
chicken processing plant and Richmonds meat processing plant. Its security level is
AA. Larger transformers 12/17MVA transformers were installed in 2009. Mikkelsen
Road is also the location of the SCADA hub for the Valley subregion. The SCADA hub is
being upgraded as part of the SCADA Master Station replacement project.
Morrinsville substation is situated near the NZMP Morrinsville Dairy Factory to supply
the load at the Morrinsville Dairy Company. Indications from NZMP are that the load
requirements at their Morrinsville factory are now likely to increase. AA+ security is
desired but, due to a single 33kV supply, only A2 is available.
Paeroa substation supplies the town of Paeroa and the surrounding rural area. Its
security level is AA and its capacity will be adequate for the planning period. It requires
AA security for the planning period. The switchgear at Paeroa is in an aged condition
and should be replaced within the next five years.
Piako substation supplies the rural area to the east of Morrinsville, and provides
support for Morrinsville. Its security level is AA and it will require reinforcement in 2018.
Putaruru substation supplies the town of Putaruru, the CHH Putaruru sawmill and
the surrounding rural area. Its security level is A2 and its capacity will be adequate
for the planning period. A GXP at Putaruru to increase security for Putaruru and Tirau
substations is planned. This will provide at least AA security for the planning period. A
new substation seems likely in the Arapuni area, to supply a proposed Dairy Factory.
Tahuna substation is located near the village of Tahuna. It supplies the rural area north
of Morrinsville and the village of Tahuna. It also provides 11kV support for Kerepehi
substation. Its security level is A2 and its capacity will be adequate for the planning
period.
Tairua substation supplies Tairua and Pauanui beach resorts. Both of these areas have
experienced strong load growth and this is expected to continue. A second submarine
cable has been installed to improve security to Pauanui, but it terminates on to cables
of small size. Its security level is AA and it will require further reinforcement around
2017.
Thames substation has three 66/11kV transformers. One of the transformers normally
supplies only the A & G Price foundry because of voltage flicker caused by their arc
furnace. The transformer capacity will be adequate for the planning period. AA security
is desired, but due to a single 66kV supply, only A2 is available. A second 66kV line is
under construction and this will allow AAA security.

Return to Index

Tirau substation supplies the NZMP dairy factory, the village of Tirau and the
surrounding rural area. The load requirements are dependent on the dairy factory load.
Recent indications from NZMP indicate that the load at Tirau may increase slightly.
Putaruru and Tirau are supplied by a single 33kV line from Hinuera GXP. A GXP at
Putaruru is planned to increase security for Putaruru and Tirau substations. AA security
is desired but, due to the single supply, only A2 is available. Installation of a second
transformer is planned for 2010.
Tower Road substation supplies the eastern side of Matamata and the surrounding
rural area. Security is A2, but this can be increased to the required AA by reinforcing
feeder links to Browne St substation. A project to install additional transformer capacity
at Tower Rd has been scheduled to begin in 2011.
Waharoa substation supplies industrial loads in Waharoa and an area north of the
town of Matamata. This is a single transformer substation with a security class of AA
because load can be backed up from adjacent substations via the distribution network,
but likely load increases may require early reinforcement.
Waihi substation supplies Waihi and the surrounding rural area, plus the Waihi Gold
Mine. The peak load is well beyond the substation class capacity and the mine load
has to be shed in the event of a major outage. Waihi Gold has recently announced an
extension of operations and may require a 33/11kV substation on site.
Waihi Beach substation supplies Waihi Beach and the surrounding area. Its security
level is A2 and its capacity will be adequate for the planning period.
Waitoa substation is located on NZMP Waitoa factory site. This substation provides a
dedicated supply to the dairy factory and there are no connections to the external 11kV
network. The transformer capacity at Waitoa is specified in the supply agreement with NZMP.
Walton substation supplies dairy load in the Walton area. Its security level is A2 and its
capacity will be adequate for the planning period.
Whangamata substation supplies the town of Whangamata and the surrounding
rural area. It is a holiday resort area and its load is determined by holiday demand.
Its security level is A2, and A1 security is desired. A second transformer has been
installed although its capacity is only 5MVA, and a second 33kV line is planned, which
will provide A1 security. Replacement of the small transformer will occur when one of a
larger size is available.
Whitianga substation supplies Whitianga and the surrounding rural area. It is a holiday
resort area, and its peak load is determined by holiday demand. AA security is desired
but, due to the single supply, only A2 is available. Negotiations are proceeding to obtain
a route for a new line from Coroglen to Kaimarama to enhance the security of supply
to Whitianga. A new zone substation is proposed at Matarangi to supply the coastal
area north of Whitianga. As well as this, a distribution voltage conversion to 22kV is
proposed for the rural area around Whitianga.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

159

7.8.10. Wairarapa Network Description

The following paragraphs provide a commentary of the supply arrangements covering

network adequacy for the Wairarapa subregion by each zone substation, along with the
individual development options.
Chapel and Akura substations supply the Masterton Central Business District,
industrial and commercial areas, a significant part of Masterton residential area,
and rural load to the north west of Masterton. Both of these substations require
AAA security but presently have AA+ because the protection arrangements do not
permit paralleling. A protection upgrade in Masterton is scheduled for completion by
2009. Chapel capacity is expected to be adequate for the planning period. Akura
has two 8.5MVA transformers but the load has exceeded the firm capacity. Two new
transformers are planned for Akura transformers in the early of planning period.
Featherston substation supplies Featherston and the surrounding rural area. Its
security level is A2 and its capacity will be adequate for the planning period.
Gladstone substation is situated in a rural area to the east of Carterton, and supplies
rural load. Its security level is A2. Present transformer is 1.5MVA and there are
possibilities of new subdivision development which may alter the load forecast. The
transformer rotation plan includes changing out the transformer with a 3MVA unit in the
early stages of the planning period.
Hau Nui substation is situated in south eastern Wairarapa, adjacent to the Genesis
wind farm. Its primary purpose is to connect the wind farm output into the network,
but it also supplies a very small rural load. Its security level is A2 and its capacity will be
adequate for the planning period.
Kempton substation supplies Greytown and the surrounding rural area. Its security
level is A2 and its capacity will be adequate for the planning period.
Martinborough substation supplies urban and rural load around Martinborough. Its
security level is A1 and its capacity will be adequate for the planning period.
Norfolk substation is situated a few kilometres south of Masterton. It supplies several
MVA of load to a single large consumer, as well as other industrial and rural load.
Its security level is AAA. The load exceeds the single transformer rating and new
transformers are planned for 2015.
Te Ore Ore substation is on the eastern edge of Masterton and supplies a mix of
residential and rural load. Its security level is AA and its capacity will be adequate for
the planning period. It is loaded to its class capacity but this, plus projected growth,
can be handled by cyclic loading and load transfer. Nevertheless, it is likely to require
reinforcement during the middle of the planning period.

160

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Tuhitarata substation is situated in the southern Wairarapa area and supplies a rural
load. Its security level is A2 and its capacity will be adequate for the planning period.
Tinui and Awatoitoi substations are situated in rural areas to the east of Masterton,
towards Castlepoint, and they supply rural loads. Their security levels are A2 and their
capacities will be adequate for the planning period.
7.8.11. Wanganui Network Description

The following paragraphs provide a commentary of the supply arrangements covering

network adequacy for the Wanganui subregion by each zone substation, along with the
individual development options.
The Wanganui CBD subtransmission network is to be reconfigured to improve the
security, reliability and asset utilisation. For Hatricks Wharf, Taupo Quay, Peat St, Beach
Rd and Castlecliff substations, security levels and future reinforcement requirements will
depend on the configuration adopted.
Arahina substation is situated at Marton and supplies urban and rural load. Its security
level is AA and its capacity will be adequate for the planning period.
Beach Road substation supplies a significant Wanganui west industrial load, including
Imlay freezing works. It has one 10.6MVA transformer and its security of supply is A2.
Network security is being revised and, with a major new industrial load, an additional
transformer will be required. The transformer rotation plan includes installation of a
second transformer in 2014. The outdoor 33kV switchgear is in a corroded condition
and is planned to replace it with a new indoor 33kV switchgear in 2010.
Blink Bonnie substation is situated to the east of Wanganui, adjacent to the
Transpower Wanganui GXP. It supplies the rural load to the south of Wanganui. Its
security level is AA and its capacity will be adequate for the planning period. However
the transformer is 53 years old and parts of the tank are corroded which needs to
be monitored. The DP value is good for its age. Transformer rotation plan includes
changing out the transformer in 2015.
Bulls substation supplies Bulls township and the surrounding rural load. Its security
level is A2 and its capacity will be adequate for the planning period. But the load on
Parewanui feeder is growing sufficiently to exceed the feeder voltage level threshold. A
voltage regulating station is planned near the corner of Raumai Rd and Parewanui Rd.
6km of new 33kV line operated at 11kV will be required to feed this regulating station
from Bulls substation. Construction of a new 33kV line from Bulls to Sanson substation
is in progress. Part of its has been constructed from Sanson substation as a new
feeder to feed large new load at Ohakea Air Force base.

Return to Index

Castlecliff substation supplies a portion of the citys industrial load. Castlecliff has one
9.6MVA and one 7.2MVA transformers, and an upgrade to 2 x 9.6MVA is planned.
Hatricks Wharf substation supplies part of the Wanganui CBD, the airport and some
residential load south of the river. It is currently operating with a spare 7.5/10MVA
transformer. A new transformer is likely to be installed during the planning period. There
is an 11kV bus tie between Hatricks Wharf and Taupo Quay which can provide 10MVA
load transfer capability between the two substations under nonpeak load conditions.
Kai Iwi substation is situated north west of Wanganui and supplies the Wanganui City
water pumping station and rural load. Its security level is A2. Its capacity is expected to
be adequate for the planning period, but its 11kV backup supply is marginal for starting
the water supply pumps. This situation is under investigation.
Ohakune GXP supplies Ohakune township and a large surrounding rural area. The
substation is owned by Transpower with Powerco owning the 11kV switchgear. Its
security level is A2. Because of its proximity to the ski-fields, a single large development
could significantly alter the forecast. No reinforcement during the planning period is
anticipated.
Peat St substation supplies a mix of residential and commercial loads, including the
northern part of the Wanganui CBD. It is the main backup for Taupo Quay and Hatricks
substations. The substation is configured for two transformers but only one is installed
at present. New 33kV switchgear were installed in 2009 and a second transformer (ex
Pukepapa) will be installed by 2010. Then, AA+ level of security will be achieved.
Pukepapa substation is situated adjacent to Transpower Marton GXP. It supplies
rural load, but also provides a backup for Arahina and Bulls substations. Its security
level is AA and its capacity is expected to be adequate for the planning period. The
transformer at Pukepapa is identical to the Peat St transformer and will be relocated to
Peat St. A refurbished transformer will be installed at Pukepapa.
Rata substation supplies Hunterville and the surrounding area, including 22kV
distribution. Its security level is A2 and its capacity is expected to be adequate for the
planning period.
Roberts Ave substation is situated in Aramoho, supplying the Aramoho industrial
area, and surrounding residential and rural areas. Its security level is AA and its capacity
is expected to be adequate for the planning period. It provides substantial backup to
Peat St.

Taupo Quay substation supplies the western side of Wanganui CBD, inner residential
load and the hospital. Its security level is AA. There is an 11kV bus tie between Hatricks
Wharf and Taupo Quay which can provide 10MVA load transfer capability between the
two substations under non peak load conditions. Reinforcement will be necessary in
the planning period.
Waiouru substation is just south of Waiouru township. It supplies Waiouru, Waiouru
army camp and the surrounding rural area. Its security level is A2 and its capacity is
expected to be adequate for the planning period. It has one 7.2MVA transformer, which
is likely to form part of a transformer rotation.
Wanganui East substation supplies the residential area on the east side of the
Whanganui River and rural area to the east of Wanganui. Its security level is A2. It is
loaded to its class capacity, and feeder interconnection reinforcement will be required
during the planning period.
Waverley GXP supplies Waverley township and the surrounding rural area. The 11kV
switchgear is owned by Transpower. Its security level is A2. The disestablishment of
Waverley GXP requires careful consideration.
7.8.12. Fault Levels and Equipment Ratings

Analysis of fault levels on the network shows that equipment and cable ratings on the
subtransmission network are generally adequate.
In the Tauranga distribution network, with its high levels of load growth, there are
instances where small 11kV cables do not have the capability to withstand the full
network fault level. Switchgear at Greerton switching station is just within its fault rating
of 750MVA. When it undergoes a renewal programme, the switchgear will be uprated.
As development occurs, the fault levels will be closely scrutinised and transformer
impedances will be specified to match the fault capability of the existing network.
7.8.13. Summary of Subtransmission Network Development

A summary of the major programmes of work including subtransmission development

projects expected to be required during the planning period from the Long-Term
Development Plan is shown in Table 7.27.

Taihape substation supplies Taihape urban and rural load. A second transformer
has been installed as a hot spare, bringing its security level to AA, although a
single transformer bank at Transpower Mataroa limits the security. It has a 10 MVA
transformer, which is in excess of the load and the transformer is identical to the Beach
Rd. Transformer rotation plan includes changing out the transformer in 2014.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

161

7.9.

Medium-Term Development Plan (Distribution)

7.9.1.

Introduction

Powercos medium term development plan (MTDP) deals with the distribution system
from the zone substation to (and including) the 11kV/400V transformers.
The analysis and preparation of the MTDP includes:
Assessment of the Asset Management drivers and performance targets;
Performance assessment of the present system;
Review of network improvement recommendations ;
Maintenance of appropriate levels of security of supply;
Optimal development of the distribution system to meet consumer service
objectives; and
Focus group discussions with consumer representatives provide helpful input to the
assessment of priorities.
7.9.2.

Medium-Term Development Planning Process

Powerco uses a two-pronged approach to produce its Medium-Term Development

Plan, combining both bottom-up and top-down analyses.
Top-Down Analysis Modelling of the feeders is carried out to determine those with
thermal loading, voltage drop and age-related problems. These models take network
data from Powercos GIS database and loading data from the SCADA system and MDI
meters. Various techniques are used to combine this data into information on each feeders
capability, which can then be used to initiate projects to actively develop the network.
Bottom-Up Analysis This part of the process relies on input from the field staff,
project engineers and other staff reporting on problems or deficiencies they find on the
network. This data is used to drive projects to reactively develop the network.
Combining the Approaches Using the two-pronged approach means that the network
is developed proactively and, when a project is not picked up by modelling, reactively.
The projects are collated and each is ranked according to its value by safety, asset
investment efficiency, reliability, environment, quality, potential of adverse litigation,
operation and maintenance and shareholder value.
Where appropriate the projects are then scoped, approved and undertaken.
Alternatively, projects can be postponed if they are not immediately required or
cancelled if, on investigation, there is no need to proceed.
The focus group consultation process assists in linking the top-down and bottom-up
processes and identifying the priority projects.

162

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

7.9.3.

Distribution Network Upgrade Projects

The salient distribution network projects are shown in Table 7.27.

7.10. Reticulation Planning
Powerco has recently completed a review of its underground line design standard. This
has focussed on ensuring that underground MV, LV and street lighting networks are
designed in an economic fashion and to ensure that contractors design and construct
underground networks to a good standard. Powerco has completed a review of its line
design standards, which is awaiting final approval and implementation. These reviews
will affect the design of new work being installed on the network.
Consultation with consumer groups has assisted in targeting feeder upgrades where
consumers have found that supply reliability has been poor.
7.11. Implementing Development Projects
7.11.1. Resource Consent Requirements

Construction of lines and zone substations can be subject to specific Resource

Consent requirements. These vary across the many district council territories within
Powercos network area. Council planners administering the District Plans are often
unable to offer advice on Resource Consent requirements or the process to follow. The
path towards getting resource consent is usually not clear and this can lead to delays
in construction, particularly given the limited means available to many line companies
to buy their way through the process. This means that development projects need to
commence well in advance of the project being needed so that Resource Consent
issues are settled before construction starts.
7.11.2. Easement Issues

New lines require easements to be registered on the land title. In theory, a simple
landowner agreement may be all that is needed to construct a line, but the lowest risk,
longterm access arrangement is an easement. Obtaining an easement is not usually
a problem with lines or cables laid in subdivisions, but when a line is proposed for
construction across existing titled land, an easement becomes a matter of willing buyer,
unwilling seller. The stakes can become high if there is limited discretion over the route
that the line can follow. Compulsory acquisition is an option in theory but the process is
by no means clear.
What is needed is significant time allowed for obtaining easements before construction
work starts. This means up to a 15 year view is needed on proposed lines before
construction to give adequate time for easement consultation.

Return to Index

7.12. Major Project Descriptions

The following are descriptions of the major projects currently underway and
Development project summaries from FY10 to FY15 are provided in Table 7.27. The
projects are presented in categories of Renewal and Development (they have not yet
been separated into the Information Disclosure categories).
7.12.1. New Bethlehem Zone Substation
Total Cost: $5.5m Project Status: Feasibility Forecast Accuracy:+/- 20%

The overarching driver for a new zone substation at Bethlehem in Tauranga is to

restore capacity of supply to the Bethlehem, Otumoetai and Te Puna areas and allow
for expansion to cater for load growth connected but not yet materialised, as well as
ongoing growth forecast by local Council planning.
The Bethlehem area has been the focus of a great deal of residential growth since the
mid 90s, driven by previous plan changes and the attraction of good schooling and
easy access to the city via the upgraded motorway. The Western Bay of Plenty District
Council has released new urban structure plans for the district. Included in those plans
is a future rezoning of rural land around Bethlehem to promote residential growth and to
satisfy the shortage of commercial land. Those changes came into affect in 2005/6.
The suburb of Bethlehem is supplied from Otumoetai zone substation which has seen
steady load growth over the last decade. The substation is considered to be well sized
for the nature and density of the customers served. It comprises one 10/12.5MVA
transformer and a 12.5/15MVA transformer, has a 98th percentile peak of 12.5 MVA,
a hour MD of 15MVA, and an estimated growth of 2%. In the past, load has been
transferred off Otumoetai onto Waihi Rd and Matua substations, but the ability to
share load is limited, with spare capacity on these substations intended for the future
intensification developments in Tauranga City centre.
The effect of the rezoning and general infill will see a further 4 to 6MVA of residential
load and 3MVA of commercial growth occurring within the next 10 to 15 years in the
Tauranga West area alone, based on Smart Growth predictions. Much of the residential
development in the recently rezoned area has already occurred, but occupancy rates
on developed land are still low. Many of the recently reticulated subdivisions are at 30%
capacity or less. Powerco has reticulated these subdivisions and is therefore obligated
to provide adequate supply to future dwellings in that area. This requires network
reinforcement of some description, making it impractical to do nothing. A viable
alternative is to upgrade Otumoetai substation and the feeders from there into the
Bethlehem area. However the NPV of the costs of that option are higher than the new
zone substation option.
The demand is nearing the available capacity on the feeders in the Bethlehem area.
Distribution feeder capacity is dictated by the contingent load - the load carried when

Return to Index

an item of the distribution network is out of service. The load will exceed the available
capacity in 2012. With the new zone substation and the new feeders it provides, the
loads carried by the feeders will be restored to within their available capacities.
The project involves purchasing land and constructing a zone substation in the
Bethlehem area. The substation will be supplied from the nearby 33kV overhead lines.
The initial proposal is for the substation to be a single bank, supplied from the existing
sub-transmission circuit which runs alongside the proposed substation site, but the
designs will allow for a second bank and a second transformer to be added as load
dictates.
The new substation will be supplied from the 33kV ring that supplies Otumoetai, the line
from which passes through the middle of the Bethlehem area.
Stage 1: Location of a suitable substation site, negotiation and land acquisition,
conceptual designs and resource consenting: $1,000,000 FY10/11
This stage of the project involves the engagement of property consultants to locate
and negotiate a land purchase, the actual purchase of the property, preparation of
conceptual designs, impact reports etc as necessary to apply for resource consent;
and the application consents.
Stage 2: Substation construction and commissioning: FY12/13/14
The construction of a substation at the new site, including a new building to house
switchgear and transformers, landscaping, a single 16/24MVA 33/11kV transformer,
an 11kV switchboard consisting of three feeder breakers, a bus section and incomer,
with provision for a further incomer and a further three feeder breakers, with room for
a further four feeders, 33kV circuit breaker board consisting of two line breakers, one
transformer breaker and a bus section, alterations to the existing 11kV circuits in the
area and extension of the 33kV to the substation site.
Stage 3: Expand the substation to dual transformer bank substation: FY17/18
Extension of the 11kV switchboard - consisting of three new feeder breakers, an
incomer breaker, incomer cables, additional 16/24MVA transformer and additional 33kV
transformer circuit breaker.
7.12.2. Hatricks and Taupo Quay Zone Substation Upgrade
Total Cost: $1.7m Project Status: Feasibility Forecast Accuracy:+/- 20%

Hatricks Wharf substation is one of three principal single transformer zone substations
supplying the Wanganui central business district. It has one of the highest utilisations
in Powercos network and this puts the supply to the CBD at significant risk. Hatricks
substation and Taupo Quay are interconnected by a 10MVA 11kV cable which allows
mutual support, however, the extent of that support is limited by the presently installed
transformer capacity at each substation. Space constraint at each site does not allow
installation of additional transformers.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

163

The transformer presently installed at Hatricks Wharf substation is Powercos spare. The
previous transformers tapchanger burnt out, and following repair this transformer was
installed at Pukepapa. Pukepapas transformer has been removed and is being refurbished
for installation as the second transformer at Peat Street. Peat Street substation presently
has a single transformer, however there is space for a second transformer and it is already
planned for the ex Pukepapa transformer to be installed there.

customers on them already, and they are long in length so connecting many customers
on these would create further supply reliability problems.

The main issue attended to by this project is that the capacity presently available at
Hatricks Wharf substation is insufficient to provide the backup needed for a failure of
supply to Wanganuis CBD. This has resulted in the transformer going well into overload
on occasion. Hatricks Wharf substation is about 15m from Whanganui River and space
for oil containment is limited. Depending on the transformer physical size and oil volume
for containment, additional space may be required. If so, the additional space would
need to be leased from the Wanganui District Council.

Stage 2: Construct a zone substation: FY12/13

The scope of the project is to purchase and install a new 16/24MVA transformer,
upgrade of the 11kV bus and incomers, voltage control system, oil containment and
earthing systems. The project involves extending the site outside the present lease
boundary which is taking significant time to negotiate. This project is being done as
quickly as practically possible.
Following the Hatricks Wharf upgrade it is proposed to carry out a similar upgrade
at Taupo Quay. The justification is similar but not as urgent because the existing
transformer capacity is larger than that at Hatricks Wharf.
7.12.3. New Pyes Pa Zone Substation
Total Cost: $4.9m Project Status: Pre Feasibility Forecast Accuracy: +/- 20%

Two major developments are occurring in the Pyes Pa / Tauriko area of Tauranga.
One of these is the Grasshopper subdivision, approximately 2000 residential lots
and commercial / light industrial land. This project has Council consents and is timed
for completion over the next five or so years. The other Is the IMF industrial park In
Tauriko, where around 360 hectares of land is being developed over a 10 year period,
predominantly industrial, although bulk retail will be the focus of the early stages.
A zone substation has been planned in the Grasshopper estate. This would initially
be supplied at 11kV from the Tauranga GXP and then upgraded to 33kV when
needed. Making use of excavations for storm and sewage pipes, two circuits of 33kV
underground cable have already been laid from the proposed substation site to the
corner of Maleme and Cameron Rds.
Options for alternative solutions include running more feeders from the GXP at 11kV,
and continuing to supply from existing feeders. The problem is that available space
on Cameron rd for laying cables is so limited that any circuits installed must be those
that are the most important. The existing distribution feeders have large numbers of

164

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Stage 1: Complete cable circuits and secure site: FY10/11

Work still to be done is to extend the cable circuits back to the GXP and to secure the
site ready for constructing a zone substation.
Initially running at 11kV, the new zone substation will be constructed to supply the area.
New feeder cables will be connected.
7.12.4. New Omanu Zone Substation
Total Cost: $7.3m Project Status: Concept Design Forecast Accuracy: +/- 15%

The Mount Maunganui area is one of the fastest growing regions in NewZealand, with
the equivalent of three zone substations currently supplying the region; Mt Maunganui
GXP, Triton and Papamoa. This area has a rapidly growing load consisting of a mix of
commercial, industrial and residential customers. Triton substation supplies a significant
industrial area, including the non containerised operations of the Port of Tauranga. It
also supplies half the residential load of the Mt Maunganui peninsula. The existing Mt
Maunganui GXP is currently being reconstructed. This reconstructed GXP will continue
to supply the remaining residential and industrial customers in Mt Maunganui. The
loadings on the three zone substations in the region are reaching or have reached their
firm capacity.
Loads are expected to exceed the 23MVA limit of the 33kV subtransmission circuits
feeding Triton in 2011. Recent thermal resistivity testing in this area has shown that
the backfill around these cables is susceptible to thermal runaway and the summer
rating for these cables is recommended to be 15MVA. Loads are already exceeding the
19MVA IEC derived rating of the Triton transformers, although allowing for load transfer
and cyclic capacity, the firm capacity will be exceeded in 2012. Loads are expected to
exceed the 19MVA IEC rating of the Papamoa transformers at 15C in 2010 allowing
for cyclic loading and feeder transfer the transformer firm capacity is exceeded in 2012.
With the zone substations exceeding firm capacity concurrently, the ability for one
substation to back up another is constrained.
Loads are expected to exceed the 23MVA limit of the 33kV subtransmission circuits
feeding Papamoa around 2013. The N-1 limit on the Mt Maunganui GXP will be
75MVA once Transpower has installed the new transformers. This limit will be reached
around 2015. These two issues should be solved in time by the installation of a new
GXP, preferably in the Papamoa area. The Papamoa zone substation would then be
fed from this new GXP. There is little scope to transfer loads from Triton to either the
Mt Maunganui or Papamoa zone substations due to the already high loads at those
substations. A new zone substation is therefore required in the Omanu area.

Return to Index

The proposed project is to build a new zone substation in the Omanu area and supply
this via new 33kV double circuit cables from the Mt Maunganui GXP. This would allow
load to be transferred off the Triton and Mt Maunganui zone substations and onto the
new zone substation. See Appendix 4 for diagrams showing the existing 33kV network
and that following construction of the new zone substation.
Two alternative options have been considered: do nothing, reinforce Triton and defer
the new zone substation. This area of the network has been a high growth area for
some time and parts of the network are already under stress with their existing loads.
Neither the do nothing option nor the defer option are considered viable option. The
option to reinforce Triton does not offer the diversity that a new substation does and the
ability to take more feeders from the site is constrained.
The proposal is to construct a two transformer substation in a new substation building
in transformer feeder configuration, with twin 33kV incoming circuits. The project is
under design at present. Finding the right piece of land for the site has taken two to
three years and the NOR process has taken over a year to work through.
7.12.5. Browne St and Tower Rd Zone Substation Upgrades
Browne St
Total Cost: $1.5m Project Status: Concept Design Forecast Accuracy: +/- 15%
Tower Rd
Total Cost: $1.5m Project Status: Feasibility Forecast Accuracy: +/- 20%

The overarching driver for this project is to restore security of supply to the Matamata
area and allow for expansion to cater for load growth into the future without that
growth further deteriorating reliability and the ability to carry out maintenance efficiently.
Matamata is supplied by two single transformer zone substations, Browne St and
Tower Rd. Each substation consists of a single transformer bank with Browne Street
rated at 7.5/8.6MVA and Tower Road rated at 7.5/10MVA. Both substations supply a
mixture of urban and rural loads with 3108 ICPs connected to Tower Road and 2111
ICPs off Browne Street.
Tower Rd has a single 33 kV supply from Hinuera GXP, while Browne St has two
incoming 33 kV supplies, one from Hinuera GXP and an alternative supply from Waihou
GXP. There is strong 11 kV interconnection between these two substations, which
until recently provided the AA security level required by Powerco standard 310S001,
Security of Supply Classification Zone Substations, however, load growth has meant
that the ability to support one substation from another is now limited to low load times.
This has an impact on SAIDI under fault situations and restricts the times at which
maintenance can occur.
Neither substation has sufficient spare capacity to take up the load of the other at
peak times. The load duration curves show that the Matamata load was above the
transformer firm capacity for 33% of the time. The load duration curve is flat at the

Return to Index

Browne St nameplate capacity and so load growth amplifies the exceedance duration
impact one year of annual load growth at 2% increases the time firm capacity is
exceeded to 38%. In the winter just passed, the transformers at Tower Rd and Browne
St have been operating close to their alarm overload levels.
The long term plan is to extend the 33kV subtransmission from Browne Street to Tower
Road, and install a second transformer bank at Tower Road, ultimately with increased
capacity on all the transformers.
The project involves refurbishing the 7.5MVA transformer recently removed from
Mikkelsen Road substation and installing it at Browne Street substation. The work
requires the replacement of the existing 33kV switchboard to enable an additional
incomer breaker to be installed. An 11kV incomer breaker recovered from Whitianga
substation upgrade will be installed also. The existing switchroom is too small to
accommodate the longer 33kV switchboard. A new switchroom will be constructed
to house the new switchboard. Sufficient room will be made available to install up to
two additional 33kV circuit breakers, one of which will be needed to link with Tower
Road in the future. Alterations will be made to the existing 33kV supplies and the
connections to the new transformer. Where practical, overground cable routes will be
utilised. New electronic protection relays will be installed with the 33kV switchgear,
new communication links will be added including time synchronisation equipment.
The second transformer will be installed on a new foundation incorporating an oil
containment bund. The existing block wall adjacent to T1 will provide a fire wall
between T1 and the new T2. A new transformer management relay will be installed to
control both transformers.
7.12.6. New Sulphur Point Zone Substation
Total Cost: $5.3m Project Status: Pre Feasibility Forecast Accuracy: +/- 25%

Tauranga has grown rapidly over the last twenty years. The Port of Tauranga has
been one of the major catalysts for this growth. The Port of Taurangas Sulphur Point
operations continue to expand, and with it, supporting industries have been attracted
to the Sulphur Point area. The Sulphur point area adjoins the Tauranga CBD area and
contains not only the Port of Taurangas container operation but recreational areas
such as a marina and a number of boat ramps. Other major industry loads in the area
include fish processing factories; boat building; waste water treatment facilities and more
recently residential apartments. Several major developments are scheduled for the area
once the economy begins to recover, these include substantial residential developments,
a Marine Park initiated by Tauranga City Council, with a predicted load of 5MVA.
In 2005 the Port of Tauranga approached Powerco outlining their proposed growth
strategy. Their forecast load was predicted to be 6.0MVA by 2010 with growth
continuing at similar rates into the future. The existing supply to the Port of Tauranga
was via an 11kV cable from Hamilton Street substation, which also supplied other

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

165

industry in the area. This supply was incapable of meeting the demands of the Port so
an express cable was installed solely for the Port. At the time, it was considered that
future growth much beyond 2012 could not be supplied at 11kV so the cable installed
was a 33kV subtransmission cable which was configured to operate at 11kV for the
interim. This was commissioned in 2006.
The NewZealand Transport Agency (NZTA) is in the process of constructing a second
harbour bridge and associated motorway flyovers and off ramps collectively known as
the Harbour Link project. This is expected to be completed in 2010. A section of land
has been purchased for constructing a substation from NZTA.
The project is in three stages. The first is to purchase the land and work through any
consents necessary to construct a substation. The second is to construct a single
transformer zone substation with indoor 33kV switchgear and six 11kV feeders in FY14.
The third stage later in the planning horizon is to add a second transformer.
The new zone substation would provide the means to back up supply into the Matua area.
7.12.7. Tauranga CBD Reinforcement
Total Cost: $6.1m Project Status: Commencing Forecast Accuracy: +/- 20%

The existing 33kV subtransmission system supplying the Tauranga CBD consists of a
ring connecting Waihi Rd substation and Hamilton St substation with supply originating
from Tauranga Substation Grid Exit Point and Greerton Switching Station. Greerton
Switching Station is linked with Tauranga Grid Exit Point via two 33kV cable circuits
(Committee Circuits). Each of the routes are predominantly underground cable, with
some short sections of overhead line. The Waihi Rd route follows the Kopurererua
Valley and the motorway known as Route K.
Hamilton Street substation and Waihi Rd substation supply electricity to Taurangas
Central Business District and major industry such as the container port at Sulphur
Point. These load groups are of sufficient importance to require full N-1 security at
subtransmission level. Both Hamilton Street substation and Waihi Road substations
have undergone significant redevelopment over the last five years to meet the dramatic
increase in electricity demand in the Tauranga area. This growth continues, albeit at
lower levels and has increased to the point where the capacity of the subtransmission
circuits is insufficient to meet the peak loads of the two substations should any portion
of the ring circuit fail. As time passes, load growth means that the proportion time
without full N-1 security increases.
Greerton switching station is a switchyard located approximately 1km from Tauranga
substation GXP. The switchyard connects Kaimai Hydropower generation to Powercos
network and is the connection point for sub-transmission rings supplying the Omokoroa,
Aongatete, Katikati, Kauri Point, Otumoetai and Matua zone substations. The switchyard
is connected to the Tauranga Grid Exit Point by way of two 33kV circuits known as

166

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

the Committee circuits. One of these circuits is fully underground; the other circuit is a
mixture of underground cable and overhead line. The variation in makeup between these
two circuits results in unequal load share between the two circuits.
When one of the Committee circuits is out of service, the other circuit cannot carry
the full load expected unless the Kaimai Hydro scheme is running a full capacity. As
the storage capacity of the scheme is limited, the time that it can run at full capacity
is usually limited to a small number of hours, and during dry times it may not be able
to run at a greater level than half capacity. This means that the network is not capable
of adequately supplying the western part of Tauranga under contingent situations as it
should be.
During winter months, the firm capacity on these circuits is exceeded over 20% of
the time. A fault occurring on the one of these circuits at high load time will result in a
cascade failure type outage to the Tauranga CBD, Port and area west of Tauranga.
At present, protection schemes for the Hamilton Street / Waihi Rd and Committee
circuits use pilot wire to give Translay protection over the cable segments. The entire
sub-transmission ring is protected by a single pilot cable which, when it is damaged
anywhere along its length by third party excavators, it causes complete failure of supply
to the CBD. This has happened at various times in recent years.
The reconfiguration of the cable circuits and the need to split the ring supplying Waihi
Rd and Hamilton Street will require significant changes to the protection arrangements.
A unit protection scheme with main and back up is needed that will clear faults quickly
and discriminate accurately as is appropriate for a CBD like Taurangas. Options of high
speed radio have been investigated but they are expensive and suffer from signal fade
and do not provide the levels of availability required to ensure secure operation befitting
supply to Taurangas CBD and Port facility.
The project consists of installing two new cable circuits between Tauranga GXP
and Waihi Road substation to enable the existing cable ring supplying Waihi Rd and
Hamilton Street substations to be split. To achieve this, the section of new cable
on part of the route (Tauranga GXP to Greerton substation) will be installed as a
replacement to the existing Committee cables. The redundant committee cables
would then form part of the new Waihi Road subtransmission circuit.
The scope of work includes negotiating routes, easement compensation, consenting
and concept design costs; detailed design, thermal resistivity testing; supply and
installation of dual circuit XLPE cables between Tauranga GXP and Greerton switchyard
for 40MVA capacity; supply and installation of dual circuit 630mm Al XLPE cables
between Greerton switchyard and Waihi Road Substation 28MVA; supply and
installation of fibre option protection and communication cabling with each of the
new cable circuits; and new protection relays, settings and commissioning of the new
schemes to provide unit protection over the cables.

Return to Index

The following alternatives have been considered:

Alternative

Likely outcomes

Do nothing.

This area of the network has been a high growth area for some time. The
load on the 33kV circuits that supply the CBD and west of Tauranga have
reached their N-1 capacity and there is limited capability to transfer any
further load off the 33kV network. It is not possible to adequately backup the
CBD loads due to either high loads elsewhere. The do nothing option is not
a viable option.

Non Asset Solution

The available non asset solution opportunities have really already been
exhausted. Load control is being used extensively to the point where we
receive customer complaints, there are no particularly viable embedded
generation opportunities and captive power (existing port generation) is
being used when feasible.

Install a single 33kV

circuit to Waihi Rd

Defer the upgrade

of the Committee
circuits until the
Otumoetai circuits
are needed

Technically it is possible to install a single 33kV circuit between Tauranga

GXP and Waihi Rd substation, along with a new circuit breaker at Waihi
Rd. This would provide sufficient security to both Waihi Rd and Hamilton
Street but the risks associated with the Committee circuits would not be
completely mitigated. Eventually a second circuit would be required to
separate Waihi Rd from Hamilton Street. This is expected to be required
when the new substation at Sulphur Point in needed, in 2015. The scenario
used in the attached economic analysis assumes the risk of loss of a
committee circuit is effectively half that of the do nothing option, i.e. a one in
thirty year event.
Completing the Waihi Rd upgrade and deferring the Committee circuit
upgrade would reduce project costs by $330,000 but would not provide
the N-1 security level to the area west of Tauranga required. The Otumoetai
circuit upgrades will be needed at a time between now and ten years time
their timing is not known presently.

7.12.8. Te Puke Subtransmission Upgrade

Total Cost: $1.0m Project Status: Underway Forecast Accuracy: +/- 10%

Te Puke substation supplies 5,900 ICPs. It was rebuilt in 2005 with twin 16/24MVA
transformers being installed. It currently has a firm capacity of 18.2MVA and peak of
approx 22MVA. At present, two circuits supply Te Puke substation from Transpower
Te Matai GXP, with a third available but not currently closed under the normal system
configuration.
Te Puke A circuit has been upgraded to a rating of approx 24MVA. Te Puke B and C
circuits comprise Wasp conductor and are still rated at 17.5MVA, and hence if the Te
Puke A circuit trips, the supply to Te Puke Sub will overload the rating of the Te Puke
B circuit, leading to a risk that the 33kV may sag excessively causing safety issues. The
circuits also supply the new Atuaroa Substation. Future options exist to install a new 33kV
cable from Transpower Te Matai, along Te Matai Rd, to past John Bird Rd to supply one
33kV circuit for Te Puke Substation. A new 33kV circuit breaker would then be installed at
Te Matai GXP and the existing 33kV circuit could then supply Atuaroa Substation.

Return to Index

The scope is to use a conductor capable of 26MVA summer noon rating at 50 deg C
(preferably Neon 210mm AAAC) but with design for a 70 deg C rating. The existing
11kV overhead under built line will also be upgraded. The remaining Te Puke B and C
circuits between John Bird Rd and Te Puke Sub will be coupled together as an interim
measure. A section of 33kV underground cable will be laid in Te Matai Rd opposite
John Bird Rd. The conductor on Te Puke B and C circuit between Te Matai Road and
Te Puke Sub and on Te Puke C circuit between Te Puke Sub and No.3 Rd will then be
upgraded.
7.12.9. New Katere Zone Substation
Total Cost: $7.9m Project Status: Underway Forecast Accuracy: +/- 10%

The Waiwhakaiho Valley area is situated just to the east of Fitzroy, on the eastern side of
the Waiwhakaiho River. It is presently supplied by five 11kV feeders, one from NP City,
two from Brooklands, and two from Bell Block Substations. All feeders are close to fully
loaded, leaving little redundant capacity for any contingency and voltage performance
is near the lower limit. These feeders also supply the adjacent industrial area in Katere
Road and Hurlstone Drive.
Significant commercial growth has occurred in the area over the past three years, and
more is expected. Powerco has in the past (October 2006) made headlines due to a
low voltage issue in the Katere Road area. While this issue was later shown to be due
in part to a single consumers inadequate LV supply (due to his load increase), the issue
did highlight weaknesses in the HV supply to the area.
A new 15 lot Industrial subdivision has been zoned near Katere Rd. The first of these,
Placemakers, has recently connected with a load of 500 kVA and a new supermarket
connection is imminent. In April 2007, the NPDC released its Options for Growth, A
Discussion Paper identifying the land east of Egmont Road and south of Devon Road
which is adjacent to Katere Road, as recommended industrial development.
Land has been purchased on Egmont Road, near Katere Road for a new substation
(refer to Board memorandum 306). Powerco has received consent from NPDC for a
new substation at this site.
In summary the project scope includes provision and installation of two 33kV supply
cable circuits each of 24MVA capacity; provision and installation of new 33/11kV
16/24MVA transformers and associated switchgear; construction of a substation
building to accommodate the 11kV and 33kV switchgear; and 11kV distribution
construction and reconfiguration (affecting eight feeders).

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

167

Options considered include:

Upgrade existing feeders, construct zone substation with one incoming 33kV circuit
over three years but this is susceptible to long supply outage from single contingent
event;
Upgrade existing feeders, construct zone substation with two incoming 33kV circuits
over three years (this is the selected option);
Upgrade existing feeders, lay two new 11kV feeders and construct zone substation
with two 33kV circuits in five years time but this involves significant expense in
laying new feeders that would only be used for a short time;
Upgrade existing feeders, defer the new substation and live with poor supply
reliability but this may invoke adverse customer reaction; and
Upgrade the existing feeders, fast track the construction of the new zone substation
with two 33kV circuits but this is not the best use of time value of money

7.12.12. Peat St Zone Substation Upgrade

Total Cost: $2.0m Project Status: Underway Forecast Accuracy: +/- 10%

Peat St zone substation currently has a security rating of AA. This is an important zone
substation supplying part of Wanganuis CBD and AAA security is necessary. This project
completes the installation of the second transformer, thereby achieving AAA security.
Previous projects have prepared the way for this. The 11kV and 33kV switchboards
have switches designated for the second transformer. The ex Pukepapa transformer is
a sister unit to the transformer presently at Peat St. It has been maintained, fitted with
an oil pump, and the radiators fixed. It is presently being used temporarily at Cambria
substation, standing in for a failed unit there. The 33kV and the 11kV cable connections
remain to be completed. Some protection equipment and voltage control is required.
Hatricks substation is scheduled to be upgraded. During the upgrade of Hatricks it will
be particularly important that Peat St substation has both transformers installed, as it
will be required to pick up a large part of Hatricks load.

7.12.10. New Paengaroa Zone Substation

Total Cost: $2.5m Project Status: Feasibility Forecast Accuracy: +/- 20%

A new zone substation is proposed for construction at Paengaroa to supply new load
coming from new cool stores and horticultural activities. It will also provide a means of
backing up the supply at Pongakawa. Initially the zone substation will be supplied from
the existing 33kV Pongakawa line but a second stage will be to construct a new feeder
from Te Matai GXP.
7.12.11. New Te Maunga Zone Substation
Total Cost: $4.0m Project Status: Pre Feasibility Forecast Accuracy: +/- 25%

A new zone substation is proposed for construction in the west Papamoa area. This
will provide a means of supplying the area between Matapihi / Bayfair and Papamoa.
As stated above for the Omanu zone substation, the existing zone substations in the
Mt Maunganui and Papamoa areas are at or near firm capacity and there is little room
for unscheduled events like loss of a subtransmission circuit or transformer occurring
without risking loss of supply.

7.13. Network Development Project Summary

Development project summaries from FY09 to FY14 are provided in Table 7.27. The
projects are presented in categories of Renewal and Development (they have not yet
been separated into the Information Disclosure categories).
The projects under the FY10 category come from the FY10 works plan. The FY11 to 15
project summaries come from the Improvement Register.
The FY11 to FY15 projects are assessed using a multistakeholder assessment process
(known as Coin), whereby the projects are reviewed against a set of four strategic
objectives representing stakeholder needs under which constraints are applied. The
objectives are set out in Section 2.6.
The total expenditure amounts in Table 7.27 can be seen to confirm the forecast
expenditures in Section 9.

The proposed Te Maunga zone substation will be supplied from the Mt Maunganui GXP
using the present Papamoa subtransmission circuits. Papamoa will be transferred to
the proposed new GXP at Papamoa East.

168

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 7.27: Summary of Development Projects

AMP Network Development Programme Summary

Project Driver

AMP
Reference
Section

Asset Performance; Service

Asset Performance; Service
Asset Performance; Service
Asset Performance; Service
Asset Performance; Service
Asset Performance; Service
Asset Performance; Service

5.2.3
7.9
7.9
7.9
7.8.11
7.9
7.8.9

Load Growth; Service

Asset Performance; Service
Asset Performance; Service
Load Growth; Service
Load Growth; Service
Risk Management; Service

7.8
7.8
7.8.10
7.8.7
7.8.11
7.8.11

Load Growth; Service

Load Growth; Service
Load Growth; Service
Load Growth; Service

7.8.11
7.8.6
7.8.8
7.8.8

$1,000,000

Load Growth

7.8.8

$1,000,000
$1,000,000
$1,000,000

Load Growth
Load Growth; Service
Asset Performance; Service

7.8.8
7.8.9
7.8.9

Asset Performance; Service

7.8.9

Potential
Projects
System Growth Project

FY2011

FY2012

FY2013

FY2014

Options

FY2015

DOH

Misc voltage quality investigations

Misc line reconfigurations
Misc construction of additional lines
Misc conductor upgrades
Bulls new feeder
Distribution Overhead growth
Cooks Beach second Marine Link

$75,000
$450,000
$2,726,000

$258,000
$75,000
$2,453,700

$40,000
$100,000
$180,000
$1,286,000

$240,000
$1,743,000
$900,000

$95,000
$1,245,000
$1,200,000

$550,000

SOH

Misc 33kV second line installation

Misc 33kV Subtransmission upgrades
Norfolk to Chapel upgrade 33kV line
Huirangi to Bell Block second 33 kV line
Wanganui GXP to Taupo second 33kV line
Roberts Ave to Peat St 33kV feeder

$75,000
$600,000
$550,000

Parewanui 33kV feeder

Bunnythorpe GXP to Feilding third 33kV line
Omokoroa Urban Substation Subtransmission
Te Matai/Rangiuru/Papamoa 33kV
Subtransmission
Papamoa East to Rangiuru Bus Park 33kV line

$850,000

$400,000
$390,000

$780,000

$455,000
$150,000
$600,000
$750,000

$750,000
$1,600,000
$1,000,000

Omokoroa additional 33kV circuit

Tokoroa South Subtransmission
Kopu to Tairua 66kV line upgrade

$2,000,000

$1,000,000

Kopu to Kauaeranga 110kV line

$1,000,000

$1,000,000

Blue Mountain establish 66kV line

$960,000

$2,210,000
$1,000,000

$1,000,000

$960,000

$960,000

Load Growth

7.8.9

$500,000

$350,000
$290,000

Load Growth; Service

Load Growth; Service
Load Growth; Service
Load Growth

7.8
7.8
7.8
7.8.6

Do nothing and let Wanganui CBD remain supplied from a

single line

Increase capacity at Te Puke and add feeders, upgrade

existing reliabilty and operational constraints
Construct new GXP at Aongatete
Look for generation options in Whitianga (although none
have surfaced)
Look for generation options in Whitianga (although none
have surfaced)

DUG

Misc cable works

Misc new 11kV cable installation
Misc 11kV cable upgrades
Massey/Summerhill feeders off Turitea

$490,000
$1,429,980
$1,179,000

$100,000
$2,109,000
$376,000
$1,400,000

$50,000
$550,000
$810,000

$180,000

$180,000
$100,000
$500,000

Load Growth; Service

Asset Performance; Service
Load Growth; Service

7.8
7.8
7.12.1

$500,000

Load Growth

7.8.2

Asset Performance; Service

Load Growth; Service
Load Growth
Asset Performance; Service

7.8.6
7.8.6
7.8.6
7.8.6

Do nothing - accept worsening reliability and operational

constaints

SUG

Misc cable/ripple plant installation

Misc 33kV cable upgrades
Bethlehem 33kV Subtransmission
Piako GXP 33kV reconfiguration
Fitzherbert 33kV upgrade
Bulls to Sanson second 33kV line
NEI Substation Subtransmission and 11kV
EP West to Keith St 33kV cable upgrade

Return to Index

$400,000
$280,000

$900,000
$1,000,000
$1,000,000
$1,000,000

Interconnect Matua with Sulphur Pt, or do nothing and let

the existing 33kV ring overload
Upgrade Waihou GXP and enhance subtransmission to
Piako

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

169

Potential
Projects
System Growth Project

FY2011

Keith St to Main St 33KV cable replacement

Taupo Quay 33kV OHL river crossing
Pascal St Sub to Z64 upgrade
Otumoetai 33kV cabling
Waihi Rd to Tauranga 33kV circuits

$2,000,000

Atuaroa 33kV circuit

Pyes Pa 33kV circuits

$1,000,000

Project Driver
FY2012

FY2013

FY2014

AMP
Reference
Section

Options

FY2015

$1,000,000

Asset Integrity; Security

Security?
Asset Performance; Service
Load Growth
Load Growth; Risk
Management

7.8.11
7.8.6
7.8.8
7.12.7
7.12.7

$1,100,000

Load Growth

7.8.8

$900,000

Load Growth

7.12.3

Service

7.9

Load Growth
Load Growth

7.8
7.8.7

Asset Performance; Service

Load Growth
Load Growth
Load Growth; Safety

7.9
7.9
7.9
7.9

Asset Performance; Service

Asset Performance; Service
Load Growth
Load Growth
Load Growth
Load Growth; Service
Load Growth; Service

7.12.2

Load Growth; Service

Load Growth; Service

7.12.2
7.12.9

Load Growth; Service

7.8.7

Load Growth; Service

Load Growth; Service
Load Growth; Service

7.8.7
7.8.7
7.8.6

Load Growth; Service

7.8.6

Load Growth; Service

7.12.4

Load Growth; Service

7.12.6

Load Growth; Service

7.12.11

$1,200,000
$1,850,000
$3,240,000
$2,000,000

Tolerate more maintenance and fault repair

Do nothing and accept N scurity level to CBD for growing

lengths of time. Increase the capacity of the existing
subtransmission circuits
Do nothing - accept worsening reliability and operational
contraints
Accept worsening reliability in Kaimai area, and constrain
the new connections to the Pyes Pa subdivision

DGS

Misc switchgear installation

$45,000

$260,000

$310,000

$600,000

DOT

Misc transformer upgrades

Motukawa transformers 6.6kV to 11kV upgrade

$600,000
$1,000,000

$250,000
$1,000,000

$250,000

Defer the changeover to 11kV

DUT

Misc installation of MDIs

Misc new transformer installations
Misc upgrades overloaded transformers
Misc OH to Ground mount conversions

$50,000
$410,000
$310,000
$31,680

$50,000
$80,000
$250,000

$250,000
$200,000

$350,000

$60,000
$250,000

$250,000

$250,000

ZTR

Misc works inc. incomer upgrades, install link

Misc transformer upgrades
Misc transformer rotations
McKee upsize zone transformers
Kaponga upsize zone transformers
Akura upsize zone transformers, new units
Taupo Quay upsize zone transformer
Hatricks zone transformer
Katere Rd Substation

$350,000
$500,000
$1,500,000
$1,500,000
$1,740,000

$2,000,000
$2,365,000
$2,500,000
$4,000,000
$6,000,000

$4,526,000

Sulphur Point Substation

Te Maunga Substation

170

$50,000
$1,500,000

Fitzherbert establish substation

Omanu Substation

$595,000

$1,500,000

Oakura upgrade to mini 33kV zone substation

Eltham upsize zone transformers
Cambria upsize zone transformers
NEI establish substation

$650,000

$4,500,000
$4,000,000

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Do nothing and accept reliability and operational constaints

Construct new substation with N-1 security between
Hatricks and Taupo Quay
Live with potential for outage in Wanganui CBD
Defer while supplying via new of upgraded feeders, location
of load control plant
Upgrade Moturoa zone substation and increase feeder
capacity in Oakura area
Do nothing and accept reliability and operational constraints
Defer while supplying from new 11kV feeders, transformer
upgrades at Kelvin Grove and Milson, or zone substation at
Bunnythorpe with new feeders
Increase capacity at Main Street substation and/or Pascal
substation, or purchase land vs lease land - various
substation capacity and growth options. Timing depends
on load growth and CBD security requirements
Do nothing and accept increasing risk of widespread
outages, increase capacity of Triton and Mt Maunganui
substations and increase 11kV interconnection
Additional feeders from Hamilton St or restrict supply to
businesses in the Sulphur Point area
Increase transmission capacity into Mt Maunganui.
Add feeders at Papamoa and Mt Maunganui. Upgrade
subtransmission capacity into Papamoa

Return to Index

Potential
Projects
System Growth Project

FY2011

AMP
Reference
Section

Project Driver
FY2012

FY2013

FY2014

Rangiruru Business Park establish substation

$3,000,000

Load Growth; Service

7.8.8

Matua alternative 33kV circuit

$2,500,000

Service

7.8.8

Load Growth; Service

7.8.8

Load Growth
Load Growth; Service
Load Growth; Service
Load Growth; Service

7.8.9
7.12.1
7.8.9
7.12.3

Asset Performance; Service

7.8.9

$1,000,000
$1,000,000

Load Growth; Service

Load Growth; Service
Load Growth; Service
Asset Integrity; Reliability
Asset Performance; Service
Load Growth; Service

7.8.9
7.8.9
7.12.5
7.8.8
7.8.8
7.8.8

$735,000
$2,000,000

Load Growth; Service

Load Growth; Service

Papamoa East Zone Substation

$2,500,000

$2,500,000

Morrinsville upgrade zone transformers

Bethlehem Substation
Baird Rd Substation upgrade
Pyes Pa Substation

$2,000,000

$2,500,000
$2,000,000
$2,000,000

Tirau second zone transformer

$2,000,000

Maraetai Rd Substation upgrade

Tokoroa South Substation
Tower Rd second zone transformer
Te Puke 11kV Switchboard replacement
Katikati second zone transformer
Matua upgrade zone transformers

Options

FY2015

$2,000,000
$2,000,000

$2,000,000
$1,560,000
$1,500,000
$1,000,000

Increase capacity at Te Puke and add feeders, upgrade

subtranmission to Te Puke
Inrease 11kV interconnections from Otumoetai and Sulphur
Pt, or do nothing and accpet reducing reliability at Matua
Limit the connection of new customers in the Papamoa
East area

Accept worsening reliability in Kaimai area, and contrain the

new connections to the Pyes Pa subdivision
Do nothing and accept reliability and operational constaints,
or upgrade feeder capacity from Lake Rd and upgrade
Lake Rd.

Do nothing - accept H&S risk, more maintenance

Accept reduced supply reliability
Improve 11kV backup capacity with Sulphur Pt.

DRG

Misc voltage regulator installation

Tairua 66kV Voltage Regulator installation

$1,085,000

$490,000

$1,010,000

Taihape, Mataroa, Waiouru District upgrade

$521,000

Do nothing and accept risk of voltage collapse, or install

capacitors or install 66kV voltage regulator

Load Growth; Service

ZBG

Misc land purchase and design

Sulphur Point Substation

$250,000
$500,000

Matarangi Substation

$480,000

$935,000

$935,000

$2,500,000

Load Growth; Service

Load Growth; Service

7.8
7.12.6

Load Growth; Service

7.8.9

Additional feeders from Hamilton St or restrict supply to

businesses in the Sulphur Point area
Install additional 11kV or 22kV feeders from Whitianga

ZIE

Te Puke Injection Plant upgrade

$700,000

Load Growth; Service

Do nothing and accept customer hot water complaints

ZOT

Misc substation land procurement

Misc 11kV incomer cable replacement
Delmaney Corner Substation

$350,000
$160,000
$500,000

Load Growth; Service

Asset Performance; Service
Load Growth; Service

ZSG

Misc 33kV switchgear installation

$250,000
Sanson 11kV Switchgear replacement
$585,000
Beach Rd 11kV Switchgear & Building extension
$1,000,000
Totals
$32,362,660 $40,961,700 $25,751,000 $39,668,000 $24,806,000
unspecified development projects

$0

$0

$0

$0

$0

Reactive Development
Deferrals from previous year
Deferrals to next year
Total (real)
Total (nominal)

$1,856,827
$-$11,009,148
$23,210,339
$23,796,344

$1,862,398
$11,009,148
-$30,553,276
$23,279,970
$24,410,713

$1,867,985
$30,553,276
-$34,822,451
$23,349,810
$25,022,592

$1,748,683
$34,822,451
-$54,380,598
$21,858,535
$23,939,821

$1,628,648
$54,380,598
-$60,457,143
$20,358,103
$22,787,047

Return to Index

Load Growth; Service

Asset Integrity; Reliability
Asset Integrity; Reliability

7.8
7.8.6
7.8.11

Do nothing - accept H&S risk, more maintenance

Do nothing - accept H&S risk, more maintenance

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

171

8.

Network Development Plan Performance

Enhancement

8.1.

Introduction

8.2.

Reliability Planning Considerations

This section of the plan describes network development to enhance the reliability, safety
and environmental profile of the distribution network.

8.2.1.

Business Planning Drivers

Reliability improvement is covered in Section 6.6 from the perspective of overhead

line renewal, which has a tendency to worsen if left alone and, given the age profile,
may require an increase in reliability target. This section covers the feeder reliability
performance, historical trends and plans for automation which, while taken from the
perspective of improvement, will actually be used to partly offset an ongoing worsening
of reliability as the network ages.
This section of the plan also looks at Protection and Control developments,
encompassing protection, SCADA, communications, load-control and metering
aspects.
Environmental planning is also covered in this section. Sites have been audited for
environmental performance and programmes of work have been proposed to lower the
environmental risk profile posed at each site.
Safety performance enhancement involves regular reviews of safety incident
investigations from which a variety of improvement actions are implemented. These
range from asset-based improvements, improvements to systems and processes,
training and competency improvements through to amendments of standards and
protocols.

Business Plan Section

Statement

Review of Electricity
Business Performance

Reliability levels have been static. Price has been decreasing in real
terms, hence customers current price/quality trade-off has been
improving. There remains an opportunity to exploit any reliability
initiatives introduced into the regulatory regime.

Strategy Map

Improve electricity network reliability through automation; Minimise

network outages and manage load through network operating
processes.

Customer Perspective

Appropriate price vs quality trade-offs (reliability, timely response to

faults and reasonable prices); Acceptable reliability.

Process Perspective
Manage Asset Strategy

Develop/maintain strategies for meeting service performance

investment needs through the use of automation and other non-asset
solution; Root cause analysis of outages to identify avoidable outages.

In summary, the focus is on:

Increasing the level of network automation;

Finally, Powercos plans for Smart Network implementation are outlined.

Renewing network to reduce the likelihood of faults happening in the first place; and

Powerco has a range of enhancement plans for different performance focusses. These
are:

Analysing and dealing with the root causes of faults.

Network Automation Plan;

Health and Safety Incident register; and
Environmental Improvement Plans and Standards.
These plans are discussed in this section of the plan, including tables of projects giving
year, estimated cost and brief comment for each proposed project. Detailed discussion
of these projects, generally including linkages to service level targets, can be found
in the above plans. Because of the large number of projects, detailed discussion is
considered to be beyond the scope of this document.

172

Powercos network reliability strategy is set by the Business Plans. Reliability is

mentioned three times in the FY10 to 14 Business Plan. The first is in the Review of
Electricity Business Performance where it states:

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

The following is the summary of drivers from the FY09 Business Plan.
Business Plan Section

Statement

Improve Reliability

Introduce leading measures to identify localised reliability problems

before they happen.

Improve Reliability

Increase the numbers of feeders and sectionalisation in the Eastern

Region to decrease the number of customers per feeder and improve
SAIDI.

Improve Reliability

Prepare the plan for greater sectionalisation and installation of

distribution automated switches and distance to fault relay at Kopu.

Improve Efficiency of
Operation

Continue with blitz-type programmes.

Return to Index

In summary, focus is to be on:

Reducing the numbers of customers per feeder;
Increasing the levels of sectionalisation and distribution automation; and
Improve our ability to foresee adverse customer reactions to reliability blow-outs.
Powerco has participated in the LEAPP reliability survey. The conclusions of the
LEAPP report and a report prepared by SKM on reliability improvement are outlined
in the Reliability Plan. The LEAPP report recommends a focus on network defects,
automation, clarification of accountabilities and make reliability matter, and review of
fault notification systems. The last two items still need to be actioned.
8.2.2.

8.2.3.

Reliability Road Map

Managing electricity network reliability requires a holistic approach to customer service

quality that involves every part of the electricity business and involves the entire life
cycle of the network assets. That is, there is an angle that affects reliability from the
conceptual planning phase, the design and construction phase, and the operation and
maintenance phases.

Protect
the
Backbone

Reliability Performance Comparisons

(Hardening and
Sectionalising

As set out in Section 5, Powercos SAIDI and SAIFI do not compare favourably with the
performances of other network companies of similar customer density. The variations
in SAIDI year on year can be attributed to storm activity: some of Powercos network
areas are highly susceptible to storms. The SAIFI is higher than other comparable
networks. Maintaining SAIDI at previous levels has been has been part of the strategy,
however network age is expected to increase, leading to a worsening of reliability.
To improve the inherent security of the network, there has been a focus on, for
example:
Improving the supply security of CBD and urban areas by reducing the number of
customers per feeder by constructing more zone substations. Note that expenditure
on this type of work will fall into either the expenditure category of (1) system growth
or (2) reliability, safety and environment.
Applying network automation to improve the supply restoration response times to
fault events. This includes installing loop automation schemes, fault locators and
fault indicators, ground fault neutralisers and reclosers.
To improve the underlying condition of assets there has been a focus on, for example,
blitzing (i.e. targeting asset replacement and renewal investment on) the worst
performing feeders. This targets renewal activity to where reliability is worst and seeks
the best value for dollar spent. Note that expenditure on this type of work will fall into
the asset replacement and renewal expenditure category.

Return to Index

3
PRONGED
APPROACH
Non Feeder Backbone
Initiatives
(Worst Performing Circuits,
Worst Performing devices,
UG Cable Replacement
& System Inspections &
Repairs, & Distribution
Automation)

Long-Term
Approaches
(System Capacity,
Overload, Refurbishment
& Replacement of Aging
Infrastructure)

Figure 8.1: Reliability Management Triangle

A mix of different time-framed initiatives is needed for a holistic approach. Some

reliability improvement initiatives can provide a quick short-term benefit at the expense
of longer-term reliability. (Like eating sugar, it gives a quick burst of energy, but after
a short time you feel hungry again). An example of short-term focus is curtailment of
planned shutdowns. Conversely, some initiatives have a long-term horizon (such as
new feeders and zone substations) where programmes are like working on a long
jigsaw puzzle and where some of the expenditures (like consents) may not provide any
reliability benefit for several years.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

173

This is a point communicated in a recent E21C presentation called Grid

Modernisation (Tony Saker, UMS, E21C Conference 2009) by means of the triangle
shown in Figure 8.1. This is a service interruption reduction programme that achieves
short-term performance targets and supports a long-term sustainable network. (Note:
In Figure 8.1, distribution automation was not part of the E21C paper and has been
added by us.)
Figure 8.2 is a map that outlines ways of maintaining and improving network reliability. It
guides our reliability works and maintenance planning process. It recognises that there
are six phases affecting supply outages to customers:
A network fault occurs, or an item of network equipment becomes unavailable;
Equipment unavailable for service causes an interruption to the supply to customers;
The interruption of supply is widespread or localised;
The cause and location of the fault needs to be identified;
Supply to as many customers as possible is restored in timely fashion; and
The faulted equipment is repaired in a quality and timely fashion.
While each of these phases requires a different focus from different parts of the
business, some elements of the network management process, such as the defect
management process, impact on reliability from every angle. The capital works and
maintenance strategy processes require attention from all of the focus areas.

174

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Figure 8.2: Reliability Management Map

SAIDI ( = SAIFI x CAIDI)
Faults per 100km of circuit

By Design &
Construction
Through
Maintenance
Through
Network Control

ASSET LIFECYCLE PHASE

By Concept

Initiatives are
characterised
by their phase
in the asset
lifecycle and
by the time
focus for
implementation
and achieving
the desired
objective.

Reduce incidence of faults on

network (prevent faults from
happening)

Reduce incidence of faults

causing interruptions (improve
resilience of network to faults)

Reduce numbers of customers

exposed to interruptions

Enable the cause of fault to be

pin pointed more efficiently.

Minimise CM impact to
customers exposed to
interruptions (non faulted parts)

Minimise CM impact to
customers exposed to fault
repair time (faulted parts)
Minimise Repair Impact
Restore supply to customers connected
to faulted parts of the network quickly &
safely. Restore damaged equipment to
its original condition. See Notes 1 & 3.

AT Service lines & feeder spurs fused

LT Improve ability to pin point the
ST Implement reclosers & sectionalisers location of faults through fault locators
& electronic fault indicators
ST Network open points well
configured
LT Reduce numbers of customers
per feeder
LT Sub transmission network security
through architecture, capacity &
redundancy levels appropriate

LT Improve backup ability of

distribution network through extra
feeder links and voltage regulation
MT Improve fault isolation through
sectionalisation
MT Increase levels of remote control
MT Implement feeder automation - eg
self healing networks

LT Improve backup ability on

distribution network
MT Implement greater sectionalisation,
more network switches

LT Reclosers properly set

AT Designs that allow simple isolation
and earthing for removing equipment
from service

LT Network equipment (cables,

overhead line) has the capability to
withstand multiple closures onto faults
during fault finding, documented asset
capability.
AT Designs that allow simple isolation
and earthing for removing equipment
from service

LT Networks designed so that cable

sections & line sections can be isolated
by switches
AT Limit customer numbers exposed
to repair time eg limit daisy chained
transformers
AT Designs that allow simple isolation
and earthing for removing equipment
from service
MT Complicated automation projects
well communicated to fault & operations
staff

AT Improve back up switching at LV

AT Improve ability to connect
generators for back up supply
AT Designs that allow simple isolation
and earthing for removing equipment
from service

AT Field staff have access to cable

fault locating equipment & have
capability to locate faults
AT Effective defects management

AT Improve local fault response

through availability and competency of
fault staff
AT Fault staff trained in automation
schemes
AT Effective defects management
AT Clear escalation process to meet
large outages

ST Optimise holdings of stores and

spares
AT Enhance reactive repair processes
for more timely repair
AT Effective defects management

Improve Fault Resilience

Improve network security - its ability
to ride through faults or shutdowns
without causing loss of supply longer
than 1 minute.

Reduce Customer Exposure

If an outage does occur, then limit the
number of customers it affects.

AT Asset design matches the terrain

and environment eg possum guards
& bird spikes installed where needed,
assets located out of harms way.
ST Asset renewal plan adequately
resourced and well targeted

LT Sub transmission network security

through architecture, capacity &
redundancy levels appropriate
MT Auto reclose applied to appropriate
feeders
MT Implement fault neutralisers

AT Well engineered asset component

specification
AT Well engineered asset configuration
eg minimise conductor clashes
AT Construction techniques & quality
well aligned to specifications (fit for
purpose)
AT Designs that allow simple isolation
and earthing for removing equipment
from service

LT Protection schemes well

engineered, implemented &
commissioned
AT Designs that allow simple isolation
and earthing for removing equipment
from service

AT Network well maintained in good

order & condition
ST Vegetation issues managed
AT Effective defects management
ST Eyes & ears - clear channels for field
staff to report network risks. Notice taken
of the risks.
AT Communication with 3rd party
diggers

AT Protection systems well maintained. AT Network fuses of correct size

implemented.
AT Field staff trained in operating and
maintaining the complicated schemes. AT Effective defects management
AT Effective defects management

AT Human error incidents reduced

AT Operations staff trained in using
through training & competency
the fault neutralisers and protection
equipment
ST Planned outages optimised and
well coordinated
AT Network operating within its normal
capacity and configuration
ST Operational risks well managed

CAIDI (average length of interruption for the customers)

Improve Outage Restoration

For customers that are affected, isolate
and minimise the faulted part & restore
supply to customers connected to non
faulted network parts quickly & safely.
See Note 2.

Fault Prevention
Rectify the underlying root cause of
faults. Schedule planned outages
carefully.

LT = Long Term
MT = Medium Term
ST = Short Term
AT = All terms
Return to Index

SAIFI (average number of faults experienced by the customers)

Effective Fault Location

If a fault does occur, then pin point
its location quickly so that supply
restoration can occur effectively and
repair efforts begun. See Notes 1, 2
& 3.

AT Maintain close working environment AT Improve local response through

with field staff at all levels
effective information flow to fault staff
& controllers
AT Improve information available to
controllers about the fault through
SCADA.
AT Improve systems & procedures
used by controllers for locating faults.

AT Improve local response through

AT Improve systems for recording &
effective information flow between fault monitoring network (red pin) defects.
staff & controllers
AT Improve network controller decision
making, clear procedures, good training
AT Operations staff trained in using
automation schemes
AT Improve systems & procedures
used by controllers for isolating faults.

Note 1: Quick fault location and repair also means that innate network security can be restored leading to lower risk of outage.
Note 2: For some faults, locating the fault and outage restoration is done at the same time.
Note 3: Locating a faulted piece of cable often has to be done as part of repair.
Note 4: Effective defects management is needed at all phases
Note 5: Close operational liaison with field staff needed at all levels
ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

175

8.2.4.

Reliability Performance Lagging Measures

8.3.

Maintenance of the supply reliability to Powercos customers will be delivered by

adoption of Automation and Renewal philosophies. Powerco runs a reliability-driven
overhead line renewal programme in which the aim is to maintain adequate reliability of
supply (refer to Section 6.6).

Lagging measures of reliability performance include regularly monitoring the measures

set out in Section 4. These include:
Numbers of faults per length of line;
Numbers of interruptions per length of line;

The reliability plan uses the key performance indicators outlined in Section 4 to derive
a five-year plan of automation and renewal projects that seeks to maintain the supply
reliability performance of Powercos network. The plan ranks the projects derived to
ensure a maximum reduction of interruptions for the money spent.

Number of customers per interruption;

SAIFI;
CAIDI; and
SAIDI.

8.2.5.

8.3.1.

Automation Philosophy

Feeder performance is monitored monthly and regional performance tends to be monitored annually.

According to the IEEE PES DA Tutorial 1998, automation is a set of technologies

that enable an electric utility to remotely monitor, co-ordinate, and operate distribution
components in a real-time mode from remote locations.

Reliability Performance Leading Measures

The driving forces for automation are to:

Leading measures of reliability performance include:

To reduce the effects of MAIFI (auto-reclose) on modern appliances;

Respond to growing customer expectations towards reductions in outages;

Age profile indicators there is a direct comparison between faults caused by

defective equipment and the age and condition of network equipment;

8.2.6.

Automation - Reliability Improvement

Reduce the consequence of service interruptions and power quality problems;

Network security security represents the resilience of the operation of the network
to equipment outages, for example, its back-up ability; and

Maintain SAIDI;

Availability of fault staff if adequate numbers of fault staff are not available to the
network operations team, then we can expect that fault response times will be
longer than they could be.

Improve efficiency;

Forecast renewal needs for the network result from the equipment condition records
and from asset age profiles. These are indicating that network renewal expenditures will
have to increase if the numbers of faults (defective equipment) are to remain as they are.
Through the worst performing feeder process, we are forecasting a trend of increasing
faults causing interruptions. The age profiles show that the need for overhead hardware
replacement in the Western Region is growing. These point to a need for additional general renewal work being needed in coming years, especially in the Western Region.

Improve workforce productivity.

Global Network Reliability vs Localised Reliability

When analysing reliability performance, it needs to be borne in mind that regional reliability trends can mask local level supply reliability issues. Local level reliability issues
are reviewed through the worst performing feeder process and reported on monthly.
The FIDI performance of feeders by type is presented in Section 7.5.

Continually improve our propositions to customers;

Improve asset utilisation;
Detect equipment problems earlier; and

8.3.2.

Automation to be Applied at Zone Substations

The long-term intention is that zone substations will be fully automated. This may
include full measurement and control of all network elements as follows;
Circuit-breakers;
Where electro-mechanical protection equipment is employed, a minimum of earth
fault and over-current is expected for indication and control purposes;
Where numeric relays equipment is employed, it is envisaged all alarm points will be
monitored for indication and control purposes;
Auto-reclose functionality should be enabled and remotely controlled where
applicable;
Transformers; and
Voltage, load indication and tap change control and indication.

176

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

8.3.3.

Where ICP numbers exceed 1200 customers on a feeder, or the feeder represents F1,
F2 or CBD feeders, then a mid-feeder remote switch/recloser (in conjunction with fault
indicators) may be installed on either air break or underground switch sites. Where ICP
numbers exceed 1500 customers on a feeder, or the feeder represents F1, F2 or CBD
feeders, then a mid-feeder remote switch/recloser, and a remote open point switch
may be installed on either air-break or underground switch sites.

Automation to be Applied on Subtransmission Networks

Automation for subtransmission is considered on a case-by-case basis. However, in

general, indication and measurement of 33kV circuit-breakers may be applied, and
follow rules to be applied to distribution feeders.
As a long-term benchmark goal, spur line subtransmission circuits over 15km in length
could utilise mid-circuit air-break switches or reclosers for fault isolation. Spur line
circuits may have distance-to-fault indication installed, initially installed on cross-country
feeders and to have approximately one LFI site per 5km of circuit length placed at
strategic locations.
8.3.4.

Some opportunities exist where the remote control of normal open point switches can
reduce outage times. In such cases, a remote-controlled device may be considered.
Where the total number of ICPs between both reclosers is more than 700, or a line
length exceeding 50km is found, a remote device may be installed.

Automation on Distribution Networks

There are situations where primary backfeed for a substation without an N-1 supply is
required to be fed by 11kV due to a fault on the subtransmission network. The option
of installing remote switches may be considered for up to three sites to give adequate
backfeed capacity to the substation during off-peak load periods.

Reclosers and sectionalisers are used to sectionalise and isolate commercial, urban,
rural and remote rural ICPs, as well as long feeders.
The basic configuration is that a recloser should be installed past a feeder circuitbreaker to sectionalise for different zoned ICPs, or strategically sited for the feeder
length, based on faults per km in that region. Two reclosers are generally not installed
downstream of each other due to protection discrimination issues, and, where
additional devices are required a sectionaliser should be considered.
SCADA communications are generally required to be installed where possible.
One device may be installed per 30km of feeder where ICPs increase by 500
consecutively, with the layout of the feeder determining what type of device is required
(a poor performing feeder could have an additional device added to the feeder).

Remotely controlled switches may be installed when travel times for fault staff are
excessive to operate frequently used switches, when sectionalising a feeder or applying
backfeeds during unplanned outages.
8.4.

Regional Reliability Performance Review

The graphs in Figure 8.3 regionalise the trends in Figure 5.4. These are lagging measures (in that they look at historical performance) of the unplanned reliability performance
of Powercos regions according to each of the phases. Figures 8.4, 8.5 and 8.6 look at
the 2009 year. These highlight focus areas needing special attention (purple rings).

New voltage regulator installations tend to be SCADA enabled for indication and
control. Existing distribution regulators may be retro-fitted for SCADA operation.
Strategically placed at feeder extremities and open points, current and voltage sensors
may provide real-time voltage and line current monitoring during backfeeding for fault
conditions and planned outages.
Rapid fault location on rural networks minimises outage times. One method of
improving response times is the installation of Line Fault Indicators (LFI) to segment
the area to be patrolled. Each new LFI site will receive an individual asset ID to
allow maintenance strategies to be implemented to ensure reliability, and all SCADA
representation updated, as appropriate. As technology allows, remote monitor LFIs will
be installed. Presently, a cost-effective method is not available for universal application.
Underground networks may have Electronic Fault Indicators (EFI) applied to aid locating
faults. New work will consider the installation of additional EFIs.
Automation should be considered at mid and open points along the feeder; this will
include EFIs and SCADA control indication.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

177

0
2006

2007

2008

2009

2008

2009

2008

2009

2008

2009

Regional Unplanned SAIDI excl storms

Regional Faults (excl planned shutdowns) per 100km HV cct excl storms
300

25

250
20

SAIDI Minutes

200
15
10

150
100
50

5
0
0
2006

2007

2008

2006

2009

2007

Regional Unplanned SAIFI excl storms

Regional Unplanned Interruptions per 100km HV cct excl storms

20

SAIFI

15

10

3
2
1

0
2006

2007

2008

2006

2009

Ratio Customers per Interruption (Unplanned) excl storms

2007

Regional Unplanned CAIDI excl storms

160

1000

140
120

800

100
600

80
60

400

40
200

20
0

0
2006

2007

2008

2006

2007

2009

Figure 8.3: Historical Regional Reliability Performance

Notes:
A: The number of faults is the number of times that pieces of network equipment fail to be able to carry electricity. They can be removed from service automatically or manually. They include faults that cause interruptions,
auto-recloses and faults that do not cause interruptions to customers. They exclude part-power incidents.
B: Powercos targeted number of faults per 100 km of line is 14 for distribution lines and 6 for 33kV and 66kV subtransmission lines. Based on these, Powercos actual number of faults per 100km is higher, however it is not
likely that these targets count auto recloses.
C: Powercos recording processes have evolved over time so that we are gathering information about more types of faults that dont cause interruptions than was collected previously.
Regional Unplanned SAIDI excl storms
D: The number 300
of interruptions is the number of times that any customer-experiences a loss of supply for greater than one minute.
E: SAIFI is the average number of interruptions, greater than one minute that customers in the region experience.
250
RC - Valued at Current Cost of Renewal
F: SAIDI is the average number of minutes In whichh customers in the region experience, for interruptions longer than one minute.

178

IDI Minutes

200
150
ASSET MANAGEMENT PLAN
ELECTRICITY NETWORKS FY2010 FY2019
100

9 Year Average RC - Valued at Current Cost of Renewal

Age (Years)

Return to Index

% Faults causing
Interruptions

Faults / 100km

WR

COR

TGA

WR

Minutes /
interruption

TGA

WR

COR

Adverse Environment

0.0

0.1

0.0

Adverse Weather

2.5

1.9

4.1 38% 31% 19%

567

74

225

63

Defective Equipment

5.6

4.9

6.1 89% 92% 89%

503

129

695

80

111

65

Foreign Interference

3.4

2.2

1.3 97% 95% 87% 1066

407

443

49

57

102

Human Error

0.1

0.1

0.2 67% 50% 50% 3009

195

365

24

18

Lightning

0.3

0.3

1.0 33%

908

65

Planned Outage

TGA

Customers/
interuption

100%

0% 53%

COR

TGA

43

COR

Manawatu 2009
Unplanned

Taranaki 2009
Unplanned

Wairarapa 2009
Unplanned

Wanganui 2009
Unplanned

Coromandel 2009
Unplanned

South Waikato 2009

Unplanned

Tauranga 2009
Unplanned

159

80 3390

279

WR

78

13.0

8.9

8.9 84% 91% 90%

86

46

370

171

225

88

Tree

1.4

2.0

1.2 86% 97% 85%

657

112

360

73

153

60

Unknown

5.7

5.1

8.0 26% 30% 17% 1151

288

935

32

75

104

Total

32.1 25.5 30.8 72% 74% 59%

449

134

653

67

108

76

Total Unplanned

19.1 16.6 21.9 64% 65% 47%

775

199

870

57

88

73

23.1 18.9 18.3

12.2 10.8 10.4

Asset design matches the terrain and

environment eg possum guards & bird
spikes installed where needed, assets
located out of harms way.
Asset renewal plan adequately
resourced and well targeted
Network well maintained in good order
& condition
Effective defects management
Eyes & ears - clear channels for field
staff to report network risks. Notice
taken of the risks.
Communication with 3rd party diggers

Service lines & feeder spurs fused

Implement reclosers &
sectionalisers
Network open points well
configured
Network open points well
configured
Reduce numbers of customers
per feeder

Increase
levels of
remote
control

Subtrans Cable
Zone Sub
Dist Line
Dist Cable

Sub transmission network

security through architecture,
capacity & redundancy levels
appropriate

Figure 8.4: Tauranga, Coromandel and Wairarapa Reliability by Cause (year to 31 March 2009)

Return to Index

Subtrans Lines

Implement
feeder
automation
- eg self
healing
networks

Dist Equip
Subtrans Equip

Figure 8.5: Regional Pie Charts of Unplanned SAIDI by Faulted Equipment Type

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

179

Figure 8.6: Faults and Interruptions by voltage.

Wanganui
Manawatu

180

Faults Interrupts

Length
(km)

Faults/
100km

Ints/
100km

EEA
Target

11kV UG

26

24

285

9.1

8.4

11kV OH

413

233

2462

16.8

9.5

14

33kV UG

32

3.1

0.0

33kV OH

55

289

19.0

2.8

Taranaki

Faults Interrupts

Length
(km)

Faults/
100km

Ints/
100km

EEA
Target

6.6/11kV
UG

186

4.3

3.2

6.6/11kV
OH

518

301

3028

17.1

9.9

14

33kV UG

15

13.3

6.7

33kV OH

58

14

344

16.9

4.1

Faults/
100km

Ints/
100km

EEA
Target

Notes

Underlying issue - historical jointing

methods.

35 auto recloses on the

Mangamaire 33kV system
Notes

Tauranga

Faults Interrupts

11kV UG

31

26

553

5.6

4.7

11kV OH

294

183

1407

20.9

13.0

14

33kV UG

36

0.0

0.0

33kV OH

34

14

145

23.4

9.7

Valley/
Coromandel

Faults Interrupts

Length
(km)

Faults/
100km

Ints/
100km

EEA
Target

11kV UG

21

12

423

5.0

2.8

11kV OH

636

294

3295

19.3

8.9

14

33kV UG

17

0.0

0.0

33kV OH

27

256

10.5

2.0

66kV UG

0.0

0.0

66kV OH

19

151

12.6

4.6

Coromandel 66kV reconstruction

Faults/
100km

Ints/
100km

EEA
Target

Notes

Wairarapa

Faults Interrupts

11kV UG

49

0.0

0.0

11kV OH

255

179

1902

13.4

9.4

14

33kV UG

0.0

0.0

33kV OH

30

15

193

15.5

7.8

Length
(km)

Faults/
100km

Ints/
100km

EEA
Target

6.6/11kV
UG

54

5.6

3.7

6.6/11kV
OH

319

113

2497

12.8

4.5

14

22kV UG

0.0

0.0

22kV OH

23

121

19.1

1.7

14

33kV UG

57.1

57.1

33kV OH

15

134

11.2

4.5

Notes

2 faults at Roberts Ave caused this

statistic

Graphs in Figures 8.4 to 8.6 present further information on the reliability trends. These
highlight several areas of tactical response:

Length
(km)

Length
(km)

Faults Interrupts

Notes

22 of the faults had unknown

cause.
Notes

Autorecloses in Waihou and

Waikino areas

Numbers of faults per unit of line length in Coromandel and Tauranga are higher than
other regions. This indicates extra focus is needed on network renewal, vegetation
control and foreign interference in these areas. In recent years, we have been acting
on this by increasing spending on overhead line renewal in the Eastern Region
spending has been at levels significantly above what the age profiles would indicate
as reasonable. However, forecasts are now showing that we should be increasing
our renewal activity in Western Region areas too.
The Manawatu overhead subtransmission system is getting a large number of autorecloses, mainly due to the condition of the Pongaroa lines, which will be a focus of
renewal.
The 33kV networks in the Tauranga, Waihou, Waikino, Greytown and Masterton GXP
regions are exhibiting a large number of faults that do not cause interruptions. These
interruptions are largely of unknown cause.
Numbers of customers affected by interruptions are high in Coromandel and
Tauranga. This indicates a need for subtransmission reinforcement, fusing of feeder
spurs and extra zone substations and feeders in these areas. This is recognised
in past Business Plans, where Coromandel has been a focus for subtransmission
expenditure, and has been recognised in capital works plans for several years with
money going towards Tauranga zone substations and new feeders.
Response times to restore supply to customers are long in Wairarapa. This implies a
need to focus on SCADA-isation in this area. This point probably needs extra focus
in works plans.

14 faults had unknown cause

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

8.5.

The graphs given below illustrate overall trends in the number of feeders that are found
to be falling short of target each year. They also illustrate the actual performance of
feeders that are not meeting the target for their class.

The capital works plans reflect these tactical focus points by targeting capital budget
towards:

These graphs now include the storm activity, whereas in previous years storms were
excluded.
Feeder Class F1 FIDI

A high number of faults have been caused in the Palmerston North underground
distribution system. This is due to a combination of historical joint types, treeing
cable and human error-type issues. It indicates a need for targeted scheduled
cable renewal. For tin can joints, the joints need to be identified and prioritised for
replacement (estimated cost $5,000 per joint). For treeing cable, carry on with the
current practice of replacing failed sections of cable when identified.

Continuation of the customer consultation process Is useful, targeted to the likely

customer dissent areas (refer to Section 6).
Continue to maintain and monitor the availability and adequacy of fault response
crews.
The defects process features in every step of the network reliability of supply
improvement process. The existing defects process (BMS 399S015) is out of date
and should be updated to reflect the actual process. The defects process could
perhaps be integrated more into an end-to-end network renewal and maintenance
process.

Return to Index

800
600
400
200

Planned

Threshold

Kopu

Wharf

Kennedy Drive

Arapuni St

Eltham Town North

Unplanned

Lorne St

0
Lomond Ave

Human error incidents need continued attention. Training - initial and ongoing needs to be provided to switch operators in the use of ground-mounted switch
operation. The Main Street switch building, once the 33kV switchboard has
been removed, could be used as a training room. Redundant ground-mounted
switches can be installed to allow hands-on operations, which would also include
all operations and communications with the control centre. NOC should review the
checking of switching operation orders for accuracy.

1,000

Matapu

Other points include:

1,200

Woods Rd

Fitting of SCADA to zone substations that do not have SCADA, particularly in

Wairarapa. Improving the controllability of reclosers in the network.

1,400

Mccabe Road

New zone substations and extra feeders in Tauranga.

1,600

FIDI Minutes

Subtransmission reinforcement projects in Coromandel and Tauranga. Leading

indicators show that focus should go into the Palmerston North subtransmission
network because of the continued demand growth that it has had in recent years.

Worst Performing Feeders - Class F1

1,800

Mangatoki

8.5.1.

Manaia

Network renewal, particularly on overhead lines, in Coromandel, Hauraki Plains

areas and Tauranga. Forward indicators show we should be increasing renewal
activity in the Western Region. The renewal should be focussed on hardening the
distribution feeder trunks and on subtransmission, particularly on lines supplying N
security zone substations.

Worst Performing Feeder Analysis

Crane Supply

Reliability Tactical Overview

Bell Block 4

8.4.1.

Figure 8.7: Worst Performing Feeders Class F1.

VALLEY, MCCABE ROAD Seven outages occurred, with tree contacts accounting for
67% of the FIDI minutes. This is a F1/F4 feeder with recloser installed, and 320 ICPs.
Larger faults were generally past recloser. No works are planned for FY2011.
TARANAKI, BELL BLOCK 4 Three unplanned outages, with a tornado accounting for
75% of the FIDI minutes. No works are planned for FY2011.
TAURANGA, CRANE SUPPLY One fault occurred, due to a cable fault. This feeder
has 66 ICPs. No works are planned for FY2011.
TARANAKI, MANAIA Six unplanned outages, with defective equipment listed as the
fault mechanisms. All outages have occurred on the F4 portion of the feeder. A recloser
is planned to be installed to separate the F1 part of the feeder to the F4 part of the
feeder in FY2011.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

181

TARANAKI, MANGATOKI Eight unplanned outages and two planned outages have
accounted for the FIDI minutes listed against the feeder. The feeder has a recloser on
the F1/F4 boundary. Eight outages were beyond the recloser and did not affect the
major customer. No further work is planned for FY2011.

8.5.2.

Feeder Class F2 FIDI

Worst Performing Feeders - Class F2
1,000
800

TARANAKI, MATAPU Seven planned outages, further work is planned for FY2011
with line reconstruction work carried out on the feeder in FY2010.

600

VALLEY, LORNE ST Four outages occurred, with defective equipment and unknown
causes being 48% and 38% respectively. This feeder has 37 ICPs.
TARANAKI, ELTHAM TOWN NORTH Three unplanned outages, with car vs pole
accounting for 96% of the FIDI minutes. No further work is planned for FY2011.
VALLEY, ARAPUNI ST Three outages occurred, with two planned shutdowns
accounting for 96% of the FIDI minutes.
VALLEY, KENNEDY DRIVE Four outages occurred, with planned shutdowns and
defective equipment being 76% and 23% respectively. A remote open point is planned
for 2011. This feeder will be changed from a F1/F3 to a F2/F3 rating due to its small
industry presence.
TAURANGA, WHARF One outage occurred, from machinery contacting lines. This
feeder has 38 ICPs.
VALLEY, KOPU Four outages occurred, with two planned shutdowns accounting for
75% of the FIDI minutes. This feeder has 407 ICPs. Overhead reconstruction and cable
upgrade projects are planned for FY2010.

400
200
0
Armstrong St
Waingawa Rd
Te Aroha
Borough Linton
South Rd Chapel
Aokautere
Brooklands 18
Maleme St
Waihi Rd
Aramoho Inland
Taupo 2
Newton St
Aerodrome
Bent St
Moturoa 5
City 8
Bell Block 5
Waterworks Rd
Wyndham St
Queen St
18th Ave
Crown
Hewletts Rd
Mural Town
Colombo Rd
Pahiatua
Port Rd
Works
Head Office
Koromiko St
Ohakea

VALLEY, LOMOND AVE One outage occurred from faulty switchgear. This feeder
should be changed from a F1/F3 to a F2/F3 rating due to small industry presence.

FIDI Minutes

VALLEY, WOODS RD Three outages occurred, with one fault from possum contact,
accounting for 92% of the FIDI minutes. This feeder has 37 ICPs.

Unplanned

Planned

Threshold

Figure 8.8: Worst Performing Feeders Class F2.

MASTERTON WAINGAWA ROAD Two unplanned and two planned outages

account for the FIDI minutes. The planned outages were for line reconstruction and
the majority of FIDI minutes were due to a truck vs pole. No further work is planned for
FY2011.
VALLEY, TE AROHA BOROUGH Nineteen outages occurred, with unknown cause
and planned shutdowns, being 28% and 26% respectively. The largest fault cause was
from tree contacts. Eleven of these outages were planned. This is a F2/ F4 feeder with
a recloser installed at the township boundary, and 1,100 ICPs. A recloser has been
installed and section of conductor upgraded in 2009.
MANAWATU, LINTON Twenty outages have been listed against the feeder. Adverse
weather has accounted for 60% of all the outages. An auto changeover scheme for
the major customer on the feeder is planned for FY2010. Recloser installation and
upgrades are also planned for FY2010.
MASTERTON, SOUTH CHAPEL Four planned and two unplanned outages have been
listed against the feeder. The two unplanned outages were due to vehicles hitting poles
and the planned outages were for line reconstruction. No further work is planned for
FY2011.
TARANAKI, BROOKLANDS 18 Five unplanned outages occurred and storm damage
is listed as the main fault mechanism. No further work is planned for the feeder in
FY2011.

182

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

TAURANGA, MALEME ST Ten outages occurred, with defective equipment and tree
contacts being 40% and 28% respectively, and the largest fault resulting from a cable
failure. This feeder should be changed from a F2/ F4 to a F3/ F4 feeder as the Maleme
Express feeder has now been commissioned.

TAURANGA, 18TH AVE Three outages occurred, with one single car vs pole incident
accounting for 65% of the FIDI minutes. A new recloser has been proposed for FY2011
due to 1,050 ICPs being on the feeder.

TAURANGA, WAIHI RD Six outages occurred, with five from planned shutdowns
accounting for 59% of the FIDI minutes.

MANAWATU, CROWN Two unplanned outages have been listed against the feeder.
A transformer failure caused 50% of the FIDI minutes and a car versus pole accounting
for the remaining minutes. No further work is planned for the feeder in FY2011.

WANGANUI, ARAMOHO INLAND Two unplanned outages have been listed against
the feeder, with a car vs pole accounting for 80% of the FIDI minutes. No further work
is planned for FY2011.

TAURANGA, HEWLETTS RD Five outages occurred, with the major one resulting
from a reported bird strike accounting for 61% of the FIDI minutes. Minor overhead
reconstruction works are planned for FY2011. This feeder has 44 ICPs.

WANGANUI, TAUPO 2 One unplanned outage caused all FIDI minutes listed against
the feeder, no cause was found. No further work is planned for FY2011.

TAURANGA, MURAL TOWN Ten outages occurred, with defective equipment and
planned shutdowns being 50% and 42% respectively. Minor overhead reconstruction
works are planned for FY2010. This feeder had ICPs reduced and moved to the
adjacent Tetley Rd feeder.

TAURANGA, NEWTON ST Eight outages occurred, with planned shutdowns and

foreign interference being 45% and 40% respectively, with the largest fault resulting
from a truck vs pole. Minor overhead reconstruction work is planned for FY2011, and
the proposed new Omanu Sub will reduce the 1,210 ICPs on this feeder.
TAURANGA, AERODROME Eight outages occurred, with foreign interference and
adverse weather being 38% and 31% respectively, with the largest fault resulting
from a car vs pole. Major overhead reconstruction work was completed in 2009. The
proposed new Omanu Sub will reduce ICPs on this feeder.

MASTERTON, COLOMBO ROAD Two unplanned outages were listed against the
feeder, with a car vs pole and an unknown outage as the fault mechanisms. No further
work is planned for the feeder.
MANAWATU, PAHIATUA Five unplanned and eight planned outages were listed
against the feeder. Major line reconstruction as been carried out on the feeder during
FY2010. No further work is planned for FY2011.

VALLEY, BENT ST Five outages occurred, with defective equipment and human
element being 49% and 42% respectively. This feeder has been recently reconfigured
to balance ICPs and provide easier backfeed capacity should adjacent feeders fault.

VALLEY, PORT RD Two outages occurred, with the largest from a planned shutdown.
A new recloser has been installed, a remote open point planned for 2010, and minor
overhead reconstruction works planned for FY2011.

TARANAKI, MOTUROA 5 Six unplanned outages have been listed against the feeder.
Three unplanned outages were due to vehicles hitting poles, 85% of all FIDI minutes. A
recloser installation on the F2/F4 boundary is planned for FY2011.

MANAWATU, WORKS A failed cable pothead caused all FIDI minutes listed against
the feeder. No further work is planned for FY2011.

TARANAKI, CITY 8 Two outages account for KPIs against the feeder. A transformer
was installed during a planned shutdown and then failed 12 hours later. No further work
is planned for the feeder in FY2011.

MASTERTON, HEAD OFFICE A truck vs pole caused all FIDI minutes listed against
the feeder. No further work is planned for FY2011.

TARANAKI, BELL BLOCK 8 Seven unplanned and two planned outages have been
listed against the feeder. Tree contacts have been listed as the main fault mechanism.
Tree trimming is planned and a recloser is to be installed in FY2010.
MASTERTON, WYNDAM STREET Four unplanned outages have been listed against
the feeder. A truck vs pole accounted for 80% of all FIDI minutes. No further work is
planned for FY2011.
VALLEY, QUEEN ST Four outages occurred with two car vs pole incidents accounting
for 77% of the FIDI minutes. Major overhead reconstruction works are planned for
FY2011 and, due to 1300 ICPs on the feeder, a new recloser in FY2012.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

183

8.5.3.

Feeder Class F3 FIDI

Worst Performing Feeders - Class F3
2,000

MASTERTON, SOMERSET ROAD Three unplanned and nine planned outages have
been listed against the feeder. Reconstruction work has been carried out in FY2010.
No further work is planned in FY2011.

FIDI Minutes

1,500

TAURANGA, TARA RD Eight outages occurred, with defective equipment and foreign
interference being 50% and 44% respectively. The two largest faults resulted from car
vs pole incidents, and a blown jumper from tree contacts. This feeder has 1,850 ICPs,
with a recloser and remote open point installed, and major overhead reconstruction
works planned for FY2011.

1,000

500

Shaw Ave
Factory
Bureta Rd
Tarata
Totara St
Purangi
Ashhurst
Somerset Rd
Tara Rd
Thames Coast
Welcome Bay
Bellevue Rd
Pascal St 9
Belvedere
Kiwi St
Glover Rd
Ohauiti
Mossops Rd
Wairoa
Totara
Keith St 22
Gordon St
Ngatea
Cemetery
Denbigh
Marangai
Revans St
Eltham Town
West St
Green Park
Brooklands 5
Coradine St
City 10
Cologne St
Keith St 23
Beach Rd Waihi
Bell Block 2
Rata St
Moturoa 9
Miro St
Roberts Line
Kauri St
Awapuni

Unplanned

Planned

Threshold

Figure 8.9: Worst Performing Feeders Class F3.

VALLEY, SHAW AVE Four outages occurred, with tree contacts and lightning being
55% and 40% respectively, and the largest fault resulting from tree contacts. This
feeder has 320 ICPs, with major overhead reconstruction work is planned for FY2011.
FACTORY The feeder is classed as a F3 but has only one ICP, a mostly disused
factory. One unplanned outage on the feeder has been listed. No further work is
planned for the feeder.
TAURANGA, BURETA RD Four outages occurred, with two from car vs pole incidents
accounting for 94% of the FIDI minutes. This feeder has 1,043 ICPs, with major
overhead reconstruction work is planned for FY2011.
VALLEY, TOTARA ST NORTH This feeder is located near the Port in Mt Maunganui.
The Omanu zone substation should provide a means of sectionalising this feeder and
backing it up.
VALLEY, PURANGI Nineteen outages occurred, with 58% of the FIDI minutes
resulting from defective equipment. Two major events occurred from a cable fault and a
car vs pole. Two reclosers and a remote open point exist. This feeder has 1,700 ICPs.
FY2010 projects include upgrading the recloser to full loop automation and transferring
approximately 500 ICPs to an adjacent feeder after a new link-line and cable are
constructed.

184

MANAWATU, ASHHURST Six unplanned outages and one planned outage have been
listed against the feeder. Trees falling during high winds from outside the required cut
zone have cause the majority of FIDI minutes listed against the feeder. No further work
is planned for FY2011.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

VALLEY, THAMES COAST Nine outages occurred, with a foreign interference and
adverse weather being 29% and 21% respectively, and the largest fault resulting
from the public cutting trees that made contact with the lines. This feeder has 1,680
ICPs with a recloser and sectionaliser installed. The sectionaliser is to be upgraded
(complete with SCADA), and a new 11kV link line is planned.
TAURANGA, WELCOME BAY Eight outages occurred, with a defective RMU and
cable accounting for 76% of the FIDI minutes. This feeder has 1350 ICPs with a
recloser and remote open point installed. Major overhead reconstruction works planned
for FY2010.
TAURANGA, BELLEVUE RD Six outages occurred, with foreign interference and
planned shutdowns being 57% and 43% respectively. Tthe largest fault resulted from
car vs pole, and four outages were planned. This feeder has 1,130 ICPs, with major
overhead reconstruction works and a proposed recloser planned for FY2011.
MANAWATU, PASCAL 9 - Four unplanned and two planned outages have been listed
against the feeder. Unplanned outages were due to cable joints failing and two foreign
interference faults. The planned outages were for line reconstruction work. No further
work is planned for the feeder in FY2011.
MASTERTON, BELVEDERE Three unplanned outages and one planned outage have
been listed against the feeder. The planned outage accounted for 40% of the FIDI
minutes. One storm outage accounted for 50% of FIDI. No further work is planned for
FY2011.
WANGANUI, KIWI ST Four unplanned and one planned outage have been listed
against the feeder. Two faults caused by adverse weather account for 70% of FIDI.
TARANAKI, GLOVER ROAD WEST - Four unplanned and seven planned outages were
listed against the feeder in the reporting year. Major reconstruction work has been
carried out in FY2010. No further work is planned for FY2011.

Return to Index

TAURANGA, OHAUITI Eight outages occurred, with defective equipment and

unknown cause being 58% and 28% respectively, and the largest fault caused by
a defective RMU bus-coupler unit. This feeder has 1,600 ICPs, with two reclosers
installed. Major overhead reconstruction, overhead upgrade works, and recloser
upgrade work is planned for FY2011.
VALLEY, MOSSOPS RD Four outages occurred, with unknown cause and defective
equipment being 55% and 37% respectively, the largest fault resulted from a unknown
cause from suspect cable fault. This feeder has 970 ICPs with a recloser installed.
TAURANGA, WAIROA eight outages occurred with foreign interference and adverse
weather being 38% and 37% respectively. The largest fault from an unknown cause.
This feeder has 1,672 ICPs, with a recloser installed. Minor overhead reconstruction
and major overhead upgrade work was completed in for 2009, with a new loop
recloser planned for FY2011.
VALLEY, TOTARA Fifteen outages occurred, with planned shutdowns accounting for
65% of the FIDI minutes from seven outages. This feeder has 545 ICPs, with a recloser
installed. Major overhead reconstruction work is planned for FY2011.
MANAWATU, KEITH 22 One unplanned outage, due to a cable termination failing and
one planned outage for switch maintenance, have been listed against the feeder. No
further work is planned.
MASTERTON, GORDON ST Four unplanned outages have been listed against the
feeder. Storm damage accounts for 99% of the KPI FIDI. No further work is planned for
FY2011.
VALLEY, NGATEA Thirteen outages occurred, with unknown cause and foreign
interference being 36% and 32% respectively, and the largest fault resulting from a car
vs pole incident. This feeder has 930 ICPs, with a recloser installed, although has a
significant amount rural network and is a F3/F4 rating. Minor overhead reconstruction
works planned for FY2010.
WANGANUI, CEMETERY Three unplanned outages were listed against the feeder.
Cable failure accounted for over 50% of FIDI minutes. No further work is planned for
FY2011.
MANAWATU, DENBIGH Three unplanned and one planned outage have been listed
against the feeder in the reporting year. The faults were cable failures. No further work
is planned in FY2011.
WANGANUI, MARANGAI Six unplanned and four planned outages have been listed
against the feeder. Major reconstruction work has been carried out on the feeder.
Further reconstruction work is planned for FY2011.

MASTERTON, WEST STREET One unplanned outage and one planned outage were
listed against the feeder. No further work is planned in FY2011.
TAURANGA, GREEN PARK Eight outages occurred, with foreign interference and
planned shutdowns being 70% and 22% respectively, and the largest fault resulting
from a car vs pole incident. This feeder has 1,135 ICPs, with a recloser installed. Minor
overhead reconstruction work is planned for FY2010.
TARANAKI, BROOKLANDS 5 - Thirteen unplanned and nine planned outages have
been listed against the feeder. A line condition patrol is required to be completed on the
feeder to identify the fault mechanisms.
CORADINE ST One unplanned and four planned shutdowns are listed against the
feeder. The feeder has had reconstruction work carried out in FY2009, which accounts
for over 90% FIDI. No further work is planned.
TARANAKI, CITY 10 One unplanned and five planned outages have been listed
against the feeder. The unplanned outage was due to a cable failure. No further work is
planned in FY2011.
COLOGNE ST Seven unplanned and five planned shutdowns are listed against
the feeder. Tree trimming and line reconstruction have been carried out. All planned
outages have been beyond the recloser on the urban/rural boundary on the feeder.
Further tree trimming is planned to be carried out in FY2011.
MANAWATU, KEITH 23 Four unplanned and eight planned outages have been listed
against the feeder. Unplanned outages have included switching errors and cable failure.
Planned outages have been carried out for switch maintenance. No further work is
planned for the feeder in FY2011.
VALLEY, BEACH RD WAIHI BEACH Four outages occurred, with three from planned
shutdowns accounting for 85% of the FIDI minutes. A new feeder is due to be
completed in 2010 and will transfer some of the 980 ICPs currently on this feeder.
TARANAKI, BELL BLOCK 2 Ten unplanned and three planned outages have been
listed against the feeder. A line condition patrol is required to be completed on the
feeder to identify the fault mechanisms.
TARANAKI, RATA STREET One unplanned outage and two planned outages were
listed against the feeder. Planned outages have accounted for over 95% of FIDI minutes
listed. No further work is planned for the feeder in FY2011.
TARANAKI, MOTUROA 9 Twenty unplanned and six planned shutdowns were listed
against the feeder. Planned works have included cross-arm replacement and conductor
replacement. Line reconstruction work is planned for FY2011.

TARANAKI, ELTHAM TOWN Four unplanned outages, due to lightning strikes, were
listed against the feeder. No further work is planned.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

185

8.5.4.

MASTERTON, WESTMERE GLADSTONE Nine unplanned and nine planned

outages have been listed against the feeder. The main fault mechanism has been tree
contact. Powercos tree contractor has cleared trees off the feeder and the number of
unplanned outages is decreasing. No further work is planned for FY2011.

Feeder Class F4 FIDI

Worst Performing Feeders - Class F4
2,500

VALLEY, TIROHIA-KARANGAHAKE Nineteen outages occurred, with adverse weather

accounting for 81% of the FIDI minutes from eight faults. This feeder has 580 ICPs,
with one recloser installed. Major overhead reconstruction work is being undertaken at
present.

2,000

FIDI Minutes

1,500

MANAWATU, HOROWEKA Seventeen unplanned and three planned outages have

been listed against the feeder. A line condition patrol is required to be completed to
identify the fault mechanisms.

1,000
500

Unplanned

Planned

Waitawheta

Konini

Brooklands

Kereone

Lichfield

Tiraumea

Whakamara

Awaiti

Coonoor

Otakeho

Paengaroa

Kaimai Drive

Otamarakau

Matakana Rd

Wardville

Station Rd

Longbush

Te Poi

Waihi North

Gordon

Westmere
Gladstone
Tirohia-Karangahake
Horoeka

Pohangina

Township & Ls

Mountain

Strathmore

Threshold

Figure 8.10: Worst Performing Feeders Class F4.

VALLEY, MOUNTAIN Thirteen outages occurred, with foreign interference and defects
being 32% and 22% respectively. The largest fault resulted from a car vs RMU unit. This
feeder has 460 ICPs and one recloser installed. Minor overhead reconstruction work is
planned for FY2011.
TARANAKI, STRATHMORE Fifteen unplanned outages and two planned outages
have been listed against the feeder. The main fault mechanism has been tree contact.
Powercos tree contractor has cleared trees off the feeder and the number of
unplanned outages is decreasing. Line reconstruction is planned for FY2011.
VALLEY, TOWNSHIP & LS Seven outages occurred, with one fault from adverse
weather accounting for 94% of the FIDI minutes, during a severe storm. This feeder has
230 ICPs. No future works are planned.
MANAWATU, POHANGINA Adverse weather, with one severe wind storm, has
returned high FIDI minutes on this feeder. The feeder has had a line condition patrol
carried ou,t with defects reported and repaired. A loop automation scheme was
commissioned in 2009. No further work is planned for FY2011.

186

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

VALLEY, GORDON Twenty one outages occurred, with adverse weather accounting
for 83% of the FIDI minutes, primarily from one fault. This feeder has 544 ICPs and one
recloser installed. Minor overhead reconstruction works are being undertaken in 2010,
with future conductor upgrades planned.
VALLEY, TE POI Fourteen outages occurred with adverse weather accounting for
91% of the FIDI minutes primarily from one fault. This feeder has 784 ICPs and two
reclosers installed. Minor overhead reconstruction and conductor upgrades works are
planned for FY2012.
VALLEY, WAIHI NORTH Twelve outages occurred, with adverse weather accounting
for 78% of the FIDI minutes, primarily from one fault. This feeder has 242 ICPs. Minor
overhead reconstruction is planned for FY2010 and new recloser for FY2011.
MASTERTON, LONGBUSH Eleven unplanned and eleven planned outages have
been listed against the feeder. Major reconstruction work has been carried. No further
work is planned for FY2011.
VALLEY, WARDVILLE Ten outages occurred, with adverse weather accounting for
95% of the FIDI minutes, primarily from one fault. This feeder has 345 ICPs and one
recloser installed. Minor overhead reconstruction and conductor upgrades works are
planned for FY2011.
VALLEY, STATION RD Nine outages occurred, with adverse weather accounting for
96% of the FIDI minutes, primarily from one fault. This feeder has 277 ICPs. A recloser
is planned for 2013.
TAURANGA, OTAMARAKAU Thirty-two outages occurred, with foreign interference
and tree contacts being 60% and 34% respectively. The largest fault resulted from a car
vs pole. This feeder has 1,040 ICPs and one recloser installed. FY2010 projects include
two new loop automation reclosers, major overhead reconstruction and completion of
two link-line projects. A new zone substation is also planned for FY2012.

Return to Index

VALLEY, AWAITI Thirteen outages occurred, with defective equipment and adverse
weather being 42% and 28% respectively. The largest fault caused during a stormy
period. Major conductor upgrade work is planned in FY2011.
MANAWATU, COONOOR Eighteen unplanned and two planned outages have been
listed against the feeder. A line condition patrol is required to be completed on the
feeder to identify the fault mechanisms.
MANAWATU, TIRAUMEA Eight unplanned and two planned outages have been listed
against the feeder. A line condition patrol has been completed.
TARANAKI, WHAKAMARA Seven faults and three planned shutdowns have occurred
on this feeder. The largest fault was due to a tree falling through the line causing 50% of
the FIDI. Overhead line reconstruction is planned for FY10.
VALLEY, LICHFIELD Fifteen outages occurred, with defective equipment and
unknown cause being 45% and 39% respectively, and the largest fault from a overhead
jumper failure. This feeder has 400 ICPs, one recloser installed, and minor overhead
reconstruction works planned for in FY2010.
VALLEY, KEREONE Nineteen outages occurred, with adverse weather accounting
for 76% of the FIDI minutes, primarily from one fault. This feeder has 673 ICPs and two
reclosers installed. Major conductor upgrade work is planned in FY2011.

Return to Index

2,000
1,500
1,000
500

Unplanned

Weraiti

Blairlogie

Threshold

Mangapakeha

Planned

Castlepoint

0
Coast Road

TAURANGA, PAENGAROA Twenty-six outages occurred, with tree contacts and

planned shutdowns (totalling 15) being 35% and 32% respectively. The largest fault
resulted from trees on lines during a stormy period. This feeder has 940 ICPs, two
reclosers and remote open point installed, and minor overhead reconstruction works
planned for in FY2010. A new zone substation is also planned for FY2012.

Worst Performing Feeders - Class F5

2,500

Tuturumuri

TARANAKI, OTAKEHO A total of 24 outages occurred, with 12 planned shutdowns

comprising 60% of the FIDI. Line reconductoring and reconstruction is under way. No
further work is planned after this.

Feeder Class F5 FIDI

Irirangi

TAURANGA, KAIMAI DRIVE Forty-one outages occurred, with planned shutdowns

(totalling 24) and adverse weather being 29% and 22% respectively. The largest fault
resulted from adverse weather eroding the foundations of a pole site causing it to
collapse. This feeder has 1,310 ICPs, 130kms of network, two reclosers, and two
sectionalisers installed. Major overhead reconstruction is planned in 2012, and new
Xiria circuit-breakers are to be installed in FY2011 to move 200 ICPs on to an adjacent
feeder. A new zone substation is also planned for FY2015.

8.5.5.

FIDI Minutes

TAURANGA, MATAKANA RD Ten outages occurred, with adverse weather foreign

interference being 52% and 22% respectively, the largest fault resulting from adverse
weather. This feeder has 260 ICPs and one recloser installed. Major overhead
reconstruction and conductor upgrades are underway for FY2010.

Figure 8.11: Worst Performing Feeders Class F5.

WANGANUI, IRRANGI - Five unplanned and 22 planned outages were listed against
the feeder. One unplanned outage was of long duration time due to no access into the
fault area due to a heavy snowfall. Major reconstruction work and recloser upgrades
have been completed on the feeder. No further work is planned for FY2011.
MASTERTON, TUTURUMURI Ten unplanned and three planned outages have been
listed against the feeder. A line condition patrol has been completed. Line maintenance
has been carried out in FY2009. No further work is planned for FY2011.
MANAWATU, COAST ROAD Ten unplanned and three planned outages have been
listed against the feeder. A line condition patrol has been completed. Line maintenance
has been carried out in FY2009. No further work is planned for FY2011.
MASTERTON, CASTLEPOINT Thirteen unplanned and four planned outages have
been listed against the feeder. A line condition patrol has been completed. Line
maintenance and tree trimming has been carried out in FY 2010. No further work is
planned for FY2011.
MASTERTON, MANAPAKEHA Four unplanned and two planned outages have been
listed against the feeder. Trees were identified as the fault mechanism and have been
cleared from the feeder. No further work is planned in FY2011.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

187

8.5.6.

Numbers of Customers per Feeder

8.5.7.

Reliability Actions Summary

As a result of the analysis in 8.5.2 to 8.5.6, the following actions are being considered
for inclusion in the FY11 works plan and future works plans.

Feeders by Number of Customers Supplied

300

Proposed Works Plan

Action

Number of Feeders

250

Fit Recloser

Manaia, Taranaki; Linton, Manawatu; Moturoa 5, Taranaki; Bell Block 8,

Taranaki; 18th Ave, Tauranga; Port Rd, Valley; Bellevue Rd, Tauranga;
Ohauiti, Tauranga; Wairoa, Tauranga; Waihi North, Valley; Otamarakau,
Tauranga; Queen St, Valley

Line Reconstruction

Matapu, Taranaki; Kopu, Valley; Linton, Manawatu; Newton St, Tauranga;

Aerodrome Rd, Tauranga; Queen St, Valley; Mural Town, Tauranga;
Pahiatua, Manawatu; Port Rd, Valley; Shaw Ave, Valley; Bureta Rd,
Tauranga; Tara Rd, Tauranga; Welcome Bay, Tauranga; Bellevue Rd,
Tauranga; Wairoa, Tauranga; Ohauiti, Tauranga; Ngatea, Valley; Green
Park, Tauranga; Moturoa 9; Taranaki; Strathmore, Taranaki; Tirohia,
Karangahake Valley; Gordon, Valley; Te Poi, Valley; Waihi North, Valley;
Longbush, Wairarapa; Wardville, Valley; Otamarakau, Tauranga; Matakana,
Tauranga; Kaimai Drive, Tauranga; Paengaroa, Tauranga; Whakamara,
Taranaki; Lichfield, Valley

New Omanu Zone

Substation

Newton St, Tauranga; Aerodrome Rd, Tauranga;

New Paengaroa
Zone Substation

Otamarakau, Tauranga; Paengaroa, Tauranga

New Pyes Pa Zone

Substation

Kaimai Drive, Tauranga

50%
40%

Cable Upgrade

Kopu, Valley;

Conductor
Replacement

Moturoa 9, Taranaki; Te Poi, Valley; Wardville, Valley; Matakana Rd,

Tauranga; Awaiti, Valley; Kereone, Valley

New Link Line

Thames Coast, Valley; Purangi, Valley; Otamarakau, Tauranga

Fit Remote Switch

Port Rd, Valley; Kaimai Drive, Tauranga; Otamarakau, Tauranga; Thames

Coast, Valley

Open Point
Reconfiguration

Bent St, Valley

200
150
100

Bisect these feeders

50
0

0-400
F1

F2

401-800
F3/F4

F3

801-1200
F4

1201-1600

1601-2000

F5

2001-2400

Customer Count by Feeder

Feeders by Number of Customers Supplied

100%
90%
Number of Feeders

80%
70%
60%

30%
20%
10%
0%
0-400
Wanganui

401-800
Wairarapa

Valley

801-1200
Tauranga

1201-1600
Taranaki

1601-2000

2001-2400

Manawatu

Customer Count by Feeder

Figure 8.12: Numbers of Customers per Feeder.

As stated in Sections 4.2 and 7.3, Powerco tries to limit the number of customers per
feeder to between 1200 and 1500. The numbers of customers per feeder are shown
in Figure 8.12. Emphasis is given in the Development Plan to splitting the feeders with
high customer numbers (inside the maroon ring) through new distribution feeders and
zone substations.

188

Feeder

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

8.6.

Protection and Control System Development Plan

8.6.1.

Protection Systems

Over the past few years, Powerco had conducted a number of reviews and equipment
upgrades in the Eastern and Western regions to improve the reliability of its protection
systems. Similar reviews and upgrades will continue in conjunction with the planned
network developments.

Return to Index

The deterioration of the older electro-mechanical protection equipment begins to influence

its reliability after 25-30 years of service. In addition, the older equipment is becoming
technically inferior as the variety of functions, such as data acquisition and interrogation
now provided by newer systems, are becoming standard features. The replacement
programme for ageing equipment is expected to continue over the next decade as many
relays in this category are now approaching or have exceeded their useful life.
The growth happening in Tauranga and the demand for faster fault clearance has
necessitated an upgrade of older protection schemes. This work is now completed.
However, new zone substation and upgrading work to the GXPs requires some
realignment of protection systems on the subtransmission network.
In the Palmerston North area, the network has been constructed to allow multiple
supplies to various substations. This configuration, coupled with the infeed from the
Tararua windfarm, greatly improves the security of supply to the district. However, the
existing non-unit protection systems installed in the district have not been designed to
fully complement this and several undesirable trippings have occurred. To address this
deficiency, unit protection schemes are being implemented.
Powerco has collated the protection configuration technical information from all regions
into a single reference database. This has enhanced the management of this key
engineering information. Data maintenance and upgrades of this facility will continue.

Table 8.1: Protection Development Plan

Financial
Year

Region

Project

Status

2009/10

Manawatu

Linton-Turitea TWP 33kV line protection.

In progress

2009/10

Manawatu

Kairanga-Linton 33kV line protection.

in progress

2011/12

Manawatu

Feilding 11kV protection upgrade as per Powercos

Asset Life Cycle Plan.

New

2011/12

Manawatu

Fielding 33kV line protection upgrade (part of the

planned switchgear replacement).

New

2010

Manawatu

Kimbolton 11kV protection upgrade (part of the

planned switchgear replacement).

Preliminary design
scope completed

2010

Manawatu

Bunnythorpe 33kV protection upgrade (part of the

planned switchgear replacement).

Design completed

2010/11

Manawatu

Kelvin Grove TWP Install 33kV line protection (part

of the planned CB installation).

New

2010/11

Manawatu

Milson 11kV protection upgrade as per Powercos

Asset Life Cycle Plan & install transformer
differential protection on 2 x 12.5 MVA transformer.

New

2010/11

Manawatu

Kairanga 11kV protection upgrade, as per

Powercos Asset Life Cycle Plan & install
transformer differential protection on 2 x 12.5 MVA
transformer.

New

2010

Manawatu

Main St 33kV protection upgrade (part of the

planned switchgear replacement).

Under way

2011/12

Masterton

Chapel install 11kV bus coupler protection to

achieve AAA level security (part of planned bus
coupler CB replacement).

New

2011/12

Masterton

Chapel transformer protection upgrade on 2 x

10MVA transformer to achieve AAA level security.

New

2010/11

Masterton

Clareville install 33kV line CBs & associated

protection to achieve AA+ level security.

New

2011/12

Masterton

Clareville 11kV incomer protection upgrade, install

transformer differential protection (2 x 7.5 MVA
transformer) & install CTs on bus coupler (change
over scheme) and Incomer (additional for TX Diffl
Protection) to achieved AA+ level security.

New

2010

Wanganui

Arahina 11kV protection upgrade & install

transformer differential protection on 1 x
10MVA transformer (part of planned switchgear
replacement).

New

Dialogue with consumer representation has assisted with installation of fault-finding and
fault-isolating equipment in locations having the greatest need.
Table 8.1 summarises scheduled major protection system work required to restore
reliability, sensitivity and selectivity to acceptable levels. These are wrapped into larger
programmes in Table 8.4.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

189

190

8.6.2.

Financial
Year

Region

Project

Status

2011

Wanganui

Hatricks Wharf Install new 33kV line protection (part

of the planned switchgear replacement).

In design stage

2010

Wanganui

Taihape Install transformer differential protection on

1 x 12.5 MVA transformer (part of planned 33kV CB
installation).

New

2010

Wanganui

Beach Road protection upgrade (part of the

planned switchgear replacement).

Underway

2010

Wanganui

Peat St 11kV Incomer protection upgrade to

implement fast bus scheme and improve substation
level security.

New

2010

Wanganui

Kai Iwi protection upgrade as per Powercos Asset

Life Cycle Plan.

New

2010

Wanganui

Waiouru 11kV protection upgrade as per Powercos

Asset Life Cycle Plan.

New

2011

Wanganui

Castlecliff 11kV protection upgrade as per

Powercos Asset Life Cycle Plan.

New

2012

Wanganui

Pukepapa 11kV protection upgrade as per

Powercos Asset Life Cycle Plan.

New

2010

Taranaki

Cambria 33kV line protection upgrade as per

Powercos Asset Life Cycle Plan and equipment low
performance level

New

2011

Taranaki

Cambria 11kV protection upgrade as per Powercos

Asset Life Cycle Plan

New

2010

Taranaki

Tasman 33kV line protection & transformer

differential protection upgrade (part of the planned
switchgear replacement)

Underway

2010

Tauranga

Pongakawa install fault locator (distance to fault)

Issued

2011

Valley

Coromandel install fault locator (distance to fault)

New

2010
onwards

All

Relay replacement programme

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

SCADA Systems

The SCADA system is required to provide real-time system control and data
acquisition with 24-hour, seven-day availability. SCADA system availability is monitored
and managed by the Network Operations Centre (NOC) in close co-operation
with Powercos Information Technology group for WAN performance issues. The
WAN includes back-up routes, which are provided automatically in case a primary
communication circuit fails. Each of the communication hubs can act as a regional
master station in the event of unrecoverable or extended WAN failure, or as part of a
disaster recovery plan. Access to the SCADA for software upgrades or configuration is
by way of a permitting system under the control of the NOC.
A small number of zone substation sites do not have full SCADA visibility. Powerco
plans to continue upgrading existing substation SCADA facilities and install new
SCADA facilities at substations with limited SCADA visibility.
The need for SCADA visibility of Transpowers circuit-breakers at grid exit points
has been identified by the Network Operation Centre. Discussions will be held with
Transpower to determine the technical and commercial issues associated with Powerco
acquiring SCADA data via Transpowers proposed ICCP project.

Return to Index

8.6.3.

SCADA Master Stations

Table 8.2: Communication System Development

Powercos Eastern and Western electricity networks are monitored and controlled by
two separate SCADA systems from different vendors. The Eastern Regions electricity
network SCADA system is an OSI system which went live in 2009. The Western Region
Abbey Systems SCADA system uses proprietary, ageing hardware and protocols. This
closed architecture, along with limited SCADA functionality, does not provide a suitable
platform for enhancing Powercos network and monitoring capability.

Financial Year

Region

Description

2009 - 2010

Palmerston

Install SEL2030.

2009 - 2010

Palmerston

Substation Comms

2009 - 2010

Palmerston

Digital microwave link between Mihaere Drive and TWP site

2009 - 2010

Taranaki

Waitara East Zone Sub phone

To address the issues of disparate Master Stations, a second stage of the Master
Station project will integrate the Western Regions Abbey Systems Master Station into
the new Master Station. Migration is scheduled to commence in 2010.

2009 - 2010

Taranaki

New radio link Waitara West to East Egmont (replacing Waitara

East to East Egmont).

2009 - 2010

Taranaki

Install new digital radio link between CA hut and Hawera and
Brunswick

2009 - 2010

Palmerston

SEL and other type of protection relays time-keeping

2009 - 2010

Taranaki

Radio repeater Northern Polling -Taranaki

2009 - 2010

Masterton

Repeater for SCADA south Wairarapa, Ngawi

2009 - 2010

Taranaki

DNP3 implementation in Taranaki

2009 - 2010

Wanganui

High Capacity Radio Bearer Wanganui to Palmerston

2009 - 2010

Taranaki

Further develop Powercos VHF Voice Radio network

2009 - 2010

Tauranga

Further develop Powercos VHF Voice Radio network

2009 - 2010

Valley

Migrate Maungatawhiri and Tokatea to Land Mobile

2010 - 2011

Masterton

Provide digital radio link from Morrisons to Hau Nui for the
provision of SCADA communications

2010 - 2011

Palmerston

High Capacity Radio Bearer Palmerston to Masterton

2010 - 2011

Wanganui

Further develop Powercos VHF Voice Radio network

2010 - 2011

Valley

Further develop Powercos VHF Voice Radio network

2010 - 2011

Tauranga

Migrate Minden to Land Mobile

2010 - 2011

Valley

Migrate Pukeitionga and Mt Te Aroha to Land Mobile

2010 - 2011

Masterton

Migrate Ngaumutawa Rd to Land Mobile

2011 - 2012

Palmerston

Further develop Powercos VHF Voice Radio network

2011 - 2012

Valley

Further develop Powercos VHF Voice Radio network

2011 - 2012

Valley

Migrate Te Keha and Mt Te Weraiti to Land Mobile

2012 - 2013

Masterton

Further develop Powercos VHF Voice Radio network

Once fully commissioned, a new integrated SCADA Master Stations will provide Powerco
with a long-term, stable SCADA Master Station platform that enhances Powercos existing
safety, operational and business requirements, and provides a platform to readily support
any future changes to the requirements of the SCADA system.
Powerco has identified that its communications paths between operational regions is
poor and regional communication networks require modernisation to increase data
transmission speeds and resilient voice communications.
To facilitate SCADA development within Powerco and to meet the need for a resilient
voice system, communication transmission systems are being developed that will
deliver inter-area and zone substation Ethernet, serial and voice communications. To
this end, the installation of Phase 1 of a Digital Microwave Communications Backbone
in the Eastern Region has been instigated. This will link Mikkelsen Rd (a key hub in
the Eastern SCADA system) to Te Weraiti (Kaimai Ranges) and then on to Te Keha
(Whiritoa), and Paul Rd (Tairua). Future phases of this development will loop up to
the top of the Coromandel Peninsula and then back down to Mikkelsen Rd, thereby
providing a high-capacity, reliable digital communications network.
Powerco intends to install digital radio communications in the Palmerston North area
to enable line differential protection, to enhance meshed subtransmission network
performance.
Communication transmission systems will be renewed and developed utilising digital
radio, fibre and copper transmission mediums to build an inter-region, high-capacity
backbone and to allow the implementation of the DNP3 protocol. This will then enable
digital cross-connect ability to zone substation level and provide valuable inter-area
communications. The improved management, availability and control that can be seen
from a digital transmission system will enable Powerco to provide diverse routing and
industry standard communication protocols throughout its operational network.
Tables 8.2 and 8.3 show planned development work on the SCADA and
Communications systems. These are wrapped into larger programmes in Table 8.4.

Return to Index

Note: The years given in the tables indicate the intended start year for each project. Some projects will
be completed in a later year. Multiple years are given for long-term projects.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

191

Table 8.3: SCADA and Automation Development

Financial Year

Substation

Development Project

2010

Taranaki

Migrate Cambria, Eltham, Inglewood and Transpower Stratford

RTUs to DNP3

2010

Wanganui

Investigate participation in Transpowers TCCP project to provide

SCADA visibility of Transpowers breakers at Brunswick

2011

Eastern

Migrate suitable RTUs to DNP3

2011

Marton

Provide SCADA visibility of Transpowers breakers at Marton GXP

2012

Western

Migrate RTUs to DNP3

2012

Eastern

Migrate RTUs to DNP3

2013

Western

Migrate RTUs to DNP3

2013

Eastern

Migrate RTUs to DNP3

2014

Western

Migrate RTUs to DNP3

2014

Eastern

Migrate RTUs to DNP3

8.7.

There is growing awareness worldwide of the opportunities for energy, cost and
carbon saving by the introduction of Smart technology to public lighting infrastructure.
Streetlighting currently operates under an inefficient regime of being either switched on
or off. Increasingly, options for more efficient management of streetlighting are being
explored by asset owners. These options include automatic dimming during off peak
periods, internet- or radio-based signalling protocols, and the use of off-grid sources
such as stored PV or wind-generated energy. The introduction of this new technology
offers the possibility of streetlighting energy supply and control being removed from
electricity distribution companies. For this reason, Powerco will monitor developments
of this type, although streetlight control and supply will remain a part of Powercos
wider Load-control System for the foreseeable future.
8.8.

Environmental Enhancements

8.8.1.

Strategic Perspective

As part of its environmental policy, Powerco is committed to pursuing continual

improvement, and recognises that sound environmental management is consistent
with the companys vision. Powerco is committed to achieving this goal in a manner
that prevents or minimises pollution and other adverse impacts on the surrounding
environment, and has regard for the interests of the communities in which it operates.

Note: The years given in the tables indicate the intended start year for each project. Some projects will
be completed in a later year. Multiple years are given for long-term projects.

8.6.4.

Load-control Systems

Powerco has reviewed the levels of signal voltage across the network to ensure
correct and reliable operation of load-control receivers. It has been identified that
the performance of the load-control system has deteriorated over recent years since
ownership of the injection plants and the receivers was split. A programme to replace
the load-control injection plants has been identified that uses a low-frequency Decabit
platform. Powerco has mandated that all new connections with controllable load shall
be capable of being controlled by Powercos load-control system.
8.6.5.

Metering System Instrument Transformers

Where instrument transformers provide inputs to power meters, development will

largely be driven by customer need, such as supply augmentation.
8.6.6.

Streetlight Supply and Control Enhancement

As part of this, Powerco intends to comply with all statutory environmental

requirements and other relevant standards and codes, and to maintain its
Environmental Management System, which provides a framework for setting and
reviewing environmental objectives and targets.
8.8.2.

Environmental Site Reviews

Network sites are reviewed for environmental compliance from time to time. A check list
is used to gather information, and a risk analysis is undertaken. The main environmental
issues arising at network sites are whether the site is appropriately designated, spillage
of oil and irritation from neighbours from acoustic noise. Large amounts of oil may be
contained on zone substation sites and a risk exists that a spill or leak at these sites
may contaminate the surrounding environment.

GXP Metering Systems

The check list considers such things as:

It is planned to develop GXP Metering systems to monitor power quality and reactive
power (the Electricity Commission could mandate adherence to power factor targets at
GXPs).

District Plan and zonings;

Site designation;
Bunding of transformers and tracing evidence of leaks;
Nearby water courses and ability to contain a spill;
Surrounding land use; and
Vicinity of neighbouring residential dwellings.

192

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

8.8.3.

Sensitive Sites

Often when lines are constructed across sensitive land such as Department of
Conservation estate, special environmental risk plans can be prepared that describe
how construction and fire risks will be mitigated.
Powerco has documented procedures that guide what to do if archaeological remains
are found.
In a small number of cases, there may be historical grievances with tangata whenua
regarding the location of lines in insensitive and inappropriate locations. Cases like this
are not simple to resolve and there should be recognition in the regulatory framework
for recovering costs for lines to be relocated in such circumstances.
8.8.4.

Environmental Action List

Name

District

Risk that
oil spill on
site would
contaminate
surrounding
environment

Maraetai Rd

South Waikato

Hau Nui

South Wairarapa

Putaruru

South Waikato

Name

District

Risk that
oil spill on
site would
contaminate
surrounding
environment

Cardiff

Stratford

MEDIUM

Run-off from site flows to nearby gully.

Waihi

Hauraki

MEDIUM

Site adjacent to sloping area. Risk that some

site run-off could contaminate surrounding
area.

Tinui

Masterton

MEDIUM

Run-off from site flows to nearby creek.

Alfredton

Tararua

MEDIUM

Featherston

South Wairarapa

MEDIUM

Kempton

South Wairarapa

MEDIUM

Norfolk

Carterton

MEDIUM

Comments

Te Ore Ore

Masterton

MEDIUM

Comments

Paeroa

Hauraki

LOW

HIGH

Site is in residential area. Risk that any spills or

leaks would enter town stormwater.

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Farmer Rd

Matamata-Piako

LOW

HIGH

Very steep slope around site. Site run-off flows

directly to farm dam. Significant risk spill or
leak would contaminate dam and surrounding
paddocks.

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Mikkelsen Rd

Matamata-Piako

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Piako

Matamata-Piako

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Tahuna

Matamata-Piako

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

HIGH

Evidence of previous leakage from

transformer. Some site runoff will enter creek
near to site.

Taihape

Rangitikei

HIGH

Run-off from site flows directly into storm

water system.

Browne St

Matamata-Piako

LOW

Tower Rd

Matamata-Piako

HIGH

Site is in residential area. Risk that any spills or

leaks would enter town stormwater.

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Martinborough

South Wairarapa

LOW

Akura

Masterton

HIGH

Run-off from site flows to nearby creek.

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Walton

Matamata-Piako

HIGH

Evidence of previous leakage from

transformer. Site adjacent to sloping area.
Some site run-off will enter creek near to site.

Tuhitarata

South Wairarapa

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Parkville

Tararua

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Sanson

Manawatu

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Pongaroa

Tararua

HIGH

Run-off from site flows to nearby creek.

Arahina

Rangitikei

HIGH

Run-off from site flows to nearby creek.

Waihi Beach

Western Bay of
Plenty

MEDIUM

Site adjacent to sloping area. Risk that some

site run-off will enter gully near to site.

Awatoitoi

Masterton

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Wanganui East

Wanganui

MEDIUM

Run-off from site flows to nearby creek.

Gladstone

Carterton

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

193

 Committed Safety Culture

Name

District

Risk that
oil spill on
site would
contaminate
surrounding
environment

Comments

Contractors that Ascribe to Safety First Business Always

Bulls

Rangitikei

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Focus on the contractor approval process and develop framework for assessing our
Training providers.

Pukepapa

Rangitikei

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Continuous Improvement Focus to the Safe Design of the Networks

Rata

Rangitikei

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Peat St

Wanganui

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Waiouru

Ruapehu

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Coromandel

ThamesCoromandel

LOW

Spills could be managed with spill kits. Low

risk of run-off contaminating surrounds.

Ensure that all Powerco Managers are aware health and safety is their responsibility,
and promote safety and wellness with all our employees

Substations designated HIGH risk constitute a significant risk that a leak or spill on site
may result in discharge that may cause environmental harm, in breach of the Resource
Management Act. It is recommended that the installation of transformer bunding
at these sites be addressed in the future works programme at the earliest possible
convenience.
Substations designated MEDIUM pose a much lesser risk that a leak or spill onsite
may result in discharge that may cause environmental harm. It is recommended that
the installation of transformer bunding at these sites be addressed in the future works
programme as funding permits, or should be considered in the event of any other
works being carried out at these sites.
Those substations designated as LOW risk do not pose a significant risk of a leak or
spill on site resulting in discharge that may cause environmental harm, provided spill
kits are available on site for emergency use.
8.9.

Safety Enhancements
Safety enhancement programmes are driven from a variety of perspectives and
sources. They are generally approached with risk-based techniques.

On going identification and assessment process of risks on the network

Review any past incidents and identify any engineering improvements that could be
implemented.
Safe Systems and Processes
Ensure the safety systems are being managed in accordance to AS/NZS4801:2001
which is audited using the ACC WSMP programme.
Follow industry dictated safety management systems.
Good Information and Analysis Regarding our Safety Performance
Improved focus on leading indicators. Develop improved reporting and investigations
processes.
8.9.2.

Network Incident Register

The Network Incident Register is a database of network incidents, incident investigation

reports and lists of actions to close out report recommendations. The incidents range
through protection system mal-operations, switching errors, electric shock or contact
by public, serious near-miss incidents and serious injuries by contract staff. Meetings
are held at six-weekly intervals at senior management level to discuss investigation
findings and implementation of actions pursuant to the investigations. Generally,
the investigation findings are related to process or standards. Occasionally, the
investigations result in retrospective upgrades of equipment deemed to be unsafe.
Examples include:
A certain design of transformer tank breather fitted, whereby minimum approach
distances are encroached while the silica gel is changed;
Prevention of the use of cable joints in zone substation cable basements;
Maintenance upgrade of a certain batch of vacuum circuit-breaker bottles;
Need for distributed generation backfeed protection;

8.9.1.

194

Health & Safety Plan

Replacement of a certain quality of cable sealing ends; and

The purpose of the Health & Safety Plan is to document the proposed pathway we will
take to execute and improve all areas of our health and safety performance. The main
areas of focus in currently are as follows;

Investigation of methods of detecting LV phase or neutral breakage or preventing the

effects.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

8.9.3.

Red Pin Defect process

8.9.6.

The Network Operations team can place do not operate orders on equipment if it
is suspected to be unsafe. Tags are placed on SCADA and on network operational
schematics until the equipment has been repaired and returned to normal service. This
results in renewal and maintenance actions rather than enhancement actions.
8.9.4.

Zone Sub Integrity Assessment

Semi regular site inspections are undertaken to review the robustness, integrity,
durability and operational reliability of zone substations. The aim is that sites:
Are safe and comply with legislative safety standards;
Remain operational should an extreme event occur;
Are appropriately secure against unauthorised entry; and
Meet legal and environmental requirements and obligations consistent with
Powercos values.
Issues covered by the integrity assessments include:
Site configuration and buildings, including review of compliance with required
clearances to live equipment;
Physical site security (fences secure, locks adequate);
Earthing systems - integrity of earthing system and mitigation of risk of life and
property from step and touch voltages;
Oil containment and operational noise (these are covered in section 8.8);
Segregation of cables and trenches;
Protection against earthquakes, fire, extreme weather events, floods;
Health and safety such, as presence of asbestos and containment of batteries.
Examples of the enhancement work that results from these reviews include:

Erection of barriers around equipment that does not meet required safety
clearances;

Fence upgrades;
Earthing system upgrades; and
Installation of acoustic noise abatement equipment.
8.9.5.

Switchgear replacements

Whilst not strictly enhancements, certain types of distribution switchgear have been
regarded as operationally risky for Its site. Focus on replacing distribution switchgear
occurs when the switch is located at a network normally open point or in a confined
space. Risk analysis is done to determine if a switch should be replaced due to safety
or whether it should be operated in a dead configuration.

Return to Index

LV Switchgear and Pillar replacements

Also while not strictly enhancements, work is done to replace and upgrade Low Voltage
street pillars that are considered to be unsafe to members of the public. Low Voltage
switchgear in certain distribution substations are also to be upgraded to allow the safer
changeover of supply between transformers.
8.9.7.

New Equipment Trials

New equipment, such as switches, undergo a process of trial by committee (Network

Advisory Team). This is where experienced engineers and field personnel get together
for the purpose of inspecting a piece of equipment for approval on the network. This
process results in a report recommending the use, non-use or conditional use of a
piece of equipment.
8.10. Smart Network Implementation
Previous Asset Management plans have recognised the challenges of managing ageing
assets and increasing consumer expectations for network reliability. Management of the
ageing network will require improved information to enable reduced fault restorations
times and increased asset utilisation, and enabling improved inter-operability with
embedded generators. In other words, we are having to work the existing assets harder
and need to recover more quickly in the event of network plant failure while maintaining
a balance with economic business objectives. The consequence of greater reliance of
improved information will require an up-skilled workforce to facilitate the improvement in
network reliability.
8.10.1. Smart Grid Definition

The terms Smart Grid and Smart Networks are used to describe a concept that
encompasses a number of existing Powerco initiatives. The Smart Network concept is
aimed at enabling interactions between various network elements, including embedded
generation, network components and customers, as well as network operations and
management.
The Smart Network has been defined as a dynamic network for two-way linking of
dispersed energy sources and end-use customers, providing more dynamic information
to customers with the capacity to alter their demand behaviour.
The Smart Network aims to improve performance by providing enhanced status
information, automatic detection and correction of network problems (self-healing) and
the provision of information to facilitate better asset utilisation and optimisation of asset
replacement investment. A Smart Grid facilitates improved market interactions between
consumers and suppliers enabling information interchange.
The objectives that are widely suggested for Smart Grids by vendors and other utilities are
also aligned with the business needs of the Powerco business as defined in Section 2.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

195

A business strategy that includes the adoption of the Smart Grid concept could improve
network reliability and performance and assist in achieving current business objectives.
Powerco has historically not invested heavily in research and development but the
opportunity exists to adopt a technology direction that is being tested and proven by other
utilities. The opportunity exists within the current investment programme to take advantage
of new technologies and future proof the network and to cope with the demands from
community, regulators and government in a future carbon-constrained environment.
8.10.2. Technology

Smart Grid technology is characterised by the establishment of the two-way flow of

information to create an automated widely distributed energy network. It incorporates
the ability to deliver real-time information and facilitate the balance of demand and
supply at the device level.
The key under-pinning technology domains that support the introduction of Smart Grids
as they are at present include:
Communication architecture
Communication protocols
Advanced metering infrastructure
Network automation to enable Smart Grid Self-Healing Networks
Distributed generation/micro-grids
Communication Architecture
Smart Grid architecture can be supported by many communication technologies
from mobile, wide area networks (WAN) and local area networks (LAN). Smart Grid
architecture should be flexible to incorporate other communications architectures
as those technologies arise. The key requirements for Smart Grid communications
architectures are quality of service, availability and coverage, response timing, and
data accuracy. The technology to support Smart Grid communications is presently
available, However, communication availability may be partly dependent on thirdparty communication service providers and the extent of their networks. Further
enhancement of the Powerco communications infrastructure will provide advantages
now for Asset Management and for future implementation of the Smart Grid concept.
Communication Protocols
Communication protocols provide the common language for systems and equipment
to talk to each other and the protocols and features envisaged for Smart Grids
are contained within the IEC61850. However, DNP3 is the dominant protocol in
substation automation (designed for low bandwidth SCADA applications, developed
in the 1970s and, due to its vintage, lacks the flexibility afforded to new protocols
in the market place), but it lacks some of the features envisioned for Smart Grids.
IEC61850 organises power system data in a manner that is logical without additional

196

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

description. The logical assembly of data facilitates the management of large data
sets within substation automation systems. In addition, the IEC61850 model, if
applied to distribution networks beyond the substation, may allow the data to be
managed efficiently. IEC61850 is currently being revised by the standards committee
for deployment beyond the substation, including inter-substation communications.
Even though many legacy substations contain secondary systems with DNP3 or
other protocols, the organisation of power system data can be managed via protocol
translators to IEC61850. At semi regular intervals, Powerco reviews the ability of
substation equipment to accommodate the communication protocol requirements for
Smart Grid implementation.
Advanced Metering Infrastructure
Advanced Metering Infrastructure (AMI) represents the next phase of automatic meter
reading, whereby the meter is responsive to two-way communications dynamically
adjusting for the price of electricity, and interlacing with various loads in the metered
facility. The AMI enables the smart home, bringing such technology such as:
Real-time pricing/hour
Direct load-control/optimisation
Load monitoring/sub-metering
Remote connect/disconnect
Outage detection and isolation
Demand profiles
Advanced metering infrastructure must be installed to meet the system and information
needs of Powerco even if the end-consumers using the technology are not direct
Powerco customers. The pilot programme to meter the customer supply transformer
(the present Powerco customer interface) is aligned with the Advanced Metering
Infrastructure concept and meets the current Powerco needs for improved information
on transformer loading to assist in Asset Management. Powercos relationship with the
meter owners gives the ability to obtain data on the power usage, power factor and
power quality of customers with advanced meters installed.
Network Automation to Support Self-Healing Networks
Implementation of a Smart Grid, self-healing network requires key automated
transmission and distribution systems components all operating in a co-ordinated,
efficient and reliable manner. A self-healing system manages emergency conditions on
a power system with predictive capability (operational and functional) with the system
functionality to correct/bypass predicted and detected network problems. Self-healing
grids require alternative network paths to provide customers power needs, where the
self-healing grid implementation is custom-designed to meet the specific customer
wants. One of the existing barriers to implementation of self-healing networks for
many areas in Powercos network is the lack of feeder interconnections, particularly in
typical rural regions, let alone the communications and high-level software to undertake

Return to Index

self healing operations. It should be noted that other line reliability factors must be
addressed in parallel.

Enhanced information for consumers on energy usage. This is not a direct impact on
Powerco at present but is expected to increase in future years;

Distributed generation/micro-grids

Higher demands on network reliability, with higher levels of embedded generation;

Distributed generation/micro-grids include the integration of power generation, such

as solar wind, and micro-turbines, energy demand via demand response, controllable
loads and direct load-control. Battery and inverter technology is evolving such that the
capital investment to buy energy at low cost during low-demand periods and release
energy in high-demand periods to maximise revenue is becoming economically viable.
Micro-grids present a challenge from a protection and control perspective. That is new
protection and control philosophies will need to be developed. Distributed generation/
micro-grids represent a significant change in distribution network design due to the
potential for bidirectional power flows, which at present is in the infancy stage of
development. Powerco have shown that, when applied to remote rural sites, distributed
generation/micro-grid supplies can be a cost-effective alternative to renewing lines.

Increased local renewable energy with intermittent generation characteristics;

8.10.3. Standards

The Smart Gird concept is in an infancy stage and standards for understanding, let
alone implementing Smart Grids are presently in development in the US and Europe
only. However, communication systems and protocols to support implementation
of Smart Grids are well developed, even though it is not specific to the concept or
application. Common international standards on information for advanced metering
infrastructure have not been developed but are presently under development in the US
with the National Institute of Standards and Technology. There does not appear to be
any relevant work presently under way in NewZealand or Australia on the development
of new Smart Grid specific standards.
8.10.4. Consumer Information Pricing

In theory, customers can balance their energy consumption with the real time supply
of energy. Variable pricing could provide consumer incentives to install their own
infrastructure. The infrastructure takes advantage of low-priced energy in off-peak,
but also minimises the consumption of high-priced energy in peak conditions. The
distribution model within Powerco may support some consumer information pricing,
where customers have access to information via alternative means including the
internet. Customers may change their behaviour with software agents that have
scheduling and price trigger mechanisms.
8.10.5. Drivers for Implementation

The main driver for implementing the Smart Grid concept in Powerco is to increase
the reliability and utilisation of the network and its ability to deliver reliable supply to
customers within an increasingly carbon-constrained based economy. The carbonconstrained economy in NewZealand is likely to include the need for:

Return to Index

Implementation of electric and hybrid vehicles charging, and possible energy

storage;
The capacity to shift peak loads to reduce peak demand capacity requirements;
Enhanced Asset Management monitoring of the distribution network, resulting in
deferred replacement investment;
Deeper visualisation and control of distribution network may increase resource
flexibility and utilisation;
Enhanced asset monitoring reducing fault response times; and
Improved workforce deployment and field-based automation.
The advantages and capabilities of Smart Grids are aligned with Powerco business
objectives and it is prudent to consider the steps required to implement the concept
within the network. The next section defines a roadmap for implementation of Smart
Grids within the Powerco network.
8.10.6. A Smart Grid Roadmap for Powerco

The Smart Grid roadmap is intended to encompass existing Powerco asset

refurbishment programmes and augmentation where possible, and aims to align future
expenditure with the needs of a future smart Powerco network that may be driven
by Regulators, government or other stakeholders. The roadmap includes recognition
of the logistical and technical challenges associated with the migration of an electrical
grid with one-way power flows from central generators to dispersed loads to a grid
that encompasses two-way power flows and customer interaction that is two-way and
peer-to-peer. The logistical challenges include the large number of stakeholders, high
complexity, change management, standards, security and regulation. The technical
challenges are the availability of skilled staff able to maintain and operate a complicated
multi-directional power system, smart equipment and suitable communication
systems, data management, cyber security, data and privacy and software applications.
The ultimate destination for Smart Grid technology is still evolving to meet the
needs of stakeholders, including regulators, manufacturers, utilities and end-users
and it is likely that early adopters will undertake a higher risk of implementation. The
development of standards, regulations and customer requirements will continue to
shape the Smart Grid roadmap. It is therefore prudent for Powerco not to adopt an
aggressive, leading position in implementation, as has been noted with the approach of
other utilities in the country. However, it is also prudent for Powerco not to take a head
in the sand approach to the concept and its evolution.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

197

Smart Grid development will be influenced by the needs of customers (end users who
may also generate, store and manage), markets (operators and participants in markets),
service providers (organisations providing service to customers and utilities), operations
(managers of electricity movement), bulk generation (generators of electricity for bulk
movement), transmission (carriers of electricity over long distances) and distribution
(distributors of electricity to and from customers).
The future of Smart Grid technologies is presently being driven primarily by regulators.
Some regulators are demanding that Smart Grids provide sustainable options to
customers, allowing customers to make sustainable decisions on the use of electricity.
On that basis, utilities must move and consider Smart Grids to achieve objectives,
such as, security, reliability and efficiency. However, longer-term objectives may include
efficient meter-reading and billing, better customer service, load scheduling, load
shifting, load forecasting and asset management. The future for Smart Grids may include
other drivers as Smart Grid systems and strategies are implemented and the needs of
customers evolve to the next generation of Smart Grid technology and strategy.
Roadmap Start

Smart Grid Roadmap

Distribution Infrastructure
Communication/SCADA Infrastructure
Field Force Automation
Smart Grid Arrival

You Have
Arrived

Action
Power
Data
Integration

Technology Eolution

Status

Field Force
Automation

Integrate
Resources Planning /
SCADA Data and
Systems

Upgrade SCADA

Communication
Systems Implementation

AMI
Installation

Embedded
Generation
Control

Advanced
Metering
Infrastructure

MicroGrids

Implement
Distribution
Interconnectors

Roadmap
Start

Time

Figure 8.13: Smart Grid Roadmap

Powerco is presently in the infancy stage of the roadmap path for Smart Grid
implementation. The SCADA upgrade at substations will position Powerco to undertake
the next phase of Smart Grid implementation. The replacement of legacy SCADA
systems is a positive step towards Smart Grid adoption as legacy SCADA systems
are unlikely to support the data needs for a Smart Grid. Powercos position is not

198

8.10.7. Summary

Higher demands from Regulators and, in future, customers are likely to result in the
need to enhance the existing Powerco SCADA and network infrastructure to facilitate
higher levels of communication flow and network automation. The existing Powerco
network infrastructure is ageing and replacement and refurbishment is managed within
the current Asset Management Plan.
There is a potential benefit to be gained in a watchful, cautiously phased
implementation of some Smart Grid concepts within the Powerco Asset Management
Plan. This strategy is aimed at placing Powerco in a competitive position, ready to
adapt to new stakeholder demands and able to take advantage of opportunities that
may arise, while being conservative, minimising the obsolescence risk associated with
early adoption.
Opportunities

Implementation Risks

Provision of enhanced services to link

generators and consumers;

Increased costs of refurbishment, where

brownfield design and construction costs
are higher than greenfield;

Enhanced Asset Management allowing

assets to be pushed harder with better
information;
Improved maintenance optimisation and
effectiveness;

Technology promises of vendors are not

realised;
Increased maintenance cost for Smart
Grid equipment;
When something goes wrong, it goes
wrong in a bigger way;

Communication
Infrastruture

Smart Grid
Substation
SCADA
Ready

Powerco Are Here

substantially different to other distributors where most are considering the definition
of Smart Grids and are establishing a strategy to move forward to meet the changing
market environment.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Regulatory constraints.

The proposed Powerco Smart Grid roadmap is intended to supplement the existing
asset strategy to align replacement, augmentation and refurbishment programmes
with the requirements for establishing the foundations of a Smart Grid framework. This
approach is intended to improve existing system reliability and responsiveness but is
substantially aimed at alignment for future needs and creating option value. Powerco
is in an excellent position to take advantage of the experience of other utilities in the
region with low risk of adoption of technologies that later prove to be incompatible with
future needs.
A moderate increase in future capital expenditure is proposed in the following areas:
Configuration and capacity of certain parts of the network for increased interconnectability;
Increased levels of field device automation and SCADA;

Return to Index

 Integration of in-field IT systems, such as work despatch and hand-held inspection

devices;
Implementation and expansion of distribution and customer interface transformer
metering, and consolidation of relationships with customer meter owners;
Alignment of communications network and standard protocols for alignment with
future Smart Grid.
Specifically, the following strategies are proposed:
Preparation of an optical fibre development plan, laying of fibre ducts with new
subtransmission cable circuits, and consideration of including optical fibre in
subtransmission lines (OPGW) to assist in providing a communication backbone;
Moving towards IEC61850 compliance in substation specification and standards for
relays and control equipment;
Review Powerco information technology and field automation standards for
alignment with Smart Grid communications and operability requirements;
Initiate discussions with stakeholders and the Regulator on opportunities for
Powerco to undertake additional services and augmentation.
8.11. Network Enhancement Project Summary
Reliability, Safety and Environment project summaries from FY11 to FY15 are provided
in Table 8.4. The FY11 to 15 project summaries come from the Improvement Register.
The FY11 to FY15 projects are assessed using a multi-stakeholder assessment process
(known as Coin), whereby the projects are reviewed against a set of four strategic
objectives representing stakeholder needs under which constraints are applied. The
objectives are set out in Section 2.6.
The total expenditure amounts in Table 8.4 can be seen to confirm the forecast
expenditures in Section 9.4.
8.12. Descriptions of Key Projects
The following is a detailed description of the large projects currently under way and
proposed for the next twelve months. It covers the options considered and a summary
of the project difficulties encountered.
8.12.1. Thames Coast to Manaia Link
Total Cost: $0.8m Project Status: Feasibility Forecast Accuracy: +/- 20%

A high number of faults have historically been recorded on cable sections of the Thames
Coast Feeder. This feeder supplies customers on the Coromandel Peninsula coast
north of Thames, and has in excess of 1600 customers. There Is no present supply
back up route so whenever there is a fault, the customers supplied by this feeder have
experience a long supply interruption, sometimes in excess of twenty hours.

Return to Index

Alternative options considered include use of permanent or temporary diesel generation

to supply the customers and additional reclosers to sectionalise the feeder. Reclosers
have already been implemented to a high extent already and further application will not
yield significant extra benefits. An ABS with tails to permit the connection of temporary
generation has been installed but operationally it has been found to be a difficult call
to hire temporary generation due to the eight hour lead times and expense involved.
Installing permanent Diesel Generation has not been ruled out but it is expensive to
install and operate.
The project is to link the Thames Coast feeder with the Manaia feeder which is supplied
from Coromandel. The two feeders do not meet and a length of new line 1.5km long
needs to be constructed. However the ends of these feeders comprise two wire line of
light conductor that needs to be upgraded to three wire line of medium conductor.
The major obstacle with this project is the acquisition of consents and easements to
enable the work to begin. This has been taking several years to accomplish.
8.12.2. Putaruru Second Circuit
Total Cost: $2.0m Project Status: Pre Feasibility Forecast Accuracy: +/- 25%

A second circuit to supply Putaruru comes about because Putaruru has a high risk
of extensive SAIDI minutes caused by a line fault. There is presently no available form
of alternative supply to the area. The proposal is to construct a new GXP at Putaruru
which will supply the area and enable an alternative form of supply to back up the
Hinuera GXP, which itself is supplied by only a single 110kV circuit. A new circuit is
included in the programme to connect the new GXP to the Putaruru zone substation.
Alternative options include duplicating the line supplying Hinuera (Transpower) and
constructing a second line from Hinuera to Putaruru, building a line from Litchfield
GXP, taking supply for a new GXP at Arapuni, and diesel generation. The first option
(duplicate lines) is, in economic terms, a more costly option overall. The Litchfield option
would require step up transformers, and involves a long distance of line construction
and limitations to the amount of capacity available. The volt drop across the lines from
a new GXP at Arapuni would be too great when backfeeding Hinuera (capacitors could
reduce this but load growth would rapidly cancel the benefits out).
Project difficulties include obtaining consents and landowner agreements, and
obtaining easements.
8.12.3. Coroglen Kaimarama 110kV Line
Total Cost: $2.0m Project Status: Easement & Consent Acquisition
Forecast Accuracy: +/- 20%

Whitianga and Coromandel Substation have approximately 7,000 and 2,200 customers
respectively that are supplied from a single 66kV circuit supplied from Transpowers
Kopu GXP. The circuit can be backfed as far as Coroglen during moderate loading,

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

199

but there is no alternative supply if a fault should occur north of Coroglen. Coromandel
Substation is supplied from Whitianga Substation on a spur circuit.

implies closer spaced maintenance routines and increased risk of failure. The second
transformer allows a shuffle to occur amongst other 66/11kV transformers.

By constructing approximately 10km of 66/110kV overhead line between Coroglen and

Kaimarama, this will provide a ring feed supply to Whitianga, hence increasing supply
reliability and improving voltage regulation at Whitianga and Coromandel Substations.
Later in this decade, it is proposed to construct the circuit to an operating voltage of
110kV to allow for future increase in load growth in the area. The line will therefore be
constructed with 110kV capability, but operate in the interim at 66kV.

Alternative options include installing generation but these are expensive to implement
and operate. The option of doing nothing involves lengthy regular shut downs for
maintenance that are difficult to arrange with the community and consume valuable
planned outage SAIDI allowances. A lead time of around twelve months is expected for
order and delivery of the transformer.

Alternative options are to do nothing and to install banks of diesel generation. Doing
nothing has been seriously considered but with the deterioration of the existing line,
there are some renewal tasks that cannot be done live line and any planned shutdowns
would be of intolerable length. Furthermore, growth is forecast to be high, with
Whitianga forecast to have the population of Masterton in 2025. Generation options
are limited because of limited fuel availability. There is some potential for run of the river
hydro but the resource available is small.
The consent process has been a long and drawn out process. After five years, it is
nearing an end, leaving the way open for easement acquisition and finally construction.
8.12.4. Miscellaneous Cable Installations and Links
Total Cost: $1.9m Project Status: Ongoing Forecast Accuracy: +/- 20%

This item is a programme comprising many small projects aimed at increasing the
levels of interconnection between feeders. This is in line with the reduce CAIDI through
automation and reduce CAIDI through adequate back up supply options tactical
focus areas.
8.12.5. Miscellaneous Series 1 Switch Replacements
Total Cost: $4.0m Project Status: Ongoing Forecast Accuracy: +/- 20%

This item is a programme comprising many small projects aimed at phasing out higher
risk profile Andelect / ABB Series 1 oil filled switches, Magnefix switchgear located
in damp environments and J2 / ETV2 Long and Crawford and earlier models. The
programme targets the switches located at normally open points and switches in
confined spaces. While more of a renewal programme, it is included as a Reliability,
Safety and Environment investment due to its driver.
8.12.6. Coromandel Second Transformer Bank
Total Cost: $1.5m Project Status: Feasibility Forecast Accuracy: +/- 20%

A second transformer is proposed at Coromandel because it is difficult to take this

transformer out of service for maintenance since there is no other form of back feed
into the area. Secondly, the transformer tap changer itself faces a tough working
life because of the large volt drop and long subtransmission line distance - this

200

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

8.12.7. Miscellaneous Noja installations and Recloser Upgrades

Total Cost: $5.4m Project Status: Ongoing Forecast Accuracy: +/- 20%

This is a programme of work comprising many small projects comprising installing

reclosers capable of loop automation and SCADerising network switches. The aim of
the programme is to improve SAIFI and CAIDI by reducing the exposure of customers
to interruptions (yellow and green part of Figure 8.2), improving the restoration times to
most customers through loop automation and remote control (blue and indigo part of
Figure 8.2).
8.12.8. Miscellaneous Protection Upgrades
Total Cost: $1.5m Project Status: Ongoing Forecast Accuracy: +/- 20%

This is a programme of work that includes the protection replacements and upgrades
described in Section 8.6.
8.12.9. Thames Second Subtransmission Circuit
Total Cost: $2.0m Project Status: Underway Forecast Accuracy: +/- 25%

Thames Substation is supplied from a 5km 66kV overhead spur line that passes over
rugged terrain, from Parawai Switching Point. Due to the increasing load growth and
customer numbers in the region, a second 66kV line is required to give N-1 security
at this substation that currently supplies almost 5,000 ICPs. A second line will enable
maintenance to be carried out on the existing 66kV circuit. Only a very small amount
of load can be back feed from Matatoki Substation. This project is to be staged over
several years ie route selection, securing of easements, and staged line construction
that is dependent on site access.
8.12.10. Whangamata Second Subtransmission Circuit
Total Cost: $3.1m Project Status: Feasibility Forecast Accuracy: +/- 25%

To improve reliability, a second subtransmission circuit is required between Waikino

GXP and the town of Whangamata. Designs for the lines have been largely completed,
and several years of discussions with DoC and other affected parties have taken us
to the point where easements, concessions and designation is required to progress
through to the construction phase of this project.

Return to Index

Table 8.4: Summary of Reliability, Safety and Environment Projects

AMP Network Reliability, Safety and Environment Programme Summary

Potential Projects
Reliability, Safety and Environment Project

FY2011

AMP
Reference
Section
Options

Project Driver

FY2012

FY2013

FY2014

FY2015

4OH

Misc hot water scheme upgrades

Misc conductor upgrades
DOH
Misc line reconductoring/renewals
Misc line upgrades
Misc line changes
Misc construction of new lines
Thames Coast to Manaia link 2-3 wire upgrade
Distribution overhead reliability enhancement

$115,000

Asset Performance; Service

Asset Performance; Service

8.6.4
6.6.8

Upgrade to a new decabit system

Reliability
Asset Performance; Service
Asset Performance; Service
Reliability
Asset Performance; Service
Reliability

8.5.7
8.5.7
8.5.7
8.5.7
8.12.1
8.12.4

Tolerate worse reliability

Asset Performance; Service

Reliability
Service

8.12.3
8.12.4
8.4.1

Refer to detailed project description

Service
Service

8.12.2
7.8.7

Service

8.12.10

Load Growth
Load Growth; Service
Load Growth; Service

7.8.8
7.8.8
8.12.3

Service; Asset Performance

Safety

8.9.7
8.9.7

Asset Performance;
Reliability
Asset Performance;
Reliability
Asset Performance; Service

8.5.7

Asset Performance; Service

8.5.7

$2,000,000

Service

7.8.9

$850,000

Service

7.8.8

$30,000
$395,000
$595,000
$50,000
$105,000
$500,000

$1,250,000
$585,000
$12,000
$70,000

$1,175,000
$550,000

$1,410,000
$190,000
$50,000

$288,700
$125,000

$50,000
$2,000,000

Refer to detailed project description

Tolerate worse reliability

SOH

Kopu Kauaeranga 110kV line

Norfolk sub emergency tie
Misc LFIs installations

$200,000
$75,000
$40,000

Putaruru 33kV circuit

Oakura second 33kV line
Whangamata second 33kV line
Omokoroa additional 33kV circuit
Katikati second 33kV circuit
Coroglen to Kaimarama second 110kV line

$40,000
$2,000,000
$1,500,000

$200,000

$1,350,000

$1,500,000

$1,000,000
$500,000
$2,000,000

Do nothing and live without the reliability benefits these

schemes provide
Construct second 33kV line to Putaruru
Continue to rely on limitied backup capability of the 11kV
network
Upgrade the subtransmission capacity to Waihi and accept
existing reliability and operational constraints
Construct new GXP at Aongatete
Accept reduced supply reliability
Do nothing and accept reducing reliability and operational
constrainsts, or contruct new line along the existing line
route, or lay underground cable, or install generation plant a
Whitianga

4UG

Misc paralleling cable installations

Misc aged/hazardous LV equipment
replacements
DUG
Misc additional cable installations & links
Misc cable changes & replacements
Misc cable upgrades
Whangamata additional feeder to reduce ICPs

$15,000
$325,000

$425,000

$345,000

$1,261,000

$400,000

$230,000

$80,000

$235,000

$40,000

$360,000

$220,000

$60,000

$145,000

$40,000
$40,000
$25,000

$700,000

8.5.7
8.5.7

Do nothing - accept H&S risk

Do nothing and live without the reliability and operational

benefits these provide
Do nothing and live without the reliability and operational
benefits these provide
Do nothing and live without the reliability and operational
benefits these provide
Do nothing and live without the reliability and operational
benefits these provide

SUG

Morrinsville second 33kV circuit

Matua second 33 KV cable

Return to Index

$150,000

Increase 11kV interconnections with Piako, upgrade

capacity at Piako
Increase 11kV interconnections from Otumoetai and Sulphur
Pt, or do nothing and accept reducing reliability at Matua

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

201

Potential Projects
Reliability, Safety and Environment Project

FY2011

Pongakawa 33kV separation from Te Puke

Project Driver

FY2012

FY2013

FY2014

AMP
Reference
Section
Options

FY2015

$500,000

Load Growth; Service

7.8.8

Service
Asset Integrity; Reliability
Service
Safety; Economic Efficiency

8.6.2
8.6.2
8.6.2
8.6.2

Safety; Reliability

8.3.4

Asset Integrity; Safety

Reliability; Service

8.9.5
8.4.1

Increase capacity of existing feeders from Te Puke and

Pongakawa, build second line to Pongakawa or decline new
connections

COM

Misc communications reliability improvements

Misc communications network changes
Misc new radio/communication link installations
Misc VHF radio & data networks developments

$90,000
$75,000
$200,000
$409,000

$80,000
$270,000

$195,000

Do nothing - accept H&S risk, more maintenance

Do nothing and live with the risk of limited cell phone
coverage

DAB

Misc automation of difficult to access ABSs

$40,000

DGS

Misc Series 1 switchgear replacements

Misc new switch or RMU installations
Misc RMU SCADArising

$1,280,000
$230,000

$730,000
$329,000

$685,000

$150,000

$175,000

$90,000

Reliability; Service

8.4.1

$50,000

Asset Integrity; Safety

8.9.5

$130,000

Asset Integrity; Safety

8.9.5

$82,186

Asset Integrity; Safety

8.9.5

Asset Integrity; Reliability

Service; Asset Performance

8.4.1
8.4.1

Asset Performance; Reliability

Safety; Asset Performance
Reliability; Service
Reliability; Service
Load Growth; Service
Asset Performance; Reliability
Asset Performance; Service

6.8.5

Do nothing and accept reliability and operational constraints

Do nothing and live without the reliability benefits these
schemes provide
Do nothing and accept furthur outages

7.8.9
7.8.9
7.8.8
7.8.6

Refer to detailed project description

Accept reduced supply reliability
Improve 11kV backup capacity with Sulphur Pt.
Do nothing and accept furthur outages

Service

8.3.4

$50,000

Reliability; Service
Reliability; Service

8.3.4
8.3.4

$45,000

Reliability; Service

8.3.4

Do nothing and live without the reliability benefits these

schemes provide
Do nothing and live with coordination issues
Do nothing and live without the the reliability benefits these
schemes provide
Do nothing and live without the reliability and operational
benefits these provide

Reliability; Service

8.3.4

Misc concrete pad replacements

$775,000

$550,000
$35,000

Do nothing - accept H&S risk, more maintenance

Do nothing and live without the reliability and operational
benefits these provide
Do nothing and live without the reliability and operational
benefits these provide

DUT

Misc new ground mount transformer

installations
Misc rusty ground mount transformer
replacements
ZTR

Misc second transformer installations

Misc Ground Fault Neutraliser installations
Misc transformer replacements
Misc zone substation transformer works
Coromandel second transformer bank
Kerepehi second 66/33kV line
Matua Zone Transformer upgrades
Parkville replace Auto TX with dual winding TX
Purchase spare zone transformer, Eastern

$300,000
$250,000

$250,000

$300,000

$175,000

$250,000

$250,000

$75,000

$135,000

$12,000
$1,500,000
$1,500,000
$1,000,000
$650,000
$600,000

DRG

Misc Regulator installations

Misc Regulator related works
Misc Regulator automation works

$115,000
$160,000
$40,000

Load Growth
Safety; Reliability
Reliability

$40,000

$330,000

$265,000

$235,000

$100,000

$1,566,000
$102,200

$1,702,000

$995,000

$1,085,000

DSR

Misc switching additions

Misc Noja installations or Recloser upgrades
Misc LFIs and EFIs installations
Misc Recloser SCADArising or increase control

$265,000

$170,000

SCA

Misc equipment SCADArising

202

$65,000

$147,000

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

$50,000

Do nothing and live without the reliability and operational

benefits these provide

Return to Index

Potential Projects
Reliability, Safety and Environment Project

FY2011

Project Driver

FY2012

Misc SCADA equipment changes

FY2013

FY2014

$50,000

Misc SCADA improvements

AMP
Reference
Section
Options

$40,000

$50,000

$70,000
$140,000

$200,000

$275,000

$125,000

FY2015

$15,000

$50,000

Reliability; Service

8.3.4

Do nothing and live without the reliability and operational

benefits these provide
Do nothing and live without the reliability and operational
benefits these provide

Reliability; Service

8.3.4

Reliability; Service
Reliability; Service

6.9.4
8.4.1

Safety

8.9.4

Live with the risk of entry to zone substations by public

Load Growth; Service

7.8.9

Do nothing and interconnect the lines using basic

connections. Construct the switching station when the need
to convert to 110kV arises

Safety; Reliability
Safety; Security
Reliability; Safety
Service; Asset Performance

6.8.4
8.9.4
8.9.4
8.3.4

SSG

Misc ABS/Switchgear changes

Misc ABS installations

$50,000

ZBG

Misc zone substation security review/

improvements
Kaimarama switching station construction

$150,000

$150,000

$1,000,000

$1,000,000

$50,000
$100,000

$50,000
$100,000

$100,000

$300,000

$900,000

$550,000

$200,000

ZOT

Misc surge arrestor replacements

Misc zone substation security and works
Misc zone substation works
Misc Earth Fault Neutraliser installations

$50,000
$100,000
$75,000

Misc oil containment installations

$160,000

$440,000

$420,000

$140,000

$320,000

Environmental

8.8.4

$60,000
$1,088,000
$480,000
$25,000
$20,000

$40,000
$302,000
$420,000
$25,000
$20,000

$40,000
$252,000
$25,000
$20,000

$20,000
$48,000
$80,000
$25,000
$20,000

$100,000
$519,000
$25,000
$20,000

Service
Service
Asset Integrity; Reliability
Service
Service

8.3.4
8.6.1
8.6.1
5.2.3
8.3.4

Misc RTU upgrades inc. migrating of RTUs to

DNP3
Misc upgrades to full SCADA control/indication

$190,000

$180,000

$180,000

$230,000

$80,000

Asset Performance; Service

8.6.2

Do nothing and some areas will not have SCADA coverage

$400,000

$70,000

$70,000

$140,000

Asset Performance; Service

8.6.2

Misc Zone Substation SCADA works

$115,000

Asset Performance; Service

8.6.2

Asset Integrity
Service

6.11.5
8.6.2

Asset Performance; Service

7.8.7

Do nothng and live without the relibility and operational

benefits these provide
Do nothng and live without the relibility and operational
benefits these provide
Defer migration to new Master Station
Do nothing and live without the reliability benefits these
schemes provide
Do nothng and live without the relibility and operational
benefits these provide

Safety; Reliability

8.9.5

$100,000

Live with the risk of entry to zone substations by public

Do nothing and live without the reliability benefits these
schemes provide
Live with oil spill risk and do nothing

ZPR

Misc Distance to Fault installations

Misc protection/relay upgrades
Misc relay replacements
Misc power quality monitoring works
Misc Earth Fault Indicator installations

Do nothing - accept H&S risk, more maintenance

Live with unknown power quality readings and do nothing
Do nothing and live without the reliability benefits these
schemes provide

ZSC

Misc outdated RTUs replacements

Misc current and/or voltage sensing additions

$50,000

$75,000
$60,000

Motoroa sub upgrade

$50,000
$60,000

$75,000
$100,000

$60,000

$500,000

ZSG

Misc CB works (inc. motorise, reconfigure and

protection)
Totals

$400,000

$250,000

$17,953,200

$15,514,186

$11,702,000

$11,008,000

unspecified development projects

$0

$0

$0

$0

Reactive Development
Deferrals from previous year
Deferrals to next year
Total (real)
Total (nominal)

$2,646,613
$2,723,886
$2,807,356
$2,776,116
$$7,366,748 $11,985,388 $12,457,965
-$7,366,748 -$11,985,388 -$12,457,965 -$12,361,499
$13,233,065 $13,619,432 $14,036,779 $13,880,582
$13,567,168 $14,280,948 $15,042,375 $15,202,238

Return to Index

Do nothing and live without the reliability benefits these

schemes provide

$8,172,700
$0

$2,751,453
$12,361,499
-$9,528,387
$13,757,265
$15,398,657
ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

203

204

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Increased Development 2007

120
100
Increased Eastern Development 2003

80
60
40
20

FY 2021 F

FY 2020 F

FY 2019 F

0
FY 2018 F

Working from the top down (which are compared with the bottom up forecasts and
mainly used for horizon years 3 -10), the expenditure forecasts comprise the previous
AMP expenditure forecast escalated for growth in line length (as a proxy for increase in
assets to be inspected and maintained), inflation (as a proxy for increase in unit rates)
less an efficiency factor (between 1.0% and 1.5%) and adjusted for specific issues
noted and agreed to by key stakeholders during the previous year. Capital expenditure
(other than customer connection or system growth) is forecast in a similar manner by
escalating by inflation (as a proxy for increase in unit rates) less an efficiency factor
of between 1% and 1.5%. Customer connection and system growth capex are the
hardest to forecast as they driven by growth as opposed to factors that are more within
the control of Powerco such as the condition of the assets, the number of assets and
the costs of renewing (including maintaining) or development work on those assets.

140

FY 2017 F

Working from the bottom up (principally for horizon years 0 -2), expenditure forecasts
are based on identified maintenance regimes and projects identified (as set out in
Sections 6, 7 and 8) (as is more particularly described in Section 9.2.3).

Increase in non CIW capex

160

FY 2016 F

Powercos network expenditure forecasts are developed from both the bottom up
and the top down, and the process of deriving these is an iterative one that seeks to
optimise the levels of performance and risk (refer Section 4.1).

180

FY 2015 F

The purpose of this Section 9.2.1 is to provide a general level of information for
customers and other stakeholders on the key assumptions that underpin the
expenditure forecasts.

Preventive Maintenance Expenditures

200

FY 2014 F

Background and Significant Assumptions

FY 2013 F

9.2.1.

FY 2012 F

Assumptions and Strategic Influences Underlying the Expenditure

Forecasts

Finally, in the April 2010 AMP, the Customer Connection and Asset Relocation
expenditure forecasts were reduced on account of the recession, the system growth
and reliability, safety and environment expenditures were not reduced despite the
reduced recessionary volumes but were instead increased by 10% on account of
the higher-than-anticipated price threshold X factor.

FY 2011 F

9.2.

Thirdly, in 2007, development expenditure was forecast to increase due to the high
growth rates;

FY 2010 F

As noted in the Executive Summary, a key focus of this AMP is on reducing the
risk to adverse reliability performance (from the failure of aging assets or the loss of
redundancy in the core network due to load growth). We are committing an extra $6m
of capex per annum for focussed investment in security, capacity and reliability. The
increase in expenditure has been made possible by the outcome of the Default Price
Path (that regulates Powercos revenue) effective from 01 April 2010.

FY 2009 F

Improve service performance where the service standards are not being met.

Secondly, between 2004 and 2006, renewal expenditure increased due to the
recognition that renewal activities were more expensive than previously believed and
that renewal activities not done were building up;

FY 2008 F

Develop the assets to meet the new and future load growth; and

Firstly, that after the acquisition of the Eastern Region network, it was discovered
that the scale of development work in the Eastern Region would have to double;

FY 2007 F

Maintain levels of service performance for the assets;

As noted above, the top down expenditure forecasts have been adjusted for specific
issues - such as the following:

FY 2006 F

The network expenditure forecasts detail the development, renewal and maintenance
expenditure to:

FY 2005 F

Introduction

FY 2004 F

9.1.

FY 2003 F

FINANCIAL

Total Forecast Expenditure (nominal $ million)

9.

Actual
Aug 02 AMP F'cast

Aug 03 AMP F'cast

Aug 04AMP F'cast

Aug 05 AMP F'cast

Oct 06 AMP F'cast

Sept 07 AMP F'cast

Mar 09 AMP F'cast

Apr 10 AMP F'cast

Figure 9.1: AMP Expenditure Forecast against Previous AMP Expenditure Forecasts.

Return to Index

9.2.2.

Budget reforecasts are made quarterly, allowing adjustments to the expenditure

forecasts, especially if unforeseen events occur during the year.

Strategic Influences

Approval of the expenditure forecasts is made at Board level. As part of this approval,
the following factors are considered:
What was last years actual and budgeted spend, and what was the AMP forecast
expenditure for that year;

9.2.4.

The expenditure forecasts for FY2011 are weighed against detailed planning and
assessment of the assets. The forecasts in the mid to later years have been set given the
general application of the planning criteria and load growth projections to the network, and
broad projections of asset condition-based renewal and maintenance needs.

The revenue that Powerco is allowed to earn under the current default price path
and investors (debt and equity) expectations of earning risk adjusted returns on
their investments;
The perceived level of investment risk associated with the regulatory regime
(consistency, predictability, transparency, accountability, balance, independence,
efficiency); and

9.2.3.

Forecast Accuracy

9.3.

Capital and Maintenance Expenditure Overview

9.3.1.

Expenditure Categories

Individual project and annual budget justification. In particular, the regulatory

regimes treatment of capital efficiency factor (actual project cost when compared
with the ODV replacement costs) and ongoing increases in asset installation and
maintenance costs will be a critical factor in the justification. That is, should the
regulatory regime not properly recognise the actual cost of projects it becomes
difficult for investors to justify undertaking this type of work.

Powerco has aligned its accounting systems with the Commerce Commissions revised
Information Disclosure Requirements (31 October 2008) covering the disclosure of
capital and operational expenditures and forecasts. The capital expenditures are down
into the following categories:

Multiple Stakeholder Influences

Asset Replacement and Renewal

Network expenditure forecasts are developed in conjunction with Asset Management

planning, taking into consideration things such as the age and condition of existing
assets, targeted service standards, projected growth rates, regulatory requirements,
the financial position of the company and the expectations of the companys capital
providers. These considerations are summed up in the multi-stakeholder assessment
process described in (Section 2.6).

Reliability, Safety and Environment

The process of deriving expenditure forecasts is an iterative one that seeks to optimise
the performance and risk levels in the network within these competing constraints
(refer Section 4.1). In particular, projected network expenditure needs to be given
consideration within the context of the revenue allowed by regulatory regime and
Powercos mandate of delivering long-term sustainable earnings and interest payments
to its capital providers.

Refurbishment and Renewal (Corrective) Maintenance

The programme of work for a given period is passed through the Multi-Stakeholder
Prioritisation process (refer to Section 2.6). With this process, the strategic values and
risks associated with each potential project are weighed against their associated dollar
expenditure. A decision can be made at budgeting time on the best projects to include
in a work programme given a constrained budget, or the constrained budget can be
varied to obtain the best strategic value outcome.

Return to Index

Customer Connection
System Growth

Asset Relocations
Operational expenditure forecasts are broken down into these categories:
Routine and Preventive (Scheduled) Maintenance
Fault and Emergency (Reactive) Maintenance
In the past, Powerco has categorised the expenditure by three categories:
Development (includes enhancements and extensions): Capital expenditure on
new assets, or expenditure that materially improves the service potential and
performance of the existing assets;
Renewal: Capital expenditure on the replacement of existing assets that maintains
the original level of service performance and extends the economic life of the
network. For example, replacement of like with like or the refurbishment of an
existing asset to provide an extension of existing life; and
Operating and maintenance: Generally, this is operational expenditure directly
associated with running the electricity distribution network that cannot be
capitalised.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

205

In this section of the AMP, the expenditure forecasts are presented in these two
different ways. It should be noted that because Powerco has historically reported its
expenditures internally under different categories from those required by the Information
Disclosure Requirements, the expenditures by category have had to be derived by
extrapolating project samples queried from Powercos works management system and
management accounts. Therefore, while the historical recategorised expenditures have
not been audited, they do outline the overall trends.
9.3.2.

Key Asset Management Programme

Table 9.1: Key Capital Programme Summary

Expenditure
Category

Customer
Connections

Next 2 Years

3-5 Years

5-10 Years

Reticulate subdivisions
Connect new customers
Upgrade existing customer connections
Distribution transformer upgrades

System Growth

Tables 9.1 and 9.2 below summarise the key work programmes envisaged over the
next 10 years. Table 9.1 shows that the capital programme will have to adapt to the
issues expected to occur, while the opex programmes are largely consistent over the
planning period. The tables do not reflect the improvements in standards that are
expected to arise from ongoing improvement processes.

Construct new zone

substations

Construct new zone

substations

Construct new zone

substations

Construct new
subtransmission
feeders & easement
compensation

Construct new
subtransmission feeders

Construct new subtransmission Feeders &

easement compensation

Install new distribution

feeders

Accelerate resource
consent and easement
compensation
Install new distribution
feeders

Install new distribution

feeders
LV upgrades (particularly
CBDs)

LV upgrades (particularly
CBDs)
Reliability
Safety and
Environment

Reliability improvements: Fault neutralisers, recloser and loop automation

schemes, fault locators and fault indicators

Asset
Replacement
and Renewal

Overhead line renewal

cross-arm, conductor
and pole replacement

Overhead line renewal

cross-arm, conductor
and pole replacement

Overhead line renewal

cross-arm, conductor
and pole replacement

Zone substation CB
replacement

Zone substation CB
replacement

Zone substation CB
replacement

Safety and Environmental Improvements: Oil bunds, earthing upgrades,

switchgear replacements (where safety is a driver)

Cable replacements
Distribution transformer
replacements
Asset
Relocations

206

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

New line or cable installed through third party asset relocation request
Overhead underground conversion

Return to Index

Generally, the forecast trend is one of a growing level of real network capital
expenditure. This is largely because of the increasing requirement for renewal capex as
the average age of the network increases.

Table 9.2: Key Operational Programme Summary

3-5 Years

5-10 Years

Network planning
Network operations

160,000

2.000

Network operating (leases, site services)

140,000

1.750

120,000

1.500

100,000

1.250

80,000

1.000

60,000

0.750

40,000

0.500

9.3.3.

Immediate fault repairs

Capital Expenditure

2021 F

2020 F

2019 F

2018 F

2017 F

2016 F

Inflation Index

Financial Year

Figure 9.2: Total Network Capital Expenditure.

Relationship with Disclosed Expenditures

The Asset Management Plan expenditure actuals are aligned to the July to June
operational calendar and 30 June balance date used by Powerco. The regulatory
information disclosures are made with an April to March calendar year. This means that
some timing discrepancies may arise between the Asset Management Plan and the
regulatory disclosure information.
9.4.

Routine & Preventive Maintenance

2015 F

Fault callouts

2014 F

Fault and
Emergency
Maintenance

0.250

20,000

2012 F

Corrective network repairs resulting from scheduled inspections and fault

callouts

2013 F

Contractors maintenance management

Refurbishment
and Renewal
Maintenance

2011 F

Service disconnections

2010 F

Non-routine servicing & asset relocations

2008 A

Routine servicing & overhauls

2009 B

Network inspections

Inflation Index

Total Network Capex

Network owner maintenance management & contract administration

2007 A

Routine and
Preventive
Maintenance

Next 2 Years

2006 A

System
Management
and Operation

Nominal Expenditure ($000)

Expenditure
Category

9.4.1.

Treatment of Uncertainty in the Capital Expenditure Forecasts

Uncertainties in the Customer Connection and Asset Relocation actual versus budget
figures arise due to the nature of the customer requests. Because these projects are
partly recoverable, under or oversubscription of the available budget usually has a
neutral impact on the companys financial position. For this reason, variations in the
actual expenditure are usually accepted by senior management and the Board.

Capital expenditure (capex) is expenditure that is used to create new assets or to

increase the service performance or potential of an existing asset beyond its original
service performance or service potential. Capital expenditure increases the value of the
asset stock and is capitalised in accounting terms.

The other capital expenditure categories each have a reactive and scheduled
component. The aim of the reactive component is to provide a buffer for unforeseen
events during the year. Examples of reactive work include unforeseen replacement of
equipment in poor condition or replacement following storms.

The forecast total capital expenditure to FY2021 is shown in the diagram below (bluecoloured bars) along with the actual (A) capital expenditures from the FY2006 to FY2009
periods (purple bars) and the budgeted capital expenditure for FY2010 (green bar).

Capital budgets are monitored at the end of every month and budget reforecasts are
made quarterly. Underspend on the reactive budget allowances can be taken up by
adding additional projects to the annual capital programme. Reactive budget overspend
can be accommodated by deferring projects in the annual capital programme.

In this and the other graphs below, the expenditure forecasts are denominated in
nominal dollar values (as at the middle of the forecast year) in line with the disclosure
requirements. To provide a reference to the degree of inflation indexation, an inflation
index line is also shown in the graph. The inflation index is based on Department of
Statistics figures and NZIER forecasts. Forecasts are inherently uncertain.

Return to Index

The majority of the expenditures within the capital expenditure categories of System
Growth, Reliability, Safety and Environment and Asset Renewal are involved in scheduled
programmes of work. A portion of the expenditures is set aside for unforeseen work. These
reactive sub-categories have been set aside that cater for unforeseen or non-programmed
events, such as unexpected equipment failure and storms.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

207

9.4.3.

Allowance is also made for opportunities to purchase land for future zone substation
sites or easements for lines. In our experience, gradual land or easement banking as
the opportunities arise to a well-thought-out development plan is a more efficient way
of developing the network than an urgent short-term focus. When they do arise, land
opportunities need to be acted on quickly.

The increasing asset age shown in this graph means that the incidence of asset failures will
increase, leading to a growing numbers of customer outages.

32

$120

30

$100

28

$80
26

$60

Growth Capex

Renewal Capex

Average age Western

10,000

0.500
0.250

5,000

Inflation Index

2020 F

2021 F

2019 F

2018 F

2017 F

2016 F

2015 F

2014 F

2012 F

2013 F

2011 F

2010 F

Financial Year

From around FY2004 until FY2008, new connection activity was at historically high
levels, most notably in the Manawatu and Taranaki areas where connection activity
previous to this time was light. Increased activity appears to have come from the
buoyant dairy sector, oil and gas industry investment and increased industrial
warehousing with Palmerston North as a distribution hub for the lower North Island.
Connection activity in the Tauranga and Coromandel areas has historically been
consistently high but during these years, the pace accelerated. Powerco is predicting a
return to lower levels of new connection activity as the recessionary environment bites
and this is reflected in the expenditure forecast.

Average age Eastern

9.4.4.
Figure 9.3: Forecast Network Average Age

0.750

9.4.3.1 Assumptions behind the Customer Connection Capex Forecast

FY 2021

FY 2020

FY 2019

FY 2018

FY 2017

FY 2016

FY 2015

FY 2014

FY 2013

FY 2012

FY 2011

FY 2010

FY 2009

20
FY 2008

$0
FY 2007

22

FY 2006

$20

1.000

15,000

Figure 9.4: Customer Connection Capital Expenditure.

24

$40

20,000

Customer Connection capex is capital expenditure primarily associated with the

connection of new consumers to the network, or alterations to the connections
of existing consumers, where some of the expenditure is recoverable. Customer
Connection-associated capex is shown in Figure 9.4.
Average Age

Total Capex ($m)

34

1.250

Routine & Preventive Maintenance

Network Average Age and Forecast Capex

$140

1.500

25,000

Ongoing depreciation of the existing assets leads to an increased asset age.

$160

30,000

2009 B

Renewal work replaces existing assets with new ones, which leads to a reduced
average network age; and

1.750

2007 A

New subdivisions mean new assets are added to the network, which leads to a
reduced average network age;

35,000

2008 A

Figure 9.3 shows that the capital expenditure forecast, coupled with the shape of the
network age profile, causes the network average age to increase by just over three years
over the next 10 years. Influences on the asset age include:

2.000

2006 A

Impact of Expenditure Forecast on Network Average Age

40,000

Inflation Index

Customer Connection Capex

Nominal Expenditure ($000)

9.4.2.

Customer Connection Capex

System Growth Capex

System Growth capex relates to development or enhancement of the network. This

category is for work driven by:
Growth in network load, requiring an increase in network capacity;
Restore network security (and reliability), which are below the standard or customer
expectations; and
Non-recoverable extension or upgrade of the network to connect new consumers.

208

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

9.4.5.1 Assumptions behind the Reliability, Safety and Environment Capex Forecast

2021 F

2020 F

2019 F

2018 F

2017 F

2016 F

2015 F

Inflation Index

Financial Year

Figure 9.5: System Growth Capital Expenditure.

9.4.5.

Reliability, Safety and Environment Capex

Reliability, Safety and Environment capex is associated with:

Maintaining or improving the safety of the network for the public, employees,
contractors;

Improvement of reliability or service standards; and

Meeting environmental standards.

Return to Index

35,000

1.750

30,000

1.500

25,000

1.250

20,000

1.000

15,000

0.750

10,000

0.500
0.250

5,000
0

Inflation Index

Routine & Preventive Maintenance

2014 F

2013 F

2012 F

2010 F

2011 F

2009 B

2008 A

2007 A

2.000

Routine & Preventive Maintenance

Inflation Index

2021 F

0.250

2020 F

5,000

Reliability, Safety & Environment Capex

40,000

2019 F

0.500

2018 F

10,000

2017 F

0.750

2016 F

15,000

2015 F

1.000

2014 F

20,000

2012 F

1.250

2013 F

25,000

As set out in the April 2009 AMP, the Reliability, Safety and Environment expenditures
were to have been reduced somewhat on account of the recession. However, it has
been decided that this should not happen. Instead, the forecast expenditures have
been increased by 10% over the previous years forecasts in reflection of the higher
than anticipated X factor in the CPI-X price threshold.

2011 F

1.500

An increase in this category of expenditure is expected to be needed to cater for

Powercos programmes of replacement of ground-mounted switches, network
automation and site environmental compliance (described in Sections 6 and 8).
The expenditure forecasts reflect this need.

2010 F

30,000

supply to consumers.

2008 A

1.750

Replacement of assets due to an operational constraint or safety issues;

Environmental compliance issues; or
Installation of reclosers or network automation schemes to improve the reliability of

2009 B

35,000

Inflation Index

2.000

2006 A

Nominal Expenditure ($000)

System Growth Capex

40,000

Reliability, safety and environment projects may include:

2007 A

As set out in the April 2009 AMP, consideration of reducing the system growth
expenditures was given on account of the adverse impacts of the recession on system
volumes. However, these reductions have not been made. Instead, the forecast system
growth expenditures have been increased by 10% over the previous years forecasts in
reflection of the higher than expected X factor in the CPI-X price threshold.

Capital expenditure associated with Reliability, Safety and Environment compliance or

improvement has had to be extrapolated as it has been historically recorded in Powercos
works management system under both the network renewal and the system growth
categories.

2006 A

The System Growth capital expenditure levels are shown in Figure 9.5. They reflect a
need to increase the capacity and security in the network in order to catch up with the
recent high levels of growth, particularly in Coromandel and Tauranga areas (i.e. the
network is carrying a higher degree of adequacy risk than the security and capacity
performance requirements indicate). Reflecting this, the system growth expenditure is
maintained roughly constant in real terms over the next three years before gradually
reducing due to the reduction in customer connection activity and volume growth.

Nominal Expenditure ($000)

9.4.4.1 Assumptions behind the System Growth Capex Forecast

Financial Year

Figure 9.6: Reliability, Safety and Environment Capital Expenditure.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

209

Asset Replacement and Renewal Capex

A consequence of overly constraining investment in asset renewal is that it then has to

be managed reactively. Powerco is constantly striving to ensure an appropriate balance
between scheduled and reactive work. Reactive work can be associated with long
supply outages to customers, increased health and safety risks, hasty network designs
that can lead to short-term patches and future liabilities, in turn leading to increased
asset life cycle costs. Failure to proceed with adequate network renewal will significantly
increase the likelihood that reliability of supply and safety levels will deteriorate.

210

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

1.750

60,000

1.500

50,000

1.250

40,000

1.000

30,000

0.750

20,000

0.500
0.250

10,000

Routine & Preventive Maintenance

Inflation Index

2021 F

2020 F

2019 F

2018 F

2017 F

2016 F

2015 F

2014 F

2012 F

2013 F

2011 F

2010 F

2008 A

The renewal expenditure forecasts have increased by 10% on account of the higher
than anticipated X factor in the price threshold reset.
Asset Renewal capex has a need to significantly increase above existing levels because
of the large number of assets commissioned in the 1950s-1970s now reaching the
end of their life. The drivers for asset renewal are explained in Section 6. The forecast
expenditure line (in gold) in Figure 6.9 shows that the average renewal expenditure
required over the next five years is between $40 and $50 million and that renewal
expenditures will need to increase beyond this over coming years. The large bars in
2010 show the replacement value of equipment that is beyond its design life. The
forecast renewal expenditure has been derived by trending the present levels upwards
at a fixed percentage. The rate of increase chosen was 8.6% reflecting the capability
of service providers to increase capacity. The gold line in the figure shows a shortfall in
early years that will eventually be caught up, implying a degree of deferral is happening
based on asset condition that will eventually need to be caught up. Attendance to
this shortfall will require agreement between Powercos owners and the Economic
Regulator. Actual levels of renewal work will be dependent upon the individual project
and annual budget justification, and in particular the treatment of the higher renewal
costs when compared with ODV replacement costs under the regulatory regime will be
a critical factor in the justification.

70,000

2009 B

The expenditure forecasts take account of the life extension practices described in
Section 6 and assume a small level of deferral due to the adoption of new technology.

2.000

2007 A

Nominal Expenditure ($000)

9.4.6.1 Assumptions behind the Asset Renewal Capex Forecast

80,000

Inflation Index

Asset Replacement & Renewal Capex

Asset Renewal capex generally relates to meeting the progressive deterioration of the
condition of network assets, or because of obsolescence of network assets. This may
include replacement of existing assets where these assets have been identified as
being at the end of their economic life, based on their assessed condition. As the asset
replacement decision is based on the most recent condition assessment, the expenditure
forecasts in the mid to later years should be taken as a general guide only. The longer
term forecasts are based on age profiles and standard lives: analysis of asset condition
information is the best way of forecasting renewal in the short term.

2006 A

9.4.6.

Financial Year

Figure 9.7: Asset Replacement and Renewal Capital Expenditure.

9.4.7.

Asset Relocation Capex

Asset Relocation capex is that associated with the need to move assets as a result of
third-party requests. As a capital expenditure, the expectation is that new assets would
be created as a result of the relocation: a simple relocation of an existing asset is an
activity that should be expensed.
Asset relocation may include:
New line/cable constructed as part of route realignment, resulting from a third-party
request; or
Overhead line to underground conversion.
9.4.7.1 Assumptions behind the Asset Relocation Capex Forecast

The significant reduction in forecast expenditure occurs because of the scheduled

completion of the Palmerston North undergrounding programme, a programme to
renew the aged overhead line network with underground cable as part of an agreement
with the Palmerston North City Council dating back to the mid-1990s. Although not
reflected in the budgeted expenditure for FY10, finalisation of this programme occurs in
2010 due to the project being rolled over from the previous year.
Asset relocations are, at best, difficult to forecast because they are driven by third
parties and can involve large works if, for example, a highway is being rerouted. They
may increase if the Government embarks on fiscal stimulus policies, such as road
upgrade projects.

Return to Index

The graphs below identify the forecast scheduled capital expenditures against values of
the projects residing in the improvement register. Projects that enter the improvement
register result from Asset Management subprocesses, such as the preparation
of the long-term development plan, medium development plan and special Asset
Management plans.

Asset relocation capex is of a comparatively small amount compared to other asset

categories. Because of its comparative small magnitude, the graph of asset relocations in
Figure 9.8 is presented on a scale 10 times larger than the other capex categories.

Inflation Index

2021 F

Financial Year

Figure 9.8: Asset Relocations Capital Expenditure.

Forecast Capital Expenditures against Improvement Register Content

As set out in Section 2.6, not all of the work resulting from the Asset Management
process can proceed straightaway. Likewise, Section 4.1 states that the Asset
Management process is a balance between cost, risk and performance. The multistakeholder assessment process ensures that only the projects with a high strategic fit
with the all of the stakeholder requirements are given the priority to proceed. Projects
resulting from the Asset Management process are entered into the improvement
register and reside there until they are given a green light to proceed into the annual
works plans.

Replacement or Renewal Capex: Budget vs Improvement Register

$2 m average annual diff

Nominal $ 000

Routine & Preventive Maintenance

Inflation Index

25,000

2020 F

2019 F

30,000

2018 F

0.250

2017 F

500

2016 F

35,000

2015 F

0.500

2014 F

0.750

1,000

2013 F

1,500

2012 F

1.000

2010 F

2,000

2011 F

1.250

2009 B

1.500

2,500

2008 A

3,000

2007 A

1.750

9.4.8.

These improvement register projects reflect the work required when assessing the existing
assets (age, condition and configuration) against Powercos asset planning standards
(which reflect the Asset Management drivers). By not spending up to the improvement
register budgets, the risks of not meeting our performance standards are increased. The
graphs in Figures 9.9, 9.10 and 9.11 reflect the projects in Tables 6.2, 7.27 and 8.4.

2.000

3,500

2006 A

Nominal Expenditure ($000)

Asset Relocations Capex

4,000

20,000
15,000
10,000
5,000
0

FY 2011 F

FY 2012 F

FY 2013 F

Scheduled Asset Replacement and Renewal Budget

FY 2014 F

FY 2015 F

IR Asset Replacement and Renewal Capex

Figure 9.9: Scheduled Replacement and Renewal Capital Expenditure.

Of the five capital expenditure categories, the Customer Connection and Asset
Relocation categories (apart from the Palmerston North undergrounding programme)
are driven by third parties and usually involve little Asset Management discretion about
whether or not they proceed. The other categories of System Growth; Reliability, Safety
and Environment and Asset Replacement and Renewal are scheduled as a result of the
Asset Management process and require more Asset Management-type decision-making.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

211

Tables 6.2, 7.27 and 8.4 show the major programmes of work for renewal and
development. The FY11 to FY15 columns show the value of work from the Improvement
Register in summary form.

System Growth Capex: Budget vs Improvement Register

50,000

The graphs above demonstrate that Powerco could be spending approximately $17
million per year more than it is forecasting on scheduled network capital expenditure.
That is, if the regulatory environment were more amenable towards investment,
Powerco could justifiably be spending this much more.

Nominal $ 000

40,000
30,000
$13 m average annual diff
20,000

9.4.9.

A description of the status of completion of the capital programme against the plan is
given in Section 5. The effectiveness of the capital programme is described in Sections
6, 7 and 8.

10,000
0
FY 2011 F

FY 2012 F

Scheduled System Growth Budget

FY 2013 F

FY 2014 F

FY 2015 F

9.5.

IR System Growth Capex

Figure 9.10: Scheduled System Growth Capital Expenditure.

Reliability, Safety or Environmental Capex: Budget vs Improvement Register

20,000
16,000
Nominal $ 000

Operational Expenditures
Operational expenditures are those expenditures directly associated with running the
electricity distribution network that cannot be capitalised. These include maintenance
expenditures required to operate or maintain the assets to achieve their original design
economic lives and service potentials. Powercos maintenance work comprises the
following:
Routine condition-monitoring;

18,000

Routine servicing;

$2 m average annual diff

12,000

Evaluation of inspection and condition-monitoring results to determine any

maintenance requirements;

10,000

Evaluating faults to predict condition-monitoring and maintenance requirements;

14,000

8,000

Performing maintenance overhauls;

6,000

Rotable asset relocation;

4,000

Fault repair; and

2,000
0

FY 2011 F

FY 2012 F

FY 2013 F

Scheduled Reliability, Safety and Environment Budget

FY 2014 F

FY 2015 F

IR Reliability, Safety and Environment Capex

Figure 9.11: Scheduled Reliability, Safety and Environment Capital Expenditure.

As mentioned above, the projects in the Improvement Register are categorised by

System Growth, Reliability, Safety and Environment and Asset Replacement and
Renewal. Furthermore, the Improvement Register does not include projects of a
reactive nature, where only short notice is available of the project need.

212

Status of Capital Programme Initiatives

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Network operations.
The operating and maintenance expenditures also include direct management costs
not directly associated with creating network assets, such as customer management,
network planning, network operating and managing service provider relationships. They
include site leases, site service charges, network insurance, charter payments and
other like costs. They may include the costs of decommissioning existing assets (where
a new asset is not created).

Return to Index

The operating and maintenance expenditure forecast has been set based on
benchmarked operational costs per asset replacement cost and per system length,
based on present work levels, after adjustments have been made to allow for increased
service provider efficiency (downwards) and growth in system length and ODV
(upwards). These are confirmed against the asset maintenance plans developed using
the maintenance strategy and Powercos present operating practices.

9.5.1.

The Renewal and Refurbishment and Fault and Emergency expenditure categories
provide a buffer in the Operational Expenditure forecasts to cater for unforeseen events.
However, greater than foreseen corrective or reactive work is less easily accommodated
by varying the scheduled maintenance plan (routine inspections or services) than it is
in the capital works programme. Some of the major preplanned work can be brought
forward or deferred, such as painting of transformers, but these projects are generally on
the fringes of the programme. Deferring maintenance increases the levels of network risk.

The forecast total operational and maintenance expenditures to FY2021 are shown in
the diagram below (blue-coloured bars) along with the actual (A) capital expenditures
from the FY2006 to FY2009 periods (purple bars) and the budgeted capital expenditure
for FY2010 (green bar).

There is a moderate risk, therefore, that unforeseen events can cause the operational
expenditures to vary significantly around the budget, leading to a Financial Performance
impact. The operational expenditures are monitored against budget at the end of every
month and budget reforecasts are made quarterly.

The operational expenditure forecasts are denominated in nominal dollar values in line
with the disclosure requirements. The inflation index is also shown in the graph.
9.5.2.

Total Direct Operational Expenditure

50,000

2.000

1.500
1.250

30,000

1.000
20,000

0.750
0.500

10,000

0.250

Routine & Preventive Maintenance

Figure 9.12: Total Direct Operational Expenditure.

Return to Index

Inflation Index

2021 F

2020 F

2019 F

2018 F

2017 F

2016 F

2015 F

2014 F

2013 F

2012 F

2010 F

2011 F

2009 B

2008 A

2007 A

2006 A

Financial Year

Inflation Index

Nominal Expenditure ($000)

1.750
40,000

Treatment of Uncertainty in the Operational Expenditure Forecasts

Routine and Preventive Maintenance Opex

Routine and Preventive Maintenance opex is driven by pre-planned work schedules.

It comprises network inspections and routine overhauls of equipment, as well as
prescribed vegetation-clearing in accordance with the annual maintenance plan. It also
includes maintenance of a non-routine nature such as roof replacements or relocations
of rotable assets.
The asset inspections are largely driven by the need to quantify, monitor and record
the potential risks to the network, the public and to employees. The routine overhauls
and non-routine maintenance activities are driven by the need to maintain the integrity,
performance and potential of the existing assets.
The Routine and Preventive Maintenance expenditures are those expenditures that are
allowed for in the annual maintenance plan. These include condition-based monitoring,
routine servicing and routine overhauls. The category includes vegetation work.
9.5.2.1 Assumptions behind the Routine and Preventive Maintenance Forecasts

The subsequent fault restoration activities in the Routine and Preventive category
overlap with the activities that would occur in the Renewal and Refurbishment
Maintenance category. Instead, it would seem that the renewal and refurbishment
category should be more aligned to delayed fault rectification work as they tend
to largely involve the replacement or refurbishment of asset subcomponents. The
interpretation applied is that maintenance should be categorised as Routine and
Preventive if it is allowed for in the Annual Maintenance Plan.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

213

The preventive maintenance expenditure forecasts have been set at a top-down level
by prorating the historical expenditures against the expenditures associated with
other forms of maintenance. The preventive maintenance expenditure forecasts are
benchmarked by analysing the sum of the costs of the different maintenance tasks
for each asset type. These are, in turn, determined by the product of the quantity of
each maintenance task and the applicable unit rates. This analysis has been performed
as part of Powercos five-year maintenance planning process and is summarised in
the graph below. In this graph, the dark blue bars show the budgeted and forecast
preventive maintenance expenditures, while the orange, pink and yellow bars show
the expenditure required to fulfil the maintenance plan. Variations occur year on year in
the expenditure requirement because of the differing amounts of assets in the regions
being maintained.

Preventive Maintenance Expenditures

16,000
14,000
12,000

$ 000

10,000

6,000
4,000
2,000
0

The forecast preventive maintenance expenditures rise above the budgeted figure
for FY2009 in recognition that the network length is continuing to grow and that the
scale of maintenance tasks needs to increase as the assets age. Conversely, ongoing
efficiency improvements have been built into the forecasts.
The graph in Figure 9.14 shows that, in general, the budget for preventive maintenance
is rather short, leading to the risk that some maintenance has to be deferred, which
would lead to a possible increase in public liability risk, supply reliability and possibly
earlier renewal.

14,000

1.750

12,000

1.500

10,000

1.250

8,000

1.000

6,000

0.750

4,000

0.500
0.250

2,000

Routine & Preventive Maintenance

Inflation Index

Figure 9.13: Routine and Preventive Maintenance Expenditure.

214

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

2021 F

2020 F

2019 F

2018 F

2017 F

2016 F

2015 F

2014 F

2013 F

2012 F

2010 F

2011 F

2009 B

2008 A

2007 A

2006 A

Financial Year

Inflation Index

Nominal Expenditure ($000)

2.000

FY 2010 F

FY 2011 F

FY 2012 F

FY 2013 F

FY 2014 F

FY 2015 F

Planned Maintenance Budget

OH Line Requirement

UG Cable Requirement

Dist Tsfrmrs Requirement

Dist Switchgear Requirement

Zone Subs Requirement

SCADA/ Comms/ Ripple

Rotable assets

South Waikato CFS

Vegetation Mgmt Requirement

Figure 9.14: Preventive Maintenance Expenditure.

9.5.3.

Refurbishment and Renewal Maintenance

Refurbishment and Renewal maintenance is associated with the replacement,

refurbishment or renewal of items that are component parts of an asset, as described
in the ODV Handbook. Powerco has interpreted this be expenditure of a corrective
nature, intended to repair assets that have been found to be defective, arising either as
a result of the preventive inspection programme or in response to a callout.

Routine & Preventive Maintenance

16,000

8,000

9.5.3.1 Assumptions behind the Refurbishment and Renewal Maintenance Forecasts

The definition of this expenditure in the Commerce Commissions October 2008

paper conflicts with the maintenance category definitions in that often opex involving
renewal of components of an asset are pre-planned in nature (such as transformer
repair) or they form part of first fault response (such as replacement fuses). Powercos
interpretation applied to this form of expenditure is it is best aligned to maintenance
of a corrective nature, required to restore an asset to its proper condition so that
it can continue to deliver its required service performance. It comprises all defect
repairs, all work identified as being required to be followed up as a result of any routine
maintenance inspection task and all fault follow-up work where permanent repairs are
required to replace temporary repairs.

Return to Index

Budgeting for these expenditures has been done by extrapolating previous years
expenditures with due allowance for extensions to the network (increase), efficiency in
service provider (decrease) and ageing of equipment (increase). Corrective maintenance
is difficult to budget for if the numbers and types of repairs are not foreseeably
articulated. Ideally, defect information from the maintenance management system can
be used to verify the forecast, but usually the defects arise post-forecast.

9.5.4.1 Assumptions behind Fault and Emergency Maintenance Forecast

This category is reactive in nature, being the unscheduled inspection of an asset due
to failure or if it is not providing its required performance level. It comprises activities
undertaken by personnel responding to a reported failure of the network, including any
back-up assistance necessary at the time to restore supply, repair leaks or make safe.
The work can be either temporary or permanent in nature. Where follow-up work is
needed, that is deemed to be corrective in nature.

A reduction in this form of expenditure has been made reflecting a need for greater
Fault and Emergency maintenance.

Similarly to corrective maintenance, the Fault and Emergency Maintenance has been
budgeted through historical extrapolation. It is benchmarked by considering the
numbers of callouts and unit cost per job.

0.500

Routine & Preventive Maintenance

As a long-term trend, it is expected that, as the asset base continues to age and
a greater proportion of assets reach their end-of-life, corrective maintenance costs
will have to increase. Conversely, however, many of the new assets being installed,
such as switchgear, require much less maintenance than their older counterparts. If
a shortfall exists in the refurbishment and renewal maintenance forecast, expenditure
can potentially be borrowed from the preventive maintenance budget or the corrective
maintenance can be deferred, but any deferred maintenance needs to be caught up
with. The status of maintenance completion is outlined in Section 5.
9.5.4.

Fault and Emergency Maintenance

Inflation Index

2020 F

2021 F

2019 F

2018 F

Figure 9.15: Refurbishment and Renewal Maintenance Expenditure.

2017 F

Financial Year

0.250

2,000
0

Inflation Index

4,000

2016 F

2021 F

2020 F

2019 F

2018 F

2017 F

2016 F

2015 F

2014 F

Inflation Index

0.750

2015 F

Routine & Preventive Maintenance

2013 F

2012 F

2010 F

2011 F

2009 B

2008 A

2007 A

1.000

6,000

2014 F

0.250

2,000

8,000

2012 F

0.500

2013 F

4,000

1.250

2011 F

0.750

1.500

10,000

2010 F

6,000

1.750

12,000

2009 B

1.000

8,000

14,000

2007 A

1.250

2.000

2008 A

10,000

Fault & Emergency Maintenance

16,000

2006 A

1.500
Nominal Expenditure ($000)

1.750

12,000

Inflation Index

2.000

14,000

2006 A

Nominal Expenditure ($000)

Refurbishment & Renewal Maintenance

16,000

Financial Year

Figure 9.16: Fault and Emergency Maintenance Expenditure.

9.5.5.

System Management and Operations Expenditures

System Management and Operations expenditures include the direct costs associated
with managing the network. This includes electricity network site expenses such as
water, phone, power, communications and site leases. It includes network planning
process expenses, the non-capitalisable portion of the service provider relationship
management process (contract and project management), and network operations
expenses.

Fault and Emergency Maintenance is reactive in nature and generally comprises

callouts to restore power.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

215

9.5.5.1 Assumptions behind System Management and Operations Forecast

The budgeted and forecast figures assume an annual efficiency improvement of 1.5%
and an increasing network length of 1% per year. The reduction of cost in 2009 was
because of a higher than forecast capitalisation recovery.
The System Management and Operations forecast expenditures are expected to
increase because the capabilities of the Planning and Service Delivery teams are
planned to expand.

14,000

1.750

12,000

1.500

10,000

1.250

8,000

1.000

6,000

0.750

4,000

0.500
0.250

2,000

Routine & Preventive Maintenance

Inflation Index

2021 F

2020 F

2019 F

2018 F

2017 F

2016 F

2015 F

2014 F

2013 F

2012 F

2010 F

2011 F

2009 B

2008 A

2007 A

Inflation Index

2.000

2006 A

Nominal Expenditure ($000)

System Management & Operations

16,000

Financial Year

Figure 9.17: System Management and Operations Expenditure

9.5.6.

Status of Maintenance Initiatives

A description of the status of completion of the maintenance programme against the

maintenance plan is given in Section 5. The effectiveness of the maintenance initiatives
are described in Section 6.
9.6.

Expenditure Forecast Summary

The Asset Management expenditure forecasts are given in Tables 9.3 to 9.5. All values
are expressed in nominal $ terms (that is, the expected purchasing power of the dollar in
the year that it is forecast in). Inflation indexing has been forecast with a long-term index
of 2.2%.

216

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Table 9.3: Capital Expenditure Forecast ($000) (Nominal $ Values)

Capex summary breakdown

FY 2006 A

FY 2007 A

FY 2008 A

FY 2009 A

FY 2010 B

FY 2011 F

FY 2012 F

FY 2013 F

FY 2014 F

FY 2015 F

FY 2016 F

FY 2017 F

FY 2018 F

FY 2019 F

FY 2020 F

FY 2021 F

Customer Connection

23,714

22,076

29,144

29,023

18,366

19,860

18,919

18,141

17,123

16,262

16,620

16,985

17,359

17,741

18,131

18,530

System Growth

11,563

14,472

15,951

18,853

22,474

23,796

24,411

25,023

23,940

22,787

23,288

23,801

24,324

24,859

25,406

25,965

Reliability, Safety and Environment

7,413

8,128

8,961

10,986

10,845

13,567

14,281

15,042

15,202

15,399

16,309

17,302

18,323

19,436

20,652

21,980

Asset Replacement and Renewal

16,526

14,164

15,626

20,710

21,177

24,441

27,131

30,098

33,390

37,043

41,098

45,597

50,227

55,355

61,037

67,333

2,635

2,453

3,238

3,225

1,422

2,207

2,338

2,242

2,335

2,218

2,266

2,316

2,367

2,419

2,472

2,527

61,851

61,293

72,920

82,797

74,285

83,870

87,080

90,545

91,989

93,708

99,581 106,002 112,601 119,811 127,699

136,335

FY 2010 B

FY 2011 F

FY 2012 F

FY 2013 F

FY 2014 F

FY 2015 F

FY 2016 F

FY 2017 F

FY 2018 F

FY 2019 F

FY 2020 F

FY 2021 F

Asset Relocations

Total Capex

Table 9.5: Operating & Maintenance Expenditure Forecast ($000) (Nominal $ Values)
Opex summary breakdown

FY 2006 A

FY 2007 A

System Management & Operations

6,654

6,750

7,627

5,968

8,026

10,351

11,041

11,760

11,920

12,120

12,336

12,556

12,778

13,004

13,233

13,524

Routine & Preventive Maintenance

9,427

9,901

11,510

10,394

11,800

11,521

11,750

12,015

12,162

12,436

12,710

12,989

13,275

13,567

13,866

14,171

Refurbishment & Renewal Maintenance

7,683

7,615

6,918

8,938

8,921

7,680

7,833

8,010

8,108

8,291

8,473

8,660

8,850

9,045

9,244

9,447

Fault & Emergency Maintenance

4,353

4,314

5,990

5,064

5,079

6,400

6,528

6,675

6,757

6,909

7,061

7,216

7,375

7,537

7,703

7,873

28,118

28,580

32,045

30,364

33,826

35,953

37,152

38,460

38,947

39,756

40,580

41,421

42,279

43,153

44,046

45,015

Total Opex

FY 2008 A

FY 2009 A

Table 9.6: Total Expenditure Forecast ($000) (Nominal $ Values)

Asset Class

Operational Expenditure

9.6.1.

FY 2006 A

FY 2007 A

FY 2008 B

FY 2009 F

FY 2010 F

FY 2011 F

FY 2012 F

FY 2013 F

FY 2014 F

FY 2015 F

FY 2016 F

FY 2017 F

FY 2018 F

FY 2019 F

FY 2020 F

FY 2021 F

28,118

28,580

32,045

30,364

33,826

35,953

37,152

38,460

38,947

39,756

40,580

41,421

42,279

43,153

44,046

45,015

72,920

82,797

74,285

83,870

87,080

90,545

91,989

93,708

99,581 106,002 112,601 119,811 127,699 136,335

Capital Expenditure

61,851

61,293

Total

89,969

89,873 104,964 113,161 108,111 119,823 124,232 129,005 130,936 133,464 140,162 147,423 154,879 162,965 171,744 181,349

Summary of Changes from Previous Forecasts

System Growth, Reliability, Safety and Environment and Asset Renewal and
Refurbishment capital expenditures have been increased by 10% on account of the
higher than expected outcome of the price threshold X factor.
The expenditure forecasts have been adjusted to cater for CPI since the time of the
previous Asset Management Plan.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

217

10. RISK MANAGEMENT

10.1. Introduction

Powercos Risk Management Charter includes policies, processes and templates

required to identify and assess risks. The charter is aligned to AS/NZS ISO
31000:2009. Our risk management policy also requires adheres to the following
industry standards:

The aim of the risk management programme is to identify and understand the
likelihood, consequence, control effectiveness, and action plans required to make risk
levels acceptable.

NZS/AS 3806:2006 to ensure compliance with legislation and industry standards;

The risk management programme is supported by Powercos corporate insurance

programme which includes low-probability and high-impact events.
Our approach to risk management is aligned to the new AS/NZS ISO 31000:2009
standard for risk management.
10.2. Corporate Risk Management and Governance
10.2.1. Audit and Risk Committee

Risk identification workshops are conducted with business units to identify and
describe risks that threaten the achievement of objectives. The workshops include key
stakeholders and subject matter experts to ensure comprehensive coverage.
The Board Audit and Risk Management Committee is responsible for overseeing risk
management practices within Powerco. The committee meets on a quarterly basis and
reviews the effectiveness of the risk management process and internal controls. The
committee reviews and discusses issues reported by internal and external auditors for
reporting to the board.
The Audit and Risk Management Committee Charter requires that at least two
members of the committee are directors.
The Executive Management Team (EMT) reviews risk and audit issues on a monthly
basis to determine possible changes to the strategic and operational environment.
Each division of Powerco has a risk champion, who works with the risk and compliance
team to help management meet their risk and compliance obligations.
The success of the risk management programme depends on effective internal
communication. Communication with all key personnel is maintained through the
intranet, risk forums and monthly reporting of risk and audit issues.

218

10.2.2. Risk Management Charter

Powercos board and management are committed to maintaining a business

environment that demonstrates good corporate governance practices. Risk
management is therefore an integral part of Powercos business to support effective
decision-making and provide assurance.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

AS/NZS 4804:2001 to meet health and safety obligations; and

ISO 14001:2004 for environmental management systems.
The risk charter also includes the criteria for assessing the likelihood and consequence
of a risk as well as a risk assessment matrix. All risks rated as high or extreme are
escalated to the EMT and Board for acceptance.
10.2.3. Risk Assessment Matrix

Below is Powercos risk assessment matrix.

Almost Certain

Likely

Possible

Unlikely

Rare

Insignificant

Minor

Moderate

Major

Catastrophic

Note: I = Insignificant, L = Low, M = Medium, H = High, E = Extreme

Figure 10.1: Powerco Risk Matrix

10.3. Risk Management Process

The risk management process is a step-by-step guide to manage risks within all
business areas. The process is as follows:
10.3.1. Risk Identification

Risk identification workshops are conducted with business units to identify and
describe risks that threaten the achievement of objectives. The workshops include key
stakeholders and subject matter experts to ensure comprehensive coverage.

Return to Index

10.3.2. Risk Analysis

Risk analysis workshops involve developing an understanding of the causes and

sources of the risk, their likelihood and consequence, and existing controls.
10.3.3. Risk Evaluation

Risk evaluation allows decisions to be made on risks that need treatment and the
priority of the treatment action. These priorities are based on the results of the risk
analysis phase. Some risks may not require any further action if the current controls are
deemed to be adequate.
10.3.4. Risk Treatment

Depending on the rating, Powercos risk treatment options are deliberated by

management and executives. Options include the following strategies:
Risk avoidance;
Reduction of likelihood or consequence;
Elimination;
Acceptance; and
Risk sharing.
10.3.5. Monitoring and Reporting

Powercos risk monitoring process aims to achieve the following:

Ensure that controls are effective and efficient;
Identify improvement opportunities from risk assessment and incidents;
Detect changes in the internal and external environment; and
Identify emerging risks.
Significant issues are escalated to senior management and Board.

10.4. Key Risk Areas

Powercos risk management focuses on the following key areas:
10.4.1. Operational Continuity and Customer Relations

These relate to all risks that concern disruption to electricity supply and inadequate
network capacity.
Adherence to network security criteria and renewal programmes are key parts of the
Asset Management process, culminating in the preparation of the Asset Management
Plan. A further aspect is the trade-off between price and quality of supply. An ongoing
series of industry and public consultations quantifies the communitys required level of
supply reliability. In accordance with industry standards, the supply security assessment
process results in the Long Term Development Plan, which in turn results in the capital
expenditure forecast.
The Performance Engineering process involves analysing network performance trends
and developing remedies where necessary. Planned supply outages can be controlled
through the network defects and fault management process. Live line techniques can
often be applied, so that an outage is not needed. Other factors affecting reliability and
public safety, such as vehicle collisions, trees, birds, vandalism and grass growing into
equipment need to be monitored and controlled.
From a safety perspective, growing numbers of contractors working on the network
mean, it is necessary for network assets to be designed, constructed and maintained
to facilitate safe work practices. Important components of staff and contractor
safety are regular training refreshers and competency assessments, access approval
processes, and ongoing training of network controllers.
Natural Disasters are considered a major risk given that Powerco serves a wide area of
the North Island, including areas that are exposed to high winds, seismic and volcanic
activity, snow storms and floods, and forestry and bush areas sensitive to fire. The
review of line design results from this risk profile.
The tactical response to these risks largely centres on contingency planning, with the
Electricity Supply Continuity Plan being the main guiding document. The Network
Operations Centre keeps an ongoing watch on weather forecasts to be forewarned of
approaching storms. Powerco also maintains alliances with Civil Defence and regional
councils, and takes part in Civil Defence exercises.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

219

10.4.2. Environmental Management

To better identify and manage environmental risks and associated impacts,

Powerco has joined the Landcare Research managed Enviro-MarkNZ programme.
This programme sets out independently audited steps for the development of an
Environmental Management System to ISO 14001:2004 standard. Powerco is
actively working towards certification in this programme. The main environmental risks
associated with the electricity network are:
Visual and physical encumbrances these pertain to Powercos right to own assets
on the roadside or on private land. Powerco complies with the requirements set out
in District Plans, the Electricity Act and the Transit Act;
Damage through oil spills and fire Powerco aims to maintain equipment in good
condition and carry out regular inspections. Oil containment systems are being
installed under a rolling refit programme or when new equipment is installed;
Health Effects from EMF a watching brief is kept on the latest research, in
particular the work of CIGRE/CIRED Working Group 36.06, and our network
operating policies include the limits in international guidelines;
Greenhouse gas emissions SF6 gas is a potent greenhouse gas. Powerco only
uses this gas in a relatively small amount of network equipment. Powerco has a
procedure for disposing of SF6 in line with national guidelines formulated as a result
of a national working group in which Powerco participated;
Disposal of treated softwood poles this is managed in accordance with local
authority guidelines. There is usually a high demand for old poles to be recycled for
a variety of purposes;
PVC cables the outer sheath can produce dioxins and furans if the cable burns
in the presence of the copper screen due to catalytic effect, e.g. when they fault.
Powerco maintains equipment in good order and carries out regular inspections.
10.4.3. Regulatory and Legal Compliance

As a lifeline utility, Powerco has to comply with a variety of legislations. Risks in this
domain concern complying with local government requirements, legislation, regulatory
requirements and contractual obligations with service providers. Risks are managed by
embedding compliance requirements into operational and maintenance processes. A
review programme is also in place to ensure that existing standards are fully compliant.
All changes to standards are communicated to contractors and other employees
through awareness and training programmes.
10.4.4. Finance

10.4.5. Health and Safety

Due to the nature of operations, health and safety of employees and third parties is
recognised as a key issue. Powerco is continually working to improve health and safety
practices and is guided by a number of industry standards including NZS 4801, NZS
4804 and NZS 7901. Work is also under way to implement an industry best practice
hazard management system.
The risks of harm to the public and personnel are monitored through regular network
inspections. During construction projects, these risks are monitored through an audit
process. Security controls include operational procedures, along with systems of locks,
keys and alarms, and controlled access of personnel to network sites. Dangerous sites
are fenced to maintain public safety. Checks on the integrity of earthing systems are
carried out regularly, as well as when equipment upgrades are carried out. Some of
the changes in regulations about equipment earthing are vague and, to address this,
Powerco has been participating in industry working groups. Personnel in the electricity
industry are generally accustomed to safe work practices, but this is reinforced through
Powercos culture of safety and through the field service audit process.
Powerco has an obligation under OSH legislation and the companys own Use of
System agreements with electricity retailers to provide reliable networks and a safe
working environment.
10.5. Contingency Plans
Powerco has a comprehensive set of emergency response plans and procedures,
which it regularly reviews and continues to develop to improve its performance in
emergency situations.
10.5.1. Electricity Supply Continuity Plan

Powerco has a comprehensive set of emergency response plans and procedures,

which it regularly reviews and continues to develop to improve its performance in
emergency situations. Table 10.1 below provides an overview of some of the key
plans and procedures that support the effective operation of the electricity network in
emergency situations. The primary plan overriding all the other emergency plans and
procedures is the Electricity Supply Continuity Plan (ESCP).
The ESCP sets out the composition, authority, responsibilities and the reporting
structure for Electricity Emergency Response teams and resource allocation. Individual
risks are not identified because procedures are designed to ensure that the support
structure mobilised is appropriate to the particular emergency situation. Testing of the
ESCP and training of staff is an on-going activity.

One of the key outcomes of the risk management programme is to ensure the financial
sustainability of the business. Risk management in this area relates to financial
consequences of asset failure. Examples include revenue leakage and reduced
throughput.

220

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

The aim of this plan is to:

Sustain electricity network capabilities through abnormal, emergency

situations by effective network management and practices.
The plan is designed for emergencies, i.e. events that fall outside of the ordinary
operation of the network that routinely deals with incidents as defined below.
Table 10.1: Key Operational Plans and Procedures for Network Incidents and Emergencies

Incidents
(Not covered
by the ESCP)

An incident is an expected but unforeseeable event that can be managed within

the normal operating framework of the Network Operations Centre.
These would be handled by personnel as virtually a routine job and would
normally not require the presence of a Supervisor on site for the full duration of
the operation.
Examples include:
Reported lines down or pole fires;
No power calls;
Network faults.

Emergencies
(Covered by
the ESCP)

An emergency is an unplanned event that presents or has the potential

to present a major disruption to the normal operation of the network. An
emergency is too big a problem to be handled in a timely manner using
business-as-usual resources and capabilities, e.g. without bringing in extra staff
who are not on call.
Events that may cause, or be lead indicators for emergency situations
mentioned above include (but are not limited to):
Natural disasters (severe storm, flooding, earthquake, volcanic eruption,
cyclone, tsunami);
Major transmission network or generation failure;
Significant natural or human threat or impact to the Network Operations Centre.
A network emergency would require the presence on site of a supervisor as Site
Control Officer and, depending on the classification, a Senior Manager at the
emergency control centre.
General guidelines for classification of an event as an Emergency Situation are:
Loss (or potential loss) of 10,000 customers or 20MVA of load (or greater) where
this is likely to be sustained for more than six hours;
Loss (or potential loss) of between 5,000 and 10,000 customers or between 10
and 20MVA of load where this is likely to be sustained for more than 10 hours;
The declaration of a Civil Defence Emergency;
The evacuation of the normal Network Operations Centre other than for a fire
alarm.

Return to Index

The primary plan overriding all the other emergency plans and procedures is the
Electricity Supply Continuity Plan (ESCP). The other plans and procedures that support
the ESCP include:
Generic emergency procedures, such as the Major Network Incident and Severe
Weather Event procedures;
Specific Emergency Plans, such as the Pandemic Preparedness Plan and the
Security of Supply Response Plan, which outline specific responses that are
appropriate to a specific type of emergency;
Support systems contingency plans, including the Operational Communications
Contingency Plan, SCADA Contingency Plan and the Load Management
Contingency Plan, which provide guidance on how to support these critical
functions when a failure occurs.; and
The Civil Defence Emergency Management and Civil Defence Liaison standards,
which guide the relationships with the Civil Defence authorities.
10.5.2. Major Network Event Procedures

Major Network Incident and Severe Weather Event Procedures outline the generic
emergency response process that is used to respond to a wide range of emergencies.
They provide guidelines for assessing the extent of the damage or threat, making
necessary preparations and responding appropriately to severe weather events and
major network incidents that cause extensive loss of electricity supply to customers. It
provides a basis for communicating and establishing a common understanding of the
specific roles, responsibilities, requirements and activities to be undertaken in response
to severe weather events and major network incidents. It provides guidance on the
appropriate response to a range of events based on their impact on the performance of
the network and its ability to supply customers.
The procedures scale up to and interface seamlessly with the more comprehensive
Electricity Supply Continuity Plan, which provides guidelines for Powercos planned
response to very large scale events. Figure 9.2, which is an extract from the Major
Network Incident and Severe Weather Event Procedures, provides general guidelines
for assessing the severity of an emergency event in terms of its effect on the electricity
network. Depending on the event and its effect (or likely effect) on the network, Powerco
NOC will announce an appropriate storm response level (categorised in terms of an
R Readiness, L1 Level 1, L2 Level 2, or L3 Level 3) based on one or more of the
parameters detailed below. It is important to note, however, that a final assessment will
need to be made on a storm-by-storm basis, with knowledge of all the relevant facts.
Based on the assessed storm response level, the procedures provide further guidance
on the types and level of activities that would be deemed appropriate in responding to
the event.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

221

The procedures also identify and provide guidance on three main emergency response
processes the restoration process, the strategic management process and the
stakeholder communication process.
Electricity Supply Continuity Plan

SEVERITY OF EMERGENCY

Generic Emergency
Procedures
NOC Disaster Recovery Plan

Specific Emergency
Plans
Pandemic Preparedness Plan

Major Network Incident

and Severe Weather Event
Procedures

Operational Comms
Contingency Plan
SCADA Contingency Plan
Load Management
Contingency Plan

(Restoration, Strategy &

Communications)
(L1, L2, L3)

Support Systems
Contingency Plans

Security of Supply Response Plan

Busines As Usual
Figure 10.2: NOC Emergency Response Framework.

10.5.5. Pandemic Contingency Plans

Powerco has developed a plan to prepare and respond to an influenza pandemic

occurring in NewZealand. This Plan provides a basis for establishing a common
understanding of the specific roles, responsibilities, requirements and activities to be
undertaken in response to the pandemic in to ensure the operational integrity and
continuity of the Electricity and Gas networks to their fullest possible extent, even
though this may be at a reduced level, both during and after the pandemic. Due to the
unpredictable nature of pandemics, the plan also considers the wider implications for
the company beyond keeping the lights on and gas fires burning. These implications
for Powerco therefore go beyond its obligations as a lifeline utility provider.
10.6. Risk Management Application to Asset Management
As set out in Section 4.1, a trade-off exists in the Asset Management process between
network performance, cost and levels of network risk. The purpose of risk management
from an Asset Management perspective is to manage risks that may prevent the
infrastructure assets from meeting service potential targets or cause harm to people
or financial loss to Powerco. The term manage risk may mean to reduce, eliminate,
transfer or accept the risk.
The Risk Management Charter and profiles are applied to the development,
renewal and maintenance of all infrastructure assets covered by the Powerco Asset
Management Plan.

10.5.3. Substation Contingency Plans

A comprehensive set of site-specific substation contingency plans exist, which are

regularly reviewed. These plans identify known local risks and operational options for
dealing with local network problems that could arise.
10.5.4. Business Continuity Plans (Process, Information Technology and Loss of Precinct)

Powercos Business Continuity Plan (BCP) is designed to manage and support a

number of scenarios, including system failure, major infrastructure failure or loss of
the network operations centre. The BCP is supported by a Business Impact Analysis,
which is conducted on a regular basis by business units to identify and prioritise critical
infrastructure, assets and processes for recovery action. The BCP is rehearsed by
the appropriate teams on a regular basis and Powercos IT infrastructure has been
designed with built-in resilience to ensure continuity of operations.

222

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

10.6.1. Risk Management Process: Review of Maintenance Methodology

Select the maintenance activities that:

This procedure is used to review maintenance methodologies:

Provide positive NPV;

Identify the hazards that present risk:

Are required from a health and safety standpoint; and

To the safety of employees and the general public;

Do not conflict with the other Asset Management drivers.

To the environment; and

In carrying out this procedure, the results of existing maintenance practices are
reviewed. Feedback from the field that occurs during the maintenance may contain
valuable information on the effectiveness or otherwise of the maintenance activity.

Of electricity supply interruptions.

These can be caused by:
Environmental conditions, such as lightning, ice, floods, slips, land subsidence or
earthquake;
External factors, such as vehicle collision, trees, vandalism, bird strikes, possums,
uncontrolled digging or vermin/grass in kiosks;
Equipment failure, such as inherent design inadequacy, overload deterioration,
moisture ingress or corrosion;
Operational error, such as incorrect protection settings or operating wrong
equipment; or
Substandard workmanship, on such tasks as as jointing, binding, cable-laying or
terminating.
Conduct a failure mode and effects analysis (FMEA) on each class of assets and
general groups of assets (i.e. zone substations). For each failure mode review the
maintenance that could be performed to prevent or reduce the consequences of the
failure includes:
Estimate the effects of carrying out the maintenance in reducing the likelihood and
repair time for the failure;
Calculate the cost of the maintenance or action;
Calculate the cost of the failure where this relates to electricity supply interruptions
or environmental damage;
For safety related risk, determine the severity rating and probable frequency, and
determine what actions are required to reduce or eliminate the likelihood of the risk
eventuating;
During the review consideration shall be given to the other Asset Management
drivers to ensure that there are no conflicts with the maintenance methodologies.
Any conflicts that do exist should be resolved by reviewing all drivers.

Return to Index

10.6.2. Risk Management Process: Design Overhead Lines

In recent years, Powerco has experienced several significant storm events. A critical
success factor of Powercos response to storm events is the well defined and preprepared emergency response structure of its Electricity Supply Continuity plan. Based
on Business Continuity concepts, the supply continuity plan is scaleable and generic,
and provides the framework necessary to manage response activities effectively and
efficiently along regional process lines.
In some areas, the network is predominantly overhead lines and whilst it performs fairly
reliably under both summer and winter conditions, it is ageing. The poles in these areas
are approaching 40 years old and some degradation is evident in the line components.
The original design and construction standards have proved adequate for normal
weather conditions but they are increasingly becoming inadequate for storm conditions.
Powerco has adopted a limit state line design process in its design standards to futureproof the network and is in the process of rolling this out to its contractors. Firstly, there
is growing concern that storms are becoming more severe and regular, and new design
principles allow special consideration of stormprone areas as the network is renewed.
Secondly, there is a need for greater consistency across Powercos network area.
As the network has grown through mergers and acquisitions, a variety of line design
practices are still being used.
Limit state design processes allow a probability and return period approach to be
applied to the calculation of risk-based critical loads. Overhead lines are subject to
conductor static loads, personnel working aloft, temperature changes, wind loads,
snow accumulation on conductors and conductor dynamic loads. The most significant
influence affecting line design is the prevailing weather. As the loads vary in differing
ways under different conditions, such as in exposed, highaltitude areas with low
temperatures, it is unlikely that all worst-case scenario loads will be experienced
coincidentally. Account can also be taken of material deterioration and material end-oflife states.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

223

10.6.3. Project Risk Management

Where significant risks in terms of safety, environmental, quality and liability exist,
projects can be put forward for ranking and approval without conducting any further
economic assessment.

Risk Description

Control or Treatment

There is restricted operation of the network and

increased probability of failure for some types of
11kV ground mounted switchgear, due to latent
defects with the equipment. The affected switchgear
in critical parts of the network is subject to a renewal
programme.

Implement targeted replacement

programme, and implement special
operational procedures.

There is an increased risk of failure on aluminium

XLPE cables installed in the late 1960s. Some areas
have this type of cable installed. The condition and
performance of this cable is being closely monitored
and cables are being replaced when necessary.

Implement targeted replacement

programme for feeder trunks.

A number of substations do not meet Powercos

security of supply standards, which increases the
probability of failure. In most cases, enhancement
work is being scheduled or considered.

Implement reinforcement programmes

and/or non-asset and contingency plans
are being implemented.

In some cases, the network locks and keys have

reached an age where locksmiths can no longer
maintain security on who can cut keys for Powerco
locks. The risk is that the public may be able to
access Powercos live equipment.

A new locking system is progressively

being grandfathered in

The earthing systems of distribution transformers

or Low Voltage neutrals in LV networks or service
cables may develop a high impedance leading to the
risk of electrocution by public or field staff.

Periodic inspection programme.

Potentially review real time monitoring
solutions.

Low Voltage Pillar Boxes may become unsafe to the

public. Some steel covered pillar boxes may become
live or pillar box lids may not be secured properly.

Periodic inspection programme.

Streamlined fault call processes.

Zone substations may develop security issues

such as inadequate fencing, earthing system not in
accordance with IEEE80, insecure seismic design or
inadequate capacity in the incomer or feeder cables.

Implement periodic reviews.

Development of new line design procedures and methodologies;

Electricity Act land rights not clearly outlined in

statute resulting in possible legal issues.

Maintain up to date knowledge of

applicable case law

Production of comprehensive substation operating manuals and contingency plans;

and

Project consenting leads to project delays

Prepare consent processes and build up

a consenting and property team.

Ongoing work on the worst performing distribution feeders with a view to improving
their performance.

Inadequate availability of human resources of the

right skills and competencies result in poor network
performance and service to customers.

Maintain influential relationships with field

contract organisations

As part of the Network Project Approval Memorandum, the risks associated with
the project in terms of construction and timing are considered and the management
strategy is noted.
10.7. Conclusions from Asset Management Risk Analysis
The integration of risk management into the planning process has led to a number of
results. These are:
The application of a Network Project Approval Process to all proposed development
projects. This process consists of the following steps:
Review of project fit with AMP strategy and/or works plan;
Assessment and justification of project;
Multi-stakeholder assessment;
Project risk management;
Project economic justification;
Project prioritisation; and
Formal approval of project.
Applying standards for zone substation and distribution feeder security levels,
determining zone substations not meeting required security levels, determining
upgrade requirements, and prioritising for upgrading;
Applying a formal procedure for preparing contingency plans for loss of supply to
major or strategically important consumers;
Update of maintenance standards and schedules, and the development of new
standards covering the plan/conceive, design/construct, maintain/refurbish, and
asset disposal life cycles;

224

10.7.1. General Network Risk Issues

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Risk Description

Control or Treatment

A natural disaster occurs that results in damage to

networks.

Maintain adequate levels of critical spares.

Maintain ongoing relationships with
CDEM coordination groups. Maintain
contingency plans and take part in
disaster exercises when the opportunity
arises.

A network event causes a serious injury or fatality.

Continually reinforce health and safety

culture and initiatives. If a job cannot be
done safely, it should not be done.

Public cannot report in to advise network related

incidents that endanger public.

NOC staffed 24/7. PABX has adequate

security and backup ability.

Loss of certain records on location, attributes and

condition of assets.

Ensure key information systems are

populated with adequate data. Undertake
data audits from field.

SCADA communications failure results in limited or

no visibility of network status.

Ensure SCADA MS and communication

trunks have adequate security.

10.7.2. Eastern Region At-Risk Situations

The Waihi substation peak load is around 6MVA above its class capacity, although
much of the load results from mining operations, which have been expected for
some time to reduce. Capacity increase options are subject to negotiation with the
local mining company.
Zone substation capacity at Matamata is not enough to provide N-1 security level
without much switching on the distribution network. A second transformer is
proposed to be installed at Brown St or Tower Rd.
Lake Rd and Waihi Beach do not meet their required security levels, but instead rely
upon switching in the distribution networks to provide back up supplies to cover for
loss of equipment availability. In worst cases, back up supplies may be inadequate.
The new substation is under construction for Katikati and will relieve the security of
supply issue at Kauri Point.
A number of substations, such as Baird Rd, Maraetai Rd, Morrinsville, Kauri Point,
Matua, Pongakawa, Kerepehi, Matatoki, and Whangamata do not meet Powercos
required security levels as they are supplied by single lines and do not have full
distribution network support. A route for a second line to Whangamata is being
worked on. However, the construction of lines is complicated significantly by the
need for resource consent and landowner consent.

There are several situations on the Eastern networks where Powerco is at risk in
the event of a fault. These are listed below. Plans to deal with these risks are being
investigated.

Putaruru and Tirau are supplied from Hinuera GXP by a single line, with very little
supply being able to be restored in the event of loss of availability. Tirau has a large
dairy factory. A new GXP for Putaruru is planned to overcome this.

Transmission capacity into the Tauranga region has been limited and, under some
circumstances of high demand, grid emergencies develop. As load continues to
grow, more capacity is becoming urgently needed. Transpower has increased the
thermal capacity of lines into Tauranga GXP and additional transformer capacity is
being added at GXPs, but the Poike Tee still exists. A long term view to upgrading
existing transmission lines in the area.

Whitianga and Coromandel, major tourist and holiday destinations, are supplied by a
single 66kV line. A project to obtain easements is under way to enable construction
of a second 66 kV line to Whitianga, although this is taking a long time to obtain.
Thermal upgrades of the existing 66kV lines have recently been completed and
reconductoring of these lines is under way. The extension of the second line to
Coromandel is not considered to be viable.

The ring supplying the CBD of Tauranga is presently at N-1 capacity and the
contingent load on the Committee circuits between Tauranga GXP and Greerton is
above the circuit capacity. Additional capacity is planned over the next three years.

Because of the terrain it is difficult to back up the supply to customers in the

Coromandel Peninsula following faults on the distribution network. The network also
becomes heavily loaded during holiday periods and full back up security cannot be
assured.

The pilots protecting the 33kV feeders supplying the Tauranga CBD are all in the
same cable. Damage to this one cable could cause loss of supply to the entire CBD.
The opportunity to lay new pilots or fibre optic cable will next arise when the new
33kV feeders to Waihi Rd are laid.
Thames is supplied by a single 66kV line and, in the event of its failure, the majority
of the towns load would be interrupted for repair time. Construction of a second line
is under way.

Return to Index

Several substations do not have oil containment facilities and work on implementing
these is proceeding.
Recent large scale load growth in the Te Puke area has left some distribution feeders
with little back up capacity, and the surrounding terrain does not facilitate the
backing up of load from adjacent feeders. The new Atuaroa Rd zone substation has
recently been constructed to supplement supply at Te Puke, which will go some way
to resolving these issues. The proposed substations at Paengaroa, Te Matai and
Rangiuru should help resolve other areas, and more 11kV ties will be installed as
landowners allow.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

225

 Some mainline and interconnection 11kV cables in the Tauranga central city do
not have suitable capacity in all cases to support backfeeding in the event of some
faults. There is the risk that outage times will be extended to the full repair time for
some customers. This issue is subject to a significant upgrade project.
There is an increased risk of failure of 11kV XLPE cable installed in Tauranga prior to
1975, especially smaller 25mm cables. A replacement programme is proceeding for
cables where the impact of a failure could be significant.
10.7.3. Western Network At-Risk Situations

There are several situations on the Western networks where Powerco is at risk in the
event of a fault. Significant risks are listed below. Solutions to these risk situations are
being analysed.
Most cables from the Carrington GXP 11kV are of paper lead construction, built
with lead that does not contain alloy E. If it is moved, the lead crumbles and repair
is difficult. Some of these cables are in a trench with several others and their group
rating is low. If any of these needs to be jointed, there is a serious risk of damaging
the other cables, and a shutdown of all the cables may be needed to carry out the
repair safely. Sections of these cables were replaced at the time of commissioning
of a new 11kV zone substation at Carrington in 2007, and replacement of the
remainder will now be carried out progressively over several years.

Pongaroa substation has no oil containment and any significant leak will pollute a
nearby stream. This risk is presently being accepted.
Some of the oil filled cable joints in the CBD of Palmerston North are of a type that
do not have adequate strength to cater for the conductor forces. These joints should
be replaced or the circuits upgraded with modern cable. It is proposed to undertake
this reactively.
There is an increased risk of failure on HV cables with tin can joints. A programme
to locate these joints is under way and they will need to be replaced in a
programmed manner or reactively.
A number of substations in the Western region do not meet Powercos security
of supply standards, which increases the probability of failure. In most cases,
enhancement work is being scheduled or considered. Economic reasons may
prevent the security of supply standards being implemented, and in this situation
non-asset and contingency plans are being implemented.
A long, single 33kV line supplies Sanson substation. If the line fails, all load cannot
be supplied at 11kV. In this area, some voltage constraints have been noted,
particularly during periods with high irrigation load. Demand side arrangements are
being considered, along with alternative supply locations, including the possibility of
a new GXP.

The 11kV circuits to Waiwhakaiho industrial area are now constrained in terms
of their capacity. The main risk is a car versus pole accident along Awanui and
Cumberland Sts, which support two feeders. If these are both out of service,
adequate supply to the area cannot be maintained. This risk will be controlled
through the construction of a new zone substation at Katere Rd, construction of
which is under way.
Manaia zone substation has only one transformer and, in the event of a transformer
or switchgear failure, full supply to Manaia, including a major customer, cannot be
maintained.
The Wanganui CBD area has single transformer zone substations at Hatricks, Peat
St, Taupo Quay and Beach Rd, resulting in many areas not receiving an appropriate
security of supply for a CBD. The 33kV configuration of the area is being reviewed to
improve security.
The earthing mat at Hatricks substation has been found to be in poor condition and
it will have to be rebuilt.
Kai Iwi substation supplies the Wanganui waterworks with a single transformer. In
the event of a prolonged outage, Wanganui could run out of water. Investigations are
continuing.

226

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

11. Asset Management Improvement

11.1. Introduction

Best Practice

A Gap Analysis assessment of the level of maturity of Powercos electricity network Asset
Management processes is presented in Figure 11.2. This analysis is based on Section
2.4 of the International Infrastructure Management Manual (IIMM), which is summarised in
Figure 11.1. The IIMM assessment reviews the level of awareness, competence and best
practice. In this context, best practice has been rather arbitrarily defined: we have taken
this to mean an Asset Management nirvana or the practical ideal.

Impl. Tactics

Information
Systems

Data and
Information

Plan
Gap Analysis

Powerco has a philosophy of continual improvement in its Asset Management and

Customer Management processes (as well as other business processes). Powercos
Asset Management process is described in Section 2.

Assessment Score

11.2.1. Background

Asset Management Plan (Network Level)

Advance Asset Management Plans
Maintenance Standards
Design and Construction Standards
Optimised renewal strategy
Development Plan
Forward work programme
Monitoring Level of Service
Knowledge of Assets
Condition Assessments
Operations and Maintenance
Performance monitoring
Optimised Life Cycle strategy
Design Project Management
Review Audit
Asset Information Integrity
Asset Attributes
Information Back-up
Historical condition maintenance data
Asset Utilisation Monitoring
Future prediction data
Life Cycle costings
Benchmarking data
Geographical Information Systems
WM/ Financial System
Maintenance Management
Customer Requests
Risk Management
Integration of Systems
Plans and Records
Commercial Tactics
Organisation/People Issues

11.2. Review of AM Maturity

Processes

Improvement Register.

This section presents a review of the foreseen initiatives to improve Powercos Asset
Management and Customer Management practices, systems and processes. It
starts with a recap of where we are presently against a view of where we would like
to be in five years time and then describes some of the process improvements and
programmes we should adopt and undertake during this time.

100
95
90
85

Unsatisfactory
(aware)

Poor

Competent

Best Practice

Competent

Unsatisfactory
(unaware)

LOW AVERAGE GOOD

80
75
70
65
60
55

Figure 11.1: IIMM Gap Analysis Assessment Model

The Gap Analysis is a self-assessment and shows Powerco to be in the average status
in terms of where it is going in its Asset Management performance. It does not seek to
benchmark Powercos Asset Management performance with its peers. In line with its
philosophy of continual business improvement, Powerco is endeavouring to continually
improve its electricity network Asset Management processes, systems and practices.
One key area of focus is the ongoing improvement of information systems.
Programmes of work in progress, to replace the SCADA and outage management
systems with best practice, modern technology systems. Automation of maintenance
management practices continues to improve asset information and data on asset
condition, with the ability to use this information to drive an optimised renewal planning
and condition-based maintenance programme. Also, in terms of our plans, our
spending is constrained to less than the amount needed to complete all projects in the

Return to Index

Poor

45
40
35
30

Unsatisfactory
(unaware)
(aware)

11.2.2. Gap Analysis

50

25
20
15
10
5

Figure 11.2: Analysis of Powerco Electricity Asset Management Capabilities

Current Score

Appropriate Score (5yrs)

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

227

11.2.3. Commentary on the Gap Analysis

Comments on the Gap Analysis and links to other sections of the AMP are outlined as
follows:
Asset Management Plan: The Asset Management Plan and the associated suite of
asset management documentation is now at the stage where a good base has been
made from which improvements can be made. It is strong in the areas of strategy and
policy, and improving the level of compliance of the April 2009 Asset Management Plan
is a target area for improvement.
Advanced Asset Management Plans: This is at a relatively early stage (refer to
Section 11.5). Greater use of the Asset Management process for driving business
planning is an opportunity.
Maintenance Standards: The content of these is good but their structure needs
improving and they need to be moved into an overall standard structure, which is
being developed, and the constraints of the maintenance management system need
to be factored into their content more. They are presently as fully time-based as the
maintenance system allows and they benefit from increased use of condition-driven
maintenance practices (refer to Section 6.3).
Design and Construction Standards: These are fairly well set out and documented
and improving all the time, but their coverage is patchy and adherence to these across
the business is an ongoing area of improvement (refer to Section 6.2).
Optimised Asset Renewal Strategy: There is plenty of scope for asset renewal
strategy to be improved, given the implementation of the Gas and Electricity
Maintenance (GEM), maintenance management system. Incorporation of condition data
should be improved from which targeted renewal forecasts and programmes will be
able to be made (refer to Section 6.4).
Development Plans: These are well set up and documented, but there needs to be
greater facilitation towards longer term resource consent application and easement
acquisition campaigns, and the subtransmission network architectures in Huirangi,
Wanganui and Palmerston North need long-term focus for improvement. There is
scope for automated use of GIS, SCADA and PI for network modelling; dynamic line
rating and optimised cable rating (refer to Section 7.12).
Forward Work Programme: The preparation of the Five-Year Plan and its
incorporation into the Improvement Register is a major process advance. The Five-Year
Plan process should continually improve.
Monitoring Levels of Service: This process works fairly well through the Network
Performance process, although improvements in what the business does to close the
loop in how customer complaints and network defects are handled can be made (refer
to Section 5.3).

228

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Knowledge of the Assets: Ongoing improvements to the quality of information held

in the information systems is a major opportunity for improvement, such as conductor
types and sizes, protection equipment information, zone substation equipment (refer to
Section 2.8 and 6.3).
Condition Assessments: Ongoing improvements in the quality of asset condition
assessments should be able to be made. Projects such as the adoption of mobile
devices for condition assessments should improve this process (refer to Section 6.3).
Operations and Maintenance: Improvements in the quality of data in GIS and use of
the new SCADA system and planned outage scheduling will improve our operations
and maintenance processes (refer to Section 2.8). Management of the maintenance
and the defects processes can be improved.
Performance Monitoring: The reliability monitoring process appears to be working well.
Optimised Life Cycle Strategy: A good framework exists with the Asset Life Cycle
and Asset Renewal plans and ongoing improvements to these can be organic (refer to
Sections 6.1 to 6.5).
Design Project Management: A continual focus on maintaining design and project
management skills should be kept up, quality of designs can be improved, and we
need to continue to encourage young engineers and technical professionals to enter
the industry.
Review Audit: This process appears to work well at a corporate level, although its
visibility could be improved.
Asset Information Integrity and Asset Attributes: Information on the assets is a core
Asset Management need. Some delays have existed with the as-building of information
systems. There have been improvements this year and improvements are expected to
be ongoing (refer to Sections 2.8 and 6.3).
Information Back-up: At an IT level, this process has improved significantly over
recent years and has now been benchmarked as best practice.
Historical Condition Maintenance Data: This data is fragmented and in a variety of
different locations. There is large potential for improvement here (refer to Section 6.3).
Asset Utilisation Monitoring and Future Prediction Data: Historical SCADA data
is limited in points and Maximum Demand Information from distribution transformers
is in many cases not available. Possible improvements include the use of technology.
The SCADA PI system is a good enabler for operational prediction. Use of a data
warehouse for holding existing data that can be extrapolated will enhance the accuracy
of the future prediction processes.

Return to Index

Life Cycle Costings: Ongoing improvements in the assessment of project unit costs
should be possible.

Ageing workforces;

Benchmarking Data: Certain benchmarking can be done through use of industrydisclosed information. Internal benchmarking of unit costs by team and over time is a
process that can inevitably be improved.

Increasing community expectations around the footprint of the network and

greenhouse emissions;

Geographical Information Systems: A high grade ESRI GIS has recently been
installed. Connectivity has improved over last year. The system itself is world class,
but its ability to extract data for use in load-flow modelling needs to be improved and
certain extraction processes could be automated (refer to Section 2.8).

Short-term focus of consumers versus the long-term focus of network owners;

WM/Financial System: This system is an enterprise system but additional training

could enhance the ability to report from it.
Maintenance Management: The JDE maintenance management system has been
implemented, and although not a purpose-built maintenance management system,
it, shows a lot of promise for providing a step change improvement in maintenance
management. At time of writing, hand-held applications for this system are being
deployed in the field.
Customer Requests: This process appears to work adequately although the ability to
obtain reports consistently has been an issue in the past.
Risk Management: This risk management system, Methodware, is a competent
system. Improvements can always be made on the communication of risks from the
field staff.
Integration of Systems: Ongoing improvement will inevitably be possible with this.
The Billing systems provide the potential for improvement for integration and these are
expected to be replaced in the next couple of years.
Plans and Records: The accuracy of many of the drawings in the system is continually
improving. Ongoing improvements in the housekeeping of these should be possible
(refer to Section 2.8).
Commercial Tactics and Organisation/People Issues: The age profile of technical
staff shows many staff are nearing retirement. A programme to bring in young
engineering staff is being implemented.
11.2.4. Constraints on Asset Management Process

Generally, Powerco is experiencing the following constraints that are common to all
network asset owners:

Changing technical compliance environment;

Growing requirements for Road Opening Notices by TLAs;

Increasing traffic management costs;
Lack of availability of specialised spare parts and constraints on field resources;
Limitations in quality information on asset condition; and
Limitations in the systems available to analyse the asset condition information.
Actions around the constraints in the Asset Management process include ensuring
adequate numbers of engineering staff with the right skills are available in 10 and 20
years time. Engineering skills take many years to build up and it is important that there
is not a gap in the skill levels and access to mentors as older engineers and technical
professionals retire.
Further actions include enhanced supply chain relationships to ensure adequate access
to equipment and spare parts.
The purpose of the Network Performance process is to proactively monitor service
quality issues and improve network service performance. The objective is to ensure the
networks deliver the required performance and that any substandard performance is
addressed promptly and effectively. Key improvements are noted in Section 11.3.
11.3. Improvement Initiatives
11.3.1. Network Performance Process

The purpose of the Network Performance process is to proactively monitor service

quality issues and improve network service performance. The objective is to ensure the
networks deliver the required performance and that any substandard performance is
addressed promptly and effectively. Key improvements made include:
Continued careful management of planned shutdown SAIDI allowances;
Implementation of fault locators on key lines;
Implementation of the blitz approach to line renewal activities. This approach means
that lines worked on are given a clean bill of health for 10 years;
Replacement of older reclosers with modern automated reclosers; and

Financial constraints;

Vegetation control targeted from network reliability performance.

General industry lack of skilled engineering resources;

The Network Improvement sub-process includes both reactive (short-term) and

proactive (long-term) performance management elements, and provides important
feedback to the planning process.

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

229

11.3.2. Maintenance Process Improvement Initiatives

Progress of the maintenance programme is monitored and reported on in two

ways at Powerco. Each month, actual completion is reviewed against the plan by a
maintenance project manager and the percentage of complete progress reported.
This information becomes part of an overall company report to the Board of Directors.
Deviations from the plan are explained and management action implemented where
appropriate.
At the end of the financial year a completion certificate is put together and submitted to
the senior management team. This certificate identifies any portion of the maintenance
programme that was not completed so that it may be addressed in the following year.
Deviations to plan are explained.
A major initiative is being undertaken during FY2008/FY2009 to implement an
enterprise solution to managing the maintenance on Powercos networks. JDE was
selected as the new maintenance management tool and a large project team has
worked to integrate the software package into Powercos maintenance processes. This
project will deliver the new maintenance plan for FY2010 as well as tracking all defects
and their resolution.

11.4. Proposed Asset Management Advancement Projects

11.4.1. Proposed Future Information System Projects

The following is a list of possible future information system improvement initiatives that
are required to close the gaps outlined in Section 11.2.
Table 11.1: Possible Future Information System Projects
Asset & Customer
Management Future Need

Potential Action

Criticality

Est Cost

Influence Area

Improved Information
Disclosure reporting

Implement Data Warehouse

programme

High

$2m

Entire
Business

Modern and robust ICP

management system

New billing and ICP

management system

High

$1m

Billing,
Commercial

Consistent SCADA
Master Station platform

Migrate Western Region

SCADA Master Station to OSI
system.

Medium

$1m

Operations

Effective Outage
Management System

Improve the existing Outage

Management Systems,
including electronic system
and process for receiving,
approving and notifying
planned outages

Medium

$1m

Operations

Improve quality of
information on assets

Rolling asset information audit

programmes, e.g. obtain
accurate conductor and cable
sizes

High

$200k
pa

Network
Info Team,
Operations,
Planning & SD

Improve quality of
information on asset
condition

Being addressed through

the GEM maintenance
management project and the
SPA mobility project

High

$200k
pa

Service
Delivery,
Planning

Lifelines utility capacity

Investigate if Business
Continuity philosophies
could be better applied in
Powercos Asset Management
and customer management
processes

Low

$20k

Operations,
Service
Delivery,
Planning,

Enhance accessibility
of drawings and
documents

Enhance drawing
management system

Medium

$200k

Network Info,
Planning,
Service
Delivery

Ensure information is
available to network
contractors and third
parties

Review how Powerco Extranet

can be enhanced

Medium

$50k

Service
Delivery,
Planning,
Operations

11.3.3. Summary of Improvement Initiatives Undertaken in FY2010

Various information system improvement initiatives are being undertaken in FY2010.

These include:
Continuation of the Programme Office implantation of business-wide projects and
the associated Programme Office steering group governance and regular sponsor/
business owner meetings;
A project to improve the HV connectivity in GIS is all but complete. Focus is now
moving to improving the LV connectivity. The associated connectivity enhancements
are well under way;
Update of all Single Line and Relay and Instrumentation drawings for zone
substations In the Western area. This has been completed In the Eastern area;
Continued enhancements to the Maintenance Management system;
Delivery of the SPA mobility project to introduce field electronic recording of
condition data;
Completing the Eastern region SCADA replacement project and commencing the
replacement of the Western SCADA MS with a new OSI Master Station.
Reviewing the processes and systems that support outage management.
Some further information integrity initiatives are outlined in Section 2.8.11.

230

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Asset & Customer

Management Future Need

11.5. Asset Management Plan Improvements

Potential Action

Criticality

Est Cost

Influence Area

Enhance connectivity
for operational
applications

Enhance LV connectivity

High

$400k

Operations,
Planning,
Service
Delivery

Improve hub capability

to manage storm
events

Regional Hub project

Medium

$200

Operations,
Service
Delivery

Network locks and

keys have a robust
system of management

Network locks and keys

management project

Medium

$75k

Service
Delivery,
Operations,
Planning

Robust Customer
Complaints handling
process

Review if Improvements
can be made to Customer
Complaints process

Medium

$100k

Operations,
Commercial

Improve Advanced
Asset Management
planning

Improve the programme

planning for Asset
Management Business
Improvements

High

$20k

All areas

Accurate Zone
Substation drawings

Rolling As-built Zone

Substation drawings

Medium

11.5.1. Asset Management Plan Improvements

This AMP is the result of a comprehensive update process over the April 2009 plan.
Specific revisions in this plan include:
Adoption of the improvements suggested in the Commerce Commissions 2009
compliance review of AMPs (Strata) with the objective of this AMP having high
compliance;
Evaluating performance in more detail against the targets in previous AMPs and
providing reasons for significant variations;
Alignment of the expenditure tables with the project tables in an attempt to provide a
line-by-line build-up of the AMP forecasts by projects, programmes and provisions;
Inclusion of the investments that, ideally, Powerco would like to undertake to
improve reliability and security of supply but which, under the current regulatory
regime, are not profitable for the company to make and, as such, are not included in
the works plan.
11.5.2. Planned Asset Management Plan Improvements

$50kpa

Planning,
Service
Delivery, Field
Contractors

Future possible Asset Management Plan improvement actions include:

Continued improvement in the use of Asset Condition information to drive the asset
renewal programme;
Greater use of Advanced Asset Management techniques for driving the Asset
Management plan direction;

11.4.2. Human Resource Projects

Various human resource initiatives are being undertaken in FY2010. These include:

Continued use of the Five-Year Plan to drive work programmes;

Table 11.2: Possible Future HR projects

Continuation of the use of failure mode and Weibull analysis to drive our design and
construction standards; and

Asset & Customer

Management Future Need

Potential Action

Criticality

Est Cost

Influence Area

Skilled Technical
Resources

Foster increased numbers

of trainees and develop
effective programmes for
trainees to obtain well rounded
experience

High

$50k pa

Network
Info Team,
Operations,
Planning & SD

Skilled Leadership and

Management

Implement Lominger
Leadership development
programme

High

$150k
+ $30k
pa

Business-wide

Return to Index

Continuation of the Risk Management committees.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

231

Appendix 1: Key Definitions

Adequacy means the ability of the electrical power network to meet the load demands
under varying steady state conditions whilst not exceeding component ratings and
voltage limits.
ADMD means After Diversity Maximum Demand. This refers to the average maximum
demand assigned to a customer or load for network dimensioning purposes during
design. Typical domestic ADMDs are in the order of 4kVA at reticulation level and 2kVA
at a feeder level.
AMP means Asset Management Plan.
Availability means the fraction of time a component is able to operate as intended,
either expressed as a real fraction, or as hours per year.
CAIDI (Consumer Average Interruption Duration Index) means the average duration
of an interruption of supply per consumer who experienced an interruption in the period
under consideration. The classes of CAIDI are: class A, Transpower planned outages;
class B, Powerco planned outages; class C, Powerco unplanned outages; and class D,
Transpower unplanned outages. CAIDI is measured in minutes per interruption.
Capital Efficiency means the ratio between the change in the networks Optimised
Deprival Value and the level of actual capital expenditure. For example, if a network
project has an associated capital cost of $100,000 and brings about a valuation uplift
of $20,000, then the capital efficiency is 20%. Conversely, the Capital Efficiency Factor
is the inverse i.e. in the above example, the factor would be five.
Capital Expenditure (Capex) means the expenditure used to create new assets or
to increase the service performance or service potential of existing assets beyond the
original design service performance or service potential. Capex increases the value
of the asset stock, and is capitalised in accounting terms. It is subdivided into two
classes, development expenditure and renewal expenditure, as defined below.

Customer means an electricity retailer or a consumer who obtains an electricity

network connection directly from Powerco rather than through an electricity retailer.
In this plan, the title consumer is generally used and can, for the most part, be
considered to be inclusive of customers.
Cyclic Loading is defined in IEC 354 as Loading with cyclic variations (the duration of
the cycle usually being one day), which is regarded in terms of the average amount of
ageing that occurs during the cycle. The cyclic loading may either be a normal loading
or a long-time emergency loading.
Development means activities to either create a new asset or to materially increase the
service performance or potential of an existing asset.
Design Life means the period of time over which the future economic benefits (service
performance or potential) embodied in an asset is designed to be consumed, or the
total economic benefits, expressed in terms of production or similar units that are
designed to be obtained.
Distribution Transformer means a transformer that steps distribution voltage,
generally 11kV but in some cases 6.6kV or 22kV, to 400/230 volts. It has no forced
cooling or on-load tap changing.
Eastern Region is the part of Powercos electricity network supplying Tauranga,
Western Bay of Plenty, Coromandel Peninsula and the area immediately to the west of
the Kaimai and Mamaku ranges as far south as Kinleith (refer to Appendix 2).
Economic Life means the period from the acquisition of the asset to the time when the
asset, while still capable of providing a service, ceases to be the lowest cost alternative
to satisfy a particular level of service.

Class Capacity means the capacity of the lowest-rated incoming supply to a

substation, plus the capacity that can be transferred to alternative supplies on
the distribution network within the timeframe required by the substation security
classification.

Emergency Spares means holdings of parts or equipment to provide a level of

immunity in the network operation against a prescribed (catastrophic) failure of assets.

Consumer means an entity that receives electricity supply through a connection to

Powercos network, but is charged for the connection by an electricity retailer.

Failure means an event in which a component does not operate or ceases to operate
as intended. An example of the first kind is a circuit-breaker that fails to trip; an example
of the second kind is a transformer that is tripped by its Buchholz relay.

Contingency means the state of a system in which one or more primary components
are out of service. The contingency level is determined by the number of primary
components out of service. A k-level contingency is, thus, the state of a system in
which exactly k primary components are out of service.
Critical Spares are specialised parts that are stored to keep an existing asset in a
serviceable condition. They may be consumables needed as part of a maintenance

232

regime or special parts that would otherwise need to be specially manufactured due to
obsolescence or have a long lead time.

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

EPB means Electric Power Board.

FIDI (Feeder Interruption Duration Index) means the total duration of interruptions of
supply that a consumer experiences in the period under consideration on a distribution
feeder. FIDI is measured in minutes per customer per year.
Firm Capacity means the capacity of the lowest rated alternative incoming supply to a
substation. (In the case of a single supply substation it is zero.)

Return to Index

Forced Outage means the unplanned loss of electricity supply due to one or more
network component failures.

Repair Time means the time taken to restore a faulty network component to
satisfactory performance.

GXP means any transmission grid exit point from which Powerco takes supply.

Replacement means the complete replacement of an asset that has reached the end
of its life, to provide a similar or agreed alternative level of service.

ICP means installation control point, which is the point of connection of a consumer to
the Powerco network.
IIMM means International Infrastructure Management Manual, 2006 Edition, published
by the Association of Local Government Engineering Inc (INGENIUM) and the National
Asset Management Steering (NAMS) Group.
Interruption means an unplanned loss of electricity supply of one minute or longer,
affecting three or more ICPs, due to an outage on the network.
Long-time Emergency Cyclic Loading is defined in IEC 354 as Load resulting from
the prolonged outage of some system elements that will not be reconnected before
a steady state temperature rise is reached in the transformer. This is not a normal
operating condition and its occurrence is expected to be rare, but it may persist for
weeks or even months and can lead to considerable ageing. However, it should not be
the cause of breakdown due to thermal distribution or reduction of dielectric strength.
Maintenance means activities necessary for retaining an asset as near as practical
to its original condition, but excluding renewal of the asset. Replacement of subcomponents of an asset can be considered maintenance in this context.
MED means Municipal Electricity Department.
Outage means a loss of electricity supply.
Redundant Unit means a component whose outage will not lead to a loss of electricity
supply to consumers, but for which at least one contingency state exists the outage
of which will not lead to a loss of electricity supply for the consumer.
Refurbishment means activities to rebuild or replace parts or components of an asset,
to restore it to a required functional condition and extend its life beyond that originally
expected (which may incorporate some modification). Refurbishment is a renewal activity.
Reliability Assessment means determining the optimum solution to any required
network reinforcement by quantifying the benefits of proposed works and/or enabling a
quantitative comparison of alternative system configurations.
Renewal means activities to replace an existing asset with one of equivalent service
performance capability.
Repair means the restoration of the functionality of a network component, either by
replacing parts or by rectifying faults.

Return to Index

SAIDI (System Average Interruption Duration Index) means the average length
of time of interruptions of supply that a consumer experiences in the period under
consideration. The classes of SAIDI are: class A, Transpower planned outages; class
B, Powerco planned outages; class C, Powerco unplanned outages; and class D,
Transpower unplanned outages.
SAIFI (System Average Interruption Frequency Index) means the average number of
interruptions of supply that a consumer experiences in the period under consideration.
The classes of SAIFI are: class A, Transpower planned outages; class B, Powerco
planned outages; class C, Powerco unplanned outages; and class D, Transpower
unplanned outages.
Scheduled Outage or Planned Outage means a planned loss of electricity supply.
Security means the ability of the network to meet the service performance demanded
of it during and after a transient or dynamic disturbance of the network or an outage to
a component of the network.
Service Performance means the level of electricity supply service delivered in terms of
quality, capacity and reliability.
Service Potential means the total expected future service performance of an asset.
It is normally determined by reference to the service performance and economic life of
similar assets.
Service Provider means a contractor or business that supplies a service to Powerco.
Short-time Emergency Loading is defined in IEC 354 as Unusually heavy loading due
to the occurrence of one or more unlikely events which seriously disturb normal system
loading, causing the conductor hot spots to reach dangerous levels and, possibly, a
temporary reduction in the dielectric strength. However, acceptance of this condition for a
short time may be preferable to other alternatives. This type of loading is expected to occur
rarely, and it must be rapidly reduced or the transformer disconnected within a short time
in order to prevent its failure. The permissible duration of this load is shorter than the
thermal time constant of the transformer and depends on the operating temperature
before the increase in the loading; typically, it would be less than half an hour.
Switching Time means the time delay between a forced outage and restoration of
power by switching on the network.
Western Region is the part of Powercos network supplying the Taranaki, Wanganui,
Manawatu and Wairarapa areas (refer to Appendix 3).

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

233

Appendix 2: SUBTRANSMISSION MAPS

Manawatu Region Subtransmission Map

234

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Taranaki Region Subtransmission Map

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

235

Tauranga Region Subtransmission Map

236

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Valley Region Subtransmission Map Coromandel, Hauraki Plains

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

237

Valley Subtransmission Map East and South Waikato

238

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Wanganui Region Subtransmission Map

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

239

Wanganui Region Subtransmission Map

240

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

Appendix 3
11.1. Framework Questions for Reference

B3.3 Period to which the Plan Relates

B.2 AMP Summary

Does the AMP include a summary that provides a brief overview of the AMP
contents?

Section 1,
Appendix 3

How effectively does the summary highlight information that the Electricity
Distribution Businesses (EDB) consider significant? Is this highlighted information
relevant to stakeholders and, in particular, to distribution systems users?

Section 1,
Chief Exec.
Statement

Is there any information in the AMP that is of particular importance or relevance

to customers that is not highlighted in the summary?

Section 1

11.2. B.3 Background and Objectives

B 3.1 Purpose of Plan
Does the AMP contain a purpose statement?

Section 2.2

Does the purpose statement make the status of the AMP clear? For some
businesses the AMP will be the key document that guides the Asset
Management process. Other businesses will have a different Asset Management
system in place and will write the disclosed AMP purely to meet the disclosure
requirements.

Section 2.2

Does the purpose statement also include the objectives of the EDBs Asset
Management planning process? To what extent are these objectives consistent
with the EDBs vision and mission statements? Do the objectives show a clear
recognition of stakeholder interests?

Section 2.1.2

Figure 2.4

Section 2.2
Section 2.3

Does the AMP state the EDBs high-level corporate mission or vision as it relates
to Asset Management?

Section 2.1.2

Does the AMP identify the documented plans produced as outputs of the EDBs
annual business planning process?

Section 2.5

Section 2.5
Figure 2.6
Section 9.2
Figure 2.4
Section 6.1
Section 7.1,
Section 8.9.1

Return to Index

Does the AMP state the date on which the AMP was approved by the Board of
Directors?

Section 2.2.1
Form 2

B3.4 Stakeholder Interests

Does the AMP identify the EDBs important stakeholders and indicate:

Section 2.3

How the interests of stakeholders are identified;

Section 2.3.1

What these interests are;

Section 2.3.1

How these interests are accommodated in the EDBs Asset Management

practices;

Section 2.4,
Section 4.2
Figure 2.7

and how conflicting interests are managed?

Section 2.4
Section 2.6.2

B3.2 Interaction with Corporate Goals, Business Planning Processes and Plans

How well are the objectives of the EDBs Asset Management and planning
processes integrated with its other business plan and goals and how well does
the AMP describe this relationship?

Section 2.2.1

B3.5 Accountabilities and Responsibilities for Asset Management

Figure 2.6

Does the AMP show how the different documented plans relate to one
another with particular reference to any plans specifically dealing with Asset
Management?

Does the AMP specifically state the period covered by the plan?

At the governance level, does the AMP describe the extent of Board approval
required for key Asset Management plans and decisions and the extent to which
Asset Management outcomes are regularly reported to the Board:

Section 2.7

At the executive level, does the AMP provide an indication of how the in-house
Asset Management and planning organisation is structured?

Section 2.7

At the field operations level, does the AMP comment on how field operations are
managed, the extent to which field work is undertaken in-house and the areas
where outsourced contractors are used?

Section 2.7.4

Section 2.6.1
Section 2.9
Figure 2.8

B3.6 Asset Management Systems and Processes

Does the AMP identify the key systems holding data used in the Asset
Management process? Does it describe the nature of the data held in each
system and what this data is used for?

Section 2.8

Does the AMP comment on the completeness or accuracy of the asset data and
does it identify any specific areas where the data is incomplete or inaccurate?

Section
2.8.12
Section
11.2.3

Section 2.5
Figure 2.2
Figure 2.7

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

241

If there is a problem with data accuracy or completeness, does the AMP disclose
initiatives to improve the quality of the data?

Section
2.8.12

The extent to which individual zone substations have n-x

subtransmission security.

Section
11.4.1
Does the AMP describe the processes used within the business for:
managing routine asset inspections and network maintenance;
planning and implementation of network development processes; and
measuring network performance (SAIDI, SAIFI) for disclosure purposes?

Section 7.2;
Table 7.1 to 7.2;
Sections 7.8.3 to
7.8.11;

Section 2.6

Tables 7.21 to 7.26;

Section 2.8.6

Appendix 2

Section 6.3
Section 7
Section 5.2

11.3. B.4 Details of Assets Covered

B4.1 Description of the Distribution Area
Does the high-level description of the distribution area include:
The distribution areas covered;

Section 3.1

Identification of large consumers that have a significant impact on

network operations or Asset Management priorities;

Section 3.4.4 to
3.4.11

Description of the load characteristics for different parts of the network;

and

Sections 3.3 and 3.4,

specifically 3.3.1 to
3.3.6

The peak demand and total electricity delivered in the previous year,
broken down by geographically non-contiguous network, if any?

Section 3.1

A description of the distribution system including the extent to which it

is underground;

Sections 3.2.4, 3.2.7,

3.2.10; Table 3.1

A brief description of the networks distribution substation

arrangements;

Section 3.2.9

A description of the low-voltage network, including the extent to which it

is underground; and

Section 3.2.10

An overview of secondary assets such as ripple injection systems,

SCADA and telecommunications systems?

Section 3.2.11

B4.3 Description of the Network Assets

B4.2 Description of the Network Configuration

Does the AMP include a description of the network configuration that
includes:
Identification of the bulk electricity supply points and any embedded
generation with a capacity greater than 1MW;

Section 3.2.2
Section 3.2.5
Section 7.8.2

Does the AMP include a description of the assets that make up the
distribution system that includes, for each asset category:
Voltage levels;
Descriptions and quantity of assets;
Age profiles;

Value of the assets in each category (which can be drawn from the ODV
disclosure or other record bases kept by the EDB; and
A discussion of the condition of the assets, further broken down as
appropriate and including, if necessary, a discussion of systemic issues
leading to premature asset replacement?

Section 3.2 (quantities)

Section 3.5 to 3.10
(age profiles)

Section 3.2
Section 3.5 - 3.10

B4.4 Justification for Assets

How does the EDB justify its asset base? Comment briefly whether the
AMP includes any asset justification and the nature and reasonableness
of the justification provided.

Section 3.2

Appendix 2
The existing firm supply capacity and current peak load at each bulk
supply point;

Section 7.8.2

A description of the subtransmission system fed from bulk supply

points, including identification and capacity of zone substation and the
voltage of the subtransmission network;

Section 3.2.4 & 3.2.6;

Section 7.8.3 to
7.8.11;
Tables 7.15 to 7.20;
Appendix 2

242

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index

11.4. B.5 Service Levels

11.5. B.6 Capital Works Planning

B5.1 Consumer-Oriented Service Targets

What consumer performance targets are included in the AMP? Are
the targets objectively measurable, adequately defined and is the EDB
proposing to improve the level of service over the period of the plan?
To what extent are the targets consistent with the other plans set out in
the AMP?

B6.1 Planning Criteria

All of Section 4.2
Section 5.2
Section 6.6.5
Section 7.2
Section 7.8.5 to
7.8.11
Section 9.4.8

Section 4.2.2
Section 4.3
Section 5.3

B5.3 Justification for Targets

Does the AMP include the basis on which each performance indicator
was determined?

Section 4.2

Does the AMP describe the criteria for determining the capacity of new
equipment for different asset types or different parts of the network?

Section 4.2

Section 4

Sections 7.2 -7.3

Section 7.3
Figure 7.7

B6.2 Prioritisation of Network Developments

Does the AMP describe the process and criteria for prioritising network
developments?

B5.2 Asset Performance and Efficiency Targets

What asset performance and efficiency targets are included in the
AMP? Are the targets objectively measurable, adequately defined and is
the EDB proposing to improve the level of service over the period of the
plan? To what extent are the targets consistent with the other plans set
out in the AMP?

Does the AMP describe the planning criteria used for network
developments?

Section 2.6.2

B6.3 Demand Forecasts

Does the AMP describe the load forecasting methodology, including all
the factors used in preparing the estimates?

Section 7.5

Are load forecasts broken down to at least the zone substation level and
do they cover the whole of the planning period?

Section 7.5.11

Is there any discussion of the impact of uncertain but substantial

individual projects or developments? Is the extent to which these
uncertain load developments are included in the forecast clear?

Section 7.5.1, 7.5.10

Does the load forecast take into account the impact of any embedded
generation or anticipated levels of the distributed generation within the
network?

Section 3.2.3

Does the load forecast take into account the impact of any demand
management initiatives?

Section 4.3.5

Does the AMP identify anticipated network or equipment constraints

due to forecast load growth during the planning period?

Section 7.8.5 to
7.8.11

Tables 7.8 to 7.13

Section 7.5.3
Section 7.6.2
Section 7.5.4

B6.4 Distributed Generation

Does the AMP describe the policies of the EDB in relation to the
connection of distributed generation?

Section 4.3.5

Does the AMP discuss the impact of distributed generation on the

EDBs network development plans?

Section 6.4.5

Section 7.6
Section 7.5.3
Section 7.6.2
Section 7.8

Return to Index

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

243

11.6. B.7 Maintenance Planning

B6.5 Non-Network Options

Does the AMP discuss the manner in which the EDB seeks to
identify and pursue economically feasible and practical alternatives to
conventional network augmentation in addressing network constraints?

Section 4.3.5

B7.1 Maintenance Planning Criteria

Section 7.6.3

Does the AMP include a description of the EDBs maintenance planning

criteria and assumptions?

Does the AMP discuss the potential for distributed generation or other
non-network solutions to address identified network problems or
constraints?

Section 7.6.1, 7.6.2

Section 8.10.1

B6.6 Network Development Plan

Does the AMP include an analysis of the network development options
available and details of the decisions made to satisfy and meet target
levels of service?

B7.2 Inspection, Condition-Monitoring and Routine Maintenance

Does the AMP provide a description of its planned inspection, testing
and condition monitoring practices, the different asset categories, and
the intervals with which these are carried out?

Section 6.3

Does the AMP describe the process by which defects identified by its
inspection and condition-monitoring programme are rectified?

Section 2.8.2

Sections 7.12, 7.13

Tables 7.27
Section 8.12
Table 8.4

Does the AMP include a detailed description of the projects currently

underway or planned to start in the next 12 months;

Section 7.12

244

Section 6.3.10,
Section 6.4
Sections 6.4.7, 6.6
to 6.11

Does the AMP provide budgets for routine maintenance activities,

broken down by asset category, for the whole planning period?

Section 9.5.2

Section 7.12
Section 8.12

B7.3 Asset Renewal and Refurbishment

Table 7.27, Table 8.4

Does the AMP provide a description of the EDBs asset renewal and
refurbishment policies, including the basis on which refurbishment or
renewal decisions are made?

Section 6.4

Does the AMP discuss the planned asset renewal and refurbishment
policies for each asset category including:

Section 6.4 (policies)

A detailed description of the projects currently under way and planned

for the next 12 months;

Section 6.6 - 6.11

A summary description of the projects planned for the next four years;
and

Section 6.6-6.11

A high-level description of the other work being considered for the

remainder of the planning period?

Section 6.6 - 6.11

Does the AMP include a budget for renewal and refurbishments, broken
down by major asset category, and covering the whole of the planning
period?

Section 6.13

Section 8.12

A high-level description of the projects being considered for the

remainder of the planning period?

Table 7.27

Does the AMP discuss the reasons for choosing the selected option for
those major network development projects for which decisions have
been made?

Table 7.27

For other projects that are planned to start in the next five years,
does the AMP discuss alternative options, including the potential
for non-network alternatives to be more cost-effective than network
augmentations?

Table 7.27

Does the AMP include a capital expenditure budget, broken down

sufficiently to allow an understanding of expenditure on all main types of
development projects?

Section 9

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Section 6.6.3, 6.7.3,

6.8.3, 6.9.3, 6.10.3,
6.11.3

Does the AMP highlight systemic problems for particular asset types
and the actions being taken to address these?

Table 7.27, Table 8.4

A summary description of the projects planned for the next four years;
and

Section 6.3

Table 8.4
Table 8.4

Table 8.4

Figure 9.2 to 9.8

Section 6.6 - 6.11

(programmes)
Section 6.13
Section 6.13
Section 9.3
Section 9.4, 9.6

Return to Index

11.7. B.8 Risk Management

11.8. B.9 Performance Evaluation

B.8 Risk Management

B9.1 Financial and Physical Progress

Does the AMP include details of the EDBs risks policies and
assessment and mitigation practices including:

Section 10.2

Methods, details and conclusions of risk analysis;

Sections 10.3

The main risks identified;

Section 10.4

Details of emergency response and contingency plans?

Section 10.5

Does the AMP identify specific development projects or maintenance

programmes with the objective of managing risk? Are these projects
discussed and linked back to the development plan or maintenance
programmes?

Section 10.3
Section 10.7

Is the actual capital expenditure for the previous year compared with
that presented in the previous AMP and are significant differences
discussed?

Section 5.7.1

Is the progress of development projects against plan (as presented

in the previous AMP) assessed and are the reasons for substantial
variances highlighted? Are any construction or other problems
experienced discussed?

Section 5.6

Is the actual maintenance expenditure compared with that planned in

the previous AMP and the reasons for significant differences discussed?

Section 5.7.2

Is progress and maintenance initiatives and programmes assessed and

discussed and is the effectiveness of these programmes noted?

Section 5.7.2

Figure 9.1

Section 11.3.2

B9.2 Service Level and Asset Performance

Is the measured service level and asset performance for the previous
year presented for all the targets discussed under the Service Levels
section of the AMP?

Sections 5.2 5.3

Is there a comparison between actual and target performance for the

preceding year with an explanation for any significant variances?

Sections 5.2 5.3

B9.3 Gap Analysis

Does the AMP identify significant gaps between targeted and actual
performance. If so, does it describe the action to be taken to address
the situation (If not caused by one-off factors)?

Section 11.2.2

Does the AMP review the overall quality of Asset Management and
planning within the EDB and discuss any initiatives for improvement?

Section 11.3 & 11.5

Section 11.4

B.10 Expenditure Forecast Reconciliations and Assumptions

Return to Index

Does the AMP include forecasts of capital and operating expenditure for
the minimum ten year asset management planning period?

Section 9

Does the AMP include reconciliations of actual expenditure against

forecasts for the most recent financial year for which data is available?

Section 5.7

Does the AMP identify all significant assumptions that are considered to
have a material impact on forecast expenditure (capital or operating) for
the planning period

Section 9.2

Are the significant assumptions presented and discussed in a manner

that makes their sources and impacts understandable to electricity
consumers?

Section 9.2

Does the AMP identify assumptions that have been made in relation to
the sources of uncertainty?

Section 9.4.1

Tables 9.3 to 9.5

Sections 9.4.2 - 9.4.7

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

245

246

ASSET MANAGEMENT PLAN ELECTRICITY NETWORKS FY2010 FY2019

Return to Index