Electricity Asset Management Plan 2019-2029
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Vector Limited://
The timing and scope of relocation projects are driven by the third party concerned. Consequently, Vector often has less advance notice of relocation projects and / or detailed scope, compared to projects initiated from within Vector. This makes the accurate forecasting of relocation costs difficult.
OPTIONS CONSIDERED
DESCRIPTION
OPTIONS
ESTIMATED COST (NPV IF APPLICABLE)
STATUS
Option 1: Do nothing
Because Vector is required by various Acts to undertake relocation projects when reasonably requested, ‘Do nothing is not an option. Relocation projects occur when infrastructure projects are initiated by other utilities and Vector will oblige in terms of the Acts to undertake such works
Rejected
Option 2: Invest capital in customer relocations projects and programmes of work
$218.1M Selected
PROPOSED INVESTMENT SUMMARY ($MILLION NOMINAL)
DESCRIPTION
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29 TOTAL
Auckland relocations
3.18
6.90
8.55
6.00
5.05
5.00
6.50
6.50
6.50
6.50
60.68
Auckland Light Rail Project
12.00
21.00
21.00
21.00
8.00
83.00
Northern relocations
15.60
13.16
8.20
4.50
4.50
4.50
6.00
6.00
6.00
6.00
74.46
Total CAPEX
18.00
28.96
37.75
31.50
30.55
17.50
12.50
12.50
12.50
12.50
218.14
5.2 OPERATE, MAINTAIN, RENEW AND REPLACE The safe and reliable operation of the network relies upon renewal and replacement of assets together with a sound maintenance regime. Vector’s ultimate aim for operations and maintenance is to meet the service level targets set out in Section 2. Our approach includes provision of a safe workplace for staff and safe networks for the community, delivering customer service and network performance to meet the required standards and service levels and maintaining an efficient and sustainable cost structure. Network refurbishment programmes of work are developed to identify and restore or replace assets based on asset health and criticality. These programmes factor in the benefits of future reductions in operating costs and are based on a technical assessment of the serviceability of the asset and the economic costs of replacement or refurbishment. This includes ensuring asset safety and ensuring assets meet any associated environmental requirements. Projects or programmes are initiated to address gaps in service level targets that are either already apparent or are forecast in the next 5-10 years. The current gap in the reliability indices, with SAIDI and SAIFI exceeding targets, is currently a main focus area of our renew / replace programme. In addition, there is an emphasis on improving the safety of network assets through improving visibility of assets. Programmes of work have been created where expenditure is planned across a number of years. We are accelerating our rate of replacement of certain assets from a safety and reliability perspective. An example among others, described in the section below, is the replacement of small diameter OH conductors for which there is a potential trend of increasing failure (details of the rate of failure is given in Section 4). Another example described below is our programme to replace certain types of oil filled ring main units where there is evidence of a trend of poor asset health some of which are in high criticality locations. Vector’s forecast expenditure for Routine and Corrective Maintenance and Inspections is set out in Forecast Operational Expenditure (Schedule 11b) in Appendix 7 as part of the disclosure Report on Forecast Operational Expenditure. Asset replacement and renewal is forecast in Forecast Capital Expenditure (Schedule 11a) in Appendix 6 as part of the disclosure Report on Forecast Capital Expenditure. A typical breakdown of Vector’s expenditure on Routine and Corrective Maintenance and Inspections across the primary asset categories is shown in Table 5-2, reflected as a percentage of the value forecast in Schedule 11b.
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