AMP 2019-2029

Electricity Asset Management Plan 2019-2029

198

Vector Limited://

CUSTOMER EXPERIENCE

SAFETY

RELIABILITY

RESILIENCE

OPERATIONAL EFFICIENCY

CYBER SECURITY AND PRIVACY

OPTIONS CONSIDERED

DESCRIPTION

DISCUSSION OF OPTION

ESTIMATED COST (NPV IF APPLICABLE)

STATUS

Option 1: Do nothing

A ‘Do nothing’ approach means that this asset class will deteriorate further and by 2039 our prediction of cable population with poor asset health will be triple that at the end of this AMP period – 2029. This option will remove the risks associated with the ‘Do nothing’ approach and ensure that the network is ready for the longer term future. This option will ensure that the population with poor asset health remains stable

Rejected

Option 2: Undertake a programme of works to

$32.25M Selected

replace 11 kV underground distribution cables with poor health

PROPOSED INVESTMENT SUMMARY ($MILLION NOMINAL)

DESCRIPTION

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

FY29 TOTAL

Auckland 11 kV cable replacement

1.00

1.20

1.44

1.73

2.07

2.49

2.99

3.58

4.30

5.16

25.96

Northern 11 kV cable replacement

0.50

0.53

0.55

0.58

0.61

0.64

0.67

0.70

0.74

0.78

6.30

Total CAPEX

1.50

1.73

1.99

2.31

2.68

3.13

3.66

4.28

5.04

5.94

32.26

LV NETWORK REPLACEMENT

NEEDS STATEMENT The LV distribution network is the stalwart asset to distribute electricity to customers and is becoming more critical as people increasingly rely on electricity. In the previous century the LV distribution network predominantly supplied power to radios, fridges, freezers, lighting and then televisions and washing machines. In the 1980s computers, microwaves and security systems were added. More and more devices will use and be reliant on electricity e.g. autonomous home management systems, mobile phones, modems, induction hobs, EVs etc. To this end, we need to replace certain components of the LV network e.g. ageing LV PILC cables, that date from the 1950s for which we are starting to see an increase in failure rates in our network. There are also portions in the LV OH network that needs replacement. Rather than replacing the network with bare conductors, LV aerial bundled conductors can be used that will provide increased visual aerial amenity, increased safety and will reduce the need for aggressive and extensive tree trimming. At the time of writing this AMP, the CBARM model for our LV network is still to be developed and substantial data gathering and model building are required to forward plan our LV replacement programme. At this point in time, we undertake routine inspections are still reactive in our planning approach of replacement of the LV network. Our LiDAR initiative will also assist to plan our programme of works for the LV network.

TARGETED OUTCOMES