Electricity Asset Management Plan 2019-2029
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• A decrease of $55m in asset replacement and renewal expenditure resulted from re-categorisation of the proactive overhead conductor replacement programme and protection upgrades programme to Reliability, Safety and Environment (see below), that is partly offset by the provision for the Right of Way poles replacement programme and new proactive 11kV cable replacement programme. Adjusting for the re-categorisation impact, expenditure in this category would have increased $68m relative to the 2018 AMP. A reduction in replacement capex expected from the removal of Albany-Wairau 110kV line ($6m), contingent on Transpower's decision on the HEN-ALB 110kV removal, is also incorporated in the forecast; • A $153m increase in relocation forecast results from the provision for the Auckland Light Rail Project ($85m), the SH16 Safe Road project ($20m) and an increase in undergrounding of overhead lines; • The increase in reliability ($109m post re-categorisation) stems from initiatives to improve network reliability including: - Proactive replacement programmes of 11kV overhead conductors and distribution transformers to improve the increasing trend of faults associated with this aging asset population; - Upgrading of copper pilot wire subtransmission protection and zone substation electromechanical/static protection systems to provide supervision and analytic functionality on faults and enable timely response and remedial actions; - Increase in 11kV feeder isolation points to reduce the number of customers impacted in a fault, and installation of isolation remote controls to enable faster restoration of supply during an outage; - Meshing of distribution feeders and battery-powered micro-grid solutions where appropriate to the remote part of the network to improve reliability and resilience of supply; and - A consolidated area fault reduction programme that undertakes the reactive repair and maintenance in a cohesive approach to targeted areas where there has been a high number outages experienced by the customers; Key changes in Non-network CAPEX over the 9-year period for which the current and prior year AMP overlap stem from: • The rapid evolution of new network technology and the changing demands of both our stakeholders and customers which is reflected in an uplift in technology-related CAPEX of $30m. This is due to an increased focus on both: - Digital enablement of networks outcomes. Specific examples include further investment in Vegetation Management and Outage Prediction; DERMS; LV network visibility for optimised network operation and maintenance and construction; customer operation enhancements; full integration of Field Service Providers; enhancement of operational capability through OMS/DMS; and enhanced ability to manage connected network devices, such as controllable EV Chargers - Cyber security, data analytics, IT network modernisation, and lifecycle management of core applications and infrastructure in the later years. Examples of this work include upgrades to core enabling systems (e.g.: Siebel); integration of core technology (e.g. Gentrack/Siebel); and cyber security (e.g.: Web firewall protection) • An increase in property capex ($33m) related to refurbishment costs and improvements and accounting treatments from the IFRS 16 lease treatment change OPEX FORECAST The OPEX forecast for the electricity distribution network assets for the next 10-year planning period, broken down into the asset categories defined in the Electricity Distribution Information Disclosure Amendments Determination 2012, is shown in Table 6-3.
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