Electricity Network Performance Report New South Wales. Endeavour Energy Annual Report 2013/14

Transcription

1 Electricity Network Performance Report New South Wales Endeavour Energy Annual Report 2013/14 November 2014

2 Contents 1.0 Profile Overview Capital Works Program Network Management Overview Key challenges addressed by the network strategy Network Complaints Customer Service Standards Reporting Network Planning Overview Design Planning Criteria Compliance Reporting Demand Management Asset Management Overview Technical Service Standards Quality of Supply Overview Performance Data Distribution Reliability Overview Organisational Performance (Normalised) Trend Organisational Detailed Performance Current Year Reliability Report against Standards Performance against Individual Feeder Standards Transmission Reliability Transmission Reliability Performance Data Network Safety Overview Public Reportable Safety Incidents Worker Reportable Safety Incidents Major Incident Reports Customer Installations... 45

3 6.1 Reports against Customer Installation Safety Plans Customer Installation Shock Reports Contestable Works Scheme Bushfire Risk Management Bush FireRisk Management Plan Victorian Bushfire Royal Commission Major Bushfire Network Events Inspection Activities Fire Reporting Preventive Programs - Construction and Refurbishment Programs Proactive Programs Public Awareness Public Electrical Safety Awareness Power Line Crossings of Navigable Waterways COO/Managing Director Declaration... 61

4 Tables Table 1.1 Distributor Statistics Table 1.2 Capital Works Program Trend Table 2.1 Complaint Performance Data Table 2.2 Network Complaint Investigations Completed 2013/ Table 2.3 Customer Service Standards Current Year Data Table 3.2 Demand Management Projects Implemented During the Current Year Table 3.3 Demand Management Investigations in Current Year Found Non-Viable Table 4.1 Organisational Performance Trends (Normalised) Table 4.2 Unplanned Reliability Performance by Cause Table 4.3 Organisational Detailed Performance 2013/ Table 4.4 CBD Feeder Performance (Normalised) Trend Table 4.5 Urban Feeder Performance (Normalised) Trend Table 4.6 Rural Short Feeder Performance (Normalised) Trend Table 4.7 Rural Long-Feeder Performance (Normalised) Trend Table 4.8 Excluded Interruptions for Current Year Table 4.9 Individual Feeder Standards for Exception Reporting Specified in the Licence Conditions Applicable to Endeavour Energy Table 4.10 Individual Feeder Performance against the Standard Summary Table 5.1 Public Reportable Safety Incidents Table 5.2 Worker, contractor and ASP Reportable Safety Incidents Table 6.1 Installation Inspections Trend Table 6.2 Customer Installation Shock Reports Trend Table 7.1 Contestable Works Trend NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

5 Introduction Endeavour Energy has published this Electricity Network Performance Report to report on the performance of its electricity distribution network for the 12 months to 30 June The report has been prepared in accordance with the Electricity Supply (Safety and Network Management) Regulation 2008 and measures Endeavour Energy s performance with respect to: network management; customer installation safety; public electrical safety awareness; and, bushfire risk management. Section 1 of this report provides an overview of Endeavour Energy in terms of size, resources and details of its electricity distribution network. Section 2 provides details of Endeavour Energy s published network management plans, network service standards and asset management policies, and its network strategy. Section 3 describes the strategic network planning framework and how it relates to the principles of total asset management. Section 4 describes Endeavour Energy s asset management strategy and how it relates to service delivery, whilst conforming to the principles of total asset management. Section 5 sets out Endeavour Energy s policy, strategies and approach to safety management including public and network worker safety. Section 6 reports against customer installation safety plans, the inspection process and management strategies. Section 7 describes the operation of the Accredited Service Provider (ASP) scheme and associated data on the level of work being carried out. Section 8 describes the performance of Endeavour Energy against its Bushfire Risk Management Plan. Section 9 gives details of the performance of Endeavour Energy against its Public Electrical Safety Awareness Plan (PESAP) and the initiatives taken to ensure the achievement of PESAP. Section 10 provides a report relating to Endeavour Energy s requirement to meet the Crossings of NSW Navigable Waters: Electricity Industry Code. 5 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

6 1.0 Profile 1.1 Overview Endeavour Energy is a New South Wales state-owned energy corporation serving some of Australia s largest and fastest growing regional economies. Endeavour Energy manages a $5.6 billion electricity distribution network for 922,205 customers, or 2.2 million people, in households and businesses across a network area spanning 24,500 square kilometres in Sydney s Greater West, the Illawarra, the Blue Mountains, the Southern Highlands and Shoalhaven. Endeavour Energy is incorporated under the Energy Services Act 1995 and operates within the terms of the Electricity Supply Act 1995 on behalf of our shareholder, the New South Wales Government. The focus of our 2,533 FTEs is to be of service to our communities by efficiently distributing electricity to our customers in a way that is safe, reliable and sustainable. We are committed to making a serious and sincere effort to deliver better value for our customers by reducing our operating costs without compromising safety or services to customers. Most of our supply of electricity is taken from the generation source through TransGrid s transmission network at 132kV and 66kV. Once the energy is transferred into the Endeavour Energy network, the voltage is reduced through 22 sub-transmission and 170 zone substations and distributed to customers through a 22kV/11kV/12.7kV High Voltage network. Distribution substations further reduce the voltage to suit customer requirements. Endeavour Energy's network franchise area has three regions, responsible for the local government areas set out in the following table: Region North Central South Local government areas Blacktown, Blue Mountains, Hawkesbury, Lithgow, Parramatta, Penrith and The Hills, plus parts of Hornsby, Mid-Western, Bathurst, Ryde and parts of Oberon. Camden, Campbelltown, Fairfield, Holroyd, Liverpool, Wingecarribee and Wollondily, parts of Bankstown, parts of Upper Lachlan Shire, and parts of Goulburn Mulwaree. Kiama, Shellharbour, Shoalhaven and Wollongong. The key load centres within Endeavour Energy supply area are at Blacktown, Campbelltown, Liverpool, Parramatta, Penrith, and Wollongong. Sixteen Endeavour Energy field service centres operate within our franchise area, with staff whose key functions are to maintain the network, repair faults, respond to emergencies, and service customers and developers in relation to customer connection and contestable projects. The centres - which are situated within half an hour's travel of our major system assets - are located in Bowenfels, Glendenning, Hoxton Park, Kandos, Katoomba, Kings Park, Moss Vale, Narellan, Nowra, Parramatta, Penrith, Picton, Shellharbour, South Windsor, Springhill and Ulladulla (refer to the map at the end of this section for their indicative locations). 6 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

7 Endeavour Energy service area and Regions Note: Huntingwood is Endeavour Energy s main head office, with other offices based at Coniston and Blacktown. Figure 1 Endeavour Energy s geographic boundary and main office /field centre locations 7 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

8 In 2012, the New South Wales Government announced plans to reform the three NSW electricity distribution businesses including Endeavour Energy to generate $400 million in efficiencies over four years to fund its energy rebate scheme for low-income households and families. These reforms have reined in the capital investment programs, improved operating efficiencies and halted years of double digit price rises without compromising safety or reliability. In two years, capital budgets have been reduced by $2.2 billion. Double digit increases in network charges from 2009 to 2012 have been replaced by more modest increases below CPI in July 2013 and July Endeavour Energy continues to be one of three separate legal entities and operates under a shared Group management model known as Networks NSW. It s managed on a day-to-day basis by a Chief Operating Officer (COO). The Endeavour Energy COO reports to the Chief Executive Officer (CEO), who is also the CEO of Ausgrid and Essential Energy. The governance and organisational chart shown below (as at 30 June 2014) gives an overview of the management structure for Endeavour Energy. Figure 2 Endeavour Energy s governance and organisational chart Endeavour Energy supplies electricity to some of Australia s fastest growing communities, in terms of both population and load. However, in reviewing the data supplied in Table 1.1, the energy received by the network was 16,281 GWh, 2.5% below (16,964 GWh), with a decrease in maximum demand from 3,708 MW to 3,253 MW (-14%) over the same period. These figures have not been corrected for weather. 8 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

9 Endeavour Energy continues to experience the impact of lower-than-forecast electricity demand that is evident across south eastern Australia over the past year. This was attributable to milder weather conditions, economic pressures on businesses and manufacturers, penetration of net connected solar panels, more efficient customer appliances and to customers changing their usage patterns in response to rising prices. With consumption across the franchise falling by about 2.5%, there was still a need to invest and supply growth areas and renew expired assets. Total customer numbers increased by 14,217 or 1.57%. The system loss factor fell marginally to 3.96% (from 4.15%), this is a return to the general trend which had been downward over the 10 years prior to 2012 and equates to approximately 34,000 equivalent tonnes of CO2. During the concluded regulatory period ( ), total expenditure on the network of $2.7 billion was approved by the Australian Energy Regulator (AER). Over the next five years ( ), our forecast capital expenditure of $1.7 billion is 43% lower in real terms than allowed for During the year work was undertaken in preparing the substantive submission to the AER. With the peak of capital investment now behind us, our focus will be on continuing to operate efficiently while delivering the smaller capital investment program required over coming years. The reduced capital expenditure also reflects strategic realignment of our objectives under industry reform, with a greater focus on minimising prices for customers and reductions in the rate of growth in peak demand. Endeavour Energy s network strategy detailed in our Network Management Plan addresses the operating environment facing the network business and addresses three key challenges, namely: Servicing the continuing growth in demand particularly in greenfield areas; Meeting customers reliability needs; and Managing the network efficiently and sustainably. Network investment in the coming five years is primarily focused on servicing high-growth urban areas, particular the Growth Centres in North West and South West Sydney. We will also continue to focus on replacing deteriorated assets to ensure we maintain reliable and sustainable network services to customers. In developing our network strategy, we took a range of regional, climatic, asset, customer and licence requirement issues into account. Some of these include: Our network contains some of Australia s fastest-growing communities, as a result of strategies like UrbanGrowth NSW that have been established to reduce barriers to private sector investment in development projects. While customers expect secure and reliable supply, they have been become increasingly concerned about the price of electricity. Network investment must be prudent and efficient to minimise upward pressure on prices. Peak temperatures across the network are typically higher and stay high for longer periods than those of central Sydney and other coastal areas. Air conditioning is used in 81% of households in Greater Western Sydney, compared with 59% in the Illawarra and 40% in the Blue Mountains. This continues to result in a peakier load pattern in hot weather requiring more assets to service demand that only exists for a short time each year. Increasing penetration of rooftop photovoltaic systems, is contributing to reduced energy usage and increase in network management issues. 9 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

10 Table 1.1 Distributor Statistics Number at end of Previous Year Number at end of 2013/14 Distribution Customer Numbers (Total) 4 907, ,205 Distribution Customer Numbers (By Region) Northern Region 403, ,305 Central Region 318, ,245 Southern Region 185, ,655 Maximum Demand (Aggregated System MW) 3,708 3,253 Feeder Numbers CBD 0 0 Feeder Numbers Urban 1,139 1,211 Feeder Numbers Short Rural Feeder Numbers Long Rural 1 1 Energy Received by Dist. Network to Year End (GWh) 16,694 16,281 Energy Distributed to Year End (Residential) (GWh) 5,367 5,147 Energy Distributed to Year End (Non-Residential Including un-metered supplies) (GWh) 10,634 10,490 Energy Distributed to Year End (GWh) 16,001 15,637 System Loss Factor (%) Transmission System (km) 0 0 Transmission Substation (Number) 0 0 Sub Transmission System (km) 3,532 3,561 Substation - Zone (Number) Substation - Distribution (Number) 30,683 31,068 High Voltage Overhead (km) 11,326 11,314 High Voltage Underground (km) 4,055 4,264 Low Voltage Overhead (km) 8,853 8,850 Low Voltage Underground (km) 7,262 7,498 Pole (Number) 307, ,294 Streetlights (Number) 195, ,916 Employees (Full Time Equivalent Number) 3 2,635 2,533 Contractors (Headcount Number) NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

11 Notes: 1. Distances for overhead and underground lines are circuit km. 2. System Loss factors are most accurately derived from the company s subsequent billing analysis. 3. See narrative on pages A contributing factor to the increase in customer numbers for is associated with inclusion of customers who are active and in-active (vacant but still with supply). 11 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

12 1.2 Capital Works Program Network capital expenditure is below the capital expenditure allowances provided for in the AER Determination in 2009 (for the period of to ). The program is based upon the need to satisfy growth, renewal and licence conditions requirements for our network. Since the time that the AER made their determination, demand for electricity on the Endeavour Energy network has declined. Our capital works program has been reviewed and adjusted to ensure that the investment made is appropriate for the forecast level of demand. This will result in a lower total investment over the five years of the regulatory period than allowed by the AER. Table 1.2 Capital Works Program Trend Previous Years Current Year Year 2009/ / / / /14 Capital works program ($M) NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

13 2.0 Network Management 2.1 Overview In line with the Electricity Supply (Safety and Network Management) Regulation 2008, Endeavour Energy is required to prepare, implement and publish a Network Management Plan. The Plan is available at The Plan contains high level design, construction, operation and maintenance principles to manage network assets. It also incorporates principles applied to asset utilisation in the areas of safety, reliability, quality of supply and risk management. The Plan has four chapters covering: Network Safety and Reliability Customer Installation Safety Public Safety Awareness Bushfire Risk Management In common with the other NSW electricity distribution companies, Endeavour Energy s purpose statement is described within the Networks NSW 2013/14 Strategic Plan as: To be of service to our communities by efficiently distributing electricity to our customers in a way that is safe, reliable and sustainable. This statement communicates a focus on providing a safe, reliable and affordable electricity supply to the communities we serve. The Strategic Plan is supported in the achievement of this purpose by seven strategic plans that outline the desired outcomes in the following key areas of business operations and the key short term initiatives for Networks NSW that will deliver the desired outcomes in the long term: improve safety performance; deliver the network plan; improve customer value; leverage technology; manage business risk; deliver performance through people. achieve the financial plan; Endeavour Energy s Network Strategy supports the overall Networks NSW Strategic Plan and the plans that have been developed to deliver these objectives. In particular, the Network Strategy describes how the priorities of ensuring the safety of our employees, contractors and the public; meeting customers reliability needs; servicing growth in demand; and managing the network efficiently and sustainably drive the short and long term planning of network investment to enable achievement of the overall objective of controlling increases in network tariffs to no more than the rate of increase in the Consumer Price Index (CPI). The strategy is effected through the plans and programs developed using Endeavour Energy s network planning and management framework. The framework is embedded in a range of internal procedures, plans, standards and policy documents and managed by the Executive Network Asset Management Committee (ENAMC) chaired by the Chief Operating Officer, from July 2014 the General Manager Network Operations will chair this committee. Endorsement of the funding required to implement agreed plans and programs is provided by the Investment Governance Committee (IGC) 13 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

14 chaired by the GM Finance & Compliance and then approved under delegation as appropriate by either the Board, Chief Executive Officer or Chief Operating Officer. As part of the Networks NSW reform program, we have instituted a new Investment Governance Framework to review and rationalise our forecast capital program. The aim of the framework is to ensure that the processes by which investment decisions are made and implemented are: Compliant with safety, statutory and regulatory obligations and requirements; Prudent and efficient; Within a sustainable capital structure for each network business; and Any decisions of significance, which underpin the investment program, are considered and approved by the Board. The framework includes review of investment proposals by the Networks NSW Network Steering Committee and Investment Steering Committee prior to Board Approval. Endeavour Energy s Network Planning process is highly consultative and transparent. Forward network investment plans are reviewed annually and published in the Strategic Asset Management Plan (SAMP) Key challenges addressed by the network strategy Endeavour Energy s Network Strategy has an objective controlling its component of network tariffs to no more than the rate of increase in the CPI while meeting customers reliability needs, servicing growth in demand for electricity and managing the network in a safe, efficient and sustainable manner while meeting regulatory obligations. This objective is built on a foundation obligation of ensuring the safety of employees, contractors and the community. These focus areas are discussed in more detail below. Ensuring the safety of employees, contractors and the community Endeavour Energy has as its number one priority ensuring the safety of its workers, contractors and members of the community. To deliver on this priority the organisation annually develops and updates its Health and Safety Strategic Plan, which has as its purpose, to embed a strong and resilient safety culture within Endeavour Energy. Meeting customers reliability needs Network reliability is driven by a number of factors including network age, design, and configuration, historic capital expenditure levels and asset management practices as well as external influences on the network. In particular, the impact of vegetation on overhead lines is a significant contributor to the reliability of the network and this is reflected in the investment that the Company makes in managing this impact. To date, the focus of reliability improvement efforts has been on investing in a network that provides a high degree of resilience to environmental impacts. Recent levels of capital investment have reduced the average age of the network and have eliminated some areas where historic design and configuration practices did not support the levels of reliability now expected by customers. This expenditure has resulted in improvements in network reliability as measured by SAIDI. Further investment may continue to be required to maintain existing levels of reliability and to address specific poor performing areas of the network. This will be assessed on a needs basis. 14 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

15 Servicing growth in demand The Endeavour Energy network supply area includes Sydney s growth areas, with a significant amount of greenfield development occurring in areas such as the North West and South West growth sectors. In the context of the NSW Government s policy of increasing the supply of affordable housing, there is significant reputational risk to Endeavour Energy associated with an inability to provide infrastructure to meet this demand in a timely manner. The Company prioritises resources over other asset management activities to manage this risk. The network strategy addresses the demand growth over the medium term through a combination of significant supply side programs and projects, alongside continuing initiatives in demand management. Managing the network efficiently and sustainably A sustainable network is one that enables consistent levels of safety and reliability to be maintained over long asset lives while minimising volatility in the costs of service provision. This objective directly supports the overall Company objective of ensuring financial sustainability through effective investment in and efficient operation of the network asset. Meeting our regulatory obligations In our role as an asset manager, we are required to comply with a myriad of local, state and national laws, rules and regulations. These strict regulatory obligations are in place to ensure that we provide electricity in a safe and reliable manner. The key sources of our obligations include: the Electricity Supply Act 1995 (NSW), the Electricity (Customer Safety) Act, the National Electricity Law & Rules including from 1 July 2013 the National Energy Customer Framework. Under the Electricity Supply Act we are subject to specific Design Reliability & Performance Licence Conditions which place specific requirements on us to maintain certain levels of network reliability. 15 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

16 2.2 Network Complaints Table 2.1 Complaint Performance Data Previous Years Current Year Year 09/10 10/11 11/12 12/13 13/14 Complaints Total Complaints per 1,000 Distribution Customers Complaints regarding Vegetation Management Table 2.2 Network Complaint Investigations Completed 2013/14 Number Number Valid * Voltage Current 1 0 Other Quality 10 0 Reliability Safety 9 0 * A complaint is valid where non-compliance with published service and network standards occurs. Note: The total complaints given in table 2.1 include complaints relating to supply quality, safety, vegetation management and other miscellaneous complaints. The values given in table 2.2 do not include vegetation management and other miscellaneous complaints. 16 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

17 2.3 Customer Service Standards Reporting Table 2.3 Customer Service Standards Current Year Data Customer Service Standards Current Year Data Payments Given Based on Interruption Duration (Total Number) Claims Not Paid Based on Interruption Duration (Total Number) Payments Given Based on Interruption Frequency (Total Number) Claims Not Paid Based on Interruption Frequency (Total Number) Metropolitan Non-Metropolitan The basis for non-payment of claims is described in tabular form below. There were a total of 30 claims not paid. Table 2.4 Customer Service Standards Current Year Data Customer Service reasons for denied claims Insufficient duration Severe Weather Third Party Actions Other Metropolitan Non-Metropolitan Note: Customer Service Guarantee Payments are $80 per valid claim. 17 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

18 3.0 Network Planning 3.1 Overview Endeavour Energy operates in accordance with the legislative and regulatory framework applicable to electricity distribution network service providers (DNSPs) in NSW. As detailed in Section 2.1 of this report, Endeavour Energy prepares and publishes a Network Management Plan (NMP) outlining the approach to network safety and reliability, including the network planning framework and preparation of the Strategic Asset Management Plan (SAMP). Endeavour Energy is committed to the principles of the NSW Government s Total Asset Management (TAM) System and believes that our asset planning procedures are consistent with the TAM guidelines. The consistency of our asset planning procedures to the TAM model is demonstrated in the NMP, and is shown diagrammatically below. Figure 3 Endeavour Energy s Total Asset Management Model * SARP Strategic Asset Renewal Plan * NMIP Network Maintenance Implementation Plan 18 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

19 3.2 Design Planning Criteria Compliance Reporting Licence conditions imposed by the Minister for Energy in 2005 and modified in 2007 prescribed the minimum acceptable planning design security levels, and minimum reliability standards of the network. The Design Planning Criteria that determined these security levels, and that Endeavour Energy currently report on, are contained in Schedule 1 of the Design Reliability and Performance Licence Conditions for Distribution Network Service Providers issued by the Minster for Energy on 1 December 2007 and remained in force until 1 July 2014 when Schedule 1 and Licence Condition 18.1 was repealed. Endeavour Energy has applied the Design Planning Criteria stated in Schedule 1 of the 2007 Licence Conditions with the qualification that the CBD load types (referenced by table footnotes 3 and 6) do not apply to Endeavour Energy. It is to be noted that from 1 July 2014, Endeavour Energy is not required to report on or comply with the Schedule 1 requirements of the 2007 Licence Conditions and hence will not be reporting on this aspect of network performance in future editions of this report. Endeavour Energy s transmission network is generally constructed and operated as a meshed network with a high proportion of elements in service at any given time. In the majority of cases, planned single contingency events on the transmission network are managed to ensure no interruption to customers. The distribution network is generally constructed and operated as a radial system with an appropriate number of interconnections between feeders and between zone substations depending on availability and whether the system is urban or non-urban. In the majority of cases, planned single contingency events on the distribution network are managed to ensure minimal interruption to customers. In both urban and non-urban systems, this is achieved by manual switching of load where alternative supplies are available. Endeavour has met the requirements of Section 18.1 of the licence conditions via the actions and commentary below: Licence condition 18.1 (a) - Strategy and Plan to comply with design planning criteria Endeavour Energy implements its network strategy, including compliance with the design planning criteria for both new network elements (condition 14.1) and existing network elements (condition 14.2), through its Strategic Asset Management Plan. The relevant sections of this plan are Section Major projects program which details the strategy and plan to ensure compliance for all subtransmission network elements, including zone substations, and Section Distribution works program which details the strategy and plan to ensure compliance for all distribution network elements. The term transmission in this context is used to denote that part of Endeavour Energy s network upstream of the zone substation 11/22 kv feeders. Endeavour Energy s 2009 AER Network Determination submission included a capital program to achieve compliance with the design planning criteria by 30 June This capital program was endorsed by the AER without any material change to the proposed compliance related expenditure. In order to achieve compliance related target dates, in the years leading to 30 June 2014, Endeavour Energy implemented significant changes to its project delivery structure. Further information regarding this is contained in later sections of this document. 19 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

20 Licence Condition 18.1(b) - Progress to meet the standard for each class of network element The Figure 3.1 below indicates the number of network elements exceeding design planning licence condition criteria which have been addressed by projects since 1 July Figure 3.1 Constrained Elements addressed by projects The number of verified distribution feeders exceeding the criteria at the end of 2012/13 was 147. Progress on the licence conditions with regard to the feeders is further illustrated in Figure 3.2 below. A revised strategy for distribution transformer capacity upgrades based on temperature monitoring rather than MDI (Maximum Demand Indicator) readings was implemented. This means that distribution transformers are not replaced on loading criteria solely on the basis of MDI readings. As part of this strategy, rather than replace transformers immediately, temperature monitoring of distribution transformers is carried out when the load reaches 95% of the nameplate rating. Out of the number of distribution transformers that had their MDI readings taken since 30 June 2013, the number of distribution transformers with loads greater than 95% of the nameplate rating is NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

21 Licence condition 18.1(c) List of non-complying sub-transmission and zone substation elements at 1 July 2014 and 1 July 2019 Forecasts of future network limitations have been developed for the years beyond 2013/14. It is Endeavour Energy s intention to address in accordance with the prevailing organisational planning standards given that Schedule 1 of the licence conditions cease to apply after 2013/14. A forecast of non-compliant elements has not been carried out due to the repeal of Schedule 1 of the Licence Conditions. Future constrained network elements will be addressed by Endeavour Energy s normal process for capital project development and implementation and taking into account acceptable risk profiles and expected project delivery lead times. There were two non-compliant elements relating to Licence Condition 18.1(c) at 30 June These non-compliances relate to sub transmission lines (Feeders 686 tee Comalco and 688 tee Comalco which in previous years were referred to as Feeders 756 tee Comalco and 758 tee Comalco) supplying a single customer. The constraint is due to additional load drawn by the customer in 2013/14 which is expected to be matched in 2014/15. This increase was not predicted in earlier forecasts and is not consistent with historical demand for this customer. However, since the customer is due to cease operation beyond 2014/15, and since Schedule 1 has now been removed from the Licence Conditions, a project will not be raised to address this constraint. Licence condition 18.1(d) List of non-complying distribution feeder and substation elements Plans were developed to achieve a target of zero non-compliant elements for distribution feeders and substations by 30 June Figure 3.2 shows the planned profile of distribution feeders addressed each year to achieve this objective. The verified non-compliant feeders in the 2012/13 financial year were reviewed with regard to the extent of non-compliance, other initiatives that may have impacted on the feeders and whether a solution was required to address the non-compliance. Endeavour Energy has experienced a reduction in demand and this has had a downward impact on the number of overloaded feeders. As shown in Figure 3.2 below, a small number of feeders were over the compliance limit, against the back drop of declining demand Endeavour Energy considered it prudent to monitor these feeders and where appropriate address any demand issues in conjunction with existing projects as part of the current works program. Since Schedule 1 of the Licence Conditions has been repealed from 1 July 2014, the remaining noncompliant feeders will be assessed against internal planning standards. 21 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

22 Figure 3.2 Planned profile of distribution feeders addressed each year Licence condition 18.1(e) Other matters notified by the minister in writing There are no other matters formally notified by the Minister in writing. 22 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

23 3.3 Demand Management This report provides details on those Demand Management programs implemented or investigated within the 2013/14 year in order to meet the requirements of the Electricity Supply Act 1995, the Code of Practice Demand Management for Electricity Distributors (DM Code) and the National Electricity Rules (NER) chapter 5 Part B. The release of the DM Code created the need for Endeavour Energy to adopt internal policies and procedures to implement the Code s requirements. The amended chapter 5 of the NER, implemented on 1 January 2014, replaced the Code with an improved framework for investigating, evaluating and implementing non-network options. The new framework involves conducting a screening test to determine the feasibility of a non-network option. Where it is feasible a consultation process is to be implemented to solicit ideas and proposals from interested stakeholders for non-network options. This is to allow stakeholders to become more involved in the planning process and identifying cost-effective solutions to network constraints. Table 3.1 Demand Management Projects Implemented During 2013/14 Description of Demand Management Project Implemented Peak Demand Reduction (kva) PV of Costs of Demand Management Project PV of Total of Capital Expenditure Deferment plus Op Ex Savings Individual large projects Nil entry Sub-totals Consolidated projects Installation of PFC at customers premises 625 $77,800 $78,700 Sub-totals $77,800 $78,700 Totals $77,800 $78,700 Note: PFC refers to Power Factor Correction Listed below are the results of the non-network option screening tests conducted during the 2013/14 financial year. 23 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

24 Table 3.2 Demand Management Investigations in Current Year Found Non-Viable 1 Description of Potential Demand Management Project Investigated and Reason for Non-viability Feeders 851 & 852 Southern Nepean Feeders 851 and 852 supply the Southern Nepean area which supplies large industrial customer, residential townships and rural areas. The firm rating of the system is 60MVA. The electrical demand of the area is variable and heavily dependent on the level of generation exported into the grid. Using minimum generation levels for days above 30 degrees in summer the network exceeds its firm rating summer The planning process is to investigate non-network alternatives and implement demand management programs where cost effective. Discussions are being conducted with embedded generators in the area to develop load curtailment agreements in order to remove the network limitation and defer indefinitely the network constraint. Negotiations are progressing. PV of Costs of Investigations Costs captured within the normal operating expenditure of the business 2 Feeder 98P - Shoalhaven TS Feeder 98P supplies the Shoalhaven area which extends from Dapto to Moruya North. The predominant load type is residential and rural. The network constraint for this system is voltage drop when one network feeder is out of service. At the extremities of the 132kV system voltage drop exceeds 10% and voltage levels drop below allowable limits. The planning process is to investigate non-network alternatives and implement demand management programs where cost effective. Analysis has shown a demand reduction of 52 MVA is required to remove this constraint growing by 2.5 MVA per annum. Investigations identified a potential of 8 MVA of reduction which is insufficient to successfully defer or avoid the network constraint. Therefore, a demand management program will not be implemented at this stage. Costs captured within the normal operating expenditure of the business 3 Feeder 808 Springwood ZS Feeder 808 provides a back-up supply to Springwood ZS. The predominant load type is residential. This feeder has a capacity of 22 MVA with Springwood ZS peaking at 26.4MVA in summer. The planning process is to investigate non-network alternatives and implement demand management programs where cost effective. Analysis has shown that 2MVA can be transferred from Springwood ZS during emergency conditions. Demand on Springwood ZS has also been falling. Investigations identified that the capacity limitation has been deferred due to natural occurrences. Therefore, further non-network option investigations have been placed on hold and a watching brief will be maintained. Costs captured within the normal operating expenditure of the business 4 Marsden Park ZS There exists a new 15 Hectare industrial development precinct in the South Marsden Park area. The demand is forecast to grow by about 2 to 3 MVA per year with existing capacity being exceeded in summer 2015/16. The planning process is to investigate non-network alternatives and implement demand management programs where cost effective. As demand growth is caused by new development, the installation of network infrastructure cannot be avoided or deferred. Therefore, a demand management program will not be implemented at this stage. Costs captured within the normal operating expenditure of the business 24 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

25 5 Liverpool CBD The Liverpool CBD is supplied by 11kV feeder from Liverpool and Homepride ZSs. In total there are 18 x 11kV feeders out of which eight feeders are at or exceed their capacity limitation. There is also no further opportunity to transfer load to adjacent feeders. The issue is there is no capacity to supply to new development within the majority of the CBD and surrounding high density residential area. There are currently applications for new load connections. Analysis has shown that 2.1MVA reduction is required at Liverpool ZS and 1.7MVA reduction is required at Homepride ZS. Investigations identified that the potential demand reduction available on both ZSs is 1.1MVA.This falls short of the 3.8 MVA required. The difficulty with achieving the demand reduction is that it needs to be concentrated on only those affected 11kV feeders. There are limited major customers that can be approached in this confined area. Therefore, a demand management program will not be implemented at this stage. Costs captured within the normal operating expenditure of the business 25 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

26 4.0 Asset Management 4.1 Overview Endeavour Energy s network strategy articulates the future asset management priorities for the network business. The strategy aims to deliver the network business objective to provide long-term customer service by developing and operating a sustainable and reliable network by focussing on the following: Optimising network capacity, supply security and demand management Maintaining network reliability with a particular focus on improving reliability on those feeders that do not meet license conditions Addressing ageing network needs through targeted and strategic re-investment Improving customer value through more effective capital and operating investment. The implementation of the network strategy requires the implementation of business initiatives to the organisation s culture and people to maximise their impact on performance, improving processes and utilising technology to maximum effect. Expenditure to achieve the above objectives is developed through individually documented plans such as Transmission Network Planning Review (TNPR), Strategic Asset Renewal Plan (SARP), Network Maintenance Implementation Plan (NMIP), Reliability Works Program (RWP) and Demand Management Program. The Strategic Asset Management Plan (SAMP) is the key platform used to ensure that individual program expenditures are integrated to optimise network outcomes and customer value. 4.2 Technical Service Standards Endeavour Energy has published its technical service standards within Section 3.2 of its Customer Service Standards for Connection Customers (the Customer Service Standards), which has been prepared in accordance with the NSW Electricity Service Standards Code of Practice. The Customer Service Standards include descriptions of the power quality that customers can expect and the disturbances which occur on the network including changes in voltage levels, rapid voltage fluctuations resulting in flicker, voltage transients, voltage dips, waveform distortion (harmonics and inter-harmonics) and voltage unbalance. The Customer Service Standards refer to AS/NZS for harmonics and AS/NZS for voltage fluctuations. These documents require the Network Service Provider to establish planning levels. Endeavour Energy applies the planning levels published in the Standards Australia Handbook HB264 AS60038 standard voltages, which recommends that under normal service conditions, the voltage at the point of supply should not differ from the nominal voltage (for 230/400V systems) by more than +10%, -6%. The Customer Service Standards are consistent with the levels in AS60038, applying them at the point of common coupling. Impedance between the two points could result in customers experiencing wider voltage variations at the point of supply from the range of voltages stated in AS60038.A copy of the Customer Service Standards for Connection Customers can be downloaded from: tomer+service+standards/ 26 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

27 4.3 Quality of Supply Overview Quality of supply is the generic term that covers all aspects of supply quality. These range from complete supply interruptions (reliability), to supply disturbances (power quality) through to customer service. Primary power quality indices are: PQ Disturbance Primary Index Description Meaning Voltage AVDI Absolute Voltage Deviation Index A measure of spread of voltage around the middle of the nominal range Unbalance VUFI Voltage Unbalance Factor The 95 th percentile level of measured or calculated unbalance at a site Harmonics THDI Total Harmonic Distortion Index The maximum of the three (one for each phase) 95 th percentile THD levels at a site Sags Sag SAIFI Sag SAIFI Index A measure of customer mal-operation or the impact of sags on customer equipment over the survey period Portable survey instruments are used to collect data at targeted sites for specific purposes. Data from permanent power quality monitors and from revenue meters is used in the National Long Term Power Quality Survey. The data enables calculation of the primary power quality indices. Permanent power quality monitors are installed in 81 zone substations, 16 transmission substations, and 2 switching stations. There are 64 revenue meters with power quality features enabled which are used to provide survey data Performance Data The National Power Quality Survey ranked Endeavour Energy s performance against other participating utilities, and ranked the performance of each site against the others. Performance for LV and MV sites were ranked separately. The number of sites at this stage is small so it remains difficult to assess performance across the whole network. However some trends have been shown in the following graphs. Figures 4.1, 4.2 and 4.3 show the trends in steady state voltage (AVD), voltage spread, unbalance (VUF), harmonics (THD) and sags as measured at several low voltage sites. This allows Endeavour Energy to develop an understanding of the relative severity of different types of supply quality issues. Similarly, the following sequence from figure 4.4 shows the trends in unbalance (VUF), harmonics (THD) and sags which have been observed at medium voltage locations. 27 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

28 Figure 4.1 Low Voltage Sites Steady State Voltage Figure 4.2 Low Voltage Sites Unbalance Figure 4.3 Low Voltage Sites Harmonics 28 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

29 Figure 4.4 Low Voltage Sites Sags Note: Sag SAIFI assesses voltage sag performance of the network and compares impacts of voltage sags with reliability interruptions. Figure 4.5 Medium Voltage Sites Voltage (Spread) 29 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

30 Figure 4.6 Medium Voltage Sites Unbalance (VUF) 30 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

31 Figure 4.7 Medium Voltage Sites Harmonics (THD) Figure 4.8 Medium Voltage Sites SAGS 31 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

32 The relatively high LV steady state voltage and unbalance can be attributed to the weak sites which have been included in the survey over recent years, and have affected the last five years results. The addition of weak sites provides a more representative cross section of types of sites. MV and LV harmonics have not changed significantly. However harmonic levels are being watched closely as the proportion of potentially distorting loads on the network continues to rise, due mostly to electronic devices being added to the network. Voltage sags have not changed significantly from the previous year and the results do not raise any significant concerns at either low or medium voltage levels. Endeavour Energy has conducted numerous 1-week surveys of power quality on medium voltage sites throughout the network. These surveys were conducted where a significant change in load or network topology was anticipated, or in response to customer complaints. In the case of customer complaints the data was used to assist in their resolution. The data also provides an indication of power quality at a significant number of sites throughout the network. Data from these surveys is stored for future reference and application in relevant cases. The approach taken was the same as that used in the previous year. As the 1-week survey sites are selected for reasons of specific interest they do not make up a representative sample. Therefore, no statistical analysis or comparison of data between years has been carried out for this data. Quality of supply complaints are categorised and reported in Section 2 of this ENPR. 32 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

33 4.4 Distribution Reliability Overview SAIDI has improved from 126 minutes in to 83 minutes by the end of June This means Endeavour Energy s network is among the most reliable in Australia Events that had a significant impact on our overall reliability result included: 46 interruptions to the sub-transmission network (zone substations, sub transmission substations and sub-transmission feeders) these interruptions contributed approximately 7.1 minutes of SAIDI, mainly due to adverse weather, defective equipment and interference on the lines. 2,092 interruptions to the distribution network (distribution feeder and distribution substation) which contributed 70.4 minutes of SAIDI, mainly due to defective equipment, adverse weather, interference on the lines and tree contact 1,894 interruptions to the low voltage network (low voltage output of distribution substation and below) which contributed 5.2 minutes of SAIDI, mainly due to defective equipment and interference on the lines. Climate conditions continue to be a major factor in the overall reliability outcome with record mild and warm weather conditions over autumn and early winter. This resulted in a decrease in the number of days where SAIDI was above 1 minute (nominally 40% of the Major Event exclusion threshold), compared to last year. These days are typically associated with adverse weather conditions that are not severe enough to be excluded as Major Events. The chart below demonstrates that there is a direct relationship between these days and the overall SAIDI performance of the network. Figure 4.9 Endeavour Energy SAIDI Performance (minutes) Cumulative High SAIDI No. days High SAIDI Endeavour Energy annual SAIDI Note: Up until (and including) 2012/13 the calculation for SAIDI was based on methodology outlined in the NSW Licence Conditions for Electricity distributors. From 2013/14 the AER methodology has been employed. 33 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014

34 4.4.2 Organisational Performance (Normalised) Trend Table 4.1 Organisational Performance Trends (Normalised) Organisational Performance Trends (Normalised) Previous Years Current Year Year 2009/ / / / /14 SAIDI (minutes) SAIFI Table 4.1 data is shown in the form of a bar graph for SAIDI and a bar graph for SAIFI below: Figure 4.10 SAIDI Trends Figure 4.11 SAIFI Trends 34 NSW Department of Trade and Investment, Regional Infrastructure and Services, November 2014