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Asset Management Plan 2019-2029

MainPower is an electricity distribution business that owns and maintains the electricity network in North Canterbury, New Zealand. This Asset Management Plan outlines MainPower's strategic focus on strengthening its core business for the future and creating new opportunities. It describes MainPower's accountability and responsibilities for asset management, and how it engages with stakeholders and considers their interests. The plan ensures the network supports MainPower's customer-centric approach and vision of providing a sustainable electricity supply.
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0% found this document useful (0 votes)
128 views174 pages

Asset Management Plan 2019-2029

MainPower is an electricity distribution business that owns and maintains the electricity network in North Canterbury, New Zealand. This Asset Management Plan outlines MainPower's strategic focus on strengthening its core business for the future and creating new opportunities. It describes MainPower's accountability and responsibilities for asset management, and how it engages with stakeholders and considers their interests. The plan ensures the network supports MainPower's customer-centric approach and vision of providing a sustainable electricity supply.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 174

ASSET

MANAGEMENT
PLAN
2019-2029
Asset Management Plan
2019 – 2029

Section 1 – Summary
MainPower New Zealand Limited Section 1 Summary

Summary

MainPower New Zealand Limited (MainPower) is a consumer trust owned Electricity Distribution Business (EDB) that builds,
owns, operates and maintains the electricity distribution network in the North Canterbury region - providing distribution
services to over 40,000 residential and business connections and delivering electricity to a population base of around
65,000 people.
MainPower is committed to contributing towards a bright future for our region by delivering an electricity distribution
network that is ready for the future. Our vision is to provide safe, secure and sustainable services for current and future
generations.
MainPower has undertaken a strategic review of its business within the 2018-2019 reporting period. A key outcome of this
review included the development of a mission statement that reflects our corporate intent and demonstrates a clear link
between our corporate goals, the direction our business is taking and asset management. It is our mission to partner in our
customers’ energy future and we have two key pillars of strategic intent, namely;
 Strengthening our core business for the future; and
 Creating new opportunities.
‘Strengthening our core business for the future’ means that asset management, our core business, is fully aligned with our
corporate goals. It also means that our business objectives and network performance is delivering what our customers are
telling us they want, while ensuring that the network is ready for a ‘new energy future’, including operational readiness and
effectiveness.
‘Creating new opportunities’ recognises that, in a new energy future, services beyond that of a typical electricity
distribution network will present other opportunities that are possibly non-regulated, leveraging off our core business.
Strategically, it is expected that such services will be that of a Distribution Energy Resource Management system (DERMs).
The intention of the Asset Management Plan is to deliver a document that is clear and easy to read by a wide audience. It
provides the context to our approach to asset management. This plan ensures network performance improves on our
customer experience and works towards creating a network for the future, whilst balancing the needs of our customers, our
community and other stakeholders.
Our strategic focus for the past year has been to embed a customer-centric approach within our business, having completed
the implementation of an integrated Customer Relationship Management (CRM) solution. Our CRM solution has allowed us
to create a better understanding of who our customers are and better manage interactions with our customers, thereby
supporting the evolving needs of our customers and the business.
MainPower’s customer-centric approach reflects the changing New Zealand electricity sector that is experiencing significant
transformation, driven by new energy technologies, the movement to a low carbon footprint and changing customer
behaviour. The challenge for MainPower is determining prudent investment in core infrastructure to achieve acceptable
levels of service for the communities we serve, while providing fair pricing of our services. This is widely referred to as
balancing the “energy trilemma” – delivering an energy supply that is secure and equitable (affordable and accessible) while
remaining sustainable.
MainPower continues to invest to ensure that we achieve our strategic vision. This year MainPower embarked on two key
business improvement initiatives:
• Updating our Enterprise Resource Planning (ERP) tool (TechnologyOne OneEnergy solution) that we use for
financial, supply chain, asset and people management. The core objective is to improve the implementation of our
asset fleet strategies ensuring that we do what we say we do to every asset, and, when performing maintenance
activities, that we collect data that will inform our approach to Strategic Asset Management in order to further
enhance our ability to address performance, cost and risk in the future.
• MainPower’s Board has approved the implementation of an Advanced Distribution Management System (ADMS)
that will integrate into our Network Operations. The ADMS comprises an Outage Management System (OMS), a
new Supervisory Control and Data Acquisition (SCADA) system and a Distribution Management System (DMS). This
is a transformational project that signals MainPower’s intention to ensure that its network will be able to meet the
demands of a new energy future, influenced by the decarbonisation of the economy.
Furthermore, and in response to this changing landscape, MainPower continues to review its approach to business. This
year we have once again taken a fresh look at our asset management systems, processes and practices, not only assessing

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MainPower New Zealand Limited Section 1 Summary

our asset management maturity using the Commerce Commission’s Asset Management Maturity Assessment Tool
(AMMAT), but also assessing the maturity of the organisation against the international ISO55001 standard via independent
evaluation.
While evaluating our business against ISO55001 we concluded that, as a business, we had to enhance our approach to asset
management not simply from the network perspective, but also as an organisation with a focus on our assets and our
people. The fact that MainPower is already accredited to the internationally accepted ISO9001 standard makes the journey
to ISO55001 less complex and arduous than might otherwise have been expected.
MainPower recognises that that the way in which the distribution network will be used in the future, and the services
customers will require from the network, will be influenced by changing customer behaviours, new technologies and a
national transition to a low carbon economy. Network development policies and procedures take account of this new
trajectory and recognise the need to move from the traditional distribution network approach of demand-based planning to
a scenario-based planning approach. This work remains a key focus of MainPower’s work for the planning period ahead.

Asset Management Plan 2019-2029 Page 3 of 3


Asset Management Plan
2019 – 2029

Section 2 – Background and Objectives


This section outlines the scope, purpose and strategic alignment of this Asset Management Plan which covers MainPower’s
distribution network and associated systems that deliver energy to our customers in the Waimakariri, Hurunui and Kaikoura
districts.
MainPower New Zealand Limited Section 2 Background and Objectives

Contents
2. Background and Objective ....................................................................................................... 5
Purpose and Alignment to Corporate Objectives ...................................................................... 5
2.1.1 Purpose of the AMP ....................................................................................................................................................5
2.1.2 Strategic Alignment .....................................................................................................................................................5
2.1.3 Strengthening our Core Business ................................................................................................................................5
2.1.4 Creating New Opportunities .......................................................................................................................................6
2.1.5 Business Planning ........................................................................................................................................................7
2.1.6 Relationship of Management Plans ............................................................................................................................7
2.1.7 Business Objectives .....................................................................................................................................................8
Stakeholder Interests ............................................................................................................... 8
2.2.1 Stakeholder Engagement ............................................................................................................................................8
2.2.2 Summarising the Interests of Our Stakeholders .........................................................................................................9
2.2.3 Translating Stakeholder Interests into Asset Management ......................................................................................10
2.2.4 Managing Stakeholder Interests when they Conflict ................................................................................................11
Accountabilities and Responsibilities for Asset Management.................................................. 11
2.3.1 Ownership .................................................................................................................................................................11
2.3.2 Governance ...............................................................................................................................................................11
2.3.3 Management .............................................................................................................................................................12
2.3.4 Field Services .............................................................................................................................................................13
Assumptions Made ................................................................................................................ 13
2.4.1 Significant Assumptions Made ..................................................................................................................................13
2.4.2 Sources of Information ..............................................................................................................................................14
2.4.3 Forecasting Certainty ................................................................................................................................................14
2.4.4 Escalation Index.........................................................................................................................................................14
2.4.5 Sources of Uncertainty ..............................................................................................................................................15
Asset Management Strategy and Delivery .............................................................................. 15
2.5.1 Asset Management Policy .........................................................................................................................................15
2.5.2 Asset Lifecycle Framework ........................................................................................................................................16
2.5.3 Strategic Asset management ....................................................................................................................................16
2.5.4 Asset Management Structure ...................................................................................................................................17
2.5.5 Asset Lifecycle ...........................................................................................................................................................18
Information Systems and Asset Data ...................................................................................... 19
2.6.1 Computerised Maintenance Management System...................................................................................................19
2.6.2 Asset Data .................................................................................................................................................................20
Limitation of Asset Data and Improvements ........................................................................... 20

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MainPower New Zealand Limited Section 2 Background and Objectives

Planning and Maintenance Processes ..................................................................................... 20


2.8.1 Network Planning ......................................................................................................................................................20
2.8.2 Maintenance Processes.............................................................................................................................................21
2.8.3 Measuring Network Performance .............................................................................................................................22
Documentation and Controls ................................................................................................. 22
2.9.1 Asset Management Documentation .........................................................................................................................22
2.9.2 Document Management and Review ........................................................................................................................23
2.9.3 Outsourcing ...............................................................................................................................................................23
Communication and Participation .......................................................................................... 23

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MainPower New Zealand Limited Section 2 Background and Objectives

List of Tables
Table 1 Business Objectives .........................................................................................................................................................8
Table 2 How we identify the expectations of our stakeholders...................................................................................................9
Table 3 What our stakeholders expect from us .........................................................................................................................10
Table 4 Planning Certainty .........................................................................................................................................................14
Table 5 Escalation Index based on Westpac Inflation Index ......................................................................................................14
Table 6 Asset Management Policies ...........................................................................................................................................17
Table 7 Reporting Asset Management Plans and Outcomes .....................................................................................................23

List of Figures
Figure 1 Strengthening Our Core Business ...................................................................................................................................5
Figure 2 New Energy Future .........................................................................................................................................................6
Figure 3 Creating New Opportunities ..........................................................................................................................................6
Figure 4 Aligning Lifecycle Planning to Strategy...........................................................................................................................7
Figure 5 Asset Management Planning Documents ......................................................................................................................7
Figure 6 Our Stakeholder Groups .................................................................................................................................................8
Figure 7 Senior Leadership Team Structure ...............................................................................................................................11
Figure 8 Asset Management Team (Network) Structure ...........................................................................................................12
Figure 9 Project Services Workflow ...........................................................................................................................................13
Figure 10 Routine Services Workflow ........................................................................................................................................13
Figure 11 Asset Management Policy ..........................................................................................................................................15
Figure 12 Strategic Asset Management .....................................................................................................................................16
Figure 13 Asset Management Structure ....................................................................................................................................17
Figure 14 Asset Lifecycle Planning .............................................................................................................................................18
Figure 15 Asset Renewal ............................................................................................................................................................19
Figure 16 OneAsset System ........................................................................................................................................................19
Figure 17 Asset Management Workflow Process ......................................................................................................................21
Figure 18 Asset Management Documentation ..........................................................................................................................22

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MainPower New Zealand Limited Section 2 Background and Objectives

2. Background and Objective


This Asset Management Plan (AMP) covers a ten-year planning period, from 1 April 2019 to 31 March 2029 and was
approved by the Board of Directors at the 21 March 2019 meeting.
The AMP provides our customers and stakeholders with insight and explanation as to how we provide electricity
distribution services to our customers in a safe, reliable, economically efficient and sustainable manner that meets the
expectations of both customers and stakeholders over the next ten years.

Purpose and Alignment to Corporate Objectives


2.1.1 Purpose of the AMP
The AMP is a planning document that provides information on asset management systems, processes and practices with a
specific focus on the development, maintenance and replacement plans for our electricity distribution network assets that
enables MainPower to understand cost, risk and network performance in accordance with stakeholders’ requirements.
In addition, the information within the AMP informs our annual business and financial planning, ensuring that sufficient
resources are directed to deliver the identified asset management needs consistent with our overall corporate objectives.
The AMP also demonstrates our alignment with best practice asset management processes. The content and structure
serve to achieve compliance with the Commerce Act information disclosure requirements for electricity lines services.

2.1.2 Strategic Alignment


MainPower’s vision is to provide safe, secure and sustainable services for current and future generations. It is our mission to
partner in our customers’ energy future and we have two key pillars of strategic intent, namely;
 Strengthening our core business for the future; and
 Creating new opportunities.

2.1.3 Strengthening our Core Business


‘Strengthening our core business for the future’ means that asset management, our core business, is fully aligned with our
corporate goals. It also means that our business objectives and the performance of the network is delivering what our
customers are telling us they want, while ensuring that the network is ready for a ‘new energy future’ including operational
readiness and effectiveness
 Strategic Asset Management and Operational Excellence
Develop and improve our asset management and operational practices ensuring MainPower is an
effective and efficient asset management organisation that delivers value to the business, our
customers and shareholders achieving ISO55001 compliance.

Figure 1 Strengthening Our Core Business

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MainPower New Zealand Limited Section 2 Background and Objectives

 Evolution to the network of the future


 Continue to maintain and build on the value in our assets and services including the implementation of
an Advanced Distribution Management System;
 Collaboration with other Electricity Distribution Businesses (EDBs), delivering common architecture,
access and competency – minimising risk across regions and developing regional resilience;
 Transition from a Distribution Network Provider (DNP) to a Distribution System Integrator (DSI)
offering an open architecture framework so that customers can engage with other market participants
enabling them to extract full value from their Distributed Energy Resources (DER); and
 Ensure that our operating systems and process can offer Distribution System Operator (DSO) services
in the future.

Figure 2 New Energy Future

2.1.4 Creating New Opportunities


‘Creating new opportunities’ - recognises that in a ‘new energy future’, services beyond that of a typical Electricity
Distribution Business (EDB) will present other opportunities. Currently it is anticipated that such services will be aligned
with that of a Distribution Energy Resource Management system (DERMs).
Distribution Energy Resource Management system
 Enable internal expertise and systems that provide a platform of Asset Management and Operational
Excellence delivering solutions that allow MainPower to ‘partner in our customer’s energy future’;
 Outage management and first response; and
 Deliver a complete ‘Plan Build Operate’ approach to our customer energy systems.

Figure 3 Creating New Opportunities

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MainPower New Zealand Limited Section 2 Background and Objectives

2.1.5 Business Planning


A key focus of MainPower’s approach to asset management is how we link our everyday asset management decisions and
activities to our corporate objectives. This provides line-of-sight from our corporate objectives (informed by our Asset
Management Plan) through our lifecycle strategies for individual asset classes to our everyday maintenance activities. Our
approach to aligning lifecycle planning to corporate objectives is outlined in the figure below.

Figure 4 Aligning Lifecycle Planning to Strategy

2.1.6 Relationship of Management Plans

Figure 5 Asset Management Planning Documents

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MainPower New Zealand Limited Section 2 Background and Objectives

2.1.7 Business Objectives

Table 1 Business Objectives

Stakeholder Interests
Defining and understanding the needs and desires of our stakeholder groups allows us to structure our strategic objectives
and define service levels in a way that is meaningful and relevant. We have the following groups.

OTHER STAKEHOLDERS
CONNECTED CUSTOMERS Customers with an interest PARTNERS
COMMUNITY in the operation of our Participants in the electricity
Recipients of our services People within the organisation including supply chain that help meet
including residential, small-to- distribution area that are MainPower Trust, our connected customers’
medium business, large users, affected by our network Government and needs, including Transpower,
rural (farming) and individually either in use or during regulators, representative electricity retailers, other
managed customers. Connected installation and groups, regional councils, distributors, electrical
customers are also preference maintenance. contractors/suppliers, contractors, and alternative
shareholders. property developers, and technology providers.
the media.

Figure 6 Our Stakeholder Groups

2.2.1 Stakeholder Engagement


We identify the expectations and requirements of our stakeholders through a wide range of engagement activities,
including consultation, correspondence and online feedback via our website. Our other methods of identification are
summarised in the table below.
STAKEHOLDER HOW WE IDENTIFY THE EXPECTATIONS AND REQUIREMENTS OF STAKEHOLDERS
All Stakeholders Consultation and correspondence
Connected Customers Customer account managers
Customer discussion groups
Customer research (quantitative and qualitative methods)
Direct current feedback/interactions
Events (including Annual Meeting)
Informal contact/discussions
Open days
Public meetings and information sessions
Submissions on discussion papers
Community, Representative Groups Direct current feedback/interactions
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MainPower New Zealand Limited Section 2 Background and Objectives

STAKEHOLDER HOW WE IDENTIFY THE EXPECTATIONS AND REQUIREMENTS OF STAKEHOLDERS


Forums and working groups
One-on-one meetings
Open days
Submissions on discussion papers
MainPower Trust Direct current feedback/interactions
(Ordinary Shareholder) Events (including Annual Meeting)
Operational interface
Other engagement activities
Government Disclosure requirements
Submissions on discussion papers
Regulators Adherence to corporate policies
Disclosure requirements
Operational interface
Regional Government Disclosure requirements
Contractors and Suppliers Direct current feedback/interactions
One-on-one meetings
Media Briefing sessions
Forums and working groups
Media monitoring and editorial opportunities
Open days
Public meetings and information sessions
Sponsorship involvement
Transpower Operational interface
Submissions on discussion papers
Electricity Retailers Direct current feedback/interactions
Industry collaboration
Informal contact/discussions
One-on-one meetings
Open days
Public meetings and information sessions
Electricity Industry Forums and working groups
Informal contact/discussions
One-on-one meetings
Open days
Participation in industry (including membership)
Public meetings and information sessions
Submissions on discussion papers
Table 2 How we identify the expectations of our stakeholders

2.2.2 Summarising the Interests of Our Stakeholders


The expectations of our stakeholders are summarised in the table below.
STAKEHOLDER EXPECTATIONS
Connected Customers Accessibility – easy to contact my provider, if needed
Consistency of service delivery (including response time)
Continuity of supply – keeping the power on
Future innovation
Health, safety and environment
Price – keeping costs down
Quality – keeping flickering or dimming lights to a minimum
Restoration of supply – reducing length of time when power is off
Transparent communication (including outage information)
Community, Representative Groups Community focus
Corporate social responsibility
Engagement and consultation
Public safety around electricity

Other Stakeholders
MainPower Trust Delivery of a secure and reliable power supply
(Ordinary Shareholder) Effective and efficient incident response
Future innovation
Health, safety and environment
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MainPower New Zealand Limited Section 2 Background and Objectives

STAKEHOLDER EXPECTATIONS
Maintaining shareholder value
Prudent risk management
Statutory/regulatory compliance
Government Appropriate investment in infrastructure
Delivery of a secure and reliable power supply
Future innovation
Health, safety and environment
Industry collaboration
Regulators Contribution via industry consultations/submissions
Cost-reflective pricing methodology
Delivery of a secure and reliable power supply
Health, safety and environment
Future innovation
Statutory/regulatory compliance
Regional Government Appropriate investment in infrastructure
Collaboration on shared service upgrades
Contribute towards a vibrant and prosperous region
Contribution to planning via consultations/submissions
Delivery of a secure and reliable power supply
Engagement and consultation
Health, safety and environment
Future innovation
Contractors and Suppliers Effective contractor management
Health, safety and environment
Media Effective relationship management
Timely access to information

Partners
Transpower Appropriate investment in infrastructure
Collaboration and effective relationship management
Engagement and consultation
Health, safety and environment
Transparent communication (including outage information)
Electricity Retailers Continuity and security of supply
Effective systems and processes
Health, safety and environment
Transparent communication (including outage information)
Electricity Industry Collaboration
Future innovation
Health, safety and environment
Industry participation
Information and knowledge sharing
Bankers and Insurers Accurate and timely performance information
Confidence in Board and leadership
Good governance
Prudent risk management
Sufficient revenue to maintain asset efficiency and reliability
Table 3 What our stakeholders expect from us

2.2.3 Translating Stakeholder Interests into Asset Management


We meet the expectations of our stakeholders through our approach to asset management. The statements below describe
how we meet those expectations. The first set of statements is focused mainly on customers and the public.
 We ensure that staff, contractors and the public are able to move around and work on our electricity distribution
network in total safety.
 We meet customer expectations regarding service levels, and, importantly, meet our customers’ needs for fair
pricing commensurate with our service levels.
 We understand that continuity and restoration of supply is essential to minimise interruptions to customers.
 We ensure customers have positive experiences with their interactions with MainPower.
 We comply with many statutory requirements ranging from safety to required regulatory disclosures.

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MainPower New Zealand Limited Section 2 Background and Objectives

The statements below describe other ways we meet those expectations.


 We actively identify key risks and seek to mitigate them where economically and practically possible.
 We use effective contingency planning.
 We maintain our security of supply standards across the network.
 We are efficient and effective in our network operations and planning.
 We provide timely and accurate information.
 We ensure sufficient revenue to maintain asset efficiency and reliability.
 We are innovative and drive continual improvements in our operations.
 We assess the performance of our network against what our customers are telling us they want.

2.2.4 Managing Stakeholder Interests when they Conflict


Where stakeholder conflicts arise, the priorities for managing the conflicts are ranked in the following order:
1. Safety
2. Compliance
3. Service quality
4. Risk management
5. Efficiency and effectiveness

Accountabilities and Responsibilities for Asset Management


2.3.1 Ownership
We are a closely held shareholder structure with all the shares held by the MainPower Trust. The MainPower Trust holds
shares in the Company on behalf of connected electricity customers, who are both the income and capital beneficiaries of
the Trust.
The Trust appoints the MainPower Board of Directors and agrees the Statement of Corporate Intent. The Trust also
provides input on behalf of their beneficiaries on matters of relevance to asset management planning such as price, quality
and performance.
The trust also requires MainPower to trend its performance against a selected sample of other EDBs in terms of profits,
price, expenditure and network reliability.

2.3.2 Governance
MainPower currently has 6 non-executive Directors who collectively comprise the Board of Directors. The Board is
accountable to the Trust.
The Board of Directors is responsible for the corporate governance of MainPower. The Board delegates the day-to-day
responsibility for the operation and administration of MainPower to the Chief Executive (CE). Directors also approve the
AMP, business plan and budget. Financial approvals that exceed the delegated authority of the CE require Board approval
i.e. large investment proposals.
The MainPower Senior Leadership Team structure is provided below.

Figure 7 Senior Leadership Team Structure

The Chief Executive of MainPower is accountable to the Board through an employment agreement, which includes
performance criteria.
The Asset Management Plan serves to communicate to the Board the business’s approach to asset management. Corporate
objectives, expenditure, network and asset management performance is reported to the Board monthly.

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MainPower New Zealand Limited Section 2 Background and Objectives

As MainPower transforms its network for a new energy future, it has also set up a Strategic Asset Management steering
group. The group includes a Board Director, the CE and the General Manager Network. The purpose of the steering group is
to oversee the enhancement of asset management at MainPower in accordance with our corporate objectives, taking into
consideration a changing energy sector. The group has met as required to date but intends to meet quarterly in this
reporting cycle.

2.3.3 Management
The Network team has accountability for asset management and overall network performance. The Network team is
structured on a ‘Plan, Build, Operate’ basis.

Figure 8 Asset Management Team (Network) Structure

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MainPower New Zealand Limited Section 2 Background and Objectives

2.3.4 Field Services


MainPower has implemented a Field Services Agreement (FSA) that describes how maintenance and construction activities
are to be issued by the Network team and completed by the Operations team. In most instances it is the responsibility of
the General Manager Operations to deliver the maintenance and construction activities. Where the Operations team has
the capability but not the capacity to complete the maintenance and construction activities, the Operations team will
contract out the works to a third party.
All field works are governed by rate cards. The rate cards detail the services required and the standard to which the services
will be delivered including market costs to deliver the works.
The works streams described in the Field Services Agreement are:
 Project services; and
 Routine services.

Figure 9 Project Services Workflow

Figure 10 Routine Services Workflow

Assumptions Made
2.4.1 Significant Assumptions Made
The following assumptions have been made in the preparation of the AMP.
 Residential subdivision activity will continue or plateau and possibly reduce, over the planning period.
 Major industrial plants will maintain similar kW and kWh demand for the next five years.

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MainPower New Zealand Limited Section 2 Background and Objectives

 It is possible that a significant renewable energy project (Mt Cass) may obtain approval to proceed
within the next reporting cycle. The requirements to connect Mt Cass to the grid is not documented in
this AMP.
 Small grid connected Distributed Generation (DG) will increase throughout the planning period,
impacting financial growth but not causing significant network constraints.
 Existing external regulatory and legislative requirements are assumed to remain unchanged
throughout the planning period.
 All projections of expenditure are presented in constant terms (as at 01 April 2019, without inflation).
 Transpower continues to provide sufficient capacity to meet MainPower’s requirements at the existing
GXPs and undertakes additional investment required to meet future demand, as specified in the
development plan.
 MainPower’s existing corporate vision and strategic objectives continue for the planning period.
 Neither MainPower’s network nor the local transmission grid is exposed to a major natural disaster
during the planning period.
 Our network is exposed to climatic (temperature, wind, snow and rain) variation over the planning
period, consistent with our experience since 2000.
 Seasonal load profiles remain consistent with recent historical trends.
 Zoning for land use purposes remains unchanged during the planning period.
 Electric vehicle charging loads are not likely to significantly impact network constraints within the
planning period.

2.4.2 Sources of Information


The principal sources of information relevant to this AMP are listed below.
 MainPower’s strategic planning documents including the Statement of Corporate Intent and the
Annual Business Plan and Budget
 MainPower’s Asset Management Policy
 MainPower’s Business Continuity Plan
 Ongoing customer surveys
 Maximum electricity demand at each GXP
 Regional population data and forecasts sourced from Statistics New Zealand and the Waimakariri,
Hurunui and Kaikoura District Councils
 Interaction with customers and the community in relation to possible future developments within the
network region

2.4.3 Forecasting Certainty


We have assessed the level of certainty of forecasts relevant to different customer groups within our AMP planning period
as follows:
Timeframe Location Constraint Proposed Remedy
Year 1 Reasonable certainty Reasonable certainty Reasonable certainty
Year 2 - 3 Some certainty Reasonable certainty Reasonable certainty
Year 4 - 6 Some certainty Little if any certainty Some certainty
Year 7 -10 Some certainty Little if any certainty None
Table 4 Planning Certainty

2.4.4 Escalation Index


Our input prices are subject to a range of cost pressures including those which apply to skilled and unskilled labour, material
components (such as copper, aluminum, steel), the NZD exchange rates, and other inputs such as fuel. We have applied the
Westpac Economics Forecast Summary Spreadsheet values for the purpose of converting our constant price forecasts to
nominal terms as given in the table below.
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Index 1 1 1.015 1.018 1.016 1.017 1.019 1.019 1.019 1.019
Table 5 Escalation Index based on Westpac Inflation Index

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MainPower New Zealand Limited Section 2 Background and Objectives

2.4.5 Sources of Uncertainty


MainPower considers that the following factors could lead to material differences in actual versus planned. However, as this
plan is updated annually, it is expected that any differences would exhibit as a linear (i.e. not a step) change and would be
anticipated in advance.
Changes in demand factors most significantly impact future development plans. Higher than forecast growth brings forward
the need for investments in additional capacity, security or reliability or increased load management, while lower than
expected growth allows them to be deferred (in some cases). Uncertainties within our demand assumptions include:
 The rate of growth in demand could significantly accelerate or decelerate within the planning period.
 Dry/wet years that impact irrigation demand.
 Significant land zoning changes may be implemented within the region.
 Significant new loads may require supply.
 Large existing loads may reduce or cease demand.
 Customers could change their requirements for reliability and/or their willingness to pay for
higher/lower levels of service.
Changes in operational factors may require us to reprioritise or reallocate our planned OPEX in the short term and increase
or decrease OPEX or renewals allowances in the medium term. Changes may include:
 The network could experience major natural disasters such as an earthquake, flood, tsunami or
extreme storms.
 Significant storm events that divert resources from scheduled maintenance.
 Regulatory requirements may change, requiring MainPower to achieve different service standards,
health and safety standards, or design or security standards.

Asset Management Strategy and Delivery


Due to the long-lived nature of our assets, the ‘new energy future’ and the dependency that our customers, the community
and economy has on our assets, MainPower’s approach to lifecycle management of our assets is based on risk, cost and
overall performance of the assets. MainPower’s asset management policy describes MainPower’s commitment to asset
management.

2.5.1 Asset Management Policy

Figure 11 Asset Management Policy

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MainPower New Zealand Limited Section 2 Background and Objectives

2.5.2 Asset Lifecycle Framework


MainPower needs to ensure that its network is ready for the future as New Zealand prepares for a zero-carbon economy,
the onset of new technologies and multiway energy flow while fully we continue to understand and balance cost, risk and
performance.
Within the last reporting period MainPower has taken a fresh look at our asset management systems, processes and
practices both through internal and external audit. Both audits identified gaps between current state and where we want to
be in terms of asset management maturity in the future.
In the last AMP it was noted that MainPower embarked on the critical review of our asset management system, processes
and practices. A key part of assessing our level of maturity was the use of the Commerce Commission’s Asset Management
Maturity Tool (AMMAT).
This year MainPower completed a review and assessed the whole organisation against ISO55001. One of MainPower’s
strategic themes is ‘strategic asset management and operational excellence’ with a business objective of achieving
ISO55001 compliance, taking into consideration:
 ‘New energy future’ and delivering a ‘network for the future’;
 Providing a strategic approach to asset management balancing cost, risk and performance; and
 MainPower’s accreditation to ISO9001.
MainPower has decided to achieve compliance with ISO55001.

2.5.3 Strategic Asset management


Asset Management at MainPower causes MainPower to understand risk, cost and performance across its asset fleet over
the lifetime of the assets.

The system also needs to be able take into consideration differing resourcing constraints that occur from time to time and
to be able to clearly articulate to the business the risks impact the constraints will have across the asset fleet.

To fully achieve this across the life of the asset requires MainPower to implement Strategic Asset Management within its
ERP system (OneEnergy).

Figure 12 Strategic Asset Management

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MainPower New Zealand Limited Section 2 Background and Objectives

2.5.4 Asset Management Structure


The structure of MainPower’s asset management system is based on the IIMM (International Infrastructure Management
Manual) which defines 18 processes of asset management, grouped into three main categories. The relationship between
these categories is shown in the flowchart below, it includes a summary of the associated documents that support the
framework. The process is based on a continuous improvement cycle.

Figure 13 Asset Management Structure

ASSET MANAGEMENT Policies


Develop the Asset Management Policy MainPower has an Asset Management Policy
Define Levels of Service and Performance Defined in this Asset Management Plan (Section 2)
Forecast Future Demand Regional Master Plans are being developed as described in Section 5 of this Asset
Management Plan
Understand the Asset Base (Asset Register) Entered and maintained within MainPower’s Enterprise Resource Planning (ERP) tool
(TechnologyOne)
Assess Asset Condition Completed and updated through general maintenance. Maintenance requirements are
documented in Asset Class Maintenance Plans that are implemented in the ERP as
schedules against assets.
Identify Asset and Business Risk Detailed in Section 7 of the Asset Management Plan, risk assessment as completed by
Business Function, Activity, Plant and Equipment including network operability risk
when assessed against adverse events
Financial and Funding Strategies Ongoing and form part of the pricing review project currently in progress
Capital Investment Strategies Part of the Maintenance Strategies, Asset Condition and Criticality assesses renewals
and forecasts budgets. The Capital Sanctioning process as part of the Project Delivery
System (PDS) ensures funding is allocated in accordance with strategy, service delivery
and business planning.
Maintenance Strategies and Plans Maintenance strategies exist for all assets, detailing maintenance requirements to
achieve customer service levels and business outcomes. Maintenance strategies are
implemented in the Computerised Maintenance Management System (CMMS).
Operational Strategies and Plan All Operational Activities are risk assessed and, where the risk appetite of MainPower is
exceeded, ‘Safe Operating’ procedures are developed. Other operational planning
takes into consideration Incident Reponses and emergency preparedness.
Table 6 Asset Management Policies

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MainPower New Zealand Limited Section 2 Background and Objectives

2.5.5 Asset Lifecycle


MainPower has adopted a lifecycle asset management process structured on a total lifecycle cost of asset ownership. The
framework has its foundation in the activities that occur over the lifetime of the physical asset. These activities are outlined
in the figure below.

Figure 14 Asset Lifecycle Planning

Develop a Need or Idea


The need or idea can come from anywhere within the business. It typically details a high-level view of the intent or
requirement of a given project. Each idea is formulated by the project’s sponsor using a sponsor’s brief document. Once the
brief is written a project is initiated and a project manager is assigned to the project.
Plan a Project
The project plan sets out the specific requirements of the project. This includes a definition of the requirements, timelines,
resourcing, procurement and risk. The project manager is responsible for the project plan and delivering the project against
the plan. The project sponsor approves the plan and provides oversight throughout the project.
Design Phase
A completed design is a design that is informed by the requirements of the project, design criteria and standard design. We
must complete the design. Only then is the design fit for achieving the outcomes of the project. The asset manager must
approve the asset before the design process introduces it – all assets on the MainPower network are approved by the
Maintenance Manager.
Construct
The Project Management Office (PMO) is responsible for project delivery, as detailed within the MainPower Project Delivery
System. Only when the assets have a Fleet Management Plan, are entered into the CMMS, have maintenance schedules
against the asset and all asset data is reflected in our GIS, can Practical Completion be issued and the asset put into service
or energised.
Operate and Maintain
Asset criticality defines the level of maintenance. The treatment of the asset – in terms of maintenance activities
(restoration or prevention) and or critical spares – is defined in line with the criticality flowchart. Asset data complete with
template work orders entered into the CMMS and informed by rate cards develop annual resource planning (budgets,
people, plant and equipment and materials).
Modify and Upgrade
Assets are assessed against the service levels. Sometimes this assessment highlights the need to modify or upgrade an
asset. It is noted that assets can be upgraded due to changes in legislation, safe working procedures etc. Instances also arise
where existing assets are relocated based on changes of service levels.
Refurbish, Renew or Dispose
Both asset condition and criticality inform asset renewal. Asset condition is a function of many considerations cumulating as
an Asset Health Indicator (AHI). Maintenance activities, asset condition, compliance, AHI and asset criticality determine an
asset renewal that is assessed against cost and risk to the business. The maintenance process for assets is described in the
flowchart below.

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MainPower New Zealand Limited Section 2 Background and Objectives

Figure 15 Asset Renewal

Information Systems and Asset Data


MainPower’s lifecycle asset management processes are informed by total cost of ownership. Asset Maintenance Standards
exist for all MainPower assets as well as defined maintenance treatments for all assets. The Asset Maintenance Standards
are informed by the business objectives and Asset Management Policy and are implemented within MainPower’s
Computerised Maintenance Management System (CMMS).

2.6.1 Computerised Maintenance Management System


The CMMS adopted by MainPower is referred to as the OneAsset system. OneAsset is an Enterprise Resource Planning
(ERP) tool primarily designed to support maintenance that delivers corporate objectives.
Maintenance standards that define what treatment we apply to our assets are implemented within the CMMS OneAsset
system. Schedules and template work orders are applied to assets. The template work orders are developed to support all
MainPower Asset Management Standards and detail the work required to be completed including the acquisition of
condition data, into the work order that support strategic asset management and enables MainPower to balance cost, risk
and performance.
All resource planning can then be achieved by linking works as required, through to supply chain management to actual
business planning and forecasting.

Figure 16 OneAsset System

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MainPower New Zealand Limited Section 2 Background and Objectives

One Source of the Truth


The MainPower Asset Database is the single source of truth for all asset data and asset attributes. All asset data is defined
and recorded against the asset in the single OneAsset system. All other systems that report asset data, such as the GIS,
retrieve data from the OneAsset system. All data used for the condition assessment of assets is recorded within the
OneAsset system, including the mobility solutions where data is entered by Field Staff.
Asset Operational Systems
The main system that is used to operate our asset is our SCADA (Supervisory Control and Data Acquisition) system. The
SCADA system also logs historical loads on all equipment, informing our network development planning and ensuring load
flow is within asset limits when reconfiguring the network for emergency response of planned outages.
Outage Management System
Our own, in-house developed, Outage Management System (OMS) is used to track outages and inform network quality
performance reporting.

2.6.2 Asset Data


Asset data is critical to inform asset lifecycle and total cost of ownership including disposal. The data required to support
this is achieved within the design phase of the asset lifecycle and is typically achieved through:
 Design data
 Compliance requirements
 Industry experience (EEA Asset Management Group)
 Manufacturer’s requirements (operating and maintenance manuals)
 Business risk including environmental and operating risk
Once a need for an asset is identified and approved by the Asset Manager, an Asset Fleet Management Plan is developed
for all new assets or updated where existing fleet plans exist. The fleet management plans ultimately translate maintenance
lifecycle requirements in the form of schedules of work. All assets are implemented in MainPower’s Computerised
Maintenance Management System (CMMS). Once in the system, it is the Maintenance Manager’s role to implement the
Fleet Management Plan against the Asset i.e. applying schedules of work against the asset.

When assets are enabled in the CMMS and schedules are assigned to the assets, the CMMS develops ‘work orders’ for the
ongoing management of asset. Work order templates define the work required, including the data collection points for
capturing works completed and maintenance outcomes that inform the condition of the asset.

Limitation of Asset Data and Improvements


MainPower has good information on its HV assets and there is a project underway to document all of the LV systems. Site
audits are carried out prior to any work planning process where work may be affected by the accuracy of LV data.
Vegetation management data, identified in the previous AMP, is not integrated into the CMMS.

The main focus for asset data in the future is to centralise all asset data into a single source of information (OneAsset /
OneEnergy ERP), including vegetation. This will provide the foundation for the automated logging of maintenance and
condition assessment of all maintenance activities. All maintenance activities allow for asset data to be updated through
inspections or routine maintenance.

Planning and Maintenance Processes


2.8.1 Network Planning
All network projects are assessed against:
 Capacity constraints; and
 Security of supply and reliability classification for feeders and zone substations.
At this point the following treatments are applied:

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MainPower New Zealand Limited Section 2 Background and Objectives

 Network constraints are identified by reviewing the capacity and the security of the network on a
regular basis against network standards and policies.
 Should a constraint be identified, options for addressing it through reconfiguration of the network
(e.g. by moving an open point) will be considered first, to optimise the use of existing network
capacity.
 Should no reconfiguration options be available using the existing network infrastructure then other
options will be investigated as part of the investment selection process.
 The options may include both network (installation of new lines, cables and transformers, voltage
regulators or capacitors to create new capacity or allow utilisation of nearby capacity) and non-
network solutions (such as localised generation or demand side management initiatives).
 Key inputs to the capacity and reliability review are the overarching planning criteria and load
forecasts - which are updated on a yearly basis.
 The Development Plan includes potential projects identified to meet a need. This plan continually
evolves.
 Each year, the immediate prioritised projects are developed in more detail, including business case
assessments against alternatives.
 Project approvals are sought (refer below) and scheduled.
 Most development projects are delivered by MainPower’s own field staff.

2.8.2 Maintenance Processes


The requirement to deliver maintenance on our assets is defined in MainPower’s Asset Maintenance Standards. The
Standards are then implemented within MainPower’s CMMS ERP system. A summary of the maintenance workflow is
detailed below, including the need to work within a controlled environment, the issuing of authorisation and receiving of
asset condition data that is used to manage defect, inform renewals etc.

Figure 17 Asset Management Workflow Process

 The CMMS, either through preventative maintenance, faults (reactive) or defects, generates work
orders detailing the work to be completed on the asset. Defects are managed in accordance with
MainPower’s defect management policy.
 All work activities are predefined within MainPower’s work management system as rate cards.
Activities are also linked to maintenance schedules. All activities are risk assessed and appropriate
controls and competencies determined.
 Work is issued to field services via the work order system within the CMMS. Work orders are linked to
schedules that are linked to assets. The work orders contain data collection points to record
maintenance activity outcomes, informing compliance, asset condition, defects and future renewal.
 Permits to work (or ‘Work Authorities’) are issued for all work via MainPower’s Network Operation
and Control Centre. For all works, competency is assessed then authority is issued.
 All costs associated with completing the works are logged against the work order and reflected back
through to the asset. This information is used to inform total cost of ownership. Service levels are

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MainPower New Zealand Limited Section 2 Background and Objectives

assessed against maintenance outcomes and cost. Fleet asset management plans are then updated as
required as part of our commitment to continuous improvement.

2.8.3 Measuring Network Performance


 Our outage management system is GIS based, with all planned shutdowns managed with traces across
the GIS to identify all affected customers and switching points.
 For unplanned outages, all relevant fault information is entered into the GIS after the event.
 Reports are run from the GIS to generate outage statistics as required.
 Where supply is restored progressively through switching over a period of time, the switching
sequence will be recorded and used as the basis for recording the actual SAIDI impact on customers.
 Other measures are recorded with information extracted from GIS (such as line length), customer
surveys, metering information, financial systems, and our health and safety and risk management
databases.
Currently MainPower is implementing an Advanced Distribution Management System (ADMS) project that links our Outage
Management System (OMS), Supervisory and Control and Data Acquisition (SCADA) and Distribution Management System
(DMS). The goal of the project is to ensure MainPower’s network is ready for a New Energy Future, within a safe, secure and
sustainable management system that allows MainPower to drive continuous improvement through performance
monitoring.

Documentation and Controls


2.9.1 Asset Management Documentation
Asset Management documentation is linked across three areas within the Business:
 Assets
 Asset management policies
 Asset Management Plan
 Asset Maintenance Standards
 Standard designs
 Construction specifications
 Operational requirements
 Operating standards (SOP, SWMS etc.)
 Process flows
 Work instructions
 Business continuity planning
 Capability
 Individual development plans
 Competency and training registers
 Contractor management controls

Figure 18 Asset Management Documentation

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MainPower New Zealand Limited Section 2 Background and Objectives

2.9.2 Document Management and Review


MainPower maintains an ISO9001 certified quality assurance program and continues to develop, implement and internally
audit the program in accordance with this commitment. Relevant standards for asset management planning include design,
purchasing, document and record management and environmental management. MainPower maintains a document
control system under this certification.

The ISO9001 certification ensures annual review and continual improvement of the documentation systems.

2.9.3 Outsourcing
Where asset management design and construction are outsourced, contractors must comply with our asset management
processes, controls and documentation systems. All maintenance tasks and asset data collection are maintained within the
MainPower CMMS against the applicable asset. Costs associated with the maintenance are linked back via the work order
to the asset.

Communication and Participation


MainPower communicates its Asset Management Strategy, objectives and outcomes to stakeholders as follows.
REPORTING TO REPORTING TYPE
MainPower Trust to  Consultation on the Trust’s Letter of Expectation to the MainPower Board
customers and the wider
community
 MainPower Trust’s Annual Report and audited accounts

MainPower Board to  Company Annual Report includes Chairman and Chief Executive’s statements
MainPower Trust
and audited accounts
 Annual information disclosure
 Twice-yearly presentation includes financial and operational performance

Chief Executive to
 Chief Executive’s statement in annual report includes narrative of year’s
MainPower Board
highlights
 Monthly board report, includes progress on significant projects and major
outages

General Manager Network to


 Annual report on budget and major projects
Chief Executive and
MainPower Board
 Monthly report includes year to date performance and progress against budget
 Individual reports on major projects
 Daily updates on areas of concern including health and safety

Managers  Weekly direct report team meetings


 One-on-one with direct managers
 Daily updates during brief meetings including health and safety updates
 Annual reports

Operations Supervisors to  Weekly progress reports


Grid Managers  Monthly meetings on progress to budget

External Contractor to  Weekly progress reports


Operations Manager  Monthly meetings on progress
Table 7 Reporting Asset Management Plans and Outcomes

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Asset Management Plan
2019 – 2029

Section 2a – Network of the Future


This section details MainPower’s electricity distribution network transformation roadmap. The roadmap comprises of two
programs of work. These are Asset Management and Network Operational Excellence enabling MainPower’s electricity
distribution network to be ready for the ‘new energy future’.
MainPower New Zealand Limited Section 2a Network of the Future

Contents
2. Network of the Future ............................................................................................................... 4
Introduction .............................................................................................................................. 4
2.1.1 Function and Participant Interaction ..........................................................................................................................5
Asset Management Excellence ................................................................................................... 7
2.2.1 ISO 55001 Current State ..............................................................................................................................................7
2.2.2 Asset Maturity Roadmap .............................................................................................................................................8
2.2.3 Comparison with the Commerce Commission’s Asset Management Maturity Assessment Tool ..............................9
Operational Excellence .............................................................................................................. 9
2.3.1 Operational Maturity Roadmap ................................................................................................................................10

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MainPower New Zealand Limited Section 2a Network of the Future

List of Tables
Table 1 Function and Participant Interaction ...............................................................................................................................7
Table 2 ISO55001 Compliance Recommendations ......................................................................................................................9
Table 3 NOCC Operational Effectiveness ...................................................................................................................................13

List of Figures
Figure 1 Transformation Road Map Program...............................................................................................................................4
Figure 2 ISO 55001 Current State .................................................................................................................................................8
Figure 3 ISO55001 Maturity Road Map ........................................................................................................................................8

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2. Network of the Future


Introduction
Electricity distribution and the wider electricity energy sector is embarking on unprecedented change due to the
decarbonisation of the economy (transportation and process heat sectors), new technologies (solar, batteries, EVs) and
changing customer needs (consumers transitioning to prosumers).
This change will impact MainPower’s electricity distribution network and the services we provide that support our network.
For example, additional services that MainPower may be required to deliver to be ready for a New Energy Future could
include:
1. A service that operates and develops an active distribution system comprising networks, demand, generation and
other flexible Distributed Energy Resources (DER).
2. Becoming a neutral facilitator of an open and accessible market that will enable competitive access to markets and
the optimal use of DER on distribution networks to deliver security, sustainability and affordability in the support
of whole system optimisation.
3. Enables customers to be both producers and consumers; enabling customer access to networks and markets,
customer choice and great customer service.
MainPower has already embarked on two main work streams to ensure that our electricity distribution network systems
and processes are ready for a new energy future:
• Asset Ownership (transitioning from a DNP to a DSI); and
• Operation (transitioning from a DNO to DSO).
The need for two work streams signifies MainPower’s view that within a new energy future there may need to be some
separation of operational control and network asset management activities.

Figure 1 Transformation Road Map Program

Note:
It is unlikely that every EDB will transition into a DSO. While this remains to be determined it is likely that a DSO will be
formed in regions. EDBs that have transformed their businesses into DSI will interface with DSO service providers, i.e. a
DSO will provide DSOs services to several EDBs in the future.

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Electricity Distribution Business (EDB)


In New Zealand the Electricity Distribution Business (EDB) is the network company or lines company that owns and
operates the regional network of overhead wires and underground cables that supplies electrical energy to consumers.
In New Zealand today, an EDB is typically a Distribution Network Provider (DNP) and Distribution Network Operator
(DNO) combined into a single entity.
Distribution Network Provider (DNP)
A Distribution Network Provider (DNP) is the organisation that owns the electricity distribution network assets and
provides the physical processes and systems that support the assets i.e. asset management, system maintenance,
security of supply, system resilience, etc.
Distribution Network Operator (DNO)
A Distribution Network Operator (DNO) operates the network day-to-day to ensure the network conforms to safety
requirements, controls the electrical load and controls access to the network. The DNO normally transacts between
and connects suppliers and consumers of electrical energy with bulk supply points or grid exit points (GXPs) by means
of the electrical distribution network.
Distribution System Integrator (DSI)
A Distribution System Integrator (DSI) allows for the widespread use of local generation sources connected to the
network at multiple points, with associated multi-directional power flows. A DSI ensures open access arrangements for
consumers and other market participants, allowing parties to transact over the network and to connect any device they
wish, within acceptable safety and reliability limits.
Distribution System Operator (DSO)
A Distribution System Operator (DSO) securely operates and develops an active distribution system comprising
networks, demand, generation and other flexible Distributed Energy Resources (DER). As a neutral facilitator of an open
and accessible market it will enable competitive access to markets and the optimal use of DER on distribution networks
to deliver security, sustainability and affordability in the support of whole system optimisation. A DSO enables
customers to be both producers and consumers; enabling customer access to networks and markets, customer choice
and great customer service.
Smart Network
A smart network is much the same as a network that a Distribution Network Provider would own and, in many cases,
operate. The network is extended with monitoring, measurement, control and automation capabilities. This includes
extended data and communications technology required to support the increased automation. Typically, there is a shift
to decentralized control, allowing areas within the network to operate / selfheal, etc., in accordance with some
predefined rules.

2.1.1 Function and Participant Interaction


New Zealand EDBs must transition their services to that offered by a DSI to be ready for a New Energy Future in order
to remain relevant and to protect shareholder asset value. The transformation roadmap to realise and deliver value
from new market opportunities is not trivial - it requires investment in the way EDBs currently do business, in their
technology and in their people, adding an unprecedented level of complexity to the EDB business.

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Table 1 Function and Participant Interaction

Asset Management Excellence


To achieve asset management excellence and to provide confidence to market participants and consumers alike, within a
new energy future, MainPower has decided to ensure our asset management systems, process and practices are compliant
with ISO 55001.

Within the last reporting period, using an external service provider, MainPower assessed our asset management maturity
against ISO 55001. The following describes the current status including and the roadmap to achieve certification in the
future.

2.2.1 ISO 55001 Current State


MainPower was assessed against 161 maturity assessment criteria within the ISO 55000 framework. MainPower was
evaluated as being:
• 22% Compliant;
• 26% In progress of being compliance;
• 41% Partially compliance – no evidence of becoming compliant; and
• 11% Nil Compliance, providing an overall compliance.

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Figure 2 ISO 55001 Current State

2.2.2 Asset Maturity Roadmap


Recommendations required to achieve ISO 55001 alignment and certification have been mapped and proposed to be
implemented over the next 3 – 4 years as follows including percentage compliance:

Figure 3 ISO 55001 Maturity Road Map

Recommendation Improvement
R1 Document the AMS (Asset Management Standard) to provide clarity on the management system that
has been designed to manage MainPower assets. This could be a short document that describes the
scope of assets managed and the key components to the AMS, including people, process and
technology. The relevant requirements in the Standard are 4.3, 4.4.1, 5.1.2, and 7.6.1.

Improvement 5%
R2 Develop and implement a Strategic Asset Management Plan (SAMP) that clearly links the
organisational asset management objectives to the tactical asset management practice. This could be
implemented using digital technology, rather than hardcopy documents, to create a ‘live’ asset
management environment and to readily engage stakeholders in the AMS, particularly the future
planning of renewal works. The SAMP would also include clarification and/or development of AM
objectives that cover technical (asset) and service delivery (stakeholder) outcomes.

Improvement 9%
R3 Amend the current Asset Management Policy to confirm top management commitment to asset
management and to guide the context of the AM. The relevant requirements in the Standard are
5.1.8 and 5.2.

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Improvement 1%
R4 Review and extend the current asset planning horizon, for asset renewal works, to improve visibility
on the future financial liabilities relating to asset performance and risk. This is typically referred to as
a 10 Year Capital Plan or Forward Works Plan. The relevant requirements in the Standard is 6.2.2.

Improvement 5%
R5 Review the current asset data acquisition and management practices. The relevant requirements in
the Standard is 7.5, which addresses information for asset management decision making.

Improvement 2%
R6 Documented Operations and Maintenance Plans to capture practice knowledge for continuity in
practice. The relevant requirements in the Standard are 7.6.2 and 8.1, which address creating and
updating information for asset management purposes.

Improvement 2%
R7 Reviewing and refining the method of service and asset performance measurement and monitoring
including evaluation and analysis. The relevant requirements in the Standard is 9.1, which addresses
monitoring, measurement, analysis and evaluation.

Improvement 2%
R8 Review the progress made to the AMS, assess the resources, ensure staff are competent and continue
to champion better asset management practices to build awareness and foster continuous
improvements. The relevant requirements in the Standard are 5.1, 5.3, 7.2, 7.3, 7.4, 8.2, 9.3 and 10,
which addresses continuous improvement.

Improvement 13%
Total Implementing all the recommendation will have the following effect to the compliance
assessment:

Improvement 39%
Assessment Against Compliance 88%
Table 2 ISO 55001 Compliance Recommendations

2.2.3 Comparison with the Commerce Commission’s Asset Management Maturity Assessment Tool
There are some similarities between the Commerce Commission’s Asset Management Maturity Assessment Tool
(AMMAT) and the ISO 55001 standard. The ISO standard assesses compliance against a fixed standard as compared to
AMMAT which focusses on maturity and compares the utility to other similar utilities in the industry. The AMMAT is
based on PAS55 which focusses on the actions that people take, whilst ISO 55001 has a wider focus on governance,
systems, thorough understanding of principles and compliance to established standards.

Operational Excellence
The kernel of the MainPower network is the MainPower Network Operations and Control Centre (NOCC). Taking into
consideration the day-to-day operational control of the electricity distribution network, a New Energy Future and the
transformation of services to enable an Open Network Framework, MainPower reviewed its NOCC practices in the last
reporting period. The review assessed our NOCC against:
• Industry best practice;
• Comply with Safety Manuals for the Electricity Industry (SMEI); and
• The Health and Safety at Work Act.
The review covered:
• Processes that govern activities undertaken by the Control Room;
• Compliance against requirements of SMEI (industry rules);
• Processes for issuing authorities / permits to staff for HV and LV access, as well as minor works apart from the
network itself;
• Processes for managing staff competency to hold authority documents;
• Processes for ensuring safety of the works prior to issuing authority to work;
• Identifying any gaps, failings, non-compliance with the processes;

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MainPower New Zealand Limited Section 2a Network of the Future

• Identifying areas of our processes which are not properly documented; and
• Selected incident reports to look for common themes and gaps in processes these may highlight.

2.3.1 Operational Maturity Roadmap


Improvement Target
Date
Roles and It is proposed to 2019
Responsibilities 1. Using process to identify skills across the NOCC comprehensively process map
and ensure that these skills are spread across the all NOCC process.
team – not reliant on individuals.
2. Start targeting specific workstreams within the The introduction of specific
NOCC (WP, RP and Controller) so that roles can roles within the NOCC will be
concentrate on their areas of responsibility only. introduced.

Customer A more sophisticated Outage 2020


Interfaces 3. Implement improved outage communications to Management System is
customers, for both planned and unplanned required to be implemented
outages. This is already in progress as
4. Automation of outage communications to part of the ADMS project.
customers.
5. Enable customers to access their own information
– customer portal.
Functional This initiative is supported and 2020
Arrangement 6. Introduce a flat operating model, single screen for forms part of the ADMS
all system enhancing situational awareness project.
7. Map control room processes.
Business Detailed reporting suffers 2020
Metrics 8. Introduce increased levels of automation within within the NOCC due to the
the NOCC for both operational effectiveness and limited number of systems
performance reporting. that support the NOCC. It is
9. Examine options to ensure key data is available to proposed in 2019 to
all departments who plan access to the network understand what performance
(lines personnel / underground / substation / live- metric MainPower should
line activity / external works personnel). monitor and to subsequently
implement these metrics.
People The people that support NOCC 2022
10. Develop a succession plan for NOCC staff that operations are sought after
includes attracting talent (future controllers). across the country.
11. Schedule regular workshops for Controllers and Documentation of current risk
Field Operators to identify and understand issues within the Control Room has
leading to NOCC process enhancement including been completed and we are
the NOCC Competency Framework. currently working our way
12. Continue review of hours worked, implement through the controls required
to mitigate the high and
plans to manage staff hours worked against risk
extreme risks.
i.e. the resource risk management plan has been
implemented and this must be maintained to Future work remains ensuring
manage the associated risk. an effective succession plan
and continuous improvement
program is in place to address
longer term issues.
Systems, Systems process and practise 2021
Process and 13. Document thoroughly all NOCC processes. are about to undergo
Practices 14. Identify key roles (WP, RP and Controllers) and transformational change as
understand the interfaces between the key roles, MainPower implements its
including the simplification of some the processes. ADMS project. This required
15. Review process for assuring field staff competency, MainPower to reassess these
for example, a database the reflects the improvements upon go-live of
competency of the staff receiving a permit or the new system.
carrying out an activity on the network.

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MainPower New Zealand Limited Section 2a Network of the Future

16. Review the tagging process- current process and


issuance of single ‘Do Not Operate’ tag relies on
the Control Room and increases the complexity of
the Controller’s roles.
17. Consider a process of managing the ’Whiteboard’
including requesting and confirmed action.
Whiteboards are typically limited to manage 30
operations; this solution may not be sustainable to
support the business in the future.
18. There is an opportunity to improve Controller
familiarity by undertaking refresher courses on a
more regular and planned basis to ensure all
personnel including the NOCC are refreshed in the
all relevant processes and procedures and to
ensure a consistent understanding across all
Controllers and field operating personnel.
19. Basic safety controls for network access could be
enhanced through development of the current
systems or investment in a system that would
provide better integration among the current
processes.
20. Training and procedures need to clearly articulate
each of the Network Access permit’s requirements
and constraints. (i.e. Entry Approval; Work
Authority; Close Approach; Access Permit (HV);
Test Permit (HV); Live Line (HV); LV Permit)
21. The two databases (WORM and Logbook) are
potentially single points of failure due to the
unsupported inhouse design of each system.
Load System HMI and SCADA will 2022
Management 22. There is an opportunity for the system HMI to be also be upgraded in the future
revised to enable the Controller to have improved as part of the ADMS project.
visibility of the system. Consideration should be Load management, the
given to exploring energy management systems benefits of and better
that many distribution networks operate. utilisation of negative
23. Need to review how the system is supported. generation remains a strategic
24. Look to integrating Load Management focus for MainPower – once
strategy is formulated and
functionality into a future ADMS to reduce
business objectives and
overhead of maintaining a separate system.
planning are completed, these
improvements will need to be
reassessed.
SCADA Forms part of the ADMS 2020
25. Work closely with the Controllers to better project.
determine requirements for desktop
configuration. Undertake site visits to view
possibilities. Consider also the remote work and
disaster scenario.
26. There is always an opportunity to enhance the
existing system by reviewing alarm priorities and
grouping from an operational perspective.
27. Consider if there are critical aspects of system
management that can benefit from modern
notifications via SCADA e.g. Load Management.
28. In considering SCADA HMI improvements, all
monitored devices on a ‘normal’ configuration of a
feeder, should be presented on a single page to
provide improved situational awareness.

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MainPower New Zealand Limited Section 2a Network of the Future

29. SCADA / ADMS are critical systems deserving of


redundancy in design and implementation.
However, the scale of operations at MainPower
does not necessitate a full back-up Control Room.
Consider a DR plan that provides for loss of access
to SCADA / ADMS.
Incident and Improvements to be revised, 2019
Event 30. Develop a restoration process / procedure that plans developed and
Management provides a detailed response for prioritising fault integrated into the next
activity based on good risk management practices. business planning cycle.
31. Consider deploying a knowledge management
system appropriate to the need of the Control
Room. As a minimum, this should provide ready
access to:
a. Company operational and OH&S
procedures
b. Industry guidelines
c. Technical support manuals
d. Single-line Network and Station diagrams
e. Protection settings
f. Transformer and feeder circuit load
ratings
g. Contact listings (internal and external)
h. Escalation processes
i. Contingency plans etc.
Supporting Improvements to be revised, 2019
Systems 32. Recommend that the phone system be reviewed in plans developed and
terms of its current use and foreseeable future integrated into the next
with a view to provisioning a redundant system business planning cycle.
that will meet the future needs of MainPower.
33. Investigate and confirm that the existing Corporate
VOIP Server has limited or no redundancy and
assess the importance of upgrading to ensure a
redundant system is in place.
34. Review the VOIP Server in terms of – the number
of incoming lines; the priority of incoming lines (via
Caller Line Identification (CLI)), the number of lines
allocated to the IVR.
35. Being a VOIP System enables the NOCC to make
better use of the many user configurable settings
that may help facilitate and streamline Control
Room processes.
36. Consider replacing email systems with more real-
time, SMS-based systems.
37. When considering new technologies (IoT), consider
how they will integrate into core systems and
functions. Assess the burden vs benefit this
imposes on the Controller and Control Room
processes.
38. Undertake cross-team familiarisation between OT
and IT teams to develop understanding of the
requirements and drivers for each of these teams
and consider what skills may be cross-functional.
Environment Improvements to be revised, 2019
39. There is value in having the current design of the plans developed and
room assessed for fatigue and general ergonomics integrated into the next
business planning cycle.

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MainPower New Zealand Limited Section 2a Network of the Future

40. Several of the desks face the external windows and


it is recognised that the competing lighting from
the external source and the computer screens
results in increased fatigue and eye strain.
Consider facing desks away from external light
sources.
Resilience Improvements to be revised, 2019
41. Develop / review the generator testing regime. plans developed and
Ensure the generator testing includes extended integrated into the next
onload testing to confirm all elements of the business planning cycle.
motor operation are ready for service (i.e.
thermostat operation etc).
42. Develop / review the UPS testing regime. Ensure
the UPS can undertake a 50% discharge operation
on an annual basis.
43. An active DR plan was not available and needs to
be developed. Consider the requirements for a
Disaster Control Room and the systems that would
need to be implemented. Note however that it is
not recommended that a ‘fully’ redundant Control
Room be established due to the cost.
Consideration of ‘multiple’ options for a backup
facility will maintain flexibility – a strength of
MainPower’s culture.
44. Develop a (simple) plan that lists options for a
Disaster Control Room and the systems required to
support a room for sustained operation. A ‘Grab
and Go’ box with key documents would be a
requirement, preferably securely located offsite
and updated every 3 - 6 months
45. Examine the option to have after hours fault calls
directed to a call centre in either New Zealand or
Australia that has experience in surge type call
activity and / or undertakes electricity fault calls.
This would enable the Controller to focus on the
Network activities. This process would require an
electronic transfer of information from the Call
Centre to the Control Room.
Data Accuracy Improvements to be revised, 2019
46. Continue with the process of field checking all ICPs plans developed and
prior to a network interruption. Over time this will integrated into the next
provide benefits with respect to Low Voltage business planning cycle.
control. The management decision to invest in this
process recognises the importance of compliance
in this area.
Table 3 NOCC Operational Effectiveness

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Asset Management Plan
2019 – 2029

Section 3 – Assets Covered


This section outlines MainPower’s service area and details the assets covered including their configuration. The links
between our network and Transpower’s transmission system are also included.
MainPower New Zealand Limited Section 3 Assets Covered

Contents
3. Assets Covered .......................................................................................................................... 4
3.1 Description of MainPower’s Electricity Network ......................................................................... 4
3.1.1 Regions Covered ..........................................................................................................................................................4
3.1.2 Large Customers ..........................................................................................................................................................4
3.1.3 Load Characteristics ....................................................................................................................................................5
3.1.4 Peak Demand and Total Energy Delivered ..................................................................................................................5
3.2 Network Configuration .............................................................................................................. 6
3.2.1 Transmission Network Configuration ..........................................................................................................................6
3.2.2 Sub-transmission Configuration ..................................................................................................................................7
3.2.3 Distribution Configuration...........................................................................................................................................7
3.2.4 Distribution Substations ..............................................................................................................................................8
3.2.5 Low Voltage Distribution Configuration ......................................................................................................................8
3.3 Description of Assets by Category .............................................................................................. 8
3.3.1 Age Profile of Assets ....................................................................................................................................................9
3.3.2 Overview of Assets by Category ................................................................................................................................10
3.3.3 Other Generation ......................................................................................................................................................11

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MainPower New Zealand Limited Section 3 Assets Covered

List of Tables
Table 1 MainPower Network Load Characteristics ......................................................................................................................5
Table 2 Key MainPower Network Statistics .................................................................................................................................6
Table 3 Description of each GXP ..................................................................................................................................................6
Table 4 Zone Substation Key Information ....................................................................................................................................7
Table 5 MainPower Assets ...........................................................................................................................................................9

List of Figures
Figure 1 MainPower’s Electricity Network Customer Geographic Distribution ...........................................................................4
Figure 2 MainPower's Sub-transmission Network .......................................................................................................................7
Figure 3 Assets Age Profile ...........................................................................................................................................................9

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MainPower New Zealand Limited Section 3 Assets Covered

3. Assets Covered
3.1 Description of MainPower’s Electricity Network
3.1.1 Regions Covered
MainPower’s electricity network extends from Kianga, Stewarts Gully and Coutts Island in the north of Christchurch City,
through the Waimakariri, Hurunui and Kaikoura Districts, up to the Clarence River and inland to the Lewis Pass.
The geographic extent of the network is represented in the map below, where every blue dot represents a customer
connection.

Figure 1 MainPower’s Electricity Network Customer Geographic Distribution

3.1.2 Large Customers


Our large customers are:
- Daiken NZ Medium Density Fibreboard Mill at Ashley: The Daiken mill is supplied from the Ashley GXP via four 11kV
feeders which provide reasonable levels of security. The Daiken controllers are able to disconnect power supply
during emergencies, and maintenance is scheduled to coincide with Daiken maintenance programs or times of low
production.
- Hellers meat processing plant at Kaiapoi: The site has undergone rapid growth and the total load is able to be
switched between two 11kV feeders. Hellers meats have also installed a backup generator for critical supply during
emergencies.

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MainPower New Zealand Limited Section 3 Assets Covered

- Patience and Nicholson tool manufacturing plant in Kaiapoi: This plant can be supplied from either of two 11kV
supplies from the Kaiapoi switching station, and one of these can also be swapped to an independent backup
feeder.
- McAlpines sawmill at Southbrook: Recently this mill has been transferred onto a new high security dual feeder
supplied switchboard which has reduced the risk of power interruptions to the site.
- Mitre 10 Megastore at Southbrook: This site has an alternative 11kV feeder.
- Belfast Timber kilns at Coutts Island: This plant is connected near the end of a rural 11kV spur line. No alternative
supply is available at the site. Line maintenance is scheduled to coincide with plant maintenance programs.
We also have several large supermarkets and other commercial businesses located in Rangiora, Kaiapoi and Kaikoura.
The transformers for each of these sites are part of ringed feeders with RMUs allowing alternative switching of supply in
the event of a fault on one feeder.

3.1.3 Load Characteristics


Year 16 17 18
Peak
Substation Amps MVA Amps MVA Amps MVA
Southbrook 1170 22.5 1182 22.7 1185 22.8 Winter
Swannanoa 384 14.8 406 15.6 394 15.6 Summer
Burnt Hill 386 14.8 399 15.4 391 15.0 Summer
Rangiora North 268 5.2 306 5.9 289 5.6 Winter
Amberely 268 5.2 307 5.9 313 6.0 Winter
MacKenzies Rd 130 2.5 85 1.6 82 1.6 Summer
Greta 69 1.3 71 1.4 66 1.3 Summer
Cheviot 173 3.3 164 3.2 164 3.2 Summer
Leader 80 1.5 80 1.5 76 1.5 Summer
Ludstone Rd 310 6.0 301 5.8 305 5.9 Winter
Mouse Point 22 522 20.1 380 14.6 382 14.7 Summer
Hanmer 225 4.3 248 4.8 250 4.8 Winter
Lochiel 7 0.1 8 0.1 7 0.1 Summer
Hawarden 178 3.4 183 3.5 188 3.6 Summer
Kaiapoi S1 * 470 9.0 477 9.2 465 8.9 Winter
Rangiora West * 420 8.1 491 9.4 432 8.3 Winter
Pegasus * 130 2.5 142 2.7 144 2.8 Winter
Kaiapoi North * 366 7.0 420 8.1 374 7.2 Winter
Table 1 MainPower Network Load Characteristics

3.1.4 Peak Demand and Total Energy Delivered


System Measure 2017 2018
Peak Load 112 MW 112 MW
Energy Entering the System 635 GWh 632 GWh
Energy Delivered 595 GWh 608 GWh
Loss Ratio 6.3% 5.8%
Load Factor 65% 65%
Customers 39,346 40,841
Zone Substation Capacity (base ratings) 135 MVA 132 MVA
Distribution Transformer Capacity 540MVA 557 MVA
Distribution Transformer Capacity Utilisation 20.5% 19.9%
Circuit length lines (kms) 5,017 5,052
Customer Group ICPs (Installation Control Points)
Residential 32,196 33,157
General 5,933 5,909

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MainPower New Zealand Limited Section 3 Assets Covered

Irrigation 1,432 1,413


Council Pumping 196 200
Streetlight 125 115
Large User 37 47
Table 2 Key MainPower Network Statistics

3.2 Network Configuration


3.2.1 Transmission Network Configuration
The 220kV South Island transmission network is owned and managed by Transpower New Zealand Limited. Four 220kV
circuits supply Transpower’s Islington Substation from the Waitaki basin, with double circuit and single circuit tower lines
from Tekapo, Ohau and Benmore following different routes to Islington. A single circuit tower line also connects Livingston
and Islington.
MainPower’s distribution network is supplied via five Transpower Grid Exit Points (GXPs) from the 220kV and 66kV
transmission circuits out of Islington. The following table provides a summary of the GXP substations in the North
Canterbury region.
GXP DESCRIPTION
Kaiapoi Transformer Capacity 76 MVA
Firm Capacity 38 MVA
Peak Load 27 MVA
Configuration Two 38 MVA 66/11kV three phase transformers
Supply to MainPower Eight 11kV circuit breakers
Southbrook Transformer Capacity 80 MVA
SBK0331 and 0661 Firm Capacity 40 MVA
Peak Load 44 MVA Combined
Configuration Two dual-rated 30/40 MVA 66/33 kV three phase transformers
Supply to MainPower Two 33kV circuit breakers
Two 66kV circuit breakers
Ashley Transformer Capacity 80 MVA
ASY011 Firm Capacity 40 MVA
Peak Load 21 MVA
Configuration Two dual-rated 40 MVA 66/11kV three phase transformers
Supply to MainPower One transformer normally feeding five 11kV circuit breakers
supplying the rural area.
One transformer normally feeding four 11kV circuit breakers for
the Daiken plant (a plant that produces Medium Density
Fibreboard)
Waipara Transformer Capacity 160 MVA
WPR0331 and 0661 Firm Capacity 80 MVA to the 66kV bus
Peak Load 12 MVA
Configuration Two 80 MVA 220/66kV transformers directly connected to the
Islington-Kikiwa 220kV circuits. The 66kV supply from these
transformers feed a single 66/33kV dual-rated 10/16 MVA three
phase transformer.
Supply to MainPower Two 33kV and one 66kV feeder circuit breakers and one 66kV load
plant circuit breaker.
Culverden Transformer Capacity 60 MVA
CUL0331 and 0661 Firm Capacity 30 MVA to the 33kV bus
Peak Load 26 MVA
Configuration Two 30MVA 220/33kV transformers directly connected to the
Islington-Kikiwa 220kV circuits. A 10/20 MVA 33/66kV transformer
rated at 13.09 MVA with no fans has been installed to supply 66kV
to Kaikoura.
Supply to MainPower 33kV via two feeder circuit breakers and cables, 66kV feeder
circuit breaker.
Table 3 Description of each GXP

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MainPower New Zealand Limited Section 3 Assets Covered

3.2.2 Sub-transmission Configuration


The location of Transpower’s GXPs supplying our network along with MainPower’s zone substations and 66kV and 33kV
sub-transmission circuits are shown below.

Figure 2 MainPower's Sub-transmission Network

3.2.3 Distribution Configuration


MainPower’s distribution system is largely rural with many long radial spurs. The 22kV and 11kV distribution is
approximately 90% overhead line network. The only areas of significant underground reticulation are the townships of
Rangiora and Kaiapoi where 11kV reticulation in Rangiora and Kaiapoi is approximately 90% underground. The table below
provides a summary of key information for each of MainPower’s zone substations.
General Transformers Switchgear
Security of Supply Level

Capacity available after


Transformer capacity

Number of Feeders
Peak Load (MVA)

after a single fault

Seismic Restraint
Sub-transmission

Capacity (MVA)

Capacity (MVA)

Oil Containment
Remote Control
switching

Zone Substation Type Feeder Circuit Breakers


Southbrook 22.9 2+ 44 22 22.5 Yes 6 2 x 16/22 Yes Yes Indoor 6 Reyrolle vacuum
Swannanoa 16.0 2 46 23 26 Yes 5 2 x 11.5/23 Yes Yes Indoor 5 Tamco vacuum
Burnt Hill 15.7 2 46 23 26 Yes 6 2 x 11.5/23 Yes Yes Indoor 7 ABB UniGear ZS1
Rangiora North 7.0 2- 7 0 5.2 Yes 3 5/7 Yes Yes Outdoor 3 Nulec SF6
Amberley 5.6 2- 8 4 6 Yes 3 2 x 3/4 Yes Yes Indoor 3 Reyrolle oil
MacKenzies Rd 1.5 2 4 0 1.5 Yes 3 2/4 Yes Yes Outdoor 3 Nulec SF6
Greta 1.3 2- 4 0 0.5 Yes 3 2/4 Yes Yes Outdoor 3 Nulec SF6
Cheviot 3.5 2 4 0 0.5 Yes 3 2/4 Yes Yes Outdoor 3 Nulec SF6
Leader 1.6 2 2 0 0 Yes 3 1/2 Yes Yes Outdoor 3 Nulec SF6
Oaro 0.4 2 0.5 0 0 No 1 0.5 No No Outdoor 1 ME KFE vacuum
Ludstone 5.9 2 12 6 6 Yes 4 2 x 4/6 Yes Yes Indoor 4 South Wales oil
Hawarden 3.5 1 4 0 2.5 Yes 3 3/4 Yes Yes Outdoor 2 GPC oil, 1 Nulec SF6
Mouse Point 14.7 2 26 13 14 Yes 4 2 x 10/13 Yes Yes Outdoor 4 W&B SF6
Marble Quarry 0.1 1 0.2 0 0 No 1 0.2 No No Outdoor 1 GPC oil
Lochiel 0.2 1 0.2 0 0 Yes 1 0.2 No Yes Outdoor 1 Nulec SF6
Hanmer 4.7 1 6 2.5 0 Yes 2 4/6 + 2.5 Yes Yes Indoor 2 South Wales SF6
Colour Key: Less than 75% of capacity utilised 75-100% of capacity utilised Over 100% of capacity utilised

Table 4 Zone Substation Key Information


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MainPower New Zealand Limited Section 3 Assets Covered

Security of Supply Key:


1 A single fault will cause a loss of supply.
2- Two sub-transmission lines supply to near the substation; but a short, single spur line completes the circuit.
2 A faulted line can be bypassed by manually switching to an alternative line.
2+ A faulted line will be bypassed by automatic switching to an alternative line without loss of supply.

3.2.4 Distribution Substations


As our high voltage distribution network is predominantly overhead, the majority of distribution substations are pole
mounted. Distribution substations in rural areas are typically pole mounted for transformers up to 200kVA and ground
mounted above 200kVA, although many irrigation customers require their high voltage spurs to be underground with
ground mounted distribution substations. Pole mounted transformers are protected with expulsion drop out fuses and low
voltage HRC fuses where practical.
The main urban areas have largely underground distribution with ground mounted substations. Most substations located in
residential or rural areas are located on private property within easements or land purchased by MainPower. Our
distribution substations consist of a range of construction types and designs, as outlined below.
- Building Substations: Large buildings or rooms of poured concrete and stucco exteriors. These were generally built
with exposed overhead 11kV buswork but most have been changed to more modern ground mounted RMU’s. They
are ideal locations for automated switchgear.
- Kiosks: Smaller predominantly front access steel kiosks housing the transformers and switchgear: RMUs are used
with an 11kV HRC fuse protecting the transformer. The box design allowed for a maximum transformer size of 500
kVA, however, these have to be de-rated because of reduced cooling. Low voltage panels were typically the open
style Lucy HRC fuses but many of these have been replaced with DIN standard switchgear.
- Mini-Sub: Mini-substation packages with RMUs in every second substation and air mounted fuses in the remainder.
- Outdoor: More recently outdoor transformers with cable boxes and separate front access outdoor cabinets for the
RMUs and low voltage panels are being used. This design allows more flexibility for a wider range of switchgear for
changing transformer sizes, for accessibility and allowing the full rating of the transformer to be used.

3.2.5 Low Voltage Distribution Configuration


Approximately 70% of our low voltage network is underground, typically located in the larger urban areas. Cables are
typically terminated in plastic service boxes above ground with larger link boxes used to create tie points between
substations where practical, increasing security of supply.
Overhead low voltage systems are located in smaller townships and in rural areas to enable cost effective supply to a
number of customers from one transformer. Most overhead low voltage conductors are bare conductor or covered copper.
Almost all new low voltage reticulation since 1990 has been underground. Conversion to underground reticulation is the
preferred replacement strategy for old low voltage lines where this can be economically justified.

3.3 Description of Assets by Category


ASSET CLASS SUB CLASS LENGTH COUNT REPLACEMENT VALUE $
Communication Aerial 193 618,756
Fibre Optic 11 261,981
Radio 190 904,591
Remote Terminal Unit (RTU) 75 989,790
and Card
Transducer 97 105,512
Conductor Under Ground High Voltage 329 km 1,421 47,667,708
(UGHV)
Under Ground Low Voltage 1,045 km 11,760 81,769,085
(UGLV)
Structure Pole and Line: 4,305 km 55,670 216,154,330
Over Ground High Voltage
(OGHV) and Over Ground
Low Voltage (OGLV)
Customer Connections 39,919

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MainPower New Zealand Limited Section 3 Assets Covered

ASSET CLASS SUB CLASS LENGTH COUNT REPLACEMENT VALUE $


DC System Cells 516 396,909
Charge 55 241,099
Converter 79 247,392
Load Bank 17 118,717
Earthing 23 399,303
Easement 56 968,907
Fault Indicator 188 1,361,397
Housing Substation Buildings 32 2,027,962
Covers 765 3,232,119
Substations Other 8,209 30,845,889
Land 156 4,816,637
Load Control Injection Plant 45 2,272,859
Relay 110 375,176
PCM (Control Systems 411 3,330,282
Automation)
Structure Oil Containment 21 475,486
Pylon 42 1,948,000
Surge Arrestor 1,017 4,507,211
Switchgear Disconnector 683 7,572,341
Drop Out Fuse 9,336 27,481,425
Frame/Bus 48 3,116,000
High-voltage Circuit Breaker 285 8,154,663
Ring Main Unit 414 5,324,988
Transformers 8,910 64,225,037
Miscellaneous Grid 1,003 2,290,828
Buildings Non-Grid 176 31,676,361
Equipment, Furniture, Fittings, Non-Grid 3,390 8,324,543
General Plant
IT Hardware 792 2,589,903
IT Software 177 3,597,592
Land 31 5,256,666
Phone 39 11,850
TOTAL 145,209 587,155,008
Table 5 MainPower Assets

3.3.1 Age Profile of Assets

6.1
Figure 3 Assets Age Profile

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MainPower New Zealand Limited Section 3 Assets Covered

Age profile of assets are presented considering a theoretical period of 40 years for all our assets. MainPower is replacing a
number of poles on its network, so the poles and structures metric will reduce within the next reporting period. It is noted
that MainPower assets are not replaced on age. Asset renewals are based on condition, asset health and risk.

3.3.2 Overview of Assets by Category


Sub-transmission
The sub-transmission system is a mixture of 33kV and 66kV circuits on hardwood poles, with newer lines predominantly
constructed using concrete poles, with a few short-cabled sections.
Zone Substations
Network assets housed within zone substation buildings, or on zone substation sites, including power transformers, circuit
breakers, disconnectors and projection systems.
Zone substation transformers above 1 MVA capacity have on-load tap-changers to regulate the bus voltages, with loads
typically kept below the manufacturer ratings. These transformers have been subject to normal and typical urban and
commercial load curves and cyclic loading.
Overhead Distribution
Large numbers of hardwood poles were historically used on the overhead network. Larch poles impregnated with creosote
were used in the late 1950s through to the 1960s in combination with hardwoods. Treated Corsican pine poles were used
from 1973 and concrete poles were also purchased from the mid-1970s. The main pole types used today are H5 treated
Radiata pine and pre-stressed concrete.
Over the past eleven years a large number of lines have been converted from 11kV to 22kV by changing the insulators. This
has largely been undertaken in rural areas experiencing high growth in irrigation demand and dairy conversions.
Underground Distribution
The majority of the high voltage underground cables are either 95mm2 or 185mm2 Aluminum although more recently
300mm2 Aluminum cables are being used for major urban feeders or to supply distribution switching stations. Smaller sizes
are being used for rural customer spurs.
Distribution Substations
Most customers are supplied from primary distribution substations at voltages of 11kV or 22kV. A small number of
customers are supplied from SWER systems operating at 6.6kV or 11kV and a very small number of remote customers from
distribution transformers on the 33kV sub-transmission system. However, as this arrangement constrains the operation of
the sub-transmission system, they are being progressively removed.
Substations are either ground mounted, outdoors or within an enclosure, or pole mounted. As our distribution area is
mainly rural, most substations are pole mounted. Most recent designs have used mini-subs, micro-subs, or the Pegasus
Modular configuration using a standalone transformer with HV and LV cable boxes and a separate shell for the HV and LV
switchgear.
MainPower has over 7,500 distribution transformers which cover a variety of manufacturers including Tyree, ABB, Astec,
Tolley and Wilsons. Large quantities of transformers were purchased between 1967 and 1973 due to the growth in the
distribution network at this time. Many of these were in the range of 10 to 30kVA.
Distribution Switchgear
There are a number of different types of circuit breakers and reclosers on the system, including bulk oil, SF6 and vacuum
types. All circuit breakers purchased since 1995 are remote controllable.
Most of the air break switches installed between 1950 and 1980 were Canterbury Engineering types 955, DA2, DA27, NL7
and NG10. More recently Schneider’s integrated spar mounted air break switches, and Electropar EPS2 switches have been
used. Sealed switches are replacing critical air break switches and are almost all remote controlled.
During the 1970s and 1980s ABB’s SD range of oil RMUs were used, followed in the 1990s by increased use of air-insulated
Holec MD series (Magnefix) switchgear. The Holec Xiria sealed air insulated range have also been used since 2000.
Load Control
We employ Landis & Gyr SFU-G and SFU-K ripple injection plant using Decabit code for load control and tariff switching.
The plants operate at an injection frequency of 283 Hz and all plants are GPS synchronised.
The majority of the receiver relays are in new Smart Meters or are Zellweger/Enermet RM3 installed between 1993 and
1997. The remainder are the later Landis & Gyr RC5000 series, and more recent purchases are RO3 type relays.

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MainPower New Zealand Limited Section 3 Assets Covered

Street Lights
Most street lights are controlled by ripple relays located at local low voltage distribution substations where the relays
receive a signal by ripple injection initiated from a light level sensor. Dedicated street light supply cables loop around a
number of lights from each control point. A small number of lights are controlled from local photocell sensors. Street light
relays are modern and reliable with extremely low reported failure rates.
SCADA
The Schneider Wonderware SCADA system will be replaced by an OSI Monarch platform by 2020. This is part of
implementing the OSI Advanced Distribution Management System.
MainPower’s first SCADA system used remote terminal units (RTUs) communicating with Conitel protocol and these have
now either been completely changed to more modern DNP3 RTUs or been slaved to more modern RTUs on site. All remote
sites are now communicating via the DNP3 protocol. Work is proceeding on new field devices with remote communication
facilities. We are committed to using the latest distribution automation technologies to improve system performance and
fault response times.
Communications
Our voice and data radio equipment has migrated to new systems over the past eight years and is operating reliably. Tait
voice radios and MiMOMax data radios are currently employed. During 2016 a lone worker and worker down function was
added to the voice radio platform through the use of portable radios working through the base vehicle radio.
Protection and metering systems
All modern zone substations use Areva, SEL or Siemens digital electronic protection systems. Older substations have GEC
electromechanical relays which are still reliable but have limited setting ranges and functionality. A number of individual
relays in these substations have been replaced in conjunction with circuit breaker replacements. We also own high voltage
metering systems for several large users including the Daiken MDF plant and McAlpines timber processing plant.
Power factor correction plant
MainPower has no system power factor correction installations of its own, however the Daiken NZ mill at Ashley has two
11kV capacitor banks and Transpower have installed power factor correction for voltage support on the 66kV bus at
Southbrook.
Property and Buildings
MainPower owns substation buildings, offices, administration buildings and operational buildings. All of our buildings are
well maintained. MainPower relocated to a new, purpose built, head office and works facility in June 2014.
Assets owned at Transpower Grid Exit Points
MainPower owns metering and communications equipment at Transpower GXPs which connect to our network, to monitor
load for load management and for revenue metering. All have Ion type meters, installed after 2000. MainPower’s ripple
injection plants are located in Transpower GXPs at Waipara, Ashley and Kaiapoi. We also have SCADA and local service
equipment associated with load control at these sites.
Mobile Substations and Generators
We have invested in a mobile diesel generation plant to assist with reducing the number of planned interruptions. The plant
is rated at 275kVA. The generator has been fitted on a tandem axle truck along with the transformer, protection systems
and connecting leads. The generator is used during planned work to maintain the supply to customers and it has enough
capacity to supply the average load of an urban transformer kiosk or can be connected to overhead lines at 11kV or 22kV
supplying up to 100 customers. We also have a smaller 88 KVA generator for use with low voltage customers. This is often
large enough to supply small subdivisions during maintenance.

3.3.3 Other Generation


MainPower owns and operates a 1MW generation asset located at Cleardale and is connected to the distribution network
owned and operated by Electricity Ashburton. The Cleardale site is operated, managed and maintained in alignment with
the MainPower network. This generation asset is identified as non-network and does not form part of MainPower
regulatory reporting.

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Asset Management Plan
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Section 4 – Service Levels


This section outlines MainPower’s approach to service levels, including performance monitoring aligned with yearly
business planning processes and the long-term strategic direction of the business. In this section, we explain how we have
determined the key performance indicators, our targets for the planning period, and how we have set them.
MainPower New Zealand Limited Section 4 Service Levels

Contents
4. Service Levels ............................................................................................................................ 4
4.1 Overview of our Services............................................................................................................ 4
4.1.1 Using our Approach to Service Levels to Underpin Decision Making .........................................................................4
4.1.2 Achieving Service Level Targets...................................................................................................................................4
4.2 Engagement and Services Targets .............................................................................................. 4
4.2.1 Setting Performance Targets .......................................................................................................................................4
4.2.2 Realising the Benefits of Monitoring and Improving Service Delivery ........................................................................4
4.2.3 Resolving Customer Complaints ..................................................................................................................................5
4.3 Network Performance Targets ................................................................................................... 5
4.3.1 Measuring and Monitoring Quality of Supply .............................................................................................................5
4.3.2 Resilience ....................................................................................................................................................................6
4.3.3 Feeder Reliability .........................................................................................................................................................6
4.4 Efficiency and Effectiveness Performance Targets ...................................................................... 7
4.4.1 Maintaining our Assets ................................................................................................................................................7
4.4.2 Operational Effectiveness ...........................................................................................................................................7
4.4.3 Financial Efficiency ......................................................................................................................................................7
4.5 Safety and Environment Performance Targets ............................................................................ 7
4.5.1 Keeping Our Network and the Public Safe ..................................................................................................................7
4.5.2 Complying with Our Environmental Responsibilities ..................................................................................................8
4.5.3 Complying with New Zealand Legislation....................................................................................................................8
4.6 Benchmarking ............................................................................................................................ 9
4.7 Changes in Forecast Expenditure ................................................................................................ 9

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MainPower New Zealand Limited Section 4 Service Levels

List of Tables
Table 1 Indicators of Service Performance ..................................................................................................................................5
Table 2 Indicators of Customer Complaints Resolved ..................................................................................................................5
Table 3 Indicators of Reliability of Supply ....................................................................................................................................6
Table 4 Indicators for Restoration of Supply ................................................................................................................................6
Table 5 Feeder Reliability .............................................................................................................................................................7
Table 6 Areas of focus for asset management Indicators ............................................................................................................7
Table 7 Indicators of Operational Effectiveness ..........................................................................................................................7
Table 8 Indicators of Financial Efficiency .....................................................................................................................................7
Table 9 Indicators of Safety Performance ....................................................................................................................................8
Table 10 Indicators of Environment Performance .......................................................................................................................8
Table 11 Indicators of Legislative Compliance .............................................................................................................................9
Table 12 Benchmark Organisations..............................................................................................................................................9

List of Figures
Figure 1 Feeder Reliability Planned and Unplanned - Typically ...................................................................................................6

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MainPower New Zealand Limited Section 4 Service Levels

4. Service Levels
4.1 Overview of our Services
Creating a network for the future requires an understanding of what our customers and stakeholders expect from us.
MainPower’s approach to stakeholder engagement was outlined in Section 2. Ultimately, our goal is to remain relevant to
our customers and local community. That goal requires us to adopt new and different ways of thinking.

4.1.1 Using our Approach to Service Levels to Underpin Decision Making


Levels of required service are a significant component of asset management and underpin all lifecycle decision making.
Levels of service are the outputs that a customer receives from an organisation.

4.1.2 Achieving Service Level Targets


It is expected that all service target levels presented will be achieved, other than in the event of unanticipated extreme
circumstances.

4.2 Engagement and Services Targets


Customer engagement is increasing in significance as the electricity industry evolves and industry participants place more
value on being relevant. Creating a strong, lasting relationship with customers today means will ensure we stay relevant
tomorrow. Searching for ways to engage with customers (including using innovative strategies and campaigns) has resulted
in a shift of thinking.
By listening to our customers and community, we have developed a clear understanding of the measures of performance
that are most important to them and how MainPower is currently performing against those measures. Summary insights
from recent customer research indicate that both residential and business customers view electricity reliability as a key
performance deliverable.
MEASURE OF PERFORMANCE SATISFACTION RATING TARGET
2020-2029

Continuity – keeping the power on 95%


Price – keeping costs down 70%
Restoration – reducing the length of time when power is off 85%
Quality – keeping flickering or dimming lights to a minimum 85%
Accessibility – easy to contact my provider when needed 85%
Communication – keeping you informed of the electricity network 85%

One future innovation to help us engage with our customers and our community
One future initiative to improve how we engage with our customers and our community is the introduction of a customer
panel. That panel will have representatives from our various customer and stakeholder segments. We intend to use the
panel to gather feedback from a broad range of our stakeholders and will contribute towards our strategic decision making.

4.2.1 Setting Performance Targets


Our connection agreement sets out the terms and conditions for delivery of line services to customers for the conveyance
of electricity. We use customer feedback and engagement activities to ensure that customers’ needs are reflected in service
standards. Also informed by direct customer service interactions, customer service targets are set to at least maintain the
existing level of service across the planning period.

4.2.2 Realising the Benefits of Monitoring and Improving Service Delivery


Monitoring and improving service delivery is vital if we are to establish trust and goodwill with customers and our
stakeholders and maintain our reputation.
We take on different roles depending on the context or place where we interact with customers. We loosely group these
roles into service provider, community partner, and future focused. Our service provider role primarily deals with the

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MainPower New Zealand Limited Section 4 Service Levels

customer goal of ‘keeping the power on’. It includes direct interactions we have with customers around the connection and
maintenance of their power supply. These core business activities make up a large portion of our contact with customers.
MainPower monitors service performance through a Voice of the Customer (VoC) research programme. A VoC programme
is a process of understanding how customers perceive their interactions with MainPower. This understanding lets us
establish a continual improvement process in which we use direct customer feedback to tailor the actions of our frontline
staff as well as the more strategic actions of our senior people.
PERFORMANCE INDICATOR TARGET
2020 – 2029
Customer Easy Score – effort required in dealing with MainPower4 2.5
CUSTOMER SATISFACTION5
Friendliness of MainPower staff 4.5
Quality of work completed 4.5
Timeliness of service 4.5
Communication received throughout 4.5
Reliability of MainPower staff 4.5
The final price 4
SERVICE DELIVERY – RESPONSE
Time taken for new power supply quote 15 working days
Time taken for new connection application to be processed 3 working days
Fault response time from first contact 2 hours
Table 1 Indicators of Service Performance

4Measure: 1 – Very low effort, 5 – Very high effort


5Measure: 1 – Very dissatisfied, 5 – Very satisfied

4.2.3 Resolving Customer Complaints


To achieve best practice service standards, MainPower has a free complaints resolution process to resolve issues customers
may have with our activities and services. The complaints process is also a way of communicating with, and receiving
feedback from, our customers and the community.
More broadly, complaints or ‘customer feedback’ are typically an opportunity to develop a relationship with customers by
demonstrating the value placed on them by taking their concerns seriously and dealing with their concern effectively. A
robust complaints process also offers an opportunity to fix problems and prevent them from re-occurring, which ultimately
improves customer satisfaction.
PERFORMANCE INDICATOR TARGET
2020 - 2029
Percentage of complaints resolved by end of day one 35%
Percentage of complaints resolved within two seven working days 50%
Percentage of complaints resolved within seven to twenty working days 10%
Percentage of complaints resolved after more than twenty working days Less than 5%
Table 2 Indicators of Customer Complaints Resolved

4.3 Network Performance Targets


4.3.1 Measuring and Monitoring Quality of Supply
Quality of supply performance targets guide investment decisions and ensure that we continue to meet our customers’
expectations and regulatory requirements.
MainPower’s key reliability measures are:
- SAIFI (System Average Interruption Frequency Index), which measures the average supply interruptions for each
customer during the year.
- SAIDI (System Average Interruption Duration Index), which measures the average minutes that a customer is
without power during the year.
We also measure and monitor fault rates at different voltages, which are measured as number of faults per 100 km.

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Reliability performance targets are derived from a combination of historical performance, network analysis, benchmarking
with other lines companies and customer consultation.
PERFORMANCE INDICATOR TARGET (per year)
2020 - 2029
SAIDI Planned (normalised) 260
SAIDI Unplanned (normalised) 80
SAIFI (normalised) 1.73
Unplanned faults per 100kms (during the year) 6.15
Table 3 Indicators of Reliability of Supply

Target values have been estimated using the budgeted work for the 10 year planning period. We are forecasting a
significant increase in maintenance, replacement and growth related work being undertaken in 2019 and increasing to
sustained levels over the 10 year period. Coupling this estimate with an increased focus on efficiently planning and
managing outages to minimise the overall impacts to customers, it is estimated that the average outage duration for
customers within the network is likely to increase beyond currently observed levels. Unplanned outages however, are
expected to be consistent with what has been previously observed.

Future Innovations to improve supply Quality of Supply


MainPower is committed to improving quality of supply, with a specific focus on improving the customer experience. In a
recent customer survey, 70% of respondents could recall at least one power outage (planned or unplanned) in the last 12
months. This increased to 95% for business customers. These results are based on customer perceptions and may not
necessarily match actual outages. In addition to improving our communication channels and the way we keep customers
informed, we plan to engage with customer groups and set agreed service standards based on what’s important to them.
The plan and standards may include location specific service levels, based on the number and duration of outages each
year.

4.3.2 Resilience
Resilience is the measure of the impact environmental and external influences has on the network resulting in an outage to
our customers. Customer research suggests that restoring electricity supply or reducing the length of outages is off is
important.
PERFORMANCE INDICATOR TARGET
2020 – 2029
Outages (External and Unplanned) – percentage restored in under 3 hours 97%
Table 4 Indicators for Restoration of Supply

4.3.3 Feeder Reliability


MainPower uses Feeder Reliability as a metric to understand if there are any individual feeders where the reliability of the
feeder outside of a typical normalized reliability standard for that feeder.

Figure 1 Feeder Reliability Planned and Unplanned - Typically

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MainPower New Zealand Limited Section 4 Service Levels

PERFORMANCE INDICATOR TARGET


2020 – 2029
Feeder Reliability less than target per Feeder Per Year 8% of SAIFI
Table 5 Feeder Reliability

4.4 Efficiency and Effectiveness Performance Targets


Our efficiency and effectiveness targets are achieved by:
- Efficiently utilising assets and resources;
- Managing costs; and
- Meeting financial targets, consistent with our Energy Companies Act obligation to operate as a successful
business.

4.4.1 Maintaining our Assets


PERFORMANCE INDICATOR TARGET
2020 – 2021
Asset Management Standards Implement Asset Fleet Strategies for all asset classes.
Asset Health Establish and monitor asset health for all asset classes.
Apply condition and risk-based maintenance and replacement
Asset Maintenance and Replacement
programs.
Regional Master Planning Extend network planning to provide region specific master plans.
Engineering Design Develop standard engineering designs across main asset classes.
New Energy Future Monitor emerging technologies and conduct scenario planning.
Table 6 Areas of focus for asset management Indicators

4.4.2 Operational Effectiveness


PERFORMANCE INDICATOR TARGET
2020 – 2029
Maintenance 95%
Replacement CAPEX 95%
Development CAPEX 95%
Field staff utilisation 76%
Table 7 Indicators of Operational Effectiveness

4.4.3 Financial Efficiency


MainPower’s economic approach is to operate at the lowest sustainable cost while still maintaining high levels of safety
performance for our customers and our staff.
PERFORMANCE INDICATOR TARGET
2020 – 2028
Average line charge per customer $1,244
Average kWh per customer 15,078
Table 8 Indicators of Financial Efficiency

4.5 Safety and Environment Performance Targets


MainPower’s objective is to embed a health, safety, environment and quality culture that delivers safe, productive and
environmentally responsible quality service.

4.5.1 Keeping Our Network and the Public Safe


Network Safety
Making safety a priority means providing a safe network and a healthy work environment. This is achieved by:
- Managing and communicating hazards and risks associated with the workplace, the electricity network and our
business activities effectively;
- Ensuring that effective planning is in place for all projects;

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- Ensuring that suitable Personal Protective Equipment (PPE) is provided to employees and is worn in line with
industry guidelines and MainPower’s requirements; and
- Ensuring that employees have an appropriate level of training, skill and knowledge to carry out their work safely.
We design, construct, commission, operate and maintain the electricity network and other company assets to ensure that
they are safe, fit for purpose, and do not pose a risk to health. We also participate in industry-related benchmarking of
safety incidents to provide a basis for measuring our performance.
Public Safety
MainPower promotes public safety around electricity in the MainPower region so that the community is very aware of
safety issues. This includes collaborating with industry groups to develop a national strategy focused on agreed priority
areas, with actual delivery at a local company level. Priority areas include asset security (willful interference, vandalism and
theft of metal, as well as trespass) and accidental contact (such as overhead and underground cables, cars hitting poles),
with a focus on high-risk risk audiences, including:
- Tradespeople and outdoor workers (such as farmers);
- Contractors and other non-electrical workers;
- Young males aged 16 to 25;
- Emergency services personnel; and
- Children.
PERFORMANCE INDICATOR TARGET
2020 – 2028
Number of work-related accidents resulting in lost time Nil
MainPower has implemented and audited its approach to network safety No harm to the public
directly caused by
MainPower assets.
Public safety communications contribute to positive behavioural change8 28%
Table 9 Indicators of Safety Performance

8Measure: Percentage of respondents who changed or considered their behaviour due to a safety message from MainPower.

4.5.2 Complying with Our Environmental Responsibilities


MainPower places significant emphasis on being an environmentally responsible company and complying with our
responsibilities. Key environmental performance indicators are outlined in the table below.
PERFORMANCE INDICATOR TARGET
2020 – 2029
Understand our carbon footprint and other emissions Develop policies for
the measurement and
management of C02
and SF6 emissions.
Number of uncontained oil spills 0
Number of breaches of resource consent requirements 0
Table 10 Indicators of Environment Performance

4.5.3 Complying with New Zealand Legislation


MainPower is subject to legislative requirements under the following legislation:
- Building Act 2004
- Civil Defence and Emergency Management Act 2002
- Commerce Act 1986 (including the Electricity Information Disclosure Determination 2012)
- Electricity Act 1992
- Electricity Industry Act 2010
- Health and Safety at Work Act 2015
- Local Government Act 2002
- Public Works Act 1981
- Resource Management Act 1991
MainPower is also subject to regulatory requirements and codes of practice under the following legislation:

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- Electricity (Hazards from Trees) Regulations 2003


- Electricity (Safety) Regulations 2010
- Health and Safety Regulations (various)
- NZ Electrical Codes of Practice
PERFORMANCE INDICATOR TARGET
2020 – 2029
Number of regulatory non-compliance enquiries 0
Table 11 Indicators of Legislative Compliance

4.6 Benchmarking
The objectives of benchmarking is to observe and seek to understand how MainPower is performing as an organisation
when compared with other EDB business. MainPower has been benchmarked within a group of seven network business,
detailed below.

Organisation ICP/km ICP's


Alpine Energy 7.7 32,975
EA Networks 6.2 19,217
Eastland Network 6.5 25,512
Horizon Energy Distribution 9.9 25,000
MainPower NZ 8.1 40,841
Marlborough lines 7.5 25,374
Network Tasman 11.0 39,578
Top Energy 7.8 31,641
Median 7.7 28,577
Table 12 Benchmark Organisations

MainPower will assess itself against these EDBs as a minimum, but not limited to, profits, price, expenditure and network
reliability. All companies are complex and other factors can significantly impact network performance. Therefore, we will
assess ourselves using:
• Network density – indicated by the ratio pf customers connections per circuit kilometre; and
• Size of the Network – indicated by the total number of customers connection served.

4.7 Changes in Forecast Expenditure


A change in forecast expenditure that may materially affect performance definitions is not expected within the reporting
year. Any instances where expenditure may affect network performance in the future will be reported and internal
response defined and implemented.

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Asset Management Plan
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Section 5 – Network Development Planning


This section describes MainPower’s approach to network development planning. Four aspects help to formulate our
planning: analysis of maximum demands, network power flows, specific customer requests and demographic estimates.
MainPower New Zealand Limited Section 5 Network Development Planning

Contents
5. Network Development Planning ................................................................................................ 4
5.1 Network Development Planning Criteria .................................................................................... 4
Capacity .......................................................................................................................................................................5
Power Quality Compliance ..........................................................................................................................................5
Security ........................................................................................................................................................................5
Reliability .....................................................................................................................................................................5
Planning Criteria Summary ..........................................................................................................................................5
5.2 Security of Supply Classification ................................................................................................. 6
Zone Substation Security .............................................................................................................................................6
Feeder Classifications ..................................................................................................................................................6
Security Level Selection ...............................................................................................................................................7
5.3 Strategies for Cost Efficiency ...................................................................................................... 7
5.4 Use of Standard Designs............................................................................................................. 7
5.5 Strategies for Energy Efficiency .................................................................................................. 7
5.6 Project Prioritisation .................................................................................................................. 8
5.7 Demand Forecasting .................................................................................................................. 8
Southbrook Grid Exit Point (GXP) ................................................................................................................................9
Kaiapoi Grid Exit Point (GXP) .......................................................................................................................................9
Ashley Grid Exit Point (GXP) ......................................................................................................................................10
Culverden Grid Exit Point (GXP) ................................................................................................................................10
Waipara Grid Exit Point (GXP) ...................................................................................................................................11
Network Constraints .................................................................................................................................................11
Forecast Impact of Distributed Generation and Demand Side Management ...........................................................12
5.8 Network Development Projects ............................................................................................... 13
Major Projects ...........................................................................................................................................................13
GXP Projects ..............................................................................................................................................................13
Reinforcement Projects .............................................................................................................................................13
Network Project Cost Summary ................................................................................................................................14
Network Project Summaries .....................................................................................................................................14
Distribution Innovation .............................................................................................................................................15
5.9 Distributed Generation Policies ................................................................................................ 15
5.10 Uneconomic Lines .................................................................................................................... 15
5.11 Non-Network Solutions............................................................................................................ 15
Load Control ..............................................................................................................................................................15
Demand Side Management .......................................................................................................................................16
Distributed Energy Resources (DER) .........................................................................................................................16

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MainPower New Zealand Limited Section 5 Network Development Planning

List of Tables
Table 11 Summary of Projects ...................................................................................................................................................15

List of Figures
Figure 1 Southbrook GXP Forecasting ..........................................................................................................................................9
Figure 2 Kaiapoi GXP Forecasting .................................................................................................................................................9
Figure 3 Ashley GXP Forecasting ................................................................................................................................................10
Figure 4 Culverden GXP Forecasting ..........................................................................................................................................10
Figure 5 Waipara GXP Forecasting .............................................................................................................................................11

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MainPower New Zealand Limited Section 5 Network Development Planning

5. Network Development Planning


Network development planning is a significant focus for MainPower within our asset management framework and
processes. Considering the changes already identified, the perceived way the MainPower network will be used in the future
and the services that will be required by our customers (current and new market participants) will mean continuing to apply
the current traditional distribution network approach of demand-based deterministic planning to network development
planning will no longer meet the future needs.
The underlying elements and influences of these changes from the perspective of an EDB are seen as:
- Significantly greater integration between distributed generation, transmission and energy storage on the network,
together with increased interaction with active traditional customers;
- New technologies producing variable power sources, two-way power flows and new demands that are already
observed to be creating serious challenges on networks internationally;
- The impact of new commercial parties, models and business platforms working through both the distribution
network and through the ‘internet of things’ but impacting on use of the network;
- A growing focus on energy communities, peer-to-peer trading, and local markets;
- The impact of non-linear loads, such as rapid EV chargers, on standard network infrastructure and the ability to
manage the significant demand peaks and power quality issues these introduce at the low voltage distribution level.
- The potential for use of separated distribution micro grids where these are the most economical solution when
considering renewals or new supplies; and
- The national transition to a low-carbon economy.
The above can be summarised as highlighting the need to move from the traditional passive distribution network to an
active network that has more dimensions.
In response to this, MainPower is currently re-evaluating its network development planning methodology. In simplistic
terms we see the need to move from the traditional distribution network approach of demand-based deterministic planning
to scenario-based planning. To achieve this, new skills and systems will be required. We are actively engaged in identifying
how these requirements will be met through learning from the experiences of others (both locally and internationally who
have already addressed or are actively addressing these challenges) and by participating in the results, learnings and tools
being made available from industry working groups such as GREEN Grid, ENA and EEA forums.
This evolution of our network development approach will help us better understand the range of capacity and service
requirements the network will need to deliver and help minimise the risk of uneconomic network development.
We also recognise that as part of this new future for distribution networks, there will be increased opportunities for non-
network solutions (where economically viable) and the opportunity for existing and new market participants to provide
energy solutions. MainPower recognises the need to identify these opportunities in a timely manner to facilitate market
response and potentially seek providers of non-network solutions.
While we review our network development planning process, our network development plans are primarily driven by
safety, security of supply, reliability and compliance requirements and will evolve to include future requirements for the
North Canterbury region.
The following section identifies the current deterministic planning process with some innovation based on our future
thinking and early movements to a new model of network development planning.

5.1 Network Development Planning Criteria


Our network development is informed by our defined levels of service and performance, planning criteria and standard
design implementations, which are a function of:
- Capacity;
- Power Quality Compliance;
- Security; and
- Reliability.
We use options analysis to consider alternative development and engineering solutions. When selecting a solution, we
consider cost and sustainability.

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MainPower New Zealand Limited Section 5 Network Development Planning

Capacity
We must ensure there is sufficient capacity available to meet network peak load. This is provided through network capacity
in conjunction with our demand side management capability.
We follow a process of forecasting network demand and assessing this demand against our security of supply standard to
establish areas where we may experience a shortfall in capacity at a defined security level.
We plan to implement and monitor security performance indicators to show the capacity we provide at each security level.

Power Quality Compliance


One of the key criteria for distribution development planning is power quality compliance, such as voltage. Voltage
performance is monitored by SCADA using field voltage measurements, load flow analysis, manual voltage checks (under
normal and abnormal configurations) and investigations into customer complaints about power quality.

Voltage regulators are used at 11kV and 22kV to assist in maintaining the voltage within the statutory voltage limits. Voltage
regulators are generally set to control in the band 100% to 102% of nominal voltage at sites with 1.25% control steps.
Where either line drop compensation or 2.0% tap-changers are employed, voltage regulation is set to control within the
band 11,000 – 11,300V. Line drop compensation is rarely used because of the large customer spread along the distribution
lines.

Systems are generally designed to have less than 10% total voltage drop to the network connection point to allow for
additional voltage drop, when the system is being supplied in an abnormal configuration e.g. during an equipment outage.
In normal operating configurations this also allows for the bus voltage to be reduced by 1% to facilitate a higher penetration
of distributed generation.

Security
Security of supply is the ability of the network to meet normal demand under contingency events, such as equipment
failure. The more secure the network, the greater the ability to continue to provide supply during a contingency or perform
restoration from a fault or series of faults.
Note that security of supply differs from reliability. Reliability is a measure of how the network actually performs and is
measured through indices such as the number of times supply to customers is interrupted.

Reliability
The number and duration of service interruptions are of primary interest from the customers’ point of view, as specified in
Section 3. MainPower uses reliability statistics and targets to identify if and where system improvement is needed. We
select development options based on the lowest whole-of-life cost to provide the functionality and meet target reliability
outcomes.

Planning Criteria Summary


Our planning criteria for each part of our network is summarised below. While our development planning attempts to
anticipate each of these criteria as a trigger for network investment, the explanations below provide a useful summary of
the network consequences which lead to extension or upgrade decisions.

Project Type Criteria Capacity Reliability Security Voltage


Voltage at consumers’
Insufficient capacity to Establish or maintain
LV Lines & Cables Voltage complaints premises consistently drops
supply connection. defined level or security.
below 0.94pu.
Where loggers indicate
over-loading.
Greater than 75% rating
Distribution Establish or maintain Voltage complaints or
where transfer capacity Voltage complaints
Substations defined level or security. modelled voltage levels low.
required.
New loads would exceed
thresholds.
Distribution Lines & Peak load under emergency More outages than Establish or maintain Load flow analysis highlights
Cables conditions exceeds capacity. targeted. defined level or security. voltage regulation problems.

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Design review highlights


inherent weakness e.g.
prone to snow damage.
Max demand consistently
exceeds 100% of nameplate Establish or maintain
Zone Substations Less than target reliability. Voltage regulation issues.
rating and no non-network defined level or security.
solution available.
Table 1 Summary of Planning Criteria

5.2 Security of Supply Classification


The following sections describe how we define security of supply classifications for zone substations and feeders.

Zone Substation Security

Zone substations are classified for security according to the following table:

Substation Classification Targeted Duration for First Interruption Targeted Duration for Second Interruption
AAA None Repair time

AA+ 15 seconds Repair time

AA 45 minutes Repair time

A1 Isolation time Repair time

A2 Repair time Repair time


Table 2 Security of Supply Zone Substation Restoration Times

Zone Substation Classification Descriptions

AAA Supply is uninterrupted in the event of the outage of one major element of the subtransmission network. Load can be transferred to other
substations without interruption by switching on the network if necessary to avoid exceeding ratings.

AA+ Supply may be lost in the event of the outage of one major element of the subtransmission network. Supply is restored automatically within 15
seconds by automatic switching at subtransmission or distribution level.

AA Supply may be lost in the event of the outage of one major element of the subtransmission network. Supply can be restored within 45 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.

Feeder Classifications
Distribution Feeders are classified according to the following table:

Classification Description
F1 Large Industrial

F2 Commercial / CBD

F3 Urban Residential

F4 Rural

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F5 Remote Rural
Table 3 Security of Supply Load Types

Security Level Selection


The table below shows the criteria and selection process for zone substation security level, based on the load type. This is
applied subject to economic and technical feasibility.

Zone Substation Maximum Demand


Load Type
< 1 MVA 1 – 5 MVA 5 – 12 MVA >12 MVA
F1 AA AA AA+ AAA

F2 AA AA AA+ AAA

F3 AA AA AA AA

F4 A1 A1 A1 -

F5 A2 A2 - -
Table 4 Selection Process for Zone Substation Security Level

5.3 Strategies for Cost Efficiency


- We employ standard designs for construction of our 22kV and 11kV overhead line structures while ensuring that
our designs comply with the Electricity Regulations and the relevant New Zealand Standards and Codes of Practice.
All new overhead lines are designed to AS/NZS7000:2016.
- We have standardised our design of 11kV underground cable and ground-mount substations, and the key
components of our network, such as distribution transformers, cable, protection relays, battery chargers and fuses,
to improve efficiency.
- We are remodelling our new connections process to become more customer focussed and are engaged in a
business transformation process of our scheduling and planning systems to improve our workflow processes.
- We are collaborating with other Electricity Distribution Businesses to look for cost efficiencies from the
standardisation of procedures, work practises and network access control requirements.

5.4 Use of Standard Designs


Standard designs are used to achieve, and are aligned with, MainPower’s asset management objectives to continue to
deliver a defined level of service to customers in a safe, reliable, economically efficient and sustainable manner that meets
the expectations of stakeholders. Standard designs exist for all MainPower overhead structures. Work is currently being
undertaken to further standardise our engineering solutions. Standard designs are identified through:
- Total cost of ownership;
- Economies of scale;
- Compliance;
- Service levels;
- Security of supply; and
- Safety.

5.5 Strategies for Energy Efficiency


MainPower has a focus on improving the energy efficiency of its network through reducing losses where reasonably
practical, placing a high value on efficiency parameters when purchasing new equipment and on education programs to
improve demand side management.
All conversions from 11kV to 22kV will cause a replacement transformer to be installed that meets the new Minimum
Energy Performance Standard (MEPS). Additionally, we consider loss capitalisation when purchasing transformers. As a

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MainPower New Zealand Limited Section 5 Network Development Planning

company, MainPower actively promotes energy efficiency in the community through consumer education and our
community sponsorship program (insulation and energy efficiency solutions). We are actively engaging with our customers
and assessing demand side management concepts in regard to emerging technologies and consumer behaviour.

5.6 Project Prioritisation


A risk-based approach is applied to establish project prioritisation, in combination with other factors such as:
- Compliance and Safety;
- Meeting service obligations and targets defined by our customers;
- Cost benefit analysis; and
- Options analysis.
In general terms, development projects are prioritised as follows:
- Addressing compliance, health, safety and environmental issues;
- Customer driven projects for new connections or upgrades;
- Providing for load growth; and
- Meeting customer service levels.
Prior to the commencement of each planning period, potential projects for the following ten years are identified. Inputs to
the prioritisation process include:
- Determining the primary driver for the project;
- Impact on customers should the project not proceed or be deferred;
- Seasonal requirements;
- Cost and funding implications;
- Alternative non-network solutions; and
- Planning uncertainties.

5.7 Demand Forecasting


Our network demand forecasting process forecasts demand at Transpower’s North Canterbury Grid Exit Points (GXP) and
MainPower’s zone substations over the next ten years.
When developing demand forecasts, a number of key inputs are applied including:
- Population and household projections obtained from Statistics New Zealand;
- Local District Scheme and Community Plans;
- Notified changes in land use designations;
- Known commercial, residential and industrial developments;
- Historical electrical demands;
- Non-network solutions (such as demand management);
- Historical extreme movements in temperature and rainfall where this impacts on peak demand;
- Expected economic developments; and
- Emerging technology adoption, such as electric vehicles.
The table below shows the 10-year load forecasts for our zone substations:
Zone Peak Capacity
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Substation (MVA)
Southbrook* Winter 2 x 16/22 22.9 24.0 25.1 32.9 37.2 38.3 39.5 40.7 41.9 43.2
Rangiora North Winter 5/7 7.0 7.0 7.0
Burnt Hill* Summer 2 x 11.5/23 15.7 16.0 16.3 16.6 17.0 17.3 17.6 17.9 18.3 18.6
Swannanoa* Summer 2 x 11.5/23 16.0 16.3 16.6 16.9 17.2 17.5 17.9 18.2 18.5 18.9
Amberley Winter 2 x 3/4 5.6 4.3 4.5 4.6 4.7 4.9 5.0 5.2 5.3 5.5
MacKenzies Rd Summer 4 2.5 2.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5
Greta Winter 4 1.3 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4
Cheviot Summer 4 3.5 3.6 3.7 3.8 3.9 4.0 4.1 4.2 4.3 4.4
Hawarden Summer 4 3.6 3.7 3.8 3.9 4.0 4.1 4.2 4.3 4.4 4.6
Ludstone Rd* Winter 2 x 4/6 5.8 5.9 5.9 6.0 6.0 6.1 6.2 6.2 6.3 6.4
Leader Summer 2 1.6 1.6 1.7 1.7 1.8 1.8 1.9 1.9 2.0 2.1
Oaro Winter 0.5 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.5

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MainPower New Zealand Limited Section 5 Network Development Planning

Mouse Point Summer 2 x 13 14.7 14.8 14.9 15.1 15.2 15.3 15.4 15.5 15.6 15.7
Hanmer Winter 4/6 + 2.5 4.7 5.2 5.2 5.3 5.4 5.4 5.5 5.6 5.7 5.7
Lochiel Winter 0.3 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Marble Quarry Winter 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
* Capacity is based on a single transformer bank (i.e. N-1 criteria).
Colour Key: < 75% of capacity utilised 75-100% of capacity-utilised >100% of capacity utilised
Table 5 Zone Substation 10-year Load Forecast

Southbrook Grid Exit Point (GXP)

Peak Demand Forecast for Southbrook 33kV & 66kV


50
66kV High Growth 66kV Medium Growth 66kV Low Growth
33kV High Growth 33kV Medium Growth 33kV Low Growth
45

40
Peak Demand (MW)

35
Rangiora west 66kV
commissioned.

30

25
Av erage winter.
Mild winter 2 MW peak load
transf er to Ashley
20
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029
Year

Figure 1 Southbrook GXP Forecasting

Kaiapoi Grid Exit Point (GXP)

Peak Demand Forecast for Kaiapoi


40
High
35 Growth
Medium
30 Growth
Peak Demand (MW)

Low
25 Growth

20

15 Load Transf er from


Kaiapoi to Southbrook

10

0
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

Year

Figure 2 Kaiapoi GXP Forecasting

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MainPower New Zealand Limited Section 5 Network Development Planning

Ashley Grid Exit Point (GXP)

Peak Demand Forecast for Ashley


20
Medium Load Transf er from
18
Growth Amberley
16 Low
Growth
14
Peak Demand (MW)

12 Load Transf er from


Load Transf er to
Southbrook
Southbrook
10

8 Load Transf er from


Southbrook
6

0
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029
Year

Figure 3 Ashley GXP Forecasting

Culverden Grid Exit Point (GXP)

Peak Demand Forecast for Culverden


30
High Growth Conv ersion of Balmoral
f orest area to irrigation
25
Medium
Growth
Peak Demand (MW)

20 Low Growth

15
Kaikoura GXP combined into Piping of Amuri
Culv erden GXP irrigation scheme

10

0
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

Year

Figure 4 Culverden GXP Forecasting

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MainPower New Zealand Limited Section 5 Network Development Planning

Waipara Grid Exit Point (GXP)

Peak Demand Forecast for Waipara 33 kV & 66 kV


10
Load transfer to Ashley
9

7
Peak Demand (MW)

4 Medium Growth 33kV


Low Growth 33kV
3
Medium Growth 66kV
2
High Growth 66kV
1

0
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

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2027
Year

Figure 5 Waipara GXP Forecasting

Network Constraints
The following network constraints exist on the MainPower distribution network.
Element Location Constraint Proposed Remedy
GXP Southbrook Achieving Transpower’s load requirements
during a half bus outage is very difficult. • Discuss revised requirements and protection changes with
Transpower to raise the load limit – Completed.
• Continue to monitor load growth and opportunities for
distributed generation.
• Transition Southbrook from a 33kV to 66kV (FY21) and
develop further 66kV interconnections between Waipara,
Southbrook and Kaiapoi.

Sub- Southbrook to Thermal limit on the loading capacity of


transmission Waipara Rangiora North substation when supplied • Upgrade of the Southbrook substation (FY21) combined with
from Waipara rather than Southbrook. reinforcement projects will allow Rangiora North to be
decommissioned in FY23.

Cheviot to This circuit is limited by voltage drop and


Kaikoura the capacity of in line voltage regulators at • Implement an interim voltage improvement solution using
Claverley. It can only marginally supply reactive power support at Ludstone in FY20. The upgrade
Kaikoura during an outage of the normal from 33kV to 66kV from Cheviot to Oaro in FY20 will
Transpower 66 kV supply, even with the complement this to provide a higher capacity solution.
maximum available load control.
Zone Southbrook The Southbrook zone substation exceeds it’s
Substation 22MVA N-1 rating during peak winter • A specific Southbrook bus load control target has been
periods. implemented to maximise the time the load is kept within
the N-1 rating. Approximately 2MW of load will be
transferred to Ashley before winter 2019. The Southbrook
zone substation will be upgraded to 66kV (starting FY20).

Rangiora North The Rangiora North substation operates up


to its full rated load and load is increasing. • The substation will be decommissioned following upgrade of
the Southbrook zone substation.

Amberley The Amberley zone substation is


approaching full load. This is acceptable in • Load will be reduced through load transfer to Transpower’s
the short term as it is double banked and Ashley GXP in FY20, and the MacKenzies Road substation in
there are reliable alternative supplies from FY23.
other zone substations to supply most of
this area.

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MainPower New Zealand Limited Section 5 Network Development Planning

Element Location Constraint Proposed Remedy


Leader Increased irrigation growth will exceed the
transformer rating by the end of the • Upgrade the Cheviot to Oaro circuit to 66kV will double the
planning period. substation rating.

Mouse Point This substation has a peak load of 15 MVA


and is slowly rising. This is beyond its 13 • MainPower has installed emergency control on irrigation
MVA N-1 capacity. loads in this region to allow all but irrigation loads to be
restored on a single 13 MVA transformer. A spare 8MVA
transformer is held as a backup. Rebuild of the substation on
a new site at 66/22kV is forecast around the end of the
planning period.

Table 6 MainPower Network Constraints

Forecast Impact of Distributed Generation and Demand Side Management


All demand forecasts take into consideration the impact of existing and proposed distributed generation known to
MainPower through engagement with our customers. This includes energy efficiency initiatives, with the major contributor
being irrigation schemes converting to piped irrigation. Our load forecasting process considers the impact of the Demand
Side Management scheme MainPower already employs.

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MainPower New Zealand Limited Section 5 Network Development Planning

5.8 Network Development Projects


The tables below show the major and reinforcement projects for the 10-year planning period:

Major Projects
Project Cost ($,000)
Project Title
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Ludstone Zone Substation 11kV Switchgear Replacement 660
Kaikoura Zone Substation Transformer Fan Upgrade 49
Cheviot to Oaro Subtransmission Line Upgrade 150 716
Ludstone Zone Substation Capacitors 228
Kaikoura Zone Substation Capacity Upgrade 4,000
Southbrook 66kV Substation Upgrade 1,500 5,100
Amberley Zone Substation 33kV Security Upgrade 50 785
Southbrook 33kV Substation Decommissioning 248
Rangiora North Zone Substation Decommissioning 50
Ashley to Tuahiwi 66kV Subtransmission Line - Stage 1 1,250
Ashley to Tuahiwi 66kV Subtransmission Line - Stage 2 740
Southbrook to Tuahiwi 66kV Subtransmission Line - Stage 1,242
1
Southbrook to Tuahiwi 66kV Subtransmission Line - Stage 1,512
2
Tuahiwi 66/11kV Zone Substation 1,000 5,000 1,776
Harwarden 33kV Zone Substation Rebuild 2,500 2,500
Mouse Point Zone Substation Rebuild 6,000
Hanmer 33kV Subtransmission Line Conductor Upgrade 150 150 150
Amberley 66kV Zone Substation Rebuild 3,000 3,000
Major Project Subtotals 2,559 6,829 248 1,300 3,240 4,892 6,512 8,776 3,000 6,150
Table 7 Major Projects

GXP Projects
Project Cost ($,000)
Project Title
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Kaiapoi GXP - GXP and Tower Line Purchase
Southbrook GXP - Upgrade from 33kV to 66kV 480
Southbrook GXP - 66kV Bay for Tuahiwi Circuit 1,000
Ashley GXP - 66kV Bay for Tuahiwi Circuit 912
Ashley GXP - 66kV Bay for Amberley Circuit 1,440
Culverden GXP - GXP Purchase 3,000
Waipara GXP - 66kV Bay for Amberley Circuit 1,440
GXP Project Subtotals 3,480 1,912 2,880
Table 8 GXP Projects

Reinforcement Projects
Project Cost ($,000)
Project Title
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Rangiora - Northbrook Rd link 84
WDC Blake St link 128
X53 - X56 link Burnt Hill 128
Rangiora - East Belt north 340 80
Amberley south deloading 240 200 200
Northbrook Feeder 222
Reinforce X52 Burnt Hill 182
Kaiapoi - Island Rd upgrade 200
Reinforce SW63 Swannanoa 157
Greta - Cheviot 22kV link 487
Cheviot - Leader upgrade 283
Network Automation and Reliability Improvement 80 100 100 100 100 100 100 100 100 100
Network Reinforcement - Unscheduled 139 50 700 900 900 700 900 900 900
Network Reinforcement Subtotals 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Table 9 Reinforcement Projects

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MainPower New Zealand Limited Section 5 Network Development Planning

Network Project Cost Summary


Project Cost ($,000)
Project Title
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Major Project Subtotals 2,559 6,829 248 1,300 3,240 4,892 6,512 8,776 3,000 6,150
GXP Project Subtotals 3,800 3,480 1,912 2,880
Network Reinforcement Subtotals 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Network Project Totals 7,359 11,309 1,248 2,300 4,240 5,892 9,424 9,776 6,880 7,150
Table 10 Network Projects Summary

Network Project Summaries


PROJECT TITLE AREA PROJECT CATEGORY DESCRIPTION
Ludstone Zone Substation 11kV
Kaikoura Replacement Restore security of supply by replacing 11kV switchgear.
Switchgear Replacement
Kaikoura Zone Substation Install fans on the Kaikoura 66/33kV transformer to increase its
Kaikoura Capacity
Transformer Fan Upgrade capacity.
Cheviot to Oaro Subtransmission Line Move the 66kV/33kV transition from Cheviot to Oaro and install
Kaikoura Capacity
Upgrade voltage regulation at Oaro.
Ludstone Zone Substation Reactive Increase Ludstone capacity by 0.4MW through localised VAR
Kaikoura Reactive (VAR) Support
Support support.
Kaikoura Zone Substation Capacity Rationalise Ludstone and Kaikoura zone substations to replace
Kaikoura Capacity
Upgrade aging assets and meet expected load growth.
Increase the Southbrook N-1 capacity from 22MW to 45MW.
Southbrook 66kV Substation Upgrade Rangiora Capacity Decommission Southbrook 33kV assets and Rangiora North
substation.
Provide a 33kV N-1 supply for Amberley zone substation from
Amberley Zone Substation 33kV
Amberley Security of Supply Ashley via an 11/33kV autotransformer. The existing N-1 supply is
Security Upgrade
removed with the Southbrook substation upgrade project.
Southbrook 33kV Substation
Rangiora Decommissioning Decommission existing Southbrook 33kV zone substation.
Decommissioning
Rangiora North Zone Substation
Rangiora Decommissioning Decommission existing Rangiora North 33kV zone substation.
Decommissioning
Ashley to Tuahiwi 66kV Construct new 66kV line from Ashley GXP to Rangiora Woodend
Tuahiwi Capacity
Subtransmission Line - Stage 1 Road.
Ashley to Tuahiwi 66kV Construct new 66kV line from Rangiora Woodend Road to new
Tuahiwi Capacity
Subtransmission Line - Stage 2 Tuahiwi zone substation site.
Southbrook to Tuahiwi 66kV Construct new 66kV line from Tuahiwi zone substation site to
Tuahiwi Capacity
Subtransmission Line - Stage 1 edge of Rangiora township.
Southbrook to Tuahiwi 66kV Install 66kV cable from the new Southbrook to Tuahiwi 66kV line
Tuahiwi Capacity
Subtransmission Line - Stage 2 into Southbrook GXP.
Tuahiwi 66/11kV Zone Substation Tuahiwi Capacity Construct new 40MVA 66/11kV zone substation at Tuahiwi.
Harwarden 33kV Zone Substation Rebuild and increase Hawarden zone substation capacity for new
Harwarden Capacity
Rebuild irrigation load (timing uncertain).
Mouse Point Zone Substation Rebuild Culverden Capacity Rebuild the Mouse Point substation at 66/22kV.
Hanmer 33kV Subtransmission Line Improve mechanical strength of the Hanmer 33kV line by
Hanmer Reliability
Conductor Upgrade replacing sections of the 33kV line with stronger conductor.
Amberley 66kV Zone Substation
Amberley Capacity Rebuild Amberley zone substation at 66/11kV on new site.
Rebuild
Install link between two feeder routes through the new
Rangiora - Northbrook Rd link Rangiora Security of Supply
subdivision on the east side of Rangiora and Northbrook Road.
Link between WDC and Blake Street to improve security of supply
WDC Blake Street Link Rangiora Security of Supply
to both substations.
Install link between Burnt Hill zone substation feeders X53 and
X53 - X56 link Burnt Hill Oxford Security of Supply
X56 at Parish Road.
Install interconnection link between developments in Rangiora
Rangiora - East Belt North Rangiora Security of Supply
East and East Belt North.
Reduce the Amberley zone substation load by upgrading supply
Amberley South De-loading Amberley Security of Supply capacity from the neighboring Ashley GXP and MacKenzies Road
zone substation.
Northbrook Feeder Capacity Extension of existing feeder out of Southbrook zone substation to
supply subdivision developments in East Rangiora.
Reinforce X52 Burnt Hill Oxford Capacity Reinforce feeder X52 out of Burnt Hill zone substation.

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MainPower New Zealand Limited Section 5 Network Development Planning

Kaiapoi - Island Road Upgrade Kaiapoi Reliability Upgrade Island Road feeder.
Reinforce SW63 Swannanoa Swannanoa Security of Supply Install link to allow load transfers and switching between feeders.

Link Greta 22kV to Cheviot to provide 2MVA of load transfer


Greta - Cheviot 22kV link Cheviot Security of Supply
capacity.
Improve 11kV transfer capacity between Cheviot zone substation
Cheviot - Leader upgrade Cheviot Security of Supply
and Leader zone substation by approx 1.5MVA.
Network Automation and Reliability Increase structural strength of overhead lines prone to snow and
General Reliability
Improvement wind.
Table 11 Summary of Projects

Distribution Innovation
Master Planning
MainPower’s future focus in network development planning includes development of regional master plans; documents
that will detail projected demand growth, reliability statistics and network projects in defined North Canterbury areas.
The purpose of the Master Plans is to:
- Improve stakeholder engagement including local Councils, suppliers of technology, community and energy users;
- Provide a consultative platform to accept new technology or behavioural changes to assist with deferring network
expenditure, reducing supply related costs;
- Detail our approach to network argumentation and the service levels delivered. Where no feasible market driven
alternative solution exists, MainPower may then apply a traditional network development planning approach;
- Provide regional documents to all stakeholders, market participants and energy consumers; and
- Facilitate a market response by encouraging the use of non-network or non-lines network solutions. Solutions do
not necessarily need to be delivered by MainPower, they can be supplied, maintained and operated by others.

5.9 Distributed Generation Policies


Our policies on distributed generation are located on our website at www.mainpower.co.nz under ‘Get Connected’. These
set out the requirements for connecting distributed generation (of less than 10kW and greater than 10kW) and general
safety requirements. We also comply with Part 6 of the Electricity Industry Participation Code, in this respect.

5.10 Uneconomic Lines


The remote nature of parts of our network results in remote network assets which test the bounds of economic investment.
As part of our network development planning processes, we would like to identify remote uneconomic supplies and explore
through a consultation process with customers and market participants, alternative solutions for supplying these locations
when the present assets are due for replacement. This may include trials of options such as deployment of alternative
micro-grid solutions where these are the preferred economic solution. Where any new technologies deployed are proven to
provide reliable and cost-effective supply, our preference will be to decommission uneconomic lines in the future.

5.11 Non-Network Solutions


Load Control
We use ripple control to manage peak demand, alleviate network constraints, defer capital investment and reduce
transmission charges. Irrigation load can also be controlled during contingencies or at times of system constraints. Other
initiatives under consideration are tariff restructuring to encourage night load.
The introduction of the Upper South Island Load Control system has resulted in a flat load profile for the upper South Island
transmission system. Additional controls are being used to ensure that individual GXP and zone substation peaks are
managed. In particular, the Southbrook zone substation load is actively managed through winter peak loads to maintain
security levels (to achieve N-1 loading whenever possible). The Kaikoura load is also controlled during maintenance outages
on the Culverden-Kaikoura 66kV line. At these times our 66kV/33kV coastal backup line is unable to transmit the normal
daily peaks.

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MainPower New Zealand Limited Section 5 Network Development Planning

Demand Side Management


Demand side management involves measures to manage power system load and optimise its use. In 2004, MainPower
embarked on a program to implement a number of demand side management initiatives. To date, the benefits of
implementing this program have included:
- Reduction in peak loads on the network;
- Reduction in costs associated with Transpower peak charges and deferred network capital investment;
- Providing customers with opportunities to reduce their energy costs;
- Demonstrating a commitment to energy efficiency; and
- Raised awareness of MainPower in the community.

Distributed Energy Resources (DER)


Aligned with MainPower’s ‘Demand Side Management’ scheme, ‘non-network’ solutions such as the Distributed Energy
Resources (solar, storage, energy efficiency) are seen as a way to offset or delay traditional network augmentation.
MainPower is already deploying enabling technologies within its network that can also be used for the management of DER
in the future. The purpose of the technology is to aggregate DER that is typically deployed close to the load and behind the
meter.

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Asset Management Plan
2019 – 2029

Section 6 – Lifecycle Asset Management (Maintenance


and Renewal)
This section outlines MainPower’s approach to asset management and how we link our everyday maintenance decisions
and activities to our corporate objectives. This provides line-of-sight from our corporate objectives informed by our Asset
Management Plan, through to our asset management lifecycle strategies for individual asset classes, to our everyday
maintenance activities.
MainPower New Zealand Limited Section 6 Lifecycle Planning

Contents
6. Lifecycle Asset Management (Maintenance and Renewal) .......................................................... 4
6.1.1 Key Drivers for Maintenance Planning ........................................................................................................................4
6.1.2 Criteria for Criticality-based Maintenance ..................................................................................................................4
6.2 Routine Maintenance and Inspection ......................................................................................... 7
6.2.1 Maintaining and Inspecting Structures .......................................................................................................................7
6.2.2 Maintaining and Inspecting Underground Cables .......................................................................................................7
6.2.3 Maintaining and Inspecting Zone Substations ............................................................................................................8
6.2.4 Maintaining and Inspecting Switchgear ......................................................................................................................8
6.2.5 Maintaining and Inspecting Transformers ..................................................................................................................9
6.2.6 Maintaining and Inspecting Vegetation and Secondary Systems .............................................................................10
6.2.7 Maintenance Expenditure Projections ......................................................................................................................11
6.2.8 Systemic Problems ....................................................................................................................................................11
6.3 Renewals ................................................................................................................................. 12
6.3.1 Renewal Expenditure ................................................................................................................................................13
6.3.2 Innovations ................................................................................................................................................................13
6.3.3 Projects Planned ........................................................................................................................................................13
6.4 Non-Network Assets ................................................................................................................ 13
6.4.1 IT Systems..................................................................................................................................................................13

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MainPower New Zealand Limited Section 6 Lifecycle Planning

List of Tables
Table 1 Structures Inspection .......................................................................................................................................................7
Table 2 Underground Cable Inspection ........................................................................................................................................7
Table 3 Zone Substation Inspection .............................................................................................................................................8
Table 4 Switchgear Inspection .....................................................................................................................................................9
Table 5 Transformer Inspection .................................................................................................................................................10
Table 6 Vegetation and Secondary Systems Inspection .............................................................................................................10
Table 7 Maintenance Expenditure .............................................................................................................................................11
Table 8 Renewal Expenditure .....................................................................................................................................................13

List of Figures
Figure 1 Criticality Flowchart, Part A ............................................................................................................................................5
Figure 2 Criticality Flowchart, Part B ............................................................................................................................................6
Figure 3 Criticality Flowchart, Part C ............................................................................................................................................6
Figure 4 Optimal Renewal ..........................................................................................................................................................12

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MainPower New Zealand Limited Section 6 Lifecycle Planning

6. Lifecycle Asset Management (Maintenance and Renewal)


This section covers MainPower’s lifecycle approach to asset management consisting of maintenance, renewal and
refurbishment; including policies, criteria and processes. The asset management objectives as identified in Section 2 help
set the strategic direction to our approach.
We apply a whole-of-life approach to lifecycle asset management, from the creation of assets, operation and maintenance,
to decommissioning and disposal at end of life. We strive to make investment decisions which balance asset life,
functionality, performance, and cost.
Where critical spares, built-in redundancy or redesign is not viable to achieve our business objectives, we complete failure
mode analysis on the assets, identifying all failure modes and applying reliability centred maintenance to achieve the
required outcomes. This and other maintenance treatments are detailed in following sections.

6.1.1 Key Drivers for Maintenance Planning


MainPower adopts a condition criticality approach to asset maintenance practice. The drivers for maintenance include:
Customer
- Quality of Supply aligned with customers’ expectations;
- Efficient and sustainable expenditure; and
- Network dependence.
Regulatory requirements
- Routine test in accordance with regulation (Pole Inspections, RCD Testing); and
- Public safety in accordance with NZS 7901: Electricity and Gas Industries – Safety management systems for public
safety.
Operational
- Safety when operating; and
- Effective network operational capability.
Continuous Improvement
- Optimisation of OPEX and CAPEX budgets (Managing Long Run and Short Run Marginal Cost);
- Optimise lifecycle efficiency of the assets;
- Works planning and using forecasts to inform budgetary requirements; and
- Collection and analysis of condition data.

6.1.2 Criteria for Criticality-based Maintenance


Asset criticality describes the consequence of asset failure, assists with understanding and managing risk within the network
and achieving the levels of service we aim to provide customers. Asset criticality is used for prioritising quality of supply,
risk, resilience, and dependence.
- Quality of Supply is an asset’s ability to deliver the service within the levels of service limits as intended in the
design, including maintenance activities;

- Risk is the potential for quantifiable damage, injury, liability or loss caused by external or internal vulnerabilities;

- Resilience is the ability to respond given disruption to an asset to deliver the service as intended in the design;

- Dependence is the significance that removing any individual asset has on the ability of the network to deliver the
service it was designed to perform.

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MainPower New Zealand Limited Section 6 Lifecycle Planning

Our maintenance planning and renewal activities aim to support the asset criticality model with asset data and information.
Our maintenance activities are driven from:
- Inspection data;
- Repairs;
- Failure mode and effect analysis;
- Reliability; and
- Renewal programmes.
How our maintenance activities and renewals are applied, based on criticality, is shown in the flowcharts below.

Figure 1 Criticality Flowchart, Part A

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Figure 2 Criticality Flowchart, Part B

Figure 3 Criticality Flowchart, Part C

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6.2 Routine Maintenance and Inspection


6.2.1 Maintaining and Inspecting Structures
The table below describes the maintenance or renewal categories, actions required, and timeframes for various structure
components.
COMPONENT MAINTENANCE/RENEWAL CATEGORY ACTION
Poles Asset inspection/condition assessment 5 yearly pole test and overhead inspection.
2.5 yearly overhead network inspection
programme.
Routine and preventative Maintenance determined on condition assessment
and number of customers affected.
Refurbishment and renewal Condition-based.
Fault and emergency Fault response.
Reactive repair.
Conductors Asset inspection/condition assessment 5 yearly overhead inspection for corrosion, binder
fatigue, incorrect sag done as part of the overhead
inspection programme.
Routine and preventative Scheduled maintenance determined by the
Overhead Network Inspection Programme.
Refurbishment and renewal Condition-based.
Fault and emergency Fault response.
Reactive repair.
Cross Arms Asset inspection/condition assessment 5 yearly inspection forms part of the overhead
network inspection programme.
Routine and preventative 2.5 yearly visual inspection as part of the overhead
network inspection programme.
Refurbishment and renewal Renewal if visual assessment failure of with the
overhead network inspection programme.
Fault and emergency Fault response.
Reactive repair.
Line Hardware Asset inspection/condition assessment 5 yearly inspection forms part of the overhead
network inspection programme.
Routine and preventative 2.5 yearly visual inspection as part of the overhead
network inspection programme.
Kidney insulators replaced when lines are replaced.
Refurbishment and renewal As identified by the overhead network inspection
Standard.
Fault and emergency Fault response.
Reactive repair.
Table 1 Structures Inspection

6.2.2 Maintaining and Inspecting Underground Cables


The table below describes the maintenance or renewal categories, actions required, and timeframes for various cables.
CABLE MAINTENANCE/RENEWAL CATEGORY ACTION
All Cables Asset Inspection/Condition Assessment 2 yearly partial discharge testing on 33kV cables
and critical feeder cables and thermal imaging of
cable terminations.
Due to low failure rate no renewals are scheduled
during the planning horizon.
Fault and Emergency Fault response.
Reactive repair.
Table 2 Underground Cable Inspection

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6.2.3 Maintaining and Inspecting Zone Substations


The table below describes the maintenance or renewal categories, actions required, and timeframes for various zone
substation components.
COMPONENT MAINTENANCE/RENEWAL CATEGORY ACTION
Transformers Asset inspection/condition assessment 3 monthly inspection including visual inspection,
tap change operation count, battery test, oil
containment inspection, alarm flagging, oil levels
and silica gel breather test.
Impedance (excitation) tests on larger
transformers every 5 years.
Yearly earth testing.
Routine and preventative Condition-based maintenance based on oil
analysis, tap changer operations and results from
the 3 monthly, 12 monthly and 5 yearly
maintenance inspections.
Refurbishment and renewal Condition-based assessment.
Compounds Asset inspection/condition assessment 3 monthly buildings and property inspection.
Annual thermal imaging to detect hot spots.
Routine and preventative Condition-based maintenance as a result of
inspection.
Refurbishment and renewal Driven by upgrade requirements to increase
capacity.
Batteries Asset inspection/condition assessment Real-time SCADA monitoring of electronic chargers
and sealed lead batteries.
Routine and preventative 3 monthly testing of voltage and specific gravity on
non-monitored banks and chargers in line with the
Battery and Charger System Maintenance
Standard.
Refurbishment and renewal Replacement based on reported condition or after
5 years.
Protection Relays Asset inspection/condition assessment 3 monthly and 3 yearly protection system
maintenance in line with the Protection System
Maintenance Standard.
Routine and preventative Relay health monitored by SCADA.
Refurbishment and renewal Based on load requirement and/or obsolescence.
Table 3 Zone Substation Inspection

6.2.4 Maintaining and Inspecting Switchgear


The table below describes the maintenance or renewal categories, actions required, and timeframes for various switchgear.
SWITCHGEAR MAINTENANCE/RENEWAL TYPE ACTIONS
Circuit Breakers, Asset inspection/condition assessment Ongoing monitoring of operations count,
Reclosers and maintenance history, battery and earthing details,
Sectionalisers visible numbering and line connections.
Yearly partial discharge of high priority-circuit
breakers and terminations.
Yearly thermal imaging of auto recloser
terminations.
Routine and preventative Maintenance of circuit breakers is based on how
many trips since last service, the local fault level
and the manufacturer’s recommendations.
Yearly oil maintenance and gas pressure checks for
circuit breakers and auto reclosers.

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SWITCHGEAR MAINTENANCE/RENEWAL TYPE ACTIONS


Refurbishment and renewal Condition-based replacement.

Fault and Emergency Fault response.


Reactive repair.
Ring Main Units Asset inspection/condition assessment Yearly monitoring of ABB SD ring main switches.
5 yearly internal inspection of ABB SD ring main
switches.
Routine and preventative Maintenance scheduled according to date of last
maintenance.
5 yearly drain and fuse resistance testing on ABB
SD ring main switches.
5 yearly surface cleaning and contact inspection of
Magnefix ring main switchgear.
Refurbishment and renewal Condition-based.

Fault and emergency Fault response.


Reactive repair.
Air break switches Asset inspection/condition assessment Thermal imaging during summer peak and winter
peak.
Routine and preventative 7 to 10 yearly exchange servicing.
Maintenance priority based on whether the switch
is an open point in the system, how many
customers are connected beyond the switch and
how often the switch is operated.
Refurbishment and renewal Replacement when history of poor operational
reliability, high failure rate or progressively higher
maintenance costs.
25 switches a year will be replaced under
maintenance for the next five years.
Fault and emergency Fault response.
Reactive repair.
Table 4 Switchgear Inspection

6.2.5 Maintaining and Inspecting Transformers


The table below describes the maintenance or renewal categories, actions required, and timeframes for various
transformer asset types.
ASSET TYPE MAINTENANCE TYPE ACTIONS
Distribution Kiosks Asset inspection/condition assessment Yearly visual inspection for rust, rot, weeds and
and Substations graffiti.
Yearly inspection and thermal imaging of low-
voltage.
Additional check of critical substations during peak
load periods.
Routine and preventative Weather proofing as identified by yearly
inspection.
Refurbishment and renewal No refurbishment programme.
Renewal occurs as required from inspections or
during upgrades.
Fault and emergency Reactive repair.
Weather or third-party damage.

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ASSET TYPE MAINTENANCE TYPE ACTIONS


Distribution Asset inspection/condition assessment Yearly earth test on earth return and zone
Transformers substation transformers.
10 yearly earth test on all other transformers.
Routine and preventative Minimal maintenance required and limited to
when transformers are removed from service or
exchanged for line maintenance or upgrade.
Full oil test and follow up with oil filter/change if
required when being exchanged or replaced.
Small pole mounted transformers are usually
scrapped if maintenance is required.
External inspections and touching up of surface
rust.
Refurbishment and renewal Required only during line maintenance or
upgrade.
Fault and Emergency Fault response.
Reactive repairs.
Table 5 Transformer Inspection

6.2.6 Maintaining and Inspecting Vegetation and Secondary Systems


The table below describes the maintenance or renewal categories, actions required, and timeframes for vegetation and
secondary systems.
OTHER MAINTENANCE TYPE ACTIONS
Vegetation Asset inspection/condition assessment 2 yearly inspection by dedicated MainPower
inspector.
Routine and preventative Trees trimmed by feeder on two yearly rotation or
more regularly in high-growth areas.
Refurbishment and renewal N/A
Fault and emergency Reactive vegetation control.
Ripple Injection Asset inspection/condition assessment 2 yearly inspection and testing by Landis and Gyr.
Systems
Routine and preventative Maintenance identified by yearly inspection.
Refurbishment and renewal No renewals scheduled during the planning
horizon.
Fault and emergency Fault response.
Reactive repairs.
Communications Asset inspection/condition assessment Bi-annual full radio equipment testing on site.
Equipment Twice yearly check.
Routine and preventative As above.
Refurbishment and renewal
Fault and emergency As above.
Mobile Generation Asset inspection/condition assessment Inspection in line with the Standby Generator
Maintenance Standard.
Routine and preventative 3 and 12 monthly scheduled maintenance in line
with the Standby Generator Maintenance
Standard.
Refurbishment and renewal No renewals scheduled during the planning
horizon.
Fault and emergency Monthly testing in line with the Standby
Generator Maintenance Standard.
Table 6 Vegetation and Secondary Systems Inspection

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6.2.7 Maintenance Expenditure Projections

Table 7 Maintenance Expenditure

6.2.8 Systemic Problems


Poles
Some of the concrete poles in the Kaikoura region were locally poured with inferior aggregate. These have suffered more
rapid decay, require regular inspection and require replacement at 60 years of age or less.
Concrete poles purchased since the mid-1970s have shown no deterioration or reduction in strength during this time. We
expect these poles to last a minimum of 70 years and only minor monitoring for cracking or flaking will be required before
2030.
Conductors
The use of squirrel conductor was widespread during the 1970s and 1980s, however, we have found that this size conductor
fails badly under snow loading. All new designs comply with the minimum snow loading recommended in
AS/NZS7000:2010.
Cross Arms
Older lines were constructed with the narrow 75 mm face of the cross arm against the pole face making for a weaker
construction, more susceptible to lichen build up and rot.
Through the 1970s and 1980s many cross arms were changed regardless of their condition, which has increased the overall
average condition of cross arms.
Cables
High voltage cables on rural spur supplies (e.g. irrigation pumps) which at times have almost no load, can be subject to
operational issues with over voltages due to ferro-resonance. This is not yet known to have caused early cable failure but
has caused surge arrestor failure and extended outages for some customers. The problems are triggered by single phase
operation, typically due to a fuse clearing a fault. Attempts to mitigate the ferro-resonance problems include fitting ganged
three phase fuse assemblies which all clear quickly, minimising single phase operation and also fitting capacitors to change
the resonance tuning.
LV cables terminations leading to UV degradation of exposed tails. These are repaired as they are identified. Some
conductors have suffered corrosion due to water penetration. This is primarily an issue for the screens of neutral screen
cables and the cores of 4 core stranded cables. The failure rate is currently very low, but this may ultimately determine the
end of life of the cables. Very few cables have exhibited significant deterioration due to thermal overloading.

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Switchgear
We have 33kV type OKW3 circuit breakers at many of our zone substations. A number of mechanical failures have occurred
on some of these units in recent years and subsequently they will be replaced over the next five years as their condition
deteriorates.
ABB/Andelect Series 1 units are scheduled for replacement over the next two years in conjunction with replacement of old
Long & Crawford switchgear due to safety issues.

6.3 Renewals
We recognise that traditional age-based replacement and reactive renewals of assets is no longer a suitable approach for
managing our assets. We are moving to more prescribed assessments of asset renewals through adoption of condition-
based risk management framework to quantify and inform replacement programs. This framework will be aligned with the
EEA Asset Management Working Group’s publication relating to the asset health Index.

Asset renewal is assessed against:


- Risk;
- Service levels; and
- Optimal cost to achieve business objectives.
.

Figure 4 Optimal Renewal

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6.3.1 Renewal Expenditure


MainPower Network Replacement

Category FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29

Subtransmission Overhead Lines 48,098 38,819 21,228 21,228 21,228 21,228 21,228 21,228 21,228 21,228

11kV and 22kV Overhead Lines 4,965,567 3,071,808 1,679,831 1,679,831 1,679,831 1,679,831 1,679,831 1,679,831 1,679,831 1,679,831

400V Overhead Lines 399,094 729,800 399,094 399,094 399,094 399,094 399,094 399,094 399,094 399,094

Earths 9,074 11,968 11,782 9,074 6,852 6,852 9,815 11,528 11,435 7,917

Subtransmission Underground Cables - - - - - - - - - -

11kV and 22kV Underground Cables 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

400V Underground Cables 805,552 890,765 899,234 990,464 909,574 806,559 738,966 701,289 846,149 1,058,177

Asset Information Management 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Meters 7,816 6,308 6,438 7,685 15,185 31,306 57,269 85,514 106,654 116,089

Protection 69,709 72,652 72,762 69,709 80,612 114,443 167,051 220,818 259,582 279,436

Communication Systems 139,178 136,353 139,178 154,064 160,943 165,001 166,068 185,351 198,105 207,648

Control Systems 11,777 12,644 11,777 12,790 22,978 42,533 68,917 92,932 110,366 119,048

Load Management - - 696 9,811 36,752 82,948 125,233 140,022 117,796 76,951

Switchgear 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

Transformers 665,561 748,068 704,199 661,793 630,905 665,561 785,954 987,945 1,172,736 1,311,154

Substations 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Buildings and Enclosures 48,924 58,174 48,924 40,529 29,936 28,241 37,946 62,008 89,943 116,052

Grounds 2,210 2,210 1,339 561 144 - - - - -

Compliance and Safety Replacement Projects 916,540 - - - - - - - - -

Network Replacement Capex Subtotal 9,804,100 7,494,568 5,711,483 5,771,635 5,709,035 5,758,597 5,972,373 6,302,561 6,727,918 7,107,626

Table 8 Renewal Expenditure

6.3.2 Innovations
MainPower has implemented maintenance schedules against assets within the CMMS – OneAsset. Template work orders
have been set up for some asset classes complete with data collection points to record the outcome of maintenance
activities. Data collection points are also used to record information to help determine condition of the assets. More
accurate data relating to our assets will lead to the optimisation of renewing our assets.
Pole maintenance has also been deployed as the new maintenance standard for all pole assets. The process allows us to
renew poles based on asset condition and criticality. All data collection points, determined when completing the
maintenance activities, are assigned against the pole asset within the OneAsset system. Poles are tested using offline
technology that synchs once the device is brought back into coverage area.

6.3.3 Projects Planned


Pole Renewals 2019-2029

The major component of asset renewals (Direct Replacement) is MainPower’s pole replacement plans. Pole renewal plans
for Sub Transmission, LV and HV Distribution is circa $7m annually.
Andelect Switchgear Replacement 2019-2022
Commencing a program to remove all ABB 1 Andelect switchgear from the network. Renewals are informed by project
obsolescence, are not maintainable and cannot be operated live, impacting network performance.

6.4 Non-Network Assets


6.4.1 IT Systems
MainPower’s IT system consists of multiple software applications hosted internally on physical architecture within a data
centre or operated as Software as a Service (SaaS). Future application roadmaps are focussed around SaaS as the primary
application deployment methodology to reduce hardware requirements and application management needs. Disaster
Recovery is provided via replication of the internally hosted systems to Computer Concepts data centre in Christchurch.

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Integral to the support of this architecture is an integration layer that facilitates the movement of data and synchronisation
of master records to ensure integrity between applications.
The key components of MainPower’s IT platform are:
• A TechnologyOne ERP integrated platform that is used for all asset management, works management and financial
reporting (which includes standard modules for finance, payroll, stores, reporting etc.);
• A SmallWorld GIS which is used as the primary data repository for electricity distribution asset data; and
• A CRM from SalesForce for managing ICP data including registry obligations, billing history etc. and manages
shareholder information on behalf of the Trust.

Software Assets
Asset book value, at 31 March 2019, is forecast to be $928,000.
In 2018 MainPower implemented Microsoft Office 365 to replace on premise Exchange and all desktop Microsoft Office
licensing. This has moved a potential 3 yearly capital cost (to upgrade to latest version) into an operational cost on a ‘per
active user’ basis.

Hardware Assets
Asset book value, at 31 March 2019, is forecast to be $888,000.
In 2017 MainPower moved from purchasing printers and faxes to a leased model through Ricoh NZ. This has moved these
capital costs to operation and is based on a 48-month contract commencing March 2017.

Maintenance and renewal policies for the above assets.


MainPower has the following replacement policies for IT systems:
• 3 years for desktop PCs (approx. 45 PA);
• 3 years for laptops (approx. 12 PA);
• 3 - 4 years for tablets and mobile devices (approx. 50 PA); and
• 3 - 4 years for server infrastructure dependant on warranty costs and capacity requirements.
Major software applications are patched regularly, and maintenance / application releases deployed annually to remain
within vendor warranty frameworks i.e. TechnologyOne is updated twice yearly, GIS annually and SalesForce quarterly.
Future maintenance and replacement decisions are based on GAAP but a strategic directive of ‘cloud first’ for all software
applications is in place including future deployments of TechnologyOne.

Capital expenditure next 5 years


For the 2019-2020 financial year, capital expenditure on IT has been forecast as $650,000. This is made up of four strategic
projects around document management, PABX replacement and other IT services. There is an allowance for replacement of
1/3 of all desktops, laptops and tablets as per current hardware refresh cycles.
In addition, $2m has been allocated for the implementation of an Advanced Distribution Management System (ADMS) in
2019-2020, this project commenced in 2018 and will run for approximately 18 months.
Future IT capital expenditure is estimated at $550,000 per year for the following four years.

Maintenance and Renewal Projects


Advanced Distribution Management System Replacement
MainPower’s existing Supervisory Control and Data Acquisition (SCADA) system has reached end-of-life. The latest version
of the incumbent SCADA solution is not capable of delivering the functionality needed by MainPower. The focus of this
project is to implement and integrate of the OSI ADMS for the operational control of the MainPower Network.

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Enterprise Resource Process Upgrade


The TechnologyOne platform will be migrated to a SaaS offering with significant improvements to the ERP product’s
usability and the available functionality. The transition to SaaS over the next four years provides access to the new
functionality which enables improvements to our asset management and operational practices.
Technology Integration
The Dell Boomi Integration platform will be implemented during 2019 to replace the existing bespoke integrations, enable
rapid deployment of new integrations and enable proactive operational monitoring of the integration environment.

Data Warehouse and Decision Support Expansion


Further investment in data warehouse and analytics technology is planned to improve the strategic and operational
decision making, with a focus on opportunity identification and improved service delivery.

Integrated Management System and Current State Management


A capability to leverage the current state of the organisation will be implemented to enable service improvement. The
organisation will implement the ProMapp and State3 technologies to create and maintain visibility of the organisation’s
current state from process, people, technology and customer experience perspectives.

Document Management
A core component of our operational capability is controlling and accurately versioning documents and ensuring that the
organisation can easily access these documents. The current document management system no longer meets the
requirements of the business, and the project is intended to implement an integrated, modern, and secure document
management solution.

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Asset Management Plan
2019 – 2029

Section 7 – Risk Management


This section outlines MainPower’s approach to risk management, including information on how we identify and manage
both the operational and network impact of risks.
MainPower New Zealand Limited Section 7 Risk Management

Contents
7. Risk Management ...................................................................................................................... 4
7.1 Overview of How We Manage Risk ............................................................................................. 4
7.1.1 Risk Categories ............................................................................................................................................................4
7.1.2 MainPower Risk Matrix ...............................................................................................................................................5
7.2 Activity, Plant and Equipment Risk ............................................................................................. 5
7.2.1 Permit to Work Control ...............................................................................................................................................6
7.3 Project Risk ................................................................................................................................ 7
7.4 Network Risk ............................................................................................................................. 7
7.4.1 Measuring High Impact, Low Probability Risks ...........................................................................................................7
7.4.2 Mitigating Risk at Grid Exit Points ...............................................................................................................................8
7.4.3 Studying Our Sub-transmission and Distribution Systems ..........................................................................................8
7.4.4 Developing Natural Hazard Exposure Limits for our Zone Substations.......................................................................9
7.4.5 Ensuring Ongoing Communications and Robust Control Systems ..............................................................................9
7.4.6 Identifying and Assessing Physical Risks to our Sub-transmission and Distribution Systems .....................................9
7.4.7 Identifying and Mitigating Risks to Our Zone Substations ........................................................................................10
7.4.8 Enabling a Flexible 66kV and 33kV Sub-transmission System ...................................................................................11
7.4.9 Ensuring Alternative Supply Routes for our Distribution System..............................................................................12
7.4.10 Ensuring Alternative Supply is Available for Main Towns on our Network ...............................................................12
7.4.11 Reviewing our Asset Failure Recovery Systems ........................................................................................................12
7.4.12 Improving Security of Supply due to Transpower Upgrading its Assets ...................................................................13
7.5 Risk Mitigation......................................................................................................................... 14
7.5.1 Applying our Asset Maintenance Programmes to Mitigate Risk ...............................................................................14
7.5.2 Using Emergency Control Procedures and Control Plans for Risk .............................................................................14
7.5.3 Using Contingency Plans When an Asset Fails ..........................................................................................................14
7.5.4 Using a Business Continuity Plan to Minimise Disruption to Our Business after a Disaster .....................................14
7.5.5 Using an Incident Management Plan to Respond to Any Disruptive Incident ..........................................................14
7.5.6 Actioning Our Crisis Communications Plan ...............................................................................................................15
7.5.7 Liaising with Civil Defence and Emergency Management .........................................................................................15
7.5.8 Using Insurance Practices to Minimise the Impact from Loss of, or Damage to, Our Assets ...................................15

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MainPower New Zealand Limited Section 7 Risk Management

List of Tables
Table 1 Matrix Ranking Risk by Likelihood and Consequence......................................................................................................5
Table 2 Assessment of High Impact, Low Probability...................................................................................................................8
Table 3 Summary of Average Damage Ratio on Our Sub-transmission Network and Distribution Network ..............................8
Table 4 Hazard Identification of Sub-transmission and Distribution Systems .............................................................................9
Table 5 Assets with a Risk Score Greater than 200 ....................................................................................................................10
Table 6 Mitigation of the Effects of Zone Substation Assets Failing ..........................................................................................11
Table 7 Available Load Control by Grid Exit Point ......................................................................................................................11
Table 8 Alternate Supply ............................................................................................................................................................12
Table 9 Recommended Measures and Action Plan to Reduce Risk ...........................................................................................13
Table 10 Transpower's Risk Management Plans for their Grid Exit Points ................................................................................13

List of Figures
Figure 1 Overview of Operational and Maintenance Activity Risk ...............................................................................................5
Figure 2 Controls, Residual Risk Score and Responsibilities .........................................................................................................6
Figure 3 Permit to Work Control ..................................................................................................................................................6
Figure 4 Assessment of Risk for Activity, Plant and Equipment ...................................................................................................7

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MainPower New Zealand Limited Section 7 Risk Management

7. Risk Management
7.1 Overview of How We Manage Risk
MainPower recognises that risk management is an integral part of good governance and best management practice and has
adopted the principles of risk management as detailed in AS/NZS ISO 31000:2009 Risk Management – Principles and
Guidelines.
The Chief Executive has ultimate responsibility and accountability for ensuring that risk is managed across MainPower. The
Chief Executive and Executive Leadership Team provide leadership, agree the strategic direction and risk appetite and
promote a health and safety-oriented culture to ensure the best outcome for MainPower and the community.
The MainPower Board actively considers risks during strategic and tactical decision-making processes, as do all levels of
management, and determine the level of residual risk/appetite they are willing to accept. MainPower takes a risk-based
approach to managing internal and external projects, operational and strategic risks i.e. risks are managed and monitored
according to severity.
MainPower management conduct a full six-monthly review of their department’s risks with monthly monitoring of high
risks and quarterly monitoring of medium and low risks. Management also conduct out-of-cycle reviews of operational,
project or strategic risks if:
- Material changes occur;
- There is a breakdown of controls or new risks emerge e.g. organisation change;
- Major process or system change;
- Failure of controls; or
- There is a major incident or compliance breach, serious complaint or significant near miss.
MainPower invests the appropriate time and resources into training and awareness for all employees, in particular;
managers, nominated risk and control owners, and employees with specified risk and emergency management roles.

7.1.1 Risk Categories


MainPower categorises risk within two areas:
1. Strategic Risk – the continual process of identifying, assessing and managing risks, affected by internal and external
events and risks that could impede MainPower’s ability to achieve business strategy and taking rapid action when risks are
realised.
2. Operational Risk – the risk of loss resulting from inadequate or failed internal processes and systems, human factors or
from external events. They arise in day-to-day operations and require specific and detailed response and monitoring
schemes. It captures business continuity plans, environmental risk, crisis management, process systems and operations risk,
people related risks, health and safety, and information technology risks.
Within these two categories, asset management risk includes:
- Activity, plant & equipment risk;
- Project risk; and
- Network risk.
The Assets and Capital Works team develop, implement and maintain their own risk registers specific to their areas of
responsibility. All identified risks are assessed and re-assessed on an annual basis within each function or when there is
change in circumstance. This is reviewed by the Assets and Capital Works Manager, who may escalate the risk to the
Strategic or Operational Risk Register for reporting and monitoring purposes.
All risk is managed within the MainPower Risk Management Framework where extreme and high risk is reported to the
MainPower Board by the MainPower Audit and Risk Committee.
In addition, risk is a fundamental component of the capital sanctioning process where it is a business requirement to
identify exposure to risk both pre and post project.

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MainPower New Zealand Limited Section 7 Risk Management

7.1.2 MainPower Risk Matrix


MainPower operates a Risk Matrix that includes four levels of risk – Extreme, High, Medium and Low. The area bordered in
blue is deemed acceptable risk; there is an informed decision to accept that the event may occur and acceptance of the
consequence.
Consequence Effect
Likelihood Risk Rating
(How Often)
Insignificant Minor Moderate Major Extreme
Almost certain M1 H1 H1 E1 E1
Likely M2 M2 H2 E2 E2
Possible L1 M3 H3 H3 E3
Unlikely L2 L2 M4 H4 H4
Rare L3 L3 M5 M5 H5
Table 1 Matrix Ranking Risk by Likelihood and Consequence

7.2 Activity, Plant and Equipment Risk


All activities required to operate and maintain the network; including plant and equipment used to operate and maintain
the network, are risk assessed. An example of this approach is outlined in the figure below.

Figure 1 Overview of Operational and Maintenance Activity Risk

Controls are formulated to treat risk and the post treatment risk is evaluated to ensure alignment with MainPower’s
appetite for risk. Risk treatment includes, but is not limited to:
- Use of special controls (SWMS, SOP, Permit to Work, etc.); and
- Competency requirements.
The controls, residual risk score and responsibilities are updated and detailed in the respective risk register, as shown in the
figure below.

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MainPower New Zealand Limited Section 7 Risk Management

Figure 2 Controls, Residual Risk Score and Responsibilities

7.2.1 Permit to Work Control


An outline of the permit to work control process is included below.

Figure 3 Permit to Work Control

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MainPower New Zealand Limited Section 7 Risk Management

Assurance of risk treatment for activity, plant and equipment risk can be demonstrated by the figure below.

Figure 4 Assessment of Risk for Activity, Plant and Equipment

7.3 Project Risk


All projects are risk assessed, informing project delivery risk, including safety by design. It is the role of the project manager
to update and maintain the Project Risk Register periodically, including the enabling of identified controls.

7.4 Network Risk


MainPower has conducted the following risk assessment studies:
- High Impact Low Probability (HILP) event assessment;
- Physical risk to Grid Exit Points (GXPs), zone substations, transmission and distribution systems; and
- Compliance with the RMA.
Natural hazards considered include:
- Earthquakes, avalanches and landslides;
- Tsunami;
- Volcanic activity
- Floods, snow, wind and lightning; and
- Extreme temperatures, drought and wild fires.

7.4.1 Measuring High Impact, Low Probability Risks


Natural hazards with the potential to damage major network assets that affect the most customers are considered for risk
mitigation. Those assets are:
- 66kV and 33kV sub-transmission systems;
- Zone substations; and
- Communications systems.

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Climate Change
Temperature
Earthquake

Avalanche

Landslide

Lightning

Wild Fire
Tsunami

Volcanic

Drought
Flood

Snow

Wind
66 kV Sub-transmission System H H H L L M H M L L L H L
33 kV Sub-transmission System H H H L L M H M L L L H L
Zone Substations M L L L L L L L M L L M L
Communication Systems M L L L L L L M H H L H L
Table 2 Assessment of High Impact, Low Probability

7.4.2 Mitigating Risk at Grid Exit Points


Grid Exit Point (GXP) stations are situated at Kaiapoi, Southbrook, Ashley, Waipara and Culverden. Transpower has
completed an extensive programme of seismic damage mitigation, which includes MainPower’s GXPs. The assessment
concludes that Transpower’s assets can withstand earthquakes up to the magnitude experienced in the Kaiapoi region in
2010.

7.4.3 Studying Our Sub-transmission and Distribution Systems


We have undertaken a qualitative study on the impact of natural disasters on our sub-transmission and distribution
systems. That study identified earthquakes as being of greatest risk to our sub-transmission system.
We considered three earthquake intensity scenarios for the network. The average damage ratios shown below represent
the percentage of the full replacement value of the assets likely to be damaged for those three scenarios.
1:500 years 1:200 years 1:100 years
Sub-transmission Network 6.2% 3.2% 1.2%
Distribution Network 17.0% 9.8% 4.1%
Table 3 Summary of Average Damage Ratio on Our Sub-transmission Network and Distribution Network

While some sections of each system are assessed at a ratio above 10% under certain earthquake scenarios, overall damage
to the sub-transmission and distribution systems does not exceed 6.2% and 17.0% respectively, under any of the three
earthquake scenarios.
Natural hazards of flood, windstorm, electrical storm, snow storms and tsunami to the sub-transmission and distribution
system are considered in the table below. Information is sourced from external publications such as the Canterbury
Regional Council “Natural Hazards in Canterbury” report, which has been reviewed against network design criteria.
Observations Probability/Consequence
Flood The risk to overhead lines from flood hazard is limited, even in a 100-year flood Probability: Low
event.
Consequence: Low
Damage is isolated, resulting from landslips and/or subsidence or damage to
individual poles sited within the normal course of a river.
A 500-year flood event would result in extensive flooding of some urban areas
and subsequent damage to ground-mounted distribution equipment.
Windstorm Damage to overhead lines is routinely caused by high winds. Probability: High
Historically this results in minor and isolated damage.
Consequence: Low
Our design criteria meet or exceed the requirements for a 50-year return period
event as set out in Australian/New Zealand Standard AS/NZS7000:2016.
The most severe winds are winds from the northwest (these occurred in 1945,
1964, 1975, 1988 and 2013).
The peak wind speed of 193km/hr recorded in August 1975 exceeded the 100-
year recurrence interval.
Average recorded wind speeds in Christchurch approach 45% of design speed on
54 days a year and 66% on three days a year.
Canterbury has recorded four significant tornado events in the last 25 years;
none were located in our distribution area.

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Observations Probability/Consequence
Electrical storms Most parts of Canterbury experience few electrical storms. Probability: Moderate
Over the plains an average of less than five thunder days occur each year, with
Consequence: Low
the highest frequencies from September to March.
Near the Alps, an average of twenty thunder days occur each year, with the
highest frequencies in April and May.
Zone substations, transformers and communications equipment are protected
with lightning arrestors.
Snow storm Canterbury occasionally experiences weather bombs which deposit heavy wet Probability: Moderate/High
snow on overhead lines.
Consequence: Low
Higher inland areas can be subject to ice build-up with coincident wind loading
which puts high loads on overhead infrastructure.
Isolated sections of overhead lines may also be exposed to a theoretical risk of
avalanche.
Tsunami Tsunami hazards are uncertain, however, it is recognised as realistic for Probability: Remote
Canterbury.
Consequence: Insignificant
There is a potential significant hazard at the mouth of both the Waimakariri and
Ashley Rivers, at Leithfield Beach, Motunau, and at Kaikoura where the narrow
continental shelf and presence of submarine canyons makes this area
particularly susceptible, especially Goose Bay and Oaro.
The majority of overhead lines are not generally exposed to this hazard.
Table 4 Hazard Identification of Sub-transmission and Distribution Systems

7.4.4 Developing Natural Hazard Exposure Limits for our Zone Substations
We have developed natural hazard exposure limits for our zone substation assets, using a weighting factor for the strategic
importance of individual sites. This weighting is based on asset value, peak load and the capability to switch load away from
the substation. The measures used to define risk factors and risk priorities are:
- Risk Factor = Probability (years recurrence) x Consequence (% damage); and
- Natural Hazard Exposure = Risk Factor x Weighted Strategic Importance.
This assessment identifies earthquake hazards as the greatest risk to zone substations.
Flood hazards for zone substations are not rated as significant due to the location and/or the resilience of design of a
substation in a 1 in 500-year flood event (the likelihood that a 500-year flood event will occur in any given year). Other
meteorological hazards have comparatively high probabilities, but the consequence for these assets is generally
insignificant or modest.

7.4.5 Ensuring Ongoing Communications and Robust Control Systems


MainPower’s voice and data networks have radio sites located at Mt Grey, Mt Cass, Mt Thomas, Dead Mans Hill Beltana,
Wallace Peak and Ludstone. Mt Grey and Wallace Peak in particular, are often exposed to heavy snow that can damage
aerials and cause power to fail. The sites have battery backup which, in the event of severe snow, can fail before we can
access the sites.
The data network supports the Supervisory Control and Data Acquisition (SCADA) system and the Load Control system. Loss
of data communication impacts on both these systems. The ability to control load may be especially important during cold
weather, and we have enough local staff at or near remote sites to manually operate the load management system.
Our in-vehicle radio communication system can act as a backup for the cellular network. A fleet of strategically located
vehicles can relay information through each vehicle’s radio system.

7.4.6 Identifying and Assessing Physical Risks to our Sub-transmission and Distribution Systems
MainPower has assessed the major physical risks for the sub-transmission and distribution systems. That assessment used
the NZS 4360:1999 methodology to identify the top 40 significant physical risks.
We assessed risks and hazards to the environment, including:
- Accidental excavation;
- Telemetry failure;

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MainPower New Zealand Limited Section 7 Risk Management

- Water ingress;
- Vehicle impact;
- Explosion; and
- Creaks in electrical connection.
We also assessed potential risk from willful human behavior and naturally occurring hazards (including rot, fire, and plant
and animal activity) above and below ground.
The assessment assigned probability of occurrence and consequence scores that considered:
- Loss of supply;
Personal injury;
- Damage to MainPower’s property or the property of a third party;
- Impact on the environment; and
- Transpower power consumption peaks above allocation.
The assessment results show that:
- The highest risk score is a vehicle impact on the 33kV pole line feeding the Rangiora North Zone Substation; and
- The fortieth score is vehicle pollution affecting the Oaro Zone Substation.
Of the top 40 risks identified, 17 risks had a risk score greater than 200. We have reduced this number of risks, or mitigated
the risk, so that only eight risks now have a risk score greater than 200, as shown in the table below. These are not risks that
MainPower can readily manage.
Risk Asset Hazard Risk Score
1 Rangiora North tee line (917) Vehicle impact 308
2 Kaiapoi #3 (Hilton) Accidental excavation 308
3 Kaiapoi #2 (Fuller) Accidental excavation 308
4 Southbrook S17 (Flaxton) Vehicle impact 272
5 Culverden GXP – Hanmer line (1222) Gradual erosion of land 270
6 Culverden GXP – Hanmer line (1222) Landslip 270
7 Ludstone – Oaro line Plant or animal activity 210
8 Motunau – Omihi line Vehicle impact 204
Table 5 Assets with a Risk Score Greater than 200

7.4.7 Identifying and Mitigating Risks to Our Zone Substations


The most likely types of asset failure in our zone substations are protection, tap-changer contacts, circuit breakers, bus-
work and transformers, in that order. Table 6 assesses each type of asset and explains how the impact of failure is further
mitigated.
Asset Failure Issues that Contribute to Failure Mitigation
Protection Typically caused by complex under/over voltage A protection design review has been completed to
protection and transformer Buchholz and inter-trip standardise the types of systems used and settings.
systems on older sites. Protection systems are simplified or removed when
Protection fails during paralleling of feeders. appropriate.
Battery failure. The risk of damage occurring to a transformer or to
customer equipment due to an under/over voltage
event is extremely low.
Additional precautions and cross checks are now
made before undertaking any load transfer
switching.
Battery voltage is inspected monthly.
Tap-Changer Contacts Tap-changers have moving parts that suffer from Tap-changers are inspected regularly.
wear. Tap position and voltage is continually monitored via
SCADA; if a tap-changer fault occurs we can quickly
deploy staff to fix the problem.
Spare contact parts are maintained in stock.
Circuit Breakers Circuit breakers and reclosers approaching their A replacement programme is under way on old
end of life become increasingly unreliable. circuit breakers.

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Asset Failure Issues that Contribute to Failure Mitigation


Any zone substations with two or more 11 kV
feeders can bypass one faulty circuit breaker if
necessary.
If a circuit breaker fails at the remaining smaller rural
sites, we can easily bypass the faulted circuit breaker
as a temporary measure to restore power.
The sophisticated adjustable protection systems on
new circuit breakers mean that we can keep one
spare circuit breaker for use at multiple sites.
Bus-work Bus-work can suffer from broken insulators, Split bus systems and double-banked transformers
deterioration of the fault current, and negative help to provide some redundancy.
external influences.
Transformers A transformer bank can fail suddenly because of an Spare emergency power transformers are kept in
internal explosion. stock for transformer failures.
Some larger sites (i.e. GXPs, Southbrook, Kaikoura
and Culverden) have dual transformer banks to
provide redundancy.
Designs allow for transfer of load between zone
substations to provide additional redundancy where
possible.
In a civil emergency, we can use additional initiatives
such as asking other lines companies to provide
spare transformers.
We would use diesel generation sets where
appropriate.
Planned upgrade projects will improve cover when
transformer fails in the future.
Table 6 Mitigation of the Effects of Zone Substation Assets Failing

An additional mitigating technique is load control. We will use load control as the first mitigation technique by using our
Decabit injection system at zone substations during peak load. The table below shows the amount of load control available
on each GXP station.
GXP Load reduction available assuming water Load that must be restored assuming that
heating has been on all day water heating has been off for three hours
Southbrook 5.3 MW 16.5 MW
Kaiapoi 2.6 MW 8.1 MW
Ashley 0.5 MW 1.0 MW
Waipara 1.3 MW 4 MW
Culverden 1.4 MW 4.5 MW
Table 7 Available Load Control by Grid Exit Point

7.4.8 Enabling a Flexible 66kV and 33kV Sub-transmission System


The sub-transmission system between Southbrook and Waipara and between Waipara and Kaikoura can transfer load
either way. This flexibility offers an alternative supply to major and minor zone substations located along this route. The
same now also applies to the two sub-transmission circuits between Southbrook and Swannanoa and Burnt Hill. For this
reason, any asset failure on these line routes would only cause a short duration interruption while power is switched from
the other supply.
Spare parts are carried in sufficient quantity to cover the most likely cause of asset failure, including conductor, insulators,
poles and hardware.
No 33kV radial lines to other substations have an alternative supply. Even so, these substations typically have a smaller
number of customers and we can rectify any asset failure quickly because we have spares available.
A 22kV supply from Mouse Point can back up the Waipara Hawarden 33kV line for most of the year.

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7.4.9 Ensuring Alternative Supply Routes for our Distribution System


Major 22kV and 11kV feeders are backed up by alternative supply routes. Where more than two major feeders supply an
area, generally each feeder is designed to carry a maximum of 75% of its rating. This allows some spare capacity for backup.
Where only two feeders are available, then designs are based on maximum loadings of 50% of their rating.
Major low-voltage networks are designed on a similar basis to the distribution system. In an emergency in an urban area,
we can generally link low-voltage networks to ensure supply is maintained.
We hold minimum quantities of spares to cover faults and emergencies on the distribution network. These spares also
include critical larger items such as distribution transformers, switchgear, and poles.
Likely causes of asset failure in underground systems are termination and joint problems as well as excavation damage.

7.4.10 Ensuring Alternative Supply is Available for Main Towns on our Network
Asset failure in the main urban areas of North Canterbury and Kaikoura can affect many customers. In these areas we use
alternative supplies to ensure customers continue to receive electricity, as described in the table below.
Location Supply Options
Rangiora The level of interconnection between all six feeders is high.
Two feeders from Southbrook are capable of 9 MW each, one is capable of 8 MW, and one is capable of 7 MW.
The two feeders from Rangiora North are capable of 4 MW each.
At peak times, the network is capable of meeting load with one feeder out from each of the Southbrook and
Rangiora Substations.
Kaiapoi All four feeders at Kaiapoi have a high degree of interconnection and are capable of supplying 4 MW each.
At peak times, the system is capable of meeting the load requirements with one feeder out of operation.
Amberley Amberley is supplied from both the Broomfield and Balcairn feeders, using tie-points at Douglas Road and
Greys Road.
We can shift load to Mackenzies Road and the Rangiora North Substation to ensure backup is available.
Cheviot We can supply the entire town feeder from the north feeder by using a tie-switch outside the Cheviot
Substation.
Culverden Culverden has two main supply options using the 22kV supply from two feeders out of Mouse Point Substation.
Another 22kV supply is available from Hawarden Substation to the south if needed.
Hanmer Hanmer is supplied from either of the Argelins or Scarborough feeders except in the most heavily loaded
periods (typically holiday weekends during winter). During these times heavy load controlling is required to
maintain supply to all customers.
A new paralleling point to the east of the town gives greater supply security to the Hanmer Springs business
district.
Kaikoura The Ludstone Substation has four feeders that can supply into the Kaikoura town.
The north and south feeders are lightly loaded, and can back each other up, or either of the two town feeders.
The Churchill Street and town feeders are more heavily loaded and require a combination of feeders to take
over supply without overloading a remaining feeder during peak times.
Each feeder has multiple paralleling points and enough capacity, with many combinations of circuits, to supply
the town. Load control is unnecessary.
Oxford Most of the 11kV distribution system in the town of Oxford is overhead. We can easily isolate a fault and
quickly restore supply to customers.
All three feeders from the Oxford Substation can take over the town supply if necessary.
Alternatively, Bennetts Substation can supply the town area, but this depends on the level of system loading
(which is high in summer due to irrigation load).
Woodend The main alternative supply to the town of Woodend is via the Waikuku feeder out of Southbrook Substation.
During emergencies the Kaiapoi Substation can also supply the town, but this involves a phase shift across the
Southbrook and Kaiapoi GXP Substations.
Table 8 Alternate Supply

7.4.11 Reviewing our Asset Failure Recovery Systems


An independent expert has reviewed our asset failure recovery systems. Their assessment considered the eight biggest
asset failure scenarios based on impact on our customers. Those scenarios included zone substation transformer failure,
feeder cable failure, major circuit breaker failure and major line failure.

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MainPower New Zealand Limited Section 7 Risk Management

Procedures to restore assets following failure are documented and are robust. Even so, the expert’s assessment made some
recommendations from which we developed an action plan. Those recommendations and the plan are shown in the table
below.
Recommendations Action Plan
Procure oil spill kits (if the risk is considered great enough) for any sites that do not yet Oil spill kits are in the vehicles.
have them.
Ensure that the spare 33/11 kV transformers and one of the two Kaikoura transformers Spare transformers are kept on stock.
are kept on standby for use. Consider moving the spare transformer to the substation Spare 2.5 MVA transformer is now located at
most at risk of failing. Hanmer.
Consider building extra transformer pad and bus-work at remote single transformer The portable generator truck provides a better
substations so they can to fit the dimensions of the spare transformer. backup facility.
Ensure sufficient spare lengths of 66kV and 33kV single-core XLPE cable are stored at Jumper cable sets are made up and stored in
Rangiora – suggest a minimum of 3 lengths (each of 10 metres), along with two complete the yard.
sets of jointing kits, two complete termination kits, six jointing sleeves, six termination
lugs and a compression tool.
Ensure sufficient spare lengths of 22kV and 11kV single-core XLPE cable are stored at Jumper cable sets are made up and stored in
Rangiora – suggest a minimum of three lengths (each of 10m), along with two complete the yard.
sets of jointing kits, two complete termination kits, six jointing sleeves, six termination
lugs and a compression tool.
Ensure three spare 66/33kV poles and arms are stored at each of Mouse Point or Minimum quantities of spares are maintained
Culverden GXP, Swannanoa or Burnt Hill, and Cheviot. at Rangiora, with some items stored at depots.
Ensure a spare 33 kV breaker and a reasonable array of spares for all makes are held at Spare 11, 22 and 33kV circuit breakers are
Rangiora. held at Rangiora.
Ensure access is secured to 4x4 line trucks with Palfinger, hydraulic post-hole borer and MainPower and its subsidiaries own or lease
elevated platform. all the equipment.
Ensure the equipment to locate faults in cables is maintained in full working order and The process to ensure equipment
always available. maintenance and availability starts in 2019.
Prepare switching plans for restoring supply if a fault occurs on Cable S13 – S421, or Already developed as refresher training
Fuller, Hilton, Waipara – Cheviot and Kaikoura – Waipara lines. Consider protection programmes for controllers.
settings and any phase differences.
Secure access to an excavator to help dig up faulty cables – could be helpful to pre- Secure access becomes available in 2019.
arrange services with local contractors.
Table 9 Recommended Measures and Action Plan to Reduce Risk

7.4.12 Improving Security of Supply due to Transpower Upgrading its Assets


Transpower’s risk management plans for all of its GXP stations in North Canterbury are shown in the table below. Recent
upgrades mean that MainPower now has four 66 kV circuits supplying into the southern region. This has improved our
security of supply into the largest load area.
Site System No Installed Capacity Cooling Ratio (kV) Contingency Plans
Ashley T3/T5 2 x 40 MVA 3 ph ONAN 66/11 N-1 capacity
OFAF Spare bank at Islington
Culverden T1 2 x 30 MVA 3 ph ONAN 220/33 N-1 capacity
1 x 10/20 MVA 3 ph ONAN 66/33 Spare bank at Islington
Kaiapoi T1/T2 2 x 40 MVA 3 ph ONAN 66/11 N-1 capacity
OFAF Spare bank at Islington
Southbrook T1/T2 2 x 30/40 MVA 3 ph ONAN 66/33 N-1 capacity
OFAF Spare 20MVA bank at Islington
Waipara T3 1 x 10/16 MVA 3 ph ONAN 66/33 Spare 20MVA bank at Islington
OFAF Waipara load can be spread across other
MainPower substations
Table 10 Transpower's Risk Management Plans for their Grid Exit Points

Notes
1. ONAN = oil natural air natural
2. OFAF = oil natural air forced
3. N-1 is an indication of power supply security that specifically means that when one circuit fails, another will be available to maintain an
uninterrupted power supply

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MainPower New Zealand Limited Section 7 Risk Management

7.5 Risk Mitigation


7.5.1 Applying our Asset Maintenance Programmes to Mitigate Risk
All our maintenance programmes mitigate risk. How we apply maintenance to each asset depends on the risk that asset
presents to our business. Details about our maintenance programmes are set out in Section 5.

7.5.2 Using Emergency Control Procedures and Control Plans for Risk
We have developed a number of emergency control procedures over time. We continually refine them as we become
aware of issues with them, and continually develop new control procedures to respond to emergencies.
We have control procedures for a range of health and safety emergencies, including for fire, earthquake, severe storm,
flood, intruders, bomb threat, pandemic, oil spill, and release of hazardous or toxic substances. We also have control plans
in place for hazards that our staff face every day at work.

7.5.3 Using Contingency Plans When an Asset Fails


We have established contingency plans for when an electricity system asset fails and when our information technology (IT)
systems fail. We have built a portable generator truck to help provide an alternative power supply when and where a
backup power supply is not available through normal electrical configurations.
We have reduced the risk that our IT systems will fail. We accomplished this by installing a Hosted Disaster Recovery Site in
Christchurch. Comprehensive backup plans, data replication and real-time system monitoring ensure the continuity of our
key IT systems. We have set up a fully secure, remote access service. This service allows staff to work from anywhere if our
site at Fernside Road or sites at other depots fail completely and staff cannot enter the buildings.

7.5.4 Using a Business Continuity Plan to Minimise Disruption to Our Business after a Disaster
Our business continuity plan helps to minimise disruption after a disaster. We have identified our critical business activities
and processes and the types of events that can interrupt them.
The plan has assessed major risks arising from:
- Poor communications (including unreliable information technology systems);
- Disruption of electricity supply during a natural disaster;
- Disruption of electricity supply after an asset fails;
- Disrupted systems and lack of staff during a pandemic; and
- Legislative non-compliance.
Included in the plan are the conditions and responsibilities for activating the plan, along with detailed recovery procedures
covering Civil Defence response, electricity distribution network recovery, information system recovery and recovery from a
pandemic.
The plan also includes detailed information for emergency control procedures, contact lists, emergency stock, operating
procedures, vital records and fallback procedures for load control, SCADA and communications.
See ‘Liaising with Civil Defence and Emergency Management’ later in this section for when the plan is triggered.

7.5.5 Using an Incident Management Plan to Respond to Any Disruptive Incident


The Incident Management Plan guides our response to any disruptive incident that has a serious impact on our staff,
operations, services and credibility. The plan outlines how we will strategically and operationally manage our response so
that we can continue to deliver those functions and services that are critical to our business.
Part of our response is to adopt an incident management framework that outlines how we respond to and operate any
disruptive incident. The framework is based on New Zealand’s Coordinated Incident Management System (CIMS) and
comprises a strategic response level, a tactical response level, and an operational response level.

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MainPower New Zealand Limited Section 7 Risk Management

7.5.6 Actioning Our Crisis Communications Plan


Our crisis communications plan outlines the roles, responsibilities and procedures that will assist us when we communicate
with various audiences (including the public) during a crisis. The plan provides guidelines to manage communications
effectively. We can easily adapt the guidelines to any crisis situation. When a crisis occurs, the need to communicate is
immediate. Creating and carrying out internal and external communication strategies can help to prevent a crisis from
developing into a communication crisis — or at least minimise the impact of a communication crisis. The crisis
communications plan is intended as a communication tool only. Its purpose is to manage communications during a crisis
and mitigate risk to our reputation. It is not an alternative for an incident management plan that would direct the overall
crisis response or a business continuity plan that would help us to resume business operations as quickly as possible.

7.5.7 Liaising with Civil Defence and Emergency Management


As a ‘Lifeline Utility’, we are obliged under the law (including the Civil Defence Emergency Management Act 2002) to ensure
we can continue to function, even potentially at a reduced level, during and after an emergency, and that we have plans
available to ensure continued operation. We are also obliged to participate in developing the National Civil Defence
Emergency Management (CDEM) Strategy and CDEM Plans, and to provide technical advice to the Director and CDEM
Groups as required.
As noted above, some of our recovery plans will activate once predetermined triggers are met.
Our Business Continuity Plan triggers are:
- Breach of service levels – distribution system;
- Breach of critical human resource levels;
- Inability to re-establish electrical supply; and
- Inability to supply water over the long term.
Our Disaster Recovery Plan triggers are:
- Breach of service levels – Information Systems (IS) system; and
- Need to relocate IS or control centre services.
All Standard Operating Procedures relevant to recovering our business functions and services will also activate.

7.5.8 Using Insurance Practices to Minimise the Impact from Loss of, or Damage to, Our Assets
We maintain an insurance programme. Its objective is to cost effectively minimise the impact to MainPower from any loss
of, or damage to, our assets. We currently operate three insurances that are relevant to our network operation:
- Public liability insurance: $20 million;
- Materials damage: $40.382 million on stations including zone substations, load plants and contained structures;
and
- Ground-mounted transformers: $5.5 million.
It is not cost effective to insure the remaining sub-transmission and distribution systems with external providers.
MainPower maintains a self-insurance fund of $3 million to cover those network assets that cannot be cost effectively
insured. The amount of insurance is regularly reviewed and held in a self-insurance fund. We last reviewed the fund in
November 2017.

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Asset Management Plan
2019 – 2029

Section 8 – Evaluation of Performance


This section details MainPower’s performance measurement, evaluation and improvement.
MainPower New Zealand Limited Section 8 Evaluation of Performance

Contents
8. Evaluation of Performance ......................................................................................................... 4
8.1 Project Delivery Performance..................................................................................................... 4
8.1.1 Grid Exit Point..............................................................................................................................................................4
8.1.2 Sub-transmission and Zone Substation .......................................................................................................................4
8.1.3 Distribution Network ...................................................................................................................................................5
8.1.4 Secondary Systems ......................................................................................................................................................5
8.2 Financial Performance ............................................................................................................... 5
8.3 Service Levels ............................................................................................................................ 6
8.3.1 Evaluation of Customer-Oriented Performance .........................................................................................................6
8.3.2 Quality of Supply .........................................................................................................................................................7
8.3.3 Resilience ....................................................................................................................................................................7
8.3.4 Feeder Reliability .........................................................................................................................................................7
8.3.5 Operational Effectiveness ...........................................................................................................................................7
8.3.6 Financial Efficiency ......................................................................................................................................................7
8.3.7 Overall Safety ..............................................................................................................................................................8
8.3.8 Regulatory Compliance ...............................................................................................................................................8
8.3.9 Environment Performance ..........................................................................................................................................8
8.4 Asset Maturity ........................................................................................................................... 8
8.4.1 Asset Maturity Against Plan 2018 ...............................................................................................................................8
8.5 Benchmarking .......................................................................................................................... 10
8.5.1 Network Operating Expenditure ...............................................................................................................................10
8.5.1 Non-Network Operating expenditure .......................................................................................................................11
8.5.2 Capital Expenditure on Network Assets ....................................................................................................................11
8.5.3 Reliability ...................................................................................................................................................................12

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MainPower New Zealand Limited Section 8 Evaluation of Performance

List of Tables
Table 1 Grid Exit Point Planned Project Activity ...........................................................................................................................4
Table 2 Sub-transmission and Zone Substation Planned Project Activity ....................................................................................4
Table 3 Distribution Network Planned Project Activity ................................................................................................................5
Table 4 Secondary Systems Planned Project Activity ...................................................................................................................5
Table 5 MainPower Financial Performance Overview .................................................................................................................5
Table 6 Evaluation of Customer-Oriented Performance ..............................................................................................................6
Table 7 Summary of Research Insights.........................................................................................................................................6
Table 8 Network Performance Targets ........................................................................................................................................7
Table 9 Resilience .........................................................................................................................................................................7
Table 10 Operational Effectiveness ..............................................................................................................................................7
Table 11 Financial Efficiency ........................................................................................................................................................7
Table 12 Safety .............................................................................................................................................................................8
Table 13 Regulatory Compliance..................................................................................................................................................8
Table 14 Environmental Performance .........................................................................................................................................8
Table 15 Asset Maturity Implementation Plan ............................................................................................................................9
Table 16 Understanding Defining Requirement’s Improvements................................................................................................9
Table 17 Lifecycle Decision Making Improvements ...................................................................................................................10
Table 18 Asset Management Enablers Improvements ..............................................................................................................10

List of Figures
Figure 1 Feeder Reliability Planned and Unplanned ....................................................................................................................7
Figure 2 Benchmark – Network Operating Expenditure ............................................................................................................10
Figure 3 Benchmark – Non Network Operating Expenditure.....................................................................................................11
Figure 4 Benchmark – Network Capital Expenditure .................................................................................................................11
Figure 5 Benchmark – Reliability SAIFI .......................................................................................................................................12
Figure 6 Benchmark – Reliability SAIDI ......................................................................................................................................12

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MainPower New Zealand Limited Section 8 Evaluation of Performance

8. Evaluation of Performance
The evaluation of MainPower’s performance for the reporting year is broken into the following components and
commented on below.
• Project Delivery (Physical Performance)
• Financial
• Service Levels
• Asset Maturity

8.1 Project Delivery Performance


MainPower’s lifecycle asset management processes are structured on a total lifecycle cost of asset ownership. The
framework has its foundation in the activities that occur over the lifetime of the physical asset. These activities are outlined
in the figure below.

8.1.1 Grid Exit Point


Description of planned project activity related to Grid Exit Points (GXP).
Description Work Status Update
Kaiapoi Possible GXP purchase from Transpower. Idea Under Review
Southbrook New feeder required to support load growth in Woodend Planning Will now be
and Pegasus. Forms part of the new Rangiora East Zone provisioned as
Substation. part of the
Southbrook
substation
upgrade
2020/2021
Ashley New feeder required to support load growth in Woodend Planning Required for
and Pegasus. Forms part of the new Rangiora East Zone network
Substation. upgrade 2023
Table 1 Grid Exit Point Planned Project Activity

8.1.2 Sub-transmission and Zone Substation


Description of planned project activity related to sub-transmission and zone substations.
Description Work Status Update
Ludstone Switchgear Renewal of Ludstone switchgear restoring n-1 supply as Planning In design – to be
Renewal determined by MainPower design and security of supply completed by 2020.
criteria.
Waipara Kaikoura Improve voltage stability as determined by MainPower Planning In design – to be
Capacitor Installation design and security of supply criteria. completed by 2020.
Culverden Hanmer Upgrade of conductor for purpose of snow loading enabling Planning Staged upgrade in
Conductor security of supply for 1 in 10-year snow event. conjunction with
Strengthening pole renewal work
to be confirmed
following pole
assessments.
Ashley River Crossing, Improve voltage stability as determined by MainPower Planning Will now be
smarts road deviation design and security of supply criteria. provisioned as part
of the Ashley
Tuahiwi 66kV build
2023.
Table 2 Sub-transmission and Zone Substation Planned Project Activity

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MainPower New Zealand Limited Section 8 Evaluation of Performance

8.1.3 Distribution Network


Description of planned project activity related to the distribution network.
Description Work Status Update
Cheviot North Voltage Improve voltage stability as determined by MainPower Planning In design,
Regulator and design and security of supply criteria. construction to
Capacitor Installation be 50%
complete by
year end.
Cheviot South Voltage Improve voltage stability as determined by MainPower Planning In design,
Regulator Installation design and security of supply criteria. construction to
be 50%
complete by
year end.
Ashley Regulator and Improve voltage stability as determined by MainPower Planning In design,
Capacity Installation design and security of supply criteria. construction to
and Conductor be 50%
Upgrade complete by
year end.
Table 3 Distribution Network Planned Project Activity

8.1.4 Secondary Systems


Description of planned project activity related to secondary systems.
Description Work Status Update
SCADA Upgrade Upgrade SCADA system to latest version – ‘Wonderware’ Design Transition from
and ensure solution is ADMS ready Plan
Advanced Network Reviewing market solutions that add value to day-to-day Idea New
Management System network management but also supports MainPower’s vision
Installation for the ‘Network of the Future’.
Voice, Telemetry, Complete the development of a comprehensive master plan Idea New
Automation and detailing MainPower’s physical secondary systems that
protection systems support MainPower’s vision of ‘Network of the Future’.
Table 4 Secondary Systems Planned Project Activity

8.2 Financial Performance


Area Budget Actual Budget Year to Date Budget
2018 2018 2019 2019 2020
Capital Customer $4,600,200 $6,714,496 $5,060,000 $3,585,522 $6,800,000
Expenditure Growth $1,860,045 $153,089 $330,000 $689,396 $1,584,000
(Capex) Renewal $5,659,315 $1,569,137 $5,740,616 $2,790,356 $8,863,000
R.S.E $706,349 $426,076 $1,038,000 $301,090 $2,256,316
Relocations $- $121,835 $- $- $-
Operating Preventive $2,539,862 $1,251,104 $2,877,070 $1,707,021 $2,262,544
Expense Fault $1,549,995 $1,365,431 $1,537,651 $953,320 $1,131,272
(Opex) Vegetation $1,000,000 $675,970 $1,010,000 $547,379 $674,911
Refurb $- $306,075 $- $870,248 $-
Operate $- $1,563,823 $- $946,664 $1,131,273
Table 5 MainPower Financial Performance Overview
MainPower experienced strong customer lead growth on the network with new subdivisions such as Ravenswood part A
and B. Other expenditure remained below planned while MainPower re-evaluates its OPEX and CAPEX spend as follows:
• Operational Costs
This is reflective of MainPower reviewing its approach to asset management and implementing a system that is
lowest cost to maintain while not compromising our corporate objectives. It is expected that operational costs
will return to budgetary levels as our asset maturity increases.

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MainPower New Zealand Limited Section 8 Evaluation of Performance

• Capital costs
This is reflective of MainPower reviewing its approach to network planning and ensuring we have asset condition
and criticality data that informs renewals and the enhancement projects are aligned with MainPower Security of
Supply Standards. As MainPower asset maturity increases it is expected that actual and budgeted will align.

8.3 Service Levels


8.3.1 Evaluation of Customer -Oriented Performance
Broad Focus Performance Indicator Actual 2019 Target Target
2019 (YTD) 2019 2020
Service Performance Customer Easy Score – effort required in dealing with 2.951 3.03 2.5 2.0
MainPower
Customer Friendliness of MainPower staff 3.86 4.49 4.5 5.0
Satisfaction2 Quality of work completed 4.43 4.75 4.8 4.8
Timeliness of service 3.57 4.0 4.5 4.5
Communication received throughout 3.29 3.92 4.5 4.5
Reliability of MainPower staff 3.57 4.03 4.5 4.5
The final price 3.23 3.94 4 4
Customer Percentage of complaints resolved by end of day one 30% 27% 35% 35%
Complaints Percentage of complaints resolved within two to 37% 30% 50% 50%
seven working days
Percentage of complaints resolved within seven to 23% 11% 15% 15%
twenty working days
Percentage of complaints resolved after more than 20 10% 32% Less than Less than
working days 5% 5%
Corporate Social Community Trust Score – perceptions of competence
Responsibility and benevolence3
Is capable and effective 88% 89% 90% 90%
Carries out it’s duties very well 91% 87% 90% 90%
Acts in the interest of local residents 81% 79% 90% 90%
Table 6 Evaluation of Customer-Oriented Performance
1Measure: 1 – Very low effort, 5 – Very high effort
2Measure: 1 – Very dissatisfied, 5 – Very satisfied
3Metric of trust and confidence based on three statements: carries out duties well, is capable and effective, and acts in the interest of

local residents.

IMPORTANCE SATISFACTION SATISFACTION


MEASURE OF PERFORMANCE
RATING 20192 RATING 20193 RATING TARGET
2020-2029

Continuity – keeping the power on 96% 95% 95%


Price – keeping costs down 97% 55% 70%
Restoration – reducing the length of time when power is off 88% 86% 85%
Quality – keeping flickering or dimming lights to a minimum 90% 90% 85%
Accessibility – easy to contact my provider when needed 92% 83% 85%
Communication – keeping you informed of the electricity network 86% 79% 85%
Table 7 Summary of Research Insights
2Measure: Percentage of respondents rating the aspect ‘important’ and ‘very important’.
3Measure: Percentage of respondents rating the aspect ‘satisfied’ and ‘very satisfied’.

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MainPower New Zealand Limited Section 8 Evaluation of Performance

8.3.2 Quality of Supply


Broad Focus Performance Indicator Actual YTD Target Target
2018 2019 2019 2020
Reliability of Supply SAIDI (normalised) 213 163 123 170
SAIFI (normalised) 1.44 1.29 1.57 1.71
Unplanned faults per 100kms (during the year) 6.33 3.50 6.10 6.37
Unplanned outages – percentage restored in under 3 95.4% 75% 97% 97%
hours
Table 8 Network Performance Targets
In 2017 we exceeded our target SAIDI and SAIFI due to less than optimal outage planning. In the current reporting cycle we
are within targets because of improved processes around the management of planned outages, where the work planning
role has been implemented to ensure that our works program aligns with our outages.

8.3.3 Resilience
PERFORMANCE INDICATOR Actual YTD TARGET TARGET
2018 2019 2019 2020–2029
Unplanned outages – percentage restored in under 3 hours 95.4 75% 97% 97%
Table 9 Resilience

8.3.4 Feeder Reliability

Figure 1 Feeder Reliability Planned and Unplanned

Summary
• The worst performing feeder was 2692 which feeds the Loburn area. Defective conductor and birds were the main
causes of disruption along this feeder. It is expected that this will be addressed due to planed upgrades in the area.
• Feeder S13 had two main causes of unplanned outage; defective equipment and machinery contact. The
machinery contact was the result of subdivision construction and as such is unlikely to be repeated. Removing this
from the SAIFI contribution would bring this feeder under the desired level.
• Feeder K1 performed poorly due to vehicle accidents and a number of lightning related outages.

8.3.5 Operational Effectiveness


PERFORMANCE INDICATOR Actual YTD TARGET TARGET
2018 2019 2019 2020–2029
Planned Work Vs Actual Work (Cost) 91% N/A 95% 95%
Field staff utilisation 76% N/A 76% 76%
Table 10 Operational Effectiveness

8.3.6 Financial Efficiency


PERFORMANCE INDICATOR Actual YTD TARGET TARGET
2018 2019 2019 2020–2029
Average line charge per customer $1124 N/A $1,244 $1,244
Average kWh per customer 15.078c N/A 15.078c 15.078c
Table 11 Financial Efficiency

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MainPower New Zealand Limited Section 8 Evaluation of Performance

8.3.7 Overall Safety


PERFORMANCE INDICATOR Actual YTD TARGET TARGET
2018 2019 2019 2020–2029
Number of work-related accidents resulting in lost time 2 N/A Nil Nil
Number of Public Safety Incidents Nil Nil Nil Nil
Public safety communications contribute to positive behavioural change8 28% N/A 28% 28%
Table 12 Safety
8Measure: Percentage of respondents who changed or considered their behavior due to a safety message from MainPower.

8.3.8 Regulatory Compliance


PERFORMANCE INDICATOR Actual YTD TARGET TARGET
2018 2019 2019 2020–2029
Number of regulatory non-compliance enquiries 0 0 0 0
Table 13 Regulatory Compliance

8.3.9 Environment Performance


PERFORMANCE INDICATOR Actual YTD TARGET TARGET
2018 2019 2019 2020–2029
Understand our Carbon Footprint N/A N/A N/A Develop
Targets
Number of Resource Consent Breaches 0 0 0 0
Table 14 Environmental Performance

8.4 Asset Maturity


8.4.1 Asset Maturity Against Plan 2018
The following implementation plan details how MainPower proposes to reach the Asset Maturity targets identified over the
next three years.

2018-19 2019-20 2020-21


Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20
Understanding and Defining Requirements
Asset Management Policy & Strategy
Levels of Service & Performance Management
Demand Forecasting
Asset Register Data
Asset Condition Assessment
Risk Management
Asset Lifecycle Decision Making
Decision Making
Operational Planning & Reporting
Maintenance Planning
Capital Investment Strategies
Financial & Funding Strategies
Asset Management Enablers
Asset Management Teams
Asset Management Plans

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MainPower New Zealand Limited Section 8 Evaluation of Performance

Information Systems
Service Delivery Models
Quality Management
Improvement Planning
Table 15 Asset Maturity Implementation Plan

Understanding Improvement Actual Target


Defining Date
Requirements
Asset Management MainPower’s approach to asset management has been clearly Completed. 2018
Policy and Strategy defined and linked to the Statement of Corporate Intent and Asset Policy developed
business strategy, through the Asset Management Policy to the creating alignment
Asset Management Plan. between corporate
objectives and asset
management.
Levels of Service and MainPower has introduced the Voice of the Customer Programme 2019
Performance that has enabled MainPower to translate customer requirements
Management into network performance.
Demand Forecasting This remains a key focus for MainPower, taking into consideration 2019
customer segments, location and network impact of an economy as
it transitions to low carbon.
Asset Register Data Major advancements have been made in ensuring asset data, Completed. 2018
including condition data, is logged against the asset in the Went live with a new
Computerised Maintenance Management System (CMMS). CMMS, poles loaded,
remainder of the assets
in Q1 2019.
Asset Condition A condition assessment program is in place for poles, MainPower’s 2019
Assessment largest asset class by quantity. All pole renewals are now informed
by condition data, compliance and criticality.
Risk Management Risk has been integrated into Assets and Capital Works, including 2019
division or team risk, Plant, Equipment and Activity Risk, including
documentation of controls. High risks are introduced in the
Corporate Risk Register.
Table 16 Understanding Defining Requirement’s Improvements

Lifecycle Decision Improvement Target


Making Date
Decision Making Decision making for major capital is assessed against a capitalisation Completed. 2019
process that is informed by a security of supply standard and MainPower introduces its
reliability classification. MainPower is introducing risk-based security of supply
decision making across its business. standard – projects link
to this standard.
Asset Class A Condition and Criticality Framework has been introduced and 2019
[Renewal] Strategies largely remains to be implemented.
(ACRS)
Operational Business emergency response plans and escalation are developed 2019
Planning and and implemented. Asset planning is informed by demand (i.e.,
Reporting quantity of customer connections etc).
Maintenance Maintenance activities are prescribed for all asset classes. These Completed. 2018
Planning remain to be implemented in the CMMS for all assets. MainPower has asset
maintenance standards
for all its assets, these are
being introduced into the
CMM in Q1 2019.
Capital Investment Capital expenditure is prescribed linking cost, risk and network 2019
Strategies performance.

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MainPower New Zealand Limited Section 8 Evaluation of Performance

Lifecycle Decision Improvement Target


Making Date
Financial and Funding for capital expenditure exists on a 10-year cycle, informed 2019
Funding Strategies by asset performance, reliability and supporting assumptions.
Table 17 Lifecycle Decision Making Improvements

Asset Improvement Target


Management Date
Enablers
Asset Management The Assets and Capital Works team has been created within 2019
Teams MainPower. Staff understand their roles and asset management
best practise is supported by the Executive Leadership Team.
Asset Management MainPower’s AMP describes service levels, assets and includes a 3 Completed. 2018
Plan year and 10 year forecast of expenditure. Asset management This asset management
improvement plan created. plan.
Information Systems A comprehensive asset register exists. Systems have been Completed. 2018
introduced to track customer requests and defects. Works MainPower CMMS is now
management remains to be automated using schedules linked to the one source of the
assets creating work orders automatically. truth for all our assets.
Service Delivery Service Level Agreements are currently being implemented, 2019
Models defining minimum levels of service required from internal crews
and where external providers are required, formal contracts exist.
Quality Management MainPower is accredited to ISO9001 and all asset management 2019
processes are documented.
Improvement Improvement planning is currently in place and includes efficiency 2019
Planning and productivity within the business and an upgrade to the CMMS.
The projects are approved, funding in place and progress against
the plan is reported to the executive and Board.
Table 18 Asset Management Enablers Improvements

8.5 Benchmarking
MainPower will assess itself against other EDBs in accordance with Profits, Price, Expenditure and Network Reliability.

It is important to note that electricity networks are complex, and these complexities cannot be fully represented by the
information and indicators available through the data published in accordance with the information disclosure framework.
Topography, climate, growth rates (past and current), historical design practices and network configuration are all factors
which can significantly impact network performance. This analysis therefore provides a high-level indication of performance
only.

8.5.1 Network Operating Expenditure


Network Operating Expenditure, which includes planned and unplanned network maintenance and fault response, was low
this year for MainPower. This reflects MainPower reviewing its Asset Management practices, detailed in the last AMP.
Expenditure is expected to increase to above the peer group average as MainPower implements its revised asset
management practices.

Network opex/ICP
300

200
$/ICP

100

0
2014 2015 2016 2017 2018
MainPower NZ Peer group average
Peer group first quartile Peer group third quartile

Figure 2 Benchmark – Network Operating Expenditure

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MainPower New Zealand Limited Section 8 Evaluation of Performance

8.5.1 Non-Network Operating expenditure


Non-network Operating Expenditure which includes corporate, business support, asset management planning and Network
Operation, has increased by 50% since 2014 and is now similar to the peer group average.

Non-network opex/ICP
400

300
$/ICP

200

100

0
2014 2015 2016 2017 2018
MainPower NZ Peer group average
Peer group first quartile Peer group third quartile

Figure 3 Benchmark – Non Network Operating Expenditure

8.5.2 Capital Expenditure on Network Assets


Capital expenditure is the cumulative expenditure required to delivery Network:
• Capacity;
• Security of Supply; and
• Asset Renewals.
Overall MainPower’s capital expenditure on network assets was in line with its peer group first quartile. Going forward this
is expected to increase due to works required to address security of supply and MainPower’s renewals program.

Network capex/ICP
800

600
$/ICP

400

200

0
2014 2015 2016 2017 2018
MainPower NZ Peer group average
Peer group first quartile Peer group third quartile

Figure 4 Benchmark – Network Capital Expenditure

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MainPower New Zealand Limited Section 8 Evaluation of Performance

8.5.3 Reliability
SAIFI and SAIDI are the disclosed “normalised” values where major event days, for example from earthquakes or severe
storms, have been scaled so that the result reflects a more typical and comparable view of network performance.
• Normalised SAIFI represents the frequency of planned and unplanned customer outages. It is in line with the peer
group first quartile. This is expected to increase as MainPower implements its revised asset management
practices.
• Normalised SAIDI represents the average duration of planned and unplanned customer outages. It is in line with
the peer group first quartile. This too is expected to increase as MainPower implements its revised asset
management practices as line maintenance outages tend to be longer than fault outages.
.

Normalised SAIFI
4.0
SAIFI interruptions)

3.0

2.0

1.0

0.0
2014 2015 2016 2017 2018
MainPower NZ Peer group average
Peer group first quartile Peer group third quartile

Figure 5 Benchmark – Reliability SAIFI

Normalised SAIDI
400
SAIDI (minutes)

200

0
2014 2015 2016 2017 2018
MainPower NZ Peer group average
Peer group first quartile Peer group third quartile

Figure 6 Benchmark – Reliability SAIDI

Asset Management Plan 2019-2029 Page 12 of 12


Asset Management Plan
2019 – 2029

Section 9 – Capability to Deliver


This section describes how MainPower will use a lifecycle approach to deliver on its asset management obligations.
MainPower New Zealand Limited Section 9 Capability to Deliver

Contents
9. Capability to Deliver .................................................................................................................. 4
9.1 Our People................................................................................................................................. 5
9.1.1 Selecting People for Our Team .......................................................................................................................................5
9.1.2 Rewarding Our People ....................................................................................................................................................5
9.1.3 Developing Our People through Training, Competency and Professional Development ...............................................5
9.1.4 Keeping Our People Well through Our Employee Wellness Programme .......................................................................5
9.2 Capability to Deliver .................................................................................................................. 6
9.2.1 Network Operations Team ..............................................................................................................................................6
9.2.2 Build Team ......................................................................................................................................................................7
9.2.3 Planning Team .................................................................................................................................................................7
9.3 Field Services (Operations) Resourcing ....................................................................................... 7
9.4 Resourcing Requirements .......................................................................................................... 8

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MainPower New Zealand Limited Section 9 Capability to Deliver

List of Figures
Figure 1 Asset Lifecycle Planning .................................................................................................................................................4
Figure 2 Alignment of Roles and Responsibilities Against Lifecycle Activities .............................................................................4
Figure 3 Our Assets and Capital Works ........................................................................................................................................6
Figure 4 Our Network Operations ................................................................................................................................................6
Figure 5 Our Build Team ...............................................................................................................................................................7
Figure 6 Our Planning Team .........................................................................................................................................................7
Figure 7 Resourcing Model...........................................................................................................................................................8

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MainPower New Zealand Limited Section 9 Capability to Deliver

9. Capability to Deliver
MainPower has adopted a lifecycle asset management process structured on a total lifecycle cost of asset ownership. The
framework has its foundation in the activities that occur over the lifetime of the physical asset. These activities are outlined
in the figure below.

Figure 1 Asset Lifecycle Planning

Capability and competencies that support the asset lifecycle and the implementation of this Asset Management Plan are
aligned with the asset lifecycle. The core competencies are:
- Program and Project Management
- Asset and Maintenance Management
- Engineering and Design
- Network Operations
- Field Operators
- Field Services – Service Delivery
The interaction of the roles throughout the Asset Lifecycle activities are detailed below. Clear definitions about the roles are
translated into Position Descriptions for the individuals. Where gaps exist between the role requirements and the
competencies of the individual, a personal development program is required to address the gap.

Figure 2 Alignment of Roles and Responsibilities Against Lifecycle Activities

Asset Management Plan 2019-2029 Page 4 of 8


MainPower New Zealand Limited Section 9 Capability to Deliver

9.1 Our People


MainPower’s ability to deliver the Asset Management Plan and its success relies on our people having the capability and
capacity to respond to the changing needs of our customers. To meet this rapid rate of change we must maintain a strong
employer value proposition (EVP) that will allow us to attract and retain top talent in a competitive market.

9.1.1 Selecting People for Our Team


Our overarching position on selecting people for our team is that we will try our best to ensure that our people are
competitive in attaining advancement within MainPower. Even so, we will ensure that all critical positions are also
contestable. This practice meets our objective of employing the best person for each role. We are also committed to
growing diversity in our workplace, and we support initiatives such as Girls with Hi-Vis. Our People and Culture Department
oversees our robust selection process, with help from external search agencies as required.

9.1.2 Rewarding Our People


Our remuneration policy provides a clear and structured approach to managing remuneration for all employees. Our
objective is that the policy is:
- fair and consistent
- simple and easy to understand
- affordable and recognises the environment in which we operate
- a transparent way to understand the value of positions within MainPower
- able to ensure we have internal relativity (i.e. similar roles are paid in a similar way) and external competitiveness.

9.1.3 Developing Our People through Training, Competency and Professional Development
Our People and Culture department is responsible for developing, coordinating and monitoring our yearly training and
development plan for all MainPower staff. The department is also responsible for ensuring that internal and external
training providers are fit for purpose.
Individual managers are responsible for identifying and addressing training needs within their respective work areas. Only
employees assessed as competent can carry out a task unsupervised. The GM – People and Culture, in conjunction with
executive management, is responsible for ensuring appropriate career path planning and appropriate succession planning is
in place within MainPower.
Supervisors have completed a skills matrix for all field staff positions. The matrix determines:
- What skills and other competencies are required for each position;
- When a skill needs refreshing;
- When a skill will expire; and
- Whether an expired skill needs renewing.

9.1.4 Keeping Our People Well through Our Employee Wellness Programme
Our Employee Wellness Programme is designed to include initiatives that encourage and assist employees to maintain their
overall personal wellbeing and fitness for work. The programme includes access to:
- First Aid training;
- Ergonomic assessments;
- Our Occupational Counselling Programme (OCP); and
- Our drug and alcohol testing programme.

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MainPower New Zealand Limited Section 9 Capability to Deliver

9.2 Capability to Deliver


The Network team has accountability for asset management and overall network performance. The Network Team is
structure on a ‘Plan, Build, Operate’ basis.

Figure 3 Our Assets and Capital Works

The proposed structure is designed to achieve a number of objectives:


• Expand our team capabilities by introducing new functions that are becoming essential for a best practice, modern
asset manager;
• Create a stronger focus on our core activities, by splitting into more narrowly defined groups;
• Setting the asset management team up to be able to provide more effective guidance and support to our other
business teams, including Engineering, Project Delivery, Commercial, Safety and Business Risk, and Contracting
Operations;
• Setting the asset management team up to be able to provide effective guidance and support to our Network
Operations team, especially through the migration to an Advanced Distribution Management System;
• Enhance the quality of our information sources and ability to use this for optimal decision making;
• Ensuring a focus on network-targeted research, development and pilot programs, leading to continually improving
and expanding business-as-usual products and solutions;
• Expand, using the Plan Build Operate platform services offered by MainPower; and
• Extend beyond network management (our core), to energy management and possible Open Network Framework
in the future.

9.2.1 Network Operations Team


The diagram below shows the tasks of our Network Management, Fault Response, Customer, Reporting, and Monitoring
operations.

Figure 4 Our Network Operations

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MainPower New Zealand Limited Section 9 Capability to Deliver

9.2.2 Build Team


The diagram below shows the tasks of each part of our project delivery cycle.

Figure 5 Our Build Team

9.2.3 Planning Team

Figure 6 Our Planning Team

9.3 Field Services (Operations) Resourcing


Most field services resourcing is completed internally within MainPower. The way the works are contracted internally is
changing, becoming more structured. This is achieved by:
- Having an internal contract and service level agreements between the internal and field service resources;
- The implementation of rate cards for all contracted activities that are pre-costed and updated regularly using
supply change management; and
- Clearly defining what work is required, where it is required and what the outcomes need to be.
The main reason for reviewing the way works are contracted internally is primarily to improve productivity, efficiency and
quality.

Where a gap in resourcing exists, procurement and contractor engagement processes are in place to secure external
resource as required to achieve the objectives of the Asset Management Plan and the Business Plan.
Asset Management Plan 2019-2029 Page 7 of 8
MainPower New Zealand Limited Section 9 Capability to Deliver

9.4 Resourcing Requirements


Resourcing is defined for Network Development, Maintenance and Renewals based on typical project resourcing models
and rate card information that defines Labour, Materials and Plant across all work streams.
‘S’ Curves are applied to work streams to show a distribution of expenditure throughout the year that models typical
project expenditure.
Human resourcing is allocated across all aspects of the work system PM, AM, NOCC (WP, RP, NM), Records, SD, OH, UG, WS
and third-party contractors. Works management resourcing is applied consistently.

Figure 7 Resourcing Model

Gaps have been identified within the resourcing model, however MainPower is confident that we can contract the extra
resource in both the Network and Field Services teams as required.

Asset Management Plan 2019-2029 Page 8 of 8


Asset Management Plan
2019 – 2029

Appendices

This section provides additional information to support MainPower’s Asset Management Plan, including our information
disclosure schedules.
MainPower New Zealand Limited Appendices

Contents
Appendix 1 – Glossary of Terms and Abbreviations ........................................................................... 3
Appendix 2 – Description of Asset Management Systems .................................................................. 5
Appendix 3 – Directors’ Certificate .................................................................................................... 6
Appendix 4 – Information Disclosure Asset Management Plan Schedules .......................................... 7

Asset Management Plan 2019-2029 Page 2 of 6


MainPower New Zealand Limited Appendices

Appendix 1 – Glossary of Terms and Abbreviations

TERM OR ABBREVIATION DEFINITION

AHI Asset Health Indicator


AMP Asset Management Plan
CAPEX Capital Expenditure
CDEM Civil Defence Emergency Management
CIMS Coordinated Incident Management System
CMMS Computerised Maintenance Management System
CPG Capital Planning Group
DG Distributed Generation
Distribution Network The power lines and underground cables that transport electricity from the national grid to homes
and businesses.
EVP employee value proposition
FY Fiscal Year
GIS Geographic Information System
GWH Giga-watt hour
GXP Grid Exit Point. A point at which MainPower’s network connects to Transpower’s transmission
network.
HILP High Impact Low Probability
HRIS Human Resource Information System
HSEQ Health, Environment, Safety and Quality
ICP Installation Control Point
IIMM International Infrastructure Management Manual
IoT Internet of Things
IS system Information Systems system
IT Information Technology
KPI Key Performance Indicator
kV kilo-volt
Master Plan Long term network capacity development plan
MP network MainPower network
MVA Mega Volt Ampere
MW Megawatt. One megawatt = 1,000 kilowatts = 1,000,000 watts.
MWhr Megawatt hour
n-1 An indication of power supply security that specifically means that when one circuit fails, another
will be available to maintain an uninterrupted power supply
OCP Occupational Counselling Programme
OGHV Over Ground High Voltage
OGLV Over Ground Low Voltage
PCM Control Systems Automation
PDS Project Delivery System

Asset Management Plan 2019-2029 Page 3 of 6


MainPower New Zealand Limited Appendices

PMO Project Management Office


RMA Resource Management Act
ROCOF Rate of Change of Frequency
SAIDI System Average Interruption Duration Index
SAIFI System Average Interruption Frequency Index
SAMP Strategic Asset Management Plan (this document)
SCADA Supervisory Control and Data Acquisition
SCI Statement of Corporate Intent. An annual document that outlines the overall intentions of the
company and the objectives which the Directors and Trustees have agreed.
SSR Solution Study Report
Sub-transmission An intermediate voltage used for connections between transmission connection points/bulk supply
substations and zone substations. Sub-transmission is also used to connect between zone
substations.
Transmission Transpower owns and operates the national grid. The high-voltage transmission network that
connects areas of generation with towns and cities across New Zealand.
UGHV Under Ground High Voltage
UGLV Under Ground Low Voltage
VAR Volt Amps Reactive: a unit of the reactive component of electrical power.
VoC Voice of the Customer
Voltage The amount of potential energy between two circuits. The greater the voltage, the greater the flow
of electrical current.
WACC Weighted Average Cost of Capital
Substation A collection of equipment at one location, including any necessary housing, used to convert or
transform electric energy and connect between two or more feeders.
Zone Substation A substation that converts energy from transmission or sub-transmission voltages to distribution
voltages.

Asset Management Plan 2019-2029 Page 4 of 6


MainPower New Zealand Limited Appendices

Appendix 2 – Description of Asset Management Systems


System Description
Accounting Systems ▪ The TechnologyOne software platform (an Enterprise Resource Planning system) is used to integrate financial,
works and asset management information.
▪ Capital and maintenance expenditure is managed using a comprehensive financial system.
Asset Register ▪ The asset management suite within the TechnologyOne platform is the principal source of data related to
MainPower assets.
GIS ▪ MainPower uses GE’s Smallworld platform (a Geographic Information system) for the management of spatial
asset information.
▪ The TechnologyOne software platform has been integrated with the GIS system.
Infrastructure ▪ MainPower’s hardware and server software is continually updated consistent with modern high capacity
hardware platforms.
▪ Information security management includes maintaining offsite backup facilities for stored information for
protection from a security breach or disaster.
Works Management System ▪ The works management system issues and tracks jobs through the TechnologyOne software platform. It also
maintains cost and quality information.
▪ A comprehensive job reporting system provides managers with detailed information progress of the work plan,
work hours and cost against budget.
SCADA and Load ▪ Invensys Wonderware “Intouch” SCADA (supervisory control and data acquisition) system:
Management Systems - displays voltage, current, & status information in real time from remote points on the network
- receives instantaneous information on faults
- remotely operates equipment from the control centre.
▪ We operate Landis and Gyr ripple injection plants and On Demand load management software to control:
- customer water heaters to limit system peak loads and area loading constraints (mainly during winter
months)
- street lighting
- electricity retailer tariffs.
AutoCAD ▪ Detailed substation plans, standard construction drawings and many subdivision plans are prepared and stored in
AutoCAD
▪ Where applicable, these are linked to assets within TechnologyOne.
▪ Network details such as cable locations in trenches, boundary offsets, GPS location etc. are stored in AutoCAD to
be viewed without complicating the GIS system.
Customer Information ▪ This system is used to issue and maintain installation control points (ICPs) with retailers.
System (“CIS”) ▪ It also manages customer information, lines tariff and consumption data.
▪ Outage information is imported from the Outage Management System and stored against each customer.
▪ The CIS is linked to the GIS for customer location information.
▪ The CIS is maintained daily from event changes notified by Retailers and new connections.
▪ The CIS is an important tool for MainPower’s revenue protection.
Communication Systems ▪ Voice radio system for communication to field staff.
▪ Digital radio network for communicating with zone substations and other field equipment
▪ Sophisticated telephony system for general land based and mobile communication.
Human Resource Systems ▪ MainPower’s human resource information will be transferred to the TechnologyOne platform using an iterative,
incremental approach during 2016. This will include Employment Contracts, competency and skill set information
and safety and training records. A succession plan exists within each section.
Inventory Systems ▪ All stock and supply chain details are managed through the TechnologyOne software platform as a single entity.
▪ MainPower maintains a separate storage facility for its own stock.
Outage Management ▪ Traces across the GIS to identify all affected customers and switching points.
System ▪ For unplanned outages, all relevant fault information is entered into the GIS after the event.
▪ Reports are run from the GIS to generate outage statistics as required.

Asset Management Plan 2019-2029 Page 5 of 6


MainPower New Zealand Limited Appendices

Appendix 3 – Directors’ Certificate

Asset Management Plan 2019-2029 Page 6 of 6


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 11a: REPORT ON FORECAST CAPITAL EXPENDITURE
This schedule requires a breakdown of forecast expenditure on assets for the current disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms. Also required is a forecast of
the value of commissioned assets (i.e., the value of RAB additions)
EDBs must provide explanatory comment on the difference between constant price and nominal dollar forecasts of expenditure on assets in Schedule 14a (Mandatory Explanatory Notes).
This information is not part of audited disclosure information.

sch ref

7 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10
8 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29

9 11a(i): Expenditure on Assets Forecast $000 (in nominal dollars)


10 Consumer connection 3,586 6,800 6,936 7,075 7,216 7,361 7,508 7,658 7,811 7,967 8,127
11 System growth 689 1,584 9,159 257 1,369 800 2,475 9,487 6,635 3,374 -
12 Asset replacement and renewal 2,790 8,863 7,620 5,919 6,100 8,853 9,067 6,644 10,570 11,255 15,508
13 Asset relocations - - - - - - - - - - -
14 Reliability, safety and environment:
15 Quality of supply - - - - - - - - - - -
16 Legislative and regulatory - 917 - - - - - - - - -
17 Other reliability, safety and environment 301 1,340 2,377 1,064 1,086 1,115 1,321 1,208 1,264 1,314 1,531
18 Total reliability, safety and environment 301 2,256 2,377 1,064 1,086 1,115 1,321 1,208 1,264 1,314 1,531
19 Expenditure on network assets 7,366 19,503 26,092 14,315 15,772 18,129 20,371 24,997 26,280 23,911 25,166
20 Expenditure on non-network assets 2,250 4,069 3,366 3,433 3,502 3,572 3,643 3,716 3,791 3,866 3,944
21 Expenditure on assets 9,616 23,572 29,458 17,748 19,274 21,701 24,014 28,713 30,071 27,778 29,110
22
23 plus Cost of financing - - - - - - - - - - -
24 less Value of capital contributions 3,200 3,000 3,060 3,121 4,457 4,546 4,637 4,730 4,824 4,921 5,019
25 plus Value of vested assets - - - - - - - - - -
26
27 Capital expenditure forecast 6,416 20,572 26,398 14,627 14,817 17,155 19,377 23,983 25,246 22,857 24,090
28
29 Assets commissioned 14,957 12,649 17,913 12,586 10,904 12,902 15,088 18,907 21,099 19,730 19,800

30 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10
31 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29

32 $000 (in constant prices)


33 Consumer connection 3,586 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800
34 System growth 689 1,584 8,979 248 1,290 739 2,242 8,424 5,776 2,880 -
35 Asset replacement and renewal 2,790 8,863 7,471 5,689 5,748 8,179 8,212 5,900 9,202 9,606 12,977
36 Asset relocations - - - - - - - - - - -
37 Reliability, safety and environment:
38 Quality of supply - - - - - - - - - - -
39 Legislative and regulatory - 917 - - - -
40 Other reliability, safety and environment 301 1,340 2,330 1,023 1,023 1,030 1,196 1,072 1,101 1,122 1,281
41 Total reliability, safety and environment 301 2,256 2,330 1,023 1,023 1,030 1,196 1,072 1,101 1,122 1,281
42 Expenditure on network assets 7,366 19,503 25,580 13,759 14,862 16,748 18,451 22,196 22,879 20,408 21,058
43 Expenditure on non-network assets 2,250 4,069 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300
44 Expenditure on assets 9,616 23,572 28,880 17,059 18,162 20,048 21,751 25,496 26,179 23,708 24,358
45
46 Subcomponents of expenditure on assets (where known)
47 Energy efficiency and demand side management, reduction of energy losses - - - - - - - - - - -
48 Overhead to underground conversion 859 550 550 450 450 450 450 450 450 450 450
49 Research and development - - - - - - - - - - -

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 1 S11a.Capex Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 11a: REPORT ON FORECAST CAPITAL EXPENDITURE
This schedule requires a breakdown of forecast expenditure on assets for the current disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms. Also required is a forecast of
the value of commissioned assets (i.e., the value of RAB additions)
EDBs must provide explanatory comment on the difference between constant price and nominal dollar forecasts of expenditure on assets in Schedule 14a (Mandatory Explanatory Notes).
This information is not part of audited disclosure information.

sch ref
50

51 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10
52 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29
53 Difference between nominal and constant price forecasts $000
54 Consumer connection 0 - 136 275 416 561 708 858 1,011 1,167 1,327
55 System growth - - 180 10 79 61 233 1,063 859 494 -
56 Asset replacement and renewal - 0 149 230 352 674 855 744 1,368 1,649 2,532
57 Asset relocations - - - - - - - - - - -
58 Reliability, safety and environment:
59 Quality of supply - - - - - - - - - - -
60 Legislative and regulatory - 0 - - - - - - - - -
61 Other reliability, safety and environment - (0) 47 41 63 85 125 135 164 193 250
62 Total reliability, safety and environment - (0) 47 41 63 85 125 135 164 193 250
63 Expenditure on network assets 0 0 512 556 910 1,381 1,920 2,800 3,402 3,503 4,108
64 Expenditure on non-network assets - - 66 133 202 272 343 416 491 566 644
65 Expenditure on assets 0 0 578 689 1,112 1,653 2,264 3,217 3,892 4,070 4,752
66

67 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5


for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24
68 11a(ii): Consumer Connection
69 Consumer types defined by EDB* $000 (in constant prices)
70 Residential 2,117 3,953 3,953 3,953 3,953 3,953
71 Irrigation 885 1,678 1,678 1,678 1,678 1,678
72 Large User 95 497 497 497 497 497
73 Streelights 107 203 203 203 203 203
74 Other 382 469 469 469 469 469
75 *include additional rows if needed
76 Consumer connection expenditure 3,586 6,800 6,800 6,800 6,800 6,800
77 less Capital contributions funding consumer connection 3,200 3,000 3,000 4,200 4,200 4,200
78 Consumer connection less capital contributions 386 3,800 3,800 2,600 2,600 2,600

79 11a(iii): System Growth


80 Subtransmission 3,480 1,241 739
81 Zone substations 1,584 5,078 248 50
82 Distribution and LV lines 689
83 Distribution and LV cables
84 Distribution substations and transformers 200
85 Distribution switchgear 221
86 Other network assets
87 System growth expenditure 689 1,584 8,979 248 1,290 739
88 less Capital contributions funding system growth
89 System growth less capital contributions 689 1,584 8,979 248 1,290 739
90

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 2 S11a.Capex Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 11a: REPORT ON FORECAST CAPITAL EXPENDITURE
This schedule requires a breakdown of forecast expenditure on assets for the current disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms. Also required is a forecast of
the value of commissioned assets (i.e., the value of RAB additions)
EDBs must provide explanatory comment on the difference between constant price and nominal dollar forecasts of expenditure on assets in Schedule 14a (Mandatory Explanatory Notes).
This information is not part of audited disclosure information.

sch ref

91 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5


92 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24

93 11a(iv): Asset Replacement and Renewal $000 (in constant prices)


94 Subtransmission 48 39 21 21 21
95 Zone substations 2,500
96 Distribution and LV lines 2,474 5,474 3,914 2,191 2,188 2,086
97 Distribution and LV cables 316 806 891 899 990 1,010
98 Distribution substations and transformers 766 848 804 762 731
99 Distribution switchgear 1,500 1,500 1,500 1,500 1,500
100 Other network assets 270 280 273 287 331
101 Asset replacement and renewal expenditure 2,790 8,863 7,471 5,689 5,748 8,179
102 less Capital contributions funding asset replacement and renewal
103 Asset replacement and renewal less capital contributions 2,790 8,863 7,471 5,689 5,748 8,179
104

105 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5


106 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24

107 11a(v): Asset Relocations


108 Project or programme* $000 (in constant prices)
109 [Description of material project or programme] - - - - -
110 [Description of material project or programme] - - - - - -
111 [Description of material project or programme] - - - - - -
112 [Description of material project or programme] - - - - - -
113 [Description of material project or programme] - - - - - -
114 *include additional rows if needed
115 All other project or programmes - asset relocations
116 Asset relocations expenditure - - - - - -
117 less Capital contributions funding asset relocations
118 Asset relocations less capital contributions - - - - - -
119

120 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5


121 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24

122 11a(vi): Quality of Supply


123 Project or programme* $000 (in constant prices)
124 [Description of material project or programme] - - - - - -
125 [Description of material project or programme] - - - - - -
126 [Description of material project or programme] - - - - - -
127 [Description of material project or programme] - - - - - -
128 [Description of material project or programme] - - - - - -
129 *include additional rows if needed
130 All other projects or programmes - quality of supply - - - - - -
131 Quality of supply expenditure - - - - - -
132 less Capital contributions funding quality of supply - - - - - -
133 Quality of supply less capital contributions - - - - - -
134

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 3 S11a.Capex Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 11a: REPORT ON FORECAST CAPITAL EXPENDITURE
This schedule requires a breakdown of forecast expenditure on assets for the current disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms. Also required is a forecast of
the value of commissioned assets (i.e., the value of RAB additions)
EDBs must provide explanatory comment on the difference between constant price and nominal dollar forecasts of expenditure on assets in Schedule 14a (Mandatory Explanatory Notes).
This information is not part of audited disclosure information.

sch ref

135 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5


136 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24

137 11a(vii): Legislative and Regulatory


138 Project or programme* $000 (in constant prices)
139 Compliance and Safety Replacement Project 917 - - - -
140 [Description of material project or programme] - - - - -
141 [Description of material project or programme] - - - - -
142 [Description of material project or programme] - - - - -
143 [Description of material project or programme] - - - - -
144 *include additional rows if needed
145 All other projects or programmes - legislative and regulatory
146 Legislative and regulatory expenditure - 917 - - - -
147 less Capital contributions funding legislative and regulatory
148 Legislative and regulatory less capital contributions - 917 - - - -
149
150 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5
for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24
151 11a(viii): Other Reliability, Safety and Environment
152 Project or programme* $000 (in constant prices)
153 Conductor Upgrades 301 300 715 - - -
154 Zone Substations 439 1,013 - 200 -
155 Switchgear Upgrades 496 338 849 - -
156 Network Automation 105 124 123 123 130
157 Network Reinforcement - 141 51 700 900
158 *include additional rows if needed
159 All other projects or programmes - other reliability, safety and environment
160 Other reliability, safety and environment expenditure 301 1,340 2,330 1,023 1,023 1,030
161 less Capital contributions funding other reliability, safety and environment
162 Other reliability, safety and environment less capital contributions 301 1,340 2,330 1,023 1,023 1,030
163

164 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5


165 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24

166 11a(ix): Non-Network Assets


167 Routine expenditure
168 Project or programme* $000 (in constant prices)
169 Buildings 149 270 100 100 100 100
170 Motor 30 54 - - - -
171 Plant 258 467 400 400 400 400
172 Computers 469 848 800 800 800 800
173 Technology projects 1,344 2,430 2,000 2,000 2,000 2,000
174 *include additional rows if needed
175 All other projects or programmes - routine expenditure
176 Routine expenditure 2,250 4,069 3,300 3,300 3,300 3,300
177 Atypical expenditure
178 Project or programme*
179 [Description of material project or programme]

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 4 S11a.Capex Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 11a: REPORT ON FORECAST CAPITAL EXPENDITURE
This schedule requires a breakdown of forecast expenditure on assets for the current disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms. Also required is a forecast of
the value of commissioned assets (i.e., the value of RAB additions)
EDBs must provide explanatory comment on the difference between constant price and nominal dollar forecasts of expenditure on assets in Schedule 14a (Mandatory Explanatory Notes).
This information is not part of audited disclosure information.

sch ref
180 [Description of material project or programme]
181 [Description of material project or programme]
182 [Description of material project or programme]
183 [Description of material project or programme]
184 *include additional rows if needed
185 All other projects or programmes - atypical expenditure
186 Atypical expenditure - - - - - -
187
188 Expenditure on non-network assets 2,250 4,069 3,300 3,300 3,300 3,300

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 5 S11a.Capex Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 11b: REPORT ON FORECAST OPERATIONAL EXPENDITURE
This schedule requires a breakdown of forecast operational expenditure for the disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms.
EDBs must provide explanatory comment on the difference between constant price and nominal dollar operational expenditure forecasts in Schedule 14a (Mandatory Explanatory Notes).
This information is not part of audited disclosure information.

sch ref
7 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10
8 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29

9 Operational Expenditure Forecast $000 (in nominal dollars)


10 Service interruptions and emergencies 914 1,131 1,568 1,527 1,558 1,589 1,621 1,653 1,686 1,720 1,754
11 Vegetation management 646 675 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195
12 Routine and corrective maintenance and inspection 1,764 1,131 1,568 1,527 1,558 1,589 1,621 1,653 1,686 1,720 1,754
13 Asset replacement and renewal 2,076 2,263 3,136 3,054 3,115 3,178 3,241 3,306 3,372 3,440 3,509
14 Network Opex 5,400 5,200 7,292 7,149 7,292 7,438 7,587 7,739 7,893 8,051 8,212
15 System operations and network support 3,924 3,910 4,072 4,245 4,329 4,416 4,504 4,594 4,686 4,780 4,876
16 Business support 9,156 9,122 9,500 9,904 10,102 10,304 10,510 10,720 10,935 11,153 11,376
17 Non-network opex 13,080 13,032 13,572 14,148 14,431 14,720 15,014 15,315 15,621 15,933 16,252
18 Operational expenditure 18,480 18,232 20,864 21,298 21,724 22,158 22,601 23,053 23,514 23,985 24,464

19 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10
20 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29

21 $000 (in constant prices)


22 Service interruptions and emergencies 914 1,131 1,537 1,468 1,468 1,468 1,468 1,468 1,468 1,468 1,468
23 Vegetation management 646 675 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
24 Routine and corrective maintenance and inspection 1,764 1,131 1,537 1,468 1,468 1,468 1,468 1,468 1,468 1,468 1,468
25 Asset replacement and renewal 2,076 2,263 3,075 2,936 2,936 2,936 2,936 2,936 2,936 2,936 2,936
26 Network Opex 5,400 5,200 7,149 6,872 6,872 6,872 6,872 6,872 6,872 6,872 6,872
27 System operations and network support 3,924 3,910 3,992 4,080 4,080 4,080 4,080 4,080 4,080 4,080 4,080
28 Business support 9,156 9,122 9,314 9,519 9,519 9,519 9,519 9,519 9,519 9,519 9,519
29 Non-network opex 13,080 13,032 13,306 13,599 13,599 13,599 13,599 13,599 13,599 13,599 13,599
30 Operational expenditure 18,480 18,232 20,455 20,471 20,471 20,471 20,471 20,471 20,471 20,471 20,471

31 Subcomponents of operational expenditure (where known)


32 Energy efficiency and demand side management, reduction of
33 energy losses - - - - - - - - - - -
34 Direct billing* - - - - - - - - - - -
35 Research and Development - - - - - - - - - - -
36 Insurance 700 735 735 735 735 735 735 735 735 735 735
37 * Direct billing expenditure by suppliers that direct bill the majority of their consumers
38
39 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10
40 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24 31 Mar 25 31 Mar 26 31 Mar 27 31 Mar 28 31 Mar 29

41 Difference between nominal and real forecasts $000


42 Service interruptions and emergencies - - 31 59 90 121 153 185 218 252 286
43 Vegetation management - - 20 40 61 82 104 126 149 172 195
44 Routine and corrective maintenance and inspection - - 31 59 90 121 153 185 218 252 286
45 Asset replacement and renewal - - 61 119 180 242 306 370 437 504 573
46 Network Opex - - 143 278 421 566 715 867 1,022 1,180 1,341
47 System operations and network support - - 80 165 250 336 425 515 607 700 796
48 Business support - - 186 385 583 785 991 1,201 1,415 1,634 1,857

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 1 S11b.Opex Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 11b: REPORT ON FORECAST OPERATIONAL EXPENDITURE
This schedule requires a breakdown of forecast operational expenditure for the disclosure year and a 10 year planning period. The forecasts should be consistent with the supporting information set out in the AMP. The forecast is to be expressed in both constant price and nominal dollar terms.
EDBs must provide explanatory comment on the difference between constant price and nominal dollar operational expenditure forecasts in Schedule 14a (Mandatory Explanatory Notes).
This information is not part of audited disclosure information.

sch ref
49 Non-network opex - - 266 549 832 1,121 1,415 1,716 2,022 2,334 2,653
50 Operational expenditure - - 409 827 1,253 1,687 2,131 2,583 3,044 3,514 3,994

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 2 S11b.Opex Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 12a: REPORT ON ASSET CONDITION
This schedule requires a breakdown of asset condition by asset class as at the start of the forecast year. The data accuracy assessment relates to the percentage values disclosed in the asset condition columns. Also required is a forecast of the percentage of units
to be replaced in the next 5 years. All information should be consistent with the information provided in the AMP and the expenditure on assets forecast in Schedule 11a. All units relating to cable and line assets, that are expressed in km, refer to circuit lengths.

sch ref
7 Asset condition at start of planning period (percentage of units by grade)
8 % of asset
forecast to be
Grade Data accuracy replaced in
Voltage Asset category Asset class Units H1 H2 H3 H4 H5
unknown (1–4) next 5 years
9
10 All Overhead Line Concrete poles / steel structure No. 0.50% - - 8.50% 90.90% 0.10% 3 1.00%
11 All Overhead Line Wood poles No. 1.50% 9.85% 18.81% 40.97% 28.63% 0.24% 3 9.80%
12 All Overhead Line Other pole types No. [Select one]
13 HV Subtransmission Line Subtransmission OH up to 66kV conductor km - 35.75% 35.75% 28.50% - 2 5.00%
14 HV Subtransmission Line Subtransmission OH 110kV+ conductor km - - - [Select one]
15 HV Subtransmission Cable Subtransmission UG up to 66kV (XLPE) km - 37.90% 37.90% 24.20% - 2 10.00%
16 HV Subtransmission Cable Subtransmission UG up to 66kV (Oil pressurised) km - - - - - [Select one]
17 HV Subtransmission Cable Subtransmission UG up to 66kV (Gas pressurised) km - - - - - [Select one]
18 HV Subtransmission Cable Subtransmission UG up to 66kV (PILC) km - - - - - [Select one]
19 HV Subtransmission Cable Subtransmission UG 110kV+ (XLPE) km - - - - - [Select one]
20 HV Subtransmission Cable Subtransmission UG 110kV+ (Oil pressurised) km - - - - - [Select one]
21 HV Subtransmission Cable Subtransmission UG 110kV+ (Gas Pressurised) km - - - - - [Select one]
22 HV Subtransmission Cable Subtransmission UG 110kV+ (PILC) km - - - - - [Select one]
23 HV Subtransmission Cable Subtransmission submarine cable km - - - - - [Select one]
24 HV Zone substation Buildings Zone substations up to 66kV No. - 43.33% 43.33% 13.33% - 4 6.00%
25 HV Zone substation Buildings Zone substations 110kV+ No. - - - [Select one]
26 HV Zone substation switchgear 22/33kV CB (Indoor) No. - 15.00% 15.00% 70.00% - 3 -
27 HV Zone substation switchgear 22/33kV CB (Outdoor) No. - 44.44% 44.44% 11.11% - 3 -
28 HV Zone substation switchgear 33kV Switch (Ground Mounted) No. - - - [Select one]
29 HV Zone substation switchgear 33kV Switch (Pole Mounted) No. - 42.39% 42.39% 15.22% - 3 10.00%
30 HV Zone substation switchgear 33kV RMU No. - - - - - [Select one] -
31 HV Zone substation switchgear 50/66/110kV CB (Indoor) No. - - - - - [Select one] -
32 HV Zone substation switchgear 50/66/110kV CB (Outdoor) No. - 3.57% 3.57% 92.86% - 3 -
33 HV Zone substation switchgear 3.3/6.6/11/22kV CB (ground mounted) No. - 50.00% 50.00% - - 3 5.00%
34 HV Zone substation switchgear 3.3/6.6/11/22kV CB (pole mounted) No. - 10.87% 10.87% 78.26% - 3 -
35

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 1 S12a.Asset Condition


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 12a: REPORT ON ASSET CONDITION
This schedule requires a breakdown of asset condition by asset class as at the start of the forecast year. The data accuracy assessment relates to the percentage values disclosed in the asset condition columns. Also required is a forecast of the percentage of units
to be replaced in the next 5 years. All information should be consistent with the information provided in the AMP and the expenditure on assets forecast in Schedule 11a. All units relating to cable and line assets, that are expressed in km, refer to circuit lengths.

sch ref
36 Asset condition at start of planning period (percentage of units by grade)
37
% of asset
forecast to be
Grade Data accuracy
Voltage Asset category Asset class Units H1 H2 H3 H4 H5 replaced in
unknown (1–4)
next 5 years
38
39 HV Zone Substation Transformer Zone Substation Transformers No. - - 42.31% 42.31% 15.38% - 3 5.00%
40 HV Distribution Line Distribution OH Open Wire Conductor km - - 44.85% 44.85% 10.30% - 1 1.00%
41 HV Distribution Line Distribution OH Aerial Cable Conductor km - - - [Select one]
42 HV Distribution Line SWER conductor km - - 49.88% 49.88% 0.25% - 1 -
43 HV Distribution Cable Distribution UG XLPE or PVC km - - 21.80% 21.80% 56.40% - 1 -
44 HV Distribution Cable Distribution UG PILC km - - 48.80% 48.80% 2.40% - 1 -
45 HV Distribution Cable Distribution Submarine Cable km - - - - - - [Select one]
46 HV Distribution switchgear 3.3/6.6/11/22kV CB (pole mounted) - reclosers and sectionalisers No. - - 16.67% 16.67% 66.67% - 3 5.00%
47 HV Distribution switchgear 3.3/6.6/11/22kV CB (Indoor) No. - - 27.78% 27.78% 44.44% - 3 5.00%
48 HV Distribution switchgear 3.3/6.6/11/22kV Switches and fuses (pole mounted) No. - - 34.37% 34.37% 31.26% - 3 5.00%
49 HV Distribution switchgear 3.3/6.6/11/22kV Switch (ground mounted) - except RMU No. - - - [Select one]
50 HV Distribution switchgear 3.3/6.6/11/22kV RMU No. - - 32.01% 32.01% 35.98% - 2 7.00%
51 HV Distribution Transformer Pole Mounted Transformer No. - - 37.57% 37.57% 24.85% - 1 4.00%
52 HV Distribution Transformer Ground Mounted Transformer No. - - 31.47% 31.47% 37.06% - 1 2.00%
53 HV Distribution Transformer Voltage regulators No. - - 50.00% 50.00% - - 3 -
54 HV Distribution Substations Ground Mounted Substation Housing No. - - 34.30% 34.30% 31.40% - 3 5.00%
55 LV LV Line LV OH Conductor km - - 48.15% 48.15% 3.70% - 1 5.00%
56 LV LV Cable LV UG Cable km - - 32.17% 32.17% 35.67% - 2 -
57 LV LV Streetlighting LV OH/UG Streetlight circuit km - - 34.86% 34.86% 30.28% - 1 1.00%
58 LV Connections OH/UG consumer service connections No. - - 33.14% 33.14% 33.73% - 1 1.00%
59 All Protection Protection relays (electromechanical, solid state and numeric) No. - 31.41% 24.20% 24.20% 20.19% - 3 10.00%
60 All SCADA and communications SCADA and communications equipment operating as a single system Lot - 2.00% 40.00% 40.00% 18.00% - 2 15.00%
61 All Capacitor Banks Capacitors including controls No. - - - - - - [Select one]
62 All Load Control Centralised plant Lot - 12.50% 25.00% 25.00% 37.50% - 4 5.00%
63 All Load Control Relays No. - - 40.63% 40.63% 18.75% - 2 80.00%
64 All Civils Cable Tunnels km - - - [Select one]

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 2 S12a.Asset Condition


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 12b: REPORT ON FORECAST CAPACITY
This schedule requires a breakdown of current and forecast capacity and utilisation for each zone substation and current distribution transformer capacity. The data provided should be consistent with the information provided in the AMP. Information provided
in this table should relate to the operation of the network in its normal steady state configuration.

sch ref

7 12b(i): System Growth - Zone Substations


Utilisation of Utilisation of
Installed Firm Security of Supply Installed Firm Installed Firm Installed Firm Installed Firm Capacity
8
Current Peak Load Capacity Classification Transfer Capacity Capacity Capacity +5 years Capacity + 5yrs Constraint +5 years
Existing Zone Substations (MVA) (MVA) (type) (MVA) % (MVA) % (cause) Explanation
9 Southbrook 23 22 N-1 switched 2 104% 44 68% No constraint within +5 years Upgrade required within 5 years
10 Rangiora North 7 - N-1 switched 6 - - N/A Subtransmission circuit Single cct 33kV
11 Burnt Hill 16 23 N-1 switched 6 68% 23 75% No constraint within +5 years
12 Swannanoa 16 23 N-1 switched 6 69% 23 80% No constraint within +5 years
13 Amberley 6 4 N-1 switched 2 140% 4 120% Transformer Single cct 33kV
14 MacKenzies Rd 3 - N 2 - - N/A Transformer Peak load is from embeded generation
15 Greta 1 - N 1 - - N/A Transformer
16 Cheviot 4 - N 2 - - N/A Transformer
17 Hawarden 4 - N-1 switched 3 - - N/A Subtransmission circuit Load reduction by emergency irrig load control
18 Ludstone 6 6 N-1 switched - 97% 6 100% Subtransmission circuit
19 Leader 2 - N - - N/A Transformer Load reduction by emergency irrig load control
20 Oaro 0 - N - - - N/A Transformer
21 Mouse Point 15 13 N 2 113% 13 140% Transformer Load reduction by emergency irrig load control
22 Hanmer 5 - N - - - N/A Subtransmission circuit Single 33kV cct, standby 3 MVA transfromer.
23 Lochiel 0 - N - - - N/A Subtransmission circuit
24 Marble Quarry 0 - N - - - N/A Subtransmission circuit Single 33kV cct, standby 3 MVA transfromer.
25 [Zone Substation_17] -
26 [Zone Substation_18] -
27 [Zone Substation_19] - [Select one]
28 [Zone Substation_20] - [Select one]
29 ¹ Extend forecast capacity table as necessary to disclose all capacity by each zone substation

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 1 S12b.Capacity Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
SCHEDULE 12C: REPORT ON FORECAST NETWORK DEMAND
This schedule requires a forecast of new connections (by consumer type), peak demand and energy volumes for the disclosure year and a 5 year planning period. The forecasts should be consistent with the supporting information set out in the AMP as well
as the assumptions used in developing the expenditure forecasts in Schedule 11a and Schedule 11b and the capacity and utilisation forecasts in Schedule 12b.

sch ref

7 12c(i): Consumer Connections


8 Number of ICPs connected in year by consumer type Number of connections
9 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5
10 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24
11 Consumer types defined by EDB*
12 Residential 687 654 654 654 654 654
13 Irrigation 71 68 68 68 68 68
14 Large User 42 40 40 40 40 40
15 Streelights 9 9 9 9 9 9
16 Other 23 29 29 29 29 29
17 Connections total 832 800 800 800 800 800
18 *include additional rows if needed
19 Distributed generation
20 Number of connections 184 200 240 270 300 450
21 Capacity of distributed generation installed in year (MVA) 1 1 3 1 2 4

22 12c(ii) System Demand


23 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5
24 Maximum coincident system demand (MW) for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24
25 GXP demand 112 112 113 113 114 115
26 plus Distributed generation output at HV and above 2 2 4 4 6 6
27 Maximum coincident system demand 114 114 117 117 120 121
28 less Net transfers to (from) other EDBs at HV and above
29 Demand on system for supply to consumers' connection points 114 114 117 117 120 121

30 Electricity volumes carried (GWh)


31 Electricity supplied from GXPs 632 634 636 640 646 650
32 less Electricity exports to GXPs - - - - - -
33 plus Electricity supplied from distributed generation 14 24 37 38 39 40
34 less Net electricity supplied to (from) other EDBs - - - - - -
35 Electricity entering system for supply to ICPs 646 658 673 678 685 690
36 less Total energy delivered to ICPs 608 624 633 642 649
37 Losses 38 34 40 36 36 690
38
39 Load factor 65% 66% 66% 66% 65% 65%
40 Loss ratio 5.8% 5.2% 5.9% 5.3% 5.3% 100.0%

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 1 S12c.Demand Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Network / Sub-network Name
SCHEDULE 12d: REPORT FORECAST INTERRUPTIONS AND DURATION
This schedule requires a forecast of SAIFI and SAIDI for disclosure and a 5 year planning period. The forecasts should be consistent with the supporting information set out in the AMP as well as the assumed impact of planned and
unplanned SAIFI and SAIDI on the expenditures forecast provided in Schedule 11a and Schedule 11b.

sch ref
8 Current Year CY CY+1 CY+2 CY+3 CY+4 CY+5
9 for year ended 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 23 31 Mar 24
10 SAIDI
11 Class B (planned interruptions on the network) 95.0 90.0 90.0 90.0 90.0 90.0
12 Class C (unplanned interruptions on the network) 67.0 80.0 80.0 80.0 80.0 80.0

13 SAIFI
14 Class B (planned interruptions on the network) 0.40 0.40 0.40 0.40 0.40 0.40
15 Class C (unplanned interruptions on the network) 1.33 1.31 1.31 1.31 1.31 1.31

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 1 S12d.Reliability Forecast


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
3 Asset To what extent has an asset 3 MainPower has an asset Widely used AM practice standards require an Top management. The management team that has The organisation's asset management policy, its
management management policy been management policy that is organisation to document, authorise and overall responsibility for asset management. organisational strategic plan, documents indicating
policy documented, authorised and firmly part of MainPowers communicate its asset management policy (eg, as how the asset management policy was based upon
communicated? approach to asset required in PAS 55 para 4.2 i). A key pre-requisite of the needs of the organisation and evidence of
management. Awareness of any robust policy is that the organisation's top communication.
the policy is supported within management must be seen to endorse and fully
eh business through training support it. Also vital to the effective implementation
and regularly updates to the of the policy, is to tell the appropriate people of its
staff on Asset Management content and their obligations under it. Where an
organisation outsources some of its asset-related
activities, then these people and their organisations
must equally be made aware of the policy's content.
Also, there may be other stakeholders, such as
regulatory authorities and shareholders who should
be made aware of it.

10 Asset What has the organisation 2 As demonstrated in the Asset In setting an organisation's asset management Top management. The organisation's strategic The organisation's asset management strategy
management done to ensure that its asset Management Policy there is strategy, it is important that it is consistent with any planning team. The management team that has document and other related organisational policies
strategy management strategy is clear line of sight between other policies and strategies that the organisation overall responsibility for asset management. and strategies. Other than the organisation's
consistent with other asset management polices to has and has taken into account the requirements of strategic plan, these could include those relating to
appropriate organisational everything we do through to relevant stakeholders. This question examines to health and safety, environmental, etc. Results of
policies and strategies, and the the statement of corporate what extent the asset management strategy is stakeholder consultation.
needs of stakeholders? intent consistent with other organisational policies and
strategies (eg, as required by PAS 55 para 4.3.1 b)
and has taken account of stakeholder requirements
as required by PAS 55 para 4.3.1 c). Generally, this
will take into account the same polices, strategies
and stakeholder requirements as covered in drafting
the asset management policy but at a greater level of
detail.

11 Asset In what way does the 3 The main focus of MainPowers Good asset stewardship is the hallmark of an Top management. People in the organisation with The organisation's documented asset management
management organisation's asset approach to asset management organisation compliant with widely used AM expert knowledge of the assets, asset types, asset strategy and supporting working documents.
strategy management strategy take is to inform asset lifecycle standards. A key component of this is the need to systems and their associated life-cycles. The
account of the lifecycle of the including total cost of take account of the lifecycle of the assets, asset types management team that has overall responsibility for
assets, asset types and asset ownership from Idea to and asset systems. (For example, this requirement is asset management. Those responsible for developing
systems over which the Disposal. recognised in 4.3.1 d) of PAS 55). This question and adopting methods and processes used in asset
organisation has stewardship? explores what an organisation has done to take management
lifecycle into account in its asset management
strategy.

26 Asset How does the organisation 2 Asset management plans exit The asset management strategy need to be The management team with overall responsibility for The organisation's asset management plan(s).
management establish and document its for all assets. Work remains translated into practical plan(s) so that all parties the asset management system. Operations,
plan(s) asset management plan(s) linking Asset Management know how the objectives will be achieved. The maintenance and engineering managers.
across the life cycle activities of plans to polices and enabling development of plan(s) will need to identify the
its assets and asset systems? asset life cycle. specific tasks and activities required to optimize
costs, risks and performance of the assets and/or
asset system(s), when they are to be carried out and
the resources required.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 1 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
3 Asset To what extent has an asset The organisation does not have a The organisation has an asset The organisation has an asset The asset management policy is The organisation's process(es) surpass
management management policy been documented asset management management policy, but it has not management policy, which has been authorised by top management, is the standard required to comply with
policy documented, authorised and policy. been authorised by top management, authorised by top management, but it widely and effectively communicated requirements set out in a recognised
communicated? or it is not influencing the has had limited circulation. It may be to all relevant employees and standard.
management of the assets. in use to influence development of stakeholders, and used to make these
strategy and planning but its effect is persons aware of their asset related The assessor is advised to note in the
limited. obligations. Evidence section why this is the case
and the evidence seen.

10 Asset What has the organisation The organisation has not considered The need to align the asset Some of the linkages between the long- All linkages are in place and evidence is The organisation's process(es) surpass
management done to ensure that its asset the need to ensure that its asset management strategy with other term asset management strategy and available to demonstrate that, where the standard required to comply with
strategy management strategy is management strategy is appropriately organisational policies and strategies other organisational policies, appropriate, the organisation's asset requirements set out in a recognised
consistent with other aligned with the organisation's other as well as stakeholder requirements is strategies and stakeholder management strategy is consistent standard.
appropriate organisational organisational policies and strategies understood and work has started to requirements are defined but the work with its other organisational policies
policies and strategies, and the or with stakeholder requirements. identify the linkages or to incorporate is fairly well advanced but still and strategies. The organisation has The assessor is advised to note in the
needs of stakeholders? OR them in the drafting of asset incomplete. also identified and considered the Evidence section why this is the case
The organisation does not have an management strategy. requirements of relevant stakeholders. and the evidence seen.
asset management strategy.

11 Asset In what way does the The organisation has not considered The need is understood, and the The long-term asset management The asset management strategy takes The organisation's process(es) surpass
management organisation's asset the need to ensure that its asset organisation is drafting its asset strategy takes account of the lifecycle account of the lifecycle of all of its the standard required to comply with
strategy management strategy take management strategy is produced management strategy to address the of some, but not all, of its assets, asset assets, asset types and asset systems. requirements set out in a recognised
account of the lifecycle of the with due regard to the lifecycle of the lifecycle of its assets, asset types and types and asset systems. standard.
assets, asset types and asset assets, asset types or asset systems asset systems.
systems over which the that it manages. The assessor is advised to note in the
organisation has stewardship? OR Evidence section why this is the case
The organisation does not have an and the evidence seen.
asset management strategy.

26 Asset How does the organisation The organisation does not have an The organisation has asset The organisation is in the process of Asset management plan(s) are The organisation's process(es) surpass
management establish and document its identifiable asset management plan(s) management plan(s) but they are not putting in place comprehensive, established, documented, the standard required to comply with
plan(s) asset management plan(s) covering asset systems and critical aligned with the asset management documented asset management implemented and maintained for asset requirements set out in a recognised
across the life cycle activities of assets. strategy and objectives and do not plan(s) that cover all life cycle systems and critical assets to achieve standard.
its assets and asset systems? take into consideration the full asset activities, clearly aligned to asset the asset management strategy and
life cycle (including asset creation, management objectives and the asset asset management objectives across The assessor is advised to note in the
acquisition, enhancement, utilisation, management strategy. all life cycle phases. Evidence section why this is the case
maintenance decommissioning and and the evidence seen.
disposal).

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 2 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
27 Asset How has the organisation 3 Asset Managers have full Plans will be ineffective unless they are The management team with overall responsibility for Distribution lists for plan(s). Documents derived
management communicated its plan(s) to all responsibility for ensuring that communicated to all those, including contracted the asset management system. Delivery functions from plan(s) which detail the receivers role in plan
plan(s) relevant parties to a level of the organisation's assets suppliers and those who undertake enabling and suppliers. delivery. Evidence of communication.
detail appropriate to the deliver the requirements of the function(s). The plan(s) need to be communicated in
receiver's role in their delivery? asset management strategy, a way that is relevant to those who need to use
objectives and plan(s). They them.
have been given the necessary
authority to achieve this. An
Asset Management Steering
group is attended by Line and
Executive Managers, the CE and
29 Asset How are designated 1 Currently resources, systems The implementation of asset management plan(s) The management team with overall responsibility for The organisation's asset management plan(s).
management responsibilities for delivery of and reporting is in place that relies on (1) actions being clearly identified, (2) an the asset management system. Operations, Documentation defining roles and responsibilities of
plan(s) asset plan actions demonstrates MainPower is owner allocated and (3) that owner having sufficient maintenance and engineering managers. If individuals and organisational departments.
documented? completing asset management delegated responsibility and authority to carry out appropriate, the performance management team.
effectively on its core assets. the work required. It also requires alignment of
This remains to be applied to all actions across the organisation. This question
assets. explores how well the plan(s) set out responsibility
for delivery of asset plan actions.

31 Asset What has the organisation 2 Asset Management and its It is essential that the plan(s) are realistic and can be The management team with overall responsibility for The organisation's asset management plan(s).
management done to ensure that importance is reported to all implemented, which requires appropriate resources the asset management system. Operations, Documented processes and procedures for the
plan(s) appropriate arrangements are staff on an irregular bases to be available and enabling mechanisms in place. maintenance and engineering managers. If delivery of the asset management plan.
made available for the efficient through general company This question explores how well this is achieved. The appropriate, the performance management team. If
and cost effective updates / staff engagement plan(s) not only need to consider the resources appropriate, the performance management team.
implementation of the plan(s)? meetings. directly required and timescales, but also the Where appropriate the procurement team and
enabling activities, including for example, training service providers working on the organisation's asset-
(Note this is about resources requirements, supply chain capability and related activities.
and enabling support) procurement timescales.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 3 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

33 Contingency What plan(s) and procedure(s) 2 On the most part (Work The Construction Specifications Widely used AM practice standards require that an The manager with responsibility for developing The organisation's plan(s) and procedure(s) for
planning does the organisation have for Remains) Asset Management and the Standard Construction organisation has plan(s) to identify and respond to emergency plan(s). The organisation's risk dealing with emergencies. The organisation's risk
identifying and responding to activities are well define and Drawing Set have been emergency situations. Emergency plan(s) should assessment team. People with designated duties assessments and risk registers.
incidents and emergency assurance, in the form of data examined (which form a key outline the actions to be taken to respond to within the plan(s) and procedure(s) for dealing with
situations and ensuring collection points are used to control mechanism). specified emergency situations and ensure continuity incidents and emergency situations.
continuity of critical asset detail Maintenance outcomes. of critical asset management activities including the
management activities? Work remains to audit the communication to, and involvement of, external
outcomes; this requirement is agencies. This question assesses if, and how well,
agnostic to outsourcing or these plan(s) triggered, implemented and resolved in
insourcing. the event of an incident. The plan(s) should be
appropriate to the level of risk as determined by the
organisation's risk assessment methodology. It is
also a requirement that relevant personnel are
competent and trained.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 4 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
27 Asset How has the organisation The organisation does not have plan(s) The plan(s) are communicated to some The plan(s) are communicated to most The plan(s) are communicated to all The organisation's process(es) surpass
management communicated its plan(s) to all or their distribution is limited to the of those responsible for delivery of the of those responsible for delivery but relevant employees, stakeholders and the standard required to comply with
plan(s) relevant parties to a level of authors. plan(s). there are weaknesses in identifying contracted service providers to a level requirements set out in a recognised
detail appropriate to the OR relevant parties resulting in of detail appropriate to their standard.
receiver's role in their delivery? Communicated to those responsible incomplete or inappropriate participation or business interests in
for delivery is either irregular or ad- communication. The organisation the delivery of the plan(s) and there is The assessor is advised to note in the
hoc. recognises improvement is needed as confirmation that they are being used Evidence section why this is the case
is working towards resolution. effectively. and the evidence seen.

29 Asset How are designated The organisation has not documented Asset management plan(s) Asset management plan(s) consistently Asset management plan(s) consistently The organisation's process(es) surpass
management responsibilities for delivery of responsibilities for delivery of asset inconsistently document document responsibilities for the document responsibilities for the the standard required to comply with
plan(s) asset plan actions plan actions. responsibilities for delivery of plan delivery of actions but delivery actions and there is adequate requirements set out in a recognised
documented? actions and activities and/or responsibility/authority levels are detail to enable delivery of actions. standard.
responsibilities and authorities for inappropriate/ inadequate, and/or Designated responsibility and
implementation inadequate and/or there are misalignments within the authority for achievement of asset The assessor is advised to note in the
delegation level inadequate to ensure organisation. plan actions is appropriate. Evidence section why this is the case
effective delivery and/or contain and the evidence seen.
misalignments with organisational
accountability.

31 Asset What has the organisation The organisation has not considered The organisation recognises the need The organisation has arrangements in The organisation's arrangements fully The organisation's process(es) surpass
management done to ensure that the arrangements needed for the to ensure appropriate arrangements place for the implementation of asset cover all the requirements for the the standard required to comply with
plan(s) appropriate arrangements are effective implementation of plan(s). are in place for implementation of management plan(s) but the efficient and cost effective requirements set out in a recognised
made available for the efficient asset management plan(s) and is in the arrangements are not yet adequately implementation of asset management standard.
and cost effective process of determining an appropriate efficient and/or effective. The plan(s) and realistically address the
implementation of the plan(s)? approach for achieving this. organisation is working to resolve resources and timescales required, and The assessor is advised to note in the
existing weaknesses. any changes needed to functional Evidence section why this is the case
(Note this is about resources policies, standards, processes and the and the evidence seen.
and enabling support) asset management information
system.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 5 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

33 Contingency What plan(s) and procedure(s) The organisation has not considered The organisation has some ad-hoc Most credible incidents and Appropriate emergency plan(s) and The organisation's process(es) surpass
planning does the organisation have for the need to establish plan(s) and arrangements to deal with incidents emergency situations are identified. procedure(s) are in place to respond to the standard required to comply with
identifying and responding to procedure(s) to identify and respond and emergency situations, but these Either appropriate plan(s) and credible incidents and manage requirements set out in a recognised
incidents and emergency to incidents and emergency situations. have been developed on a reactive procedure(s) are incomplete for critical continuity of critical asset standard.
situations and ensuring basis in response to specific events activities or they are inadequate. management activities consistent with
continuity of critical asset that have occurred in the past. Training/ external alignment may be policies and asset management The assessor is advised to note in the
management activities? incomplete. objectives. Training and external Evidence section why this is the case
agency alignment is in place. and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 6 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
37 Structure, What has the organisation 3 Asset Managers have full An organisation structure (Jan In order to ensure that the organisation's assets and Top management. People with management Evidence that managers with responsibility for the
authority and done to appoint member(s) of responsibility for ensuring that 2019) has been examined. This asset systems deliver the requirements of the asset responsibility for the delivery of asset management delivery of asset management policy, strategy,
responsibilities its management team to be the organisation's assets shows a split of field services management policy, strategy and objectives policy, strategy, objectives and plan(s). People objectives and plan(s) have been appointed and have
responsible for ensuring that deliver the requirements of the from engineering, and a responsibilities need to be allocated to appropriate working on asset-related activities. assumed their responsibilities. Evidence may include
the organisation's assets asset management strategy, realignment of skills within people who have the necessary authority to fulfil the organisation's documents relating to its asset
deliver the requirements of the objectives and plan(s). They commercial and regulatory. their responsibilities. (This question, relates to the management system, organisational charts, job
asset management strategy, have been given the necessary organisation's assets eg, para b), s 4.4.1 of PAS 55, descriptions of post-holders, annual
objectives and plan(s)? authority to achieve this. An making it therefore distinct from the requirement targets/objectives and personal development plan(s)
Asset Management Steering contained in para a), s 4.4.1 of PAS 55). of post-holders as appropriate.
group exists, meets monthly
and is attended by Line and
Executive Manager, the CE and
40 Structure, What evidence can the a Board Member.
Currently resources, systems Budget spreadsheets, Strategic Optimal asset management requires top Top management. The management team that has Evidence demonstrating that asset management
2
authority and organisation's top management and reporting is in place that Plan & Business Plan management to ensure sufficient resources are overall responsibility for asset management. Risk plan(s) and/or the process(es) for asset management
responsibilities provide to demonstrate that demonstrates MainPower is available. In this context the term 'resources' management team. The organisation's managers plan implementation consider the provision of
sufficient resources are completing asset management includes manpower, materials, funding and service involved in day-to-day supervision of asset-related adequate resources in both the short and long term.
available for asset effectively on its core assets. provider support. activities, such as frontline managers, engineers, Resources include funding, materials, equipment,
management? This remains to be applied to all foremen and chargehands as appropriate. services provided by third parties and personnel
assets. (internal and service providers) with appropriate
skills competencies and knowledge.

42 Structure, To what degree does the 3 Asset Management and its The revised organisation chart Widely used AM practice standards require an Top management. The management team that has Evidence of such activities as road shows, written
authority and organisation's top management important is reported to all (Jan 2019) has been examined. organisation to communicate the importance of overall responsibility for asset management. People bulletins, workshops, team talks and management
responsibilities communicate the importance staff on an irregular bases Updates are available to all meeting its asset management requirements such involved in the delivery of the asset management walk-abouts would assist an organisation to
of meeting its asset through general company staff by way of email and Power that personnel fully understand, take ownership of, requirements. demonstrate it is meeting this requirement of PAS
management requirements? updates / staff engagement Press. and are fully engaged in the delivery of the asset 55.
meetings. management requirements (eg, PAS 55 s 4.4.1 g).

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 7 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

45 Outsourcing of Where the organisation has 2 Asset Management activities The Construction Specifications Where an organisation chooses to outsource some of Top management. The management team that has The organisation's arrangements that detail the
asset outsourced some of its asset are well defined. Assurance in and the Standard Construction its asset management activities, the organisation overall responsibility for asset management. The compliance required of the outsourced activities. For
management management activities, how the form of data collection Drawing Set have been must ensure that these outsourced process(es) are manager(s) responsible for the monitoring and example, this this could form part of a contract or
activities has it ensured that appropriate points are used to detail examined (which form a key under appropriate control to ensure that all the management of the outsourced activities. People service level agreement between the organisation
controls are in place to ensure Maintenance outcomes. Work control mechanism). requirements of widely used AM standards (eg, PAS involved with the procurement of outsourced and the suppliers of its outsourced activities.
the compliant delivery of its remains to audit the outcomes; 55) are in place, and the asset management policy, activities. The people within the organisations that Evidence that the organisation has demonstrated to
organisational strategic plan, this requirement is agnostic to strategy objectives and plan(s) are delivered. This are performing the outsourced activities. The people itself that it has assurance of compliance of
and its asset management outsourcing or insourcing. includes ensuring capabilities and resources across a impacted by the outsourced activity. outsourced activities.
policy and strategy? time span aligned to life cycle management. The
organisation must put arrangements in place to
control the outsourced activities, whether it be to
external providers or to other in-house departments.
This question explores what the organisation does in
this regard.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 8 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
37 Structure, What has the organisation Top management has not considered Top management understands the Top management has appointed an The appointed person or persons have The organisation's process(es) surpass
authority and done to appoint member(s) of the need to appoint a person or need to appoint a person or persons to appropriate people to ensure the full responsibility for ensuring that the the standard required to comply with
responsibilities its management team to be persons to ensure that the ensure that the organisation's assets assets deliver the requirements of the organisation's assets deliver the requirements set out in a recognised
responsible for ensuring that organisation's assets deliver the deliver the requirements of the asset asset management strategy, objectives requirements of the asset standard.
the organisation's assets requirements of the asset management strategy, objectives and and plan(s) but their areas of management strategy, objectives and
deliver the requirements of the management strategy, objectives and plan(s). responsibility are not fully defined plan(s). They have been given the The assessor is advised to note in the
asset management strategy, plan(s). and/or they have insufficient necessary authority to achieve this. Evidence section why this is the case
objectives and plan(s)? delegated authority to fully execute and the evidence seen.
their responsibilities.

40 Structure, What evidence can the The organisation's top management The organisations top management A process exists for determining what An effective process exists for The organisation's process(es) surpass
authority and organisation's top management has not considered the resources understands the need for sufficient resources are required for its asset determining the resources needed for the standard required to comply with
responsibilities provide to demonstrate that required to deliver asset management. resources but there are no effective management activities and in most asset management and sufficient requirements set out in a recognised
sufficient resources are mechanisms in place to ensure this is cases these are available but in some resources are available. It can be standard.
available for asset the case. instances resources remain demonstrated that resources are
management? insufficient. matched to asset management The assessor is advised to note in the
requirements. Evidence section why this is the case
and the evidence seen.

42 Structure, To what degree does the The organisation's top management The organisations top management Top management communicates the Top management communicates the The organisation's process(es) surpass
authority and organisation's top management has not considered the need to understands the need to communicate importance of meeting its asset importance of meeting its asset the standard required to comply with
responsibilities communicate the importance communicate the importance of the importance of meeting its asset management requirements but only to management requirements to all requirements set out in a recognised
of meeting its asset meeting asset management management requirements but does parts of the organisation. relevant parts of the organisation. standard.
management requirements? requirements. not do so.
The assessor is advised to note in the
Evidence section why this is the case
and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 9 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

45 Outsourcing of Where the organisation has The organisation has not considered The organisation controls its Controls systematically considered but Evidence exists to demonstrate that The organisation's process(es) surpass
asset outsourced some of its asset the need to put controls in place. outsourced activities on an ad-hoc currently only provide for the outsourced activities are appropriately the standard required to comply with
management management activities, how basis, with little regard for ensuring for compliant delivery of some, but not all, controlled to provide for the compliant requirements set out in a recognised
activities has it ensured that appropriate the compliant delivery of the aspects of the organisational strategic delivery of the organisational strategic standard.
controls are in place to ensure organisational strategic plan and/or its plan and/or its asset management plan, asset management policy and
the compliant delivery of its asset management policy and strategy. policy and strategy. Gaps exist. strategy, and that these controls are The assessor is advised to note in the
organisational strategic plan, integrated into the asset management Evidence section why this is the case
and its asset management system and the evidence seen.
policy and strategy?

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 10 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
48 Training, How does the organisation 2 Training for the completion of There is a need for an organisation to demonstrate Senior management responsible for agreement of Evidence of analysis of future work load plan(s) in
awareness and develop plan(s) for the human asset management activities that it has considered what resources are required to plan(s). Managers responsible for developing asset terms of human resources. Document(s) containing
competence resources required to that deliver the required develop and implement its asset management management strategy and plan(s). Managers with analysis of the organisation's own direct resources
undertake asset management outcomes are in place for some system. There is also a need for the organisation to responsibility for development and recruitment of and contractors resource capability over suitable
activities - including the assets. Work remains detailing demonstrate that it has assessed what development staff (including HR functions). Staff responsible for timescales. Evidence, such as minutes of meetings,
development and delivery of the training requirements, plan(s) are required to provide its human resources training. Procurement officers. Contracted service that suitable management forums are monitoring
asset management strategy, enabling the requirements on with the skills and competencies to develop and providers. human resource development plan(s). Training
process(es), objectives and the team skills matrix and implement its asset management systems. The plan(s), personal development plan(s), contract and
plan(s)? ensuring that competent timescales over which the plan(s) are relevant should service level agreements.
people exist informed by the be commensurate with the planning horizons within
forward work program. the asset management strategy considers e.g. if the
asset management strategy considers 5, 10 and 15
year time scales then the human resources
development plan(s) should align with these.
Resources include both 'in house' and external
resources who undertake asset management
activities.

49 Training, How does the organisation 3 Competency requirement for Widely used AM standards require that organisations Senior management responsible for agreement of Evidence of an established and applied competency
awareness and identify competency the completion of maintenance to undertake a systematic identification of the asset plan(s). Managers responsible for developing asset requirements assessment process and plan(s) in
competence requirements and then plan, activities exist within the Asset management awareness and competencies required management strategy and plan(s). Managers with place to deliver the required training. Evidence that
provide and record the training Management plans. All at each level and function within the organisation. responsibility for development and recruitment of the training programme is part of a wider, co-
necessary to achieve the maintenance activities are risk Once identified the training required to provide the staff (including HR functions). Staff responsible for ordinated asset management activities training and
competencies? assessed and controls necessary competencies should be planned for training. Procurement officers. Contracted service competency programme. Evidence that training
developed based on the risk delivery in a timely and systematic way. Any training providers. activities are recorded and that records are readily
appetite of the business. Work provided must be recorded and maintained in a available (for both direct and contracted service
remains to be completed suitable format. Where an organisation has provider staff) e.g. via organisation wide information
developing a clear link between contracted service providers in place then it should system or local records database.
activities required, competency have a means to demonstrate that this requirement
to complete the work and work is being met for their employees. (eg, PAS 55 refers
authorisation. to frameworks suitable for identifying competency
requirements).

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 11 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

50 Training, How does the organization 3 All maintenance activities are A critical success factor for the effective development Managers, supervisors, persons responsible for Evidence of a competency assessment framework
awareness and ensure that persons under its risk assessed and controls and implementation of an asset management system developing training programmes. Staff responsible that aligns with established frameworks such as the
competence direct control undertaking asset developed based on the risk is the competence of persons undertaking these for procurement and service agreements. HR staff asset management Competencies Requirements
management related activities appetite of the business. Work activities. organisations should have effective means and those responsible for recruitment. Framework (Version 2.0); National Occupational
have an appropriate level of remains to be completed in place for ensuring the competence of employees Standards for Management and Leadership; UK
competence in terms of developing a clear link between to carry out their designated asset management Standard for Professional Engineering Competence,
education, training or activities required, competency function(s). Where an organisation has contracted Engineering Council, 2005.
experience? to complete the work and work service providers undertaking elements of its asset
authorisation. - see section on management system then the organisation shall
Risk within the AMP. assure itself that the outsourced service provider also
has suitable arrangements in place to manage the
competencies of its employees. The organisation
should ensure that the individual and corporate
competencies it requires are in place and actively
monitor, develop and maintain an appropriate
balance of these competencies.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 12 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
48 Training, How does the organisation The organisation has not recognised The organisation has recognised the The organisation has developed a The organisation can demonstrate that The organisation's process(es) surpass
awareness and develop plan(s) for the human the need for assessing human need to assess its human resources strategic approach to aligning plan(s) are in place and effective in the standard required to comply with
competence resources required to resources requirements to develop requirements and to develop a plan(s). competencies and human resources to matching competencies and requirements set out in a recognised
undertake asset management and implement its asset management There is limited recognition of the the asset management system capabilities to the asset management standard.
activities - including the system. need to align these with the including the asset management plan system including the plan for both
development and delivery of development and implementation of but the work is incomplete or has not internal and contracted activities. The assessor is advised to note in the
asset management strategy, its asset management system. been consistently implemented. Plans are reviewed integral to asset Evidence section why this is the case
process(es), objectives and management system process(es). and the evidence seen.
plan(s)?

49 Training, How does the organisation The organisation does not have any The organisation has recognised the The organisation is the process of Competency requirements are in place The organisation's process(es) surpass
awareness and identify competency means in place to identify competency need to identify competency identifying competency requirements and aligned with asset management the standard required to comply with
competence requirements and then plan, requirements. requirements and then plan, provide aligned to the asset management plan(s). Plans are in place and requirements set out in a recognised
provide and record the training and record the training necessary to plan(s) and then plan, provide and effective in providing the training standard.
necessary to achieve the achieve the competencies. record appropriate training. It is necessary to achieve the
competencies? incomplete or inconsistently applied. competencies. A structured means of The assessor is advised to note in the
recording the competencies achieved Evidence section why this is the case
is in place. and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 13 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

50 Training, How does the organization The organization has not recognised Competency of staff undertaking asset The organization is in the process of Competency requirements are The organisation's process(es) surpass
awareness and ensure that persons under its the need to assess the competence of management related activities is not putting in place a means for assessing identified and assessed for all persons the standard required to comply with
competence direct control undertaking asset person(s) undertaking asset managed or assessed in a structured the competence of person(s) involved carrying out asset management requirements set out in a recognised
management related activities management related activities. way, other than formal requirements in asset management activities related activities - internal and standard.
have an appropriate level of for legal compliance and safety including contractors. There are gaps contracted. Requirements are
competence in terms of management. and inconsistencies. reviewed and staff reassessed at The assessor is advised to note in the
education, training or appropriate intervals aligned to asset Evidence section why this is the case
experience? management requirements. and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 14 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
53 Communication, How does the organisation 3 Pertinent asset management Widely used AM practice standards require that Top management and senior management Asset management policy statement prominently
participation and ensure that pertinent asset information is communicated pertinent asset management information is representative(s), employee's representative(s), displayed on notice boards, intranet and internet;
consultation management information is to necessary parties to effectively communicated to and from employees employee's trade union representative(s); contracted use of organisation's website for displaying asset
effectively communicated to effectively deliver the asset and other stakeholders including contracted service service provider management and employee performance data; evidence of formal briefings to
and from employees and other management plan for most providers. Pertinent information refers to representative(s); representative(s) from the employees, stakeholders and contracted service
stakeholders, including assets. Work remains to be information required in order to effectively and organisation's Health, Safety and Environmental providers; evidence of inclusion of asset
contracted service providers? completed to extend this to all efficiently comply with and deliver asset team. Key stakeholder representative(s). management issues in team meetings and contracted
assets. management strategy, plan(s) and objectives. This service provider contract meetings; newsletters, etc.
will include for example the communication of the
asset management policy, asset performance
information, and planning information as appropriate
to contractors.

59 Asset What documentation has the 2 Currently MainPower, through Widely used AM practice standards require an The management team that has overall responsibility The documented information describing the main
Management organisation established to process maps describing its organisation maintain up to date documentation that for asset management. Managers engaged in asset elements of the asset management system
System describe the main elements of approach to asset ensures that its asset management systems (ie, the management activities. (process(es)) and their interaction.
documentation its asset management system management, including who is systems the organisation has in place to meet the
and interactions between responsible and for what part standards) can be understood, communicated and
them? of the process they are operated. (eg, s 4.5 of PAS 55 requires the
responsible. maintenance of up to date documentation of the
asset management system requirements specified
throughout s 4 of PAS 55).

62 Information What has the organisation 1 Asset Management Information Effective asset management requires appropriate The organisation's strategic planning team. The Details of the process the organisation has employed
management done to determine what its systems are currently being information to be available. Widely used AM management team that has overall responsibility for to determine what its asset information system
asset management information reviewed by the organisation standards therefore require the organisation to asset management. Information management team. should contain in order to support its asset
system(s) should contain in so that the organisation can identify the asset management information it Operations, maintenance and engineering managers management system. Evidence that this has been
order to support its asset achieved its approach to Asset requires in order to support its asset management effectively implemented.
management system? Management. system. Some of the information required may be
held by suppliers.

The maintenance and development of asset


management information systems is a poorly
understood specialist activity that is akin to IT
management but different from IT management.
This group of questions provides some indications as
to whether the capability is available and applied.
Note: To be effective, an asset information
management system requires the mobilisation of
technology, people and process(es) that create,
secure, make available and destroy the information
required to support the asset management system.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 15 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

63 Information How does the organisation 2 This is achieved via the as The response to the questions is progressive. A The management team that has overall responsibility The asset management information system, together
management maintain its asset management building process, system audits, higher scale cannot be awarded without achieving for asset management. Users of the organisational with the policies, procedure(s), improvement
information system(s) and incidents corrective actions and the requirements of the lower scale. information systems. initiatives and audits regarding information controls.
ensure that the data held through maintenance
within it (them) is of the inspections. This question explores how the organisation ensures
requisite quality and accuracy that information management meets widely used AM
and is consistent? practice requirements (eg, s 4.4.6 (a), (c) and (d) of
PAS 55).

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 16 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
53 Communication, How does the organisation The organisation has not recognised There is evidence that the pertinent The organisation has determined Two way communication is in place The organisation's process(es) surpass
participation and ensure that pertinent asset the need to formally communicate any asset management information to be pertinent information and relevant between all relevant parties, ensuring the standard required to comply with
consultation management information is asset management information. shared along with those to share it parties. Some effective two way that information is effectively requirements set out in a recognised
effectively communicated to with is being determined. communication is in place but as yet communicated to match the standard.
and from employees and other not all relevant parties are clear on requirements of asset management
stakeholders, including their roles and responsibilities with strategy, plan(s) and process(es). The assessor is advised to note in the
contracted service providers? respect to asset management Pertinent asset information Evidence section why this is the case
information. requirements are regularly reviewed. and the evidence seen.

59 Asset What documentation has the The organisation has not established The organisation is aware of the need The organisation in the process of The organisation has established The organisation's process(es) surpass
Management organisation established to documentation that describes the to put documentation in place and is in documenting its asset management documentation that comprehensively the standard required to comply with
System describe the main elements of main elements of the asset the process of determining how to system and has documentation in describes all the main elements of its requirements set out in a recognised
documentation its asset management system management system. document the main elements of its place that describes some, but not all, asset management system and the standard.
and interactions between asset management system. of the main elements of its asset interactions between them. The
them? management system and their documentation is kept up to date. The assessor is advised to note in the
interaction. Evidence section why this is the case
and the evidence seen.

62 Information What has the organisation The organisation has not considered The organisation is aware of the need The organisation has developed a The organisation has determined what The organisation's process(es) surpass
management done to determine what its what asset management information is to determine in a structured manner structured process to determine what its asset information system should the standard required to comply with
asset management information required. what its asset information system its asset information system should contain in order to support its asset requirements set out in a recognised
system(s) should contain in should contain in order to support its contain in order to support its asset management system. The standard.
order to support its asset asset management system and is in management system and has requirements relate to the whole life
management system? the process of deciding how to do this. commenced implementation of the cycle and cover information originating The assessor is advised to note in the
process. from both internal and external Evidence section why this is the case
sources. and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 17 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

63 Information How does the organisation There are no formal controls in place The organisation is aware of the need The organisation has developed a The organisation has effective controls The organisation's process(es) surpass
management maintain its asset management or controls are extremely limited in for effective controls and is in the controls that will ensure the data held in place that ensure the data held is of the standard required to comply with
information system(s) and scope and/or effectiveness. process of developing an appropriate is of the requisite quality and accuracy the requisite quality and accuracy and requirements set out in a recognised
ensure that the data held control process(es). and is consistent and is in the process is consistent. The controls are standard.
within it (them) is of the of implementing them. regularly reviewed and improved
requisite quality and accuracy where necessary. The assessor is advised to note in the
and is consistent? Evidence section why this is the case
and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 18 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
64 Information How has the organisation's 2 Information requirements are Widely used AM standards need not be prescriptive The organisation's strategic planning team. The The documented process the organisation employs
management ensured its asset management informed by the Asset about the form of the asset management management team that has overall responsibility for to ensure its asset management information system
information system is relevant Management Plan, financial information system, but simply require that the asset asset management. Information management team. aligns with its asset management requirements.
to its needs? and operational requirements. management information system is appropriate to Users of the organisational information systems. Minutes of information systems review meetings
the organisations needs, can be effectively used and involving users.
can supply information which is consistent and of the
requisite quality and accuracy.

69 Risk How has the organisation 2 Activity risk assessment for all Corporate Risk Register Risk management is an important foundation for The top management team in conjunction with the The organisation's risk management framework
management documented process(es) maintenance activities have proactive asset management. Its overall purpose is organisation's senior risk management and/or evidence of specific process(es) and/ or
process(es) and/or procedure(s) for the been assessed, documented to understand the cause, effect and likelihood of representatives. There may also be input from the procedure(s) that deal with risk control mechanisms.
identification and assessment and controls identified. Work adverse events occurring, to optimally manage such organisation's Safety, Health and Environment team. Evidence that the process(es) and/or procedure(s)
of asset and asset management remains to be completed risks to an acceptable level, and to provide an audit Staff who carry out risk identification and are implemented across the business and
related risks throughout the detailing the operational risk of trail for the management of risks. Widely used assessment. maintained. Evidence of agendas and minutes from
asset life cycle? all assets (Plant and Equipment standards require the organisation to have risk management meetings. Evidence of feedback in
Risk Assessments). process(es) and/or procedure(s) in place that set out to process(es) and/or procedure(s) as a result of
how the organisation identifies and assesses asset incident investigation(s). Risk registers and
and asset management related risks. The risks have assessments.
to be considered across the four phases of the asset
lifecycle (eg, para 4.3.3 of PAS 55).

79 Use and How does the organisation 1 Risk assessments are Widely used AM standards require that the output Staff responsible for risk assessment and those The organisations risk management framework. The
maintenance of ensure that the results of risk completed and controls from risk assessments are considered and that responsible for developing and approving resource organisation's resourcing plan(s) and training and
asset risk assessments provide input into identified that inform adequate resource (including staff) and training is and training plan(s). There may also be input from competency plan(s). The organisation should be able
information the identification of adequate competency requirements and identified to match the requirements. It is a further the organisation's Safety, Health and Environment to demonstrate appropriate linkages between the
resources and training and controls for works. Controls requirement that the effects of the control measures team. content of resource plan(s) and training and
competency needs? identified for the completion of are considered, as there may be implications in competency plan(s) to the risk assessments and risk
works forms part of the resources and training required to achieve other control measures that have been developed.
contractor management objectives.
framework and network access
requirements. The end to end
process detailing the

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 19 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

82 Legal and other What procedure does the 2 Legal statutory risk forms part In order for an organisation to comply with its legal, Top management. The organisations regulatory The organisational processes and procedures for
requirements organisation have to identify of the MainPower corporate regulatory, statutory and other asset management team. The organisation's legal team or advisors. The ensuring information of this type is identified, made
and provide access to its legal, risk management framework. requirements, the organisation first needs to ensure management team with overall responsibility for the accessible to those requiring the information and is
regulatory, statutory and other Controls identified are included that it knows what they are (eg, PAS 55 specifies this asset management system. The organisation's health incorporated into asset management strategy and
asset management in Asset Management plans in s 4.4.8). It is necessary to have systematic and and safety team or advisors. The organisation's objectives
requirements, and how is and are implemented within auditable mechanisms in place to identify new and policy making team.
requirements incorporated into the organisations CMMS. changing requirements. Widely used AM standards
the asset management system? also require that requirements are incorporated into
the asset management system (e.g. procedure(s) and
process(es))

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 20 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
64 Information How has the organisation's The organisation has not considered The organisation understands the The organisation has developed and is The organisation's asset management The organisation's process(es) surpass
management ensured its asset management the need to determine the relevance need to ensure its asset management implementing a process to ensure its information system aligns with its the standard required to comply with
information system is relevant of its management information information system is relevant to its asset management information system asset management requirements. requirements set out in a recognised
to its needs? system. At present there are major needs and is determining an is relevant to its needs. Gaps between Users can confirm that it is relevant to standard.
gaps between what the information appropriate means by which it will what the information system provides their needs.
system provides and the organisations achieve this. At present there are and the organisations needs have been The assessor is advised to note in the
needs. significant gaps between what the identified and action is being taken to Evidence section why this is the case
information system provides and the close them. and the evidence seen.
organisations needs.

69 Risk How has the organisation The organisation has not considered The organisation is aware of the need The organisation is in the process of Identification and assessment of asset The organisation's process(es) surpass
management documented process(es) the need to document process(es) to document the management of asset documenting the identification and related risk across the asset lifecycle is the standard required to comply with
process(es) and/or procedure(s) for the and/or procedure(s) for the related risk across the asset lifecycle. assessment of asset related risk across fully documented. The organisation requirements set out in a recognised
identification and assessment identification and assessment of asset The organisation has plan(s) to the asset lifecycle but it is incomplete can demonstrate that appropriate standard.
of asset and asset management and asset management related risks formally document all relevant or there are inconsistencies between documented mechanisms are
related risks throughout the throughout the asset life cycle. process(es) and procedure(s) or has approaches and a lack of integration. integrated across life cycle phases and The assessor is advised to note in the
asset life cycle? already commenced this activity. are being consistently applied. Evidence section why this is the case
and the evidence seen.

79 Use and How does the organisation The organisation has not considered The organisation is aware of the need The organisation is in the process Outputs from risk assessments are The organisation's process(es) surpass
maintenance of ensure that the results of risk the need to conduct risk assessments. to consider the results of risk ensuring that outputs of risk consistently and systematically used as the standard required to comply with
asset risk assessments provide input into assessments and effects of risk control assessment are included in developing inputs to develop resources, training requirements set out in a recognised
information the identification of adequate measures to provide input into reviews requirements for resources and and competency requirements. standard.
resources and training and of resources, training and competency training. The implementation is Examples and evidence is available.
competency needs? needs. Current input is typically ad- incomplete and there are gaps and The assessor is advised to note in the
hoc and reactive. inconsistencies. Evidence section why this is the case
and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 21 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

82 Legal and other What procedure does the The organisation has not considered The organisation identifies some its The organisation has procedure(s) to Evidence exists to demonstrate that The organisation's process(es) surpass
requirements organisation have to identify the need to identify its legal, legal, regulatory, statutory and other identify its legal, regulatory, statutory the organisation's legal, regulatory, the standard required to comply with
and provide access to its legal, regulatory, statutory and other asset asset management requirements, but and other asset management statutory and other asset management requirements set out in a recognised
regulatory, statutory and other management requirements. this is done in an ad-hoc manner in the requirements, but the information is requirements are identified and kept standard.
asset management absence of a procedure. not kept up to date, inadequate or up to date. Systematic mechanisms
requirements, and how is inconsistently managed. for identifying relevant legal and The assessor is advised to note in the
requirements incorporated into statutory requirements. Evidence section why this is the case
the asset management system? and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 22 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
88 Life Cycle How does the organisation 2 Process are currently being Life cycle activities are about the implementation of Asset managers, design staff, construction staff and Documented process(es) and procedure(s) which are
Activities establish implement and developed to fully document asset management plan(s) i.e. they are the "doing" project managers from other impacted areas of the relevant to demonstrating the effective management
maintain process(es) for the the addition, acquisition or phase. They need to be done effectively and well in business, e.g. Procurement and control of life cycle activities during asset
implementation of its asset enhancements made to assets. order for asset management to have any practical creation, acquisition, enhancement including design,
management plan(s) and This will including Asset meaning. As a consequence, widely used standards modification, procurement, construction and
control of activities across the Creation, Schedules assigned, (eg, PAS 55 s 4.5.1) require organisations to have in commissioning.
creation, acquisition or asbuilts updated prior to place appropriate process(es) and procedure(s) for
enhancement of assets. This energisation. the implementation of asset management plan(s)
includes design, modification, and control of lifecycle activities. This question
procurement, construction and explores those aspects relevant to asset creation.
commissioning activities?

91 Life Cycle How does the organisation 1 Process and procedures are Having documented process(es) which ensure the Asset managers, operations managers, maintenance Documented procedure for review. Documented
Activities ensure that process(es) and/or currently being documented asset management plan(s) are implemented in managers and project managers from other impacted procedure for audit of process delivery. Records of
procedure(s) for the that detail how Asset accordance with any specified conditions, in a areas of the business previous audits, improvement actions and
implementation of asset Management plans are manner consistent with the asset management documented confirmation that actions have been
management plan(s) and implemented. Individual asset policy, strategy and objectives and in such a way that carried out.
control of activities during management plans detail cost, risk and asset system performance are
maintenance (and inspection) inspections, activities and the appropriately controlled is critical. They are an
of assets are sufficient to required standard. Cost, risk essential part of turning intention into action (eg, as
ensure activities are carried out and performance is measured required by PAS 55 s 4.5.1).
under specified conditions, are against pre-populated and
consistent with asset agreed rate cards. The
management strategy and implementation of rate cards
control cost, risk and area also form part of the
performance? CMMS upgrade.

95 Performance and How does the organisation 1 Overall performance of the The Control Room was Widely used AM standards require that organisations A broad cross-section of the people involved in the Functional policy and/or strategy documents for
condition measure the performance and system is measured via SAIDI, observed measuring the real- establish implement and maintain procedure(s) to organisation's asset-related activities from data input performance or condition monitoring and
monitoring condition of its assets? SAIFI and other performance time performance of assets. monitor and measure the performance and/or to decision-makers, i.e. an end-to end assessment. measurement. The organisation's performance
metric documented in the Field staff use cellular based condition of assets and asset systems. They further This should include contactors and other relevant monitoring frameworks, balanced scorecards etc.
regulatory AMP. The data capture of asset condition. set out requirements in some detail for reactive and third parties as appropriate. Evidence of the reviews of any appropriate
performance of the approach proactive monitoring, and leading/lagging performance indicators and the action lists resulting
to asset management remains performance indicators together with the monitoring from these reviews. Reports and trend analysis using
to be monitored through or results to provide input to corrective actions and performance and condition information. Evidence of
condition assessments made continual improvement. There is an expectation that the use of performance and condition information
against criticality. performance and condition monitoring will provide shaping improvements and supporting asset
input to improving asset management strategy, management strategy, objectives and plan(s).
objectives and plan(s).

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 23 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

99 Investigation of How does the organisation 3 Asset failures are investigated Widely used AM standards require that the The organisation's safety and environment Process(es) and procedure(s) for the handling,
asset-related ensure responsibility and the depending on criticality organisation establishes implements and maintains management team. The team with overall investigation and mitigation of asset-related failures,
failures, incidents authority for the handling, including operational incidents. process(es) for the handling and investigation of responsibility for the management of the assets. incidents and emergency situations and non
and investigation and mitigation of Roles and responsibilities are failures incidents and non-conformities for assets and People who have appointed roles within the asset- conformances. Documentation of assigned
nonconformities asset-related failures, incidents defined including the sets down a number of expectations. Specifically this related investigation procedure, from those who responsibilities and authority to employees. Job
and emergency situations and implementation of an question examines the requirement to define clearly carry out the investigations to senior management Descriptions, Audit reports. Common
non conformances is clear, organisational wide incident responsibilities and authorities for these activities, who review the recommendations. Operational communication systems i.e. all Job Descriptions on
unambiguous, understood and reporting, management and and communicate these unambiguously to relevant controllers responsible for managing the asset base Internet etc.
communicated? investigation system people including external stakeholders if appropriate. under fault conditions and maintaining services to
consumers. Contractors and other third parties as
appropriate.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 24 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
88 Life Cycle How does the organisation The organisation does not have The organisation is aware of the need The organisation is in the process of Effective process(es) and procedure(s) The organisation's process(es) surpass
Activities establish implement and process(es) in place to manage and to have process(es) and procedure(s) putting in place process(es) and are in place to manage and control the the standard required to comply with
maintain process(es) for the control the implementation of asset in place to manage and control the procedure(s) to manage and control implementation of asset management requirements set out in a recognised
implementation of its asset management plan(s) during activities implementation of asset management the implementation of asset plan(s) during activities related to standard.
management plan(s) and related to asset creation including plan(s) during activities related to management plan(s) during activities asset creation including design,
control of activities across the design, modification, procurement, asset creation including design, related to asset creation including modification, procurement, The assessor is advised to note in the
creation, acquisition or construction and commissioning. modification, procurement, design, modification, procurement, construction and commissioning. Evidence section why this is the case
enhancement of assets. This construction and commissioning but construction and commissioning. Gaps and the evidence seen.
includes design, modification, currently do not have these in place and inconsistencies are being
procurement, construction and (note: procedure(s) may exist but they addressed.
commissioning activities? are inconsistent/incomplete).

91 Life Cycle How does the organisation The organisation does not have The organisation is aware of the need The organisation is in the process of The organisation has in place The organisation's process(es) surpass
Activities ensure that process(es) and/or process(es)/procedure(s) in place to to have process(es) and procedure(s) putting in place process(es) and process(es) and procedure(s) to the standard required to comply with
procedure(s) for the control or manage the implementation in place to manage and control the procedure(s) to manage and control manage and control the requirements set out in a recognised
implementation of asset of asset management plan(s) during implementation of asset management the implementation of asset implementation of asset management standard.
management plan(s) and this life cycle phase. plan(s) during this life cycle phase but management plan(s) during this life plan(s) during this life cycle phase.
control of activities during currently do not have these in place cycle phase. They include a process for They include a process, which is itself The assessor is advised to note in the
maintenance (and inspection) and/or there is no mechanism for confirming the regularly reviewed to ensure it is Evidence section why this is the case
of assets are sufficient to confirming they are effective and process(es)/procedure(s) are effective effective, for confirming the and the evidence seen.
ensure activities are carried out where needed modifying them. and if necessary carrying out process(es)/ procedure(s) are effective
under specified conditions, are modifications. and if necessary carrying out
consistent with asset modifications.
management strategy and
control cost, risk and
performance?

95 Performance and How does the organisation The organisation has not considered The organisation recognises the need The organisation is developing Consistent asset performance The organisation's process(es) surpass
condition measure the performance and how to monitor the performance and for monitoring asset performance but coherent asset performance monitoring linked to asset the standard required to comply with
monitoring condition of its assets? condition of its assets. has not developed a coherent monitoring linked to asset management objectives is in place and requirements set out in a recognised
approach. Measures are incomplete, management objectives. Reactive and universally used including reactive and standard.
predominantly reactive and lagging. proactive measures are in place. Use is proactive measures. Data quality
There is no linkage to asset being made of leading indicators and management and review process are The assessor is advised to note in the
management objectives. analysis. Gaps and inconsistencies appropriate. Evidence of leading Evidence section why this is the case
remain. indicators and analysis. and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 25 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

99 Investigation of How does the organisation The organisation has not considered The organisation understands the The organisation are in the process of The organisation have defined the The organisation's process(es) surpass
asset-related ensure responsibility and the the need to define the appropriate requirements and is in the process of defining the responsibilities and appropriate responsibilities and the standard required to comply with
failures, incidents authority for the handling, responsibilities and the authorities. determining how to define them. authorities with evidence. authorities and evidence is available to requirements set out in a recognised
and investigation and mitigation of Alternatively there are some gaps or show that these are applied across the standard.
nonconformities asset-related failures, incidents inconsistencies in the identified business and kept up to date.
and emergency situations and responsibilities/authorities. The assessor is advised to note in the
non conformances is clear, Evidence section why this is the case
unambiguous, understood and and the evidence seen.
communicated?

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 26 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Score Evidence—Summary User Guidance Why Who Record/documented Information
105 Audit What has the organisation 2 There is no system in place that This question seeks to explore what the organisation The management team responsible for its asset The organisation's asset-related audit procedure(s).
done to establish procedure(s) actively audits asset has done to comply with the standard practice AM management procedure(s). The team with overall The organisation's methodology(s) by which it
for the audit of its asset management process for audit requirements (eg, the associated requirements responsibility for the management of the assets. determined the scope and frequency of the audits
management system efficacy and implementation. of PAS 55 s 4.6.4 and its linkages to s 4.7). Audit teams, together with key staff responsible for and the criteria by which it identified the appropriate
(process(es))? asset management. For example, Asset Management audit personnel. Audit schedules, reports etc.
Director, Engineering Director. People with Evidence of the procedure(s) by which the audit
responsibility for carrying out risk assessments results are presented, together with any subsequent
communications. The risk assessment schedule or
risk registers.

109 Corrective & How does the organisation 2 Incident investigations and Having investigated asset related failures, incidents The management team responsible for its asset Analysis records, meeting notes and minutes,
Preventative instigate appropriate corrective corrective actions are and non-conformances, and taken action to mitigate management procedure(s). The team with overall modification records. Asset management plan(s),
action and/or preventive actions to undertaken in accordance with their consequences, an organisation is required to responsibility for the management of the assets. investigation reports, audit reports, improvement
eliminate or prevent the causes the Incident Reporting and implement preventative and corrective actions to Audit and incident investigation teams. Staff programmes and projects. Recorded changes to
of identified poor performance Management operating address root causes. Incident and failure responsible for planning and managing corrective asset management procedure(s) and process(es).
and non conformance? standard. investigations are only useful if appropriate actions and preventive actions. Condition and performance reviews. Maintenance
are taken as a result to assess changes to a reviews
businesses risk profile and ensure that appropriate
arrangements are in place should a recurrence of the
incident happen. Widely used AM standards also
require that necessary changes arising from
preventive or corrective action are made to the asset
management system.

113 Continual How does the organisation 2 All maintenance activities are Widely used AM standards have requirements to The top management of the organisation. The Records showing systematic exploration of
Improvement achieve continual improvement documented, risk assessed and establish, implement and maintain manager/team responsible for managing the improvement. Evidence of new techniques being
in the optimal combination of costed in terms of time, process(es)/procedure(s) for identifying, assessing, organisation's asset management system, including explored and implemented. Changes in procedure(s)
costs, asset related risks and materials, plant and equipment prioritising and implementing actions to achieve its continual improvement. Managers responsible for and process(es) reflecting improved use of
the performance and condition (Rate cards). Rate cards are continual improvement. Specifically there is a policy development and implementation. optimisation tools/techniques and available
of assets and asset systems benchmarked against perceived requirement to demonstrate continual improvement information. Evidence of working parties and
across the whole life cycle? industry standards. All works in optimisation of cost risk and research.
are pre-costed using the rate performance/condition of assets across the life cycle.
card and maintenance activities This question explores an organisation's capabilities
are assessed against planned in this area—looking for systematic improvement
and actual costs mechanisms rather that reviews and audit (which are
separately examined).

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 27 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY
This schedule requires information on the EDB’S self-assessment of the maturity of its asset management practices .

115 Continual How does the organisation 2 By way of industry forums, One important aspect of continual improvement is The top management of the organisation. The Research and development projects and records,
Improvement seek and acquire knowledge conferences and technology where an organisation looks beyond its existing manager/team responsible for managing the benchmarking and participation knowledge exchange
about new asset management presentations and collaboration boundaries and knowledge base to look at what 'new organisation's asset management system, including professional forums. Evidence of correspondence
related technology and with other EDBs. things are on the market'. These new things can its continual improvement. People who monitor the relating to knowledge acquisition. Examples of
practices, and evaluate their include equipment, process(es), tools, etc. An various items that require monitoring for 'change'. change implementation and evaluation of new tools,
potential benefit to the organisation which does this (eg, by the PAS 55 s 4.6 People that implement changes to the organisation's and techniques linked to asset management strategy
organisation? standards) will be able to demonstrate that it policy, strategy, etc. People within an organisation and objectives.
continually seeks to expand its knowledge of all with responsibility for investigating, evaluating,
things affecting its asset management approach and recommending and implementing new tools and
capabilities. The organisation will be able to techniques, etc.
demonstrate that it identifies any such opportunities
to improve, evaluates them for suitability to its own
organisation and implements them as appropriate.
This question explores an organisation's approach to
this activity.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 28 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

Question No. Function Question Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
105 Audit What has the organisation The organisation has not recognised The organisation understands the The organisation is establishing its The organisation can demonstrate that The organisation's process(es) surpass
done to establish procedure(s) the need to establish procedure(s) for need for audit procedure(s) and is audit procedure(s) but they do not yet its audit procedure(s) cover all the the standard required to comply with
for the audit of its asset the audit of its asset management determining the appropriate scope, cover all the appropriate asset-related appropriate asset-related activities and requirements set out in a recognised
management system system. frequency and methodology(s). activities. the associated reporting of audit standard.
(process(es))? results. Audits are to an appropriate
level of detail and consistently The assessor is advised to note in the
managed. Evidence section why this is the case
and the evidence seen.

109 Corrective & How does the organisation The organisation does not recognise The organisation recognises the need The need is recognized for systematic Mechanisms are consistently in place The organisation's process(es) surpass
Preventative instigate appropriate corrective the need to have systematic to have systematic approaches to instigation of preventive and and effective for the systematic the standard required to comply with
action and/or preventive actions to approaches to instigating corrective or instigating corrective or preventive corrective actions to address root instigation of preventive and requirements set out in a recognised
eliminate or prevent the causes preventive actions. actions. There is ad-hoc causes of non compliance or incidents corrective actions to address root standard.
of identified poor performance implementation for corrective actions identified by investigations, causes of non compliance or incidents
and non conformance? to address failures of assets but not compliance evaluation or audit. It is identified by investigations, The assessor is advised to note in the
the asset management system. only partially or inconsistently in place. compliance evaluation or audit. Evidence section why this is the case
and the evidence seen.

113 Continual How does the organisation The organisation does not consider A Continual Improvement ethos is Continuous improvement process(es) There is evidence to show that The organisation's process(es) surpass
Improvement achieve continual improvement continual improvement of these recognised as beneficial, however it are set out and include consideration continuous improvement process(es) the standard required to comply with
in the optimal combination of factors to be a requirement, or has not has just been started, and or covers of cost risk, performance and which include consideration of cost requirements set out in a recognised
costs, asset related risks and considered the issue. partially the asset drivers. condition for assets managed across risk, performance and condition for standard.
the performance and condition the whole life cycle but it is not yet assets managed across the whole life
of assets and asset systems being systematically applied. cycle are being systematically applied. The assessor is advised to note in the
across the whole life cycle? Evidence section why this is the case
and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 29 S13.AMMAT


Commerce Commission Information Disclosure Template

Company Name MainPower New Zealand Ltd


AMP Planning Period 1 April 2019 – 31 March 2029
Asset Management Standard Applied
SCHEDULE 13: REPORT ON ASSET MANAGEMENT MATURITY (cont)

115 Continual How does the organisation The organisation makes no attempt to The organisation is inward looking, The organisation has initiated asset The organisation actively engages The organisation's process(es) surpass
Improvement seek and acquire knowledge seek knowledge about new asset however it recognises that asset management communication within internally and externally with other the standard required to comply with
about new asset management management related technology or management is not sector specific and sector to share and, or identify 'new' asset management practitioners, requirements set out in a recognised
related technology and practices. other sectors have developed good to sector asset management practices professional bodies and relevant standard.
practices, and evaluate their practice and new ideas that could and seeks to evaluate them. conferences. Actively investigates and
potential benefit to the apply. Ad-hoc approach. evaluates new practices and evolves its The assessor is advised to note in the
organisation? asset management activities using Evidence section why this is the case
appropriate developments. and the evidence seen.

2019 EDB-ID-determination-templates-for-schedules-11a-13-AMP-v4.1-2017-21-December-2017.xlsx 30 S13.AMMAT

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