Transend - Appendix 5 Renewal capital expenditure - Australian ...

0BInvestment Evaluation Summary
TNM-GS-809-0720
� replacement of six three phase sets of voltage transformers (including one set at St Marys Substation);
� installation of two three-phase sets of voltage transformers;
� decommissioning of the existing post type current transformers;
� replacement of multi-piece post insulators;
� replacement of the Palmerston–Arthurs Lake 110 kV transmission line protection;
� replacement of the Palmerston–Avoca 110 kV transmission line protection;
� replacement of the Palmerston–Hadspen No. 3 110 kV transmission line protection; and
� replacement of the Palmerston–Hadspen No. 4 110 kV transmission line protection.
Figure 2 presents a summary of the age of the key 110 kV assets (by category) at Palmerston Substation by asset
replacement cost (note that the scope of this project does not include replacement of the power transformers,
disconnectors and selected protection and control systems). Figure 2 clearly illustrates that the vast majority of the assets
included in the Palmerston Substation 110 kV redevelopment project are well beyond their nominal service lives of
45 years for primary assets and 15 years for secondary assets as defined by Sinclair Knight Merz in its ‘Assessment of
Economic Lives for Transend Regulatory Asset Classes’ report prepared in April 2008 as provided as attachment 24 of
Transend’s revenue proposal. This document was included as Attachment 24 of Transend’s Revenue Proposal. The
majority of the primary assets at Palmerston Substation will be 51 years old when decommissioned.
Figure 2 - Age and value of major 110 kV ($000) assets installed at Palmerston Substation
3 PROJECT TIMING
The project is currently scheduled to commence in 2012 and be completed in 2014.
The timing of this project has been co-ordinated with the prioritised 110 kV circuit breaker replacement program and the
overall capital works program. This project is currently ranked ninth of all projects, and fourth of all renewal projects in
Transend’s works prioritisation tool. The timing of the project has been coordinated with Avoca Substation transformer
T2 installation and asset replacements project to minimise the number of outages of the radial Palmerston–Avoca 110 kV
transmission line.
It is likely that components of this project may need to be implemented prior to the planned commencement of the
project because of the deteriorated condition of certain assets and the fact that additional asset condition issues will most
likely be identified prior to commencement of the project. It should be noted that these works, should they be needed,
will not result in the need for significant rework because the substation is not being reconfigured.
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