Transend - Appendix 5 Renewal capital expenditure - Australian ...
Transend - Appendix 5 Renewal capital expenditure - Australian ...
Transend - Appendix 5 Renewal capital expenditure - Australian ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
7.4.4 CONCLUSION<br />
This option is technically viable.<br />
8 OPTION ESTIMATES<br />
A comparison of the net present value of options is provided in Table 1.<br />
Table 1 - Comparison of options considered<br />
0BInvestment Evaluation Summary<br />
TNM-GS-809-0720<br />
Option Net present value of costs ($M June 2007)<br />
1 Manage existing assets and defer replacement -$8.26<br />
2 Replace selected assets in-situ -$8.16<br />
3 Staged replacement of selected assets in-situ -$8.31<br />
4 Complete redevelopment of Palmerston Substation 110 kV -$8.91<br />
The economic analysis includes the cost impact to customers in the event of a major circuit breaker failure using a<br />
probabilistic approach based on current and forecast load data for each individual transmission circuit connected to<br />
Palmerston Substation 110 kV.<br />
9 PREFERRED OPTION<br />
Option 2 (replacement of selected assets in-situ) is the preferred option because it is the most cost-effective solution to<br />
address the identified safety and performance issues presented by the assets at Palmerston Substation 110 kV. This<br />
approach will also minimise the number and duration of transmission circuit outages due to reduced frequency and<br />
duration of maintenance.<br />
© <strong>Transend</strong> Networks Pty Ltd 13 of 13