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

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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

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