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

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0BInvestment Evaluation Summary<br />

TNM-GS-809-0720<br />

secondary assets as defined by Sinclair Knight Merz in its ‘Assessment of Economic Lives for <strong>Transend</strong> Regulatory<br />

Asset Classes’ report prepared in April 2008 provided as attachment 24 of <strong>Transend</strong>’s revenue proposal. A large<br />

proportion of the primary assets at Tungatinah Substation and Tarraleah Switching Station will be at least 63 years old<br />

when decommissioned.<br />

Figure 3 – Summary of age and value ($000) of major 110 kV assets installed at Tungatinah Substation<br />

and Tarraleah Switching Station<br />

3 INVESTMENT TIMING<br />

The project is currently scheduled to commence in 2012 and be completed in 2015.<br />

The independent review undertaken by Ascension Consulting recommended that the Tungatinah Substation 110 kV<br />

redevelopment project be implemented as soon as practicable. This project has been scheduled to commence as soon as<br />

practicable, however it has been deferred primarily because of the need to determine the optimum transmission network<br />

configuration. This project has required considerable customer consultation and can only commence once the final stage<br />

of the Southern Power System Security program (the Waddamana–Lindisfarne 220 kV transmission line project) is<br />

completed.<br />

The Tungatinah Substation 110 kV redevelopment project has been coordinated with the Meadowbank Substation<br />

110 kV redevelopment and New Norfolk Substation 110 kV protection replacements projects to enable new, current<br />

differential protection schemes to be installed on the connecting transmission lines, thereby improving the security and<br />

reliability of the transmission network in southern Tasmania.<br />

The revised timing of the project has also been co-ordinated with the Creek Road Substation 110 kV redevelopment<br />

project given the likely synergies in project implementation methodologies.<br />

The Tungatinah Substation 110 kV redevelopment project is currently the third highest ranking of all proposed projects<br />

and the second highest renewal project (ranked closely behind the Creek Road 110 kV redevelopment project) in<br />

<strong>Transend</strong>’s works prioritisation tool, primarily because of the safety issues presented by the assets at Tungatinah<br />

Substation and Tarraleah Switching Station and the criticality of these sites.<br />

It is possible that some works may need to be implemented prior to the planned commencement of the project because of<br />

the deteriorated condition of certain assets and the fact that additional asset condition issues will most likely be identified<br />

prior to commencement of the project.<br />

4 INVESTMENT NEED<br />

This project is required to achieve the following <strong>capital</strong> <strong>expenditure</strong> objectives identified in clause 6A.6.7(a) of the<br />

National Electricity Rules (Rules):<br />

© <strong>Transend</strong> Networks Pty Ltd 5 of 15

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