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

5 CUSTOMER CONSULTATION
0BInvestment Evaluation Summary
TNM-GS-809-0720
Transend will liaise directly with relevant stakeholders regarding the intent, scope and implementation of the project as
part of the project initiation process.
6 BENEFITS
The direct benefits that are achieved through completing the work outlined in the scope of this project are:
� contributing to the achievement of the capital expenditure objectives identified in the Rules;
� substantially reduce identified safety and environmental risks associated with the existing assets;
� provision of a safe, secure and reliable electricity supply to customers connected to Arthurs Lake Substation by
replacing obsolete, unreliable assets that are in poor condition;
� life-cycle cost savings due to reduced operations and maintenance requirements;
� reduced burden on spare parts management by using standard equipment; and
� alignment with strategic asset management plans.
7 OPTIONS ANALYSIS
The following options have been considered for the redevelopment of Arthurs Lake Substation:
1. staged redevelopment;
2. replace selected assets in-situ;
3. replace all assets in situ; and
4. replace all assets at a greenfield location.
7.1 OPTION 1: STAGED REDEVELOPMENT
7.1.1 SCOPE
The scope for this option includes:
� replacement of assets that present a safety or environmental risk, including identified 6.6 kV switchgear, earthing
systems, oil containment system, 110 kV post insulators and current transformers in 2014;
� replacement of supply transformer T1 due to condition in 2014;
� continue existing maintenance practices for remaining assets, albeit accelerated due to the declining condition and
ageing of assets;
� undertake repairs and corrective maintenance as required; and
� defer replacement of 110 kV circuit breaker and associated protection for up to five years.
The capital cost of this option includes an initial $2.70 million ($June 2007) to address safety issues followed by a
deferred capital cost of $0.85 million ($June 2007) to replace remaining 110 kV assets five years later.
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