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

Table 1 - Summary of economic analysis of options
0BInvestment Evaluation Summary
TNM-GS-809-0720
Option Net present value of costs ($M June 2007)
1. Maintain existing assets and defer replacement $1.97
2. Replace selected assets in-situ $1.91
3. Replace all assets in-situ $1.98
4. Replace all assets in a Greenfield location $3.62
The economic analysis includes the cost impact to customers in the event of a major circuit breaker failure using a
probabilistic approach based on current and forecast load data the transmission circuit connected to Arthurs Lake
Substation.
9 PREFERRED OPTION
Option 2 is preferred because it addresses the issues identified in section 4 at the least cost.
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