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

0BInvestment Evaluation Summary
TNM-GS-809-0720
The issues pertaining to substation protection and control are discussed in EHV Transmission Line Protection Asset
Management Plan (TNM-PL-809-0701).
5 CUSTOMER CONSULTATION
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:
� it will contribute to the achievement of the capital expenditure objectives identified in the Rules;
� provision of a safe, secure and reliable electricity supply to customers connected to Burnie 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 Burnie Substation:
1. maintain existing assets and defer replacement;
2. replace selected assets in-situ;
3. replace selected assets in new switch bays; and
4. completely redevelop Burnie Substation 110 kV.
Other options considered at a high-level, but discounted for the reasons mentioned include:
� greenfield development – this option was clearly not a cost-effective alternative as other solutions can be
implemented within the existing perimeter of Palmerston Substation at a substantially lower cost.
� reconfigure and rationalise the existing 110 kV switchyard – there are no cost-effective alternatives to
reconfigure or rationalise Palmerston Substation 110 kV.
7.1 OPTION 1 - MAINTAIN EXISTING ASSETS AND DEFER REPLACEMENT
7.1.1 SCOPE
The scope for this option includes:
� replacement of assets that present a safety risk, including selected 110 kV current transformers (eight three-phase
sets) in 2014;
� continue existing maintenance practices, albeit accelerated due to the declining condition and ageing of assets;
� repairs and corrective maintenance as required; and
� deferred replacement for up to five years.
The capital cost of this option includes an initial $3.36 million ($June 2007) to address safety issues followed by a
deferred capital cost of $4.01 million ($June 2007) to replace remaining 110 kV assets five years later.
7.1.2 BENEFITS
The benefits for this option are the deferral of capital expenditure and that the identified safety issues are addressed.
7.1.3 DRAWBACKS
The drawbacks for this option are that it would:
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