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

0BInvestment Evaluation Summary
TNM-GS-809-0720
Figure 1 – Summary of age and value ($000) of major 110 kV assets installed at Creek Road Substation
3 PROJECT TIMING
The Creek Road Substation 110 kV redevelopment project was originally scheduled to be completed in 2008–09. The
project has been deferred because of the need to coordinate the project with the Hobart Area Supply Upgrade program
and the Southern Power System Security program. These programs have been attributed a higher priority because of the
immediate need to increase the capacity of the transmission and distribution systems in southern Tasmania.
Progressing the Creek Road Substation redevelopment project as per the original schedule would have increased the risk
of supply to Hobart’s CBD if undertaken in parallel with the above-mentioned programs of work. It would also have
been inefficient due to sequencing implications and re-work required. Interim risk mitigation measures have been put in
place to enable this project to be deferred until the final stage of the Southern Power System Security program (the
Waddamana–Lindisfarne 220 kV transmission line project) is completed. The Hobart Area Supply Upgrade program has
been completed in the current regulatory control period. The Creek Road Substation 110 kV redevelopment project is
scheduled to commence in 2012 and be completed in 2014.
The Creek Road Substation 110 kV redevelopment project is currently the highest ranking of all proposed projects in
Transend’s works prioritisation tool, primarily because of its importance within the transmission network and the
criticality of the load connected to the substation.
It is possible that further works may need to be implemented prior to the planned commencement of the project because
of the deteriorated condition of certain assets and the fact that additional asset condition issues will most likely be
identified prior to commencement of the project.
4 INVESTMENT NEED
4.1 SUMMARY
This project is required to achieve the following capital expenditure objectives identified in clause 6A.6.7(a) of the
National Electricity Rules (Rules):
� comply with all applicable regulatory obligations associated with the provision of prescribed transmission services;
� maintain the quality, reliability and security of supply of prescribed transmission services; and
� maintain the reliability, safety and security of the transmission system through the supply of prescribed transmission
services.
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