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

3 PROJECT TIMING
0BInvestment Evaluation Summary
TNM-GS-809-0720
The timing of this project has been co-ordinated with the prioritised 110 kV circuit breaker replacement program and the
overall capital works program. This project is currently ranked 22nd of all the projects in Transend’s works prioritisation
tool and 8th of all the renewal projects.
It is likely that components of this project 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. It should be noted that these works, should they be needed,
will not result in the need for significant rework because the substation is not being reconfigured.
The project is currently scheduled to commence in 2013 and be completed in 2015.
Figure 2 presents a summary of the age of the key 110 kV assets (by category) at Knights Road Substation by asset
replacement cost. Figure 2 clearly illustrates that the vast majority of the assets included in the Knights Road Substation
110 kV redevelopment project are well beyond their nominal service lives of 45 years for primary assets and 15 years for
secondary assets as defined by Sinclair Knight Merz in its ‘Assessment of Economic Lives for Transend Regulatory
Asset Classes’ report prepared in April 2008 provided as attachment 24 of Transend’s revenue proposal.
Figure 2 - Age and value ($000) of major equipment installed at Knights Road substation
4 INVESTMENT NEED
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 or requirements 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.
The key investment driver for this project is to address identified issues presented by the primary and secondary assets at
Knights Road Substation.
The key issues relating to each major asset category are discussed in further detail in this section.
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