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

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0BInvestment Evaluation Summary<br />

TNM-GS-809-0720<br />

� incur significantly longer and more frequent outages due to the intensive maintenance regimes that would be<br />

required to maintain the existing assets in service (whilst recognising that this approach is almost certainly unlikely<br />

to be successful);<br />

� not align with <strong>Transend</strong>’s policy to utilise dead tank circuit breakers when replacing 110 kV live tank current<br />

transformers and circuit breakers; and<br />

� not align with the recommendations made in the respective asset management plans for the primary and secondary<br />

assets.<br />

7.1.4 CONCLUSION<br />

Although this option may have lower initial <strong>capital</strong> cost, it is not the preferred option because it does not ensure the<br />

reliable operation of Knights Road Substation.<br />

7.2 OPTION 2: REPLACE SELECTED ASSETS IN-SITU<br />

7.2.1 SCOPE<br />

The scope for this option includes the replacement of the following assets in 2014:<br />

� in-situ replacement of assets that are known to present a significant safety risk, including post insulators, voltage<br />

transformers and current transformers;<br />

� replacement of the existing live tank circuit breakers with dead tank units with integral current transformers;<br />

� replacement of voltage transformers in-situ;<br />

� replacement of multi-piece post insulators with new units in-situ;<br />

� replacement of all droppers with aluminium conductor and compression fittings;<br />

� replacement of the identified protection and control schemes; and<br />

� implementation of revised maintenance practices.<br />

The <strong>capital</strong> cost of this option is $7.44 million ($June 2007).<br />

7.2.2 BENEFITS<br />

The benefits for this option are that it:<br />

� allows <strong>Transend</strong> to achieve the <strong>capital</strong> <strong>expenditure</strong> objectives;<br />

� addresses the safety and performance issues associated with the 110 kV assets identified in section 4 of this<br />

document, in particular the 110 kV voltage transformers and post insulators;<br />

� addresses other performance, reliability and design issues identified in section 4; and<br />

� reduces the ongoing maintenance requirements and costs associated with the site.<br />

7.2.3 DRAWBACKS<br />

The option has the following drawbacks:<br />

� higher initial <strong>capital</strong> cost than option 1.<br />

7.2.4 CONCLUSION<br />

This option is technically viable.<br />

© <strong>Transend</strong> Networks Pty Ltd 10 of 13

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