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AGILITY IN A CHANGING WORLD - SP AusNet

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STRENGTHEN TRANSFORM EXTEND MODERNISE<br />

ISSUE 6 SUMMER 2011/12<br />

ENSUR<strong>IN</strong>G REGULATION IS FIT FOR THE FUTURE<br />

Changes to our operating framework<br />

MANAG<strong>IN</strong>G THE LIVES OF OUR ASSETS<br />

Using international standards to manage our networks<br />

CUSTOMERS THE KEY TO DEMAND MANAGEMENT<br />

Empowered customers managing their energy needs<br />

<strong>AGILITY</strong> <strong>IN</strong> A<br />

CHANG<strong>IN</strong>G<br />

<strong>WORLD</strong>


2<br />

ENERGISE ISSUE 6<br />

EXTEND MODERNISE<br />

A message<br />

from Nino<br />

With the festive season approaching us, enjoy time<br />

out with family and friends. Remember that safety is<br />

important every single day – keep you and your loved<br />

ones safe over summer:<br />

• Keep hydrated on hot days – drinking a cup of water<br />

(about 200 mL) every 15 to 20 minutes.<br />

• Organise to catch public transport or assign<br />

a designated driver if planning to drink at<br />

festive celebrations.<br />

• Stay sun protected by wearing a wide brim hat,<br />

collared shirt and long pants, sunglasses and<br />

sunscreen. Rule of thumb: if the UV Index is 3 or<br />

higher, the radiation can damage your skin and eyes,<br />

so check the UV index, not the skies!<br />

• You may be more likely to experience stress over<br />

the summer season due to a busy schedule or<br />

additional expenses. Talk to family and friends, take<br />

time to relax and do something you enjoy if feeling<br />

stressed. If you feel you are struggling to cope, call<br />

our Employee Assistance Program on 1800 337 068.<br />

• Don’t let an accident or injury keep you from<br />

enjoying the festive season.<br />

Welcome to this sixth edition<br />

of ENERGISE, in which we aim<br />

to capture a number of the key<br />

developments for our industry<br />

and outline how <strong>SP</strong> <strong>AusNet</strong><br />

is responding.<br />

As highlighted in the article about<br />

regulation, much of the change<br />

we face is generated by the public<br />

policy and regulatory environment.<br />

As a highly regulated business,<br />

<strong>SP</strong> <strong>AusNet</strong> not only seeks to<br />

anticipate and respond to these<br />

changes, but also to share our<br />

experience and views on how<br />

policies and regulation can best<br />

meet the challenges that face<br />

our networks, customers and<br />

other stakeholders.<br />

Technology and innovation are<br />

other ways to shape change. As<br />

outlined in the article on demand<br />

management, we’re starting with<br />

our customers’ expectations of<br />

energy to help us find innovative<br />

technology solutions to manage<br />

our networks. This is a fastmoving<br />

area and many parts of<br />

the energy supply chain are<br />

involved, so we will leverage our<br />

strengths as a networks business<br />

to deliver on our core purpose to<br />

provide superior energy solutions<br />

to our customers.<br />

As we approach the end of the<br />

year, we reflect on some of our<br />

employees’ achievements with<br />

our annual Inspire Award winners.<br />

These are employees who have<br />

gone that extra mile, delivering<br />

outstanding results for our<br />

business. I would like to extend my<br />

congratulations to those winners,<br />

as well as recognise the 300 high<br />

quality nominations for this year.<br />

The efforts and commitments of<br />

all our people are central to our<br />

success – thank you.<br />

Our refreshed safety vision and<br />

strategy, missionZero, launched<br />

earlier this year, continues to be<br />

a key focus area. A number of<br />

key initiatives have been rolled<br />

out across the business aimed at<br />

driving our safety performance<br />

towards our target of zero injuries.<br />

On a final note, I would like to pay<br />

tribute to Carol Bull, a much-loved<br />

colleague and friend who passed<br />

away recently. Carol was an<br />

exceptional person who brought<br />

a mix of grace and good humour<br />

to her role. There are many<br />

people across the organisation<br />

and beyond who, like me, will<br />

feel a deep sense of loss from the<br />

realisation she will no longer be<br />

with us.<br />

On behalf of <strong>SP</strong> <strong>AusNet</strong>, I wish you<br />

a safe and happy holiday season.<br />

I hope you enjoy this edition<br />

of ENERGISE.<br />

Nino Ficca,<br />

Managing Director <strong>SP</strong> <strong>AusNet</strong>


ENERGISE is a quarterly publication of <strong>SP</strong> <strong>AusNet</strong>.<br />

ENERGISE is printed using environmentally friendly vegetable inks<br />

on 100% recycled paper.<br />

For more information, to suggest a story or to provide feedback,<br />

please email <strong>SP</strong> <strong>AusNet</strong>’s Corporate Relations team at<br />

public.relations@sp-ausnet.com.au<br />

TRANSFORM<br />

EXTEND<br />

MODERNISE<br />

STRENGTHEN<br />

Front Cover image:<br />

<strong>SP</strong> <strong>AusNet</strong>’s transmission network connecting<br />

into Latrobe Valley’s electricity generators<br />

taken by <strong>SP</strong> <strong>AusNet</strong> employee Jonathon Geddes.<br />

Printed on 100% recycled stock.<br />

In this issue<br />

Preparing for the bushfire season 4<br />

Ensuring Regulation is fit for the future 6<br />

Busting the myths of smart meters 9<br />

Supporting a renewable future 10<br />

My Safety Commitment 11<br />

How are we tracking 12<br />

A day in the life of… 14<br />

Modernising our fault response 15<br />

Managing the lives of our assets 17<br />

One inspirational evening 18<br />

Customers the key to demand management 22


4 ENERGISE ISSUE 6<br />

We’re preparing for<br />

bu sh fir es eason<br />

ARE YOU<br />

Darren Walker, <strong>SP</strong> <strong>AusNet</strong><br />

As your electricity distributor, <strong>SP</strong> <strong>AusNet</strong><br />

is responsible for undertaking an extensive<br />

bushfire mitigation program in preparation<br />

for the bushfire season each year.<br />

<strong>SP</strong> <strong>AusNet</strong> team members like Darren Walker,<br />

have inspected over 125,000 powerpoles and<br />

cleared and pruned more than 125,000 trees<br />

that were close to powerlines.<br />

We have also invested in excess of<br />

$58 million to make our network safer<br />

and even more reliable.<br />

Now it’s time for you to do your part. It’s your<br />

responsibility to check your private overhead<br />

electric powerline for any damage and to<br />

make sure trees and branches remain clear<br />

at all times.<br />

Preparing for<br />

the bushfire season<br />

An example of the current Bushfire Mitigation newspaper advertisement.<br />

With summer fast approaching, <strong>SP</strong> <strong>AusNet</strong><br />

has been busy preparing its networks for<br />

this year’s bushfire season.<br />

STRENGTHEN<br />

TRANSFORM<br />

EXTEND<br />

MODERNISE<br />

Each year, <strong>SP</strong> <strong>AusNet</strong> is required<br />

to submit a Bushfire Mitigation<br />

Plan to Energy Safe Victoria (ESV)<br />

before the end of June. This plan<br />

is then reviewed with the aim of<br />

being approved in time for the<br />

bushfire season, usually around<br />

the beginning of November.<br />

Alongside an extensive amount<br />

of vegetation management, asset<br />

inspections and maintenance,<br />

and technical enhancements to<br />

our network, we also commit to<br />

our annual bushfire mitigation<br />

public awareness campaign to<br />

help landowners understand their<br />

responsibilities in maintaining their<br />

private electrical assets.<br />

Engaging with our<br />

stakeholders<br />

In October, <strong>SP</strong> <strong>AusNet</strong> launched<br />

its annual public awareness<br />

campaign, which involves a mix<br />

of advertising, public relations and<br />

direct mail communication across<br />

our electricity distribution network<br />

in north and eastern Victoria.<br />

The advertisements, aired across<br />

regional TV, press and radio,<br />

highlight the need for residents<br />

with private overhead electric<br />

powerlines (POEL) to maintain<br />

and check tree and vegetation<br />

clearances and any other hazards<br />

that could affect the powerlines or<br />

have potential to ignite a fire.<br />

To further help facilitate strong<br />

communication with our<br />

communities, a copy of these<br />

materials has been sent to all local<br />

municipalities in north and eastern<br />

Victoria, as well as all Federal<br />

and State Members of Parliament<br />

representing areas within our<br />

electricity network.<br />

Our Regional Managers and<br />

their staff are doing their bit<br />

by providing expert advice at<br />

multiple emergency agency and<br />

fire planning meetings throughout<br />

the year.


ISSUE 6 ENERGISE 5<br />

Have you checked your<br />

private overhead electric line<br />

If you see any faults or hazards<br />

call 13 17 99.<br />

To find out more about<br />

private overhead<br />

electric powerlines and<br />

your responsibilities<br />

call <strong>SP</strong> <strong>AusNet</strong> on 1300 360 795<br />

or visit www.sp-ausnet.com.au<br />

Behind the scenes at the Bushfire Mitigation TV commercial filming.<br />

Getting ready<br />

Investing in vegetation management is essential to prevent<br />

supply outages and reduce bushfire risk, where our focus<br />

is to ensure a safe and reliable electricity supply to our<br />

customers.<br />

Prior to the bushfire season beginning in November, we have:<br />

• inspected more than 125,000 powerpoles<br />

• cleared or pruned more than 125,000 trees<br />

• invested more than $58 million<br />

… to make our networks even safer and more reliable.<br />

Maintaining proper<br />

vegetation levels<br />

<strong>SP</strong> <strong>AusNet</strong> continues to engage<br />

with communities on the need for<br />

proper vegetation management.<br />

This ensures tree clearing around<br />

powerlines is an essential part of<br />

the safe and reliable operation of<br />

our networks.<br />

There are approximately 14,000<br />

properties in <strong>SP</strong> <strong>AusNet</strong>’s<br />

electricity network with private<br />

overhead electric lines located on<br />

their property.<br />

These residents are required to<br />

keep private overhead electric<br />

lines clear of trees and vegetation<br />

that are deemed too close to<br />

powerlines, with an appropriately<br />

qualified contractor to prune<br />

vegetation where necessary.<br />

<strong>SP</strong> <strong>AusNet</strong> prepares a POEL<br />

brochure each year to provide<br />

useful information on how to<br />

safely maintain the line and assist<br />

in identifying potential hazards.<br />

For further information on<br />

responsibilities with private<br />

overhead electric lines,<br />

residents are encouraged to call<br />

<strong>SP</strong> <strong>AusNet</strong>’s customer service<br />

line on 1300 360 795 or visit<br />

www.sp-ausnet.com.au.<br />

Industry focus on bushfire<br />

safety<br />

At an industry level, <strong>SP</strong> <strong>AusNet</strong><br />

is working towards ensuring the<br />

safety of Victorian communities<br />

against the threat of bushfires.<br />

In mid-2010, the Victorian<br />

Bushfire Royal Commission<br />

identified seven recommendations<br />

specifically relevant to the<br />

electricity industry. Five of these<br />

were accepted in principle by the<br />

Government, with the remaining<br />

two recommendations (27 and 32)<br />

referred to the Powerline Bushfire<br />

Safety Taskforce.<br />

These two recommendations, the<br />

most significant for <strong>SP</strong> <strong>AusNet</strong>, are<br />

around changes to the operation<br />

of the electricity distribution<br />

networks, in particular protection<br />

and control device settings, for<br />

certain time periods on selected<br />

days of high bushfire risk.<br />

<strong>SP</strong> <strong>AusNet</strong> was part of the<br />

taskforce, established by the<br />

Victorian Government through ESV.<br />

The taskforce’s role was to<br />

investigate the full range of<br />

options available to reduce the<br />

risks of bushfires from electricity<br />

infrastructure within the next<br />

decade, and to quantify the<br />

benefits and cost, taking into<br />

account all measures already<br />

adopted by government.<br />

The taskforce presented its final<br />

report to ESV on 30 September<br />

2011, with the Victorian<br />

Government expected to release<br />

its response to the report before<br />

the end of this year.<br />

While the Government prepares<br />

its response, <strong>SP</strong> <strong>AusNet</strong> has<br />

proactively engaged with key<br />

stakeholders – Energy Safe<br />

Victoria and the Department of<br />

Primary Industries – on a plan<br />

to effectively communicate the<br />

expected network changes, which<br />

could include suppression of<br />

supply on high bushfire risk days<br />

and other impacts to customers.<br />

For our network, as part of our<br />

ongoing asset maintenance and<br />

replacement program, we are<br />

in the process of upgrading the<br />

capabilities of our protection and<br />

control devices to help manage<br />

bushfire risks.


6 ENERGISE ISSUE 6<br />

Regulatory stakeholder framework<br />

Ensuring Regulation<br />

is fit for the future<br />

<strong>SP</strong> <strong>AusNet</strong>’s transmission and distribution<br />

networks are underpinned by a range<br />

of economic, technical and safety<br />

REGULATIONS.<br />

STRENGTHEN<br />

TRANSFORM<br />

EXTEND<br />

MODERNISE<br />

Determined and implemented<br />

by Government bodies and<br />

regulators, regulations influence<br />

our operational and commercial<br />

frameworks.<br />

Our frameworks are designed<br />

to address a range of policy<br />

objectives, such as delivering safe<br />

and reliable energy.<br />

In addition, our frameworks must<br />

reflect and adapt to changes<br />

in the energy sector: increased<br />

energy demand from a growing<br />

population; changing consumer<br />

demand patterns; greater access<br />

to renewable energy; climate<br />

change and technological<br />

advancement.<br />

As a privately owned network, we<br />

must ensure investor certainty<br />

along with adequate returns for<br />

our securityholders. As such, any<br />

changes to the framework are of<br />

great importance to us and how<br />

we operate our networks. At the<br />

time of writing, there are several<br />

key regulatory and policy changes<br />

underway that will affect<br />

our business.<br />

Proposed changes by the AER<br />

At the end of September, our<br />

economic regulator, the Australian<br />

Energy Regulator (AER), submitted<br />

proposed changes to the National<br />

Electricity Law and National Gas<br />

Law to the Australian Energy<br />

Market Commission (AEMC).<br />

The AEMC is the body that advises<br />

the Commonwealth Government<br />

on the rules to balance supply and<br />

demand of both electricity and<br />

gas, to deliver energy efficiently<br />

to consumers.<br />

These laws are of key importance<br />

to <strong>SP</strong> <strong>AusNet</strong>, as they determine<br />

the elements of expenditure that<br />

we can recover for operating<br />

our networks.<br />

The AEMC is considering the<br />

AER’s proposed rule changes<br />

and, in response, has issued a<br />

consultation paper requesting<br />

submissions by the first week<br />

in December.<br />

If accepted by the AEMC, the AER’s<br />

rule changes would provide them<br />

with greater discretion in making


ISSUE 6 ENERGISE 7<br />

Gas mains renewal will be factored into the next GAAR.<br />

Monitoring our gas network<br />

pricing decisions. However, the<br />

AER is one stakeholder in the<br />

process and we do not support<br />

some of their reasoning.<br />

<strong>SP</strong> <strong>AusNet</strong> will play an active part<br />

in the AEMC process, highlighting<br />

the importance of ensuring<br />

reliable, safe supply of energy to<br />

our customers, as well as outlining<br />

the importance of investor<br />

certainty.<br />

Electricity<br />

Transmission<br />

Electricity<br />

Distribution<br />

Diversified regulatory reset periods<br />

2011 2012 2013 2014 2015 2016 2017<br />

Consumers are another key<br />

stakeholder group, represented<br />

by a range of consumer advocacy<br />

groups. The Energy Users<br />

Association of Australia (EUAA)<br />

representing industrial energy<br />

customers has also lodged its own<br />

proposed rule change with<br />

the AEMC.<br />

The process of rule change will<br />

take around 12 months, which<br />

means that <strong>SP</strong> <strong>AusNet</strong>’s impending<br />

gas and electricity transmission<br />

price resets would be covered<br />

under the existing rules, with<br />

<strong>SP</strong> <strong>AusNet</strong>’s electricity distribution<br />

first affected by any new rules<br />

in 2015.<br />

Gas Distribution<br />

Staggered reset periods<br />

reduces regulatory risk<br />

Gas Access Arrangement<br />

Review (GAAR)<br />

Every five years, we participate<br />

in price reviews for each of<br />

our networks with the AER, to<br />

get approval for recovery of<br />

investment which is required<br />

for the expenditure to meet<br />

performance requirements for the<br />

safe and reliable transportation<br />

of energy.<br />

At present, we are in the first<br />

year of the five-year Electricity<br />

Distribution Pricing Review<br />

(EDPR) and are working on our<br />

submission for the Gas Access<br />

Arrangement Review (GAAR),<br />

which will start January 1, 2013.<br />

key representatives from across<br />

the business are involved in<br />

developing the submissions to<br />

the AER, based on our projected<br />

Beginning of new<br />

reset period<br />

Diversified regulatory reset period table<br />

spends, planned programs and<br />

projects, customer growth and<br />

demand growth.<br />

We are on track to lodge our<br />

GAAR submission at the end of<br />

March 2012. The AER is expected<br />

to release its draft determination<br />

in August, which is open for<br />

independent responses, and its<br />

final determination at the end of<br />

next year.<br />

Continued next page...


8 ENERGISE ISSUE 6<br />

Ensuring Regulation is fit for the future (cont.)<br />

State and Territory<br />

Governments<br />

Ministerial Council on Energy<br />

Commonwealth<br />

Government<br />

• Some governments<br />

continue to own and<br />

operate parts of the<br />

system (not Vic)<br />

• Planning<br />

• Environmental policy<br />

• Investment facilitation<br />

• Innovation support<br />

• Community engagement<br />

• Resource allocation<br />

Australian<br />

Energy Market<br />

Commission<br />

Rule maker<br />

and adviser<br />

Australian<br />

Energy Market<br />

Operator<br />

System<br />

operator and<br />

planning for<br />

future needs<br />

Australian<br />

Energy<br />

Regulator<br />

Economic<br />

regulator*<br />

(including price<br />

determination)<br />

* part of ACCC<br />

• Climate change policies<br />

(eg. Carbon price,<br />

renewable energy targets)<br />

• Innovation support<br />

• Some environmental policy<br />

• Taxes<br />

Our Stationary Energy System<br />

Operating in a highly regulated industry requires active<br />

engagement with regulators, Governments and other<br />

stakeholders to ensure that framework changes are measured<br />

and strengthen incentives to how we deliver energy now and<br />

into the future.<br />

Introduction of carbon pricing<br />

The Federal Government’s climate<br />

change reform has taken a major<br />

step, with the Clean Energy<br />

legislation passing through the<br />

Senate in early November.<br />

This legislation aims to transition<br />

Australia to a clean energy<br />

economy through initiatives in<br />

four key areas – carbon pricing,<br />

renewable energy, energy<br />

efficiency and land management.<br />

Central to this is a two stage<br />

carbon price mechanism, starting<br />

at $23 per tonne from 1 July 2012<br />

for Australia’s 500 largest carbon<br />

emitters, before transitioning to a<br />

‘cap and trade’ emissions trading<br />

scheme in 2015.<br />

For the past three years,<br />

<strong>SP</strong> <strong>AusNet</strong> and other corporations<br />

meeting or exceeding thresholds<br />

for emissions of greenhouse<br />

gases, have been obliged to report<br />

emissions under the National<br />

Greenhouse and Energy Reporting<br />

(NGER) Act 2007, which have<br />

shown that <strong>SP</strong> <strong>AusNet</strong> emits<br />

greenhouse gas emissions from a<br />

range of activities. This reporting<br />

obligation will form the basis on<br />

which the carbon price will<br />

be applied.<br />

The direct impact of the carbon<br />

price on <strong>SP</strong> <strong>AusNet</strong> will be limited,<br />

as it will only apply to <strong>SP</strong> <strong>AusNet</strong>’s<br />

fugitive gas emissions.<br />

These emissions result from<br />

breakages and leaks in our<br />

ageing low pressure gas pipes.<br />

In addition, the use of sulphur<br />

hexafluoride as an insulator in<br />

our transmission and distribution<br />

networks will result in higher input<br />

costs, as part of an import and<br />

manufacture levy.<br />

As the legislation is relatively new,<br />

<strong>SP</strong> <strong>AusNet</strong> is analysing the price<br />

impacts but expect the carbon<br />

pricing mechanism will have a<br />

direct impact our business.<br />

On the positive side, the proposed<br />

investment by the government for<br />

the renewable energy sector is<br />

an opportunity for <strong>SP</strong> <strong>AusNet</strong> to<br />

increase our regulated asset base<br />

by connecting new energy sources<br />

to the electricity grid in Victoria.<br />

F-factor scheme<br />

The AER has made its draft<br />

determinations to set fire start<br />

targets for the Victorian electricity<br />

distribution businesses (DBs)<br />

under the Victorian Government’s<br />

f-factor scheme.<br />

The f-factor scheme is intended<br />

to provide incentives for Victorian<br />

DBs to reduce the risk of fire starts<br />

and to reduce the risk of loss or<br />

damage caused by fire starts.<br />

For the first four years (2012-15),<br />

DBs will be either rewarded or<br />

penalised at the incentive rate of<br />

$25,000 per fire for performing<br />

better or worse than their<br />

respective fire start targets.<br />

The Victorian Government<br />

published an f-factor scheme<br />

order 2011 in June that requires<br />

the AER to make a determination<br />

by 31 December 2011 setting out<br />

fire start targets for each DB for<br />

the 2012-15 period.


ISSUE 6 ENERGISE 9<br />

Smart meter installations underway<br />

Advancing metering infrastructure<br />

AS PART OF THE GOVERNMENT-MANDATED AMI<br />

PROGRAM, VICTORIAN HOMES AND SMALL BUS<strong>IN</strong>ESSES<br />

ARE HAV<strong>IN</strong>G THEIR CURRENT ELECTRICITY METER<br />

REPLACED WITH A SMART METER. THIS IS THE LARGEST<br />

<strong>IN</strong>VESTMENT <strong>IN</strong> VICTORIA’S ENERGY <strong>IN</strong>FRASTRUCTURE<br />

S<strong>IN</strong>CE THE <strong>IN</strong>TRODUCTION OF POLES AND WIRES.<br />

STRENGTHEN<br />

TRANSFORM<br />

EXTEND<br />

MODERNISE<br />

The Victorian Government, through<br />

the Department of Primary<br />

Industries, has mandated the<br />

state-wide smart meter roll out<br />

program, also referred to as the<br />

Advanced Metering Infrastructure<br />

(AMI). <strong>SP</strong> <strong>AusNet</strong>, along with<br />

Victoria’s four other electricity<br />

distribution businesses, is<br />

responsible for rolling out smart<br />

meters across Victoria.<br />

By the end of 2013 around 2.5<br />

million electricity meters will be<br />

in place and <strong>SP</strong> <strong>AusNet</strong> will have<br />

installed more than 720,000<br />

smart meters across northern and<br />

eastern Victoria. Since the roll<br />

out began in September 2009,<br />

Victoria’s electricity distribution<br />

businesses have collectively<br />

installed almost 900,000<br />

smart meters, with <strong>SP</strong> <strong>AusNet</strong><br />

successfully installing more than<br />

190,000 smart meters so far.<br />

WHY<br />

Replacing ageing metering<br />

infrastructure will enable more<br />

effective management of Victoria’s<br />

electricity network and ensure<br />

power distribution and supply<br />

is able to keep pace with future<br />

demand, particularly during<br />

peak periods.<br />

Smart meters will also provide the<br />

foundation for Victoria’s electricity<br />

consumers to better understand<br />

and manage their electricity<br />

usage and costs and will provide<br />

a platform for electricity retailers<br />

to offer their customers a suite of<br />

new tariffs and offers, resulting in<br />

increased choice.<br />

COSTS<br />

The costs associated with the roll<br />

out of smart meters and advanced<br />

metering infrastructure are being<br />

recovered over time via the<br />

metering charge which appears<br />

on your electricity bill. A metering<br />

charge has always formed part<br />

of your electricity bill and any<br />

charges are approved by the<br />

Australian Energy Regulator.<br />

Having a smart meter installed<br />

does not change the electricity<br />

tariff or unit price you pay for the<br />

power you consume. If you have<br />

questions about your electricity<br />

account, you need to contact your<br />

electricity retailer (the business<br />

who sends your electricity bills).<br />

SAFETY<br />

Electrical safety is a matter<br />

of utmost importance to the<br />

industry and to the community,<br />

and is fundamental to everything<br />

we do. Earlier this year, Energy<br />

Safe Victoria completed a<br />

comprehensive safety review<br />

that concluded that smart meters<br />

are being installed safely and by<br />

qualified and trained people.<br />

All <strong>SP</strong> <strong>AusNet</strong>’s meter installers<br />

are A-Grade electricians or<br />

lineworkers, who also complete<br />

a Government-accredited AMI<br />

training course before they are<br />

authorised to install meters on<br />

our behalf.<br />

Since 2009, smart meter installers<br />

have uncovered thousands of<br />

faults in electrical wiring and other<br />

defects which, in most cases,<br />

has been the first indication for<br />

consumers that defective wiring or<br />

other issues need to be repaired.<br />

Radio frequency levels from your<br />

smart meter are lower than those<br />

produced by common household<br />

appliances including your<br />

mobile phone, baby monitor and<br />

microwave oven.<br />

GOVERNMENT REVIEW<br />

The current Victorian Government<br />

has been undertaking a review<br />

of the AMI program. At the time<br />

of publication, outcomes had not<br />

been announced but are expected<br />

by the end of 2011. In the<br />

meantime, we continue the rollout,<br />

as mandated by the Victorian<br />

Government.


10 ENERGISE ISSUE 6<br />

Construction crews ‘bench’ the Macarthur site<br />

Supporting a renewable future<br />

<strong>SP</strong> AUSNET HAS BEEN WORk<strong>IN</strong>G ON MAJOR<br />

PROJECTS TO CONNECT W<strong>IN</strong>D, WATER AND<br />

GAS-GENERATED ELECTRICITy TO THE GRID.<br />

STRENGTHEN<br />

TRANSFORM<br />

MODERNISE<br />

EXTEND<br />

Two of these projects in western<br />

Victoria, AGL’s wind farm at<br />

Macarthur and Origin Energy’s<br />

gas-fired power station near<br />

Mortlake, are on track to supply<br />

electricity to the network in the<br />

next 12 months.<br />

<strong>SP</strong> <strong>AusNet</strong> Energy Solutions<br />

Manager, Con Sarantopoulos,<br />

provides an overview on how<br />

these projects will improve supply<br />

reliability and cater for increased<br />

consumer demand.<br />

“<strong>SP</strong> <strong>AusNet</strong> is helping facilitate<br />

the construction and connection<br />

of new sources of energy, some<br />

renewable, to the electricity grid.<br />

These projects will help strengthen<br />

our energy network to deliver<br />

secure and sustainable energy<br />

supply to meet the future needs<br />

for Victorians,” he said.<br />

Macarthur Wind Farm<br />

<strong>SP</strong> <strong>AusNet</strong> was awarded the<br />

tender to build the terminal station<br />

at AGL’s 420 Megawatt (MW) wind<br />

farm, the largest in the Southern<br />

Hemisphere.<br />

The Macarthur wind farm will have<br />

140 turbines that will generate<br />

enough energy to power the<br />

equivalent of 220,000 average<br />

Victorian households for a year<br />

and save 1.7 million tones of<br />

greenhouse gas emissions.<br />

“We’ve recently started<br />

construction of the terminal<br />

station, in particular, benching the<br />

site before we lay the foundations<br />

at the Macarthur wind farm,”<br />

Mr Sarantopoulos said.<br />

“The wind farm is expected to<br />

supply around 420 MW of clean,<br />

green wind energy into the<br />

network via the 500kV Moorabool<br />

- Heywood transmission line.<br />

“Once we complete the terminal<br />

station, the project will start<br />

feeding electricity into the grid<br />

at the end of 2012, with all 140<br />

turbines to be built by early 2013,”<br />

he said.<br />

Mortlake Gas-fired Power<br />

Station<br />

<strong>SP</strong> <strong>AusNet</strong> is also assisting Origin<br />

Energy to commission its 550<br />

MW gas-fired power station at<br />

the Mortlake terminal station that<br />

is operated and maintained by<br />

<strong>SP</strong> <strong>AusNet</strong>.<br />

“At Mortlake, we’ve consulted<br />

on the design and construction<br />

of the terminal station and built<br />

the line deviation assets that will<br />

feed the electricity generated from<br />

the two 225MW gas turbines;<br />

also to the Moorabool - Heywood<br />

transmission line,”<br />

Mr Sarantopoulos said.<br />

In addition to these two milestone<br />

projects, <strong>SP</strong> <strong>AusNet</strong> has also<br />

connected six embedded<br />

generators to its distribution<br />

network including Melbourne<br />

Water’s hydro plants now<br />

operating at Silvan, Sugarloaf,<br />

Olinda and at Upper yarra Dam,<br />

and Land Management System’s<br />

gas fired generators at Wollert and<br />

Hallam.


ISSUE 6 ENERGISE 11<br />

Paul Lane<br />

My safety commitment: Paul Lane<br />

ENERGISE RECENTLy CAUGHT UP WITH NORTH REGION MANAGER PAUL LANE TO DISCUSS<br />

THE IMPORTANCE OF BE<strong>IN</strong>G A SAFETy LEADER.<br />

energise<br />

What is your commitment<br />

to safety<br />

Safety must start with you and<br />

then follow with challenging those<br />

around you to also make safe<br />

choices. With that in mind I have<br />

five commitments to my personal<br />

safety:<br />

1. I am committed to always<br />

driving safely - I drive over<br />

45,000 km each year;<br />

2. I always try to understand my<br />

immediate environment to avoid<br />

putting myself in a dangerous<br />

situation;<br />

3. I ensure I have the same<br />

dedication to working safely<br />

when I’m at home;<br />

4. I exercise regularly - I love<br />

bike riding and bushwalking;<br />

and finally<br />

5. I book in for annual health<br />

checks with my doctor.<br />

energise<br />

As a leader within <strong>SP</strong> <strong>AusNet</strong>,<br />

how do you ensure you’re also<br />

a safety leader<br />

Real safety leadership comes from<br />

each individual. If we value our<br />

own safety and those around us<br />

then we’ll always make<br />

safe choices.<br />

It’s also about knowing your<br />

limitations and stopping or<br />

asking for help when you need<br />

to. I encourage discussion about<br />

the important things in life and<br />

making conscious safety choices<br />

to protect those things.<br />

My role as North Region Manager<br />

is also about supporting and<br />

urging team members to re-think<br />

how we go about our tasks and<br />

how we can further improve<br />

our safety.<br />

energise<br />

How do you promote<br />

the importance of safety<br />

New or old, senior or junior, it’s<br />

about encouraging the right<br />

mindset and backing that up<br />

with individual behaviours that<br />

put safety first. It’s often the<br />

common things we do that pose<br />

the greatest risk, such as driving<br />

vehicles, lifting, moving around<br />

our worksites and avoiding trips<br />

and falls.<br />

It’s vital for all team members to<br />

speak up and challenge each other<br />

when they see something not<br />

quite right. No one comes to work<br />

to hurt themselves but we need to<br />

be talking, checking and assisting<br />

each other to avoid that one lapse<br />

that could end in an injury.<br />

energise<br />

What does safety mean in<br />

the North region<br />

The North team has a really<br />

positive and proactive approach to<br />

working safely - our safety culture<br />

and experience is a strong one.<br />

Our Wodonga team is approaching<br />

seven years without a lost time<br />

injury. This fantastic achievement<br />

demonstrates that it is possible<br />

to work long periods without<br />

injury. One of our aims is to tap<br />

into teams and individuals who’ve<br />

worked safely for long periods to<br />

educate and inspire other teams to<br />

achieve similar results.


12 ENERGISE ISSUE 6<br />

ISSUE 6 ENERGISE 13<br />

Tracking our performance<br />

scorecard: FY 2011/12 – NOVEMBER<br />

S<strong>IN</strong>CE LAUNCH<strong>IN</strong>G OUR GROWTH STEM STRATEGY <strong>IN</strong> 2010, <strong>SP</strong> AUSNET HAS ALIGNED HOW WE MEASURE<br />

OUR GOALS AND COMMUNICATE PROGRESS TO EMPLOYEES. THE DIAGRAM BELOW TRACKS ALL<br />

CORPORATE TARGETS AND CLEARLY SHOWS HOW THEY RELATE TO OUR STRATEGY OF STRENGTHEN<strong>IN</strong>G,<br />

TRANSFORM<strong>IN</strong>G, EXTEND<strong>IN</strong>G AND MODERNIS<strong>IN</strong>G OUR BUS<strong>IN</strong>ESS. EMPLOYEES ARE ENCOURAGED TO<br />

LOOK OUT FOR THESE POSTERS ON NOTICEBOARDS TO KEEP TRACK OF THE COMPANY’S PROGRESS<br />

THROUGHOUT THE YEAR.<br />

STRENGTHEN<br />

TRANSFORM<br />

EXTEND<br />

MODERNISE<br />

Category Performance Versus Target YTD Status STEM<br />

Key Performance Indicators<br />

Year to date<br />

Actual<br />

Year to date<br />

Target<br />

Safety and Environment Recordable Injury Frequency Rate 11.0 7.7<br />

Reporting<br />

Period<br />

12 months<br />

rolling average<br />

Number of Network Incidents with Potential Fire Start 4,503 4,845 YTD Monthly<br />

Financial and Growth EBITDA ($M) Unfavourable YTD Monthly<br />

Return on Equity (%) Unfavourable YTD Monthly<br />

Credit Metrics A Range A Range Monthly<br />

Select Solutions External EBITDA ($M) 15.4 14.6 YTD Monthly<br />

Customer Service Regulated Customer Satisfaction (%) 85 87 Monthly<br />

Select Solutions Client Satisfaction Index (%) 79 80 Monthly<br />

Network Performance Electricity Unplanned System Average Incident Duration Index (USAIDI) (CY 11 mins) 136.6 147.6<br />

Electricity Transmission AER Performance Service Target Performance<br />

Incentive Scheme (STPIS) (CY11%)<br />

71.3 40.5<br />

Gas Unplanned System Average Interruption Duration Index (USAIDI) (CY 11 mins) 0.99 0.89<br />

Calendar<br />

YTD Monthly<br />

Calendar<br />

YTD Monthly<br />

Calendar<br />

YTD Monthly<br />

Performance Efficiency Total Controllable Operational Costs per Budgeted FTE ($’000) Unfavourable YTD Monthly<br />

Capital efficiency of completing works program (%)<br />

Result calculated<br />

March 2012<br />

Result calculated<br />

March 2012<br />

ICT Application Uptime Tier 1 (critical) (%) 100.0 98.0 YTD Monthly<br />

ICT Application Uptime Tier 2 (BAU) (%) 100.0 95.0 YTD Monthly<br />

People Voluntary Turnover (%) 3.7 4.0 Monthly<br />

Yearly<br />

Status SEP OCT NOV<br />

On or beating target<br />

Below target but expected to be favourable<br />

at year end<br />

Below target and risk of being unfavourable<br />

at year end


14<br />

ENERGISE ISSUE 6<br />

A DAY <strong>IN</strong> THE LIFE:<br />

Terry Jong<br />

ENERGISE <strong>SP</strong>ENT THE DAy <strong>IN</strong> THE ‘SHOES’ OF<br />

TERRy JONG, THE TEAM LEADER – PRIMARy,<br />

FROM <strong>SP</strong> AUSNET’S STATIONS DEVELOPMENT<br />

TEAM, TO F<strong>IN</strong>D OUT HOW HIS TECHNICAL<br />

DESIGN ROLE HELPS MEET THE STATE’S<br />

ELECTRICITy NEEDS.<br />

As the Team Leader – Primary,<br />

Terry is responsible for a team of<br />

six engineers who manage the<br />

design of electricity transmission<br />

developments and upgrades. At<br />

the moment, some of the projects<br />

that Terry and his team are<br />

working on include design options<br />

for a potential rebuild of the West<br />

Melbourne Terminal Station, being<br />

involved in the construction stage<br />

of the East Rowville Terminal<br />

Station transformer installation<br />

to ensure the original design is<br />

carried out and design of a new<br />

500 kV terminal station in Tarrone<br />

for the connection of a new<br />

wind farm.<br />

Terry’s role can change from day<br />

to day, but here’s what a typical<br />

day looks like:<br />

Network Strategy Development’s Terry Jong<br />

8:30 AM<br />

Terry starts the day by checking<br />

emails and reviewing all projects<br />

in the Project Execution Tracking<br />

(PET) database – checking what’s<br />

at stage 2 (broad scoping of the<br />

project) and stage 10 (specific<br />

detailed design for the project).<br />

9:30 AM<br />

Terry meets with Beca,<br />

<strong>SP</strong> <strong>AusNet</strong>’s preferred supplier of<br />

engineering services to <strong>SP</strong> <strong>AusNet</strong>,<br />

to discuss current design projects,<br />

particularly in relation to the timing<br />

of delivery and any foreseeable<br />

issues.<br />

10:00 aM<br />

Discussion with colleagues on<br />

the valuation of a tender for the<br />

Bendigo Terminal Station project<br />

(where two new transformers are<br />

being installed). Terry discusses<br />

which contractor should be<br />

awarded the design service<br />

contract based on price, quality,<br />

experience, personal and previous<br />

performances and exclusions.<br />

11:00 AM<br />

Terry meets with a new team<br />

member to talk them through<br />

<strong>SP</strong> <strong>AusNet</strong>’s personal development<br />

program and Annual Incentive<br />

Plan.<br />

11:30 AM<br />

Time to check those emails again,<br />

which just keep piling in. Terry<br />

responds to technical, process and<br />

financial questions, keeps an eye<br />

on how projects are progressing<br />

and provides guidance to his team<br />

on their projects.<br />

1:00 PM<br />

After a quick lunch, Terry meets<br />

with the Customer and Energy<br />

Operations Team and Project<br />

Development Team, as two key<br />

stakeholders. This was the first<br />

meeting of these two teams,<br />

where the group discussed the<br />

structure of both teams, how they<br />

can work better together, current<br />

issues and future projects.<br />

2:00 PM<br />

Terry spends some time catching<br />

up with each of his team members<br />

individually, to see how their<br />

projects are progressing and talk<br />

through any issues they might be<br />

facing. Terry also goes through<br />

his emails again and finalises a<br />

communication training session<br />

that he’s organising for his team.<br />

3:30 PM<br />

In the afternoon, Terry works on<br />

the West Melbourne Terminal<br />

Station redevelopment. The project<br />

sponsor has requested additional<br />

information to be included in the<br />

estimate and options report. Terry<br />

does some additional work to<br />

further investigate project costs<br />

and emails the extra detail to<br />

the project sponsor.<br />

5:30 PM<br />

After a productive day and good<br />

progress made on a number of<br />

projects, Terry calls it a day and<br />

heads home.


ISSUE 6 ENERGISE 15<br />

drawn from several disparate<br />

systems,” he said.<br />

Greg continued, saying the<br />

DOMS will play a vital role in<br />

providing our Customer Energy<br />

and Operations Team and Field<br />

Services teams with more<br />

accurate, real-time customer<br />

status and numbers off supply<br />

during any outages.<br />

“With better data available in<br />

real-time, our Network Controllers<br />

can make more rapid decisions on<br />

switching, enabling them, through<br />

our smart networks, to restore<br />

supply to more customers faster,”<br />

he said.<br />

“The data also enables controllers<br />

and Field Services employees<br />

to more effectively direct fault<br />

response crews to areas that have<br />

the most need,” Greg said.<br />

Modernising<br />

our fault response<br />

<strong>SP</strong> AUSNET IS ON AN ExCIT<strong>IN</strong>G JOURNEy TOWARDS SMARTER, SELF-HEAL<strong>IN</strong>G<br />

NETWORkS THAT COMMUNICATE MORE DATA THAN EVER BEFORE ON<br />

THE STATE OF OUR ASSETS AND RELIABILITy.<br />

One of the major building blocks<br />

for our journey is the network<br />

intelligence to be realised through<br />

the Network Management<br />

Automation (NMA) Program,<br />

specifically the upgrade to a<br />

new integrated Distribution<br />

Management System (DMS) and<br />

Outage Management System<br />

(OMS), the two systems together<br />

known as “DOMS”.<br />

NMA is also delivering a new<br />

improved Graphical Interface<br />

System (GIS) that is key in<br />

supporting critical business<br />

STRENGTHEN<br />

TRANSFORM<br />

EXTEND<br />

The DOMS will assist Network Controllers when making decisions on switching.<br />

operations and many of the<br />

leveraging opportunities for<br />

DOMS and the Advanced Metering<br />

Infrastructure program in<br />

the future.<br />

The delivery of a single smarter,<br />

more accurate, real-time system<br />

to manage distribution network<br />

and outage information is part of<br />

<strong>SP</strong> <strong>AusNet</strong>’s key strategic focus to<br />

modernise our energy networks,<br />

ensuring that we continue to<br />

provide superior energy solutions<br />

to our customers.<br />

MODERNISE<br />

Managing data during<br />

outages<br />

The move to a smarter network<br />

is key to providing more reliable<br />

energy to our customers and<br />

reducing USAIDI, which is the<br />

average number of unplanned<br />

minutes off supply per customer<br />

per year. By upgrading our<br />

technology, <strong>SP</strong> <strong>AusNet</strong> is better<br />

positioned to manage and<br />

minimise any customer outages.<br />

NMA Business Project Manager<br />

Greg Snibson said the project<br />

offered many benefits by<br />

upgrading our tool sets from what<br />

can be manual and difficult to use<br />

during storms to a much more<br />

state of the art system.<br />

“The DOMS will provide the<br />

business with more real-time<br />

up to date information about our<br />

networks, something currently<br />

The new systems will also feature<br />

enhanced reporting tools allowing<br />

people around the business<br />

to draw on more accurate<br />

information and support their<br />

planning or project decisions.<br />

Results through collaboration<br />

In a unique move, the team<br />

responsible for bringing these two<br />

systems to <strong>SP</strong> <strong>AusNet</strong> formed an<br />

alliance with a West Australian<br />

utility, Western Power Corporation<br />

(WPC), to leverage their experience<br />

with the product and realise the<br />

many advanced features available.<br />

The team are now surging ahead<br />

under the leadership of NMA<br />

Executive Sponsor John Azaris,<br />

who said the benefits of the<br />

system are expected to begin<br />

being realised in the next<br />

financial year.<br />

“The DMS is scheduled to be<br />

implemented in June 2012, with<br />

the OMS to follow in October<br />

2012,” he said.<br />

“Benefits achieved as a direct<br />

result of the systems will help us<br />

achieve our five-year objective<br />

of reducing the time customers<br />

are off supply through intelligent<br />

network applications.”<br />

“This project is a great example<br />

of the company’s strategic vision<br />

of modernising our businesses<br />

systems and processes,”<br />

John said.


16 ENERGISE ISSUE 6<br />

Managing the lives<br />

of our assets<br />

As the owner of three of Victoria’s largest energy networks, it’s <strong>SP</strong> <strong>AusNet</strong>’s<br />

responsibility to manage their lifecycles from end to end, delivering a high quality<br />

service to our customers.<br />

STRENGTHEN<br />

TRANSFORM<br />

EXTEND<br />

MODERNISE<br />

Rather than looking at individual<br />

power poles, gas pipes or<br />

transmission towers, we need to<br />

observe our energy networks and<br />

their overall asset management<br />

systems to identify what’s working<br />

and what needs to improve.<br />

Assessing our assets’<br />

abilities<br />

To aid us in managing our assets’<br />

lifecycles, <strong>SP</strong> <strong>AusNet</strong> has become<br />

the first Australian infrastructure<br />

business to achieve PAS 55 (2008)<br />

accreditation for our electricity<br />

transmission, gas distribution and<br />

electricity distribution networks.<br />

When <strong>SP</strong> <strong>AusNet</strong> sets its corporate<br />

direction each year – through<br />

business planning, risk plans,<br />

financial objectives and peoplerelated<br />

strategies – it’s important<br />

to understand the link between<br />

these strategies and our<br />

day-to-day activities. This can<br />

be achieved by using the PAS 55<br />

(2008) Standard.<br />

Networks Strategy and<br />

Development’s Business<br />

Improvement Manager, John<br />

Allen is responsible for the project<br />

management of various aspects<br />

of PAS 55 accreditation and<br />

improvement activities.<br />

“PAS 55 is an international<br />

reference used to rate the optimal<br />

management of physical assets.<br />

It provides our business with<br />

standard definitions of good<br />

practice in the whole-of-life<br />

management of assets,”<br />

John said.<br />

By developing an in-depth<br />

knowledge of the PAS 55<br />

requirements, John understands<br />

the strength that adhering to the<br />

standard brings our business.


ISSUE 6 ENERGISE 17<br />

By implementing the PAS 55 standards into our<br />

business, we can:<br />

PLAN – establish the necessary asset management<br />

strategies, objectives and plans that will deliver<br />

against our asset management policy and corporate<br />

business plan.<br />

DO – establish enablers for implementing asset<br />

management requirements, such as information<br />

systems, legal requirements, training and<br />

competencies, communication, risk, contingency<br />

planning and managing change.<br />

CHECK – monitor and measure the results against<br />

the asset management policy, strategy, plans and<br />

statutory requirements, record and report the results.<br />

ACT – review results and take actions to ensure<br />

that the asset management objectives and our asset<br />

management system continually improve.<br />

Taking the steps towards<br />

accreditation<br />

As John explains, firming up<br />

<strong>SP</strong> <strong>AusNet</strong>’s asset management<br />

approach began five years ago,<br />

when a risk management review<br />

highlighted the need for a stronger<br />

method of managing our<br />

energy networks.<br />

“As part of the regulated Price<br />

Review for <strong>SP</strong> <strong>AusNet</strong>’s electricity<br />

transmission network in 2007,<br />

we decided to investigate the<br />

use of BSI PAS 55 (2004) as<br />

an improvement tool, following<br />

discussions we had with the UK’s<br />

National Grid Company. The next<br />

step was undertaking a selfassessment<br />

project using the<br />

standard,” John said.<br />

Following this, our transmission<br />

network was accredited in 2008<br />

to the PAS 55 (2004) standard – a<br />

substantial change in approach<br />

where for the first time our<br />

focus was on the whole-of-life<br />

management of the company<br />

assets delivering efficiency and<br />

continuous improvement.<br />

“This systematic review provided<br />

a structured and optimised<br />

approach for identifying gaps<br />

in how we managed our assets<br />

and the improvement activities<br />

required,” John continued.<br />

In 2010, <strong>SP</strong> <strong>AusNet</strong> embarked on<br />

the next step by using the BSI PAS<br />

55 (2008) to identify improvement<br />

activities in our electricity<br />

distribution and gas distribution<br />

networks, with accreditation<br />

of both networks subsequently<br />

achieved in March 2011.<br />

Paving the way with PAS<br />

As overseen by John, the PAS 55<br />

Management System structure has<br />

24 clauses to rate performance,<br />

helping <strong>SP</strong> <strong>AusNet</strong> identify any<br />

gaps in our asset management<br />

approach.<br />

“The gap analysis helps to define<br />

which activities are necessary<br />

to further strengthen the<br />

performance of our<br />

three networks.<br />

“Some significant improvement<br />

areas identified included<br />

establishing an Asset Management<br />

Committee to maintain the<br />

overarching management of<br />

our ongoing asset activities<br />

and undertaking a more robust<br />

approach to the calibration of tools<br />

and equipment,” John said.<br />

The improvement process is<br />

almost continuous over the entire<br />

three-year accreditation cycle.<br />

Re-accreditation audits are<br />

due every three years, with our<br />

electricity transmission network<br />

achieving this in September<br />

2011, and our electricity and gas<br />

distribution networks due for reaccreditation<br />

in 2014.<br />

The accreditation stages include<br />

self-assessment, improvement<br />

plans, accreditation reviews and<br />

reports, more improvement plans<br />

and surveillance audits, then it’s<br />

back to the start to begin again for<br />

the next cycle.<br />

In between Accreditation Reviews<br />

and Surveillance Audits, the Asset<br />

Management Committee monitors<br />

the progress of improvement<br />

activities and prepares for reviews.<br />

Taking our company through<br />

the accreditation process is a<br />

huge undertaking, with a large<br />

number of employees across the<br />

majority of our divisions gaining an<br />

improved understanding of where<br />

they fit into the lifecycle activity by<br />

playing a role in self-assessments<br />

and reviews.<br />

Thanks to the benefits that PAS<br />

55 accreditation provides us,<br />

our commitment to the process<br />

remains strong.<br />

By aligning our networks to<br />

a global standard, <strong>SP</strong> <strong>AusNet</strong><br />

will keep identifying those<br />

improvements to help both<br />

maintain and strategically manage<br />

how we operate our assets’<br />

lifecycles from end-to-end.


18 ENERGISE ISSUE 6<br />

Our Inspire Award winners with Managing Director Nino Ficca (centre).<br />

One inspirational evening<br />

The success of <strong>SP</strong> <strong>AusNet</strong> relies on dedicated employees who go above and beyond their<br />

day-to-day role to achieve excellent results for the company.<br />

Now in its FOURTH year, the Inspire AWARDS are a PLATFORM to recognise and REWARD<br />

the outstanding efforts and achievements of <strong>SP</strong> <strong>AusNet</strong> employees.<br />

Inspire verb, -spired, -spiring.<br />

To inspire is to animate, spur on or encourage<br />

others, to fill them with revolutionary ideas,<br />

to affect them with a superior influence and to<br />

communicate inspiration to others.<br />

This year more than 300 nominations were<br />

received for the 2011 Inspire Awards.<br />

Congratulations to all nominees. A nomination is<br />

an honourable recognition of the hard work and<br />

commitment you have all made to <strong>SP</strong> <strong>AusNet</strong>, and<br />

something that should be celebrated.<br />

Nominations are now being taken for the 2012<br />

Inspire Awards.<br />

STRENGTHEN<br />

TRANSFORM<br />

MODERNISE<br />

EXTEND<br />

Nino


ISSUE 6 ENERGISE 19<br />

Community AWARD<br />

– presented to an employee who commits part of their time to make a real difference in<br />

the community.<br />

Adam Carrick<br />

Adam is described as a tremendous ambassador for <strong>SP</strong> <strong>AusNet</strong>, bringing valuable insight back in to the business<br />

from the communities in which it operates. As a driving force in the East Sustainability Working Group - a group<br />

of employees that dedicates time to making positive improvements to its community and work areas - he often<br />

assists local communities achieve their goals through sponsorship or ‘in-kind’ works.<br />

Last year, Adam was elected to the Community Sponsorship and Donations Fund as an employee representative.<br />

During the group’s first year, he has made many positive contributions, including assisting the Yarram Lions Club<br />

in its successful application for sponsorship of a food trailer, to be used within the community during<br />

major events.<br />

Adam is described as someone who understands that a little goes a long way in some communities and was<br />

recently involved in donating some old structures that were rusting in a yard to a community group who have put<br />

them to good use.<br />

Excellence AWARD<br />

– presented to an employee who consistently produces work of outstanding quality, which meets and<br />

exceeds the needs of the task or project outline, while outperforming benchmarks and contributing in<br />

an exceptional way to the business.<br />

Peter Kilevics<br />

Peter has been awarded for his exceptional design work on <strong>SP</strong> <strong>AusNet</strong>’s electricity transmission projects.<br />

One project in particular, which was the first of its kind, required development of engineering specifications and<br />

associated drawings from scratch to develop a concept into a construction methodology. Peter also provided<br />

valuable feedback during the construction phase.<br />

A number of challenges were faced during the last few months of the project, but Peter was eager to find a<br />

solution and provided an outstanding level of technical expertise.<br />

Peter’s understanding of practical site issues is commended and he is regarded as extremely knowledgeable on<br />

all aspects of transmission lines and structures, which is of great value to the company. His ability to make quick<br />

decisions and stand-by his judgment is applauded.<br />

Passion<br />

– presented to an employee who exudes energy, drive and persistence. Someone who is engaging,<br />

keen to be involved, takes great pride in what they do and with consistent enthusiasm will steer a<br />

project through to completion.<br />

Amanda Hurley<br />

Amanda was nominated based on the passion she displays as Solar Connection Team Leader. She shows initiative<br />

and enthusiasm to learn more about the Solar Industry and, more specifically, how it affects new connections.<br />

With enthusiasm, Amanda has spent a lot of her own time researching all aspects of solar, creating ways to make<br />

things better for her team and answering the ongoing flow of enquiries from various stakeholders.<br />

As a trusted source of knowledge, people from across the business go to Amanda with questions regarding solar,<br />

knowing she will always provide an answer. If she does not know, Amanda goes out of her way to find out -<br />

always with a smile on her face.<br />

Amanda has been invited to speak on behalf of New Connections and Select Solutions at many industry forums<br />

and always excels in representing the business in a positive manner. Her passion and knowledge have helped her<br />

develop great relationships with various industry bodies, solar installers and service providers.


20 ENERGISE ISSUE 6<br />

Integrity AWARD<br />

– presented to an employee who is seen as honest, fair and trustworthy, who will make the right<br />

decision and is known for standing up for what they believe in and always practice the highest<br />

ethical standards.<br />

Jack Bonotto<br />

Jack can be relied on to provide good advice and is always willing to help. As a project manager, Jack ensures<br />

contractors, suppliers and fellow employees are reliable and deliver on their promises.<br />

Jack is known as a true example of someone who ‘tells it the way it is’. He is straightforward, honest and<br />

confidently expresses his point of view as to how he sees things. He has great knowledge of work procedures and<br />

processes and ensures work is always completed correctly.<br />

He enjoys what he does and has earned the respect of his colleagues and peers through his courage to do what<br />

is right for <strong>SP</strong> <strong>AusNet</strong> - even if the decisions he makes are not always popular.<br />

Safety<br />

– presented to an employee who adds a new dimension to safety through innovative concepts,<br />

finding better ways of doing things, or of communicating procedures more effectively.<br />

Sarah Monaghan<br />

Sarah was awarded for her unrelenting effort in re-establishing the CBD Health, Safety and Environment<br />

Consultative Group. Through her passion to get this group functional she has almost single-handedly established<br />

a workable charter, recruited and motivated participants.<br />

As the chair of the committee, Sarah has stepped into a role that needed to be filled and is clearly leading the<br />

way and setting an example on what can be done to embed <strong>SP</strong> <strong>AusNet</strong>’s missionZero objectives into our culture.<br />

Sarah’s creative flair and innovative perception has driven the formation of the ‘Safety In The City’ newsletter,<br />

which is a great way of keeping city-based employees and visitors up-to-date with health and<br />

safety information.<br />

Sarah is commended for demonstrating a genuine desire to improve safety awareness, culture and involvement.<br />

Teamwork<br />

– presented to an individual or team who work in a group to achieve the greatest possible results.<br />

The emphasis on teamwork ensures people within the group work effectively together to achieve their<br />

goal, bring out the best in each other and demonstrate a willingness to trust and respect one another.<br />

Sheetal Shetty<br />

Sheetal is renowned for completing tasks without any fuss and consistently providing invaluable support to the<br />

Major Projects group. She is always willing to assist with any project or address any issue.<br />

Her commitment to the team never waivers as she carries out additional tasks within the Projects Office during<br />

times when they have been under-resourced. Since her first day with the Major Projects group, Sheetal has been<br />

respected and relied on as a person who can be trusted to pull things together with little notice and always within<br />

the required timeframe.<br />

She is always ready to help field-based employees get up to speed on admin and office procedures. When asked<br />

for assistance she responds instantly and is always available to help others.


ISSUE 6 ENERGISE 21<br />

Innovation AWARD<br />

– presented to an employee who works to help make <strong>SP</strong> <strong>AusNet</strong><br />

more efficient and effective through innovative ideas or by taking<br />

a new approach that results in a tangible business benefit.<br />

Peter Rowley<br />

Peter is a lineworker from Sale who, for the past four years, has been<br />

researching, developing and implementing his own initiatives to improve<br />

the safety of manual handling and safety. Peter has produced several<br />

innovations for electricity distribution construction work, which directly<br />

reduces safety risks and improves productivity.<br />

Peter is congratulated and admired because of the way he often tinkers<br />

at home and returns to work with a prototype solution to a construction<br />

problem or doing construction tasks a better and often safer way.<br />

Just to name a few, Peter has developed a custom-made drill bit that<br />

assists lineworkers in replacing old cross arms with minimal force<br />

needed. This device has been approved by the Works Practice Committee<br />

and is now being used throughout the business, with the potential to be<br />

used throughout the industry.<br />

Peter, in conjunction with an external party, designed a custom made<br />

insulated attachment that is suitable for installing gas switches and<br />

transformers without encroaching clearances to live apparatus.<br />

This reduces outages, and increases the safety of the live-line crews<br />

carrying out such tasks.<br />

Peter is always striving to make the job safer, which is inspiring to all who<br />

have the pleasure of working with him.<br />

Managing Director’s AWARD<br />

– presented to an employee who consistently lives all the values,<br />

striving above and beyond their day-to-day role to engage and<br />

encourage their colleagues and work hard to achieve outstanding<br />

business outcomes.<br />

Barry Steers<br />

Barry is the East Region Network Safety and Environment Manager and<br />

is acknowledged for his passion to make the workplace safer for all<br />

employees, contractors and visitors and for being an outstanding advocate<br />

of <strong>SP</strong> <strong>AusNet</strong>’s missionZero safety objectives.<br />

Barry is well-respected by his peers and colleagues. He has worked<br />

tirelessly on developing a positive culture with the health and safety<br />

representatives to develop solutions, so as to empower our employees to<br />

resolve issues.<br />

Those who work with Barry’s commend his teamwork and integrity,<br />

noting he is a pleasure to work alongside and an inspiration to his<br />

colleagues and peers.<br />

Peter Rowley was not able to attend the Award Presentation night,<br />

but was presented his award by Site Manager Robert Prestidge (above).


22 ENERGISE ISSUE 6<br />

Trial participant’s can see how much energy each appliance uses.<br />

Customers the key<br />

to demand management<br />

CONSUMERS <strong>IN</strong> 2011 ARE AN EDUCATED<br />

BUNCH. VIA THE <strong>IN</strong>TERNET THEy HAVE THE<br />

ABILITy TO RESEARCH PRODUCTS, SERVICES<br />

AND VOICE THEIR OP<strong>IN</strong>IONS OPENLy THROUGH<br />

SOCIAL MEDIA. PRESSURES ON THE ECONOMy<br />

HAVE <strong>IN</strong>TENSIFIED THE DEMAND FOR VALUE-<br />

FOR MONEy PRODUCTS; AND ENERGy IS NO<br />

ExCEPTION.<br />

STRENGTHEN<br />

TRANSFORM<br />

EXTEND<br />

MODERNISE<br />

In the past, attitudes towards<br />

energy, specifically electricity,<br />

were pretty simple. Electricity was<br />

something taken for granted<br />

– an infinite resource. It was there<br />

when you wanted to switch your<br />

lights on or power your kettle for<br />

a cup of tea. But now, in today’s<br />

world, a growing number of<br />

consumers are thinking twice<br />

about these everyday activities and<br />

thinking much more about how<br />

much energy it takes to<br />

power appliances.<br />

Consumers previously haven’t<br />

had a simple way of measuring<br />

the energy used when performing<br />

everyday tasks in the home.<br />

But with the advent of energy<br />

management devices such as the<br />

‘In-home Display’ unit, technology<br />

is enabling consumers to be more<br />

informed and make choices about<br />

their energy behaviours.<br />

Managing capacity<br />

As an energy transmission and<br />

distribution business, <strong>SP</strong> <strong>AusNet</strong><br />

faces many challenges and<br />

opportunities in this electronicallydriven<br />

world. Consumers are using<br />

more appliances and equipment,<br />

and as a result demand more<br />

energy from our networks.<br />

However, this energy is not being<br />

drawn steadily throughout the day.<br />

Smart Networks Implementation<br />

Manager, Geoff Thorn says that a<br />

peak capacity curve is becoming<br />

sharper, with more demand being<br />

placed on our networks, in a shorter<br />

period of time.<br />

“Typically, this peak is seen when<br />

consumers return to the household<br />

and turn on multiple appliances<br />

at the same time, such as airconditioners<br />

and washing machines<br />

while also commencing to cook the<br />

evening meal,” he said.<br />

With more electronics making<br />

consumers’ lives easier, providing<br />

entertainment and performing<br />

previously manual tasks,<br />

consumers are relishing in this new<br />

technological age. But what would<br />

it mean if consumers were asked<br />

to switch off some of their gadgets<br />

during busy times<br />

<strong>SP</strong> <strong>AusNet</strong> is investing in<br />

improvements that make its<br />

networks smarter.<br />

“New technology such as the smart<br />

meter will enable consumers to see


ISSUE 6 ENERGISE 23<br />

<strong>SP</strong> <strong>AusNet</strong>’s Plug-In Hybrid Electric Vehicle.<br />

Summer Demand<br />

2000<br />

MWh<br />

1800<br />

1600<br />

1400<br />

1200<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

0:30<br />

1:30<br />

2:30<br />

3:30<br />

4:30<br />

5:30<br />

what time of day they are using the<br />

most of their energy,” Geoff said.<br />

“With the emergence of smart<br />

appliances, including Demand<br />

Response Enabled Devices<br />

(DREDs), householders have greater<br />

flexibility to manage their energy<br />

use,” he said.<br />

Consumer energy management<br />

technology will help informed,<br />

economic and environmentallyaware<br />

consumers by providing the<br />

data they need to understand and<br />

manage their electricity demand. If<br />

more flexible tariffs are introduced,<br />

consumers can use energy<br />

management devices connected<br />

to smart meters to manage their<br />

demand around peak and off-peak<br />

times. For instance, it may be<br />

cheaper to run a washing machine<br />

or clothes dryer during the day or<br />

late at night, when peak demand<br />

has eased.<br />

6:30<br />

7:30<br />

8:30<br />

9:30<br />

10:30<br />

11:30<br />

12:30<br />

Time<br />

13:30<br />

2002 2010<br />

14:30<br />

15:30<br />

16:30<br />

17:30<br />

18:30<br />

Consumers concerned about their<br />

carbon footprint should also be<br />

excited. With the knowledge gained<br />

from In-home Display kits, they<br />

can now see which appliances are<br />

the most energy-draining, enabling<br />

them to make choices about<br />

their use.<br />

Participating in trials<br />

<strong>SP</strong> <strong>AusNet</strong> is taking a proactive step<br />

in this increased consumer interest<br />

by conducting an In-home Display /<br />

Energy Management System (IHD/<br />

EMS) trial, with the goal of learning<br />

how consumers react to the<br />

knowledge of their power use.<br />

During July 2011, 20 employees<br />

launched the trial, with a further<br />

150 customers joining the trial in<br />

late 2011. The final phase of the<br />

trial will involve a total of 1000<br />

energy customers with the IHD/<br />

EMS equipment being delivered and<br />

installed in early 2012<br />

19:30<br />

20:30<br />

21:30<br />

22:30<br />

23:30<br />

The trial will be run over the next<br />

12 months, with the data from the<br />

trial being used to show trends<br />

in consumer behaviour around<br />

electricity use.<br />

<strong>SP</strong> <strong>AusNet</strong>’s Smart Networks<br />

Application Lead – Customer,<br />

Neil Webb explains, <strong>SP</strong> <strong>AusNet</strong> is<br />

looking to see if consumers use<br />

electricity differently with access to<br />

real time usage data they get from<br />

these devices.<br />

“During the trial, <strong>SP</strong> <strong>AusNet</strong> will<br />

survey participants via a third party<br />

to see what, if any, behavioural or<br />

attitudinal changes have occurred<br />

as a result having the In-home<br />

Display available,” Neil said.<br />

In addition to the In-home display /<br />

Energy Management System trial,<br />

<strong>SP</strong> <strong>AusNet</strong> is partnering with CSIRO<br />

and the Department of Transport<br />

in the Victorian Electric Driveway<br />

Program. The trial is focused on<br />

the impact of electric vehicles on<br />

an electricity distribution network;<br />

management of electric vehicle<br />

charging; and how the electric<br />

vehicles can be used as distributed<br />

system for storing power from the<br />

national grid or local sources and<br />

used by the homeowner<br />

as required.<br />

By charging electric vehicles<br />

outside the peak demand period,<br />

consumers will have the potential<br />

to save money if more flexible<br />

tariffs are adopted. This concept<br />

may also prevent the peak demand<br />

curve from sharpening; meaning<br />

that consumer investment in<br />

higher-capacity networks<br />

may be delayed.<br />

The energy movement<br />

While energy management<br />

technology is still being adopted by<br />

the mainstream, it is clear that the<br />

movement is gaining momentum,<br />

with an increasing number of<br />

energy saving devices available on<br />

the market. The focus on the cost<br />

of delivery energy is further fuelling<br />

this debate.<br />

Consumers are changing. They are<br />

interested in energy and how it is<br />

generated, transported, and used.<br />

<strong>SP</strong> <strong>AusNet</strong> is poised to meet these<br />

changing customer expectations by<br />

installing smart networks and smart<br />

meters that support our consumers’<br />

quest for knowledge. The potential<br />

adoption of Time of Use tariffs and<br />

demand management technology<br />

will further support our quest<br />

to spread the load and manage<br />

capacity effectively.


STRENGTH TRANSFORM<br />

EXTEND MODERNISE<br />

Optimise the life of your assets and<br />

enhance their reliability with our<br />

inspection solutions.<br />

Select Solutions offers tailored asset inspection<br />

services involving the inspection and reporting on<br />

the condition of utility assets. We provide total<br />

end-to-end solutions in:<br />

• Developing asset inspection plans<br />

• Undertaking field-based inspection activities<br />

• Providing open access to data on a spatial<br />

platform (GIS)<br />

• Processing inspection data and reporting on<br />

condition of assets<br />

• Providing subsequent work packages for the<br />

immediate rectification of defects<br />

• Stakeholder management<br />

• Safety and compliance auditing and reporting<br />

We offer a variety of inspection data collection and<br />

processing methods including Unmanned Aerial<br />

Vehicles, HiMast, ground based inspections and<br />

helicopter inspections utilising our <strong>SP</strong>ANView system.<br />

Select Solutions is a leading provider of specialist<br />

end- to-end services for utilities, government, energy<br />

and water retailers and commercial/industrial<br />

customers.<br />

As a division of <strong>SP</strong> <strong>AusNet</strong>, we share similar values in<br />

Safety, Passion, Teamwork, Integrity and Excellence.<br />

With over 300 staff in New South Wales, Victoria and<br />

Queensland, Select Solutions is geared up to deliver<br />

innovative, efficient and cost effective solutions.<br />

Asset Solutions<br />

Data & Measurement Solutions<br />

Technical Solutions<br />

Telecommunication Solutions<br />

Utility Solutions<br />

For more information about Select Solutions phone 03 9695 6000 fax 03 9695 6666 web www.select-solutions.com.au

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