Annual Planning Report 2012 - Transpower

ForewordForeword to the Annual Planning Report 2012I am pleased to introduce this seventh Transpower AnnualPlanning Report (APR).Transpower is the owner, operator and planner of the NationalGrid. The National Grid comprises the high voltage electricaltransmission system that stretches across both North and SouthIslands, connecting generation sources to local substations servingrural and urban customers. Importantly, it also facilitates thecompetitive wholesale electricity market which underpins thepricing of electricity to all New Zealanders.The APR is one of our initiatives to make our planning processesmore transparent for all interested parties. Transpower is adopting an ‘open book’approach to transmission planning. We think this is appropriate for a regulated entity withsuch an important role to play in the economic and social wellbeing of New Zealanders.When we first started publishing the APR in 2006, we were at the start of a significantcapital reinvestment programme – a hurdle we needed to climb to ensure NewZealanders continued to enjoy the benefits of a reliable and secure transmission network.Six years later, our capital investments are peaking – all our major projects are targetingcompletion over the next two years.For the future, we put our stake in the ground with release of Transmission Tomorrow, Itrecognises that new build is only part of the answer, and we can and must do more tooptimise our investment in the existing network. Already, we are trialling variable lineratings on some core transmission lines, and we’re also promoting the use of demandsidemanagement as a means of deferring transmission investment.The APR continues to identify issues on the investment horizon that may ultimatelyrequire a transmission solution. As in previous years, we have worked to improve thequality and layout of the information provided to be more intuitive for the reader.We continue to look for ways of enhancing the value of the APR to all our stakeholders.We will also make greater use of information from customers to form our views ondemand foreacast and generation possibilities to ensure the APR is the primary gridplanning document for the industry.Dr Patrick StrangeChief ExecutiveMarch 20122012 Annual Planning Report © Transpower New Zealand Limited 2012. All rights reserved. i