FUTURE ENERGY SOLUTIONS - SP AusNet

STRENGTHEN TRANSFORM EXTEND MODERNISEISSUE 5 SPRING 2011URBAN GROWTHPushing the boundaries.SELECT SOLUTIONSTapping into new markets.SP AUSNET MAPS ITS ICT STRATEGY FOR 2012-2016Taking a byte of the Information and CommunicationsTechnology hamburger.FUTUREENERGYSOLUTIONS

2ENERGISE ISSUE 5STRENGTH TRANSFORMEXTEND MODERNISEA messagefrom NinoThe energy industry is evolvingat a fast rate. Customer demandgrowth, new energy sources, newtechnologies and stakeholderexpectations are shaping whatthe future will look like for ourindustry. SP AusNet wants to beready to meet the challenges andto grasp the opportunities thischanging landscape will offer.In this fifth edition of ENERGISE,we highlight some of the areaswhere the business is focusingon the future.As always, underpinning all thisactivity is safety. missionZero,our safety vision and strategy, isprogressing to the next phase ofits rollout within our business,as outlined in the article “On amission to zero”. missionZero,both now and into the future,underlines safety as our numberone priority. At the same time aswe progress on our missionZerojourney, some recent seriousnear-misses in the businesshave served to underline the keyobjective that everyone arriveshome safely.In mid July, SP AusNet held itsAnnual General Meeting. Thiswas a great way to engage withour securityholders and outlinethe strong financial performanceof the company, our strategy andplans for the future.At the time of writing, we arewitnessing turmoil in some ofthe world’s major economies.Clearly these events haveimpacts on financial markets,which we closely monitor. Ourstrong financial fundamentals,underpinned by ‘A’ range creditratings mean that we are wellplaced to navigate any turmoiland maintain investment inour networks.As outlined in the article on urbangrowth, our networks are uniquelyplaced in some of the fastestgrowing urban corridors in thecountry. Investing and planningfor this growth is a central focusof our activity, to ensure that wedeliver for our growing customernumbers and do so efficiently,reliably and safely.Key to the success of our growthwill be a continued commitmentto our customers. Our closeinvolvement with our customersand their communities is coveredin this issue of ENERGISE.Relationships with our customerswill also evolve over time, as wecontinue to expand into areasbeyond our traditional networksbusiness, for example intobusiness-to-business relationshipsthrough Select Solutions.Innovation will also help us tounlock opportunities, to gain anunderstanding of what the futureenergy landscape could looklike. Energy prices are alreadyhigh on consumers’ radar andwe anticipate consumers takinggreater control of their energy use.SP AusNet’s recently-launchedEnergy Experience facility(or “Barry’s House”, see page 11)is helping us to help customersdo just that, as well as sharing thepotential of the new technologiesbeing trialled with employees andother key stakeholders.I hope you enjoy this issue ofENERGISE.Nino Ficca,Managing Director SP AusNet

8 ENERGISE ISSUE 5Plumbers Jake Hodgson, Susie Fox, Hayden Grattidge and Andrew MacPherson ready for action.Select plumber Hayden Grattidge.Select Solutions tapping into new marketsSelect Solutions is surging ahead with agreater water services capability, afterSchultz Plumbing officially became partof the Select business in September 2010.STRENGTHENTRANSFORMMODERNISEEXTENDSince the acquisition andintegration of Schultz Plumbinginto Select Solutions, the businesshas moved from strength tostrength, winning key watercontracts in both Victoria and NewSouth Wales.Select Solutions General ManagerJohn Kelso says this is an excitingphase for Select, as they worktowards becoming the leadingplayer nationally in the area ofwater meter reading, connections,replacement and specialistmaintenance services.“With Select Solutions nowtapping into the water market andsolidifying ourselves as a seriousplayer in the water asset serviceand maintenance arena, we trulyare a one-stop-shop, providingspecialist water, electricity and gasservices,” John said.With the integration of the Schultzbusiness, the Select Solutionswater service offering nowincludes:• water metering services;• water service connections;• general and emergencymaintenance and plumbingservices;• leak detection services;• CCTV inspections;• fire service installations;• backflow prevention services;• water efficiency audits; and• water conservation installationsand retrofits.The future is looking bright forSelect Solutions, with a goalof increasing its existing waterclient base this year by offeringwater utilities a seamless watermanagement service as well asexisting energy managementclients the provision of a watermanagement service.John said, by combining Schultzwith Select’s existing operations,they have created a strongerbusiness with significantly morescale and scope to extend theirservice offerings interstate.Select Solutions now proudlyboasts an additional 70 qualifiedplumbers, with 11 apprentices and40 office employees, positioningthe company to service anycontract, large or small.Being part of a large, wellestablished utility business, SelectSolutions water managementservice is well-equipped to offerthe best in technical and customerservice to its water customers.With a passion for safety andexcellence in service deliveryand supporting its customers toachieve their business objectives,Select Solutions is poised to takeoff in the water market.Select Solutions will be moving toa new headquarters at Preston, inMelbourne’s north later this year.The move will see groups fromthe company’s offices in Briar Hill,Freshwater Place and Bundoorajoin forces at the recentlyrefurbishedbuilding.

ISSUE 5 ENERGISE 9Testing the New South Wales MarketSelect Solutions has made significant traction in the NewSouth Wales (NSW) market, entering a two-year contract withelectricity generator Delta Electricity, providing high voltage(HV) testing at Delta’s Mt Piper and Wallerawang PowerStations.The contract includes providing state-of-the-art HV testing onDelta’s generators, motors and transformers. Earlier this year,Select Solutions was instrumental in assisting Delta in twomajor outages, which helped secure another NSW contractwith Alstrom Grid, testing the 575MVA generator transformerunit during the Wallerawang outage - a first for the NSWtechnical team.Select Solutions has also secured a contract with NSWtransmission operator TransGrid to test HV plant at TransGrid’sexisting sites. To date, the team has tested several large HVtransformers and numerous HV metering voltage transformersaround NSW.Select Solutions Business Unit Manager Roger Riley attributesthe success to the hard work of the NSW team.“TransGrid and Delta are foundation contracts for us and giveus a platform for growth,” Roger said.“What we do best is test to customers’ specification andprovide superior service and expertise,” he said.Teamwork seals the deal forCorrosion ProtectionContinuing its service expansion, Select Solutions has alsorecently introduced cathodic protection to its TechnicalServices offering.The team is led by Gas and Water Manager Brian Jonesand Corrosion Protection Manager Ali Kouklan, who have acombined 35 years in the energy industry.“It is exciting to see the establishment of the corrosionprotection service offering through Select Solutions,” Ali said.“The service offering is a direct result of the great technicalrelationships between SP AusNet’s Integrated NetworkServices, Networks Strategy and Development and SelectSolutions teams,” he said.Trial tests have already begun for cathodic protection throughthe Supervisory Control and Data Acquisition (SCADA) systemon SP AusNet’s gas network and a plan is underway to crossskillemployees within the gas and water group.Select Solutions will now seek to expand its already growinglist of clients by marketing the service to appropriatebusinesses, with initial interest from major Australian gas andwater providers.It’s a busy time for the team, who also presented to theAustralian Electrolysis Committee (AEC) seminar in July inLaunceston.And the pace isn’t slowing for the team, who are expandinginto corrosion protection for electricity transmission towerfootings, commencing the largest corrosion protection capitalworks program for SP AusNet as well as recruiting for a TraineeCorrosion Technician.

10 ENERGISE ISSUE 5A DAY IN THE LIFEAndrew Dodds,AMI InstallationAuditor9:00 aM2:00 PMQuick 15 min break to rechargewith my morning cup of coffee.9:15 AMCommence second briefingsession for the morning withanother six line workers.Go through the same processand overview to ensureeveryone is comfortable withthe deployment process.Leave site in Boronia and headback to Lilydale, during traveltime discuss with Dale the variousaspects of the smart meter rolloutand how the rollout is startingto incorporate BAU businessgroups. I also explain to Dale thecommunications and processesassociated with the smartmeter rollout.2:30 PMWith more than 20years experiencein the electricalindustry, and as aqualified A-Gradeelectrician andtype 2 line worker,Andrew Doddsdecided he wantedto become involvedwith the deploymentof the AMI rollout.In February 2010,Andrew joined theAMI deploymentgroup within SelectSolutions as an AMImeter installationauditor and admitsthe role is diverse,where no two daysare ever the same.7:00 AMArrive at the Lilydale depot.Prepare meeting room forpresentation of AMI ProgramBusiness As Usual (BAU) meterexchange briefing to Tenix lineworkers.Meet and welcome a newemployee, Dale, who wassuccessful in applying fora recently-advertised AMIInstallation Auditor role.7:30 AMBegin briefing. The first groupconsists of 15 line workers.Briefing aims to provide a quickoverview of AMI smart meterdeployment process. Other itemsthat are covered in the briefinginclude introduction to the typesof smart meters being rolled outand helping to explain the smartmeter display screens. Schematicdiagrams for meter wiring, faultdiagnostics information is alsoexplained along with antenna andcommunications card removal andreinsertion information. Finishbriefing with frequently askedquestions about smart meters.11:00 AMFirst opportunity to sit down,login and check emails. Filterthrough emails and respond toqueries accordingly. Check andupdate diary to remind me ofengagements and appointmentsthroughout the day. Also firstopportunity to show Dale aroundLilydale depot and introduce himto work colleagues.12:00 PMHead out to Boronia with Dale forappointment with service provider.Meet up with meter installer, tocomplete field audit while installercompletes a consolidation meterexchange (a consolidation meterexchange requires the installerto remove three meters andconsolidate into one Type 420Smart Meter).Also complete a check ofunderstanding for consolidationmeter exchange with installer. Thecheck of understanding is a seriesof questions that I ask the installerto gauge his understandingtowards the work he is performing,ie. safety requirements, testingprocedures, installation processfor consolidation meter exchanges.Arrive back at Lilydale. Arrangeappointment with a customer whorequires further explanation of adefect issue identified throughthe smart meter rollout. ProvideDale with a brief overview ofinstallation auditing procedure andwhat requirements the businessneeds him to complete to enablehis access to business policiesand procedures. Plan the rest ofthe week to introduce Dale to allaspects that his new rolewill cover.3:30 PMSite visit with a customer whowants clarification on a defectissued. I explain to the customerwhat options they have availablein order to ensure their installationis compliant to complete themeter exchange. Solutions arediscussed that offer all parties asatisfactory result.4:00 PMTouch base with DeploymentManager to see if there are anyurgent issues to deal with oranything outstanding that requiresattending to in the next coupleof days before commencing myjourney home.

ISSUE 5 ENERGISE 11G’day Barry!!Checking energy consumption is a ‘hands-on’experience at Barry’s house.Say G’day to BarryThere’s a new guy in town at SP AusNet’s Melbourneheadquarters, and he’s shaking up how you think aboutenergy use in the home and your role in the overallenergy ecosystem.STRENGTHENTRANSFORMEXTENDMODERNISEYou might describe Barry as anearly-adopter of technology, fittinghis home with gadgets and gizmosto help him efficiently managehis electricity use and reduce hiscarbon footprint.More than 350 SP AusNetemployees and 150 externalvisitors have already visited Barry,who engaged some talentedtechnical tour guides fromSP AusNet’s Smart Networks teamto demonstrate how he has madehis energy use smart, and whathe expects to be able to do in thenear future.One employee commented, “I wasjust blown away by the technologythat is already out there ANDaffordable! I thought this was allfluffy futuristic stuff.”Barry proudly shows off thebattery storage he uses to captureenergy from the sun to power hishome - earning him the title of“pro-sumer”!He could talk for hours abouthis user-friendly home energymanagement system, which camein handy recently when he forgotto push the ‘away’ button as heleft home and was able to activateit from his iPhone on his way tothe airport, powering offselected appliances.While we’re on the subject,67 per cent of post-tour surveyrespondents have indicated theywould like the benefits of thehome/away button in their ownhome, while 59 per cent are keento have tools to control homedevices remotely.For SP AusNet, ‘Barry’s House’is a key part of the company’sfive-year strategy to modernisethe business to provide customerswith superior, innovative andsustainable solutions. It is atangible output from our SmartNetwork strategy that outlinesfuture opportunities forour business.The energy experience facility islocated on level 29 at FreshwaterPlace, Southbank and is aimedat helping us to understand howwe can leverage technologiesto enable consumers to bettermanage energy use, as well asexplain our role to employees andother stakeholders. Tour Guidesexplain to visitors SP AusNet’srole and achievements in makingthe energy eco-system smarter,for example, by improving thereliability of electricity throughself-healing network technology.The Smart Networks team hasalso recently installed webcameras in Barry’s home andare looking into the possibility ofwebinars filmed at the facility,bringing the experience to morepeople, in more locations.To book a guided tour of Barry’shouse, visit www.iregister.sp-ausnet.com.au or email theSmart Networks team at energy.experience@sp-ausnet.com.au.

12 ENERGISE ISSUE 5Tracking our performancescorecard: FY 2011/12 – JUNESince launching our growth STEM strategy in 2010, SP AusNet has aligned how we measureour goals and communicate progress to employees. The diagram below tracks allcorporate targets and clearly shows how they relate to our strategy of Strengthening,Transforming, Extending and Modernising our business. Employees are encouraged tolook out for these posters on noticeboards to keep track of the company’s progressthroughout the year.CategoryKey Performance IndicatorsSafety and EnvironmentRecordable Injury Frequency RateNumber of Network Incidents with Potential Fire StartFinancial and GrowthEBITDA ($M)Return on Equity (%)Credit MetricsSelect Solutions External EBITDA ($M)Customer Service Regulated Customer Satisfaction (%)Select Solutions Client Satisfaction Index (%)Network PerformanceElectricity Unplanned System Average Incident Duration Index (USAIDI) (CY 11 mins)Electricity Transmission AER Performance Service Target PerformanceIncentive Scheme (STPIS) (CY11%)Gas Unplanned System Average Interruption Duration Index (USAIDI) (CY 11 mins)Performance Efficiency Total Controllable Operational Costs per Budgeted FTE ($’000)Capital efficiency of completing works program (%)ICT Application Uptime Tier 1 (critical) (%)ICT Application Uptime Tier 2 (BAU) (%)People Voluntary Turnover (%)

ISSUE 5 ENERGISE 13STRENGTHENTRANSFORMEXTENDMODERNISEYear to dateActualPerformance Versus TargetYear to dateTarget10.5 8.5ReportingPeriod12 monthsrolling average1,268.0 1,323.0 YTD MonthlyYTD Status STEMAPR MAY JUNOn TargetOn TargetYTD MonthlyYTD MonthlyA Range A Range Monthly5.6 5.4 YTD Monthly84 87 Monthly78 80 Monthly73 8468.2 40.50.61 0.46Result calculatedMarch 2012On TargetResult calculatedMarch 2012CalendarYTD MonthlyCalendarYTD MonthlyCalendarYTD MonthlyYTD MonthlyYearly99.8 98.0 YTD Monthly100.0 95.0 YTD Monthly1.2 1.5 MonthlyOn or beating targetBelow target but expected to be favourableat year endBelow target and risk of being unfavourableat year end

14 ENERGISE ISSUE 5Group Manager People and Capability, Shelley Cussen.Energising our TalentThese days, we hear organisations talkabout talent management, strategiesand pipelines. ENERGISE caught up withSP AusNet’s Group Manager People andCapability, Shelley Cussen, to learn moreabout how the company is managing ourgreatest source of energy – the talentof its people.STRENGTHENTRANSFORMEXTENDMODERNISEenergiseTalent management soundslike something you’d hear inan actor’s studio. What does itmean in the business world andwhy is it important?Talent management is a buzzword for something companieshave been doing for years andthat’s consciously and deliberatelyplanning and implementingstrategies to attract, develop andretain people with the aptitudeand abilities to meet current andfuture organisational needs. Putsimply, our people are literally ourgreatest assets, without them wecan’t get far at all. If you think ofour facilities and equipment like aperformance car, it can look good,and you can know that it can dogreat things, but without a driverand mechanic and others to lookafter it properly and make it dowhat you want it to do every timeand all the time, then it’s really notthat much use.energiseIs there anything new abouthow we’re managing talentthese days?In some ways it’s the same, in thattalent management requires linemanagers to understand humanresource functions, as they relateto their business, and plan theirworkforce for the future. Whatis different is that we want ourtalent management strategy:to be integrated and based ona common set of principlesacross the company; to be morevisible to and encompass allemployees; and to promote theunderstanding that developmentcovers a large range of optionsother than job promotion. Forexample, development of ourtalent may include skills training,project experience, mentoring orsecondment to a new role withinthe business.energiseDoes talent management focussolely on leadership capability?SP AusNet’s talent strategy is allabout ensuring the right talent isavailable for leadership roles aswell as every technical discipline– for example engineering roles.SP AusNet recognises we have atremendous pool of technical talentcurrently within the business. Thistalent must be nurtured and futuretechnical experts developed toensure innovation and excellencecontinues in technical fields.energiseHow will employees getinvolved?The most obvious way is foremployees to actively participatein discussions with their managerabout performance and careerdevelopment. Employees shouldrecognise that these discussionsare two-way and should comeprepared to discuss theirachievements, interests, plansand other relevant information.To me it’s up to each individual– it’s your life, your career, soget involved.

ISSUE 5 ENERGISE 15Benalla Crew Leader Craig Cheetham trials the motion tablet PC.Creating ‘Smartfields’In the past few months, IntegratedNetwork Services’ (INS) work-group andcrew leaders have been trialling newhigh-tech devices as part of SP AusNet’sSmartField project.EXTENDSTRENGTHENTRANSFORMMODERNISEThe project aims to improveand modernise the way our fieldworkers access information andreplace paper-based processes toenhance efficiencies andprocess control.INS General Manager – Operationsand Services, John Azaris, takesus through the project.“Modern devices, like smartphones, are being used in ouroffices to improve the way we dobusiness. Therefore, it’s importantour field workers have access totechnologies that assist in makingtheir work easier and moreimportantly, safer,” John said.“We’ve already put devices outthere with some basic electronicforms to see what we can achievetogether with our field teams.So far, we’ve had some great ideascome back from our field teamssuggesting further improvements,”he said.The most common devicebeing tested in the field is themotion tablet PC – a lightweightand durable field computerwhereby users can access, enterand transmit data to multiplerecipients, take photos anddownload into a document, etc.INS Manager - Projects WorksManagement Group StationServices, Reuben Jong, said:“The tablet PCs will allow thefield to undertake their routinemaintenance activities moreefficiently and safely throughstreamlining their job dispatch,preparation and recordskeeping processes.“Traditional paper-based datagathering will be replaced bye-forms that can be convenientlyemailed and stored to provideeasy access for all relevantstakeholders,” he said.Reuben also said that INS hasbeen hosting workshops withparticipating field workers triallingthe devices to gather feedbackand develop a suite of e-formsthat cover a range of applications.“Through our ongoing dialoguewith field workers and interactionwith other areas of the business,we are now fine tuning a range ofe-forms that will be available onthe tablet PCs,” Reuben said.For example, field workers willbe able to access Job SafetyAssessment forms (JSA), whichhelp assess and deal with therisks and hazards of each job.“Feedback from many of our fieldstaff is that they are very excitedabout the capabilities of this newtechnology and the potential thatit has to greatly improve theircurrent processes, making iteasier to undertake their day-todaytasks,” Reuben said.The next stage of the project is tofinalise the e-forms and begin toroll them out in coming months.

16 ENERGISE ISSUE 5On a mission to zeroIn April 2011, SP AusNet launched our newsafety vision and strategy, missionZero,with a stop for safety.STRENGTHENTRANSFORMEXTENDMODERNISEMore than 1,500 employees andcontractors stopped work across36 workplaces for importantteam discussions about safety intheir workplaces. This companywideevent marked the start ofa major and enduring employeeengagement initiative to deliverand sustain a step improvementin our safety culture andperformance.Success of this long-termtransformational safety initiativerequires strong, sustainedleadership accountability andvisibility, at all levels, at all times.Since the launch, a SafetyLeadership Program hascommenced, providing a ‘toolkit’for managers to successfullyexecute missionZero and focusingon leadership and communication.The program is supported by asafety portal to enable individualsto input personal safety objectivesand for managers to trackprogress.Another key safety initiativeimplemented as part ofmissionZero is the release of aset of refreshed safety nonnegotiables.Posters are nowon display across all SP AusNetdepots, setting clear expectationsabout non-negotiable principlesacross all three SP AusNetnetworks.Shortly after the missionZerolaunch, SP AusNet’s EmployeeHealth and Wellbeing Programcommenced. The program isaimed to enhance engagementby empowering employees toultimately take responsibility fortheir own health and wellbeing,which will have a direct impacton employees’ work andhome performance.These initiatives aim to setclear expectations about whatis acceptable safety behaviourmissionZeroin our workplaces and providethe necessary training, tools andinformation to ensure everyoneat SP AusNet successfully workstogether to achieve missionZero.Though missionZero is in its earlystages, all indications are positiveand we are confident of achievingour targets.missionZero is built on four strategic foundations of safetyleadership, safe behaviour, safe work environment and safetysystems and measurement.This strategic focus is designed to deliver missionZero’s vision:zero injuries to our people, contractors and visitors; zerotolerance of unsafe behaviour and acts; zero compromiseon safety; and zero impacts for our families and communities.

ISSUE 5 ENERGISE 17My safety commitment: Alistair ParkerEnergise spoke with Director Regulationand Network Strategy Alistair Parkerabout his safety commitment, followingthe launch of missionZero in April.energiseWhat is your safetycommitment?In my early 20’s, I had to tell mygrandfather that a family memberhad died. There was nothingabout the situation that I couldhave changed to prevent thatperson’s death, but it was still avery difficult experience. Aroundthat time, I saw unsafe situationsat work that I knew I could havesome influence over, which couldpossibly have resulted in someseriously injured people. I knewthat if I didn’t get involved andchange things, I could find myselfin a situation where I would bedelivering bad news to employees’families, knowing I could havedone more.As an SP AusNet employee andleader, I have a commitment tosystemic safety changes thatwill prevent any family memberor person from being affected inthe way my grandfather and ourfamily were.energiseHow has missionZerochanged things?If you had asked me a month ago,I would have said ‘yes, I’m a goodsafety leader’. With the launchof missionZero, I’ve completeda safety leadership course andhad a mirror held up to reflect myperformance as a safety leaderand I’ve realised there’s a lot ofroom for improvement. There’sa degree of rigour expected frommanagement, in terms of settinggoals and standards, holdingpeople to account and developingemployees. As a manager, I wasconfident that I was leading myteam in those areas, but I hadn’trealised the same was expectedin terms of safety. It’s been a realeye-opener for me. Now I’ll beasking my direct reports ‘whereare you at as a safety leader?’and encouraging everyone tomake time for it.energiseWhat does safety mean forpeople in a corporate setting?A lot of people don’t takeevacuation drills seriously, but Iencourage a real commitmentto them. While the chance of aserious event or fire happeningin the building is quite small,the consequences are high.Evacuation drills are the onlyway to prepare for such events,so it’s absolutely necessary toset an example for my team andother teams. How quickly we canget out of the building if such ascenario eventuated, is a matterof life and death. In the case ofthe September 11 attack, peoplewere still sending ‘business asusual’ emails 45 minutes after thefirst plane had hit the building.Complacency can have direconsequences.

18 ENERGISE ISSUE 5Taking a byte of the hamburgerWith a more customer-oriented approach than ever before, SP AusNet’s Informationand Communication Technology Division recently took to the ‘streets’ to get somedirect feedback from its customers – SP AusNet employees – which has fed into a newICT strategy for 2012 to 2016.STRENGTHENTRANSFORMEXTENDMODERNISEFollowing the appointment ofAsh Peck as General ManagerInformation and CommunicationTechnology (ICT) in April 2010,an ICT priority ‘house’ wasestablished with the focus toimprove customer service andsimplify technology withinthe business.Ash said it was essential to talk tocustomers to make sure they werebenefitting from the changes thathad been made and were realisingall the benefits.“During May and June, membersof the ICT team went on aroadshow around SP AusNet’swork sites, to provide tutorials inthe new systems, allow peopleto provide their thoughts on theimprovements so far and givethem a sneak peek of what’s tocome in the next 12 months,”Ash said.More than 500 employeesattended the roadshows, withthe feedback overwhelminglypositive. Sixty per cent ofattendees said the roadshowsmet their expectations in termsof being helpful and 40 per centsaid the roadshows exceeded theirexpectations. Examples of someof the feedback received included:“It was great to see themodernisation of our business.”“At future roadshows, I’d like tosee similar themes, with new andupcoming projects and technologyshowcased.”“The roadshows were great to putfaces to the ICT group members.”Ash says the feedback wasinformative – and always welcome- and something ICT had beenable to incorporate into thedivision’s new strategy.