power people - TransGrid

power people
TransGrid
annual reporT 2009
successful business
World-class electricity transmission
socially responsible
high level expertise
efficient, safe, reliable

The Hon. Eric Roozendaal MLC The Hon. Joe Tripodi MP
Treasurer Minister for Finance
parliament House Minister for infrastructure
Macquarie street Minister for regulatory reform
sYdneY nsW 2000 Minister for ports and Waterways
parliament House
Macquarie street
sYdneY nsW 2000
31 october 2009
dear shareholders,
We have pleasure in submitting to you the TransGrid annual report 2009 for presentation to parliament. The annual report includes
the income statement for the year ended 30 June 2009 and the Balance sheet as at that date certified by the auditor-General of
new south Wales.
The annual report was prepared in accordance with the requirements of section 24a of the State Owned Corporations Act 1989
and the Annual Reports (Statutory Bodies) Act 1984 and reporting regulations issued by new south Wales Treasury.
Yours sincerely
Mr Bruce Foy Mr Kevin Murray
Chairman Managing director
meeting stakeholder + community expectations
reliable poWer supply
strong technical excellence
training future leaders
planning for the future
contents > TransGrid annual reporT 2009

conTenTs
2 About trAnsGrid
8 HiGHliGHts And CHAllenGes
16 CHAirmAn’s And mAnAGinG
direCtor’s review
18 PlAnninG A Future network
23 buildinG sustAinAble,
world-ClAss inFrAstruCture
30 drivinG CHAnGe
tHrouGH innovAtion
Cover
Daniel Burn,
Graduate Engineer
33 mAkinG environment And
Community A Priority
36 tAPPinG into our Community
40 PromotinG our PeoPle’s
CAPAbilities
53 CorPorAte GovernAnCe
71 2008/09 FinAnCiAls
104 index
106 GlossAry
riGHt
Sophie Dowling,
Graduate Engineer
TransGrid annual reporT 2009 > Contents 1

abouT TransGrid
our ProFile
TransGrid is the owner, operator and manager of one of the
largest high voltage transmission networks in australia, connecting
generators, distributors and major end users in new south Wales.
our people play a critical role in maintaining our strong technical
excellence, ensuring that we meet stakeholder and community
expectations for a reliable power supply.
toP leFt
Charles Hitchen,
Graduate Engineer
meetinG stAkeHolder + Community exPeCtAtions
reliAble Power suPPly
stronG teCHniCAl exCellenCe
trAininG Future leAders
PlAnninG For tHe Future
toP riGHt
Michael Stemmer,
Tradesperson
2 About trAnsGrid > TransGrid annual reporT 2009

GenerAtinG sourCes
TransGrid’s network is interconnected
to Queensland and Victoria, providing a
robust electricity system that facilitates
interstate energy trading. The nsW high
voltage transmission network is the hub of
the national electricity Market, serving the
largest state in the market.
TransGrid’s shareholder, the nsW
Government, has a set of objectives which
include an expectation that TransGrid fulfils
its role in the planning, development and
management of the high voltage network.
riGHt
Gavin Wood,
Substations Grid Officer
trAnsGrid’s network
TransMission line and
subsTaTion sTrucTures
TransGrid is a commercially focused
organisation delivering reliable electricity
transmission services. The large majority
of TransGrid’s revenue is determined by
the australian energy regulator (aer).
TransGrid’s board and management
support an environment that encourages
accountability amongst all employees to
deliver a service that is in the best interests
of shareholders, the community and our
stakeholders.
eleCtriCity
suPPliers
(enerGy ausTralia,
inTeGral enerGy,
counTry enerGy,
acTeWaGl)
FACtories
Homes
businesses
TransGrid annual reporT 2009 > About trAnsGrid 3

our network
Redcliffs
Broken Hill
Buronga
Balranald
Deniliquin
OPERATING SYSTEM VOLTAGES
500kV Transmission Lines
330kV Transmission Lines
220kV Transmission Lines
132kV Transmission Lines
66kV Transmission Lines
330kV Underground Cable
Customer Exchange Point
Interstate Exchange Point
500kV Substations
330kV Substations
220kV Substations
132kV Substations
Griffith
Darlington Point
Coleambally
Finley
4 About trAnsGrid > TransGrid annual reporT 2009
Yanco
Murrumburrah
Avon
Dapto
Marulan
Wagga
Yass
Kangaroo Valley
132
Burrinjuck
Uranquinty
Tumut
Wagga
330
Gadara
Lower
Tumut
Canberra
Capital Wind Farm
Queanbeyan
Jindera
ANM
Upper Tumut
Wodonga
Albury
Hume
Dederang
Parkes
Forbes
Guthega
Beryl
Wellington Bayswater
Molong
Orange
Cowra
Murray
Snowy Adit
Munyang
Panorama
Cooma
Moree
Narrabri
Gunnedah
Tamworth 132
Muswellbrook
Mt Piper 132
Mt Piper 330
Wallerawang
Dumaresq
Inverell Glen
Innes
Tamworth 330
Liddell
INSET
Bulli Creek
Armidale
Tenterfield
Koolkhan
Raleigh
Nambucca
Kempsey
Port Macquarie
Taree
Mudgeeraba
Lismore
Coffs Harbour

65
connecTion poinTs
To GeneraTors across
THe sTaTe
our network
TransGrid’s network is made up of:
> 12,445 kilometres of high-voltage
overhead transmission line and
underground cable operating at
voltages up to 500kV.
> 85 substations and switching stations.
> 65 connection points to generators
across the state.
> 354 distributor and direct customer
connection points.
> 6 interconnectors to Victoria and
Queensland’s transmission network.
The energy delivered via TransGrid’s
network is used by more than three million
households and businesses in nsW and
the acT, as well as users in other states.
interconnections with other states give
customers access to imported power
during periods of high demand, which
helps to promote market benefits through
competitive pricing.
TransGrid’s head office is based in sydney’s
cbd and we operate at various sites
around nsW, including Horsley park,
orange, Wagga Wagga, yass, Tamworth
and newcastle.
12,445km
HiGH VolTaGe oVerHead
TransMission lines +
underGround cablinG
354
disTribuTor and
direcT cusToMer
connecTion poinTs
Wallerawang
Regentville
Bayswater
Kemps
Creek
Ingleburn
Yass Avon
Vineyard
INSET
Sydney West
Liverpool
Sydney North
Sydney
South
Dapto
85
subsTaTions +
sWiTcHinG sTaTions
6
inTerconnecTors To
VicToria + Queensland’s
TransMission neTWorks
Sydney East
Haymarket
Beaconsfield West
Liddell
Newcastle
Tuggerah
Eraring
Vales Point
Munmorah
Waratah
West
Tomago
TransGrid annual reporT 2009 > About trAnsGrid 5
OPE

our Customers
TransGrid plans, develops
and manages the network
to ensure the services
our customers expect will
continue well into the future.
TransGrid’s customers include:
> The distribution network service
providers (dnsp’s) that distribute power
to the majority of the people of nsW and
the acT (actewaGl, country energy,
energy australia and integral energy).
> businesses that generate electricity
(delta electricity, eraring energy,
Macquarie Generation, snowy Hydro
limited, origin energy).
> large industrial consumers of electricity
that are directly connected to TransGrid’s
high voltage network.
> businesses connected through interregional
interconnectors.
> potential new customers, who have
approached TransGrid and have made
an application to connect to our network.
Above (clockwise from top left)
Jeffree Cairns, Technical Support Engineer
Darren Ngo, Managing Director’s Scholarship holder
Sophie Dowling, Graduate Engineer
Kevin Murray, Managing Director
6 About trAnsGrid > TransGrid annual reporT 2009
our stAkeHolders
TransGrid engages
a wide range of
stakeholders in the
delivery of its multi-billion
dollar capital program.
These stakeholders include shareholding
ministers, the australian energy Market
commission (aeMc), the aer, major
customers, media, the community,
government departments, other Transmission
network service providers and other national
electricity Market participants.
TransGrid appreciates that the development
of relationships with our stakeholders is
an essential activity that enables both the
organisation and its stakeholders to achieve
common goals. TransGrid’s sponsorship
programs recognise and reflect community
values and support sustainable community
development.
TransGrid understands the importance of
communicating with stakeholders in a way
that informs them about our business.
TransGrid promotes a workplace that
rewards achievement, encourages
commitment and promotes diversity,
which empowers our people to
achieve excellence.
our PeoPle
The achievement of
TransGrid’s objectives and
goals depend to a large
extent on the calibre of
our people.
TransGrid currently employs almost 1000
employees, who form a highly skilled
team undertaking a variety of professional,
technical, trade and administrative roles.
our people have played a vital role in
initiating and adapting to technological,
structural and process changes since
TransGrid’s formation.
TransGrid promotes a workplace that
rewards achievement, encourages
commitment and promotes diversity,
which empowers our people to achieve
excellence. We are committed to life-long
learning and the pursuit of development
opportunities which attract and retain the
highest quality people.

our direction
our vision
To be recoGnised as a World-class
elecTriciTy TransMission coMpany.
TransGrid’s direction is
defined in its corporate
plan. This plan builds
on TransGrid’s strategic
planning framework and
contributes to meeting
our long term and short
term objectives.
TransGrid’s objectives reflect our
commitment in ensuring a safe, reliable and
efficient electricity transmission network.
They are linked to business unit and group
objectives as well as individual performance
agreements so that all employees can
assess their contribution to achieving
the objectives.
TransGrid’s strategies are based on
the knowledge, skills and systems that
our employees need to deliver value to
our customers.
Above (left to right)
John McCall, Northern Region
Project Manager, and Michael
Stemmer, Tradesperson.
our vAlues
our reputation depends on the decisions
made and the actions taken by people each
day. our values influence our decisions and
how TransGrid conducts business. Without
commitment to our values, we cannot
achieve our vision and mission.
Honesty and Integrity – To be truthful and
consistent in all our dealings.
Trust and Respect – To recognise and
have confidence in the ability of our
colleagues, value their contributions and
opinions, and accept the differences, as
well as the similarities of people.
Open Communication – To share
information in an open and transparent
manner.
Professionalism – To undertake our tasks
diligently, and to address competently the
difficult as well as the ordinary issues that
we face.
Fairness and Equity – To undertake our
duties without fear or favour, and make
decisions with impartiality and sensitivity.
Consideration – To treat people with
understanding and consider their viewpoints
when making decisions.
our mission
To proVide safe, reliable and efficienT
TransMission serVices and To be
coMMercially successful.
our objeCtives
> To be a successful business and to
operate at least as efficiently as any
comparable businesses.
> To exhibit a sense of social
responsibility by having regard for
the interests of the community.
> To protect the environment.
> To exhibit a sense of responsibility
towards regional development.
> To operate efficient, safe and reliable
facilities for the transmission of
electricity and other forms of energy.
> To promote effective access to our
electricity transmission facilities by
potential customers.
TransGrid annual reporT 2009 > About trAnsGrid 7

HiGHliGHTs and
cHallenGes
highlights 2008/09
GeneraTed
$652.8m
in reVenue
acHieVed
97.2%
of rouTine
MainTenance
iMpleMenTed iniTiaTiVes
To deliVer real
oPerAtionAl
eFFiCienCy
iMproVeMenTs
8 HiGHliGHts And CHAllenGes > annual reporT 2009
deliVered a record
$217.4m
operaTinG profiT
acHieVed a
Positive
inCentive
sCHeme ouTcoMe,
based on TarGeTs seT
by our reGulaTor
connecTed
3 new
GenerAtinG
stAtions
To TransGrid’s neTWork
acHieVed a TransMission
neTWork reliabiliTy
exceedinG
99.999%
ManaGed THe ouTcoMes
of THe reVenue reseT
process and seT up a
revenue reset
imProvement
coMMiTTee
forMed THe
CAPitAl
ProGrAm
delivery
iMproVeMenT coMMiTTee

delivered
more tHAn 60
Major capiTal projecTs
reduCed
THe seVeriTy of
occupaTional injuries
by 35%
launcHed THe
younG
ProFessionAls
ProGrAm
coMpleTed Major coMponenTs of THe
western 500kv ProjeCt
includinG THe coMpleTion of baysWaTer
and MT piper subsTaTions and proGression
of bannaby and Wollar subsTaTions
deVeloped and
launcHed a
ClimAte
CHAnGe
strAteGy
inCreAsed
GrAduAte
numbers
froM 46 To 57
conTinued THe
iMpleMenTaTion of
leAdersHiP
develoPment
ProGrAms
inCreAsed
APPrentiCe
numbers
froM 57 To 63
TransGrid annual reporT 2009 > HiGHliGHts And CHAllenGes 9

esults 2008/09
FinAnCiAl PerFormAnCe
incoMe
$652.8m
$79.8 Million increase
inCome ($million)
09
08
07
06
05
451.2
478.5
506.7
573.0
652.8
key CommerCiAl PerFormAnCe indiCAtors
10 HiGHliGHts And CHAllenGes > TransGrid annual reporT 2009
CAPitAl exPenditure ($million)
09
08
07
06
05
158.6
138.3
218.2
355.0
619.9
2008/09 ACtuAl sCi tArGet
earnings before interest and Tax ($ million) 320.5 318.1
operating profit before Tax ($ million) 217.4 204.5
dividend ($ million) 120.2 114.2
return on assets 6.8% 7.1%
return on equity 8.0% 7.8%
2008/09
income ($million) 652.8
asset base ($million) 5,170.9
interest cover (times) 3.0
Gearing ratio (%) 50.0
capiTal expendiTure
$619.9m
$264.9 Million increase

The 2008/09 year has been
another very successful year
for TransGrid. We have met
or exceeded all our objectives.
reTurn on eQuiTy
8.04%
0.37% increase
return on equity (%)*
09
08
07
06
05
4.95
5.39
5.78
7.67
8.04
* return on equity measures a company’s efficiency in earning
profits on behalf of its shareholders. it is calculated taking into
consideration post-tax profit.
Above riGHt (clockwise from top left)
Ralph Meeks, Engineering Officer
David Fayyad, Corporate Relations Manager
Peter Clarke, Linesworker
Jayson Patrick, Professional Officer
reTurn on asseTs
6.82%
0.31% decrease
return on Assets (%)**
09
08
07
06
05
5.81
5.80
6.27
6.82
7.13
** return on assets measures the efficiency with which an entity
uses its assets to produce profits. it is calculated taking into
consideration net borrowing costs.
TransGrid annual reporT 2009 > HiGHliGHts And CHAllenGes 11

esults 2008/09
network PerFormAnCe
98.44%
neTWork aVailabiliTy
network AvAilAbility (%)*
09
08
07
06
05
98.44 **
98.54
* cumulative circuit availability as a percentage based on
TransGrid owned transmission lines rated at 132kV and
above for planned, forced and emergency outages.
** availability has been impacted by outages necessary
to implement the capital works program.
99.44
99.47
99.59
12 HiGHliGHts And CHAllenGes > TransGrid annual reporT 2009
neTWork reliabiliTy
0.42
sysTeM MinuTes losT
network reliAbility (system minutes lost)***
09
08
07
06
05
0.15
0.42
0.37
0.68
1.19
***Historical system reliability in system minutes. includes supply
interruptions caused by TransGrid on equipment it owns.
oPPosite Above (clockwise from top left)
James Bradley, Apprentice
Jenny Seage, Property Asset Manager
Daniel Bremner, Electrical Fitter
Tony Pinchen, Communication and Control Maintenance Manager

TransGrid’s focus on health and safety
has always been paramount and we
work towards zero injuries, occupational
incidents and illnesses.
PeoPle
3.5
losT TiMe injury freQuency raTe
sAFety (lost time injury Frequency rate)*
09
08
07
06
05
1.6
2.1
3.5
3.7
3.7
stAFF numbers – stAFF by CAteGory 30 june 2009**
CAteGory desCriPtion 2009 2008 2007 2006 2005
administrative officers 150 151 162 158 165
apprentices 63 57 54 52 42
engineering officers 269 254 232 233 225
lineworkers 33 38 33 60 64
operators 22 24 26 27 30
professional officers 227 212 174 173 175
power Workers 44 49 52 54 59
senior contract officers 90 91 94 101 106
Team leaders – network 17 19 20 21 22
Tradespersons 76 73 95 64 65
Total 991 968 942 943 953
** staff numbers do not include industrial work experience students and scholars.
* lost Time injury =
frequency rate
Total number of lost Time
accidents for the year x 1,000,000
average number of fulltime
equivalent employees x 2,000 hours
TransGrid annual reporT 2009 > HiGHliGHts And CHAllenGes 13

esults 2008/09
PeoPle
stAFF numbers – ComPArison oF stAFF by CAteGory 30 june 2009
14 HiGHliGHts And CHAllenGes > TransGrid annual reporT 2009
total staff P/t staff equiv. F/t of P/t equiv. F/t staff
administrative officers 150 20 12.38 142.38
apprentices 63 0 0 63
engineering officers 269 2 0.86 267.86
lineworkers 33 0 0 33
operators 22 0 0 22
power Workers 44 0 0 44
professional officers 227 5 3.65 225.65
senior contract officers 90 0 0 90
Team leaders – network 17 0 0 17
Tradespersons 76 1 0.79 75.79
Total 991 28 17.68 980.68
stAFF numbers by Gender 30 june 2009*
Category description no. of employees
females 146
Males 845
Total 991
* staff numbers do not include industrial work experience
students and scholars.
environment
environmentAl inCident notiFiCAtion 2008/09**
Classification low medium High total reportable
numbers 16 7 3 26 3
** in 2008/09 there were 26 environmental incidents reported in
TransGrid’s incident notification system. Three of these incidents
were of a significance level that required notification to a regulator.
all were addressed promptly and resolved. during 2008/09
there were no prosecutions brought against TransGrid under any
environmental statutes.
senior ContrACt stAFF by Gender 30 june 2009
Category description no. of employees
females 8
Males 82
Total 90

challenges 2009/10
> Work towards our goal of zero occupational incidents and illnesses.
> Maintain high levels of reliability and availability as we embark on a capital works
program which has increased from $1.4 billion in the 2004 to 2009 regulatory
period to $2.4 billion in the 2009 to 2014 regulatory period.
> Maintain strong financial performance with the challenge of a growing asset base.
> implement initiatives to further improve operating efficiencies and ensure
we exceed the network performance targets set by our regulator.
> incorporate lessons learned from the revenue reset process into
the business.
> proactively manage TransGrid’s image and reputation to enhance customer
and stakeholder relationships.
> actively manage the impacts of climate change on our business.
> adopt a more strategic approach to building long term, cooperative
partnerships with landowners and communities.
> implement best practice human resources initiatives to assist in the
attraction, retention and development of talented and skilled employees.
Above
David Robinson, Tradesperson
TransGrid annual reporT 2009 > HiGHliGHts And CHAllenGes 15

eview
CHAirmAn + mAnAGinG direCtor’s review
TransGrid has delivered on a record
infrastructure program whilst meeting or
exceeding all other corporate objectives.
Above riGHt
Managing Director,
Mr Kevin Murray, and
Chairman, Mr Bruce Foy.
The 2008/09 financial year has been
another very successful year for TransGrid.
We have met or exceeded all our objectives
in a year in which we have also had the
challenge of delivering a record capital
works program and presenting a detailed
and exhaustive revenue submission to the
aer for the period 2009 to 2014.
We are pleased to report that we have
continued to provide a safe, secure and
reliable network service to consumers in
nsW. This included meeting a record nsW
peak demand of 14274MW on 28 july
2008 and achieving a reliability of supply
of 99.999 percent.
improving the efficiency of the business
has continued to be a major focus of the
organisation and it is pleasing to report
a record operating profit before tax of
$217.4 million. This result was achieved
at the same time as TransGrid was
benchmarked as a world leader in terms
of cost and service levels.
16 CHAirmAn + mAnAGinG direCtor’s review > TransGrid annual reporT 2009
The last year was busier than normal due
to the need to submit a revenue proposal
to the aer for the period 2009 to 2014.
This was a major one-off task on top of
normal operations and involved detailed
submissions on operating and capital
expenditure, service levels and rates of
return. These submissions have been
subject to exhaustive analysis by the
regulator and associated consultants.
now that the process has been finalised,
TransGrid is pleased to be able to commit
with certainty to the operating and capital
expenditure necessary to maintain a reliable
supply of electricity.
delivering the increasing capital works
program continues to be a major challenge.
The program has steadily grown with the
need to replace assets built in the 1960s and
70s coupled with the need to add additional
capacity to meet reliability standards and
market expectations. TransGrid’s capital
works program for the 2004 to 2009
regulatory period was $1.4 billion with
$590 million occurring in the 2008/09
financial year. regulatory approval has been
given for a record capital works program of
$2.4 billion for the 2009 to 2014 period.
The reporting period saw the completion
of a number of major projects including the
first stage of the Western 500kV project
which involves upgrading the backbone of
the nsW grid from 330kV to 500kV. We also
completed new substations at Macarthur
and Wagga north and commenced work
on new substations at Tomago, Williamsdale
and replacement substations at orange
and Queanbeyan. construction has
also commenced on major transmission
line projects including the new 330kV
transmission line from Wollar to Wellington
and 132kV lines between port Macquarie,
kempsey and coffs Harbour.

capacity upgrades to most other parts of
nsW have commenced with community
consultation on a new 330kV transmission
link between dumaresq and lismore and a
new 132kV link from Glen innes to inverell
in the north and from Manildra to parkes
in the west. a $105 million transformer
replacement and augmentation program
at nine major substations is also underway
as part of our ongoing asset replacement
program.
We continue to meet our objective of
improving relationships with existing and
prospective customers to facilitate the
effective operation of the national electricity
Market. We assisted a significant number
of new generator proponents with their
connection options. This included the
connection of a 660MW gas turbine station
at uranquinty near Wagga, a 600MW
gas turbine station at colongra on the
central coast and a 140MW wind farm at
bungendore near canberra. TransGrid is
currently processing more than 30 proposed
new generator connections or upgrades,
which in total constitute a potential of around
2500MW of additional capacity that could be
connected to the network.
of prime importance to TransGrid is the
protection of our environment. TransGrid’s
environmental strategies are targeted
at preventing environmental incidents
through the identification and management
of environmental risks. TransGrid has a
responsibility to meet the community’s
need for electricity while minimising the
environmental impact of works. We achieve
this through active consultation with
employees, contractors, the community
and other stakeholders.
We have taken a proactive approach
to climate change with the launch of our
climate change strategy in february.
The strategy focuses on engaging
employees and the community regarding
potential environmental or cultural impacts
associated with our works to maximise
resource efficiencies and in so doing
reduce the impact on the environment.
our focus on health and safety has always
been paramount and we work towards our
goal of zero injuries, occupational illnesses
and incidents. although we had seven lost
time injuries during the year, it is pleasing
to report that none of these resulted in long
term absences. our low lost time injury
frequency rate of 3.5 is consistent with
other network businesses. in addition, the
severity of injuries over the past year has
fallen by 35 percent with an average of
7.7 days lost per injury.
With over 600 people working in the
field there has been a continuing focus on
maintaining and improving the health and
fitness of our staff through the fit for Work
programme. We have also introduced
a new auditing program for our major
construction projects to further improve
safety performance in the execution of
our major capital works program.
The success of TransGrid largely depends
on our people. one of the key workforce
challenges for TransGrid is an ageing
workforce. TransGrid has progressively
implemented a range of leadership and
development programs to address these
challenges and continues to increase its
recruitment of graduates and apprentices.
in particular, the senior leaders, future
leaders and young professionals programs
have become a vital component of our
workforce planning strategy.
our workforce has grown over the last
year to meet the demands of our upcoming
$2.4 billion capital works program. We
welcome all new employees and at the
same time we acknowledge the commitment
and valued experience of our long-serving
employees who carry out their jobs with
dedication that is second to none. our
people continue to rise to the challenge
confronting them through the increasing
demands and expectations of our business.
The challenges for TransGrid over the next
few years will be to continue to improve
the efficiency of our business, deliver our
increased capital works program and
maintain our current high levels of safety
and reliability.
our thanks go to the board and the
executive leadership team for their
ability to define and lead the pursuit of
common objectives. although it has
been a challenging year, we can look
back positively and be proud of our
achievements.
Mr bruce foy
chairman
Mr kevin Murray
Managing director
TransGrid annual reporT 2009 > CHAirmAn + mAnAGinG direCtor’s review 17

planninG a
fuTure neTWork
our PlAnninG APProACH
The new south Wales electricity transmission network has
been planned and developed by TransGrid for over fifty years.
The expertise gained over this half century of transmission
delivery enables TransGrid to truly claim to be a world–class
electricity company.
Above riGHt
Jim Coleman, Engineering Officer
oPPosite PAGe (left to right)
Projects Engineers Warick
Schroder and Neil Mitchell with
John McCall, Northern Region
Project Manager.
18 PlAnninG A Future network > TransGrid annual reporT 2008

as industrial development
and population growth
have continued to drive
up the demand for
electricity, TransGrid has
continued to demonstrate
the effectiveness of its
forward planning.
TransGrid does this by assessing the
ability of the network to meet projected
load forecasts and plans to satisfy these
emerging needs.
our planning is carried out over both a
short time frame, from one to five years,
and also over a longer term period, from five
to 20 years. shorter term planning supports
commitments to network developments
with relatively short lead times. longer
term planning considers options for future
major developments. planning processes
over both timeframes ensures economically
efficient development of the network.
TransGrid prepares an annual planning
report each year. The annual planning
report provides information to market
participants and interested parties on nsW
energy demand projections; the nature
and location of emerging constraints in the
nsW network; information on completed,
committed and planned augmentations;
and proposed network developments over
the next five years. This information allows
the market to identify potential demand
management solutions and allows TransGrid
to develop and implement appropriate and
timely network solutions.
TransGrid also prepares a five year network
Management plan which describes the
model we use to manage and develop its
assets and the asset management strategies
for network enhancement and maintenance.
in response to the projected high level
of electricity load growth, TransGrid’s
planning has identified the need for future
augmentation of the nsW transmission
network. The 2009 to 2014 regulatory period
is characterised by six major projects which
collectively account for over 50 percent
of the total expenditure of the expected
$2.4 billion capital expenditure program.
These include:
> dumaresq to lismore 330kV
Transmission line
> beaconsfield West 330/132kV
Gas insulated switchgear (Gis)
substation rebuild
> Holroyd Gis and rookwood road
330/132kV Gis substations
> Holroyd to rookwood road
330/132kV Gis cables
> Tomago/stroud/Taree Transmission
line projects
> bannaby to south creek 500kV
Transmission line.
TransGrid annual reporT 2009 > PlAnninG A Future network 19

isinG eleCtriCity demAnd
nsW is australia’s most populous state.
peak energy demand in nsW has been
growing at a faster rate than the average
demand and this trend has resulted in an
increasing demand for electrical services
across all sectors of the economy. in
particular, the developments in the
residential sector and the increase in
business centres located primarily in
sydney, newcastle and Wollongong has
required increased transmission capability
to support them.
on 28 july 2008, TransGrid recorded a
peak winter demand of 14,274MW. This
was followed by a peak summer demand
of 14,106MW on 6 february 2009.
To meet this increasing demand, TransGrid is
embarking on a large capital works program
that will see a 24 percent increase in the
value of its assets over the next regulatory
period. This is expected to include about
1000 kilometres of new high voltage
transmission lines and 13 new substations.
although TransGrid’s success in managing
its assets is reflected in its reliability of
over 99.999 per cent, it will be important
for TransGrid to continue to improve its
asset management and maintenance
techniques in order to produce the best
results from its changing asset base.
10% POE Projection (MW)
50% POE Projection (MW)
90% POE Projection (MW)
Actual
19000
18000
17000
16000
15000
14000
13000
12000
11000
10000
19000
18000
17000
16000
15000
14000
13000
12000
11000
10000
2001/02
scheduled demand (MW) scheduled demand (MW)
2002/03
20 PlAnninG A Future network > TransGrid annual reporT 2009
2001/02
Summer Peak Demand (2001/02 – 2018/19)
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
Winter Peak Demand (2001/02 – 2018/19)
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2012/13
2013/14
2013/14
2014/15
2014/15
2015/16
2015/16
2016/17
2016/17
2017/18
2017/18
2018/19
2018/19
2019/20
1
5
9
A
1
5
9
A

nsW is australia’s most populous
state with peak energy demand in
nsW growing at a faster rate than
the average demand.
riGHt (clockwise from top left)
Jye Thornton, Graduate Engineer
Jo-Anne Harrison, Manager/Reporting and Financial Systems
Kathryn Pate, Environmental Officer
Garrie Chubb, Manager/Network Planning
demAnd mAnAGement initiAtives
Viable demand management initiatives
are always considered as alternatives to
augmentation of the electricity transmission
network. TransGrid places a high priority
on identifying opportunities to reduce
demand growth.
demand management projects that
TransGrid is likely to implement during the
2009 to 2014 regulatory period include:
> a network support project combined
with development of the electricity
supply to the sydney cbd and inner
metropolitan area.
> a project with the state’s distributors for
the development and implementation of
efficient demand side response solutions
and responses to requests for proposals
(rfp) for non-network alternatives.
> provision of reactive power support
from power stations for the main system
network.
> implementation of a system protection
scheme to improve the power transfer
capability between snowy and yass/
canberra.
ContributinG to nAtionAl
eleCtriCity mArket develoPment
The primary regulatory reviews impacting
TransGrid during the year included:
> The aer review of regulated cost of
capital (Wacc) parameters.
> further development of the national
transmission planning arrangements
around the national Transmission
planner (nTp) function within the newly
created australian energy Market
operator (aeMo).
> The establishment of the regulatory
investment Test – Transmission (riT-T).
reviews of significance, which will depend
on future decisions from the Ministerial
council on energy (Mce), include the
finalisation of a national framework for
transmission reliability standards and
changes to national electricity market
arrangements.
The establishment of the nTp is aimed at
improving the coordination of transmission
planning across the neM. This initiative is
complemented by the establishment of the
riT-T, to replace the regulatory Test. a key
objective of the new test is to ensure that
market benefits are more fully accounted for
when assessing transmission augmentation
options. TransGrid is committed to working
with the other neM transmission service
providers, and aeMo, to ensure that the
reform objectives are achieved to the
maximum extent possible.
during the year, the aeMc delivered its
report to the Mce recommending a national
framework for establishing and reviewing
transmission reliability planning standards.
The framework is crucial in ensuring a
transparent accountability framework for
transmission investment decisions across
the neM.
The Mce also initiated a review of neM
arrangements to ensure that they are not
impeding the delivery of climate change
policies. The aeMc produced its second
interim report on 30 june 2009 which
includes proposals to improve processes
for connecting remote renewable energy
sources to transmission networks, establish
transmission charges between regions,
and introduce a transmission charge for
generators reflecting the transmission
congestion associated with different
locations.
Customer ConneCtions
Generation connection activity has
continued to increase during the year.
This included connection enquiries,
processing of connection applications,
and the connection of three new generating
stations to TransGrid’s network during
the year. specifically, 600MW of new gas
turbine generation was established at
colongra on the central coast; more
than 660MW of new gas turbine generation
was established at uranquinty in south
Western nsW; and 140MW of wind
generation capacity was connected at
the capital Wind farm near bungendore.
also, over 400MW of gas fired generation
was established at Tallawarra with TransGrid
working closely with integral energy and
aeMo to ensure successful connection to
the transmission network.
The total of around 1800MW of generator
connections during the year (including
Tallawarra) is significant in that it is the first
major addition of new generation capacity
in nsW since the early 1990s.
progress was also made on major load
expansions during the year. notably the
Visy pulp Mill near Tumut is undergoing
an expansion and is expected to draw
significant additional load early in 2009/10.
longer term system development is also
being planned to provide improved reliability
for the expanded Visy operation. following
the completion of an options study, the
other load expansion is now likely to
connect to the local distribution network
service provider.
FAir PriCinG
TransGrid’s allowable revenue is set every
five years by the aer. each year, TransGrid
adjusts its revenue for inflation and then sets
its transmission prices. TransGrid’s prices
for 2008/09 were published in May 2008,
as required by the national electricity rules.
from these annual revenues, TransGrid
calculates its transmission prices in
accordance with the methodology
described in the rules.
There was a moderate 2.3 percent increase
for 2008/09 to the average retail customer,
which equates to approximately $2.80 per
household per year in real terms.
TransGrid annual reporT 2009 > PlAnninG A Future network 21

in ProFile
our future revenue
every five years, TransGrid submits its revenue requirements to the australian
energy regulator (aer). The revenue proposal seeks sufficient funds from the
regulator to allow TransGrid to continue to deliver world-class network reliability.
on 30 april 2009, the aer released TransGrid’s final revenue proposal for the 2009 to 2014 regulatory period. We are pleased that
the aer accepted that TransGrid is an efficient network service provider and approved the vast majority of our proposed capital
expenditure program. a key aspect of the decision for TransGrid has been the significant reduction in the regulated return on
TransGrid’s asset base. The significant reduction in revenue is a result of the global financial crisis which has seen a dramatic reduction
in the bond yields used by the aer to determine the rate of return.
as a result of our revenue outcome, TransGrid’s transmission charges will increase by some 2.3 percent in real terms, adding about
$2.80 per annum to the average residential customer’s bill. despite this, we are proud of the fact that the people of nsW will continue
to receive the lowest price electricity transmission service in the neM.
The coordination of the revenue reset was a significant undertaking that required broad organisational involvement. a dedicated project
team was responsible for the overall coordination of our proposal and managing the ongoing relationship with the aer.
The primary challenge has been managing the revenue reset process as part of our normal business processes. To achieve this,
there was wide organisational input from all business units to ensure the linkage back to the business. We appreciate their effort
and commitment to the process.
We are looking at the revenue reset process as an opportunity to improve the way we do things. To this end, we have set up an
improvement committee to look at the lessons learned and identify opportunities for better management of our processes to ensure
we continue to provide the best possible electricity service to nsW.
Above (left to right)
Members of the Revenue Reset Project: Raymond Chui,
Meredith Sturman, David Trethewey, David Conroy, and Karman Fung.
22 PlAnninG A Future network > TransGrid annual reporT 2009

uildinG susTainable
World-class
infrasTrucTure
TransGrid’s multi-billion dollar capital works program is required
to ensure our transmission network continues to deliver safe,
secure and reliable electricity. TransGrid also has a major on-going
program of refurbishment and replacement of ageing assets to
ensure efficient supply to all customers.
Above riGHt (left to right)
David Robinson, Tradesperson, and
John McCall, Northern Region Projects Manager.
TransGrid annual reporT 2009 > buildinG sustAinAble world-ClAss inFrAstruCture 23

The capital works program for the 2004 to 2009 regulatory period comprised more
than 120 major projects with a total regulated expenditure of over $1.4 billion.
during the 2004 to 2009 regulatory period the number of active projects and the
annual expenditure on these projects has grown, so that in 2008/09, the total annual
capital projects expenditure was $590 million with more than 60 projects delivered.
The achievement of TransGrid’s capital
works targets attests to the skills of our
workforce and contractors. TransGrid’s
strategy for strong internal growth sits
alongside strategies of our suppliers
and contracting partners to grow their
capabilities in the delivery of our capital
works program.
The past five years have seen strong growth
in TransGrid’s internal and external project
delivery capabilities and these capabilities
form the base from which this important
capital program will be delivered with
equal success.
best PrACtiCe
Asset mAnAGement
TransGrid continues to review and improve
its asset management and maintenance
techniques in order to produce best practice
performance from our assets.
TransGrid’s asset management and
maintenance strategies are driven by our
network Management plan. This plan
provides a basis for ongoing analysis within
TransGrid and for continual improvement of
the transmission system.
a risk mitigation approach is used in
the development of TransGrid’s asset
management strategies. These strategies
are evaluated by specialist working groups
and consider aspects such as maintenance
costs, expected reliability performance and
asset capability.
TransGrid has a well developed asset
management model which consists of:
> The establishment of maintenance
policies for each type of asset class.
The items in the maintenance plan are
prioritised to ensure their impact on
reliability, availability, safety, environmental
and economic factors are considered.
> planning and executing maintenance
work in accordance with the Works
Management system with core
maintenance work performed by highly
skilled TransGrid staff.
> undertaking quarterly asset performance
reviews which examine the trends,
causes and impacts of all forced and
emergency outages of equipment.
> benchmarking our asset management
and maintenance processes through the
international Transmission operations and
Maintenance (iToMs) study program.
The benchmarking is carried out with over
25 transmission organisations world wide.
The most recent benchmarking study,
iToMs 2007, confirms the success of
TransGrid’s asset management strategies,
with TransGrid well positioned in the “best
performer” quartile (lower-than-average
cost and above-average reliability).
24 buildinG sustAinAble world-ClAss inFrAstruCture > TransGrid annual reporT 2009
over the 2009 to 2014 regulatory period,
TransGrid is expecting a 24 percent increase
in our maintainable assets. TransGrid is
confident we will meet this challenge by
continuing to take a proactive approach
in assessing and monitoring our assets.
Above
Bannaby 500/330kV Substation

The achievement of TransGrid’s capital
works targets attests to the skills
of our workforce.
The past five years have seen strong
growth in TransGrid’s internal and
external project delivery capabilities.
riGHt (clockwise from top left)
Raymond Selmes, Engineering Officer
Clare Mannion, Board and Executive Support Manager
Mathew Gorton, Apprentice
Ian Harris, Senior Audit Manager
in ProFile
energising the Western 500kV project
To meet increasing demand in the sydney, newcastle and Wollongong areas, TransGrid
has moved full steam ahead with the Western 500kV project. at a value of $320 million,
it is the largest project ever undertaken by TransGrid on every scale.
The project focuses on upgrading the western backbone of the core nsW transmission
network from 330kV to 500kV to maximise the useful capacity of all the transmission lines
that supply the newcastle, sydney and Wollongong load centres. The Western 500kV
project is the culmination of planning and development by TransGrid over the past 30 years.
The Western 500kV project comprises the following works:
> construction of 500kV switchyards at bayswater and Mt piper
> construction of new 500/330kV substations at bannaby and Wollar
> upgrading 330kV equipment at Wallerawang 330kV switching station.
2009 represents a milestone with bayswater substation being completed during january
and the uprating of Wallerawang and Mt piper switchyards completed during March. in
addition, the first of the two lines between bayswater and Mt piper power stations was
placed in service at 500kV.
The second milestone for the project was achieved in june 2009 when Macquarie
Generation completed installation of the 500kV generator transformers which connected
the first of two units to the 500kV system.
The Western 500kV project is an impressive project from a design, planning,
environmental and stakeholder perspective. a critical component of the project is the
design and supply of a total of 21 500/330kV transformers, by Toshiba japan. during
the year, 18 of these units were shipped from japan to newcastle and then by heavy
haulage road transporters to bayswater, Mt piper and bannaby. The last three units,
for Wollar, are due towards the end of 2009.
significant investments were made to community infrastructure during the construction of
the project. for instance, in building bannaby substation, TransGrid invested $1.5 million
into building a road linking Taralga with the new TransGrid substation at bannaby.
TransGrid worked in partnership with the councils and the community by presenting the
benefits and impacts of the projects to them. We were active in facilitating discussions
with landowners and keeping stakeholders informed of the project through issuing press
statements and brochures.
during 2009/10, TransGrid will energise the second line between bayswater and Mt piper
at 500kV, reestablish the Mt piper to Wallerawang 330kV line, complete and commission
bannaby substation and complete and energise Wollar substation.
The Western 500kV project has involved hundreds of TransGrid and contract staff all of
whom are to be commended for the significant project achievements to date.
leFt Peter French, Engineering Officer
TransGrid annual reporT 2009 > buildinG sustAinAble world-ClAss inFrAstruCture 25

in ProFile
new substation at Macarthur
TransGrid has recently completed construction of a
new $50 million substation at Macarthur to reinforce
electricity supply in the rapidly developing south West
sydney region.
The new substation will provide sydney’s south West region with enough power to
supply 100,000 homes and businesses. Two state-of-the-art transformers have been
installed and a custom made road was built off the Hume Highway to ensure the
transformers reached the site.
The project involved extensive civil and landscaping works. The close proximity of a
number of other utilities in the area plus the difficult slope of the site required innovative
designs to achieve an effective outcome.
The project was subject to extensive community consultation. a comprehensive
environmental investigation was made before construction began, which took into
account the proximity of construction to the Mount annan botanic Gardens. With the help
of gardens’ staff during the planning process, TransGrid established a landscape plan for
the area around the substation. The native flora has provided a natural habitat for wildlife.
a range of efficient techniques were employed in the project, some of which included
the utilisation of a very compact layout for the substation and the painting of higher steel
structures and the transformer sound walls to reduce noise impacts.
The new substation employed over 100 local contractors during its construction and is a
big part of TransGrid’s annual capital works program.
Macarthur substation is one of the most modern substation’s on TransGrid’s network with
the latest advances in safety, security and environmental protection.
Above
Macarthur 330kV Substation Site
leFt
Macarthur Substation Transformer
26 buildinG sustAinAble world-ClAss inFrAstruCture > TransGrid annual reporT 2009

inCreAsed reliAbility
For CentrAl nsw
Wollar to Wellington 330kV
Transmission Line
To strengthen electricity supply to central
nsW, TransGrid is constructing a 117km,
330kV transmission line between a new
switching station near Wollar and the
existing Wellington 330/132kV substation.
extensive community consultation was
undertaken during the planning stage.
part of the analysis required TransGrid to
consider alternative projects, such as local
gas turbine generators, prior to proceeding
with the present project. TransGrid worked
closely with stakeholders throughout the
numerous consultations and submissions
which were required to secure approval for
the project.
numerous alternate alignments were
considered for the transmission line. The
transmission line crosses property that is
owned or operated by several different
mining organisations, all of which had an
impact on the final design and locations
adopted for the transmission line.
a construction environmental Management
plan (ceMp) was implemented for the
contract and an independent environmental
Management representative appointed.
The project included several fauna corridors
and a requirement that compensatory
habitat be provided.
The estimated cost of the project is
$90 million with completion expected by
november 2009.
Above leFt
Wollar to Wellington 330kV
transmission line construction
Above riGHt
Wagga North 132kV Substation
new wAGGA nortH substAtion
during july 2009, TransGrid completed
construction of a brand new $23 million
substation at Wagga north to meet
increasing electricity demand in the region.
construction on the substation commenced
in 2008 after more than five years of
detailed planning by TransGrid and
country energy. The new Wagga north
substation will be Wagga’s third bulk supply
point for electricity, supplying several of
country energy’s rural zone substations
and providing power to around 14,000
residential and business customers in the
Wagga Wagga region.
The new substation was built to an
accelerated program and is vital to
increasing power supply to support the
future growth and development in nsW’s
largest inland city.
The substation site, located adjacent
to the existing industrial area, provided
TransGrid with the opportunity to build in
close proximity to both TransGrid’s and
country energy’s existing electricity network
infrastructure.
during the planning and construction
phases there was an emphasis on
preserving existing flora, including trees
that were planted near the construction
area as a carbon offset. consistent with
other TransGrid locations, the site will be
landscaped with native trees and shrubs,
which have been selected to increase
bio-diversity in the area.
boostinG Power
to soutHern nsw
Yass to Wagga 132kV Transmission Line
during March 2008, TransGrid commenced
construction on the yass to Wagga 132kV
transmission line reconstruction project to
modernise the existing transmission line as
it reached the end of its serviceable life.
The project includes dismantling the existing
wood pole line and constructing a new
line using single concrete poles. The line
is approximately 150km long.
TransGrid actively consulted with affected
property owners on the methods of
rebuilding the line and as a result of this
consultation two owners requested minor
deviations to the existing alignment. a
review of environmental factors was
undertaken and because the rebuild of the
line is along the existing alignment, no new
environmental impacts were introduced.
construction of the new line is expected to
be completed by early 2010. The estimated
cost of the project is $27 million.
TransGrid annual reporT 2009 > buildinG sustAinAble world-ClAss inFrAstruCture 27

mid-nortH CoAst reCeives
Power uPGrAde
Kempsey to Port Macquarie
132kV Transmission Line
The mid-north coast is one of nsWs
fastest growing areas.
TransGrid has commenced construction of
a second single circuit 132kV line between
kempsey and port Macquarie to strengthen
power supply in the region. The estimated
cost of this project is $28 million.
The new line will replace the existing wood
pole line between kempsey and port
Macquarie. The new line is being built with
concrete poles, using modern materials that
will enable us to build the most compact
power line possible within the existing
easement area.
The extensive work undertaken in
developing the final project solution paid
particular attention to the environment
and community. This was evident when
we undertook the more complex task
of rebuilding the existing line rather than
establishing a new greenfield route. This
decision resulted in the project receiving
substantial acceptance by the existing
landowners and community.
The project draws upon TransGrid’s
extensive project management expertise,
with the project team having to work
within significant outage constraints and
tackle problems arising from wet weather
and floods. This required TransGrid to
investigate various techniques such as
special tracked vehicles with the ability
to work on wet ground with minimal
environmental impact.
The project is expected to be completed
in 2010.
strenGtHeninG suPPly to tHe
soutHern tAblelAnds
Queanbeyan 132kV Substation
during december 2008, TransGrid began
work on its $28 million investment into the
reconstruction of Queanbeyan substation.
The new substation incorporates the latest
technology to ensure that the high voltage
electricity supply to Queanbeyan, canberra,
eastern acT and braidwood areas continues
to meet the increasing demand in the region.
The original substation was built in
1957 and has provided reliable power
to Queanbeyan and the surrounding
community for over 50 years. This project
is the first of a number of major TransGrid
upgrades planned for the southern
Tablelands over the next five years.
The main objective of this project is to
renew the assets at the substation with
modern equivalents. To achieve this
objective, the substation is being rebuilt
on a new site, adjacent to the existing
substation. The design of the substation is
very compact and will incorporate the latest
tubular gantry structures instead of the
more conventional steel lattice towers.
The construction of the substation is due for
completion by early 2010.
28 buildinG sustAinAble world-ClAss inFrAstruCture > TransGrid annual reporT 2009
imProvinG reliAbility to tHe
CentrAl PlAins reGions
Manildra to Parkes 132kV
Transmission Line
TransGrid is planning to construct a new
$30 million 132kV transmission line between
Manildra and parkes. The transmission line
will meet increasing power demands in the
region, directly benefiting residents and
businesses in the parkes, Manildra, forbes
and cowra areas.
social, environmental, technical and
economic factors were all considered in
determining the preferred transmission line
route, which was selected in august 2008.
environmental consultants have recently
completed a detailed environmental
assessment. These results were presented
to the community during july 2009 and
TransGrid was on hand to respond to any
community concerns. TransGrid has been
active in engaging the community since the
early days of the project, seeking feedback
and comment through information sessions
and public notices ever since project
announcement. TransGrid has continued
to hold discussions with property owners
throughout all phases of the project.
To minimise visual impact, the transmission
line will be constructed with single concrete
poles within a 45 metre wide easement.
construction of the Manildra to parkes
transmission line is due to commence in late
2009 with completion due by early 2011.

TransGrid’s strategy for strong internal
growth sits alongside strategies of our
suppliers and contracting partners to
grow their capabilities in the delivery
of our capital works program.
reinForCinG suPPly
to tHe orAnGe AreA
Orange 132/66kV
Substation Augmentation
in order to meet the increasing demand in
orange and surrounding areas, TransGrid is
upgrading its orange 132/66kV substation.
The upgrade is valued at $14 million and
includes the replacement of the existing
transformers with larger units. The first
transformer has been installed and in
service since february 2009.
To ensure careful consideration of the
environment and community, a review of
environmental factors has been prepared
and an environmental Management
representative has been appointed to
check that all mitigation measures are
being effectively applied and that the work is
compliant with environmental requirements.
The opportunity has also been taken to
bring the environmental controls on the
site to TransGrid’s current standards.
Above riGHt (clockwise from top left)
Blake Cook, Apprentice
Jemmie Ong, Graduate Accountant
John McCall, Northern Region Projects Manager
Michael Bradbury, Planning Systems Manager
better Power suPPly to tHe ACt
Williamsdale 330/132kV Substation
TransGrid and actewaGl are providing a
second independent electricity supply to
the acT through the construction of a new
substation at Williamsdale.
The project involves the construction of
a 330/132kV substation at Williamsdale
and converting two 132kV lines to 330kV,
to form a 330kV connection between
canberra and Williamsdale. actewaGl will
construct the 132kV lines from Williamsdale
to strengthen its distribution in the acT.
extensive investigation was undertaken into
site selection for the substation. specialised
consultants were engaged to provide an
environmental assessment. compensatory
habitat shall be provided additional to
the mitigation measures identified in the
environmental assessment. The site has also
been selected based on least visibility from
the nearest roads. The substation design
is the most compact arrangement ever
developed for a bank of three transformers
and aims to minimise impact on the yellow
box and red Gum grassy bushland.
construction of the substation is expected
to be completed by december 2010. The
transmission line conversion and canberra
bay extension works are expected to be
completed by March 2011 with energisation
expected during april 2011.
The estimated cost of the project is
$48 million.
stAte-wide trAnsFormer
rePlACement And
AuGmentAtion ProjeCt
To meet growing electricity demand across
nsW, TransGrid is executing a $105 million
transformer replacement and augmentation
program across nine major substations
throughout the state.
ageing transformers are being replaced by
more efficient units, existing transformers
are being augmented with new transformers
and surrounding auxiliary equipment is
being upgraded.
The replacement program is particularly
challenging as work has to be carried out
within the constraints of existing operational
substations, while ensuring the electricity
supply to the area is maintained.
TransGrid is strengthening environmental
controls on each site and installing the latest
“low noise” transformers.
Highly improved, standard transformer
compound designs have been developed
to expedite substation designs and provide
flexibility with the allocation of transformers
to the various substations.
TransGrid annual reporT 2009 > buildinG sustAinAble world-ClAss inFrAstruCture 29

driVinG cHanGe
THrouGH innoVaTion
TransGrid is committed to working smarter and achieving
operational excellence in all facets of our business. We have
worked hard towards managing expenditure in a global
environment of rising input costs.
Above leFt (left to right)
Steve Varelis, Senior Technology
Analyst, Greta Metz, Information
Communications Technology
Project Manager, Barry Gifford,
Senior Information Communications
Technology Project Manager, and
Natalie Lukic, Information Technology
Asset Management Coordinator.
30 drivinG CHAnGe tHrouGH innovAtion > TransGrid annual reporT 2009

enHAnCinG orGAnisAtionAl
eFFiCienCies
TransGrid has worked hard towards
managing expenditure in a global
environment of rising input costs. This
has been achieved through implementing
efficient business strategies, benchmarking
our performance against other Transmission
network service providers (Tnsps) and
implementing a range of improvements to
optimise our processes. This has resulted in
TransGrid exceeding the service standards
set by the aer and achieving operating
expenditure outcomes better than the
targets set.
cost reduction efforts have included the
introduction of process improvements.
initiatives put in place to achieve these
efficiencies include a review of the control
room shift arrangements, leading to
a reduction in costs, centralisation of
support functions and rationalisation of
the information technology outsourcing
arrangements.
TransGrid is expecting a 24 percent
increase in its maintainable asset base over
the 2009 to 2014 regulatory period. The
costs associated with these new assets,
including substantial maintenance costs,
will not be able to be fully absorbed through
efficiency improvements as they were in
the previous regulatory period. However,
TransGrid is confident that it will achieve
a targeted level of operating expenditure
equivalent to best practise among other
Tnsps in australia over the next five years.
benchmarking with other organisations
indicates that our performance will be
among the best in the world.
below
New TransGrid Control Room
enHAnCinG CAPitAl
ProjeCt delivery
TransGrid’s regulated capital works program
for the 2009 to 2014 regulatory period will
be $2.4 billion, which represents almost
a doubling of the capital works program
from the 2004 to 2009 regulatory period. in
addition, the mix of projects making up the
2009 to 2014 capital program has changed.
To this end, TransGrid has introduced
improved processes to ensure that the
capital program comes to fruition in the
most efficient manner.
TransGrid has continued with the
implementation of its capital expenditure
governance framework, which includes;
> clearly defined decision gates for all
projects and formation of an executivelevel
capital Works steering committee.
> establishment of a design and construct
project delivery model.
> strategies to address resource shortages
including initiatives to increase internal
resources; an increase in the use of
external resources in project design and
specialist services; and the use of design
and construct project contracting.
in 2008/09, a capital program delivery
improvement committee was established
to implement improvements in delivering
the increased capital program on a
sustainable basis.
Three improvement initiatives were selected
for immediate actioning and included:
> The adoption of a single TransGridwide
capital program planning and
resourcing Tool.
> The identification of the resourcing
requirements across TransGrid to
deliver the capital program out to
2014 on a sustainable basis.
> The implementation of improved
strategies for the delivery of the
growing technical services and
secondary systems works program
through to 2014 and beyond.
benCHmArkinG our reliAbility
TransGrid’s high level of network reliability
performance has been sustained over
many years.
TransGrid regularly participates in
benchmarking exercises in order to drive
improvements to the business. as a result
of this, TransGrid has been identified as a
leading performer internationally on both
service and cost measures.
The most recent benchmarking study,
iToMs 2007, confirms this performance
with TransGrid well positioned in the “best
performer” quartile (lower than average cost
and above average reliability). comparison
with the average result for the asia
pacific region shows TransGrid’s network
performance is above the regional average,
with costs substantially lower than average.
TransGrid’s reliability and availability is
achieved as a result of good planning
and appropriate maintenance practices.
TransGrid has a policy of achieving better
than 95 percent of the programmed
maintenance in the financial year in which it
falls due, with any outstanding maintenance
completed in the first three months of the
next period.
TransGrid annual reporT 2009 > drivinG CHAnGe tHrouGH innovAtion 31

drivinG inFormAtion
teCHnoloGy FurtHer
TransGrid has continued to strengthen
its service delivery capability, through
enhancements to business solutions,
hardware platform innovations and
delivery of major capital projects.
some examples include:
> successful implementation of major
applications that support the business
activities of network performance
and operations and network services
to manage outages, HV preparation,
restoration instructions and
operators’ logs.
> achieved a 50 percent target file server
and data storage virtualisation level, to
reduce power and space consumption
and facilitate more cost-efficient
administration. The remainder of the
work is planned for 2009/10.
> installation of video conferencing
equipment for sydney cbd and sydney
West locations to reduce travel, thereby
saving staff time and transport costs.
> delivery of major infrastructure projects
to consolidate and reduce servers and
partial upgrade of the corporate data
network to reduce operating cost and
improve service.
> implementation of Voip (Voice over
internet protocol) for a more cost
effective and flexible telephony service.
The service is planned to be rolled out
to remaining TransGrid locations
during 2009/10.
mAins And eAsement
mAnAGement system (mems)
Mains and easement staff are now able
to view environmental and line information
and record their work in the field through
the new Mains and easement Management
system (MeMs).
The new system extracts information
from the Works Management system
(ellipse) and the Geographic information
system (TaMis) and presents it to staff on
a portable tablet pc. it provides field staff
with the transmission line and environmental
information required to undertake work in an
environmentally conscious manner.
The MeMs application enables employees
to have easement, equipment and property
owner/occupier information available to
record inspections and defects, as well as
have contact with property owners while in
the field.
The MeMs solution replaces a number of
local systems that are currently used within
TransGrid and is now the primary interface
to the corporate information systems for
mains and easement staff.
The MeMs system has largely been
developed within 2008/09 with final user
training and rollout planned for august 2009.
Artemis tool drives CAPitAl
works eFFiCienCy
To help deliver the upcoming capital
program, TransGrid has implemented a
program management system building
on the existing project management tool,
artemis. TransGrid has widened the use
of artemis throughout the organisation to
provide a view of the whole of TransGrid’s
work program so that longer term forecasts
are available.
The main benefit of using an integrated
system is to be able to view all projects
together and see how they interact. further
benefits are available with the day-to-day
allocation of skilled resources at the critical
commissioning stage of projects. as the
system develops, other parts of the business
will see benefits in forecasting their workload
and identifying when key business information
will become available from projects.
32 drivinG CHAnGe tHrouGH innovAtion > TransGrid annual reporT 2009
in ProFile
new e-recruitment Technology
during july 2009, TransGrid rolled out a brand
new electronic recruitment system to all employees.
The new system increases the efficiency of TransGrid’s recruitment process allowing
transactions to be performed in real time, reducing the cost of the process, the amount
of paper used and the time taken to identify appropriate candidates. The system provides
TransGrid with a 24/7 method of collecting resumes and acts as a centralised storage
point for all candidate information.
TransGrid has successfully used the system for several large scale campaigns including
apprentices, graduate engineers and accountants. any external applicants who have
joined TransGrid over the last six months have been applying via erecruitment.
The erecruitment system has proved to be very efficient, saving time and effort involved
in the recruitment process, particularly for high volume recruitment campaigns.
comprehensive training was provided to all hiring managers and staff to ensure an easy
transition to the new system.
To date, the project has standardised the
use of artemis within the capital program
delivery and network business units,
allowing the development of usage across
the business.
The system now contains over 80 live
capital projects.
enHAnCements to tHe HiGH
voltAGe PrePArAtion And
restorAtion instruCtions
APPliCAtion (HvPri)
TransGrid’s operations staff are exploring
the new features provided by the recent
enhancements to the HVpri application.
a key feature, which was commissioned in
august 2009, is a wizard which generates
High Voltage preparation and restoration
instructions (switching instructions) for
use by system operators and field staff.
Through innovative techniques, the HVpri
wizard analyses the switching requirements,
and with a few user inputs, generates
instructions to perform the outage.
efficiencies in business processes have
been achieved with the direct printing/faxing
of instructions to remote sites, coupled
with the ability to alter instructions without
impeding their execution.
in total, more than 40 enhancements were
made to the original application, some of
which include electronic pinning of high
voltage operating diagrams, improvements to
search functionality and an increased number
of tools to assist in coding instructions and
overall increased workflow efficiency.

MakinG enVironMenT
and coMMuniTy a
prioriTy
our environmentAl Commitment
of prime importance to TransGrid is the protection of the environment.
TransGrid’s environmental strategies are targeted at preventing
environmental incidents and shifting our environmental culture from
one that focuses on legislative compliance to one that integrates
environmental management into everyday business activities.
TransGrid annual reporT 2009 > mAkinG environment And Community A Priority 33

Above
Steve Cunningham, TransGrid
Environmental Award winner.
TransGrid has continued to improve the
efficiency of our environmental Management
system. during 2008/09, TransGrid
successfully retained our iso 14001
accredited environmental Management
system following a surveillance audit by
external auditors. a workshop was held with
management, technical experts and staff to
identify the significant environmental risks
faced by the organisation.
some of the enhancements made to
TransGrid’s environmental Management
system include the following:
> TransGrid’s environmental policy
was revised.
> TransGrid’s environmental rules for
maintenance work on easements
and in TransGrid premises continued
to be improved. TransGrid designed
and delivered two computer-based
interactive systems for the training,
assessment and authorisation of staff
and contractors under TransGrid’s
environmental rules for easements.
These online programs are designed
to develop, train, maintain, and assess
the environmental competencies of
staff and contractors in a more efficient,
accurate, cost effective and reliable
way. TransGrid’s environmental rules
are unique in the electricity industry and
provide a high level of assurance that
appropriate environmental controls
are implemented.
> TransGrid has enhanced the
environmental rules by adding the
management of hot works. This was
undertaken to ensure a more consistent
approach to the identification of bushfire
and safety risks associated with
hot works.
in ProFile
TransGrid environmental award
> a procedure for outlining the
responsibilities for Greenhouse Gas
reporting data collection for TransGrid
has also been developed to help
TransGrid meet its national Greenhouse
and energy reporting standards
reporting requirements.
> integrated environmental management
considerations were integrated into
all aspects of managing our assets
including their planning, design, siting,
construction, maintenance, operations,
decommissioning and disposal.
ClimAte CHAnGe strAteGy is Here
TransGrid has taken a proactive approach
to the management of climate change.
during february 2009, TransGrid developed
a climate change strategy for the business.
Taking a whole-of-business approach,
the strategy lays out a series of initiatives
that have or will be developed and then
implemented. during 2008/09 TransGrid has:
> completed a Greenhouse Gas
emissions inventory scoping study and
developed a procedure for outlining
the responsibilities for Greenhouse Gas
reporting data collection in preparation
for the implementation of the national
Greenhouse energy reporting act 2007.
> begun assessing TransGrid’s Greenhouse
non-network emissions footprint and
liabilities and investigating strategies to
move toward being carbon neutral.
> started assessing climate change
impacts on load forecasts, network
ratings and performance under a range
of scenarios.
> continued to monitor and maintain an
awareness of community, political and
regulatory developments relating to
climate change.
34 mAkinG environment And Community A Priority > TransGrid annual reporT 2009
The environmental award was again keenly contested
by TransGrid staff with eight nominations in 2008.
This years award was won by steve cunningham for his work in the development of
methodology to reduce sf6 leakage from equipment. sf6 is a greenhouse gas and
because of the environmental significance there is a need to provide accurate usage
information to record greenhouse gas emissions and to develop a robust management
action plan to reduce future leakage. steve identified potential sources of sf6 losses from
equipment resulting from equipment handling and sampling processes and developed a
number of initiatives to minimise these losses by:
> redesigning and improving gas filling equipment.
> providing sf6 management environmental awareness sessions for substation staff.
> development and trial of cryogenic sf6 recovery system.
> assessing new technology and how it could be utilised.
as a result of the initiatives, TransGrid can demonstrate a reduction in its greenhouse
gas emissions.
TransGrid will monitor its climate change
strategies to ensure they are still relevant as
knowledge of climate change continues to
improve over the coming years.
wAste reduCtion And
PurCHAsinG PoliCy
TransGrid has an ongoing commitment
to incorporating the principles of the
nsW Government’s Waste reduction
and purchasing policy (Wrapp) into its
operations. since 1999, TransGrid has
aimed to support the Wrapp framework by
maximising resource efficiency and reducing
waste generation through avoidance,
reduction, reuse and recycling.
TransGrid’s Wrapp plan includes the
following waste reduction initiatives for the
office environment:
> reduction in paper use
> an increase in recycling
> education initiatives through TransGrid’s
live Green program to inform staff about
environmental issues including resource
consumption.
in the operational environment, TransGrid’s
Wrapp plan includes waste reduction and/
or recycling initiatives for maintenance and
construction activities including:
> vegetation materials
> construction, demolition and excavated
materials.
trAnsGrid FinAlist in
toP environmentAl AwArd
TransGrid is proud to have been selected
as a finalist in two categories of the banksia
environmental awards.
The banksia awards are one of australia’s
most prestigious environmental awards
which recognise those who have made
significant contributions to the environment.

our Live
Green
reuse
recycLe
What is the
Live Green proGram?
TransGrid’s Live Green Program is about
increasing employees’ awareness of
the environmental impacts associated
with the vast range of work activities
we undertake and to encourage our
employees to embrace environmentally
friendly alternatives at work and home.
It will be an excellent opportunity for
all of us to work as a team to achieve
positive change.
From July 2009, TransGrid will have in place
targets for reducing energy and water usage
within all offices as well as targets for reducing the
production of waste matter. TransGrid will actively
engage all employees in this initiative to ensure that
we not only meet our targets but exceed them.
What are the aims of
the Live Green proGram?
> To reduce resource use in our office, depots
and projects and provide sustainable
alternatives.
> To maintain and improve the current
recycling system.
> To introduce the best possible methods for
reduction and understand how to implement
those methods.
> To establish clear targets for measuring the
effectiveness of our Live Green strategies.
> To reduce greenhouse gas emissions
attributable to global warming.
> To regularly communicate results of Live Green
performance and provide updates in office
greening practices.
> To increase our employees’ knowledge of
environmental issues and sustainability at
work and home.
proGram reduce
TransGrid was selected as a finalist in the
Water award for protection, conservation
and enhancements of australia’s freshwater
for the work we have been doing on the
boorowa river recovery program. This
initiative has made tangible improvements
to land biodiversity in the Murray-darling
basin areas.
TransGrid’s partnership with Greening
australia, GreenGrid, was also selected as
a finalist in the land and biodiversity award
for the work done in the re-establishment of
native vegetation across 181 sites.
in ProFile
our live Green campaign
on World environment day 2009, TransGrid launched
its live Green program.
our live Green campaign is all about increasing employees’ awareness of the
environmental impacts associated with the vast range of work activities we undertake
and to encourage them to embrace environmentally friendly alternatives both at work and
at home. The campaign has been an excellent opportunity for the entire organisation to
work as a team to achieve positive change.
The aims of the live Green program are:
> To reduce resource use in our office, depots and projects and provide sustainable
alternatives.
> To maintain and improve the current recycling system.
> To introduce the best possible methods for reduction and understand how to
implement those methods at work and at home.
> To establish clear targets for measuring the effectiveness of our live Green strategies.
> To reduce greenhouse gas emissions attributable to global warming.
> To regularly communicate results of live Green performance to our employees.
> To increase our employees’ knowledge of environmental issues and sustainability at
both work and at home.
The challenge for TransGrid over the next year will be to implement and report on our live
Green targets and establish clear strategies for measuring the success of the program.
TransGrid’s environmental performance is
recognition of our corporate partnerships’
ability to achieve positive environmental
and community benefits at both a local and
regional scale.
Future environmentAl initiAtives
during 2009/10, TransGrid is looking at
either enhancing or developing the following
environmental initiatives:
> our partnership with Greening australia,
GreenGrid, which focuses on making
tangible improvements to land and
biodiversity in the Murray-darling basin.
TransGrid will also continue to build on
the boorowa river recovery program.
> supporting the earthwatch fellowship,
which supports scientific field research
by placing volunteers in the field to work
with scientists.
> sponsorship of the scientist for a day
program and the climateWatch program.
> enhancing the live Green program.
TransGrid annual reporT 2009 > mAkinG environment And Community A Priority 35

TappinG inTo
our coMMuniTy
Community ConsultAtion
community consultation is an essential element in TransGrid’s
overall planning process.
TransGrid has a proud track record of interacting with the
community during its major capital works process. With the
responsibility to maintain and continually plan a safe and secure
electricity supply throughout nsW, TransGrid is committed to
listening to the community so that its concerns are effectively
addressed during the development stages of a project.
Above leFt
Kirsten Velthuis, Environmental Officer
Above Centre
Hayden Burgess, Greening Australia
Above riGHt
Garry Eyles, Substations and General Maintenance
Team Leader with his wife, Joy Eyles.
36 tAPPinG into our Community > TransGrid annual reporT 2009

each TransGrid project requires a unique,
personal community consultation process
as community concerns vary according to
the location of a project.
These concerns can cover an extensive
range of topics such as positioning of
substations, the routing of overhead lines
and cables, noise and dust issues, access
to land and health and safety issues.
new CAPitAl ProjeCt
inFormAtion PACks
in an effort to continue engaging the
community, TransGrid has introduced a
comprehensive capital project information
pack. The pack provides the community
with vital information on key issues such as
the nature of TransGrid’s capital program
delivery process; common landowner
compensation inquiries; activities that may
or may not be permitted around easements
and a guide to successfully planting
vegetation around easements.
The capital project information pack is
playing a key role in supporting the critical
work that our people are doing on the
ground with the community.
TransGrid
Easement Guide
Community And industry
sPonsorsHiPs
TransGrid believes in building strong
and valuable partnerships by actively
engaging and contributing to communities.
TransGrid’s sponsorship framework
supports strategic partnerships with
activities and organisations in the areas
of industry, education, community and
environment.
We assess each sponsorship to ensure
alignment with our corporate objectives.
TransGrid has continued the partnership
with Greening australia, one which aims
to contribute to the environmental wellbeing
of the state. TransGrid has granted
$165,000 to Greening australia over the
last year.
TransGrid has made tertiary contributions to
the following universities to contribute to the
development of technical expertise within
the electricity industry:
> The University of Newcastle:
sponsorship for indigenous australian
engineering summer school ($2,000)
and for the uniss program ($20,900).
> The University of New South Wales:
sponsorship of a lunch at the australian
universities power engineering
conference ($5,500).
> The University of Technology Sydney:
sponsorship of the 2009 accounting
program ($46,800).
TransGrid has also sponsored the following
key events that have a strong presence
within the state and provide industry
networking opportunities to strengthen
the links between TransGrid and the
community:
> Electric Energy Society of Australia
(EESA): sponsorship of the nsW energy
conference ($16,500).
> Department of Premier and Cabinet:
contribution with energy australia to
the cost of hiring a helicopter for the
operation blackbird Weekend blitz on
illegal Trail bike riding in the Hunter
region ($6,000).
> Engineers Australia: sponsorship of the
australian engineering Week calendar to
promote Women in engineering ($962).
> Department of Ageing, Disability and
Home Care: sponsorship of the don’t
dis My ability campaign ($5,500).
> Cancer Council of NSW: sponsorship for
australia’s biggest Morning Tea ($2,592).
> Various public schools and Tafe’s
across the southern area of nsW
($1,950).
> Gauci Children’s Trust: one off donation
to the children of the Gauci family
following family tragedy in the Gulgong
area ($5,000).
in ProFile
Working with the community
at Manildra-parkes
in order to meet the growing energy needs of the central West slopes and plains region
of nsW, TransGrid is building a new transmission line from Manildra to parkes. TransGrid
has been active in engaging the community since the early stages of the project. in
particular, TransGrid has:
> developed a communication and consultation strategy which formed the foundation
for all community and stakeholder interactions.
> sought expressions of interest from the energy market to identify possible
non-network solutions.
> established a designated 1800 number for the consultations.
> Hosted information sessions to inform the community of various aspects of the
project, including corridor options, and environmental assessment requirements,
in addition to seeking the community’s feedback on the project.
> issued a range of materials including display material, advertisements and project
website information.
> engaged an environmental consultancy to develop the review of environmental
factors (ref) and species impact assessment (sis).
> consulted with relevant federal, state and local government agencies in relation to
key environmental aspects of the project.
TransGrid annual reporT 2009 > tAPPinG into our Community 37

GreenGrid
GreenGrid, a project partnership between
TransGrid and Greening australia, is an
award-winning partnership which has
engaged more than 335 landholders and
over a thousand community volunteers who
collectively have erected 375kms of fencing,
planted 224,000 tubestock (200ha) and
direct seeded 1726kms (600ha) of treeline.
The GreenGrid partnership represents a
significant contribution to the community
and the environment which has been
developed over many years.
The multiple benefits to land and biodiversity
have been considerable. so, too, the
carbon offsets: it is estimated that from
2003 to 2007, GreenGrid has sequestered
some 16,000 tonnes of carbon.
The future directions of GreenGrid will
continue to build on past achievements
with a focus on developing the partnership
to offset TransGrid’s ecological and carbon
footprints across the whole business.
Above leFt (left to right)
Stuart Johnston, Toby Jones,
John Tolhurst, Megan Calvert,
Kirsten Velthuis, Geoff Bakewell,
Peter Fawcett, Melinda Pickup,
Bindi Vanzella, Suzanne Sheekey
and Donna Johnston.
molonG GrAssy woodlAnd
Community restorAtion ProjeCt
during october, TransGrid and Greening
australia hosted an on-site community
event to launch their new Molong Grassy
Woodland community restoration project,
aimed at revegetating 30 hectares of
endangered Grassy box Woodland in the
Molong district.
The project involves revegetation experts,
school students, landcare groups, and
staff from TransGrid and Greening australia
undertaking activities to help restore the
woodland.
With only five percent of the original
Grassy box Woodland in the central West
remaining, TransGrid is working with the
community to preserve and revegetate
areas still containing the endangered
species, such as the Molong site. The
project focuses on 25 hectares of woodland
on a property owned by TransGrid which
is part of the high voltage electricity
transmission network in nsW.
TransGrid is very proud of the work already
done and is looking forward to working
further with the Molong community to
restore and provide linkages to other
remnant vegetation in the local area.
38 tAPPinG into our Community > TransGrid annual reporT 2009
eArtHwAtCH
The earthwatch institute is an independent,
non-profit organisation that supports
scientific field research by placing volunteers
in the field to work with scientists. The
partnership between TransGrid and the
earthwatch institute was initiated in 2005 to
support TransGrid’s business commitment to
being environmentally responsible. Through
this partnership, TransGrid employees have
participated in earthwatch field research
projects based around australia.
in 2008, six participants were chosen to
undertake various projects across the
country. These were:
> Gayle de faveri (corporate) –
koala ecology
> kirsten Velthuis (network) –
hawksbill turtles
> stephen paddison (network) –
koala ecology
> Mark Grierson (capital program delivery)
– climate change in the rainforest
> aadil Ganiwalla (capital program
delivery) – climate change in the
rainforest
> Ted adelman (business services) –
hawksbill turtles.
This partnership provides opportunities
for TransGrid staff to advance their
understanding of local environmental issues,
engage with leading conservation scientists
as well as provide opportunities for personal
and professional development.

in ProFile
don’t dis My ability
in ProFile
operation blackbird
during october 2008, TransGrid was involved in a two-day police operation conducted
across a number of areas around the newcastle area, including one of TransGrid’s
easements at killingworth. police were supported by people from agencies including
national parks and Wildlife service, department of lands, the nsW fire brigade and
TransGrid.
The operation was co-ordinated by the department of premier and cabinet and the
Hunter illegal Trail bike riding forum. The objective of the operation was to have a high
profile multi-agency presence within the lake Macquarie police local area command,
with police efforts directed at detecting illegal trail bikes, locating and recovering stolen
motor vehicles, detecting arson, targeting unauthorised use of crown lands and utility
easements and deterring vandalism to public property and the natural environment.
TransGrid committed various resources to the operation, including the chartering of a
helicopter that provided critical support to ground crews.
events such as these strongly support TransGrid’s commitment to social responsibility
and play a role in enhancing our relationship with other government bodies in the
Hunter region.
international day of people with a disability was celebrated around the world
on 3 december. it is a time for people with a disability, their friends, families and
carers to celebrate their abilities with the wider community.
TransGrid was a proud supporter of the nsW Government’s month-long campaign called don’t dis My ability. as part of this
campaign, TransGrid hosted a morning tea for staff during december.
dr Mark bagshaw attended the morning tea as key note speaker. Mark is the Managing director of innov8 consulting Group and was
formerly business development executive for ibM. His primary focus is to demonstrate to the business community that addressing the
issues faced by people who are economically disadvantaged is right for our society and makes good business and economic sense.
The event was very well attended with over 50 people from sydney office represented. The feedback on the seminar was very positive
and we are proud to have played a role in raising awareness of what is being achieved by people living with a disability.
This initiative was truly a whole-of-government approach with the support of 32 government agencies.
Above Dr Mark Bagshaw presenting to TransGrid staff.
leFt TransGrid’s Kathryn Pate participating in Operation Blackbird.
TransGrid annual reporT 2009 > tAPPinG into our Community 39

proMoTinG our
people’s capabiliTies
PuttinG HeAltH And sAFety First
keeping our employees, contractors and the public safe
is essential to the way we do business in TransGrid.
safety is TransGrid’s number one priority. That’s why our health
and safety approach is integrated into business decisions,
processes and everyday activities.
Above leFt
Rachana Amin, Professional Engineer and
Colin Mayer, Senior Project Manager.
Above riGHt (left to right)
Ian Harris, Senior Audit Manager, Clare Mannion, Board
and Executive Support Manager, Cathy Hollamby, Strategic
Development Manager, David van Beek, Corporate Risk and
Audit Manager, and Lyndall Henry, Solicitor.
40 PromotinG our PeoPle’s CAPAbilities > TransGrid annual reporT 2009

TransGrid’s strategies
are aimed at continually
improving health and
safety performance and
maintaining a major focus
on risk management.
This approach is consistent with our
Health and safety policy.
TransGrid’s goal is zero injuries. We
believe all accidents are preventable on
and off the job.
The lost time injury rate (number of lost time
injuries per million man hours worked) for
the 2008/09 year was 3.5, which was an
improvement from 3.7 for 2007/08.
The health and safety strategies for the next
12 months are designed to raise awareness
and have a positive impact in reducing the
injury levels. The severity of injuries over the
past year has also reduced by 35 percent,
based on the average time off per injury.
during the year, 35 percent of all injuries
across TransGrid have resulted from a
slip, trip or fall and 37 percent of all injuries
caused a strain or sprain to our employees.
2008/09
Total Lost Time Incidents (No. of accidents) 7
Total Days Lost (No. of days) 54
Average Lost Time Rate 7.71
Body Location
Unspecified 1%
Groin/Buttock 2%
Stomach/Torso 4%
Multiple Body Injury 9%
Neck/Head/Face/Eye 11%
Shoulder/Arm 11%
Injury Type
Fracture 1%
Multiple 7%
Miscellaneous 9%
Open Wound 15%
Hand Injury 18%
Back 16%
Foot/Ankle 14%
Leg/Knee/Hip 14%
Sprain and Strain 37%
Superficial 16%
Contusion/Bruising 15%
TransGrid annual reporT 2009 > PromotinG our PeoPle’s CAPAbilities 41

TransGrid is licensed by Workcover nsW
as a “Worker’s compensation self insurer”.
TransGrid has performed well in regard to
worker’s compensation costs which have
reduced by 25 percent from the previous
year, and 46 percent since 2005/06. This
figure reflects the 11 percent reduction
in the number of worker’s compensation
claims over the 2008/09 year.
TransGrid’s occupational Health and
safety Management system is certified
to australian standard as/nZs 4801.
TransGrid conducts health and safety
system audits throughout the year and any
non-conformance identified by these audits
is actioned and its completion tracked.
TransGrid’s occupational Health and safety
Management system is overseen by the
executive occupational Health and safety
committee which meets quarterly. This
committee is chaired by the Managing
director and includes the General Manager
or a senior management representative.
TransGrid implements an annual corporate
Health and safety plan, which is based
on the health and safety risks and key
initiatives. each business unit develops its
own customised plan which addresses the
business specific health and safety risks,
based on the corporate Health and safety
plan objectives.
over the year, TransGrid has been focusing
on a number of health and safety initiatives,
all designed to reduce workplace risks and
improve the health of our employees and
contractors. We have been continuing to
implement TransGrid’s fit for Work programme
for our line workers to help improve fitness with
a focus on diet, core strength and flexibility.
This programme has been embraced by all
those employees involved.
42 PromotinG our PeoPle’s CAPAbilities > TransGrid annual reporT 2009
in ProFile
safety day competition a Winner
over 100 people from 21 teams across TransGrid
competed in first aid, fire fighting and risk assessment
events at TransGrid’s annual safety day in september.
The safety day was larger than ever, with events in vital emergency response and risk
assessment disciplines, as well as displays of TransGrid’s safety equipment and initiatives.
The nsW fire brigade was on hand to judge teams as they battled a controlled fire.
representatives from Workcover were also present as actors simulated various injuries,
creating confronting challenges for competitors.
TransGrid’s safety day helps to validate our safety principle of “no shortcuts When it
comes To safety”. The day helps to hone our safety skills which positively influences
a sustained safety culture in all our workplaces. it also provides TransGrid’s board,
executive and senior leaders with the opportunity to reinforce to our people their personal
commitment to employees’ safety.
We congratulate our yass team who were the standout winners of the safety shield.
during 2008/09, TransGrid has concentrated on improving contractor management systems
and processes. a new auditing program for our major construction projects was introduced
during the year, raising the bar on the health and safety performance of our contractors.
seasonal health and safety themes continued across the organisation to provide everyone
with information on relevant health and safety topics and promote wellbeing across the
organisation. examples of the themes are listed below.
Year Quarter Health Theme Safety Theme
2008 spring Quit! do yourself a favour spring! clean your Workspace
2008 summer check Those spots sun sense and safety
2009 autumn stretch before you strain be safe-Watch your Mate
2009 Winter Winter Warm-up peps you up Hazards can Hurt-be alert
below Safety Day Competition

TransGrid’s goal is zero injuries.
We believe all accidents are
preventable on and off the job!
riGHt (clockwise from top left)
Adam Vaux, Graduate Engineer
Roger Braunton, Engineering Officer
Erica Hetherington, Engineering Trainee
Charles Hitchen, Graduate Engineer
every new employee is required to complete
a number of mandatory training courses,
after completing their induction, that are
designed to increase safety awareness and
understanding. These courses cover topics
such as fire awareness, Manual Handling
and risk assessment.
The annual children’s drawing and
calendar competition received 106 entries
for the 2009 calendar. our employees’
children provided a colourful insight to
the theme: “How could we improve safety
and help our environment when we are
on holidays or at home”.
TransGrid believe that by involving families
and children, they will learn the importance
of safety in all aspects of their lives.
Future CHAllenGes
in the coming year, a number of
new initiatives will be developed and
implemented that are designed to
consolidate the existing health and safety
programmes. a key initiative for the next
year will be to improve health and safety
communication through the implementation
of a dedicated Health and safety
communication strategy. This strategy aims
to improve health and safety awareness
at every level, keeping it at the forefront of
people’s consciousness.
in ProFile
TransGrid safety award
another initiative for next year will be to
develop and introduce a Wellbeing program
integrating current employee’s services
and health programs while introducing
new aspects of wellbeing. This program
will help our employees keep focused on
their roles and provide ways to manage
personal issues, therefore reducing the risk
of workplace injury.
understanding the safety culture in an
organisation is a key factor in developing
ways to reduce health and safety risks.
during the coming year, TransGrid plans
to develop a project designed to assess,
measure and improve safety culture.
The annual safety award recognises an individual
or team who have made a significant contribution to
safety in TransGrid and who have developed or applied
safety solutions in an innovative or practical way.
if was very difficult to select only one of the solutions that were nominated. However,
this year the award was presented to Glenn roberts. Glenn, a drafting officer from our
northern region in newcastle, developed a device for the safe removal and replacement
of cable trench, road crossing and drain covers. This initiative provided a solution to
reducing the manual handling issues associated with the repetitive task of removing heavy
and awkward steel covers.
leFt Glenn Roberts
TransGrid annual reporT 2009 > PromotinG our PeoPle’s CAPAbilities 43

PlAnninG A
workForCe
For tHe Future
TransGrid faces a number
of challenges over the
coming years to ensure
that we have the right
skills and capabilities to
drive our multi-billion dollar
capital works program
to fruition.
Above (left to right)
Jemmie Ong, Graduate Accountant,
Justin Holland, Engineering Trainee,
Joseph Diver, Graduate Engineer, Adam
Vaux, Graduate Engineer, and Erica
Hetherington, Engineering Trainee.
one of the key workforce challenges
for TransGrid is an ageing workforce.
TransGrid’s workforce profile shows an
average age of 47.7 years with a significant
number of retirements predicted over the
next five to ten years. TransGrid is also
operating in an environment where many
of the skills and competencies that are
needed to meet current and future business
needs are competitively sought after by
other organisations. We have put in place
a number of programs to address these
challenges including the implementation of
targeted leadership development programs
and increased recruitment of development
level employees in specialised areas.
leAdersHiP develoPment
ProGrAms
TransGrid has been progressively
implementing a range of leadership programs
to address the above challenges. These
programs were implemented throughout
2008/09 with a great response received
from employees. The programs seek to
ensure that leadership is addressed at a
wide range of levels across the organisation.
due to the success of these programs in
2008 TransGrid will be updating them and
offering these development activities to more
employees in 2009/10.
44 PromotinG our PeoPle’s CAPAbilities > TransGrid annual reporT 2009
Executive Leaders Program
The executive leaders program is an
executive-level coaching program designed
for executive managers within TransGrid who
have been identified as potential successors
to more senior executive positions.
each of the participants has had an
individual coach selected for them based on
pre-coaching assessments and interviews.
The participant and coach are able to agree
on any further use of psychometric testing
of 360 degree feedback as well as setting
key goals and milestones.
Senior Leaders Program
The senior leaders program is a structured
program designed to provide development
to selected senior managers identified as
potential successors to senior positions such
as general managers or group managers.
The program commenced in september
2008 and involved participants taking part
in individual development assessments.
This assessment process included
undertaking a very challenging assessment
centre exercise, 360 degree surveys
and psychometric testing. following
this assessment, each individual was
matched with a coach and provided
with a development plan setting out
appropriate activities and/or training,
including attendance at a training course
or appropriate workplace activities. Ten
employees have been through the program
over the last year.

TransGrid’s graduate program
provides holistic on the job
learning and development and
the chance to work with many
different subject experts.
Future Leaders Program
TransGrid’s future leaders program
focuses on developing leaders from within
the organisation and plays a vital role in
ensuring that there are suitable employees
to move into leadership roles, in the medium
to longer term.
The program looks at leadership across all
facets of the organisation and seeks to gain
commitment from employees to actively
participate in their own development.
TransGrid underwent extensive
benchmarking against other organisations
to develop a leadership capability profile
for our company.
The pilot program commenced in october
2007 and 20 candidates from across
TransGrid participated in the program.
participants took part in individual
development planning sessions and
undertook group training in common
development areas. in addition, all
candidates were assigned to work on a
strategic organisational project which was
presented to the TransGrid executive Team
in early 2009.
due to the success of this program
TransGrid intends to have a second intake
of future leader candidates in 2009.
Above riGHt (clockwise from top left)
Ainslee Scott, Business Manager/Corporate
Daniel Bremner, Electrical Fitter
Kayle Mabagos, Executive Management Support Officer
Warick Schroder, Projects Engineer
develoPinG our GrAduAtes
during 2008/09 TransGrid maintained its
commitment to graduate and scholarship
development programs. These programs
play a key role in supporting TransGrid’s
resource planning through the provision of
holistic on the job learning and development
in the disciplines of engineering and
accountancy.
TransGrid currently employs 45 electrical
engineering graduates, two civil engineering
graduates and 10 accounting graduates.
TransGrid’s graduates are provided with
structured training and development in
a variety of areas including leadership
development, individual development plans
and support to gain chartered status with
engineers australia.
The planned rotations provide graduates
with a unique experience allowing them to
gain an insight into different areas of the
business, as well as the chance to work
with our many different subject experts.
during 2008/09 TransGrid continued to
offer scholarships in electrical engineering.
TransGrid currently has two scholarship
holders at newcastle university, one at the
university of Wollongong and two at the
university of Technology sydney. TransGrid
also continues to support a scholarship
holder in environmental studies with the
university of new england.
trAinee enGineerinG oFFiCers
during 2008/09 TransGrid has continued
the successful Trainee engineering
officer program with four new entrants
being accepted. The four year program
currently has 10 trainees undertaking the
advanced diploma of electrical Technology
and working in various engineering and
project groups. To date five trainees have
successfully completed the course and
have taken up engineering officer positions
in TransGrid.
APPrentiCesHiPs
TransGrid continued to have a strong
focus on apprenticeship programs during
the year.
a total of 63 apprentices are employed
by TransGrid each at different levels
of progress. The 2009 intake of 13
apprentices was in keeping with TransGrid’s
commitment to both organisational resource
planning and social responsibility.
TransGrid’s apprentices are part of a
program to address skills shortages across
the electricity industry. apprenticeships are
aligned with national Training packages
involving both on and off the job training.
TransGrid annual reporT 2009 > PromotinG our PeoPle’s CAPAbilities 45

apprentices completing their apprentice
contract have a wide range of career
opportunities available ranging from
tradesperson to Managing director’s
scholar. Their qualifications make them
eligible to apply for positions australia-wide.
PerFormAnCe mAnAGement
a recent review of TransGrid’s performance
review and employee development
program highlighted that the program,
which was introduced in 2006, continues
to be well received and is successfully
embedded in the organisation.
However, improvement opportunities have
been identified including the provision of an
online form to assist with the completion
and tracking of the process. TransGrid is
planning to trial the implementation of an
online system in late 2009.
To assist managers in developing
employees, TransGrid is planning to offer
training during late 2009 on coaching and
managing employee development as well
as the implementation of the outcomes from
a training needs analysis conducted for
TransGrid in 2008/09.
reCoGnisinG our PeoPle
TransGrid recognised the service of our
employees by hosting a 25-year and 40-year
recognition dinner in sydney’s cbd.
during 2008, 25 people were recognised
for their service to TransGrid. This includes
nine employees with 25 years service and
16 with 40 years service. The dinner offered
an opportunity for the organisation to say
thank you for the commitment and loyalty
our employees bring to the industry.
46 PromotinG our PeoPle’s CAPAbilities > TransGrid annual reporT 2009
TransGrid’s Managing director, kevin
Murray, attended the dinner and
commented on our employees’ dedicated
service by stating: “it’s the hard work of
these long standing employees which has
been instrumental in TransGrid being a
leading performer in the electricity industry”.
although these events mark a significant
milestone for our exemplary employees,
TransGrid is committed to passing down
knowledge and experience to its younger
workforce. These employees have been
valuable role models to the younger staff
members at TransGrid, and many have
been instrumental in their personal and
professional career development.
in ProFile
young professionals program launched
TransGrid has commenced the implementation of a structured development program
for young professionals. Whilst this program will have a significant focus on graduates
it will also provide development, training and support for employees ranging from
undergraduate work experience employees to trainees and those in their first role after
the graduate program.
development will focus on advancing an employee’s overall understanding as well as
assisting in placements or job roles. business units will provide resources in the form of
experts for both the seminars and training programs. access for high potential graduates
(and Grade 2 level employees) to TransGrid’s targeted leadership programs will also
be considered.
some improvements in this area have already taken place through the restructuring of
the Graduate committee, now the young professionals committee, to increase the focus
on training and development as well as to broaden the focus beyond graduates and
the implementation of new activities such as the new Graduate induction program and
workplace seminar series for young professionals.
The program is expected to have additional benefits in providing employees with a
chance to network with others and build their understanding of the organisation, assisting
engagement and retention.

TransGrid has been active in considering
how we can better engage our people.
internal communication has proven to
be a vital function within TransGrid and
TransGrid has implemented a whole new
internal communications framework.
stAFF enGAGement A Priority
TransGrid has been active in considering
how we can better engage our people.
internal communication has proven to be a
vital function within TransGrid, and for this
reason, TransGrid has implemented a new
internal communications framework. it is
designed to ensure that all employees can
better identify with TransGrid’s strategic
direction and achievements and assist in
delivering our value of open communication.
There were various levels of consultation in
the development of the framework, including
a survey, inviting employees to offer their
views on communication methods.
The internal communications framework
has been a year in the making and we
have been trialling the application of a
range of communication channels over that
time. We have introduced new electronic
communication channels which have been
valuable in engaging our employees and
soliciting their feedback on the key issues
for TransGrid.
TransGrid looks forward to continuing to
strengthen our internal communication
channels over the next year.
oPPosite toP
Future Leaders Program candidates (left to right)
Graeme Ludewig, Commodity Manager,
Michael Bradbury, Planning Systems Manager,
Judy Green, Manager/Business Services,
Jo-Anne Harrison, Manager/Reporting and Financial
Systems, and Kevin Hinkley, Protection Systems Engineer.
oPPosite leFt
Adam Vaux, Graduate Engineer and
Jemmie Ong, Graduate Accountant.
Above riGHt (clockwise from top left)
Kathryn Pate, Environmental Officer
Vijendra Prasad, Project Manager
Rhys McKay, Technical Support Assistant
Kevin Murray, Managing Director
imProvinG emPloyee serviCes
TransGrid is committed to providing its
employees with a range of diverse services
to ensure ongoing engagement.
Many of our employees have taken the
opportunity to enter into salary sacrifice
arrangements for the purchase of laptops
and for the payment of their electricity bills.
employees have also been salary sacrificing
new motor vehicles through an external
leasing provider. The popularity of our salary
sacrifice benefits has continued to increase
over the last few years.
employees have continued to be a part of
the TransGrid employees Welfare fund.
Through a small weekly contribution,
employees can receive support for
themselves and their families in times of
hardship and access to a range of welfare
and recreational facilities.
TransGrid has continued with the
implementation of its employee assistance
program. The free, confidential counselling
service is available to all employees and
their immediate family for any personal
problems or concerns they may have.
TransGrid’s employees have continued to
reap the benefits of our various regional
sports and social clubs. The clubs’ main
objectives are to provide employees
with the opportunity to meet socially and
have fun. The clubs’ offer a wide range
of discounted tickets to sporting events,
theatre shows and concerts. Various social
nights are organised as well as trivia nights.
Future PeoPle strAteGies
in line with its strategic Human resources
plan, TransGrid will be introducing a range
of people strategies. for each of these
areas TransGrid will continue or refine
current programs and where necessary
develop new initiatives.
Progress on Workforce
Planning Strategies
TransGrid has commenced a project to
investigate the best processes to develop
and implement a more appropriate method
of workforce planning. The key stages
will include identification of planning tools,
identification and analysis of data sources
on workforce needs and communication
and training to managers and other key
contacts on the revised process.
New Manager Induction and Training
in addition to leadership development
TransGrid is concentrating on management
training in a number of key areas. This
training would be practical in nature, with
information provided through either a new
manager induction, group training on key
organisational areas or identified individual
development.
it is proposed that this program will
commence in the later half of 2009 with the
assistance of an external provider to identify
key areas to be included in the program and
appropriate training methods for delivery.
TransGrid annual reporT 2009 > PromotinG our PeoPle’s CAPAbilities 47

Employee Engagement
Strategies and Programs
TransGrid will continue to look at employee
engagement and the role this plays in
retaining employees and influencing
outcomes for the organisation. Whilst a
number of existing programs such as the
employee performance review and the
leadership programs are seen as key to
employee engagement, a number of new
programs or actions will also be undertaken
in 2009/10.
Above
Darren Ngo and Kevin Murray
TransGrid Alumni or
Keep in Touch Programs
during 2009, TransGrid will provide a
process for keeping in touch with a number
of different groups to assist in maintaining
TransGrid as a possible employer of choice
in people’s minds and therefore attracting
them back to the organisation.
The program will allow TransGrid to provide
ex-employees and/or other groups with
targeted messages and information on
current projects and recruitment positions.
The erecruitment program will allow such
information to be targeted to each group to
ensure maximum impact of messages.
48 PromotinG our PeoPle’s CAPAbilities > TransGrid annual reporT 2009
TransGrid will be introducing a range
of people strategies. for each of these
areas TransGrid will continue or refine
current programs and where necessary
develop new initiatives.
leFt (clockwise from top left)
Adam Long, Surveyor
Paul Phillips, General Manager/Business Services
Lyndall Henry, Solicitor
Graeme Buxton, Tradesperson
in ProFile
Managing directors scholarship
On-boarding Process
during 2009/10, TransGrid is looking to
introduce a revised “on-boarding” process
covering how employees are managed
during their first 3-6 months. This revised
process will include revised face-to-face
inductions, an updated on-line induction
process, streamlined probation/entry phase
review and revised entry and exit interviews.
during february, TransGrid awarded a Managing directors scholarship to darren ngo
(substations Team/Wallgrove).
The scholarship program commenced in 2006 and is awarded on an annual basis to a
TransGrid apprentice who has demonstrated high academic achievement, leadership
qualities and an interest in furthering their studies.
following completion of year 10, darren embarked on an electrical apprenticeship at
Wallgrove which he recently completed. in his own time, darren has also completed his
diploma in electrical engineering at Tafe. during his time at Tafe, darren demonstrated
high academic excellence and was presented with an award for outstanding student at
Granville Tafe.
Through the Managing directors scholarship, darren will now commence a bachelor of
engineering (electrical) at the university of nsW. it is very gratifying to see darren who,
through hard work and commitment to study is being rewarded and given an opportunity
to further his study and career.
TransGrid commends darren on his commitment and dedication and wishes him the best
in his future career.

embrACinG
diversity
TransGrid values its
diverse workforce and our
success depends upon it.
TransGrid’s diverse workforce has been
steadily growing over recent years, with
the number of females having risen from
124 to 146 over the last five years.
The objective of TransGrid’s Workforce
diversity strategy is to improve employment
and career development opportunities for
people who are under-represented in our
workforce through specific programs and
to make all staff aware of their rights and
responsibilities with regards to all aspects
of diversity.
TransGrid reviews the strategy annually to
ensure our workforce diversity objectives
are being met. Workforce diversity data
collection forms continue to be forwarded
to all new employees to facilitate the
collation of workforce diversity data.
a primary component of the strategy is
our referral officers, who assist employees
in exploring options in relation to grievances,
harassment and/or discriminatory behaviour.
referral officers provide information and
confidential support to employees regarding
TransGrid’s Grievance Management
procedure.
Above
Rachana Amin, Professional Engineer and
Colin Mayer, Senior Project Manager.
equAl emPloyment oPPortunity (eeo) disClosures 1
Table 1. Trends in the representation of EEO groups 2 % of Total Staff 3
EEO Group Benchmark
or target
2007 2008 2009
Women 50% 14 14 15
aboriginal people and Torres strait islanders 2% 1.1 0.9 0.8
people whose first language was not english 19% 17 19 20
people with a disability 12% 7 5 6
people with a disability requiring
work-related adjustment
7% 0.8 0.5 0.5
Table 2. Trends in the Distribution of EEO Groups 4 Distribution Index
EEO Group Benchmark
or target
2007 2008 2009
Women 100 92 93 92
aboriginal people and Torres strait islanders 100 n/a5 n/a n/a
people whose first language was not english 100 106 104 104
people with a disability 100 97 103 105
people with a disability requiring
work-related adjustment
100 n/a n/a n/a
Notes
1 The format for the eeo disclosures 2009 has been adjusted to meet current reporting
requirements.
2 staff numbers are at 30 june 2009.
3 excludes casual staff.
4 a distribution index of 100 indicates that the centre of the distribution of the eeo group
across salary levels is equivalent to that of other staff. Values less than 100 mean that
the eeo group tends to be more concentrated at lower salary levels than is the case
for other staff. The more pronounced this tendency is, the lower the index will be. in
some cases the index may be more than 100, indicating that the eeo group is less
concentrated at lower salary levels.
5 n/a represents a value that is not statistically valid.
TransGrid annual reporT 2009 > PromotinG our PeoPle’s CAPAbilities 49

AboriGinAl emPloyment
develoPment strAteGy
TransGrid’s aboriginal employment and
development strategy is an integral
component of TransGrid’s Workforce
diversity strategy.
The aboriginal employment and
development strategy has been developed
with reference to the Making it Our Business
– NSW Policy Statement 2006/08 issued by
the nsW premier’s department.
TransGrid is committed to achieving
meaningful and sustainable improvements
in indigenous employment by focusing on
provision of development opportunities and
support to enable aboriginal and Torres
strait islander people to develop their full
career potential.
disAbility ACtion PlAn
TransGrid has a disability action plan which
demonstrates TransGrid’s commitment to
the objectives of the nsW Government’s
disability policy framework, the NSW
Disability Services Act 1993 and the NSW
Anti-Discrimination Act 1977.
The plan has strategies which have been
implemented by TransGrid to respond to the
needs of disabilities of people within nsW.
To further raise awareness of TransGrid’s
disability action plan, TransGrid supported
the nsW Government’s don’t dis My ability
campaign during the year.
etHniC AFFAirs Priority
stAtement (eAPs)
TransGrid carries out community
consultation on proposed major projects
to ensure public understanding and
identification of relevant concerns.
key indicators applicable to eaps include
the maintenance of merit-based recruitment
practices, flexible work arrangements and
accommodating the needs of employees in
regards to cultural or religious customs.
eeo ACHievements – 2008/09
> awareness sessions were provided to
staff on the application of the code of
ethics and conduct.
> information on harassment and
discrimination prevention was updated
and made available on TransGrid’s intranet.
> The Women@TransGrid program and
associated committee was formed
and implemented.
> all new employees attended an
induction program which provides
exposure to TransGrid’s policies and
conditions of employment.
> all human resources procedures were
reviewed regularly to reflect changes in
workforce diversity practice.
> The apprentice intake for 2009
encouraged indigenous and female
applications.
> sponsorship of the don’t dis My ability
campaign.
> sponsorship of the engineers australia’s
engineering Week calendar to promote
women in engineering.
> promotion of eeo achievements
through various internal communication
channels.
> development of a capital project
information pack as part of our capital
works community consultation process.
50 PromotinG our PeoPle’s CAPAbilities > TransGrid annual reporT 2009
eeo PlAnned initiAtives – 2009/10
> review all current Workforce diversity
strategies and plans.
> include Workforce diversity data
collection survey in the induction
program for all new employees.
> continued support for the Women@
TransGrid program within TransGrid.
> implementation of new policies on eeo,
Harassment, discrimination and bullying.
> implementation of training for all
employees and managers on matters
of eeo, Harassment, discrimination
and bullying both at point of induction
and ongoing.
> revision of the current Grievance
Management process including
increasing the profile of the referral/
contact officer network.
> develop a broader advertising strategy
for vacant positions to encourage
applications from female, disabled
and indigenous applicants.
Above TransGrid apprentices
Thomas Paine, Michael Cross,
and Ryan Dunn.

The Women@TransGrid program
aims to provide career opportunities
and progression for all women
in TransGrid.
riGHt (clockwise from top left)
Jenny Do, Land Economist
Rachana Amin, Professional Officer
Jenny Seage, Property Asset Manager
Jo-Anne Harrison, Manager/Reporting and Financial
Systems and Judy Green, Manager/Business Services
in ProFile
Women@TransGrid program
The Women@TransGrid program was implemented during 2008/09 to provide a
mechanism for communication between management and female employees on
issues of interest affecting the recruitment, development and career progression
of women within the organisation.
committee members play a key role in assisting with any agreed activities such as working parties, research and promotional activities.
They also consult with the female employees in their business units regarding current issues and provide feedback on the progress of
Women@TransGrid program.
The primary role of the Women@TransGrid program is to:
> identify, review and develop strategies to assist in providing career opportunities and progression for women in TransGrid across all
grades and professions, including the identification and promotion of development activities.
> identify, review and develop strategies to assist in providing increased representation of women within all levels of management
of TransGrid as well as within non-traditional areas such as trades and engineering, including the identification and promotion of
relevant development and recruitment activities.
> inform senior management of issues which may be restricting the development, progression and recruitment of women within
TransGrid across all areas, regions, professions and grades.
> facilitate organisational support and understanding for female employment and career progression through promotion of the
committee’s activities across the organisation.
Above leFt Top Row: (left to right) Kate Edwards, Tanya Snowdon, Monica Lonergan,
Louise Birkmann, Angela Klepac, Kersha Levi, Roslyn Ryan, and Leanne Keene.
Bottom Row: (left to right) Bobbi Peter, Sophie Dowling, and Judy Green.
TransGrid annual reporT 2009 > PromotinG our PeoPle’s CAPAbilities 51

52 CorPorAte GovernAnCe > TransGrid annual reporT 2009

corporaTe
GoVernance
leAdinG resPonsibly And witH ACCountAbility
TransGrid’s board and management support an environment
that encourages accountability amongst all employees to deliver
a service in the best interests of shareholders, the community
and our stakeholders.
Above riGHt
Peter French at Bannaby Substation.
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 53

our boArd oF
direCtors
mr bruCe Foy
(bComm, ll.b)
Director and Chairman
Mr bruce foy was appointed to the
TransGrid board on 15th december 2005
and was TransGrid’s acting chairman from
1st february 2008 until being appointed
chairman on 30th june 2009.
bruce has held various positions within
the banking industry, most recently as
Managing director country Head of the
inG bank n.V, a position he held until
2005. currently, bruce is a director of the
financial planning association of australia
ltd, a director/Trustee of the first state
superannuation Trustee corporation and a
director of The doctors Health fund ltd and
southern uranium ltd.
bruce was admitted as a barrister of the
supreme court of nsW in 1989 and holds
a bachelor of laws and a bachelor of
commerce, both from the university of
Queensland.
bruce is also a fellow of the australian
institute of company directors. bruce
brings to the TransGrid board extensive
experience in corporate and financial
management.
54 CorPorAte GovernAnCe > TransGrid annual reporT 2009
ms mAtinA PAPAtHAnAsiou
(bComm, ll.b)
Director
Ms Matina papathanasiou was appointed
to the TransGrid board on 13th december
2004.
Matina has over 20 years funds
management and investment banking
experience and has specialised in the
infrastructure sector with significant
experience in the energy sector. Matina is
employed by Qic as a partner of the Global
infrastructure investment team, which
manages over $2.5 billion of investments
in global unlisted infrastructure. prior to
joining Qic, Matina was employed by the
aMp capital infrastructure team as Head of
strategy. she was also a member of aMp
capital’s credit investment committee.
previously, Matina was employed at
bankers Trust and Macquarie bank in
their project advisory and structured
finance groups focussing on infrastructure.
she commenced her career with arthur
andersen where she was employed as
a tax adviser.
Matina holds a bachelor of commerce
(majoring in accounting, finance and
systems) and a bachelor of laws from the
university of new south Wales. in 1985 she
was admitted as a solicitor of the supreme
court of new south Wales (australia).
Matina is currently a director of brisbane
airport, Westlink (M7 Tollroad) and is on
the board and investment committee of
the infrastructure india Holdings fund.
Matina brings to the TransGrid board
strong experience in finance, governance,
commercial negotiations and regulation.
mr neville betts
(GAiCd)
Director
Mr neville betts was appointed to the
TransGrid board on 30th june 1998.
neville is currently the assistant secretary of
the electrical Trades union of australia nsW
branch. neville has been a union official since
1984. He is also a member of the divisional
council power industry committee, deputy
chairman of the acT utilities and light
Manufacturer industry Training advisory board
(iTab), a member of the national Training
advisory Group (nTaG) for the electrical
Transmission and distribution industry, Vice
president of unions acT and a member of
the acT labor council executive, and former
member of the acT Government industrial
relations advisory committee. in addition,
neville is a member of the australian institute
of company directors and a Graduate of the
Mount eliza business school.
neville’s in-depth understanding of the
electricity industry, and its associated
industrial relations, training and union
activities, is an invaluable resource of
the board.

tHe Hon. joHn PriCe Am,
(mAiCd, jP, imar eng, ieng, oFie Aust.)
Director
The Hon. john price aM was appointed to
the TransGrid board on 5th february 2008.
prior to his appointment to the board,
john began his career at the state
dockyard leaving in 1982 as assistant
General Manager and engineering Manager
to take up a consulting role. in 1984, he was
elected to the nsW legislative assembly,
firstly as the Member for Waratah, and in
1999, as the Member for Maitland, retiring
in 2007 as deputy speaker.
john’s previous directorships include
newcastle fM pty ltd and 2Hd
broadcasters pty ltd. He served as
chairman of both companies from 1997 to
1999. john is also a member of the council
of the university of newcastle and chair of
Hunter uni-clinics proprietary limited.
john brings to the board a wealth of
knowledge from his lengthy career in
politics, along with a strong commercial
and administrative background.
ms ClAre mAnnion
(b.ed)
Board Secretary
Ms clare Mannion was appointed as board
secretary in september 2008. clare has
eight years experience at TransGrid in
a variety of administrative roles. clare is
a graduate of the Mount eliza business
school and is currently in her final semester
of the Graduate diploma in applied
corporate Governance at chartered
secretaries australia.
mr miCHAel nuGent
(FCPA, AiCd)
Director
Mr Michael nugent was appointed to
the TransGrid board in august 2008 and
is also currently a director of livecorp
which provides services to the live animal
export sector.
Michael was formerly a non-executive
director of eraring energy, rail access
corporation and snowy Mountains
engineering corporation in the energy and
infrastructure sector. He was previously the
chief executive and an executive director
of Goodman fielder limited (1990–1994)
and the Managing director of elders
agribusiness and an executive director of
its parent company fosters brewing Group
limited (1983-1990). He also held a number
of general management, marketing and
financial positions in the food, transport
and vehicle industries respectively with
Henry jones ixl limited, brambles, ansett
and the british leyland Motor corporation
(1965–1982). early in his career he worked
for peat Marwick now kpMG (1961–
1965) and subsequently completed his
professional accounting training in 1968
and is currently an fcpa.
Michael brings to the TransGrid board
a broad range of skills and experience:
in management, strategy, governance,
marketing and finance. He also has
experience in infrastructure and the
execution of large capital projects across
a broad range of industries.
mr kevin murrAy
(be elec, dip business studies, FAiCd)
Executive Director and
Managing Director
Mr kevin Murray was appointed as an
executive director on the TransGrid board
on 10th june 2005.
as Managing director of TransGrid, kevin is
responsible for the development, operation
and maintenance of the nsW bulk electricity
transmission network.
since his appointment the main focus of
the organisation has been on successfully
delivering an enlarged capital works
program, improving efficiency, maintaining
reliability and preparing a professional and
credible revenue reset submission to the
australian energy regulator for the period
2009 to 2014. There has also been a
continuing focus on safety and environment
as well as an emphasis on succession
planning with a substantial increase in
the recruitment of trainees.
kevin is chairman of TransGrid’s executive
occupational Health and safety committee
and executive environment committee.
kevin also represents TransGrid on a number
of external industry related committees,
including neMMco’s participant advisory
committee and Grid australia. He is a current
director of the energy network association
and the energy industries superannuation
scheme board and a past director of the
national safety council of australia and
the new south Wales energy and Water
ombudsman board.
kevin is also a fellow of the australian
institute of company directors.
kevin brings to the TransGrid board
40 years experience in the transmission
business.
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 55

our exeCutive
leAdersHiP teAm
NETwORk SERvICES
vic Galea
NETwORk
DEvELOPmENT AND
REGuLATORY AFFAIRS
Peter mcIntyre
mr Peter mCintyre
bsc, be (Hons), mbA (technology
management), FieAust, GAiCd
General Manager/Network Development
and Regulatory Affairs
responsible for planning the development
of the transmission network, including
its telecommunications and supporting
infrastructure and systems, and the
associated regulatory processes. The
business unit also manages TransGrid’s
regulatory strategy and relationships, neM
compliance, transmission pricing and
customer connection processes. a primary
challenge for the business unit has been
the management of TransGrid’s revenue
application to the aer for the period
2009 to 2014.
CAPITAL PROGRAm
DELIvERY
Chris FitzGerald
56 CorPorAte GovernAnCe > TransGrid annual reporT 2009
mANAGING DIRECTOR
kevin murray
CHIEF FINANCIAL
OFFICER/COmmERCIAL
Tony meehan
NETwORk
PERFORmANCE
AND OPERATIONS
Lionel Smyth
mr CHris FitzGerAld
bsc, be (Hons), me, Grad dip
(bus Admin), Fie Aust, CP eng
General Manager/
Capital Program Delivery
responsible for supporting the ongoing
performance of TransGrid’s high voltage
transmission assets and associated
protection, metering and communication
secondary systems, through the execution
of TransGrid’s Major capital Works
program. capital program delivery also
provides technical support to other business
units through the delivery of designs and
advice for minor projects, replacement
projects and other asset management
activities. The business unit’s specialised
expertise and capabilities are also applied
to non-regulated projects associated with
TransGrid’s assets.
BuSINESS SERvICES
Paul Phillips
CORPORATE
michael Gatt
mr viC GAleA
be (elec), GAiCd
General Manager/Network Services
responsible for managing and maintaining
TransGrid’s high voltage transmission
system assets and associated protection,
metering, control and communication
secondary systems in accordance with
corporate policies and strategic directions.
The business unit is also responsible for the
maintenance of property and easements
associated with the network assets, the
field management and commissioning of
capital projects and undertaking external
work that is consistent with its expertise.
These objectives are achieved so as not
to compromise safety, community and
environmental commitments.

mr tony meeHAn
b.Comm CPA
Chief Financial Officer
responsible for managing TransGrid’s
commercial and corporate financial
interests. This includes implementing and
managing TransGrid’s investment, banking,
debt portfolio and insurance arrangements.
it includes responsibility for corporate
accounting, taxation, accounting systems
and the development of financial strategies,
policies and systems. The commercial
business unit also incorporates the
procurement function.
mr lionel smytH
be (elec), Grad mgt qual, GAiCd
General Manager/
Network Performance and Operations
responsible for ensuring the security and
reliability of the electricity transmission
network throughout new south Wales in
accordance with the national electricity
rules. The business unit determines
operating policy, strategies and instructions
for network operation; develops facilities
for monitoring and control; operates the
system from the control centres; liaises
with neMMco and distributors to ensure
effective coordination of operating activities
and develops appropriate maintenance and
asset management standards.
mr PAul PHilliPs
be (Hons), bsc, mmgt
General Manager/Business Services
responsible for a wide range of corporate
and business support functions within
TransGrid in the areas of environmental
compliance and services, health and safety,
human resources, information technology
services and business communication
services, regional procurement, fleet
management, logistics and quality and
executive services. business services
develops policies in a consultative manner
through a number of executive committees.
mr miCHAel GAtt
Adv. Cert electrotechnology,
dip. elec engineering,
b.Comm, (business)
General Manager/Corporate
responsible for representing TransGrid
as a corporate entity, by taking an active
role in how TransGrid interacts with
stakeholders, the community, shareholders,
and the general public. This business unit is
primarily responsible for property, corporate
relations, public affairs, corporate
communication, strategic development,
corporate social responsibility, corporate
risk and audit, stakeholder Management,
publications, legal and Media.
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 57

CorPorAte
GovernAnCe
our CHArter
TransGrid was established as a statutory
state owned corporation on 14 december
1998, operating under the Energy Services
Corporations Act 1995.
section 6c of the Energy Services
Corporations Act 1995 gives TransGrid,
as an energy transmission operator, two
principal functions, which are:
> to establish, maintain and operate
facilities for the transmission of electricity
and other forms of energy.
> to provide services for the transmission
of electricity and other forms of energy in
accordance with the relevant regulatory
regime.
The section also empowers TransGrid
to utilise and develop its electricity
transmission facilities to carry out
telecommunications services.
The principal legislation governing
TransGrid’s operations are the Energy
Services Corporations Act 1995, the
Electricity Supply Act 1995 and the State
Owned Corporations Act 1989.
our sHAreHolders
TransGrid’s board and executive believe
that good governance is vital for a highperforming
and sustainable organisation.
The board is accountable to the voting
shareholders for the performance
of TransGrid. There are two voting
shareholders at any one time, each holding
the same number of shares and the same
rights. The shareholders hold their shares
on behalf of the nsW Government.
as at 30 june 2009, TransGrid’s
shareholders were:
58 CorPorAte GovernAnCe > TransGrid annual reporT 2009
> The Hon. eric roozendaal, Mlc,
Treasurer
> The Hon. joe Tripodi, Mp, Minister
for finance.
our minister
from 1 july 2007 to 30 june 2008,
TransGrid formed part of the portfolio of
the Hon. ian Macdonald Mlc, Minister
for primary industries, Minister for energy,
Minister for Mineral resources, and Minister
for state development.
boArd oF direCtors
The board is responsible for providing
effective guidance and direction;
independence in decision making;
an effective system of corporate
governance and executive development
and succession planning.
Board Charter
The principal objectives and functions
of TransGrid and the structure and
composition of the TransGrid board are laid
out in the Energy Services Corporations
Act 1995 No. 95; the State Owned
Corporations Act 1989 No. 134 and
TransGrid’s constitution.
TransGrid’s board operates in accordance
with the broad principles set out in its
board charter. This charter details the
board’s structure and responsibilities and
is reviewed on an annual basis. in addition,
the board has a code of conduct to which
all directors must adhere and which is also
reviewed on an annual basis.
Board Structure
The Energy Services Corporations Act
1995 provides for the board of TransGrid to
consist of:
> the Managing director
> one director to be appointed by
the voting shareholders on the
recommendation of a selection
committee comprising:
i. two persons nominated by the
portfolio minister
ii. two persons nominated by the
labor council of new south Wales,
each being a person selected by
the committee from a panel of three
persons nominated by the labor
council
> at least two and not more than five other
directors to be appointed by the voting
shareholders at their discretion.
The period of appointment of nonexecutive
directors is at the discretion of
the voting shareholders.
one director is to be appointed chairperson
of the board.
Board Responsibilities
The responsibilities of the board are
outlined in the board charter. The main
responsibilities include:
> providing strategic guidance and
direction to the corporation including
contributing to the development of and
approving the corporate strategy.
> reviewing and approving business plans,
the annual budget and financial plans
including capital expenditure initiatives.
> overseeing and monitoring:
– organisational performance and
achievement of strategic goals and
objectives
– compliance with the corporation’s
code of ethics and conduct
– progress on major capital expenditure
and other significant corporate projects.

The board is responsible for providing
effective guidance and direction;
independence in decision making; an
effective system of corporate governance
and executive development and
succession planning.
riGHt (clockwise from top left)
Jon Anderson, Civil Inspector
Gregory Spence, SCADA EMS Asset Manager
Dean Jabarin, Apprentice
Lauren Law, Graduate Accountant
> financial performance.
> ensuring that an effective system of
corporate governance exists.
> ensuring effective management
processes including executive
development and succession planning.
Chairman and Managing Director
The board charter outlines the role of the
chairman and Managing director.
The chairman is to provide leadership
and promote the cohesiveness and
effectiveness of the board. key roles to be
performed by the chairman include:
> assisting the board to develop good
relationships with the shareholding
ministers and portfolio minister, with the
Managing director and with other key
stakeholders and interested parties.
> assisting individual directors, and the
board as a whole, to understand their
role, responsibilities and accountabilities.
> Helping directors understand their risks
and liabilities as individual members and
as a board.
> ensuring a comprehensive agenda is
presented to each meeting of the board.
section 20l (2) of the State Owned
Corporations Act 1989 and article 16.7 (a)
of TransGrid’s constitution provide that the
Managing director is responsible for the
day to day management of the operations
of TransGrid in accordance with the general
policies and specific directions of the board.
Board Induction
upon their appointment to the TransGrid
board, directors undergo an induction
program to enable them to clearly
understand the expectations and
requirements of the board. briefings with the
chairman, the Managing director and the
board secretary are arranged. a number
of essential documents are also provided
during this time, including:
> a letter of appointment
> a deed of indemnity
> a list of fellow directors and the chair and
contact details
> a copy of the business’s constitution
> a copy of the board code of conduct
> copies of the board’s and committee
charters
> a copy of the most recent statement
of corporate intent and annual report
> The board and committee meeting
schedule
> organisation charts
> a copy of the previous month’s meeting
papers and minutes.
Terms of Office and Remuneration
in accordance with schedule 8, clause 5 of
the State Owned Corporations Act 1989, a
director may be appointed to hold office for
a period not exceeding five years.
The remuneration of each non-executive
director is paid out of TransGrid funds, and
is determined by the shareholders. The
total income received, or due receivable,
by all directors of TransGrid is listed in the
notes to the financial statements (note
26). The Managing director is not entitled
to any additional remuneration for being an
executive director.
Commitment
Twelve board meetings and one additional
board and executive corporate planning
session were held in the year ending 30
june 2009. of the twelve board meetings,
two were held at the sydney West regional
office. The first of these was held in
september 2008 to coincide with the
TransGrid safety day and the second in
december to meet with staff and to present
the chairman’s safety and environmental
awards.
Conflict of Interest
The board code of conduct stipulates
that a director must disclose interests
to the board (which includes positions
and pecuniary interests) in corporations,
partnerships or other businesses that may
be relevant to the activities of the board or
an associated committee. a register of such
interests is maintained by TransGrid.
The following conflicts of interest were
declared:
> at the board meeting held on Tuesday
17th february 2009, j price declared
a conflict of interest with the agenda
item ‘Tamworth to Gunnedah 66kV
Transmission line refurbishment’.
> at the board meeting held on Tuesday
16th june 2009, M nugent declared a
conflict of interest with the agenda item
on epuron Wind farm.
There have been no other conflicts
of interest declared for the year ended
30 june 2009.
Independent Professional Advice
directors and board committees have
the right, in connection with their duties
and responsibilities, to seek independent
professional advice at TransGrid’s expense.
Disclosure Obligations
TransGrid has a framework in place to
ensure that it meets its disclosure reporting
obligations to shareholding ministers.
The TransGrid board aims to ensure that
our shareholding ministers are informed of
all major developments affecting TransGrid’s
state of affairs. This is primarily facilitated
through a range of disclosure and reporting
tools including meetings, progress reports,
the TransGrid annual report, regulatory
documents and the TransGrid website.
Meetings of the Board
The number of meetings of the board of
directors held during the year ended 30
june 2008, and the number of meetings
attended by each director is disclosed on
page 60.
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 59

Name TransGrid Board
meetings
Attended
meetings
Entitled to
Attend
60 CorPorAte GovernAnCe > TransGrid annual reporT 2009
Board Audit and
Risk Committee
meetings
Attended
meetings
Entitled to
Attend
Board Committee –
Remuneration and
Structure
meetings
Attended
meetings
Entitled to
Attend
Board Regulatory
Committee
meetings
Attended
mr B E Foy 12 12 5 5 4 4 6 6
mr k N murray 12 12 5 5 4 4 6 6
ms m Papathanasiou 10 12 4 5 x x 6 6
mr N Betts 9 12 x x x x 6 6
The Hon. J Price 11 12 5 5 4 4 1x 1x
mr m Nugent* 10 10 1x 1x 4 4 1x 1x
* appointed 1/08/08
x not a member of relevant committee
1 director attended committee meeting as an invitee
Strategic Planning
on an annual basis, the TransGrid board
and executive facilitate strategic planning
conferences to identify the organisations
corporate objectives for the following year.
The outcomes of this planning is reflected in
the Statement of Corporate Intent (sci) and
the Corporate Plan.
The sci and corporate plan set out
TransGrid’s strategic direction which
becomes the basis for individual business
unit plans. TransGrid’s corporate plan
defines the key objectives, strategic
initiatives and performance targets to
measure achievement. it also includes
a detailed overview of our capital works
program for the forthcoming year.
both the sci and corporate plan are
presented to the shareholding ministers.
Board Committees
To assist the board in fulfilling its corporate
governance responsibilities, it utilises the
executive board committee, the board
audit and risk committee, the board
committee – remuneration and structure
and the board regulatory committee. a
charter governs these committees and
the board delegates specific powers
and procedures. each charter details the
committee’s primary function, structure and
responsibilities. each charter is reviewed on
an annual basis.
The board audit and risk committee,
the board committee – remuneration
and structure and the board regulatory
committee meet on at least a quarterly basis
or at such times as considered appropriate.
The executive board committee meets as
and when required.
non-executive directors chair the board
committees. senior executives and
management may be invited to attend
committee meetings. The Managing
director is also a member of the board
committees (except the board audit and
risk committee).
on an annual basis, the board and
executive facilitates strategic planning
conferences to identify the organisations’
corporate objectives.
leFt (clockwise from top left)
Michael Cross, Apprentice
Greta Metz, Information Communications Technology Project Manager
Michael Stemmer, Tradesperson
Graeme Ludewig, Commodity Manager
oPPosite
Peter Sutrin, Apprentice
meetings
Entitled to
Attend
a report detailing the items considered by
the committee is tabled at the following
board meeting.
Executive Board Committee
The executive board committee consists
of the following directors:
Mr B Foy (Chair of the Committee)
Mr K Murray
The primary function of the executive
board committee is to consider matters
between board meetings which would
otherwise require board approval. The
matter is delegated to the executive board
committee at the prior board meeting
and a report is provided to the board at
the meeting following the exercise of the
delegation.
Board Audit and Risk Committee
The board audit and risk committee
consists of the following directors:
The Hon. J Price (Chair of the Committee)
Mr B Foy
Ms M Papathanasiou

The primary function of the board audit
and risk committee is to assist the board
in fulfilling its oversight responsibilities by
reviewing the overall audit process of the
corporation; the system of internal control
which management and the board of
directors have established and the financial
information which will be provided to the
shareholding ministers and others.
Board Committee –
Remuneration and Structure
The board committee – remuneration and
structure consists of the following directors:
Mr B Foy (Chair of the Committee)
The Hon. J Price
Mr N Nugent
The primary function of this board
committee is to assist the board in
determining the remuneration and
employment conditions of TransGrid’s
executive and senior management and
reviewing the organisational structure of
the corporation.
Board Regulatory Committee
The board regulatory committee consists
of the following directors:
Ms M Papathanasiou (Chair of the Committee)
Mr N Betts
Mr B Foy
Mr K Murray (Managing Director)
This board committee assists the board in
managing and reviewing regulatory changes
and/or regulatory decisions arising from
the national electricity law, rules and
regulations. during the year ending 30
june 2009 this committee’s main focus
was on overseeing the preparation of
the revenue submission to the aer. This
committee was disbanded in May 2009
upon completion of the 2009 to 2014
revenue reset process.
Remuneration of Directors
non-executive director/ –
Mr bruce foy $129,148
non-executive director –
Ms Matina papathanasiou $76,844
non-executive director –
The Hon. john price $76,012
non-executive director –
Mr neville betts $72,549
non-executive director* –
Mr nugent $58,050
* appointed 1st august 2008.
exeCutive leAdersHiP teAm
Performance Statements
mr k murray, managing Director,
was assessed by the board as having
achieved all key performance criteria set
in the corporate plan and the statement
of corporate intent with the nsW
Government. This included meeting the
capital, operating, reliability and efficiency
targets set by the aer for the 2004 to 2009
period and the submission and finalisation
of TransGrid’s revenue determination for the
2009 to 2014 period.
mr P mcIntyre, General manager/
Network Development and Regulatory
Affairs, was assessed by the Managing
director as having achieved all performance
criteria, including achievement of the
transmission planning and development
requirements to facilitate TransGrid’s
significant capital program, the production
of the 2009 annual planning report, the
implementation of the largest network
support arrangement in the national
electricity Market, improved customer
and stakeholder relationships, the effective
management of TransGrid’s input to the
development of the regulatory regime
for transmission in the neM and the
management of TransGrid’s 2009 to 2014
revenue reset process with the aer.
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 61

mr C FitzGerald, General manager/
Capital Program Delivery, was assessed
by the Managing director as having
achieved all performance criteria, with the
highlight being the successful achievement
of the major capital works program for the
2004 to 2009 regulatory period with more
than $500 million in expenditure on over
60 projects during 2008/09. included in the
major capital works program for this past
year are the critical Western 500kV project
being delivered on time and to budget, with
bayswater and Mt piper switchyards being
energised at 500kV and also the Macarthur
and Wagga north substations reaching
practical completion during this time.
significant progress has been also made on
the delivery of the challenging 2009 to 2014
capital program with more than 80 percent
of expenditure in the 2009/10 year already
committed with contracts and the supply
to the cbd project progressing to schedule.
The increased capability of the capital
program delivery business unit to continue
to deliver the large program of works has
been key to these achievements.
mr P Phillips, General manager/Business
Services, was assessed by the Managing
director as having achieved all performance
criteria including warehouse rationalisation,
resource planning, implementation of the
senior Manager and executive development
programs and ongoing management of
the future leaders program, leading the
information and communication Technology
enhancement programs; TransGrid’s safety
and environmental commitments and
maintaining certifications of TransGrid’s
safety Management system to as 4801,
the environmental Management system
to iso 14001 and Quality system to
iso 9001.
62 CorPorAte GovernAnCe> TransGrid annual reporT 2009
mr v Galea, General manager/Network
Services, was assessed by the Managing
director as having achieved all key network
reliability, availability, maintenance and
construction targets within approved
budgets and timeframes while maintaining
high level safety performance and
environmental compliance. He delivered
and commissioned all planned major
projects and asset replacement programs.
He developed strategies and new concepts
that will improve product delivery processes
to manage future capital works objectives
and reduce some operational costs. He
maintained a sustainable strategic Human
resource plan that includes successful
plans to meet future requirements.
mr T meehan, Chief Financial Officer,
since november 2008, was assessed
by the Managing director as having
achieved all performance criteria,
including the effective management of all
TransGrid’s financial functions; review of
TransGrid’s debt, foreign exchange and
commodity risk management strategies
and the implementation of new policy
arrangements; development of financial
strategies for the 2009 to 2014 regulatory
period; development of new arrangements
for pricing of negotiated services and
restructure of the commercial business
unit to meet business requirements.
mr L Smyth, General manager/Network
Performance and Operations, was
assessed by the Managing director as
having achieved all performance criteria
including network reliability and availability
targets; improving the systems and
processes across the business unit
including real time line rating and digital
aerial inspection technologies; producing a
new network Management plan; upgrading
the state control centre and providing
continued leadership in restructuring of
the business unit and refining the Virtual
control room.
mr m Gatt, General manager/Corporate,
was assessed by the Managing director
as having achieved all performance
criteria, including assessing the needs
of stakeholders; managing media and
government relations activities; delivering
effective corporate communications, the
property portfolio, legal services and corporate
planning functions. The corporate business
unit also refined processes for memberships
and stakeholder management as well as
emergency communications protocols.
Remuneration Objective
The objective of TransGrid’s executive
remuneration framework is to ensure that
reward for performance is competitive and
appropriate for the results delivered. The
framework aligns executive reward with
the achievement of strategic objectives
and the creation of shareholder value, and
it conforms to market best practice for
delivery of reward.
The board committee – remuneration
and structure determines executive
remuneration. each year the committee
commissions a report from an external
executive remuneration consultant detailing
equivalent market remuneration and a
recommendation on suitable remuneration
levels for all executive officers.
all executive officers have in place a
written performance agreement aligned to
TransGrid’s corporate goals. performance
outcomes are matched to performance
targets, with remuneration based on
documented performance levels.

oPPosite (left to right)
Garrie Chubb, Manager/Network Planning and
David Fayyad, Corporate Relations Manager.
riGHt (clockwise from top left)
Peter McIntyre, General Manager/Network
Development and Regulatory Affairs
Joseph Diver, Graduate Engineer
David Gazzard, Engineering Officer
Gavin Thomas, Graduate Accountant
Remuneration Paid
Name Title Remuneration Paid (2008/09)
Mr kevin Murray executive director and Managing director $654,842
Mr peter Mcintyre General Manager/network development and regulatory affairs $322,637
Mr chris fitzGerald General Manager/capital program delivery $314,301
Mr paul phillips General Manager/business services $292,908
Mr Vic Galea General Manager/network services $300,802
Mr Tony Meehan chief financial officer $265,911
Mr lionel smyth General Manager/network performance and operations $279,409
Mr Michael Gatt General Manager/corporate $261,560
Mr john byrne (retired 22/8/08) General Manager/commercial $58,771
Qualifications
Name Position Qualifications
Mr kevin Murray executive director and Managing director be (elec), dip bus studies, faicd
Mr peter Mcintyre General Manager/network development and regulatory affairs bsc, be (Hons), Mba (Technology
Management), fieaust, Gaicd
Mr chris fitzGerald General Manager/capital program delivery bsc, be (Hons), Me, Grad dip
(bus admin), fie aust, cp eng
Mr paul phillips General Manager/business services be (Hons), bsc, MMgt
Mr Vic Galea General Manager/network services be (elec), Gaicd
Mr Tony Meehan chief financial officer b.comm, cpa
Mr lionel smyth General Manager/network performance and operations be (elec), Grad Mgt Qual, Gaicd
Mr Michael Gatt General Manager/corporate adv. cert electrotechnology,
dip. elec engineering,
b.comm (business)
faicd – fellow australian institute of company directors
Gaicd – Graduate australian institute of company directors
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 63

GuArAntee oF serviCe
TransGrid has defined service commitments
with our customers through our connection
agreements. TransGrid’s service levels
are monitored by the aer and the nsW
department of Water and energy (dWe).
leGislAtive CHAnGes
Australian Energy Market Amendment
(AEMO and Other Measures) Act 2009
This act amended the Renewable Energy
(Electricity) Act 2000 and Trade Practices
Act 1974 to replace reference to the
national energy Market Management
company limited with the australian energy
Market operator limited, to reflect the
commencement of a single national energy
market operator for both the electricity
and gas sectors from 1 july 2009. This is
an important reform for the energy sector.
The aeMo will assume the responsibilities
and functions of existing gas and electricity
market operators, including the national
electricity Market Management company.
Carbon Pollution Reduction Scheme Bill
2009 (and other associated proposed
legislation)
This bill is part of a package of six bills to
give effect to the carbon pollution reduction
scheme. The bill gives effect to australia’s
obligations under the united nations
framework convention on climate change
and the kyoto protocol by outlining: entities
and emissions covered by the scheme; liable
entities’ obligation to surrender emission
units corresponding to their emissions; limits
on the number of emissions units that will be
used; the nature and allocation of australian
emissions units; mechanisms to contain
costs; linking to other emissions trading
schemes; assistance in relation to emissionsintensive
trade-exposed activities and coalfired
electricity generators; voluntary inclusion
of reforestation activities under the scheme;
the australian national registry of emissions
units; and monitoring and enforcement.
64 CorPorAte GovernAnCe > TransGrid annual reporT 2009
TransGrid has already commenced
proactively managing the impact of climate
change on its operations and will be well
placed to respond to legislative change
affecting it.
Consumer resPonse
TransGrid receives property information
inquiries from solicitors, conveyancers and
the general public regarding TransGrid’s
rights and interests that may affect title
to land. for the year ending 30th june
2009, TransGrid responded to 51,220
such inquiries. response times were within
designated timeframes.
More than 90 percent of these inquiries
were processed using online access
facilities provided by the central register
of restrictions administered by the
department of lands.
judiCiAl deCisions
There were no judicial decisions affecting
TransGrid during the year.
ConsultAnt Fees
during the year, $53,526 was spent
on consulting services relating to the
preparation of environmental impact
assessments.
implementation of risk management
strategies are the responsibility of all
levels of management within TransGrid.
leFt (clockwise from top left)
Steve Varelis, Senior Technology Analyst
Sean Nicolas, Engineering Officer
Justin Holland, Engineering Trainee
Lindsay Fulwood, Civil Inspector
oPPosite (left to right)
Graduate Engineers: Charles Hitchen, Connie Liang,
Jeremy Blackford, Omar Hassanein, Owen Crampton
risk mAnAGement And insurAnCe
The executive audit and risk committee is
responsible for ensuring TransGrid’s risks
are identified and effectively managed.
implementation of risk management
strategies are the responsibility of all levels
of management within TransGrid and a
framework exists to ensure that all risks are
proactively and explicitly managed on an
ongoing basis.
The corporate audit and risk group
provides assistance in the development
and maintenance of enterprise-wide risk
management plans, training staff in all
aspects of risk management and the
ongoing verification and review of risk
mitigation actions across the organisation.
TransGrid’s insurance strategy is to obtain
the most comprehensive insurance
coverage available at the most economical
cost. each year, TransGrid examines the
risks for which it is prepared to seek cover,
the available insurance coverage or other
means to meet the remaining risks and the
costs of covering these risks.

FrAud Prevention
TransGrid will not tolerate fraud or fraudulent
conduct, regardless of whether the fraud
has been perpetrated on it by its employees
or by external stakeholders.
appropriate steps will be taken to protect
the organisation from the risk of loss arising
from fraud.
To achieve this TransGrid has a fraud
prevention strategy/plan which has seven
main elements including:
> organisational responsibility
> fraud risk assessments
> notification/reporting systems
– internal
– external
> detection systems
> assessments and investigations
> conduct and disciplinary systems, and
> awareness
– employee awareness
– community and customer awareness
a key component is the code of
ethics program.
TransGrid conducts its business based
upon its values. These values are the driving
forces that ensure that we continue to
aim for the highest standards of integrity,
honesty and fairness in the way we
work and in our dealings with our many
customers, contractors and suppliers.
TransGrid maintains a suite of codes:
> TransGrid directors code of ethics and
conduct – guidelines for board directors
and associated board committees
> our code of ethics and conduct –
guidelines for all employees
> business ethics – a guide to contractors,
customers and suppliers.
during 2008 each of these codes were
reviewed and reissued.
all employees were provided with a copy of
our code of ethics and conduct and were
provided with a briefing from their manager/
team leader on the revised code.
all new employees receive a copy of our
code of ethics and conduct and are made
aware of the importance of maintaining
high ethical standards through discussions
with their manager/team leader, as well as
through an online induction program which
relays the importance of TransGrid’s image
and reputation and the part they can play
in this.
TransGrid is a long standing corporate
Member of the st james ethics centre
and provides access for all employees to
publications from the centre both in hard
copy and via publication on our intranet.
TransGrid maintains a 24-hour ethics
Helpline which allows easy access for staff
to seek ethical advice or relay concerns
in a confidential manner. in 2008 the
revised code of ethics and conduct and
the reviewed business ethics Guide also
published the contact details for the st
james ethics centre ethic-call, providing
employees with another option to receive
confidential advice on any ethical situation
that they may be facing.
Freedom oF inFormAtion
TransGrid received two freedom of
information (foi) applications under the
Freedom of Information Act 1989 in
2008/2009.
The following table provides an overview
of responses to requests made under the
Freedom of Information Act 1989.
FOI Requests
TOTAL
2008–09 2007–08
numbers of
requests received
2 0
brought forward 0 0
completed 0 0
Transferred out 0 0
unfinished (carried
forward)
0 0
Granted in full 0 0
partially granted 2 0
refused 0 0
fees received $35 0
during the 2008/2009 year:
> The impact of the requirements of the
act on TransGrid’s activities was minor.
> no issues arose in connection with
TransGrid’s compliance with the
requirements of the act.
> no determination by TransGrid was the
subject of review by the ombudsman,
the administrative decisions Tribunal or
the supreme court.
all freedom of information requests can be
directed to:
freedom of information officer
201 elizabeth street
po box a1000
sydney south nsW 1235
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 65

stAtement oF AFFAirs
information required under section 14(2)
of the Freedom of Information Act 1989,
is located as follows:
> The agency’s structure and functions:
about TransGrid
> The way its functions affect the public:
environment and community
> How the public may participate in
agency policy development: planning,
environment and community
> The kinds of documents the agency
holds: promotion
> How members of the public can
access and amend agency documents:
freedom of information.
PrivACy
TransGrid is committed to adherence with
the principles of sound privacy practice
to ensure that personal information is
managed in accordance with the Privacy
and Personal Protection Act 1998.
TransGrid has a privacy Management
plan in place to facilitate adherence to the
principles of the act and to communicate
to our employees how privacy is managed
within the organisation.
TransGrid’s privacy Management plan is
available to all of our employees via the
company intranet, Transnet.
66 CorPorAte GovernAnCe > TransGrid annual reporT 2009
siGniFiCAnt Committees
Executive Audit and Risk Committee
The executive audit and risk committee
ensures that the effectiveness of
management control is maintained.
it oversees the setting of policies, coordination
and communication of risk
management strategies and ensures
that TransGrid’s overall risk management
framework operates effectively.
Executive Occupational Health
and Safety Committee
The executive occupational Health and
safety committee provides direction
on policies and procedures relating to
occupational health and safety matters,
and provides executive support to location
managers and occupational Health and
safety committees.
Executive Revenue Reset Committee
The executive revenue reset committee
implements and develops the revenue
reset proposal in accordance with
the strategy approved by the board.
The committee endorses the revenue
proposal’s key messages and structure.
it determines business unit responsibilities
and provides resources for the revenue
reset project.
Executive Environment Committee
The purpose of the executive environment
committee is to set corporate
environmental policy and monitor the
effectiveness of environmental management
within TransGrid.
Capital Works Program
Steering Committee
The capital Works program steering
committee monitors the capital works
program in TransGrid and facilitates and
coordinates the delivery of the program
and specific individual projects as required.
The committee also monitors the efficiency
and effectiveness of the capital works
delivery process.
Executive Protective Security Committee
The executive protective security
committee oversees and coordinates
protective security and business continuity
activities within TransGrid.
Information Technology
Executive Committee
The information Technology executive
committee (iTec) is the governing body
for iT-related service and investments
within TransGrid. The iTec sets TransGrid’s
strategic direction for information technology.
The iTec’s key role is to ensure that iT
investments align with business priorities
and deliver value to enhance business
performance. To execute this role, the
iTec requires business units to provide
information on iT performance and costs.
This reporting improves transparency and
accountability for iT costs across TransGrid.

TransGrid’s executive committees
play a vital role in ensuring the ongoing
achievement of our corporate objectives.
riGHt (clockwise from top left)
Barry Gifford, Senior Information
Communications Technology Project Manager
Jemmie Ong, Graduate Accountant
Lionel Smyth, General Manager/
Network Performance Operations
Natalie Lukic, Information Technology
Asset Management Coordinator
Executive Team
Executive Audit and
Risk management
Committee
Executive
Occupational
Health and Safety
Committee
Executive Revenue
Reset Committee
Executive
Environment
Committee
Capital works
Program (CAPEX)
Steering Committee
Executive
Protective Security
Committee
Information
Technology
Executive
Committee (ITEC)
kevin Murray ~ ~ ~ ~ ~ ~ ~
chris fitzGerald ~ ~ ~ ~ ~ ~
Vic Galea ~ ~ ~ ~ ~ ~ ~ ~
Michael Gatt ~ ~ ~ ~ ~ ~ ~
peter Mcintyre ~ ~ ~ ~ ~ ~
paul phillips ~ ~ ~ ~ ~ ~
lionel smyth ~ ~ ~ ~ ~ ~ ~ ~
Tony Meehan ~ ~ ~ ~ ~ ~
david van beek ~
ian Harris ~
kenneth Mccall ~
john robinson ~
Wayne Glanville ~
kevin dodds ~ ~
john Howland ~ ~
stuart johnston ~
Megan calvert ~
don paton ~
daniel sartor ~
steven jones ~ ~
andrew
kingsmill
~
Michael Milne ~
peter Holland ~
Garrie chubb ~
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 67

overseas visits
Below is a listing of the overseas visits undertaken by TransGrid employees over the reporting period.
overseas visits provide TransGrid with the opportunity to benchmark our performance with other leaders in the industry and learn from
them. overseas visits play a key supporting role in helping TransGrid determine the most efficient processes in building a safe, reliable and
secure transmission network.
Name Title Countries Purpose of Visit
d. Guille engineering officer new Zealand inspection of materials and drawings for the 500kV Mt piper and
Bannaby/Wollar 500kV substation projects.
K. dodds Manager new Zealand participation in the asia pacific utilities Group steering Committee
Meeting.
p. phillips General Manager russia Meetings with psC-opTen on phase 3 of the aerial laser survey
project.
d. novakovic project engineer russia Meetings with psC-opTen on phase 3 of the aerial laser survey
project.
e. lamplough professional officer austria and Germany Witness testing of siemens 145kV shunt reactor for the Beaconsfield
West substation.
J. Mouatt professional officer Japan Witness testing of the phase-shifting transformer for armidale
substation.
G. saluja professional officer Japan Witness testing of the phase-shifting transformer control system for
armidale substation.
n. smith Manager usa attendance at the electric power research institute safety switching
Conference.
H. allen engineering officer Finland Witness testing of reactors for the sydney north and sydney east
capacitor installations.
C. stevens professional officer Japan Witness testing of the phase-shifting transformer control system for
armidale substation.
s. Jones Manager new Zealand attend CiGre High Voltage equipment panel meeting.
M. Grierson engineering officer Thailand Witness testing of 132kV transformer for supply to Coffs Harbour
substation.
G. spence Manager sweden sCada / eMs upgrade project design review Meeting.
a. Hammond sCada specialist sweden sCada / eMs upgrade project design review Meeting.
W. Goldsmith sCada specialist sweden sCada / eMs upgrade project design review Meeting.
T. Meehan Chief Financial officer uK undertake work associated with placement of TransGrid’s
insurance coverage.
a further two trips, of which the majority of costs were funded by other organisations, were undertaken by TransGrid officers.
Name Title Countries Purpose of Visit
M. Grierson engineering officer Germany Witness testing of 330kV current transformers at the areVa factory.
a. Manglick Manager indonesia attendance at the aorC-CiGre and study Committee C1 Meetings.
68 Corporate GovernanCe > TransGrid annual reporT 2009
overseas visits provide TransGrid
with the opportunity to benchmark
our performance with other leaders
in the industry.
left (clockwise from top left)
Ryan Dunn, Apprentice
Meredith Sturman, Manager/Reset Process Improvement
Ralph Meeks, Engineering Officer
Don McKay, Network Control Manager

Credit CArd usAGe
credit card usage in TransGrid is in accordance with its detailed documented procedures. TransGrid continues to promote the correct
usage of its corporate credit cards and there is a continuous review of usage characteristics and authorisations.
rePortinG exemPtions
The following reporting exemptions have been granted by nsW Treasury to enable financial reporting requirements that apply, to be broadly
consistent with corporations act reporting requirements, given that the entity operates in the competitive national electricity Market:
Statutory Requirements Act/Regulation References Comments
Budgets
s.7(1)(a)(iii)arsba
• detailed budget for the year reported on
• outline budget for next year s.7(1)(a)(iii)arsba
• particulars of material adjustments to
detailed budget for the year reported on
cl 6 arsbr
report of operations s.7(1)(a)(iv)arsba exemption subject to the condition that information
relating to the “summary review of operations” is to be
disclosed in a summarised form.
Management and activities schedule 1 arsbr exemption subject to the condition that relevant
information is to be disclosed in a summarised form.
research and development schedule 1 arsbr
Human resources schedule 1 arsbr
consultants schedule 1 arsbr exemption subject to the condition that the total
amount spent on consultants is to be disclosed
along with a summary of the main purposes of the
engagements.
land disposal schedule 1 arsbr
payment of accounts schedule 1 arsbr
Time for payment of accounts schedule 1 arsbr
report on risk Management and insurance schedule 1 arsbr exemption subject to the condition that relevant
activities
information is to be disclosed in a summarised form.
investment performance cl 12 arsbr
liability Management performance cl 13 arsbr
Abbreviations:
arsba annual reports (statutory bodies) act 1984
arsbr annual reports (statutory bodies) regulation 2005
TransGrid annual reporT 2009 > CorPorAte GovernAnCe 69

eleCtroniC serviCe delivery
TransGrid provides electronic services
to our staff and partners. This includes
facilitating the ability to securely access
electronic corporate applications remotely
and through the internet.
Promotion
TransGrid is committed to providing a
variety of communication vehicles to inform
the public, customers, stakeholders,
employees and suppliers. Throughout the
reporting period, publications included:
> annual report
> nsW annual planning report
> corporate plan
> network asset Management plan
> easement Guide
lAnd disPosAl
The following surplus land was disposed of during 2008/09:
70 CorPorAte GovernAnCe> TransGrid annual reporT 2009
> eMf brochure
> capital Works process brochure
> Variety of brochures and advertisements
informing stakeholders about TransGrid’s
projects (e.g. fact sheets, project
newsletters).
industriAl relAtions PoliCies
And PrACtiCes
TransGrid continued to consult with unions
and employees on a range of industrial
matters. This consultative approach has
resulted in no time lost as a result of
organisational industrial disputes during the
reporting period.
HeritAGe mAnAGement
TransGrid does not have any assets listed
as heritage items as defined under the
legislation.
Cost oF AnnuAl rePort
TransGrid’s annual report was produced
under the guidance of TransGrid’s
corporate communications Manager in
conjunction with an external graphic design
firm. The total external cost incurred in
the production of the annual report was
$45,268.
The annual report is available on TransGrid’s
website (www.transgrid.com.au).
Name Lot DP Sale Date New owner Comment
augmentation of
kempsey substation
part lot 102 dp866563
disposed now forms part
of lot 1 in dp1121926
sale/
landswap
sale/
landswap
land at bulga singleton 1 555234 auction
sale
TransGrid is committed to providing
a variety of communication vehicles
to inform the public, customers,
stakeholders, employees and suppliers.
leFt (clockwise from top left)
Garrie Smith, former Manager/Southern Region
David Thretheway, Manager/Stakeholders
and Strategic Projects
Neil Mitchell, Project Engineer
James Bradley, Apprentice
11.07.08 country
energy
23.09.08 sold to
lindsay
Gordon
Harris and
Gillian May
ferguson
lot 1 is now 1.290ha to
include 604 square metres
from the former lot 102
transferred to ce.
stamp duty valuation
at $750
ex patrol hut site sold at
auction for $32,000

2008/09 financials
Contents
73 inCome stAtement
74 bAlAnCe sHeet
75 CAsH Flow stAtement
76 stAtement oF reCoGnised inCome And exPense
77 notes to tHe FinAnCiAl stAtements
101 stAtement by members oF tHe boArd
102 indePendent Auditor’s rePort
TransGrid annual reporT 2009 > FinAnCiAls 71

CommerCiAl rePort
despite a challenging financial environment during 2008/09
TransGrid has been able to achieve a record profit before
tax of $217.4 million. The profit reflects a strong focus on
controlling routine operating expenditure, managing financing
costs and an increase in non-prescribed revenue.
The financial year was made up of two very
different halves. during the second half of
2008, TransGrid experienced significant
cost pressures as a reflection of the buoyant
australian economy. The record level of
profits is an indicator that TransGrid has
had a strong focus on controlling operating
expenditure. by the second half of the
financial year TransGrid was being impacted
by the uncertain financial conditions created
by the global financial crisis. TransGrid has
acted to mitigate the risks faced from the
global financial crisis with a review of its debt
management policies and closely monitoring
the financial status of key suppliers.
during the year TransGrid delivered a
record capital works program, with a total
expenditure of $619.9 million. in order to
fund this capital expenditure, TransGrid
borrowed $457.3 million with its total debt
increasing to $1,988.9 million. The year
was also one in which the aer approved
a regulated capital works program of
$2.4 billion for the 2009 to 2014 regulatory
period, with detailed planning for the
financing of this large capital works
program commencing during the year.
The profits generated in the year have
resulted in TransGrid declaring dividend
payments to its shareholders of
$120.2 million.
72 CommerCiAl rePort > TransGrid annual reporT 2009
a restructure of the organisation
in september 2008 resulted in the
establishment of the position of chief
financial officer. Tony Meehan was
appointed to this position in october 2008
and has enabled the staff of the commercial
business unit to undertake some significant
reviews of the organisation’s financial
methods and commercial practices.
This coupled with an increased focus
on operations is expected to enhance
the strong financial performance of the
organisation.
after a detailed review, a new debt and
investment risk Management policy was
approved by the board in april 2009. The
strategies adopted in the new policy will
result in changes to the ongoing debt
portfolio to manage the key objectives
of minimising interest expense and
profit volatility while mitigating potential
refinancing risks. changes to working
capital strategies will result in reductions
in financing charges being realised in the
2009/10 financial year.
The global financial crisis has impacted the
defined benefit superannuation schemes
contributed to by TransGrid. The reduction
in the fair value of the plan’s assets and
increases in the present value of the defined
benefit obligations, resulted in TransGrid
recording actuarial losses of $133.2 million.
These losses have been recognised through
an adjustment to retained earnings.
a detailed revaluation of TransGrid’s fixed
assets was carried out during the year.
as required by accounting standards, an
impairment test has been applied to the
resulting values and an impairment loss of
$919 million was brought to account as a
reduction to the asset revaluation reserve.

BegInnIng of audIted fInancIal RepoRt
Income Statement
For The year ended 30Th June 2009
2009 2008
note $’000 $’000
income 3 652,797 572,987
expenses excluding Finance Costs 4 (330,304) (280,553)
Finance Costs 4 (105,072) (101,882)
Profit/(Loss) Before Income Tax Expense 217,421 190,552
income Tax Benefit/(expense) 6(a)(i) (67,130) (58,165)
Profit/(Loss) For The Year 150,291 132,387
The accompanying notes form an integral part of these financial statements.
TransGrid annual reporT 2009 > Income Statement 73

Balance Sheet
as aT 30Th June 2009
74 Balance Sheet > TransGrid annual reporT 2009
2009 2008
note $’000 $’000
cuRRent aSSetS
Cash and cash equivalents 7 20,861 30,571
Trade and other receivables 8 110,096 69,857
inventories 9 27,634 25,699
derivatives 10 3,018 61
other 11 2,295 1,331
Total Current Assets 163,904 127,519
non-cuRRent aSSetS
deferred tax assets 6(b) 73,658 34,504
derivatives 10 1,521 5
property, plant and equipment 12 4,390,275 3,531,916
intangibles 13 537,535 523,067
other 14 4,008 3,603
Total Non-Current Assets 5,006,997 4,093,095
Total Assets 5,170,901 4,220,614
cuRRent lIaBIlItIeS
Borrowings 375,738 143,485
Trade and other payables 16 130,894 144,318
provisions 17 189,616 169,541
Current tax payable 17,877 23,564
derivatives 18 1,020 8,714
other 19 175,080 67,494
Total Current Liabilities 890,225 557,116
non-cuRRent lIaBIlItIeS
Borrowings 1,613,190 1,388,107
deferred tax liabilities 6(b) 664,768 506,812
Trade and other payables 16 2,973 5,413
provisions 17 11,929 10,440
derivatives 18 279 2,508
Total Non-Current Liabilities 2,293,139 1,913,280
Total Liabilities 3,183,364 2,470,396
Net Assets 1,987,537 1,750,218
equIty
Capital 20 651,967 651,967
reserves 21 1,286,367 986,779
retained earnings 22 49,203 111,472
Total Equity 1,987,537 1,750,218
The accompanying notes form an integral part of these financial statements.

caSh flow Statement
For The year ended 30Th June 2009
2009 2008
note $’000 $’000
caSh flowS fRom opeRatIng actIvItIeS
Cash receipts from Customers 664,245 579,981
Cash paid to suppliers and employees (269,018) (164,290)
Finance Costs paid (111,057) (101,279)
interest received 2,028 1,909
income Tax paid (42,424) (18,905)
net Cash Flows from operating activities 30(e) 243,774 297,416
caSh flowS fRom InveStIng actIvItIeS
purchase of property, plant and equipment, and intangibles (607,327) (289,854)
proceeds from the sale of property, plant and equipment 2,268 4,453
net Cash Flows from investing activities (605,059) (285,401)
caSh flowS fRom fInancIng actIvItIeS
proceeds from Borrowings 1,245,985 361,835
repayments of Borrowings (788,500) (282,200)
dividends paid 17(a) (105,910) (71,482)
net Cash Flows from Financing activities 351,575 8,153
net increase / (decrease) in Cash and cash equivalents (9,710) 20,168
Cash and cash equivalents at Beginning of the Financial year 30,571 10,403
Cash and cash equivalents at the End of the Financial Year 30(a) 20,861 30,571
The accompanying notes form an integral part of these financial statements.
TransGrid annual reporT 2009 > caSh flow Statement 75

Statement of RecognISed Income and expenSe
For The year ended 30Th June 2009
76 Statement of RecognISed Income and expenSe > TransGrid annual reporT 2009
2009 2008
note $’000 $’000
asset revaluation reserve: net increase/(decrease) in revaluations,
including impairments
21 414,560 75,958
net unrealised Gains/(losses) reserve: net gains/(losses) taken to
equity on available-for-sale financial assets
21 – (426)
Cash Flow hedge reserve: net movement in equity 21 14,397 (2,895)
superannuation actuarial Gains/(losses) 5(b) (133,287) (39,499)
income tax on items taken directly to equity 6(a)(ii) (88,409) (10,916)
Net income recognised directly in equity 207,261 22,222
profit for the year 150,291 132,387
Total recognised income and expense for the year attributable to members of TransGrid 357,552 154,609
effect of change In accountIng polIcy
profit for the period as reported in 2008 104,738
Change of policy – actuarial losses 27,649
restated profit for the period 132,387
The accompanying notes form an integral part of these financial statements.

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
1. coRpoRate InfoRmatIon
The financial report of TransGrid for the year ended 30 June 2009
was authorised for issue in accordance with a resolution of the
directors on 10 september 2009.
TransGrid is a statutory state owned Corporation under the
state owned Corporations act, 1989 and was corporatised
under the energy services Corporations amendment (TransGrid
Corporatisation) act, 1998.
2. SummaRy of SIgnIfIcant accountIng polIcIeS
(a) Basis of preparation
The financial report is a general-purpose financial report, and has
been prepared in accordance with australian accounting standards
including accounting interpretations; the requirements of the
public Finance and audit act, and regulation; the state owned
Corporations act, 1989; and relevant Treasury Circulars.
property, plant and equipment, assets classified as held for sale,
derivative financial instruments, and available-for-sale financial
assets are measured at fair value. other financial statement items
are prepared in accordance with the historical cost convention,
except as otherwise stated in the financial report.
Where necessary, comparative information has been reclassified to
conform to the current year’s presentation.
all amounts are rounded to the nearest thousand dollars ($’000)
and are expressed in australian currency.
(b) Statement of compliance
The financial report complies with australian accounting standards,
which include the australian equivalents to international Financial
reporting standards (aeiFrs). The financial report also complies
with the international Financial reporting standards (iFrs).
(c) new australian accounting Standards
and Interpretations not yet adopted
australian accounting standards and interpretations that have
recently been issued or amended but are not yet effective have not
been adopted by TransGrid in preparing this financial report.
The following standards, amendments to standards and
interpretations have been identified as those which may impact
TransGrid in the period of initial application:
> aasB 101 (issued september 2007), aasB 2007-8 (issued
september 2007) and aasB 2007-10 (issued december 2007)
relate to presentation of financial statements.
> aasB 2008-9 (issued september 2008) relates to amendments
to aasB 1049 for consistency with aasB 101.
> aasB 123 and aasB 2007-6 (both issued June 2007) relate to
borrowing costs.
> aasB 2008-5 and aasB 2008-6 (both issued July 2008) relate
to amendments to australian accounting standards arising from
the annual improvements project.
> aasB 2008-8 (issued august 2008) relates to eligible hedged
items.
> aasB 8 (issued February 2007) replaces the presentation
requirements of segment reporting in aasB 114.
> aasB 2007-3 (issued February 2007) relates to amendments to
existing accounting standards as a result of the new aasB 8.
> aasB 2009-2 (issued april 2009) relates to financial instrument
disclosures.
> aasB 2009-7 (issued June 2009) relates to amendments to
australian accounting standards.
> interpretation 18 (issued March 2009) relates to the transfer of
assets from customers.
all of these pronouncements are applicable for the year
commencing 1 July 2009. The new standards are concerned with
disclosures and will have no direct impact on TransGrid’s financial
results.
(d) Significant accounting Judgements, estimates and
assumptions made by management
in applying TransGrid’s accounting policies, management continually
evaluates judgements, estimates and assumptions based on
experience and other factors, including expectations of future
events that may have an impact on TransGrid. all judgements,
estimates and assumptions made are believed to be reasonable,
based on the most current set of circumstances available to
management. actual results may differ from the judgements,
estimates and assumptions. significant judgements, estimates
and assumptions made by management in the preparation of
these financial statements are outlined below:
(i) Significant accounting judgements
Impairment
TransGrid assesses impairment of all assets at each reporting
date by evaluating conditions specific to TransGrid’s business as
a whole, which may lead to impairment. if an impairment trigger
exists, the recoverable amount of the value in use for the business
is determined. Further details on the value in use calculations and
adjustment for impairment are disclosed in note 2(h).
Recovery of Deferred Tax Assets
deferred tax assets are recognised for deductible temporary
differences as management considers that it is probable that future
taxable profits will be available to utilise those temporary differences.
Long Service Leave Provision
TransGrid’s liability for employee benefits relating to long service
leave is measured using the current cost approach, which
approximates the present value basis. periodic comparison is
undertaken of the two measurement bases, in conjunction with an
independent actuarial review. Management’s judgement, based on
historical experience, is applied in determining whether the resulting
difference materially impacts on the liability valuation recognised in
the financial report and requires an adjustment to align to present
value measurement.
Workers’ Compensation Provision
The liability for workers’ compensation is based on an annual
independent actuarial assessment, supplemented by management
considerations, to arrive at a best estimate of the expenditure
required to settle present considerations at the reporting date.
The estimate contains uncertainty because variables used in
calculations cannot be easily quantified or measured in advance
of a possible occurrence.
(ii) Significant accounting estimates and assumptions
Allowance for impairment loss on
receivables from trade and other debtors
Where receivables are outstanding beyond the normal trading
terms, the likelihood of recovery of these receivables is assessed
by management. This assessment is based on supportable past
collection history and historical write-offs of bad debts.
Estimation of useful lives of assets
The estimation of the useful lives of assets is based on historical
experience, industry comparisons, as well as expected usage,
physical wear and tear, and the rate of technical and commercial
obsolescence. Further information on the estimation of useful lives
is disclosed in note 2(f)(iv).
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 77

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
(e) changes in accounting policies
(i) Superannuation Actuarial Gains and Losses
in accordance with nsW Treasury policy, the entity has changed
its policy on the recognition of superannuation actuarial gains and
losses. such actuarial gains and losses are now recognised outside
of profit or loss in the ‘statement of recognised income and
expense’. previously, actuarial gains and losses were recognised
through the income statement. Both options are permissible under
aasB 119 Employee Benefits.
The change in policy has been adopted on the basis that
recognition outside of the income statement provides reliable and
more relevant information as it better reflects the nature of actuarial
gains and losses. This is because actuarial gains and losses are
re-measurements, based on assumptions that do not necessarily
reflect the ultimate cost of providing superannuation.
recognition outside of the income statement also harmonises
better with the Government Finance statistics/Gaap
comprehensive income presentation for the whole of government
and general government sector, required under aasB 1049
Whole of Government and General Government Sector Financial
Reporting. a comprehensive income presentation will also be
available at the entity level from 2009/10 under aasB 101
Presentation of Financial Statements.
The change in accounting policy increases 2009 “profit/(loss) for the
year” from $57.0m to $150.3m (2008: from $104.7m to $132.4m),
by excluding from profit the superannuation actuarial loss line item
(2009: $133.3m, 2008: $39.5m), along with the associated and
offsetting income tax revenue (2009: $40.0m, 2008: $11.9m). Both
these items are now recognised in the statement of recognised
income and expense rather than the income statement.
(ii) Other
all other accounting policies are consistent with those applied in
the previous year.
(f) property, plant and equipment
(i) Acquisition of Assets
The cost method of accounting is used for the initial recording of all
acquisitions of assets controlled by TransGrid. Cost is the amount
of cash or cash equivalents paid or the fair value of the other
consideration given to acquire the asset at the time of its acquisition
or construction. Cost includes interest on borrowings related to
Qualifying assets as detailed in note 2(f)(iii).
assets acquired at no cost, or for nominal consideration, are initially
recognised at their fair value at the date of acquisition.
(ii) Revaluations
property, plant and equipment are valued in accordance with nsW
Treasury policy Tpp 07-1 Valuation of Physical Non-Current Assets
at Fair Value.
Fair value of property, plant and equipment is determined based on
the best available market evidence, including current market selling
prices for the same or similar assets. Where there is no available
market evidence, the asset’s fair value is measured at its market
buying price, the best indicator of which is depreciated replacement
cost.
TransGrid revalues depreciable property, plant and equipment
by reference to current prices for assets newer than those being
revalued, and adjusts those amounts to reflect the present condition
of the asset. The accumulated depreciation for the revalued asset
is restated proportionately with the change in the gross carrying
amount of the asset, so that the carrying amount of the asset
after revaluation equals its revalued amount, in line with nsW
Treasury policy.
78 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
any revaluation surplus is credited to the asset revaluation
reserve included in the equity section of the Balance sheet, unless
it reverses a revaluation decrease of the same asset previously
recognised in the income statement.
any revaluation deficit is recognised in the income statement unless
it directly offsets a previous surplus of the same asset in the asset
revaluation reserve.
upon disposal, any revaluation reserve relating to the particular
asset or parts of asset being sold is transferred to retained
earnings.
property, plant and equipment comprise the following types
of assets:
Regulated Assets
regulated assets comprise property, plant and equipment used
by TransGrid to provide electricity transmission services that are
regulated by the australian energy regulator (aer). regulated
assets as disclosed in notes 12(a) and (b) are:
> network asset
> other assets
network asset is a complex infrastructure asset that works together
as an integrated whole to provide regulated electricity transmission
services. it includes the following major parts:
> land
> Buildings
> system plant and equipment
> Communication equipment
TransGrid assesses at each reporting date whether there is any
indication that an asset’s carrying amount differs materially from fair
value. if any indication exists, the asset is revalued.
subject to the above, TransGrid’s valuation policy provides for a full
and detailed valuation of these assets to be undertaken at five-year
intervals, in conjunction with nsW Treasury policy. in the intervening
years, a revaluation based on price index movements is undertaken.
detailed valuations of system plant and equipment, land, buildings
and communication equipment associated with optical fibres were
undertaken as at 30 June 2009.
Non-regulated Assets
non-regulated assets comprise property, plant and equipment used
by TransGrid to provide services other than regulated electricity
transmission services. non-regulated assets as disclosed in notes
12(a) and (b) are:
> system plant and equipment
> Communication equipment
> other assets
Valuation of non-regulated assets is based on relevant commercial
agreements, which define their earning capacity.
(iii) Capitalisation
Capital expenditure is defined as expenditure in relation to:
> acquisition of a new unit of plant;
> installation of a new unit of plant;
> work performed on a unit of plant, where the need for the work
existed at the time the unit was acquired and the work was
carried out prior to it being put into operation;
> replacement of a unit of plant, or of a substantial part of a unit
of plant;
> an addition or alteration to a unit of plant, which results in an
increase in economic benefits.

interest on borrowings is capitalised against Qualifying assets in
accordance with aasB 123 Borrowing Costs. Qualifying assets
are assets which take more than 12 months to be ready for their
intended use.
expenditure is not capitalised below a minimum threshold
of $1,000.
(iv) Depreciation
property, plant and equipment, excluding land, are depreciated over
their estimated useful lives. The straight-line depreciation method
is used. assets are depreciated from the month of acquisition or
in respect of constructed assets, from the time the asset reaches
practical completion and is ready for use.
asset lives are reviewed annually in accordance with aasB 116
Property, Plant and Equipment, and where required, adjustments
have been made to the remaining useful lives of separately
identifiable parts of assets having regard to factors such as asset
usage and the rate of technical and commercial obsolescence.
The useful lives presently assigned to TransGrid’s assets are shown
in the table below:
Regulated
Assets
Non-regulated
Assets
network asset Buildings 30 years
system plant 40 – 50 years
and equipment
Communication 10 – 35 years
equipment
other assets 2 – 10 years
system plant
20 – 50 years
and equipment
Communication
35 years
equipment
other assets 2 – 10 years
(g) Intangible assets
intangible assets comprise the following assets as disclosed in
notes 13(a) and (b):
> easements
> Computer software
> airspace rights
intangible assets are measured at cost.
Capital expenditure on intangible assets is defined as expenditure
in relation to:
> acquisition of computer software or easements
> installation of computer software
> an addition or alteration to computer software, which results in
an increase in economic benefits.
easements are a component of TransGrid’s infrastructure assets
that provide electricity transmission services that are regulated by
the aer. easements are not amortised.
Computer software is amortised over a period of 5 years using
the straight-line amortisation method. The useful life for software
is reviewed annually, and adjustments where applicable, are made
on a prospective basis.
airspace rights have been recognised when the cost of the asset
can be measured reliably and it is probable that the asset will
generate expected future economic benefits for TransGrid. airspace
rights are not amortised.
expenditure is not capitalised below a minimum threshold
of $1,000.
(h) Impairment
TransGrid’s business as a whole represents a cash-generating
unit. at each reporting date, TransGrid’s specialised plant and
infrastructure assets, land and buildings, and easements are tested
for impairment as part of the cash-generating unit. if there is any
indication that the cash-generating unit may be impaired, TransGrid
makes an estimate of the recoverable amount of the unit.
as TransGrid’s revenue from electricity transmission services is
determined by the aer, the risks of impairment for the business
as a whole during the regulatory period are considered to be
extremely low.
The recoverable amount of the cash-generating unit is based on the
value in use for the business as a whole. in assessing value in use,
the estimated future cash flows for the business are discounted
to their present value using a discount rate that reflects the risks
specific to the business and relevant market assessments. on 28
april 2009, the aer issued their final revenue determination for the
period 2009-2014. The outcome of this determination process has
been used in the calculation of the recoverable amount.
if the carrying amounts of the assets exceed the recoverable
amount of the business, the assets comprising the business as
a whole are considered to be impaired. The assets are written
down proportionately to ensure their carrying amounts reflect the
recoverable amount.
(i) Inventories
inventories of stores and Materials are valued at the average cost
of items in store automatically adjusted at time of delivery of new
items, separately determined for each location.
(j) cash and cash equivalents
Cash and cash equivalents in the Balance sheet and for purposes
of the Cash Flow statement comprise cash on hand, cash at bank
and deposits with financial institutions.
(k) Borrowings
all borrowings are measured at amortised cost using the effective
interest method.
interest on borrowings is recognised as expense in the period in
which it is incurred unless it relates to qualifying assets. Qualifying
assets are assets, which take more than 12 months to get ready for
their intended use. Where funds are borrowed generally, interest on
the borrowings is capitalised to qualifying assets in accordance with
aasB 123 Borrowing Costs.
The amount of interest attributed to qualifying assets during the year
was $19.4m (2008 – $2.7m) at a weighted average rate of 7.2%
(2008 – 6.8%). The total interest expense for the financial year is
reported at $107.8m (2008 – $92.2m).
loans are classified as current when they have a maturity of less
than one year from the reporting date.
(l) dividends
provision is made for the amount of dividend payable in relation
to the current financial year, in accordance with the dividend
recognition policy set out in Treasury Circular NSW TC 05-11
Accounting for Dividends. accordingly, a dividend in relation
to the financial year is taken to be determined before reporting
date, consistent with the requirements of aasB 137 Provisions,
Contingent Liabilities and Contingent Assets.
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 79

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
The dividend is calculated according with Tpp 02-3 Financial
Distribution Policy for Government Businesses. The dividend
payable of $120.2m (2008: $105.9m) is calculated based on profit
for the year. in the income statement, this is based on a percentage
of the line item “profit/(loss) for the year” of $150.3m (2008:
$132.4m). as a result of the changed treatment of superannuation
actuarial gains and losses (refer note 2(e)(i)), in the dividend
calculation, there is no longer a need to adjust profit to exclude
these gains/losses, as they are now recognised outside profit/loss.
(m) employee Benefits
a calculation in accordance with aasB 119 Employee Benefits is
made each year in respect of TransGrid’s liability at reporting date
for employee benefits relating to long service leave and annual
leave, and an annual contribution is made to adjust the provision
to an amount which is considered adequate to meet that liability.
(i) Annual Leave
The provision for employee benefits relating to annual leave
represents the amount which TransGrid has a present obligation to
pay resulting from employees’ services provided up to reporting date.
The provision has been calculated at nominal amounts based on
the remuneration rates that are expected to be paid when the leave
is taken.
(ii) Long Service Leave
The liability for employee benefits relating to long service leave
has been calculated on the basis of current salary rates to be paid
by TransGrid resulting from employees’ services provided up to
reporting date and includes related on-costs, in accordance with
the guidelines of Treasury Circular nsW TC 09/04 Accounting for
Long Service Leave and Annual Leave.
(n) Superannuation
TransGrid contributes to four defined Benefit superannuation
schemes for which liabilities accrue.
The defined Benefit schemes comprise:
> energy industries superannuation scheme pool B (eiss)
> state authorities superannuation scheme (sass)
> state authorities non-Contributory superannuation scheme
(sanCs)
> state superannuation scheme (sss).
TransGrid contributes to a number of accumulation superannuation
schemes for which no long-term liability accrues.
With the defined Benefit schemes, a component of the final
benefit is derived from a multiple of member salary and years
of membership. all the defined Benefit schemes are closed to
new members.
The superannuation schemes advise the level of liability in respect
of TransGrid’s superannuation commitments to its employees
who are members of the various divisions of the schemes.
The calculation of the superannuation position is based upon
actuarial reviews independent of TransGrid’s ongoing activities
and involvement. Various actuarial assumptions underpin the
determination of TransGrid’s defined benefit obligations. These
assumptions and the related carrying amounts for eiss are
disclosed in note 5.
TransGrid recognises the net total of the following as an asset or
a liability in its Balance sheet:
> present value of the defined benefit obligation at reporting date
> Fair value of plan assets in the defined benefit schemes at
reporting date.
80 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
The total of the net superannuation expense (or revenue) for the
year, including amounts recognised both in and outside profit or
loss, is the difference between the opening and closing balances
of the net defined superannuation liability (or prepaid superannuation
contributions) plus the contributions paid by TransGrid to the eiss,
sass, sanCs and sss.
TransGrid has determined that detailed disclosure of the defined
Benefit schemes of sass, sanCs and sss will not materially
influence the users of the financial report and therefore has not
been disclosed.
(o) Insurance
TransGrid maintains a mix of external insurance policies and internal
provisioning in accordance with aasB 137 Provisions, Contingent
Liabilities and Contingent Assets. The treatment of risks and
associated liabilities are determined in conjunction with independent
insurance advisers and loss adjusters. The main area of selfinsurance
is Towers and Wires where it is considered cost-effective
to carry the risk internally.
TransGrid is a self-insurer for Workers’ Compensation. The liability
for claims made, or to be made, against the insurance provision is
determined by reference to the Workers’ Compensation act, 1987
and the WorkCover authority’s guidelines to self-insurers.
(p) trade and other Receivables
receivables from trade and other debtors, which generally have
20 to 30 day terms, are recognised at amounts due less an
allowance for any uncollectible amounts. Collectibility of these
receivables is reviewed on an ongoing basis. debts that are known
to be uncollectible are written off when identified. an allowance
for doubtful debts is raised when there is objective evidence that
TransGrid will not be able to collect the debt.
Prescribed Customer Receivables
as at 30 June 2009, TransGrid’s total revenue received for
prescribed transmission services, including intra-regional settlement
residues and inter-regional settlement residue auction proceeds
from the national electricity Market settlement residue process,
was less than the revenue entitlement for the financial year as
determined by the aer. in accordance with the national electricity
rules (ner), the under-recovered amount and associated interest
is held in prescribed Customer receivables and is entitled to be
recovered when setting the next period’s transmission service
prices, resulting in those transmission prices being higher than
they would have been otherwise.
prescribed Customer receivables includes an interest charge
based on the annual average of the 11 a.m. daily published cash
rate for the financial year. in accordance with the requirements of
the ner, the basis for the interest rate was approved by the aer.
(q) payables
accounts payable, including accruals not yet billed, are
recognised when TransGrid has an obligation to pay as a result
of the completion of a work or service. Trade accounts are usually
settled within 60 days.
(r) Revenue
revenue is recognised to the extent that it is probable that the
economic benefits will flow to TransGrid and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognised:
(i) Sale of goods
revenue is recognised when the significant risks and rewards
of ownership of the goods have passed to the buyer and can
be measured reliably. risks and rewards are considered passed
to the buyer at the time of delivery of the goods to the customer.

(ii) Rendering of services
revenue from electricity transmission services is subject to the
application of an aer determined revenue cap for the financial year.
The revenue caps are determined by the aer at five-year intervals.
TransGrid is in the final year of the current regulatory determination
which operates from July 2004 to June 2009. The transmission
service prices are set at the beginning of the financial year to
achieve the revenue cap applicable for that year.
revenue from the rendering of other services is recognised when
the service is provided or by reference to the stage of completion.
Where the contract outcome cannot be measured reliably, revenue
is recognised only to the extent of the expenses recognised that
are recoverable.
(iii) Interest
interest revenue is recognised as it is earned, using the effective
interest method.
(iv) Contributions for Capital Works
Cash and non-cash capital contributions have been recognised
in accordance with accounting interpretation 1017 Developer
and Customer Contributions for Connection to a Price-Regulated
Network.
Contributions of non-current assets are recognised as revenue and
an asset when TransGrid gains control of the asset. The amount
recognised is the fair value of the contributed asset at the date on
which control is gained.
Cash capital contributions are recognised as revenue when the
network is extended or modified, consistent with the terms of the
contribution.
(s) Income tax
TransGrid is subject to the national Tax equivalent regime (nTer)
administered by the australian Taxation office. The nTer is based
on application of federal income tax laws under which TransGrid
pays income tax equivalents to nsW Treasury.
deferred income tax is provided on all temporary differences at
reporting date between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes.
deferred income tax liabilities are recognised for all taxable
temporary differences except where the deferred income tax liability
arises from the initial recognition of an asset or liability, and at the
time of the transaction, affects neither the accounting profit nor
taxable profit or loss.
deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences,
and the carry-forward of unused tax assets and unused tax losses
can be utilised, except where the deferred income tax asset arises
from the initial recognition of an asset or liability, and at the time of
the transaction, affects neither the accounting profit nor taxable
profit or loss.
The carrying amount of deferred income tax assets is reviewed at
each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or
part of the deferred income tax asset to be utilised.
deferred income tax assets and liabilities are measured at the tax
rate that is expected to apply to the year when the asset is realised
or the liability is settled, based on tax rate (and tax laws) that have
been enacted or substantively enacted at reporting date.
income taxes relating to items recognised directly in equity
(such as asset revaluation, cash flow hedges and superannuation
actuarial gains and losses) are recognised in equity and not in the
income statement.
(t) financial Risk management
Overview
TransGrid has exposure to the following risks from its use of
financial instruments:
> Credit risk
> liquidity and funding risk
> interest rate risk
> Foreign exchange risk
> Commodity risk
> operational risk.
Credit Risk
Credit risk is the risk that arises if a financial loss is suffered due
to the inability of the counterparty being able to meet its financial
obligations to TransGrid.
The risk is managed by only undertaking transactions with
government owned financial institutions and commercial banks with
a minimum credit rating threshold. Monetary limits apply to contain
the exposure within reasonable levels.
Trade and other receivables
TransGrid’s exposure to credit risk is influenced mainly by the
individual characteristics of each customer. The demographics of
TransGrid’s customer base, including the default risk of the industry
and country in which customers operate, has less of an influence on
credit risk.
TransGrid considers a concentration of credit risk to exist when an
individual customer’s outstanding trade receivable balance exceeds
10% of the total trade receivables balance. approximately 88%
(2008 - 66%) of TransGrid’s trade receivables balance is attributable
to three distribution customers who have individual trade receivable
balances in excess of 10% of the total balance.
TransGrid’s trade and other receivables balance relates mainly to
TransGrid’s distribution customers. all of TransGrid’s distribution
customers have been transacting with the organisation since its
inception, with no credit losses occurring in that period of time.
in the event that there is objective evidence that TransGrid will
not be able to collect a debt, TransGrid establishes an allowance
for doubtful debts that represents the organisation’s estimate of
incurred losses in respect of trade and other receivables. Where
receivables are outstanding beyond the normal trading terms,
the likelihood of recovery of these receivables is assessed by
management. This assessment is based on a supportable past
collection history and historical write-offs of bad debts.
Liquidity and Funding Risk
The main objective of liquidity risk management is to ensure
that TransGrid has sufficient funds available to meet its financial
obligations and in a timely manner.
TransGrid maintains detailed cash flow forecasts and use approved
instruments with liquidity limits to maintain adequate cash flow.
Borrowing limits are monitored to ensure funding commitment for
major capital works are in place. The debt portfolio is managed in
such a way that no more than 20% of the portfolio will mature in any
12 month period.
Interest Rate Risk
interest rate risk is the risk of a material change in earnings as a
consequence of adverse movements in interest rates.
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 81

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
The objective in managing interest rate risk is to minimise interest
expense volatility whilst ensuring that an appropriate level of flexibility
exists to accommodate potential changes in funding requirements
and movement in market interest rates. To achieve this, TransGrid’s
overall debt portfolio will comprise a mix of nominal fixed rate and
long dated Cpi linked debt with some floating rate debt.
Foreign Exchange Risk
Foreign exchange risk is the risk that TransGrid suffers financial loss
due to a change in foreign exchange rates.
TransGrid’s policy is to hedge all foreign currency exposures in
excess of aud 0.5 million equivalent.
Commodity Risk
TransGrid may be exposed to commodity price risk typically
in relation to adverse and unexpected increases in costs for
infrastructure related capital expenditure. TransGrid’s preferred
position in relation to commodity risk is to negotiate fixed price
contracts with its suppliers. in addition, appropriate policies are in
place to monitor movements in commodity prices whilst hedging
strategies mitigate risk.
Operational Risk
operational risk is the risk that TransGrid suffers financial loss due
to mismanagement, error, fraud or unauthorised use of techniques
and/or financial products.
The policy objective is to minimise the risk that TransGrid suffers any
financial loss arising from operational risk.
appropriate segregation of duties and maintenance of control
systems are in place to mitigate operational risk.
Capital Management
TransGrid has been subject to the nsW Government’s Financial
distribution policy since its inception and is fully committed to
providing an adequate return to the shareholder. This objective
must be managed within the regulatory framework provided by the
ner, given that the vast majority of TransGrid’s revenue is subject
to regulation.
TransGrid’s return on capital is based on a Weighted average Cost
of Capital set by the aer, as part of the revenue cap determination
process at five-year intervals. The regulatory rate of return is set
at a level deemed sufficient to ensure the continuing viability of
TransGrid’s business and to encourage necessary investment
in new and replacement assets. The Weighted average Cost of
Capital applicable to TransGrid for the current five-year regulatory
period ending 30 June 2009 is 9.08%.
There were no changes in TransGrid’s approach to capital
management during the year.
TransGrid is not subject to externally imposed capital requirements.
The aer issued its revenue determination for the five-year period
ending 30 June 2014 on 28 april 2009.
(u) goods and Services tax
revenues, expenses and assets are recognised net of the amount
of Goods and services Tax (GsT), with the following exceptions:
> Where the amount of GsT incurred is not recoverable from the
australian Taxation office. in these circumstances, the GsT is
recognised as part of the cost of acquisition of the asset or as
part of an item of the expense.
> receivables and payables are stated with the amount of
GsT included.
82 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
The net amount of GsT recoverable from, or payable to, the
australian Taxation office is included as a current asset or current
liability in the Balance sheet.
Cash flows are included in the Cash Flow statement on a gross
basis. The GsT component of cash flows arising from investing and
financing activities which are recoverable from, or payable to, the
australian Taxation office are classified as operating cash flows.
(v) derivative financial Instruments
TransGrid uses derivative financial instruments such as forward
foreign currency contracts to hedge its risks associated with foreign
currency fluctuations.
For the purposes of hedge accounting, TransGrid classifies
its hedges as cash flow hedges. The hedges are undertaken
to address exposure to variability in cash flows that is either
attributable to a particular risk associated with a recognised
asset or liability or a forecasted transaction.
in relation to cash flow hedges to hedge firm commitments which
meet the specific conditions for hedge accounting, the portion of
the gain or loss on the hedging instrument that is determined to be
an effective hedge is recognised directly in equity and the ineffective
portion is recognised in the income statement.
When the hedged firm commitment results in the recognition of an
asset or liability, then, at the time the asset or liability is recognised,
the associated gains or losses that had previously been recognised
in equity are included in the initial measurement of the acquisition
cost or other carrying amount of the asset or liability.
(w) Segment Reporting
TransGrid operates in one industry being the transmission of
electricity in nsW. as such, TransGrid has only one business
segment as well as one geographical segment in accordance
with aasB 114 Segment Reporting, and this is reported in the
financial statements.

3. Income
2009 2008
$’000 $’000
Revenue
Transmission of electricity 602,789 526,620
non-regulated Work 22,716 11,599
Capital Contributions 18,546 29,215
interest 2,028 1,909
sundry 5,721 3,644
Total Revenue 651,800 572,987
Net Gain on Cash Flow Hedges 997 –
Total Income 652,797 572,987
Capital Contributions predominantly relates to the transfer of transmission assets forming part of the Capital Wind Farm substation project.
4. expenSeS
2009 2008
$’000 $’000
expenses excluding losses & finance costs
Transmission of electricity 309,730 270,306
other services 14,109 8,811
Total Expenses excluding Losses & Finance Costs 323,839 279,117
net loss on disposal of property, plant and equipment 2,150 1,213
net loss on Cash Flow hedges – 223
impairment adjustment on intangibles 4,315 –
Total Expenses excluding Finance Costs 330,304 280,553
Finance Costs 105,072 101,882
Total Expenses 435,376 382,435
total expenses above include:
2009 2008
$’000 $’000
depreciation of property, plant and equipment (refer to note 12(b)) 148,272 138,112
amortisation of intangibles (refer to note 13(b)) 4,612 3,884
doubtful debts 45 –
inventory expense
Employee Benefits Expense:
2,736 3,610
net superannuation expense, excluding actuarial losses* 5,348 9,178
other employee Benefits expense 85,278 80,304
Total Employee Benefits Expense 90,626 89,482
Maintenance expenses are a subset of the above total expenses:
Maintenance Expense:
Transmission of electricity
employee-related maintenance expense 24,149 23,601
other maintenance expense 40,248 37,855
Transmission of electricity – Maintenance expense 64,397 61,456
other services – Maintenance expense 251 251
Total Maintenance Expense 64,648 61,707
* refer note 5. superannuation actuarial losses of $133.3m (2008: $39.5m) are recognised in the statement of recognised income and
expense. Total superannuation expense, including actuarial losses recognised in the statement of recognised income and expense is
$138.6 m (2008: $48.7m).
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 83

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
5. SupeRannuatIon defIned BenefIt planS
The following tables summarise the components of movement in employer’s superannuation reserve recognised in the income statement
and statement of recognised income and expense, and the funded status and amounts recognised in the Balance sheet for the defined
Benefit superannuation plans.
The assets and liabilities of TransGrid’s eiss defined Benefit plans are provided by the scheme’s actuary, Mercer (australia) pty ltd.
(a) movements in Superannuation Reserves recognised in Income Statement
2009 2008
$’000 $’000
eISS
Current service cost (8,375) (15,700)
interest cost on benefit obligation (26,299) (25,443)
expected return on plan assets 29,320 31,919
EISS net gains/(expense) (5,354) (9,224)
SSS, SASS and SANCS net gains/(expense) 6 46
Total net gains/(expense) (5,348) (9,178)
(b) movements in Superannuation Reserves recognised in Statement of Recognised Income and expense
2009 2008
$’000 $’000
EISS Actuarial gains/(losses) (133,170) (39,429)
SSS, SASS and SANCS Actuarial gains/(losses) (117) (70)
Total Actuarial gains/(losses) (133,287) (39,499)
(c) eISS Superannuation Surplus/(liability)
84 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
2009 2008
$’000 $’000
Fair Value of plan assets at end of year 307,166 385,164
present Value of defined Benefit obligation at end of year (468,958) (412,716)
Net Asset/(Liability) Recognised in Balance Sheet at End of Year (161,792) (27,552)
(d) Reconciliation of the present value of the eISS defined benefit obligations
2009 2008
$’000 $’000
Present value of defined benefit obligations at beginning of the year (412,716) (409,747)
Current service cost (8,375) (15,700)
interest cost (26,299) (25,443)
Contributions by scheme participants (4,238) (3,787)
actuarial gains/(losses) (34,330) 32,850
Benefits paid 17,000 9,111
Present value of defined benefit obligations at the end of the year (468,958) (412,716)
(e) Reconciliation of the eISS fair value of plan assets
2009 2008
$’000 $’000
Fair value of plan assets at beginning of the year 385,164 430,848
expected return on plan assets 29,320 31,919
actuarial gains/(losses) (98,840) (72,279)
employer Contributions 4,284 –
Contributions by plan participants 4,238 3,787
Benefits paid (17,000) (9,111)
Fair value of plan assets at the end of the year 307,166 385,164

(f) percentage invested in each asset class at reporting date:
2009 2008
australian equities 34.3% 37.6%
overseas equities 33.1% 34.0%
australian fixed interest securities 9.0% 10.7%
overseas fixed interest securities 6.9% 6.3%
property 6.1% 3.2%
Cash 6.1% 6.0%
other 4.5% 2.2%
(g) fair value of eISS scheme assets
all scheme assets are invested by the Trustees at arm’s length through independent managers.
(h) expected rate of return on assets
The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target
allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.
(i) actual return on eISS plan assets
2009 2008
$’000 $’000
actual return on plan assets (67,367) (40,085)
(j) valuation method
The projected unit Credit (puC) valuation method was used to determine the present value of the defined benefit obligations and the related
current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each
unit separately to build up the final obligation.
(k) economic assumptions
salary increase rate (excluding promotional increase)
30 June 2009
4.0% p.a.
rate of Cpi increase 2.5% p.a.
expected rate of return on assets 7.78% p.a.
discount rate 5.35% p.a.
(l) demographic assumptions
The demographic assumptions at 30 June 2009 are those used in the 2006 triennial actuarial valuation.
(m) historical Information
2009 2008 2007 2006 2005
$’000 $’000 $’000 $’000 $’000
present value of defined benefit obligation (468,958) (412,716) (409,747) (405,668) (411,403)
Fair value of scheme assets 307,166 385,164 430,848 387,067 335,671
surplus/(deficit) in scheme (161,792) (27,552) 21,101 (18,601) (75,732)
experience adjustments – scheme liabilities (34,330) 32,850 5,103 15,036 (36,908)
experience adjustments – scheme assets (98,840) (72,279) 24,780 32,968 15,216
(n) expected contributions
expected employer contributions to be paid in the next reporting period 23,591
2009
$’000
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 85

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
(o) funding arrangements for employer contributions
(i) Net Surplus/(Liability)
The following is a summary of the financial position of the scheme at reporting date calculated in accordance with aas 25 Financial
Reporting by Superannuation Plans.
2009 2008
$’000 $’000
net Market Value of scheme assets 307,166 385,164
accrued Benefits (368,099) (379,148)
Net Surplus/(Liability) (60,933) 6,016
(ii) Funding Method
The method used to determine the employer contribution recommendations was the Aggregate Funding method. The method adopted
affects the timing of the cost to the employer.
under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit
payments to existing members, taking into account the current value of assets and future contributions.
(iii) Economic Assumptions
The economic assumptions adopted for the 2006 actuarial review of the scheme were:
Weighted Average Assumptions
expected rate of return on scheme assets 7.0% p.a.
expected salary increase rate 6.0% p.a. until June 2009; 4.0% p.a. thereafter
expected rate of Cpi increase 2.5% p.a.
(iv) Nature of Asset/Liability
as a liability is recognised in the Balance sheet as at 30 June 2009, TransGrid is responsible for the difference between the organisation’s
share of scheme assets and the defined benefit obligation.
(p) other
The superannuation expense recognised in the income statement is included in the line item “expenses excluding Finance Costs”.
superannuation actuarial losses in respect of eiss, sss, sass and sanCs of $133.3m (2008: $39.5m) are separately identified in the
statement of recognised income and expense.
The cumulative amount of actuarial losses in respect of eiss, sss, sass and sanCs recognised in the statement of recognised income
and expense since 1 July 2004 is $116.6m.
6. Income tax
(a) Income tax expense
Major components of income tax expense for the years ended 30 June 2009 and 2008 are:
(i) Income Statement
86 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
2009 2008
$’000 $’000
Current Income Tax
Current income tax charge 37,487 36,681
adjustments in respect of current income tax of previous years (750) (317)
Deferred Income Tax
relating to origination and reversal of temporary differences 30,393 21,801
Income tax expense 67,130 58,165
(ii) Statement of Recognised Income and Expense
2009 2008
$’000 $’000
Deferred Income Tax
net tax (gain)/loss on revaluation of property, plant and equipment 124,076 23,763
net tax (gain)/loss on available-for-sale financial assets – (128)
net tax (gain)/loss on superannuation reserve – actuarial losses (39,986) (11,850)
net tax (gain)/loss on cash flow hedges 4,319 (869)
Income tax on items taken directly to equity during the year 88,409 10,916

(iii) Reconciliation of income tax expense on pre-tax accounting profit to income tax expense reported in the Income Statement
The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the income
statement as follows:
2009 2009 2008 2008
$’000 $’000 $’000 $’000
profit/(loss) Before income Tax expense 217,421 190,552
income tax expense/(benefit) calculated at statutory income tax rate of 30% 65,226 57,166
Capital allowances (131) 20
expenditure not allowed for income tax purposes 16 38
reversal of temporary differences recognised in previous years 2,769 1,258
adjustments in respect of current income tax of previous years (750) (317)
Income tax expense reported in Income Statement 67,130 58,165
(b) deferred Income tax
Deferred Income Tax at 30 June relates to the following:
Balance Sheet Income Statement
2009 2008 2009 2008
$’000 $’000 $’000 $’000
Deferred Tax Assets
provisions 21,839 21,154 (685) (1,614)
superannuation liability 48,538 8,266 (321) (2,739)
property, plant and equipment 2,018 912 (1,106) (65)
other 1,263 4,172 (68) (516)
Gross Deferred Tax Assets 73,658 34,504
Deferred Tax Liabilities
property, plant and equipment and intangibles (661,617) (505,293) 32,248 25,576
superannuation surplus – (30) 5 (9)
other (3,151) (1,489) 320 1,168
Gross Deferred Tax Liabilities (664,768) (506,812)
Deferred Tax Charge 30,393 21,801
7. caSh and caSh equIvalentS
2009 2008
$’000 $’000
Cash on hand 13 13
deposits 20,848 30,558
Total 20,861 30,571
8. tRade and otheR ReceIvaBleS
2009 2008
$’000 $’000
current
Debtors
Trade debtors 67,481 60,777
debtors other Than Trade 7,742 6,640
75,223 67,417
allowance For doubtful debts (50) –
Total debtors
Other
75,173 67,417
prescribed Customer receivables 34,822 –
other 101 2,440
34,923 2,440
Total 110,096 69,857
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 87

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
9. InventoRIeS
88 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
2009 2008
$’000 $’000
Transmission plant spares 27,451 25,531
other 183 168
Total 27,634 25,699
10. deRIvatIveS (aSSetS)
2009 2008
$’000 $’000
current
Forward Contract
non-current
3,018 61
Forward Contract 1,521 5
Total 4,539 66
11. otheR cuRRent aSSetS
2009 2008
$’000 $’000
superannuation surplus – 103
prepayments 1,774 829
insurance recovery asset 521 399
Total 2,295 1,331
12. pRopeRty, plant and equIpment
(a) valuation and accumulated depreciation for each class of property, plant and equipment
2009 2008
$’000 $’000
Regulated Assets
network asset 8,039,205 6,592,366
accumulated depreciation (4,317,538) (3,469,037)
Work in progress 537,737 318,546
4,259,404 3,441,875
other assets 91,953 78,030
accumulated depreciation (50,906) (44,481)
Work in progress 17,813 16,439
58,860 49,988
Total Regulated Assets
Non-regulated Assets
4,318,264 3,491,863
system plant and equipment 42,944 41,035
accumulated depreciation (5,277) (4,012)
Work in progress 33,179 1,908
70,846 38,931
Communication equipment 198 198
accumulated depreciation (67) (58)
Work in progress 19 –
150 140
other assets 1,260 1,265
accumulated depreciation (245) (325)
Work in progress – 42
1,015 982
Total Non-regulated Assets 72,011 40,053
Total Property, Plant and Equipment 4,390,275 3,531,916

(b) Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning
and end of the financial year
property, plant and equipment is treated in accordance with the various explanations set out in note 2. property, plant and equipment are
valued in accordance with nsW Treasury policy Tpp 07-1 Valuation of Physical Non-Current Assets at Fair Value.
Revaluation
carrying Increments/
amount at non-current (decrements) carrying
Beginning assets held excluding amount at
of year additions disposals for Sale depreciation Impairments Impairments* end of year
2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Regulated Assets:
network asset 3,441,875 542,222 (1,427) – (137,826) 1,333,560 (919,000) 4,259,404
other assets 49,988 20,411 (2,576) – (8,963) – – 58,860
Total Regulated 3,491,863
Assets
562,633 (4,003) – (146,789) 1,333,560 (919,000) 4,318,264
Non-regulated Assets:
system plant
and equipment
38,931 33,180 – – (1,265) – – 70,846
Communication
equipment
140 19 – – (9) – – 150
other assets 982 651 (409) – (209) – – 1,015
Total Non-regulated 40,053
Assets
33,850 (409) – (1,483) – – 72,011
Total 3,531,916 596,483 (4,412) – (148,272) 1,333,560 (919,000) 4,390,275
Impairments*
impairments of network assets were brought to account as a reduction to the asset revaluation reserve. in respect of property, plant and
equipment, no impairments were brought to account within the income statement.
Revaluation
carrying Increments/
amount at non-current (decrements) carrying
Beginning assets held excluding amount at
of year additions disposals for Sale depreciation Impairments Impairments end of year
2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Regulated Assets:
network asset 3,210,770 282,992 (597) 1,685 (128,933) 75,958 – 3,441,875
other assets 43,809 17,902 (3,665) – (8,058) – – 49,988
Total Regulated 3,254,579
Assets
300,894 (4,262) 1,685 (136,991) 75,958 – 3,491,863
Non-regulated Assets:
system plant
and equipment
10,377 29,419 – – (865) – – 38,931
Communication
equipment
148 – – – (8) – – 140
other assets 1,166 713 (649) – (248) – – 982
Total Non-regulated 11,691
Assets
30,132 (649) – (1,121) – – 40,053
Total 3,266,270 331,026 (4,911) 1,685 (138,112) 75,958 – 3,531,916
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 89

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
(c) property, plant and equipment Impairment losses
TransGrid’s valuation policy provides for a full and detailed valuation of assets to be undertaken at five year intervals in conjunction with
nsW Treasury policy Tpp 07-01 Valuation of Physical Non-Current Assets at Fair Value.
during the year ended 30 June 2009, an extensive revaluation was undertaken in accordance with this cyclical review requirement to
determine the carrying amount.
The recoverable amount of the cash generating unit was determined with the assistance of independent valuers using the Value in use
methodology and compared to the carrying amount. The estimate of Value in use was determined using a discount rate of 7.75%.
The carrying amount was determined to be higher than its recoverable amount and an impairment loss of $919.0m was recognised with
respect to the following classes of assets:
asset class
substation equipment 367,416
Transmission lines 551,584
Total Impairment Losses 919,000
The impairment loss has been recognised as a reduction to the asset revaluation reserve.
(d) cost model
cost
accumulated
depreciation net Book value
as at 30 June 2009 $’000 $’000 $’000
Regulated Assets:
network asset 3,249,398 (829,639) 2,419,759
accumulated
cost depreciation net Book value
as at 30 June 2008 $’000 $’000 $’000
Regulated Assets:
network asset 2,887,418 (702,741) 2,184,677
13. IntangIBleS
(a) valuation and accumulated amortisation of Intangibles
90 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
2009
$’000
2009 2008
$’000 $’000
easements 497,748 487,139
Work in progress 6,572 6,836
504,320 493,975
Computer software 45,494 40,240
accumulated amortisation (33,794) (29,353)
Work in progress 18,615 10,990
30,315 21,877
airspace rights 2,900 7,215
Total Intangibles 537,535 523,067

(b) Reconciliations of the carrying amounts of intangibles at the beginning and end of the financial year
carrying
amount at carrying
Beginning amount at
of year additions disposals amortisation Impairments* adjustments end of year
2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Intangible Assets
easements 493,975 10,351 (6) – – – 504,320
Computer software 21,877 13,050 – (4,612) – – 30,315
airspace rights 7,215 – – – (4,315) – 2,900
Total 523,067 23,401 (6) (4,612) (4,315) – 537,535
Impairments*
an impairment of airspace rights was brought to account within the income statement.
carrying
amount at carrying
Beginning amount at
of year additions disposals amortisation Impairments adjustments end of year
2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Intangible Assets
easements 481,348 12,634 (7) – – – 493,975
Computer software 14,454 11,335 (28) (3,884) – – 21,877
airspace rights 7,215 – – – – – 7,215
Total 503,017 23,969 (35) (3,884) – – 523,067
(c) Intangible assets Impairment losses
aasB 136 Impairment of Assets requires consideration if any impairment exists for intangible assets.
With the assistance of independent valuers, impairment testing determined that the recorded value of the airspace rights were no longer at
fair value and a write down was required.
as a result, airspace rights were impaired by $4.3m and adjusted through the income statement.
14. otheR non-cuRRent aSSetS
2009 2008
$’000 $’000
insurance recovery asset 4,008 3,603
Total 4,008 3,603
15. expendItuRe commItmentS
(a) capital expenditure commitments
Commitments arising from contracts for expenditure in respect of property, plant and equipment and intangibles, to the extent not provided
for in the accounts:
2009 2008
$’000 $’000
payable Within one year 255,694 426,407
payable one to Five years 18,222 106,418
payable later than Five years 2,022 –
Total (including GST) 275,938 532,825
Total expenditure Commitments above include input tax credits of $25.1m (2008 - $48.4m) that are expected to be recoverable from the
australian Taxation office.
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 91

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
(b) operating expenditure commitments
Major commitments arising from contracts for expenditure associated with network support, to the extent not provided for in the accounts:
2009 2008
$’000 $’000
payable Within one year 20,900 39,663
payable one to Five years – 20,900
payable later than Five years – –
Total (including GST) 20,900 60,563
Total expenditure Commitments above include input tax credits of $1.9m (2008 - $5.5m) that are expected to be recoverable from the
australian Taxation office.
16. tRade and otheR payaBleS
2009 2008
$’000 $’000
Current
Creditors 75,503 102,826
accrued Finance Costs 54,358 41,492
other 1,033 –
Non-Current
130,894 144,318
Creditors 2,973 5,413
Total 133,867 149,731
17. pRovISIonS
92 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
2009 2008
$’000 $’000
Current
dividend 120,233 105,910
employees’ accrued Benefits 68,036 62,274
insurance 1,347 1,357
Non-Current
189,616 169,541
employees’ accrued Benefits 4,027 2,847
insurance 7,902 7,593
11,929 10,440
Total 201,545 179,981
(a) dividends
2009 2008
$’000 $’000
opening Balance 105,910 71,482
dividend payments (105,910) (71,482)
dividend for the year 120,233 105,910
Closing Balance 120,233 105,910
(b) employees’ accrued Benefits
The following table details the movements in the employees’ accrued Benefits provision during the year:
2009 2008
$’000 $’000
opening Balance 65,121 64,373
Contributions 18,302 11,411
payments (11,360) (10,663)
Closing Balance 72,063 65,121

The following table shows a breakdown of the employees’ accrued Benefits provision at reporting date:
2009 2008
$’000 $’000
annual leave 16,998 16,985
long service leave 55,065 48,136
Total 72,063 65,121
The following table shows a breakdown of the Current portion of the employees’ accrued Benefits provision at reporting date, split into the
period of time the benefits are expected to be settled:
2009 2008
$’000 $’000
Within one year 15,581 13,589
later than one year 52,455 48,685
Total 68,036 62,274
(c) Insurance
in accordance with Condition 6(a)(iii) of the license granted under section 211 of the Worker’s Compensation act, 1987, the provision
for total outstanding workers’ compensation claims liability including incurred but not reported claims and administration is $9.2m
(2008 – $9.0m). during the financial year, $1.3m (2008 - $5.9m) was contributed to the provision for Workers’ Compensation.
The provision includes $4.5m for a workers’ compensation claim that has been activated under TransGrid’s reinsurance policy. reinsurance
recoveries have commenced and future recoveries for this claim are considered to be virtually certain. TransGrid has recognised an
insurance recovery asset of $4.5m based on independent actuarial advice (refer to notes 11 and 14).
The following table details the movements in the insurance provision during the year:
o pening Balance contributions payments closing Balance
class $’000 $’000 $’000 $’000
Workers’ Compensation 8,950 1,255 (956) 9,249
Total 8,950 1,255 (956) 9,249
18. deRIvatIveS (lIaBIlItIeS)
2009 2008
$’000 $’000
Current
Forward Contract
Non-Current
1,020 8,714
Forward Contract 279 2,508
Total 1,299 11,222
19. otheR cuRRent lIaBIlItIeS
2009 2008
$’000 $’000
superannuation liability
Other
161,792 27,552
electricity Creditors 10,391 37,414
other 2,897 2,528
13,288 39,942
Total 175,080 67,494
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 93

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
20. capItal
TransGrid commenced operations on 1 February 1995 on separation from pacific power under the electricity Transmission authority act,
1994 at which time a series of assets and liabilities were transferred.
TransGrid was corporatised as a statutory state owned Corporation on 14 december 1998, with share capital of two $1.00 shares. These
shares were issued to the Treasurer and the Minister for Finance, as Voting shareholders on behalf of the nsW Government, as at 30 June
2009. The $2.00 is reported as part of Capital.
94 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
2009 2008
$’000 $’000
Capital
opening Balance 651,967 651,967
Movements – –
Closing Balance 651,967 651,967
21. ReSeRveS
asset
net
unrealised
gains/ cash flow
Revaluation (losses) hedge
Reserve Reserve Reserve total
Reserves $’000 $’000 $’000 $’000
At 1 July 2007 939,144 298 (5,784) 933,658
revaluation of property, plant and equipment (note 12(b)) 75,958 75,958
Transfer to retained earnings – revaluation reserve
for assets disposed (note 22)
3,250 3,250
Tax effect of property, plant and equipment revaluation
and Transfers to retained earnings (note 6(a)(ii))
(23,763) (23,763)
net Gains/(losses) on available-for-sale Financial assets
transferred to profit or loss upon sale of TransGrid’s shares
in Geodynamics limited
(426) (426)
Tax effect: net Gains/(losses) on available-for-sale
Financial assets transferred to profit or loss (note 6(a)(ii))
128 128
revaluation of Cash Flow hedges (4,089) (4,089)
realised Gains/(losses) on Cash Flow hedges removed
from equity and included in assets
1,194 1,194
Tax effect of Cash Flow hedge equity Movements (note 6(a)(ii)) 869 869
At 30 June 2008 994,589 – (7,810) 986,779
revaluation of property, plant and equipment,
1,333,560
excluding impairments (note 12(b))
1,333,560
impairments (note 12(b)) (919,000) (919,000)
Transfer to retained earnings –
revaluation reserve for assets disposed (note 22)
(974) (974)
Tax effect of property, plant and equipment revaluation,
impairments and Transfers to retained earnings (note 6(a)(ii))
(124,076) (124,076)
revaluation of Cash Flow hedges 24,282 24,282
realised Gains/(losses) on Cash Flow hedges
removed from equity and included in assets
(9,885) (9,885)
Tax effect of Cash Flow hedge equity Movements (note 6(a)(ii)) (4,319) (4,319)
At 30 June 2009 1,284,099 – 2,268 1,286,367
Asset Revaluation Reserve
This reserve is used to record increases in the fair value of property, plant and equipment, and decreases to the extent that such decreases
relate to an increase on the same asset previously recognised in equity. assets are revalued in accordance with nsW Treasury policy Tpp
07-1 Valuation of Physical Non-Current Assets at Fair Value.
Net Unrealised Gains/(Losses) Reserve
This reserve records fair value changes on available-for-sale investments.
Cash Flow Hedge Reserve
This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be effective.

22. RetaIned eaRnIngS
2009 2008
$’000 $’000
opening Balance 111,472 115,894
net profit/(loss) Before dividend 150,291 132,387
superannuation actuarial Gains/(losses) (133,287) (39,499)
income Tax Benefit/(expense) on superannuation actuarial Gains/(losses) 39,986 11,850
dividend (120,233) (105,910)
Transfer from asset revaluation reserve 974 (3,250)
Closing Balance 49,203 111,472
23. dIvIdend and contRIButIonS to ShaReholdeR
a dividend of $120.2m (2008 - $105.9m) has been recognised for distribution to the shareholder. The dividend will be paid during the
course of the 2009/10 financial year and is represented by the dividend provision.
24. SecuRed lIaBIlItIeS
at reporting date, there was no loan liability of TransGrid secured by a charge over TransGrid’s assets.
25. audIt feeS
amounts received, or due and receivable, by the auditors for:
2009 2008
$’000 $’000
auditing the financial report 168 188
26. compenSatIon of Key management peRSonnel
2009 2008
$’000 $’000
short-term employee benefits 2,387 2,032
post-employment benefits 845 839
other long-term benefits 238 226
Total 3,470 3,097
fees paid to directors
Fees, including superannuation benefits paid to directors, other than salaries paid to full-time directors, were $0.5m (2008 - $0.3m).
27. contIngent lIaBIlItIeS and contIngent aSSetS
(a) contingent liabilities
2009 2008
$’000 $’000
Contract liability 247 40
Claims for compensation associated with delayed contractual milestones are being pursued against TransGrid by a contractor. The amount
disclosed represents TransGrid management’s best estimate at balance date. at this stage, it is not possible for management to form an
opinion on the likely outcome of the claims.
a claim for compensation is being sought against TransGrid via a debt Certificate under the Contractor’s debts act 1997. This instrument
allows a sub-contractor of a contractor to recover outstanding monies directly from the principal to which the same contract applies. The
amount disclosed represents TransGrid management’s best estimate at balance date. at this stage, it is not possible for management to
form an opinion about the likely outcome of the claim.
a claim for compensation is being pursued via arbitration against TransGrid, for alleged reduction in the value of a coal mine due to the
construction of a transmission tower. at this stage, it is not possible for management to form an opinion about the likely outcome of the
arbitration.
a claim for compensation is being pursued against TransGrid arising from a contractual dispute. at this stage, it is likely that the claim will be
settled although it is not possible for management to reliably estimate a settlement amount.
(b) contingent assets
TransGrid has initiated legal proceedings to recover damages of $16.1m associated with its contractor. at this stage, it is not possible for
management to form an opinion on the likely outcome of the proceedings.
The australian Competition Tribunal is hearing a Merits review of the aer’s TransGrid Final revenue determination of 28 april 2009, which
established TransGrid’s revenue caps for prescribed transmission services for the 2009/10 to 2013/14 period. at this stage it is not possible
for management to be certain of the outcome of this review. however, the decision to seek a Merits review was based on ‘prospects
advice’ from senior Counsel with input from expert regulatory economists.
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 95

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
28. faIR compenSatIon tRuSt fund
in accordance with the land acquisition (Just Terms Compensation) act, TransGrid maintains a Trust account. The account balance at
reporting date was $1.9m (2008 – $0.3m).
29. leaSeS
TransGrid has no finance lease commitments. The following lease commitments disclosed are in the nature of operating leases.
lessee
TransGrid has one operating lease commitment under a commercial lease which commenced on 9 May 2007. The lease term is 6 years
with an option to extend for another 4 years. lease payments are increased annually by 4%. The lease expenditure for the financial year,
GsT-exclusive, was $1.9m (2008 – $2.2m).
Minimum rentals payable GsT-inclusive, as at 30 June are as follows:
2009 2008
$’000 $’000
Within one year 2,044 2,110
later than one year but not later than 5 years 6,244 8,287
later than 5 years – –
Total (including GST) 8,288 10,397
30. noteS to caSh flow Statement
(a) Reconciliation of cash
Cash as at the end of the financial year as shown in the Cash Flow statement is reconciled to the related items in the Balance sheet
as follows:
2009 2008
$’000 $’000
Cash and Cash equivalents 20,861 30,571
(b) dividends and taxes
no dividends were received. dividends and tax equivalents paid during the year amounted to $148.3m (2008 – $90.4m).
(c) acquisitions and disposals of entities
no entities were acquired or disposed of during the year.
(d) financing arrangements
TransGrid has an overdraft facility of $6,000,000 with the Westpac Bank and this facility was undrawn at reporting date. TransGrid also has
approval for an indemnity guarantee facility for $16,000,000 of which $5,873,000 has been drawn.
96 noteS to the fInancIal StatementS > TransGrid annual reporT 2009

(e) Reconciliation of profit after Income tax equivalent expense to net cash provided by operating activities
2009 2008
$’000 $’000
Profit/(Loss) after Income Tax Equivalent Expense
Add/(Less): Items Classified as Financing/Investing Activities
150,291 104,738
loss/(Gain) on disposal of property, plant and equipment
Add/(Less) Non-Cash Items
2,150 1,213
depreciation and amortisation 152,884 141,996
amortisation of (premium)/discount on loans (149) (1,556)
impairment adjustment 4,315 –
Capitalised interest (19,370) (2,741)
Capital Contributions (18,546) (29,215)
accruals relating to other than operating activities – (670)
Net Cash Provided by Operating Activities Before Change in Assets and Liabilities 271,575 213,765
Net Changes in Assets and Liabilities During the Financial Year
(increase)/decrease in Trade debtors & other receivables (39,206) 6,668
(increase)/decrease in inventories (1,935) (845)
(increase)/decrease in other Current assets (1,066) 21,005
(increase)/decrease in other non-Current assets (405) (3,603)
increase/(decrease) in Trade Creditors & other payables 8,462 21,765
increase/(decrease) in provisions 7,241 5,321
increase/(decrease) in income Tax & deferred Taxes 24,706 27,410
increase/(decrease) in other Current liabilities (25,598) 5,930
Net Cash Provided by Operating Activities 243,774 297,416
31. fInancIal InStRumentS dIScloSuRe
(a) credit Risk
Exposure to credit risk
The carrying amount of TransGrid’s financial assets represents the maximum credit exposure. TransGrid’s maximum exposure to credit risk
at the reporting date was:
2009 2008
carrying amount note $’000 $’000
Trade and other receivables 110,146 69,857
Cash and cash equivalents 7 20,861 30,571
Forward exchange contracts used for hedging (assets) 10 4,539 66
135,546 100,494
Impairment losses
Based on historic default rates, TransGrid believes that no impairment allowance is necessary in respect of trade receivables either not past
due or past due. The trade receivables balance, which includes the amounts owed by TransGrid’s three most significant customers, relates
to customers that have a good credit history with TransGrid.
The aging of TransGrid’s trade and other receivables at the reporting date was:
gross Impairment gross Impairment
Receivables losses Receivables losses
2009 2009 2008 2008
$’000 $’000 $’000 $’000
not past due 107,135 – 68,301 –
past due 1-30 days 596 – 1,556 –
past due 31-60 days 38 – – –
More than 61 days 2,377 50 – –
110,146 50 69,857 –
The above table defines the Gross receivables expected to be received by TransGrid.
as at 30 June 2009, all receivable transactions were assessed to determine their fair value and that collectability was highly probable. one
receivable of $49,500 was considered unlikely to be collected in full and thus the total amount was considered impaired. There was no
impairment for 2008.
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 97

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
The movement in the allowance for doubtful debts account in respect of trade receivables during the year was as follows:
2009 2008
$’000 $’000
Balance at 1 July 2008 – –
impairment loss recognised 50 –
Balance at 30 June 2009 50 –
(b) liquidity and funding Risk
The following are the contractual maturities of financial liabilities, including estimated interest payments:
carrying contractual less than 1 year to more than
amount cash flows 1 year 5 years 5 years
30 June 2009 $’000 $’000 $’000 $’000 $’000
Non-derivative financial liabilities
Borrowings 1,988,928 2,616,580 485,892 1,064,758 1,065,930
Trade and other payables 133,867 133,867 130,894 2,973 –
other financial liabilities
Derivative financial liabilities
10,391 10,391 10,391 – –
Forward exchange contracts used for hedging: Gross outflow 1,299 9,695 7,479 2,216 –
Total 2,134,485 2,770,533 634,656 1,069,947 1,065,930
carrying contractual less than 1 year to more than
amount cash flows 1 year 5 years 5 years
30 June 2008 $’000 $’000 $’000 $’000 $’000
Non-derivative financial liabilities
Borrowings 1,531,592 2,089,759 237,153 922,213 930,393
Trade and other payables 149,731 149,731 144,318 5,413 –
other financial liabilities
Derivative financial liabilities
37,414 37,414 37,414 – –
Forward exchange contracts used for hedging: Gross outflow 11,222 103,100 65,801 37,299 –
Total 1,729,959 2,380,004 484,686 964,925 930,393
(c) foreign exchange Risk
Cash Flow Hedges
The cash flows arising from cash flow hedges are not expected to affect profit or loss.
Cash Flow Hedge Equity Movements
carrying
amount
removed amount carrying
amount at amount from equity removed amount at
beginning recognised in and included from equity end of
of period equity during in Income and included period
(1/7/08) the period Statement in assets (30/6/09)
2009 $’000 $’000 $’000 $’000 $’000
Equity (11,156) 24,282 – (9,886) 3,240
amount
carrying removed amount carrying
amount at amount from equity removed amount at
beginning recognised in and included from equity end of
of period equity during in Income and included period
(1/7/07) the period Statement in assets (30/6/08)
2008 $’000 $’000 $’000 $’000 $’000
Equity (8,262) (4,089) – 1,195 (11,156)
98 noteS to the fInancIal StatementS > TransGrid annual reporT 2009

Sensitivity analysis
TransGrid employs cash flow hedges to remove currency risk associated with purchase of overseas equipment.
a 10 percent strengthening and weakening of the australian dollar against the following currencies would have increased (decreased) equity
by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is
performed on the same basis for 2008.
as these are all effective cash flow hedges, there are no profit or loss impacts.
+10% -10%
effect on equity in thousands of aud $’000 $’000
30 June 2009
usd (288) 352
Cad (6) 7
eur (513) 627
Jpy (3,943) 4,819
seK (144) 175
30 June 2008
usd (143) 175
Cad (655) 800
eur (2,121) 2,592
Jpy (7,771) 9,498
(d) Interest Rate Risk
interest rate risk is the risk of a material change in earnings and ultimately dividend payments as a consequence of adverse movements in
interest rates. The policy objective is to ensure that TransGrid is not exposed to interest rate movements which could adversely impact on
its ability to meet its financial obligations as they fall due.
Cash flow sensitivity analysis for variable rate instruments
a change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the
same basis for 2008.
Profit or Loss
100bp 100bp
increase decrease
$’000 $’000
30 June 2009
prescribed Customer receivables (13) 13
Cash flow sensitivity (net) (13) 13
electricity Creditors (65) 65
Cash flow sensitivity (net) (65) 65
30 June 2008
electricity Creditors (478) 478
Cash flow sensitivity (net) (478) 478
TransGrid annual reporT 2009 > noteS to the fInancIal StatementS 99

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
(e) net fair value of financial assets and liabilities
The net fair value of financial assets and liabilities, with the exception of borrowings, is reflected by their carrying amounts in the Balance
sheet, in accordance with aasB 132 and aasB 7.
The net fair value of borrowings is based on market value derived by Barrington Treasury services using market interest rates current at
reporting date.
The carrying amounts and net fair values of financial assets and liabilities at reporting date are:
2009 2008
carrying net fair carrying net fair
amount value amount value
$’000 $’000 $’000 $’000
Financial Assets
Cash and cash equivalents 20,861 20,861 30,571 30,571
Trade and other receivables 110,096 110,096 69,857 69,857
derivatives 4,539 4,539 66 66
Total Financial Assets 135,496 135,496 100,494 100,494
Financial Liabilities
Trade and other payables 133,867 133,867 149,731 149,731
Borrowings 1,988,928 2,000,231 1,531,592 1,484,958
other financial liabilities 10,391 10,391 37,414 37,414
derivatives 1,299 1,299 11,222 11,222
Total Financial Liabilities 2,134,485 2,145,788 1,729,959 1,683,325
end of audIted fInancIal RepoRt
100 noteS to the fInancIal StatementS > TransGrid annual reporT 2009

Statement By memBeRS of the BoaRd
TransGrid annual reporT 2009 > Statement By memBeRS of the BoaRd 101

Independent audItoR’S RepoRt
102 Independent audItoR’S RepoRt > TransGrid annual reporT 2009

Independent audItoR’S RepoRt continued
TransGrid annual reporT 2009 > Independent audItoR’S RepoRt 103

Index
a
aboriginal employment and development strategy 50
about TransGrid 2
apprentices 45
asset Management 24
B
Balance sheet 74
Board of directors 54
c
Capital expenditure ($Million) 10
Capital Works projects 23
Cash Flow statement 75
Chairman and Managing director’s review 16
Challenges 2009/10 15
Charter 58
Climate Change strategy 34
Code of ethics program 65
Commercial report 72
Community Consultation 37
Consultant Fees 64
Consumer response 64
Contents 1
Corporate Governance 53
Cost of annual report 70
Credit Card usage 69
Customer Connections 21
d
demand Graphs 20
demand Management initiatives 21
disability action plan 50
104 Index > TransGrid annual reporT 2009
e
eeo achievements (2008-2009) 50
eeo disclosures 49
eeo planned achievements (2008-2009) 50
electronic service delivery 70
employee services 47
environmental award 34
environmental incident notification 14
environmental production notes 108
environmental strategies 34
ethnic affairs priority statement (eaps) 50
executive leadership Team 56
f
Financial report 71
Fraud prevention 65
Freedom of information 65
Future people strategies 47
g
Glossary 106
Graduate program 45
Guarantee of service 64
h
heritage Management 70
highlights 2008/09 8
I
income ($Million) 10
income statement 73
independent auditor’s report 102
index 104
industrial relations policies and practices 70
information Technology 32
innovation 30
internet Contact details Back page

Index continued
J
Judicial decisions 64
K
Key Commercial performance indicators 10
l
land disposal 70
leadership development programs 44
legislative Change 64
letter to shareholders inside Front Cover
m
Managing directors scholarship 48
Meetings of the Board 60
Minister 58
n
national electricity Market development 21
network availability (%) 12
network reliability (system Minutes lost) 12
notes to the Financial statements 77
o
occupational health and safety performance 41
our direction 7
our network 4
overseas Visits 68
p
performance Management 46
performance summary: executive 62
planning 18
pricing 21
privacy 66
promotion 70
q
Qualifications: executive 63
R
remuneration: Board of directors 61
remuneration: executive 63
reporting exemptions 69
return on assets (%) 11
return on equity (%) 11
revenue reset determination (2004/09) 22
risk Management and insurance 64
revenue determination (2009 – 2014) 22
reviews of the national electricity Market 16
S
safety (lTi’s) 13
safety award 43
shareholders 58
significant Committees 66
sponsorships 37
staff numbers: Comparison of staff numbers 14
staff numbers: staff by Category 13
staff numbers: numbers of executive officers 14
staff numbers: numbers by Gender 14
statement of recognised income and expense 76
statement by Members of the Board 101
statement of affairs 66
t
Trainee engineering officer 45
TransGrid Contact details Back Cover
w
Waste reduction and purchasing poliCy (Wrapp) 34
Women programs 51
Workforce diversity strategy 49
TransGrid annual reporT 2009 > Index 105

gloSSaRy
Term Explanation/Comments
aer (“the regulator”) The australian energy regulator
aeMC The australian energy Market Commission
aeMo The australian energy Market operator
annual planning report (apr 200X) a document that sets out issues and provides information to the market that is relevant to
transmission planning in new south Wales. This document is the apr 2009.
annual planning review The annual planning process covering electricity transmission networks in
new south Wales.
“assets” TransGrid’s ‘poles and wires’, all the substations and electricity transmission lines that form
our network.
CBd Central Business district
Constraint an inability of an electricity transmission or distribution system to supply a required amount
of electricity to a required standard.
Customers TransGrid’s customers are those directly connected to our network. They are either
distribution network service providers, directly connected generators, large industrial
customers, customers connected through inter-regional connections or potential
new customers.
dM demand management. a set of initiatives that is put in place at the point of end-use to
reduce the total and/or peak consumption of electricity.
dnsp (distributor) distribution network service provider. a body that owns, controls or operates a distribution
system in the neM.
dWe nsW department of Water and energy
easement an easement over a property gives TransGrid the right to construct and maintain our
assets, while ownership of the property remains with the original landowner.
GWh a unit of energy consumption equal to 1,000 MWh.
interconnection The points on an electricity transmission network that cross jurisdictional/state boundaries.
iparT independent pricing and regulatory Tribunal of nsW
kV operating voltage of electricity transmission equipment. one kilovolt is equal to one
thousand volts.
load The amount of electrical power that is drawn from the network.
local Generation a generation or cogeneration facility that is located on the load side of a
transmission constraint.
106 gloSSaRy > TransGrid annual reporT 2009

gloSSaRy continued
lTi lost time injury
MCe Ministerial Council on energy
MVar a unit of reactive power. one “Mega-Var” is equal to 1,000,000 Var.
MWh a unit of energy consumption. one Megawatt hour is the amount of energy consumed in
one hour at a rate of one Megawatt.
national electricity law Common laws across the states which comprise the neM, which make the
ner enforceable.
national electricity rules (ner or “the rules”) The rules that govern the operation of the neM.
neM The national electricity Market
nTFp national Transmission Flow path
nTp national Transmission planner
network augmentation an expansion of the existing electricity transmission network.
non-network solutions alternatives to network augmentation which address a potential shortage in electricity
supply in a region.
outage an outage is when part of the network loses power. This can be either planned (i.e. when
work needs to be done on the line) or unplanned.
regulatory Test a test promulgated by the aer that is required by the ner to be applied when determining
the relative economic merits of options for the relief of transmission constraints.
rFp request for proposal
riT-T regulatory investment Test – Transmission
sndp strategic network development plan
sVC static Var Compensator. a device that provides for control of reactive power.
switchbay a site containing high voltage switchgear, used to connect or disconnect a section of
the network.
the Minister The new south Wales Minister for energy.
Tnsp Transmission network service provider. a body that owns, controls and operates an
electricity transmission system in the neM.
Transmission line a high-voltage power line running at 500kV, 330kV or 132kV.
WaCC Weighted average Cost of Capital
TransGrid annual reporT 2009 > gloSSaRy 107

envIRonmental pRoductIon noteS
TransGrid’s commitment to the environment is reflected
in the sustainable printing practices and paper used in
the production of this annual report.
pRIntIng
The printer of the annual report holds an FsC Chain
of Custody (CoC) Certification ensuring the highest
standards of sustainable practice have been used
throughout the printing process.
environmentally friendly soy-based inks and
low-alcohol production methods have been used.
108 envIRonmental pRoductIon noteS > TransGrid annual reporT 2009
coveR and edItoRIal pageS
The cover and editorial section pages are printed on
Monza recycled, which contains 55% recycled fibre
(25% post consumer and 30% pre consumer) and
FsC certified pulp, ensuring all virgin pulp is derived
from well-managed forests, and is manufactured by
an iso 14001 certified mill.
The paper is FsC Mixed source Certified.
fInancIal pageS
The financial pages are printed on Tudor rp, which is
FsC recycled Certified and australian Made. it contains
100% recycled fibre and no chlorine bleaching occurs in
the recycling process. The milll is iso 14001 certified.
sales of Tudior rp support landcare australia.

transgrid contact details
Sydney
201 elizabeth street
po Box a1000
sydney south nsW 1235
Telephone 02 9284 3000
Telephone 61 2 9284 3000
Facsimile 02 9248 3456
Facsimile 61 2 9284 3456
Business Hours 8:00am – 6:00pm
Metropolitan
Telephone 02 9620 0777
Orange
Telephone 02 6360 8711
Newcastle
Telephone 02 4967 8678
Tamworth
Telephone 02 6765 1666
Wagga
Telephone 02 6922 0222
Yass
Telephone 02 6226 9666
TransGrid aBn: 19 622 755 774
This report is available on Cd and on TransGrid’s website.
www.transgrid.com.au
acknoWledgements
Published by
TransGrid Corporate Business unit
Designed and produced by
e quation Corporate design pty ltd
Photographs by:
Jon novakovic
Karl Hofman
neil Billington
ron sonter
John Marmaras