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Compliance ReportINTEGRATED TRANSMISSION PLAN
SEPTEMBER 2017
INTEGRATEDTRANSMISSIONPLAN
APPENDIX:ITPCOMPLIANCE
INTRODUCTION
TheITPisasuiteofdocumentsthatdescribesourplansforourregulatedtransmissionbusiness.BeforeaRegulatoryControlPeriod(RCP)wemustsubmitanITPtotheCommissionsummarisingourexpenditureover10years.Wearealsorequiredtoprovideannualupdates.Our2017ITPisourthirdupdatetotheITPwedevelopedin2013tosupportourproposalforRCP2.In2018wecompleteanewITPtoourproposalforRCP3.TheCapexIMalsorequiresustosubmittotheCommissionbythelastworkingdayofSeptemberofeachdisclosureyear:
(a)ITPsupportingdocuments
(b)anupdatedITPnarrativethattakesaccountof:
(i) anymaterialchangestomatterscoveredintheITPnarrativemostrecentlysubmittedtotheCommission
(ii) thecontentoftheITPsupportingdocuments.
Wemustalsomakethismaterialavailableonourwebsite.
OUR2017ITPOur2017ITPreflectsthejourneywehavebeenon.Ithasbeendevelopedwiththedualaimofcommunicatingtechnicallycomplexmaterial,inamannerthatisclearandunderstandable,whilealsoaligningwithourregulatoryreportingrequirements.
REGULATORYREQUIREMENTSFORTHEITPANDSUPPORTINGDOCUMENTS
TheregulatoryrequirementsfortheITParesetoutinScheduleEoftheCapexIM.Thefollowingpagesreproducetheseintableformwithacommentaryexplaininghowour2017ITPdocumentsmeettherequirements.
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ScheduleE2clauses(ITPNarrative)
E2InformationtobeincludedintheITPnarrative(1)withreference,whererelevant,totheinformationcontainedintheITPsupportingdocuments,ahighlevel-
(a)overviewoftheexpenditureandoutputswhichareproposedforthefirstregulatoryperiodtowhichtheITPnarrativerelatescoincidingwiththedisclosureyearandforecastexpenditureneedsandoutputsoverthenextregulatoryperiod;
• ITPnarrative:Section3–Overviewofourplans• ITPnarrative:Section7–Ourexpenditureforecast• ITPnarrative:Section8–Ourserviceperformance• ITPschedulesthatformpartoftheITPNarrative.
(b)overviewofthekeyassumptionsandscenariosusedtodetermineforecastexpenditureandgridoutputs;
• ITPnarrative:Section3–Overviewofourplans• ITPnarrative:Section7–Ourexpenditureforecast
• viareferenceAMP:Section5–ExpenditureOverview• ITPnarrative:Section8–Ourserviceperformance
• viareferenceServicesReport:Part2:OutcurrentRCP2serviceperformancemeasures(c)assessmentofthekeyuncertaintiesinthekeyassumptions,andforecastexpenditureandgridoutputs;
• ITPnarrative:Section3–Overviewofourplans• viareferenceAMP:Section2:Gridexpenditureuncertainty• viareferenceAMP:Section5:Expenditureoverview–Keyuncertainties
(d)assessmentofthekeyrisksaffectingforecastexpenditure;
• ITPnarrative:Section3–RCP2uncertainties,risksandconstraints(e)assessmentofhowthekeyuncertaintiesandkeyriskswillaffectTranspower’sabilitytodelivertheforecastgridoutputs;
• ITPnarrative:Section3–RCP2uncertainties,risksandconstraintsandServiceoutcomesandSection8-OurServiceOutcomes.Noteourserviceperformance(e.g.gridreliability)isaffectedbyexternalfactors(e.g.weather,firesetc).WeintendtoelaboratefurtheronthislinkageinfutureITPs.
• viareferenceServicesReport:Part2:OutcurrentRCP2serviceperformancemeasures(f)descriptionoftheproposedmeasurestomanageandmitigatethekeyuncertaintiesandkeyrisks;and
• ITPnarrative:Chapter5and6–OurStrategicFrameworkandOurManagementApproach.Thesesectionsdiscussourstrategicandmanagementapproachincludingourriskandassuranceapproachandplanningprocess.WeintendtoelaboratefurtheronthislinkageinfutureITPs.
(g)descriptionofthekeyrelationships,includinganysynergiesortrade-offs,withinandbetweenthefollowing:
(i)projectsandprogrammesassumedforthepurposeofdeterminingtheforecastexpenditure;and(ii)theforecastgridoutputs.
• ITPnarrative:Chapter8–OurServicePerformance.Thissectioncommentsonchangesinassetstrategiesandnewconditioninformationaffectingthedeliveryoftheassethealthvolumetrictargets.WeintendtoelaboratefurtheronthislinkageinfutureITPs.
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ScheduleE2clauses(ITPNarrative)
(2)forecastexpenditureintheformofascheduleinrespectofeachdisclosureyearfor-(a)operatingexpenditure(disaggregatedbymajorareasofexpenditure);
• ITPnarrative:Chapter7–OurexpenditureforecastandITPSchedules:Tab4.(b)baseCapex(disaggregatedbymajorareasofexpenditure);and
• ITPnarrative:Chapter7–OurexpenditureforecastandITPSchedules:Tab2o viareferenceTPRChapter4:EnhancementandDevelopmentportfolioo viareferenceAMP:Chapter5–ExpenditureOverview
(c)approvedmajorCapex(disaggregatedbyproject);
• ITPnarrative:Chapter7–OurexpenditureforecastandITPSchedules:Tab5o viareferenceTPRChapter4:EnhancementandDevelopmentportfolio
(3)forecastgridoutputsintheformofascheduleinrespectofeachdisclosureyearfor-(a)eachrevenue-linkedgridoutputmeasuredescribedinthebaseCapexproposalrelatingtothefirstregulatoryperiodtowhichtheITPnarrativerelates;
• ITPnarrative:Chapter8–Ourserviceperformanceo viareferenceServicesReportPart2:OurCurrentRCP2ServicePerformanceMeasures
(b) allproposedgridoutputmeasuresotherthanthosereferredtoin(a)abovedescribedinthatbaseCapexproposalrelatingtothefirstregulatoryperiod;and• n/a.SeeServicesReport:Part3–StakeholderEngagementandtheRefreshofMeasuresforRCP3.
ThissectiondiscussesourdevelopmentofmeasuresforRCP3.(c)majorCapexprojectoutputsassumedtobedeliveredbyeachapprovedmajorCapexproject;
• ITPSchedules:Tab6.MajorCapex–Outputs(4)asummaryofmajorCapexprojectsunderdevelopment,including:
(a)asummaryofthekeyissuesbeingaddressedwithreferencetotheplanningreportwhichisanITPsupportingdocument;(b)estimatesoflikelycapitalexpenditure;and(c)estimatesofprojecttimings,includingthoserelatingtoconsultationperiods,submissionsforapproval,construction,andcommissioning.
• ITPnarrative:Chapter7–Ourexpenditureforecast,ITPSchedules:Tab6.MajorCapex–Outputs,andITPSchedules:Tab7.MajorCapex–UnderDevelop
o viareferenceTPRChapter4:EnhancementandDevelopmentportfolioo
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SupportingdocumentsITPClauseE3(a-c)
Thefollowingdocuments,preparedorupdatednomorethantwoyearsbeforethesubmissiondate:
• anassetmanagementplanthatincludestheinformationspecifiedinclauseE4See2017AssetManagementPlan(AMP)aplanningreportthatincludestheinformationspecifiedinclauseE5,andSee2017TransmissionPlanningReport(TPR)
• areportsettingoutTranspower’soutputandperformanceobjectives,thatincludestheinformationspecifiedinclauseE6.
See2017ServicesReport(SR)
ScheduleE4(AssetManagementPlan)
E4Informationtobeincludedintheassetmanagementplan(1)overallassetmanagementstrategyandobjectives;
• AMPSection1–Introduction• AMPSection3–PoweringNewZealanders:TodayandintotheFuture• AMPSection4–OurApproachtoAssetClassManagement• AMPSection6–GridAssetPortfolios• AMPSection7–ICTAssetPortfolios(2)overallassetriskmanagementframework;and
• AMPSection4–OurApproachtoAssetClassManagement(3)assetmanagementplansforeachassetclasscovering;
(a)specificationsforassetlifecycleactivities;(b)generalconditionofexistingassets;(c)intendedprogrammesofassetmanagementworks;(d)routinemaintenanceandrepairplansforassets;and(e)programmesforroutinemaintenanceandrepairplans.
• AMPSection4–OurApproachtoAssetClassManagement• AMPSection6–GridAssetPortfolios• AMPSection7–ICTAssetPortfolio• AMPSection8–BusinessSupportAssetPortfolio
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ScheduleE5(PlanningReport)
E5Informationtobeincludedintheplanningreport(1)thecapabilitiesoftheexistinggrid;
• TPRChapter2–ExistingNationalGrid• TPRChapter6–GridBackbone• TPRChapters7to19–Regions
(2)demandandgenerationforecastsfortheforthcoming10years;
• TPRChapter2–ExistingNationalGrid• TPRChapter3–InvestmentUncertainties• TPRChapters7to19-Regions
(3)thegrid’sabilitytomeetfuturedemandandgenerationneeds;
• TPRChapter6–GridBackbone• TPRChapters7to19–Regions
(4)theroleofthegridinfacilitatinggeneration;and;
• TPRChapter3–InvestmentUncertainties• TPRChapter6–GridBackbone• TPRChapters7to19–Regions
(5)gridinvestmentthatmayberequiredtomeetfutureneedsforthenext10yearsandbeyond,bywayof,(a)gridbackbonetransmissionplansforthemainNorthandSouthIslandtransmissioncorridorsandfortheHVDClink;
• TPRChapter6–GridBackbone(b)asetofregionalplans;
• TPRChapters7to19–Regions
ScheduleE6(ReportonOutputandPerformanceObjectives)
(1)alongertermviewofthegridoutputsandassociatedgridperformancethatwillbeeconomictoachieve,takingaccountof-
(a)performanceexpectationsofendusersofelectricity,includinginrelationtothevalueofunservedenergy;
(b)thecostsofdeliveringchangesinthelevelofgridoutputs;
(c)theimpactofcommittedexpenditureongridoutputs;and
(d)anyforecastdegradationinassetconditionorperformancewhichwillaffectgridoutputs.
• ServiceReportPart1–Howourservicesframeworkrelatestotheserviceperformancemeasures• ServicesReportPart2–Ourcurrentserviceperformancemeasures
(2)adetaileddescriptionontheanalysis,assumptionsandapproachusedtodeterminethelongertermview;and
• ServicesReportPart3–STAKEHOLDERengagementandtherefreshofmeasuresforrcp3• ServicesReportPart4:Howweusethetargetsandfuturedevelopment
(3)anapproachtoconvertthelongertermviewtoappropriateshortertermobjectivesforgridoutputs.
• ServicesReportPart4:Howweusethetargetsandfuturedevelopment
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