Presentation to The Select Committee on

Local Government and Administration

Presenter :MMC Ros Greeff

Acting ED Peter Coetzee

Acting CEO Silas Zimu

20 June 2006

Current Network Condition

Characterised by aged, under designed and technically obsolete

infrastructure

Old-fashioned oil insulated switchgear – unreliable tripping times

Inadequate (sometimes embarrassingly primitive) monitoring and

protection systems

Result - High number of outages

Plant maximum life cycle exceeded

SHER non-compliant

No system integration

Initiatives to Reduce Outages

Network Master Plan

Eskom (PTM) Engineering Studies

Detail Audits by OEM’s

Rotek Engineering

Siemens

ABB

Alstom

Hawker Siddley

Internal Audit

Focus on planned maintenance

Purchased the network modeling tool

NETWORK MASTERPLAN

PSW Consulting Engineers were appointed to assist in the

preparation of Short, Medium and Long term Transmission and

Distribution plans for the Midrand Area of supply.

NET Group Consulting Engineers were appointed to assist in the

preparation of Short, Medium and Long term Transmission Plans

for the entire Network excluding the Midrand Area of supply.

They were also appointed to assist in preparing Distribution plans

for three focus areas where loading and network problems were

being experienced in the Siemert Road, Randburg and

Roodepoort Areas.

Eskom (PTM) were also appointed to do pre-engineering studies

at Fordsburg, Prospect, Delta, Kelvin and Orlando substations

Findings

PSW Midrand Report

The infrastructure in Midrand supply area is relatively new

with an average age of between 15 & 20 years. There are

certain areas however which are appreciably older and will

require upgrading and refurbishment in the Short term

The infrastructure needs to be extended to meet projected

future load growth

Substation Transformers Overview

Detailed audit undertaken by Rotek and CP’s Test Branch

Significant number (52) of high risk transformers identified in terms of standard assessment parameters (moisture, gases, acidity etc.)

Age profile of transformers indicates urgent need for refurbishment / replacement programme

Programme designed to eliminate backlog by 2010 (or sooner) thereby greatly improving reliability

Refurbishment programme to continue to reduce life cycles and conditions to acceptable levels

Sample Transformers Age Profile

0

1

2

3

4

5

6

7

8

9

10

1936 1962 1969 1974 1980 1985 1990 1996

No. of Units

30 year life cycle

Transformer Refurbishment 5 Year Plan

0

10

20

30

40

50

60

2004/05 2006/07 2008/09

Transformers refurbishedper financial year

Balance

Total Additional CapexR*millions

Note: Total Trfr = 250; Refurbished and maintained = 45; 52 to be addressed

MV Switchgear Overview

Detailed audit undertaken by OEM’s e.g. Rotek, Siemens

Significant number of high risk switchboards identified in terms

of standard assessment parameters, particularly oil insulated

units

Age profile of transformers indicates urgent need for

refurbishment / replacement programme for switches >25 years

Programme designed to eliminate backlog by 2010 (or sooner)

thereby greatly improving reliability

Refurbishment programme to continue to reduce life cycles and

conditions to acceptable levels

Age Profile All MV Switches

Age Profile All Switches

0

50

100

150

200

250

1937 1952 1957 1967 1969 1971 1973 1975 1977 1979 1981 1983 1986 1988 1990 1992 1994 1996 1999 2001

No. ofSwitches

Manufacturers recommend

replacement > 25 years

MV Switchgear Programme

MV Switchgear Rationalisation Data

0

10

20

30

40

50

60

2004/ 05 2005/ 06 2006/ 07 2007/ 08 2008/ 09 2009/ 10

Switchboards Replaced Balance Cost Rm's

Protection Audits by OEM’s and Eskom

Audits on secondary plant equipment focusing mainly on protection were conducted by:

ABB

Siemens

Eskom PTM

Alstom

And Internal Staff

Findings

Main protection is prone to malfunction

Backup protection in most cases is out of specification

70% of protection relays > 20 years old, no spares available

The suite of electro mechanical relays per line should be replaced with new

electronic relays catering for the complete set of protection requirements,

including disturbance recording.

Protection Schemes - 40 % of the Overcurrent and Earth Fault protection

relays’ tripping characteristics had an error margin of approximately 60%.

Repairing and refurbishing of electro-mechanical relays is not a cost effective

solution

Additional CAPEX Refurbishment Requirements

2005/06 2006/07 2007/08 2008/09 2009/10

Transformer R52m R25m R25m R22m R22m

Switchgear R45m R45m R45m R30m R12m

Protection R19m R15m R9m R7m R2m

Total R116m R85m R79m R59m R36m

Minimum required to clear backlog in 5 Years

CAPEX requirements 2005/10

Refurbishment

and Upgrade

Load Growth Total

HV R1,130bn R381m R1,511bn

MV R532m R70m R602m

LV R100m R32m R132m

Grand Total: R2,245bn

Upgrade Programme and Assumptions

City Power has begun an intensive upgrade programme in

order to achieve the following

Reduced average age of equipment – thru’ maintenance

Replacement of obsolete equipment – maintenance not feasible

Upgrade of overloaded networks in order to compensate for natural and anticipated load growth

Removal of equipment which is unsafe to operate

Achieve standardisation across all areas in order to reduce downtime and have more available emergency stock

Eradication of makeshift solutions

Ensure higher plant availability

CAPEX and OPEX Investments per Region

CAPEX OPEX CAPEX OPEX CAPEX OPEXMidrand 4,579,329 3,505,000 2,738,667 2,025,000 12,380,000 1,165,000Randburg 8,171,126 4,836,000 37,897,237 8,227,920 35,000,000 7,990,000Roodepoort 11,368,949 5,441,000 13,334,629 2,858,942 67,530,877 4,761,367Hursthill 0 5,240,200 7,097,334 4,311,943 23,414,179 4,776,668Siemert Road 6,211,898 5,853,000 15,443,205 6,768,719 24,239,500 7,051,668Alexandra 17,479,371 4,050,000 23,650,000 10,000,000 29,080,000 9,500,000Lenasia 8,523,751 3,221,000 1,525,000 3,200,000 19,455,008 3,680,000Reuven 1,845,698 3,521,000 245,000 3,714,611 14,200,000 3,015,000Bulk supply 20,898,587 8,484,000 23,724,321 8,181,990 55,900,046 8,517,585Total 79,078,709 44,151,200 118,095,000 49,289,125 281,199,610 50,457,288

Investment - 2002/3 Investment - 2003/4 Investment - 2004/5

2005/6 Capex Budget Allocation

CATEGORIES Total

Electrification 35,150,000

Service Connections 59,640,000

Township Reticulation 14,049,000

Network Development 27,850,000

Upgrade of Electrical Network 246,018,000

Refurbishment of Bulk Infrastructure 130,831,000

Tools and Loose gear 3,035,000

Plant and Machinery 2,483,000

Meters 16,000,000

Load Management 15,000,000

SCADA 6,500,000

Protection 20,000,000

Public Lighting 30,250,000

Telecommunications Equipment 1,476,000

Furniture 811,001

Office equipment/Computer hardware 769,000

Computer software 3,100,000

Building Alterations 8,513,000

CAPITAL - OPERATIONS 608,282,000

Some Key projects for 2005/06

Replacement and upgrade of substation transformers (17transformers ordered to be installed at: Westfield, Cydna, Hursthill, Rosebank, Roosevelt, Grand Central, Bryanston, Allandale, Brynorth, Randburg, Olivedale and Fairlands)

Protection upgrade at Kelvin and Prospect major intake points

Replacement of obsolete feeder boards

New substation at Bryanston to cater for pending re-zoning application

Continuous upgrade and refurbishment of MV and LV infrastructure

Key priorities for 2005/06…

Reconfigure 275 KV using Dead Tank Circuit Breakers and Pantograph Isolators to address outages at Fordsburg, Prospect and for Delta to be able to handle the surplus load

Installing prepayment meters in the identified areas in the South of Johannesburg

Increase continued partnership with OEM’s to help address critical network problems

Increase our focus on planned maintenance

The defective meters that have been identified and they will be replaced

Increase in the reduction of illegal connections in identified areas

A major focus will be dedicated to street lighting

Budget allocation 2006/7

Type of project/Category 2006 / 2007

Buildings R 1,000,000.00

Bulk Infrastructure R 235,889,135.00

Electrification R 41,500,000.00

Load Management R 33,200,000.00

Meters R 30,200,000.00

Network Development R 31,683,680.00

Operating Capital R 58,409,500.00

Protection R 17,100,000.00

Public Lighting R 63,300,000.00

SCADA R 9,280,000.00

Service Connections R 59,640,000.00

Telecomms R 6,350,000.00

Township Reticulation R 8,000,000.00

Upgrading of network R 122,750,500.00

COJ Projects R 48,811,000.00

TOTAL R 767,113,815.00

The focus is on:

Strengthening and Refurbishment of Bulk Infrastructure

Upgrade of MV and LV network

Electrification

Public Lighting and

Service Connections

End

Q & A

PROJECTS COMPLETED DURING 2004/5 FINANCIAL YEAR

2004/5 Randburg Area of Supply

Project Name: Elgin distributor upgrading C513Project Description: Laying of new cable (9km) to upgrade the Elgin distributor from Bryanston SubstationDesired Solution: The project will increase back-feeding capacity during contingency conditions. It will assist in ensuring

compliance with conversion from 6.6kV to 11kV in the future.

Project Name: Norman distributor upgradingProject Description: Laying of the new cable to upgrade the Norman distributor from Bryanston Substation.Desired Solution: Increase back-feeding capacity during contingency conditions. It falls within master plan to convert Bryanston

6.6kV to 11kV.

Project Name: Brynorth Substation new MV distributionProject Description: Laying of the new cable to establish new distributor from Brynorth Substation.Desired Solution: To provide extra capacity in Bryanston area to cope with the fast growing developments in the area

Project Name: Dainfern network upgrade C571Project Description: This is the second phase of the project where new MV cables are installed and new load centers will

be installed to alleviate Dainfern loading problems in winter.Desired Solution: Overloading problems in Dainfern will be resolved by upgrading the low voltage side of the network.

Project Name: De-loading of Bryanston Substation C610Project Description: Laying of two cables from Brynorth Substation to Bryanston Substation in order to supply Norman

and Elgin distributor from Brynorth.Desired Solution: Capacity at Bryanston Substation will be reduced to alleviate overloading of the Station. A standby distributor will support Elgin and Norman Distributors.

Project Name: Randpark Ridge : Closing of Radial feederProject Description: To lay new cable in order to put nine load centers on a ring.Desired Solution: Improvement of restoration time during fault condition due to the supply on a ring.

2004/5 Randburg Area of Supply…

Project Name: HOUTKOPPEN SUBSTATIONProject Description: Installation and commissioning of new 11Kv feeder board and control panels.

Desired Solution: Replacement of the existing 11kV feeder board to provide improved service delivery to City Power customers in the Houtkoppen substation area of supply. Provision of an additional five distribution circuits from the station.

Project Name: HOUTKOPPEN SUBSTATIONProject Description: Establish new substation building and switchgear room.Desired Solution: Upgrading of the existing substation precinct in preparation, for the installation of the newly procured 11Kv feeder board.

Project Name: Morningside S/S, Incomer, Bus Section and Control PanelProject Description: City Power to supply, fit new panels Eskom to supply, install 6.6kV cables from existing 5MVA Transformer.

2004/5 Hursthil Area of Supply

Project Name: Noordgesig conversion from 6.6kV to 11kVProject Description: Installation of 15 new mini-subs and laying of cable to support conversion of entire Noordgesig

from 6.6kV to 11kV.Desired Solution: Extra capacity to Noordgesig, overloading will be alleviated and new sub rings will assist in quicker fault restoration.

Project Name: LV Network upgrading C607Project Description: To install new LV equipment in the area of Fairland and to remove obsolete LV equipment.Desired Solution: Reduction in outages due to obsolete equipment and increase safety.

Reasons for the Project: The electricity network in Sophiatown was found to have an inferior design based on todays growing

demands. A section of the network was approved to upgrade from the current single phase LV network to a

three phase LV network.Status of the project: All MV and LV cable has been installed. A 500kva miniature substation has also been installed.

30% of work is still outstanding to be completed by the end of May 2005.Benefits of the Project: A more stable electricity supply, Reduction of power outages.

2004/5 Siemert Area of Supply

Project Name: LV Network upgrading C505Project Description: Installation of arial bundle conductors in Kensington area and removal of T-joints.Desired Solution: Reduction in power outages due to bare conductors and removal of t-joint to enhance system reliability.

Project Name: Judith Paarl LV UpgradingProject Description: To install new miniature substation to alleviate overloading of Judith Paarl in Derby Road and

Long StreetDesired Solution: To improve power supply around Ellispark Precinct and reduce power interruptions.

Project Name: Houghton upgrade MV network Phase 1Project Description: Installation of new cables from Cydna Substation to Riviera Substation for providing standby

for Houghton West, Oaklands/Houghton, Houghton South East, Killarney South distributors.Desired Solution: Reduce size of sub ring and reduction of load on Houghton West distributor and Oaklands distributor. To allow for future growth in the area and prepare for the future conversion.

Project Name: Athol Inanda standby distributorProject Description: Installation of cable from Cydna Substation in order to upgrade Athol Inanda standby

distributor and upgrading of other distributors in that area.Desired Solution: Reliability of the cable will improve as from elimination of many joints. Undergrounding of LV

along the same route will stabilize the network.

Project Name: Melrose Conversion Phase 1Project Description: Installation of new equipment to prepare for conversion from 6.6kV to 11kV in Melrose area

and closing of two radial feeders.Desired Solution: Reliable power in Melrose area and quick fault restoration as a result of feeder.

2004/5 Siemert Area of Supply…

Project Name: Melrose, Houghton, Riviera Conversion Phase 2Project Description: Installation of new equipment to convert from 6.6kV to 11kV.Desired Solution: Extra capacity due to 11kV conversion and more reliable power supply as the result of taking out obsolete equipment.

Project Name: Upgrade electrical network MalvernProject Description: Installation of new load centers to relieve load from the existing infrastructure in Malvern area.Desired Solution: More reliable power supply due to elimination of overloadings in Malvern Area.

2004/5 Midrand Area of Supply

Project Name: New 11kV distribution from Westfield Sub to Founders Hill and Sebenza Ext 6Project Description: Installation of new cables from Westfield Substation to Sebenza Ext 6 for conversion from

6.6kV to 11kVDesired Solution: Increased capacity of the network in Founders Hill and Sebenza. The project will alleviate power interruptions from Ekurhuleni

Project Name: Vorna Valley S/S Incomer CablesProject Description: Replacing existing 300mm x 3 core cables with 630mm single core cables with two single

cores per phase to cater for newly installed 2 x 20 MVA Transformers, including installation of new 1200/5 CT'S.Desired Solution: Network Upgrade

Project Name: ALLANDALE SUBSTATION 11Kv feeder boardProject Description: Installation and commissioning of new 11Kv feeder board.Desired Solution: Replacement of the existing 11kV switchgear arrangement. And thus to improve, service delivery to City Power customers in the Allandale substation area of supply.

Project Name: Noordwyk S/S 3rd Incomer PanelProject Description: Installation of 11kV Incomer Panel to accommodate new 20 MVA Eskom Transformer.Desired Solution: Network Upgrade in order to meet load growth

Project Name: ALLANDALE SUBSTATION 88/11Kv transformerProject Description: Installation and commissioning of new 88/11Kv transformer.Desired Solution: To provide a reliable standby facility at the sub-station in the event of an existing unit failure.

Project Name: Vorna Valley S/S Perimeter FenceProject Description: The station currently has no perimeter fencing and is open to everybody.Desired Solution: To provide security for personnel by having a lockable entrance gate.

2004/5 Lenasia Area of Supply

Project Name: Installation of standby cable for Lenasia Ext 4Project Description: Installation of new distribution from Lunar Substation to OK Bazaar HVC.Desired Solution: Speeding up of back feeding process during contingency.

Project Name: Upgrading of Mini substation and load centers in Lenasia Ext 1, 2 and 3Project Description: Installation of new mini subs and closing sub rings in Lenasia ext 1, 2 and 3.Desired Solution: Power interruption will be reduced and will ensure reliability of the network. Overloading problems will be alleviated in Lenasia ext 1, 2 and 3.

Project Name: LAWLEYProject Description: Normalisation of the network infrastructureDesired Solution: Change conversional metering to Pre- Paid system

Project Name: GOLDEN TRIANGLEProject Description: ElectrificationDesired Solution: Electrify 2430 stands

2004/5 OLD JOHANNESBURG AREAS

Project Name: Kelvin P/S 88kV Insulation UpgradeProject Description: Upgrading of insulation of the 88kV circuit breaker and isolator, bushingsDesired Solution: To prevent flashovers by providing the insulators with a hydrophobic

surface characteristic to prevent the formation of continuous wet conductive layer

Project Name: Asbestos Removal from all Sub StationsProject Description: Capex Environmental Compliance Monitoring.Desired Solution: complying with the Environmental Impact Assessment regulations

requirements as per Act No. 73 of 1989.

ALL AREAS

2004/5 Alexandra Area of Supply, incl electrification projects

Project Name: ALEXANDRA EXT -8Project Description: ElectrificationDesired Solution: Electrify 180 Stands

Project Name: GOLDEN TRIANGLEProject Description: ElectrificationDesired Solution: Electrify 2430 stands

Project Name: TSUTSUMANI AND MAYIBUYEProject Description: ElectrificationDesired Solution: Change metering from IMS to Grintek system

Project Name: LAWLEYProject Description: Normalisation of the network infrastructureDesired Solution: Change conversional metering to Pre- Paid system

Project Name: ALEXANDRA PHASE 2Project Description: Normalisation of Alexandra network infrastructureDesired Solution: To Connect Customers to Overhead system and reduce illegal connection

Project Name: ELECTRICAL INFILLSProject Description: Electrification Desired Solution: Electrify 500 stands within Citypower area of supply

Project Name: ALEXANDRA PHASE 2 ELECTRICAL INFILLSProject Description: ElectrificationDesired Solution: Electrify 350 connections in Alexandra

2004/5 Roodepoort Area of Supply

Project Name: MANUFACTA TO ROODETOWN SUBSTATIONSProject Description: Replace 33kV oil cables Manufacta to Roodetown substations.Desired Solution: Upgrading and replacement of aging oil filled transmission cables. Providing system

integrity, and security of supply to the customers in this area of supply.

Project Name: ONTDEKKERS TO NURSERY SUBSTATIONSProject Description: Replace 33kV oil cables Ontdekkers to Nursery substations.Desired Solution: Upgrading and replacement of aging oil filled transmission cables. Providing system

integrity and security of supply to the customers in this area of supply.

Project Name: SENTRAAL AND KLOOFENDAL SUBSTATIONSProject Description: Load optimizationDesired Solution: To alleviate the loading challenges at Kloofendal and Sentraal substations and to

provide improved service delivery to City Power customers in this area of supply.

2004/5 Roodepoort Area of Supply

Roodepoort MV cable upgrade Project

Reasons for the Project It was identified that sections the MV cable supplying the 6.6kV and 11kV distribution areas in Roodepoort were of extremely poor quality which had come to the end of its lifespan causing large parts of the town to loose their electricity supply at random patterns.Investigation and analysis was done on this cable indicating that it had to be replaced.

A project to correct this situation was approved in November 2004 and commenced in December 2004. This project was to be executed in 3 phases i.e. :-

Phase 1 – Weltevreden ParkPhase 2 – Constantia Kloof, HelderkruinPhase 3 – Wilropark, Roodekrans, Ondekkerspark and Horison

Status of the Project

A total of107 km of the ill fated cable in Roodepoort was approved to be replaced. To date we have laid 96 km in the ground. To date all cable in Phase one and Phase two have been installed. We have created outage plans which are currently in place to disconnect the old cable and connect the new ones.To date we have commissioned 82 new cable ends in phase 1 and 47 new cable ends in phase 2. We still have to commission 5 more cable ends in phase one and 79 more cable ends in phase two. By 11th May 2005 all of Weltevreden Park will be operating with new cable. Currently we are repairing paving in driveways and tiding up all construction rubble in the area.

Benefits of the Project

Reduction of power outages and Increase spare capacity on existing network.

2004/5 Roodepoort Area of Supply

Paul Kruger Rd MV and LV upgradeReason for the Project

This area in Honeydew is developing at a very fast pace. The existing MV overhead line network is not able to carry loads

during peak periods. A project was approved to remove the OHL and install our standard MV cable, 185 x 4 copper, with

minisubs and an underground LV network.

Status of the Project

90% of the MV cable has been installed. 60% of the MV switchgear has been installed. The project is scheduled to be

commissioned at the end of May 2005.

Benefits of the project

Reduction of power outages and Increase spare capacity of existing network.

2004/5 Roodepoort Area of Supply

Installation of Miniture substations and Compact switchgear

Reasons for the Project

It has been identified that the majority of mini substations in Roodepoort contain no switchgear. This makes fault finding and

power restoration extremely difficult. A project was approved to install compact switchgear and mini-subs where necessary which

will run concurrent with the Roodepoort cable upgrade Project.

Status of the Project

These are currently being installed in conjunction with the commissioning of Phase 1,2 & 3 of the Roodepoort Cable Upgrade

Project.

Benefits of the Project

Proper fault finding procedures can take place.No damage to existing cables and bushings while fault finding.Faster fault finding can take place.Faster fault restoration time.Safe working environment.

Public Lighting Projects

Region Project DescriptionRegion 1 High Mast refurbishment in Diepsloot and illumination of main intersections within Diepsloot Region.

Region 2 New installation in - Ivory Park, Network extension in Noordwyk Ext, Halfway Gardens, Halfway House, Lonehill

intersections Austin View, Buccleuch, Sunninghill and Paulshof

Region 3 New installation in - Main Roads within Olivedale, Khyber Rock, Brynston, Magaliesig, Dunkeld West, Sandton,

Jukskei Park. Upgrade of street lighting cables in Johannesburg North.

Region 4 Network extension in Victory Park, Fairlands. Refurbishment of street light luminairees in Bosmont/

Coronationville, Beyers Naude drive.

Region 5 New installation in Northwold, corner Peter Road and Beyers Naude, Davaidsonville, Northriding, Florida Park.

Refurbishment of street light luminnaires in Discovery, Roodepoort CBD, Florida North, Querelina.

Region 6 Soweto Development Programme continuation, Refurbishment of vandalised High Masts in Soweto and new

installation in Dobsonville Ext 3.

Region 7 Wynberg refurbishment, Modderfontein residential refurbishment, London and Malboro Road refurbishment.

New installation in Kelvi, Wendywood, Morningside Manor, Rembrant Park

Region 8 Luminaire conversion for MV to MH at the CBD and motorway refurbishment

Region 9 Installation of new street lights at Naturena x19, Golden Highway, Meredale, Oakdene and Pat Mbatha Drive.

Refurbishment of Vickers Road

Region 10 Soweto Development Programme continuation, Nomzamo informal settlement and ground to pole box

conversion project.

Region 11 Installation of new street lights at Orange Farm/Driezik/Stretford and Lawley Station.Refurbishment of

vandalised network in Eldorado Estate. Illumination of entrances to the Region 11 admin offices.

Next 5 year IDP Plan

electrification of proclaimed areas

Installation of public lighting

Alternative energy sources

Reduction of NTL

Provision of FBE

Provision of prepaid meters

Reduction of outages

Provision of adequate electricity capacity

Backlog elimination

DSM program

Customer education program

Distributed generation

The End

Q & A