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TransGrid Annual Report 2007
CONTENTSTransGrid 1
ChairmanandManagingDirector’sReport 3
CorporateGovernance 5
BusinessPerformance 11
HealthandSafety 14
ManagingOurBusiness 15
CapitalProgramDelivery 21
EnvironmentalPerformance 30
OurPeople 34
FinancialReport 37
StatutoryInformation 72
StatisticalInformation 82
Index 84
The Hon. Michael Costa, MLCTreasurerMinisterforInfrastructureandMinisterfortheHunterParliamentHouseMacquarieStreetSYDNEYNSW2000
DeputyPremierMinisterforTransportMinisterforFinanceParliamentHouseMacquarieStreetSYDNEYNSW2000
Dr Peter Dodd Kevin MurrayChairman ManagingDirector
31October2007
DearShareholders
WehavepleasureinsubmittingtoyoutheTransGridAnnualReport2007forpresentationtoParliament.TheAnnualReportincludestheIncomeStatementfortheyearended30June2007andtheBalanceSheetasatthatdatecertifiedbytheAuditor-GeneralofNewSouthWales.
TheAnnualReportwaspreparedinaccordancewiththerequirementsofSection24AoftheStateOwnedCorporationsAct1989andtheAnnualReports(StatutoryBodies)Act1984andreportingregulationsissuedbytheNewSouthWalesTreasury.
Yourssincerely
TransGrid is the owner, operator and manager of the largest high voltage network in Australia, connecting generators, distributors and major end users in New South Wales. The network is interconnected to Queensland and Victoria providing a robust electricity system that facilitates interstate energy trading.
TransGrid’s capital works program for 2004-2009 represents a major infrastructure investment in New South Wales and the nation’s energy future.
TransGrid is Australia’s largest transmission company. Its network comprises some 12,500 kilometres of high voltage transmission line and underground cables, as well as 82 substations and switching stations, worth over $3.9 billion.
TransGrid is the owner, operator and manager of the New South Wales high voltage transmission network, which stretches along the east coast of Australia from Queensland to Victoria, then inland to Broken Hill, making it the backbone of the National Electricity Market – the national electricity supply.
The commitment of our people is a key to TransGrid’s success. The achievements of the organisation would not have been possible without the dedication and teamwork of our staff.
TransGrid’s capital works program over the next few years across New South Wales, means that people in New South Wales and the State economy will continue to reap the benefits of a secure, safe and reliable high voltage grid.
The expertise and skills inherent within the organisation are highly regarded in the industry. Our commitment to safety, life long learning and the pursuit of quality development opportunities will ensure TransGrid’s future is in safe hands.
1
2
Matthew McGrath Andrew Bush TransGrid line
apprentices based at Yass Regional Centre
3
A major focus of the organisation has been the planning and development of a 500kV Ring around the Newcastle, Sydney, Wollongong axis. TransGrid is well advanced with the current stages of the project with construction of a series of 500kV substations at Bannaby, Mt Piper and Bayswater Power Stations planned for 2008.
It is very pleasing to report that TransGrid has continued in the 2006 – 2007 reporting period to deliver on our charter of ensuring that New South Wales enjoys a safe, reliable and secure high voltage transmission network.
TransGrid’s reliability and availability figures for 2006 – 2007 are comparable with the best in the world.
TransGrid’s performance underpins the continued economic and social prosperity the community expects.
TransGrid continues to deliver strong financial performances. For the 2006 – 2007 year, pre tax profit again exceeded the shareholders target. A ”headline” operating profit before tax of $171.6 million was achieved.
Energy growth in New South Wales has continued at an average of 1580 GWH per annum over the past ten years. In that same period peak winter demand has increased by an average of about 250MW per annum and peak summer demand by an average of about 440MW per annum. TransGrid is committed to providing the necessary infrastructure to meet these increases in demand.
To meet this challenge TransGrid has embarked on a substantial capital works program valued at $1.2 billion, of which $218.2 million has been completed this financial year.
A major focus of the organisation has been the planning and development of a 500kV Ring around the Newcastle, Sydney, Wollongong axis. TransGrid is well advanced with the current stage of the project with construction of a series of 500kV substations at Bannaby, Mt Piper and Bayswater Power Stations planned for 2008.
This reporting period saw the completion of a number of major projects including the construction of Coffs Harbour Substation and the Glen Innes Substation.
Chairm
an & M
anaging Directors R
eport
Dr Peter Dodd CHAIRMAN
Mr Kevin Murray MANAGING DIRECTOR
4
TransGrid has ten major substation projects in various stages of development as well as 15 substation upgrades.
Construction is also due to start on the Wollar to Wellington Project in early 2008.
Transmission line construction has also been undertaken at a strong pace with projects such as; Coffs Harbour/Nambucca/Kempsey 132kV transmission line, Glen Innes to Inverell 132kV transmission line and the Yass to Wagga 132kV transmission lines all at various stages of planning and development.
Early in the reporting period TransGrid underwent a major organisational restructure to ensure the fit of the organisation aligns with our key business strategies. TransGrid’s structure ensures that all Business Units have a commercial focus on delivering our capital works program on time and on budget.
Safety is our first priority and although not achieving our goal of zero incidents, we are pleased to report TransGrid recorded its lowest annual frequency and average lost time ratio, our proudest achievement.
Our annual Safety Day and Fire Fighting Competition Day was again an outstanding success and saw staff take the opportunity to hone their skills in a competitive environment.
The annual Chairman’s Safety Award this year was awarded to Dave Moore and Glenn Roberts of Newcastle.
The organisation’s commitment to the environment has been strengthened by the on going relationship with Greening Australia through the GreenGrid sponsorship. This relationship has seen more than 250 land owners and thousands of community volunteers in southern New South Wales engaged in focused on the ground tree planting, river restoration and native bird regeneration planting.
TransGrid’s Environmental Management System has been independently assessed and the organisation’s compliance with the new international standard ISO 14 001 2004 verified.
TransGrid’s staff are of course, at the forefront of the organisation’s commitment to the environment and we are pleased to report that the recipient of the 2006 Chairman’s Environment Award is Stuart Johnston, Southern Region’s Environmental Manager.
Stuart was instrumental in developing our partnership with Greening Australia, as well as bringing a number of innovative environmental initiatives to the organisation.
TransGrid has, at its core, its people and is constantly looking at ways to ensure our people have the necessary skills and competencies to fulfil the responsibilities and development potential.
To this end, TransGrid has established a succession planning strategy that identifies positions central to continued success and targets people with potential to develop into these positions.
TransGrid is committed to life long learning and has implemented for some time now an employee development program for all
staff that aligns their personal development with their current role and future aspirations.
TransGrid is also looking to the future with 54 electrical, communications and transmission line apprentices now employed. Coupled with a strong graduate intake and staff retention strategies, TransGrids future is in safe hands.
TransGrid has a number of challenges ahead, in particular to meet our capital works program.
TransGrid has the people, the knowledge, the technology and importantly the pride to not only meet our challenges but in fact exceed our charter. We are committed to providing the people of New South Wales with a safe, reliable and efficient high voltage transmission network into the 21st century.
Dr Peter DoddChairman
Kevin MurrayManaging Director
5
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.
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; and
c. 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 Non-Executive Directors is at the discretion of the shareholders.
One director is to be appointed Chairperson of the Board.
Responsibilities of the Board
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;
Minister
TransGrid is subject to the control and direction of its Porfolio Minister.
From 1 July 2006 to 1 April 2007, TransGrid formed part of the portfolio of the Hon. Joe Tripodi, MP; Minister for Energy, Minister for Ports and Waterways, and Minister Assisting the Treasurer on Business and Economic Reform
From 2 April 2007 to 30 June 2007, 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.
Shareholders
TransGrid’s Board of Directors is responsible and accountable to the voting shareholders, being the New South Wales Treasurer and the Minister for Finance, who each hold one share for and on behalf of the New South Wales Government in accordance with the State Owned Corporations Act 1989.
The Board of Directors
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.
Structure of the Board
The Energy Services Corporations Act 1995 provides for the Board of TransGrid to consist of:
a. the Managing Director
b. 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;
Apprentices at Yass Regional Centre, Matthew Lawrence
and Ryan Cox
Corporate G
overnance
�
• 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;
• monitoring financial performance;
• ensuring that an effective system of corporate governance exists;
• ensuring effective management processes including executive development and succession planning.
Board Members
Details of the directors, their experience, expertise, qualifications, term of office and independent status are set out in the following section.
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 28). The Managing Director is not entitled to any additional remuneration for being an Executive Director.
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 operations of TransGrid in accordance with the general policies and specific directions of the Board.
Commitment
Eleven Board Meetings and one additional Board and Executive Corporate Planning Session were held in the year ended 30 June 2007. Of the eleven Board Meetings, three were held at Regional Centres. The August 2006 meeting was held at Newcastle (Northern Region), in conjunction with TransGrid’s Annual Safety and Fire Fighting Competition, the October 2006 meeting was held at Coffs Harbour (Northern Region) to coincide with the official opening of the Coffs Harbour Substation and the May 2007 meeting was held at Sydney West Substation and area centre (Central Region).
Meetings of the Board
The number of meetings of the Board of Directors held during the year ended 30 June 2007, and the number of meetings attended by each director is disclosed above.
Conflict of Interests
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.
Meetings of the Board
TransGrid Board The Board Audit and Risk Committee
Board Committee – Remuneration &
Structure
Board Regulatory Committee
Meetings Attended
Meetings Entitled to
Attend
Meetings Attended
Meetings Entitled to
Attend
Meetings Attended
Meetings Entitled to
Attend
Meetings Attended
Meetings Entitled to
Attend
Dr P Dodd# 5 5 - - 2 2 1 1
Mr K N Murray 11 11 5 5 4 4 3 3
Mr N Betts 9 11 - - - - 0 2
Mr B E Foy 11 11 5 5 4 4 - -
The Hon B J Langton 11 11 5 5 2 2 - -
Mr P R Higginson** 4 4 2 2 1 1 1 1
Ms M Papathanasiou 9 11 2 5 - - 3 3
Dr P J Moy* 4 6 - - 1 2 2 2
# Appointed to the Board as at 22 January 2007* Appointment to the Board ceased as at 19 January 2007 ** Appointment to the Board ceased as at 3 November 2006
Bannaby, site of TransGrid’s future 500kV Substation
�
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.
Board Committees
To assist the Board in fulfilling its corporate governance responsibilities, the Board utilises the Executive Board Committee, the Board Audit 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 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. The Managing Director is also a member of the Board Committees. Senior executives and management may be invited to attend committee meetings.
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:
Dr Peter Dodd (Chairman of the Committee)
Mr Kevin 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 Committee consists of the following directors:
Mr Bruce Foy (Chairman of the Committee)
Mr Kevin Murray
The Hon. Brian Langton
Ms Matina Papathanasiou
The primary function of the Board Audit 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:
Dr Peter Dodd (Chairman of the Committee)
Mr Kevin Murray
Mr Bruce Foy
The Hon Brian Langton
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 Matina Papathanasiou (Chairperson of the Committee)
Dr Peter Dodd
Mr Neville Betts
Mr Kevin Murray
The primary function of this Board Committee is to assist the Board in managing and reviewing regulatory changes and/or regulatory decisions arising from the National Electricity Law, Rules and Regulations.
The Board
DR PETER DODD
CHAIRMAN
Dr. Peter Dodd was appointed as Chairman of the TransGrid Board on 22nd January 2007.
Peter is currently Managing Director, Access Macquarie Ltd which is the commercial arm of Macquarie University. He has over 20 years experience in investment banking. Most recently he was Global Head of Corporate Finance for ABN AMRO based in London. He is currently on the Board of Centennial Coal Ltd, Blueglass Limited and AREIT which is a Singapore listed industrial property trust. Previously he has been Chairman of Delta Electricity, director of Macquarie Goodman Industrial Property Trust (now Goodman International), Brierley Investments, the Industry Research and Development Board and Multigroup Ltd (Startrack Express). He was formerly Dean and Chief Executive of the Australian Graduate School of Management. He is a director of the Centre for Independent Studies and a former Chairman of the Autism Association of NSW.
He brings to the Board a broad range of managerial skills as well as a history in the electricity industry.
MR NEVILLE BETTS
DIRECTOR
Mr Neville Betts was appointed to the TransGrid Board on 30th June 1998.
Neville is currently an Organiser of the Electrical Trades Union of Australia, a position that he has held 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 & Distribution Industry, 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.
He brings to the TransGrid Board an in-depth understanding of the electricity industry and its associated Industrial relations, training and union activities.
MR BRUCE FOY
DIRECTOR
Mr Bruce Foy was appointed to the TransGrid Board on 15th December 2005.
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 Citic Australia Trading Ltd, a Director of the Financial Planning Association of Australia Ltd, a Director/Trustee of the First State Superannuation Trustee Corporation , a director of The Doctors Health Fund Ltd as well as Chairman of AFMA Services Ltd.
Bruce was admitted as a Barrister of the Supreme Court of New South Wales 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.
He brings to the TransGrid Board extensive experience in corporate and financial management.
THE HON. BRIAN LANGTON
DIRECTOR
The Hon. Brian Langton was appointed to the TransGrid Board on 15th December 1999.
Brian has extensive experience in government, having been the State Member for Kogarah for 16 years and, prior to this, an Alderman on Kogarah Council for 12 years. During his time as the State Member, Brian held the portfolios for Transport and Tourism from 1995 to 1997 and Emergency Services and Fair Trading from 1997 to 1998.
In addition, Brian is a Member of the Board of the NSW Bus and Coach Association and a former Member of the Local Government Association Executive and a former Director of St George Hospital.
Currently operating as a Government Relations Consultant, Brian brings to the Board more than 30 years experience in the public sector.
MS MATINA PAPATHANASIOU
DIRECTOR
Ms Matina Papathanasiou was appointed to the TransGrid Board on 13th December 2004. Matina has over 19 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 has a mandate to invest over $2.5billion in global infrastructure. Matina was previously with AMP Capital
Investors for over 5 years as Head of Strategy Infrastructure and a member of the AMP Capital Investors Credit Investment Committee. Previously Matina was employed at Bankers Trust and Macquarie Bank in their Project Advisory and Structured Finance groups. 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 brings to the TransGrid Board strong experience in finance, governance, commercial negotiations and regulation.
MR KEVIN MURRAY
EXECUTIVE DIRECTOR AND MANAGING DIRECTOR
Mr Kevin Murray was appointed as an Executive Director on the TransGrid Board on the 10th June 2005.
As Managing Director of TransGrid, Kevin is responsible for the development, operation and maintenance of the New South Wales bulk electricity transmission network.
Prior to his appointment as Managing Director, Kevin carried out the role of General Manager/Network, a position he held since TransGrid’s inception in 1995. As General Manager/Network Kevin was responsible for managing the transmission assets to achieve a reliable, available and safe electricity supply in an environmentally sound manner. In addition, General Manager/Network was responsible for around two thirds of TransGrid’s workforce.
Kevin is Chairman of TransGrid’s Executive Occupational Health and Safety Committee and Executive Environment Committee and is a director of the New South Wales Energy Industry Ombudsman Board. He is a past director of the National Safety Council.
Kevin brings to the TransGrid Board 37 years experience in the transmission business, with extensive experience in managing TransGrid’s infrastructure.
MR JOHN BYRNE
GENERAL MANAGER/COMMERCIAL AND BOARD SECRETARY
Mr John Byrne was appointed as General Manager/Commercial in February 1995 and became Board Secretary in February 2000.
John has more than 40 years experience in the electricity supply industry with a varied career in all aspects of financial management. John was involved in the development of the electricity market and served on the Electricity Task Force, which led to the current industry structure in New South Wales. He is also a Fellow of the Australian Institute of Company Directors.
8
Board of Directors
Mr John Byrne GENERAL MANAGER/COMMERCIAL
& BOARD SECRETARY
The Hon. Brian Langton DIRECTOR
Dr Peter Dodd CHAIRMAN
Ms Matina Papathanasiou DIRECTOR
Mr Kevin Murray EXECUTIVE DIRECTOR & MANAGING DIRECTOR
Mr Neville Betts DIRECTOR
Mr Bruce Foy DIRECTOR
9
Executive Team
Michael Gatt EXECUTIVE MANAGER/
CORPORATE
Paul Phillips GENERAL MANAGER/ BUSINESS SERVICES
Lionel Smyth GENERAL MANAGER/NETWORK PERFORMANCE & OPERATIONS
Peter McIntyre GENERAL MANAGER/NETWORK DEVELOPMENT & REGULATORY
AFFAIRS
Kevin Murray MANAGING DIRECTOR
& EXECUTIVE DIRECTOR
John Byrne GENERAL MANAGER/COMMERCIAL
& BOARD SECRETARY
Chris FitzGerald GENERAL MANAGER/CAPITAL
PROGRAM DELIVERY
10
Vic Galea GENERAL MANAGER/ NETWORK SERVICES
11
Business P
erformance
In keeping with TransGrid’s targeted cost reduction program, the regulator in its last regulatory decision, set challenging expenditure targets for the organisation. TransGrid is committed to seeking to outperform these financial performance indicators
Significant pressure is continuing to be applied to operating costs and the organisation again achieved a result better than the regulatory allowance. The organisation also successfully exceeded the Service Standard targets agreed with the Regulator
At the end of 2006-2007, TransGrid’s asset value had grown to $3.9 billion
Key Performance Indicators (Including Superannuation Income/(Expense))
Income from Ongoing Activities ($ million) 504.8
Asset Base ($ million) 3,929.0
Interest Cover (times) 2.7
Gearing Ratio 46.0%
Operating Profit Before Tax ($ million) 171.6
Earnings Before Interest and Tax ($ million) 270.7
Commercial Performance
TransGrid prides itself on its commercial approach to its operations. TransGrid ensures all its processes and practices are undertaken in a rigorous commercial manner.
The vast majority of TransGrid’s revenue is subject to regulation by the Australian Energy Regulator (AER). These regulatory structures are currently subject to review and TransGrid’s future
direction and strategies will be impacted by any changes to the National Electricity Law and revised regulatory structures.
TransGrid continues to deliver strong financial performances. For the 2006-2007 year, pre-tax profit again exceeded the shareholder’s target. A “headline” operating profit before tax of $171.6 million was achieved.
Revenue for the year was above expectations resulting from a higher than anticipated service standards incentive payment, along with recoveries from external parties for deviation works on TransGrid’s transmission lines and higher income from asset maintenance and telecommunication services.
In keeping with TransGrid’s targeted cost reduction program, the regulator in its last regulatory decision, set challenging expenditure targets for the organisation. TransGrid is committed to
seeking to outperform these financial performance indicators. Significant pressure is continuing to be applied to operating costs and the organisation again achieved a result better than the regulatory allowance.
At the end of 2006-2007, TransGrid’s total asset value had grown to $3.9 billion.
TransGrid is continuing to develop organisational efficiencies, closely monitoring costs and achieving the utmost from its existing asset stock to ensure the organisation attains the maximum financial performance possible.
Revenue for the year was above expectations resulting from a higher than anticipated service standards incentive payment, along with recoveries from external parties for deviation works on TransGrid’s transmission lines and higher income from asset maintenance and telecommunication services.
12
CAPITAL EXPENDITURE
03 04 05 06 07
($Million)
260.9
279.8
138.3
158.6
RETURN ON EQUITY (%)*
�.04�.94
3.�3
�.30
4.25
03 04 05 06 07
RETURN ON ASSETS (%)*
�.34
5.11
�.55
�.15
03 04 05 06 07
218.2
INCOME
478.5
451.2452.6
412.0
03 04 05 06 07
504.8�.05
($Million)
* Return on Equity is calculated taking into consideration post-tax profit.* Return on Assets is calculated taking into consideration net borrowing costs. * The Return on Equity & Return on Assets figures from the 2005 Financial Year onwards are calculated based on AEIFRS requirements.
TransGrid continues to deliver strong financial performance. For the 2006-2007 year, pre-tax profit again exceeded the shareholder’s target. A “headline” operating profit before tax of $171.6 million was achieved.
NETWORK RELIABILITY(system minutes lost)
4.4
2.2
0.15
0.�8
03 04 05 06 07
NETWORK AVAILABILITY %
99.�4 99.�5 99.5999.4�
03 04 05 06 07
SAFETY (LTI’s)
2.1 2.1
3.�3.�
03 04 05 06 07
1.�
99.44
1.19
13
This past year has been a very rewarding one for TransGrid with regard to OHS performance. Although not achieving our goal of zero occupational injuries and illnesses, we recorded our lowest annual Frequency and Average Lost Time Rates (1.6 and 2 respectively).
A number of new initiatives were introduced during the year with a proactive focus on prevention. The “Fit For Work” Program was launched for our field workers whose duties often involve higher risk activities. Occupational Therapists were engaged to work with our Health and Safety team to develop an assessment tool aimed at improving the physical fitness of these employees. This is gradually being rolled out to all TransGrid locations in NSW.
A Safety Improvement Workshop was conducted in consultation with our OHS Committee Chairpersons and other representatives from various classifications and locations. This resulted in a number of perceived problems being highlighted and addressed before they could manifest into more significant issues. A number of recommendations were developed by the participants and subsequently endorsed for implementation by the Executive OHS Committee.
TransGrid’s OHS Management System was audited and certified to Australian Standard 4801 by SAI Global during the year. TransGrid also maintained our self insurer licence for workers compensation following successful WorkCover audits
of our OHS Management System and our Claims Management and Injury Management processes.
As with other NSW Government agencies, TransGrid has adopted the “Working Together – Public Sector OHS & Injury Management Strategy 2005 - 2008” and is confident of achieving the targets set out in the strategy which align with the National Occupational Health and Safety Strategy.
This past year has been a very rewarding one for TransGrid with regard to Occupational Health & Safety (OHS) performance. Although not achieving our goal of zero occupational injuries and illnesses, we recorded our lowest annual Frequency and Average Lost Time Rates (1.6 and 2 respectively).
Portable Earthing Equipment Trailer
Safety Day 2006
TransGrid’s twelfth annual Safety Day was held in Newcastle on the 24 August 2006 with all TransGrid locations represented.
There were some very graphic “injuries” that required the first aid teams to call on all their skills in prioritising and managing the casualties and the situations they were in. The fire events and risk assessment were also quite challenging in testing the effectiveness of training.
The Minister for Energy and TransGrid’s Board Members also attended and were very impressed with the level of skill shown by all the competitors. In addition, representatives from WorkCover, Department of Energy, Utilities and Sustainability, NSW Fire Brigade and TransGrid’s insurers (FM Global Insurance and Willis Australia) also attended. A number of retirees from Newcastle came along to meet up with old colleagues and re-live some of their own past experiences in these competitions.
A number of Safety Displays provided a very interesting insight into some of the equipment and work activities undertaken by our staff and was very well supported by the attendees.
As in previous years, the competition was intense. Yass and Tamworth were divisional
winners, with Yass taking out overall honours and the Safety Day Shield.
TransGrid would also like to congratulate our Apprentice First Aid Team who competed in the Electricity Supply Industry Field Days competition and proved their skills in being awarded Runner Up.
Chairman’s Safety Award
The Chairman’s Safety Award promotes safety by recognising an individual or team who has made a significant contribution to safety in TransGrid. The stand-out winners were Dave Moore and Glenn Roberts of Newcastle for their solutions to a range of manual handling hazards associated with the handling and application of portable earthing equipment during High Voltage (HV) switching and earthing processes.
A risk assessment identified a number of hazards and risks associated with this work and extensive research conducted both within Australia and overseas failed to identify existing plant or equipment that could be procured to control the hazards. Dave and Glenn then developed some innovative ideas for the design and fabrication of a Portable Earthing Equipment Trailer which eliminated or minimised most of the risks identified.
14
Health and S
afety
15
Managing O
ur Business
Business Services
Process Improvement
TransGrid operates under a regulatory regime administered by the Australian Energy Regulator. Part of this regime seeks to ensure that TransGrid operates in an efficient cost environment. In the current regulatory period, the regulator set the organisation some challenging performance targets. In response, TransGrid took up the challenge to achieve outcomes better than the target set. To date, TransGrid has been able to beat this target, containing operating expenditure and achieving a real cost reduction of 2.6% over the first three years of the regulatory period to June 2007. This is despite constructing and installing additional assets over the same period of $515.1 million .
This has been achieved by the review of work processes across the organisation and the introduction of process improvements which have reduced costs and freed up staff to carry out tasks which add value to the business.
During the year, Organisational Resource Plans were developed to clearly define the skills and resources required to deliver TransGrid’s future maintenance requirements and capital works projects. This skills requirement was then matched against the existing workforce and plans prepared to recruit and/or develop additional resources to fill these skill gaps.
During 2006-2007 other improvements introduced included :
• Introduction of an improved Capital Works Corporate Governance Methodology to ensure transparency at Board and Executive level of TransGrid’s major Capital Works projects
• Implementation of an Advanced Contract Administration System to better track and monitor TransGrid’s Capital Expenditure project specifications and contracts
• Introduction of a system of Principal Arranged Insurance which has reduced contractor liability risk to TransGrid as well as refined and simplified contract negotiations
• Through new cost effective banking arrangements, implemented a new electronic process to manage Credit Card transactions, streamlining transaction processing and strengthening financial controls
• A complete review of TransGrid externally provided telecommunication services, leading to a significant annual saving in telecommunication costs.
Financial Management
With the strict financial targets imposed by the regulator and the aim to improve financial performance, careful monitoring of all expenditure occurs. Financial expenditure and performance against budget is analysed and reported at all levels of the organisation.
In addition, careful assessment is made of cash requirements and the impact of these requirements on TransGrid’s debt levels. Substantial work in recent years has gone into monitoring cash flows to minimise changes in debt levels with a resultant impact on interest costs. In 2006 - 2007, this has resulted in a significant reduction in gross interest costs despite maintaining debt levels at an almost constant figure and during a period of rising interest rates.
In addition, the Board commissioned a review into possible interest rate risks flowing from TransGrid’s regulated status and the underlying regulatory revenue formula. The review sought input from commercial banks and NSW Treasury Corporation. The review confirmed TransGrid’s processes were sound and the debt management strategy (with some minor modifications) was the optimum for handing the regulatory risk.
Max Menzies Network Controller State System Control Centre
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Network Services
The Network Services Business Unit’s primary responsibility is to manage and maintain TransGrid’s high voltage transmission assets and associated protection, metering, control and communication systems in accordance with corporate policies and strategies. It is also responsible for the maintenance of property and easements associated with the network assets, the field management and commissioning of all capital projects, and to a lessening degree undertaking external work that is consistent with its expertise and capabilities.
The key deliverable for Network Services is to manage the assets and resources in order to meet defined levels of performance in terms of cost, reliability, availability and quality. The achievement of these objectives will at all times be performed so as not to compromise organisational commitments in regards to safety, the community and the environment. Network Services continues to achieve its objectives through five business groups as follows:
Three geographic Regions - Northern Region, Central Region and Southern Region – each responsible for the maintenance of high voltage transmission assets, associated property and easements in accordance with policies and procedures, the field management and commissioning of capital projects, and providing local contact and interface with customers and the community.
Technical Services Group - responsible for the asset management strategies, policies and procedures related to TransGrid’s protection, metering, control and communication equipment including all the maintenance, refurbishment and replacement of this equipment, and the field management and commissioning of all secondary systems related to capital work.
Support Group - a recently formed centralised support group responsible for providing specialised business functions including budget preparation, financial reporting, regulatory reset matters, internal benchmarking, productivity and efficiency reporting, waste management tracking and the administration of business standardisation and compliance issues within Network Services. This group is also responsible for the co-ordination and implementation of new business systems.
Asset Management and Maintenance
TransGrid’s objectives for asset management and maintenance are met through the implementation of the Network Management Plan 2007-2011. The Plan provides a basis for ongoing analysis within TransGrid and for continual improvement of the transmission system’s management.
In line with these objectives TransGrid has continued to review and improve its asset management and asset maintenance techniques during 2006-2007 in order to produce best practice performance from its assets.
TransGrid’s asset management strategy is fulfilled by:
• Establishing maintenance policies for refurbishment or replacement work
• Undertaking the required maintenance or refurbishment work
• Assessing actual compliance with policies
• Reviewing the performance trends of plant
• Comparing practices with other best practice transmission organisations.
These strategies are supported by:
• Specialist working groups responsible for identifying specific performance related issues then undertaking detailed investigation across the entire network. Asset management strategies are then reviewed to manage plant performance and risk exposures.
• Maintenance policies for each type of asset class with the maintenance regime described as preventative or corrective where:
> Preventive maintenance is planned routine maintenance of equipment with a purpose to achieve and, if possible, improve equipment design life to avoid any unplanned maintenance activity. This is achieved through inspection, cleaning, painting, lubrication, testing, adjusting, or minor component replacements
> Corrective maintenance is related to the repair of significant defects normally identified during the routine maintenance work and
> Both preventative and corrective maintenance plans are subject to prioritisation to ensure their impact on reliability, availability, safety, environmental and economic factors are taken into account
• Maintenance work is then planned in accordance with the approved maintenance policies utilising a Works Management System which is monitored on a monthly basis
Replacing wooden poles with concert poles
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• The vast majority of all maintenance work is performed by highly skilled TransGrid staff using modern technology and equipment with the exceptions of vegetation management works which are outsourced to competitive tenders
• Quarterly Asset Performance Reviews are undertaken to examine in detail the trends, causes and consequences of all forced and emergency outages of all network plant. These reviews are supported by detailed investigations and management strategies giving consideration to reliability, availability, cost, the environment or safety
• Technical Performance Assessments are conducted on an annual basis whereby processes, technical documentation and condition of plant are reviewed for compliance with policies and standards.
TransGrid has also continued participation in benchmarking its asset management and asset maintenance processes through the International Transmission Operations and Maintenance Study (ITOMS) program. The program involves over 25 transmission organisations worldwide, including Europe, Scandinavia, North America and all the Australasian Transmission Utilities. The results from these studies have assisted TransGrid to improve its operations and maintenance performance to be recognised as best practice in a number of categories. This latest study will utilise data from the 2006-2007 financial year and the results will be available in early 2008. When combined all the above processes provide a clear methodology and valuable feedback on the performance of the network as a whole, including staff efficiency and productivity levels, which allows both proactive and reactive adjustments to be made to procedures and policies as required.
Network Development and Regulatory Affairs
Network Planning
The New South Wales transmission network has been planned and developed by TransGrid and its predecessor organisations, The Electricity Commission of New South Wales and Pacific Power for over fifty years.
The experience and expertise gained over this half century of transmission delivery enables TransGrid to truly claim to be a world – class electricity company.
TransGrid has two main transmission network planning responsibilities:
1. TransGrid has been nominated by the Minister for Energy to be the Jurisdictional Planning Body (JPB) for New South Wales
2. TransGrid is registered with National Electricity Market Management Company (NEMMCO) as a Transmission Network Services provider (TNSP) and is required to coordinate planning with Distributors
As part of its Jurisdictional Planning Body and National Electricity Rules responsibilities, TransGrid undertakes an Annual Planning Review. This review is based on the load forecasts provided by Distributors and directly connected customers for a 10 year planning horizon.
The review culminates in the publication of the Annual Planning Report (APR). The APR provides advanced information to market participants and interested parties on the nature and location of emerging constraints in the New South Wales (NSW) electricity network.
The timely identification of emerging constraints allows the market to identify potential demand management solutions and TransGrid to develop and implement appropriate and timely network solutions.
The APR for 2007 includes:
• An update of TransGrid’s NSW load forecast that took account of actual peak loads for winter 2006 and summer 2006-2007
• Provision of load forecast data for inclusion in NEMMCO’s 2007 Statement Of Opportunities (SOO) and Annual national Transmission Statements (ANTS)
• Ongoing planning analysis and identification of network constraints and assessment of feasible options for relieving these constraints
• NSW Energy and Demand projections
• Completed, committed and planned augmentations
• NSW proposed network developments within five years.
The APR is underpinned by TransGrid’s network planning approach.
Major Reviews of National Electricity Market Transmission Arrangements
Both the Australian Energy Markets Commission (AEMC) and Australian Energy Regulator (AER) have been active on matters of significant relevance to TransGrid during the year.
There was also significant policy level review of matters affecting transmission in the National Electricity Market (NEM) involving both the Council of Australian Governments (COAG), and the Ministerial Council of Energy (MCE), during the year. In overall terms, TransGrid contributed either directly, or indirectly, to more than 35 separate consultations by these various bodies.
The new transmission revenue setting Rules established by the AEMC in November 2006 are of particular note. These Rules consolidate, and improve, the arrangements for regulating transmission revenues and service performance in the NEM. They also set out the requirements to be met in TransGrid’s upcoming revenue cap application to the AER, as well as requiring the AER to prepare a set of guidelines by September 2007 to give further clarity to this process. By 30 June 2007 consultation on the AER’s guidelines was well underway.
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The transmission prices to Distributors and directly connected customers for 2007-2008 have increased in real terms. This is due to real increases in revenue provided for in TransGrid’s current revenue cap decision by the ACCC and an expected levelling off of payments to TransGrid for NEMMCO.
A significant proportion of TransGrid’s total revenue will be provided from the proceeds of NEMMCO’s settlement residue auctions and from intra-regional settlement residues, providing a rebate on the final charges to customers.
Customer Relations
TransGrid is the predominant transmission network service provider in NSW and provides the link between generators and consumers of electricity within the NSW region and connections to the Queensland and Victorian transmission networks. Its network provides the backbone that facilitates electricity sales and purchases in the National Electricity Market. TransGrid’s customers comprise both existing and prospective purchasers of network high voltage transmission services. TransGrid’s network is designed and operated to ensure the services and reliability delivered to our customers meet their expectations and TransGrid’s obligations under the National Electricity Rules.
Our existing customers include:
• Major generators who are the producers of electricity. This category includes generating companies such as Delta Electricity, Eraring Energy, Macquarie Generation and Snowy Hydro Limited
• Large industrial consumers of electricity who are directly connected to TransGrid high voltage network. TransGrid has three directly connected end-use customers currently connected to the transmission network
• Other Distribution Network Service Providers. This category includes distributors within the NSW region such as EnergyAustralia, Integral Energy, Country Energy and ActewAGL
• Inter-regional customers connected through the inter-regional interconnectors such as Powerlink (Queensland) and SPI Powernet (Victoria).
The Energy Reform Implementation Group (ERIG) was responsible for the other very significant transmission review during the year. ERIG was established by COAG to develop recommendations on market structure, trading risk management, and transmission arrangements. In relation to transmission, ERIG has proposed changes to the planning of national transmission flow paths, the regulatory test, and the form of national transmission reliability standards. The AEMC has been tasked by the MCE with developing the specific arrangements during 2007 - 2008. Significantly, the proposed changes require clear accountability for transmission service outcomes remaining with the NEM Transmission Network Service Providers (TNSP). The AEMC is also required to ensure that the new arrangements do not add delays to required transmission augmentations. This last point is of particular importance in a period of significant transmission investment.
Finally, the development of the National Electricity law continued, including proposals to introduce a form of limited merits review of specific decisions by the AER associated with transmission revenue cap regulation. These developments are vital to finalising effective and accountable Governance arrangements generally in the NEM, and transmission regulation in particular.
Other reviews of importance to TransGrid during the year included the regulatory test dispute processes and the form of the regulatory test itself, transmission pricing arrangements, technical performance standards to be met by generators and customers seeking access to the transmission network, the AEMC’s comprehensive reliability review, and the AEMC’s congestion management review. These latter two reviews are scheduled for finalisation during 2007-2008. The changes to the regulatory test dispute processes, now included in the Rules, appear to improve timeliness and remove duplication of effort. As such, they should assist TransGrid in delivering a challenging augmentation program, required to maintain service outcomes, including high standards of transmission reliability, as demand grows.
Transmission Pricing
TransGrid’s prices for 2007-2008 were published in May 2007, as required by the National Electricity Rules. Prices to our customers are based on the revenue determination by the former regulator, the Australian Competition and Consumer Commission (ACCC).
TransGrid has continued to act as the Coordinating Network Service Provider for New South Wales and Snowy regions for the determination of transmission prices in those regions of the National Electricity Market.
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Variation of Daily State Demand (MW)
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TransGrid is working with a number of potential new customers who have approached TransGrid and have made an application to connect to its high voltage network. Over the reporting period these new customers have been primarily requesting connection of possible new electricity generation to the transmission network. The number of these requests is expected to increase with competition between new investors to develop projects that will lead to the building of new generation plant in New South Wales.
TransGrid is continuing to work with its existing and prospective customers by providing assistance to them to maintain compliance with all obligations of the National Electricity Rules.
Demand Side Management and Non-Network Alternatives
Non-Network Alternatives
TransGrid is committed to considering non-network alternatives such as Demand Side Response (DSR) and embedded generation to address emerging constraints to meet its reliability obligations to its customers.
Requests for Proposals (RFP) covering main system non-network alternatives have been issued during the 2006-2007 financial year.
The RFP relating to the western 500kV transmission system upgrading drew responses from several companies proposing embedded generation solutions as well as Demand Side Management initiatives. The RFP
requested network support for 350MW in order to address two types of constraints – thermal line rating and voltage levels in the Newcastle/Sydney/Wollongong areas. Following Board approval, TransGrid is initiating negotiations for network support agreements with a number of proponents
Dedicated project for Demand Management (DM) and Local Generation in Sydney CBD Area Demand Management Planning Proposal (DMPP)
TransGrid and EnergyAustralia are supporting this project by committing a total of $10 million towards implementation of the project over a five-year period.
A number of reports on completed projects are published on the Demand Management and Planning Project website (http://www.planning.nsw.gov.au/dmpp/).
In addition to two major cogeneration projects, residential energy efficiency programs have been launched in two large Sydney metropolitan councils Manly Council and Randwick City Council. Energy-conscious residents in the two councils signed a pledge agreeing to practise a number of energy saving challenges over the coming year.
These residents were given the chance to receive free home energy audits to uncover the energy efficiency potential throughout their households. The total expenditure by TransGrid on the project for the financial year ending 30 June 2007 was $1.5 million.
Information Technology
To manage TransGrid’s diverse asset base spread across the state and provide access to staff working in remote locations, the organisation has a comprehensive Information Technology system. During 2006 - 2007, Information Services Group (ISG) continued to successfully implement TransGrid’s IT Strategy on time and on budget.
Standardisation of IT platforms and service delivery have resulted in cost reductions and enhanced efficiencies, examples include:
• A standard applications development environment has been adopted and used to successfully deliver four new business applications, resulting in the retirement of a significant number of legacy mainframe applications
• Implementation of tools for remote support to provide an improved level of service without the need for staff to travel to site. This has allowed Business Units to reallocate staff that previously performed the role of Computer Liaison Officers
• Desktops and laptops have been rationalised to reduce ongoing maintenance and support costs. Printer rationalisation principles have been implemented
• TransGrid has established both Production and Disaster Recovery data centres on different TransGrid owned sites, which reduces facilities management costs and further reduces the potential disruption if TransGrid were to transition to another external IT service provider
• A portal has been implemented for all TransGrid staff to log and monitor IT service requests
• Redundancy in the corporate data network has been implemented with the triangulation of metropolitan sites and the implementation of a Disaster Recovery internet gateway
• Elements of the best practice IT service delivery methodology or ITIL model have been implemented, improving the reliability, quality and consistency of IT services delivered across TransGrid
• Currency of portfolio of applications and infrastructure have allowed TransGrid to adopt a shared services model with it’s external IT service provider, so resources can be shared by a number of customers resulting in economies for TransGrid.
Ongoing enhancement of service levels to ensure required response times are in accordance with agreed business requirements.
Melanie Dunnill
Communication ApprenticeNew transformer transport
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132kV concrete single pole transmission lines to the West of Wagga Wagga,
Land and Property Management
TransGrid has a large land and property portfolio consisting of substation land and surrounding buffer zones together with easements for the high voltage transmission line network.
Significant property assets acquired during 2006 - 2007 included the new Bannaby Substation site, Macarthur substation site at Menangle Park as well securing a new switching station for the proposed Wollar - Wellington transmission line. In addition rights were secured for a number of small infrastructure projects throughout the State.
In respect to transmission lines the Property Group continued to secure rights for existing infrastructure throughout the State. In particular long standing negotiations with both State Forests and National Parks were concluded leading to formalised rights over two major land parcels.
Reviews have been conducted of TransGrid’s holdings throughout the State to ensure all responsibilities are met and where possible excess available land has been appropriately managed or disposed of as necessary.
Stores and Transport
With much of TransGrid’s assets being sourced from overseas, the organisation maintains a core of strategic spares for both normal maintenance and emergencies. These spares are spread across the state and are managed through a computerised inventory system to ensure efficient inventory levels are maintained and to seek out a necessary spare part when required irrespective of where it is held.
During the year, reviews were conducted on inventory holdings to identify obsolete stock. This has resulted in the removal of $1.2 million of obsolete stock thereby freeing up warehouse space for additional spares needed to support the maintenance programs. Additionally, a review of stocktaking and asset checking procedures was conducted leading to a reallocation of labour to more important customer related services.
Mick Smith Power Worker and Geoff Perry Storeman unloading a drum of
olive conductor at Wallgrove
As the network is spread from Lismore to Broken Hill and many cities and towns in-between, TransGrid maintains a fleet of work vehicles and mobile plant. The organisation requires specialised vehicles to access high transmission towers in sometimes difficult terrain.
To ensure the safety of our staff as well as meet the work requirements to effectively maintain the assets, TransGrid gives careful consideration to the choice and type of vehicles purchased. In 2006-2007, TransGrid purchased a number of 46 metre Elevating Work Platforms (EWP) which has reduced the need to climb towers and therefore improve safety. These EWPs have also increased productivity within the Network Services group.
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Capital P
rogram D
elivery
Current Projects
Major Capital Works
The New South Wales economy is expanding and with that expansion comes a parallel expansion in population and Industry. Such growth has not only occurred in the traditional hub large cities such as Sydney, Newcastle and Wollongong but up and down the NSW coast and inland as well.
TransGrid’s capital works program of some $1.2 billion is targeted to meet this challenge.
TransGrid is also currently driving a major on-going program of refurbishment and replacement of aging assets to ensure efficient and reliable supply to all customers continues unabated.
The capital works program is the result of extensive planning and investment analysis aimed at delivering the most efficient outcome for network users. The regulatory environmental approval processes for major projects are complex and challenging, and successful projects require extensive stakeholder consultation to ensure the best and most efficient result is achieved. TransGrid’s capital works program and replacement and refurbishment program requires not only a financial framework second to none but also demands a strong design and project management framework, covering the complete range of activities of the teams providing project management, contract administration, design, environmental assessment and construction of major capital projects.
The organisation is vigilant in all these areas to ensure the people of NSW receive the best outcome in the provision of electricity infrastructure.
Coffs Harbour Substation
This new state of the art 330/132kV substation is a key component in Australia’s national electricity grid and plays a vital role in the supply of high voltage electricity in Australia. It is an important part of TransGrid’s current $1.2 billion capital expenditure program.
The substation provides a significant boost to supply capacity and reliability to the mid-north coast of NSW. The new substation has been established adjacent to the existing 132/66kV substation at Karangi, about 10 kilometres west of Coffs Harbour city. The substation was commissioned on 15 August 2006.
In building the new substation adjacent to the existing substation, TransGrid employed innovative engineering solutions to achieve its objectives of environmentally responsible design and construction methods and adherence to the highest standards of safety; whilst the existing substation remained in operation throughout the whole project.
Environmental considerations were at the forefront of TransGrid’s planning and implementation of the new substation.
These considerations cover important issues as noise controls, air quality and protecting our heritage. All environmental controls were monitored during the project to ensure that it progressed in a way that safeguards the environment.
Wellington Substation Transformer Replacements
The two main power transformers at Wellington Substation were replaced in 2006 and early 2007 with larger 375MVA units. The new transformers will provide increased capacity to Central Western NSW. One of the existing transformers was relocated to Wallerawang Power Station Switchyard.
Glen Innes 132/66kV Substation
The rebuild of Glen Innes 132/66kV Substation involved the construction of a replacement substation adjacent to the old existing substation. The original substation was an aging asset that could not be expanded to meet the reliability requirements for the Glen Innes area. The new substation has two 60 MVA transformers, two 132kV feeders and two 66 kV feeders. The main works associated with this development has been completed and the substation meets the latest TransGrid standards for security, automation, monitoring, and environmental protection.
The Glen Innes project has achieved all the objectives established at its commencement. The new substation was placed in service in March 2007, two months earlier than the planned date agreed with Country Energy.
TransGrid used a new form of contract for this project that shifted many project responsibilities to the contractor but ensured an outcome that would be compatible with TransGrid’s future developments and asset programs. This was a significant change for both TransGrid and the contractor particularly in the areas of design, procurement and pre-commissioning where responsibility was allocated to the contractor but using TransGrid standards. A particular success of this project has been the shift in roles and responsibilities and the positive approach of both organisations to achieve a project that is successful on all fronts.
Armidale 330kV Substation Transformer Replacements and Augmentation
To ensure reliable supply to the New England area, the three aging 330/132kV transformers at Armidale have been replaced by two 375MVA units, which will provide increased transformer capacity and less operational complexity. Other aging equipment is also being replaced as part of the works. The first new transformer was placed in service in May 2007, while the second transformer is scheduled for service in October 2007.
Yass Regional Centre
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Future Program Delivery
500kV Transmission Network
Impact of Continued NSW Customer Demand Growth
Customer demand for electricity is growing at about 300MW per year in the Newcastle-Sydney-Wollongong area.
To meet this need, there will be opportunities both for new generation in the Sydney basin and demand side response.
However, most of the new electricity will continue to be sourced outside of the Newcastle-Sydney-Wollongong area, from electricity derived from gas, wind or coal.
Consequently, as this electricity demand grows, the NSW network needs to:
– transmit increased power flow from local or interstate generation to these major load centres
– allow the connection of any necessary new generation capacity and
– have sufficient capacity to support the required power system reliability and security.
The Need for a 500kV Transmission Network in New South Wales
The installed 330kV transmission network will in-turn be inadequate to deliver the longer-term NSW high voltage electricity supply needs particularly with electricity demand growth in Sydney, Newcastle and Wollongong.
Increasing customer demand in the Sydney, Newcastle and Wollongong major load centre is now approaching the capacity of the main NSW 330kV electricity delivery system.
The existing NSW 330kV transmission network has only limited locations where major generation could be connected without causing significantly increased constraints on the technical capability of the network.
Development of the 500kV Ring as a Solution
Planning of the main transmission system must take into account the potential for the development of major generation sites and major loads. Where a network solution is appropriate TransGrid has an obligation to develop the transmission system in an environmentally and socially responsible and cost effective manner.
All developments are subject to the regulatory requirements of the National Electricity Market Rules, and must be subjected to an environmental assessment.
Consistent with this objective, TransGrid has for many years developed the concept of a high capacity 500kV ring linking the Sydney, Newcastle and Wollongong load centres with major generating centres located in the Central Coast, Western coalfields and Hunter Valley as one approach to addressing the future electricity delivery requirements of customers in the main load areas.
The potential 500kV ring is shown in conceptual form above, and already includes the following developments:
Central Coast to Sydney
The Eraring – Kemps Creek 500kV line was the first segment of the 500kV ring constructed. This was completed to connect Eraring Power Station in 1984 and is already operating at 500kV.
Hunter Valley to Western Power Stations
The second segment completed was the Bayswater – Mt Piper 500kV line, associated with the development of Bayswater Power Station in the late 1980s. This line was built at 500kV capability but is currently operating at 330kV.
Western Power Stations to Southern Area
The Mt Piper – Marulan line was developed in the early 1990s as the third segment to connect Mt Piper Power Station. This segment between Mt.Piper and Marulan was also built for 500kV but currently operates at 330kV.
Progressive Development of the 500kV Ring
TransGrid’s network solution to assist in meeting the future customer demand growth for electricity in the Sydney, Newcastle and Wollongong area is proposed to be delivered by the progressive development of the following 500kV transmission ring segments:
1. Western 500kV Conversion
The first stage of the proposed Western 500kV conversion is currently being implemented to meet the growing demand in the Sydney, Newcastle and Wollongong area.
This next step in the development of the 500kV Ring requires the conversion of the existing Western area transmission lines from Bayswater to Bannaby (near Marulan) currently operating at 330kV, to 500kV operation.
Bayswater 500kV Switchyard Development
This project involves the development of a 500kV Switchyard at Bayswater 500/330kV Substation. This project is within the boundaries of the existing Bayswater Power Station and once implemented will realise the vision of the power station when it was first built.
The switchyard will contain the latest 500kV technologies from around the world allowing a more compact and efficient development than was originally planned for Bayswater.
SydneyWollongong
Newcastle
NSWNorthern
Load
SouthernLoadArea
Central CoastPower Stations
WesternPower Stations
SnowyPower Stations
Power transfers to and from Queensland
Power transfers to and from Victoria
Hunter ValleyPower Stations
Existing 500 kV
Existing 330 kV
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Western 500kV conversion
Development of the 500kV Ring Supplying the Newcastle/Sydney/Wollongong Area
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Historical New South Wales Energy Use GWh
Gemma Holdsworth
and Andrew Kingsmill
working on 500kV
plans
Mt Piper 500kV Switchyard Development
This project involves the development of a 500kV Switchyard at Mt Piper 500/330kV Substation. Mt Piper will become a key link in the NSW 500Grid.
Bannaby 500/330kV Substation
This project involves the development of a 500kV Substation at Bannaby, Southern NSW.
Bannaby will become the largest substation on the TransGrid network forming the major connection between the Western ring of NSW 500Grid, The Snowy Mountains and the transmission lines to Sydney and Wollongong that the proposal will intersect.
The location of such a large development in the highlands near Taralga in southern NSW will require innovative design and TransGrid will facilitate extensive consultation with nearby landowners and local stakeholders.
2. Hunter Valley to Central Coast
The development of this segment of the 500kV Ring may be precipitated by the development of:
major loads in the Newcastle area
additional generation in the Hunter Valley
or further north, the increased import of powerfrom Queensland
or the development of western NSW power stations.
3. Bannaby to Sydney
This segment of the 500kV Ring may be required for any major power station development in the west, south coast or south of the state or to accept greater electricity import from Victoria.
4. Central Coast to Sydney
This additional segment may be required for any further northern power station proposal or significant load growth in the Newcastle area or Greater Sydney area.
Coffs Harbour to Kempsey 132/66kV Transmission Line Conversion
To meet the growing demand for electricity in the mid north coast region between Taree and Coffs Harbour, a joint transmission line project with Country Energy is underway. The project utilises existing infrastructure and
developments to minimise any new impacts. An existing Coffs Harbour to Kempsey transmission line will be operated at 132kV and new 132kV substations will be constructed by Country Energy at South Boambee (West Sawtell), Raleigh and Macksville.
TransGrid will undertake 132kV transmission line works to connect these new substations, as well as completing augmentations at Kempsey, Nambucca and Coffs Harbour Substations.
Kempsey to Port Macquarie 2nd 132kV Transmission Line
The increasing population and growing demand in the Port Macquarie and Taree area requires the construction of a second 132kV circuit between the existing Kempsey and Port Macquarie Substations. To reduce environmental impacts, this will be accomplished by building a new double circuit line within the easement of the existing 132kV transmission line, which will be dismantled on completion.
Kempsey Substation Transformer Replacements
To meet the growing demand in the mid-north coast, the aging 30MVA 132/33kV transformers at Kempsey Substation are being replaced with new 60MVA
units. Other aging equipment is also being replaced to increase the capacity and reliability of the substation. The works are being coordinated with the Coffs Harbour to Kempsey 132kV supply upgrading work to ensure a reliable and improved supply to the region.
Port Macquarie Substation Transformer Replacements and Augmentation
To ensure reliable supply and meet growing demand in the mid-north coast, the 132/33kV 30 MVA transformers at Port Macquarie Substation are being replaced with new 60 MVA units. The first transformer was commissioned in June 2006, the second just before Christmas 2006 and the last is scheduled for completion in late 2007.
24
Wagga North 132kV Substation
The project is for the establishment of a new 132/66kV substation at Bomen to meet the growth in demand on the Country Energy network in the Wagga area.
The 132kV substation will be based on the recently completed Glen Innes Substation and located adjacent to an industrial area north of Wagga.
Wallgrove Transformer Replacements
To provide a continuing reliable supply and meet ever-growing demand for electricity in the western Sydney area, TransGrid has in place a program to replace the four existing 375 MVA transformers.
The first new transformer was placed in service in late 2005, with the remaining three being placed in service in late 2006 and in 2007. The work must be done when the load is at its lowest (in spring and autumn) and under very tight time constraints.
Glen Innes - Inverell Transmission Line
TransGrid and Country Energy have been working together to meet the growing reliability and energy needs of the Inverell/Moree/Narrabri/Gunnedah area. To overcome potential future voltage constraints TransGrid is proposing to build a new 132kV transmission line between Glen Innes and Inverell.
Rearrangement of 132kV transmission tower in Southern NSW
Macarthur 330kV Substation
The project involves the establishment of new 330kV Substation in the Macarthur area to provide 132kV and 66kV supply to South West Sydney.
Macarthur Substation is to be located on a site adjacent to the Southern Railway, Southern Freeway and Mt Annan Botanic Garden.
Wollar to Wellington 330kV Transmission Line
There are currently limitations in the transmission network servicing Central Western New South Wales, to overcome these potential constraints TransGrid is building a new 330kV transmission line between Wollar and Wellington.
The new line will maintain reliability of supply and cater for future load growth in the area. The new line will supply Central Western NSW via the existing Wellington substation and from a new substation at Wollar.
Connection of New Generation Capacity Needed or Expected in NSW
The potential development of the segments 2, 3 and 4 of the 500kV Ring will be determined only when firm plans for the development of any new major power stations are proposed and hence the timing of the expected need for the delivery of these additional supplies to the main load areas become known.
Apprentice linesmen working on 500kV tower 25
2�
Transmission Line Projects
Wollar to Wellington 330kV Transmission Line
• Establishment of a 330kV Transmission Line between Wollar and Wellington
Coffs Harbour/Nambucca / Kempsey 132kV Transmission Line
• Joint project with Country Energy who are building 3 substations
• TransGrid to upgrade the capacity of an existing line from 66kV to 132kV
Kempsey to Port Macquarie 132kV Transmission Line
• Establishment of a 2nd 132kV Transmission Line between Kempsey & Port Macquarie
Glen Innes to Inverell 132kV Transmission Line
• Establishment of a new 132kV Transmission line between Glen Innes and Inverell on an existing Country Energy line route
Manildra to Parkes 132kV Transmission Line
• Establishment of a new 132kV Transmission Line between Manildra and Parkes
Dumaresq to Lismore 330kV Transmission Line
• Establishment of a 330kV Transmission Line between Dumaresq and Lismore
Yass to Wagga 132kV Transmission Line
• Rebuild of Yass to Wagga 132kV Transmission Line
Transmission Line Projects
2�
Broken Hill
Buronga
Balranald
Griffith
Coleambally
FinleyDeniliquin
Darlington Point
Wallerawang
Mt Piper 132
Avon
Kangaroo Valley
Dapto
BayswaterLiddell
DumaresqTenterfield
Lismore
Mudgeeraba
Koolkhan
Glen Innes
Coffs HarbourArmidale
Tamworth 330Tamworth 132
Gunnedah
Narrabri
Moree
MuswellbrookTareeBeryl
Wellington
Wollar
Parkes
Forbes
MurrumburrahYanco
Wagga 132
Wagga 330Queanbeyan
Canberra
CoomaSnowy Adit
Guthega
Munyang
Upper Tumut
Murray
Lower Tumut
Hume
Jindera
Albury
ANM
Yass
Marulan
TumutGadara
Molong
Orange
CowraPanorama
Nambucca
Kempsey
Port Macquarie
Inverell
Wodonga
Redcliffs
Bulli Creek
Dederang
Burrinjuck
Manildra - Parkes
Yass - Wagga
Wollar - Wellington
Dumaresq - Lismore
Glen Innes - Inverell
Coffs Harbour - Kempsey
Port Macquarie - Kempsey
Bannaby
500kV Transmission Line330kV Transmission Line220kV Transmission Line132kV Transmission Line66kV Transmission Line330kV Underground CableProposed
500kV Substation330kV Substation220kV Substation132kV Substation
Interstate Exchange Point
Operating System Voltages
28
Substation Projects
New Projects
Western 500 kV ProjectEstimated cost $320 million includes:
Bannaby 500kV Substation• Development of 500/330kV Substation
Bayswater 500kV Substation• Development of 500/330kV Substation
Mt Piper 500kV Substation• Development of 500/330kV Substation
Wollar 500kV Substation• Development of 500kV/330kV Substation
at Wollar
Glen Innes 132kV Substation• Construction of a new 132/66kV Substation
Macarthur 330kV Substation• Construction of a new 330kV/132/66kV
Substation
Queanbeyan 132kV Substation• Rebuild existing 132kV/66kV Substation
Tomago 330/132kV Substation• Expansion of a 330kV/132kV Substation
Wagga North 132kV Substation• Construction of a new 132kV Substation
Williamsdale 330kV Substation• Construction of a new 330kV/132/66kV
Substation
Upgrades
Armidale 330kV Substation• Replacement of 2 x existing 30MVA transformers with
2 x new 60MA transformers (132kV)• Replacement of 2 x existing 150MVA transformers with
2 x 375MVA transformers (330kV• Instillation of 132kV phase shifting transformer
Dapto 330kV Substation• Design, supply & installation of 2 x 120 Mvar capacitor
banks & erection of 132 & 330kV gantries
Finley132/66kV Substation• Replacement of 1 x 30MVA transformer with 1 x 60MVA
transformer & placement of 1 new 60MVA transformer• Extension of Substation
Kemps Creek 500/330kV Substation• Installation of 2 x 330kV 200MVAr shunt switched
capacitor banks
Kempsey 132/33/66kV Substation• Replacement of 2 x 132/33kV main transformers• Extension of the 132kV busbar• Two new line bay & bus section breaker
Marulan 330/132kV Substation• Installation of a 330/132kV, 200MVA transformer to be
used as ‘in service” spare at Marulan Substation• Ancillary works associated with this relocation
Orange 132/66kV Substation• Augmentation & refurbishment of the Orange 132/66kV
Substation• Replacement of transformers
Parkes 132/66kV Substation• Installation of a second 132kV/66kV 60 MVA transformer
Port Macquarie 132/33kV Substation• Replacement of existing 132kV/33kV 30 MVA
transformers
Sydney South 330/132kV Substation• Replacement of 2 x transformers
Sydney West 330/132kV Substation• Replacement of 330kV electrical plant• Replacement of 3 x single phase transformers with 375
MVA unit
Tamworth 330/132kV Substation• Installation of 2 x 330kV shunt reactors
Tuggerah 330/132kV Substation• Installation of No.2 transformer
Vales Point 330kV Substation• Replacement of 2 x transformers
Vineyard 330kV Substation• Installation of new 132kV switchbay
29
BHP
Mt Colah
Mt Druitt
BayswaterLiddell
YassAvon Dapto
Sydney EastSydney North
Vineyard
Sydney West
Sydney South
Kemps Creek
Ingleburn
Regentville
Liverpool Beaconsfield West
Newcastle
Tomago
Waratah
Eraring
Vales Point
Munmorah
Tuggerah
Haymarket
INSET
Broken Hill
Buronga
Balranald
Griffith
Coleambally
Finley
Darlington Point
Wallerawang
Mt Piper 132
Avon
Kangaroo Valley
Dapto
Bayswater
Liddell
DumaresqTenterfield
Lismore
Mudgeeraba
Koolkhan
Glen Innes
Coffs HarbourArmidale
Tamworth 330Tamworth 132
Gunnedah
Narrabri
Moree
MuswellbrookTaree
BerylWellington
Wollar
Bannaby
Parkes
Forbes
MurrumburrahYanco
Wagga 132Wagga North
Wagga 330Queanbeyan
Canberra
CoomaSnowy Adit
Guthega
Munyang
Upper Tumut
Murray
Lower Tumut
Hume
Jindera
Albury
ANM
YassMarulan
TumutGadara
Molong
Orange
CowraPanorama
Nambucca
Kempsey
Port Macquarie
Inverell
Wodonga
Redcliffs
Bulli Creek
Dederang
Burrinjuck
Kempsey 132/33/66kV
Port Macquarie 132/33kV
Tamworth 330/132kV
Williamsdale 330kV
Tomago 330/132kV
Queanbeyan 132kV
Wagga North 132kV
Parkes 132/66kV
Armidale 330kV
Williamsdale
500kV Transmission Line330kV Transmission Line220kV Transmission Line132kV Transmission Line66kV Transmission Line330kV Underground CableProposed & Renovated
500kV Substation330kV Substation220kV Substation132kV Substation
Interstate Exchange Point
New ProjectsUpgrades
Operating System Voltages
Mt. Piper 500kV
Bayswater 500kV
Bannaby 500kV
Wollar 500kV
Glen Innes 132kV
Orange 132/66kV
Marulan 330/132kV
Dapto 330kV
Sydney West 330/132kV
Sydney South 330/132kV
Tuggerah 330/132kV
Vineyard 330kV
Vales Point 330kV
Finley132/66kV
Macarthur 330kV
Kemps Creek 500/330kV
INSET
Substation Projects
TransGrid’s award-winning association with Greening Australia has to date engaged more than 250 landholders and over 1000 community volunteers in focused, positive and practical groundwork to benefit the environment.
The GreenGrid partnership, which began as a local environmental sponsorship in 1997, has evolved today into a significant commitment to combine corporate and community action on a multi-regional scale. Already, GreenGrid has won the support of farmers in a time of uncertainty, enjoyed national recognition and helped to inspire similar projects in other states around Australia.
Environmental Management System (EMS)
TransGrid’s EMS was first accredited in 1996 and the organisation has maintained this certification over the past decade. During our most recent EMS audit conducted by an external certification team, the auditors stated that:
“Environmental management continues to show strength and the audit revealed that the system continues to be effectively applied to evaluating compliance with environmental legal obligations and other requirements arising from TransGrid’s operations”.
TransGrid’s EMS is the primary mechanism for identifying environmental risks, developing environmental management programs to address such risks and to communicate environmental issues to staff, contractors and external stakeholders.
Environm
ental Perform
ance
A Great Barred Frog, an
endangered species being
protected through TransGrid’s
EarthWatch sponsorship
30
Jane Burkitt Environmental Scientist working on the rehabilitation of the Yass River, Yass
31
32
Some of the system highlights include:
• Implementation of our Environmental Compliance Audit Strategy
A key part of the system is to inspect a range of activities and sites to confirm compliance with legal and other requirements.
• Identification of our Significant Environmental Aspects
An annual workshop bringing together management, technical experts and staff to identify the significant environmental risks faced by the organisation.
• Reviewing of TransGrid’s EMS Accreditation
An assessment of the EMS to verify compliance with the new EMS international standard, ISO 14001: 2004
TransGrid’s EMS is a living and growing system. TransGrid’s environmental performance and implementation of the EMS is monitored on an ongoing basis through the Executive Environment Committee.
Environmental Incident Notification
In 2005, TransGrid implemented an electronic environmental incident notification system to replace its previous paper based system. The notification system is accessed via TransGrid’s intranet and is available to all TransGrid staff, is easy to use and has been well received by staff.
If an environmental incident or near miss occurs staff are required to immediately notify their supervisor or team leader who will then log an electronic incident notification form.
The system has been designed to capture information about the incident or near miss including:
• Location, date and duration
• Incident details
• Actions taken to manage the incident
• Details of assistance from external agencies such as the Fire Brigade
• Details of adjacent land uses
• Actions taken to immediately rectify the incident and to prevent such incidents recurring
When the incident details are submitted, key management staff automatically receive notification about the incident or near miss allowing the situation to be monitored to ensure effective remedial actions have been successfully implemented.
The electronic environmental incident notification system has allowed TransGrid to more rapidly respond to environmental issues and therefore reduce the potential or actual environmental impact on the environment.
Chairman’s Environmental Award
TransGrid’s Executive and Board play an active role in supporting environmental initiatives throughout the organisation. TransGrid’s Environmental Award, is an annual program which recognises and rewards staff who develop or implement innovative environmental solutions, technologies, practices or processes.
Chairman’s Environmental Award Winner
The Chairman’s Environment Award for 2006 was presented to Stuart Johnston, Southern Region for his ongoing outstanding commitment to environmental initiatives and environmental leadership within TransGrid. As Southern Region Environment Manager, Stuart’s work has encompassed initiatives including:
• GreenGrid – A partnership between Greening Australia & TransGrid which involves the propagation and planting of native seedlings on properties throughout Southern NSW
• External Stakeholder Workshops have been conducted for the Australian Network for plant conservation on landscape regeneration at various centres across NSW
• Involvement in a number of internal projects including; the aerial laser survey of transmission lines and improvements to TransGrid’s geographic and environmental information databases which will enhance vegetation management processes around electricity transmission assets.
Through the implementation of these projects, the profile of environmental issues across TransGrid and the wider community has been raised.
Stuart was selected from a record number of nominations, all of a very high standard. Staff nominated for the award were recognised by their fellow staff for initiatives in:
• Environmental stewardship
• Land rehabilitation
• Easement management practices
• Improvements in the Yass River environment.
The nominations received demonstrate the ongoing commitment that staff have to improving TransGrid’s environmental performance. All staff nominated for the award were presented with trophies in recognition of their efforts.
Waste Management
TransGrid has an ongoing commitment to incorporating the principles of the NSW Governments 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 waste reduction initiatives in the office environment including:
• Reduction in paper use
• An increase in paper reuse and recycling
• Education programs 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
Future directions for improvement of TransGrid’s WRAPP plan include:
• Further education of field and office staff
• Enhanced collection of waste data on major capital works projects
• Increased visibility of recycling and waste reduction campaigns across the organisation.
33
Environmental Training and Authorisation
Compliance with TransGrid’s Environmental Rules is a mandatory requirement for staff and contractors when accessing or working on TransGrid assets such as transmission lines, easements, substations, depots and underground cables.
Under the Environmental Rules staff and contractors must be trained, assessed as competent and authorised to undertake certain activities on the above assets.
The Environmental Rules include a number of specific environmental trigger questions, which if tripped, require the development and approval of an internal Environmental Impact Assessment (EIA). Once an approved EIA has been issued, staff and/or contractors can undertake their work subject to any environmental controls as listed in the EIA being correctly implemented.
This system is unique in the electricity industry and provides a high level of due diligence by considering environmental risks and implementing environmental controls to reduce or eliminate these risks.
TransGrid has been working closely with agencies such as National Parks and Wildlife Services to incorporate their requirements into the Environmental Rules when work is required in places such as National Parks or Nature Reserves.
Over the past two years we have trained over 650 staff and contractors who are issued with an authorisation card for the types of assets they will be working on.
Environmental Initiatives
TransGrid has a number of environmental activities being undertaken across the state. Two of the major environmental initiatives are GreenGrid and Earthwatch.
GreenGrid
TransGrid’s award-winning association with Greening Australia in the Southern Region of New South Wales (NSW) has to date engaged more than 250 landholders and over 1000 community volunteers in focused, positive and practical groundwork to benefit the environment.
The GreenGrid partnership, which began as a local environmental sponsorship in 1997, has evolved today into a significant commitment to combine corporate and community action on a multi-regional scale. Already, GreenGrid has won the support of farmers in a time of uncertainty, enjoyed national recognition and helped to inspire similar projects in other states around Australia.
GreenGrid is a unique program where over 75% of the funding provided ends up on on-ground works, with the other 25% being spent on environmental advice and planning.
Now, within NSW, the project is poised to reach out to TransGrid’s other key areas of business through targeted initiatives. The evolution of GreenGrid from a minor sponsorship to a major partnership reflects the shared aspiration of Greening Australia and TransGrid to plan and work together to address environmental priorities such as the loss of biodiversity and the deterioration of water quality.
The program aims to achieve the following over the next three years:
• Work in partnership to address biodiversity, water quality and sustainability issues through targeted on-ground action
• Bring TransGrid staff and the community together to grow and plant native vegetation
• Improve understanding and practice of natural resource management
• Promote state-wide use of easement planting brochures to encourage the return of native woodland birds.
Earthwatch
In 2005 TransGrid entered into a partnership with Earthwatch to provide staff with the opportunity to participate in small scientific research teams around NSW. These teams undertook a range of activities in the field under the guidance of an expert scientist covering programs of relevance to TransGrid and its core activities.
TransGrid’s participation in the Earthwatch program began in 2005 with two Environmental Graduates participating in local research teams. This provided the opportunity for graduates to further develop environmental skills in areas related to TransGrid’s activities. Recognising the success of the 2005 trial, TransGrid expanded the program and offered all staff the opportunity to apply for one of four programs selected for 2006 - 2007.
The programs covered:
Australia Burning
The project involves long-term monitoring of sites which will be subjected to prescribed burning over the next one to four years in order to determine the effects of fire management and past fire history on the various animal species and vegetation types.
Echidnas and Goannas of Kangaroo Island
The project seeks to provide data on issues such as reproductive cycles, home range and juvenile dispersal that will inform our understanding of the echidna and goanna species.
Australia’s Forest Marsupials
The project involves the census of animals at a number of survey sites, including the Leadbeater’s possum, throughout the Central Highlands region of Victoria.
Australia’s Vanishing Frogs
The project involves monitoring populations of six endangered species of frogs which have declined across large sections of their former distributions in NSW.
34
Our P
eople
TransGrid’s Managing Director
Kevin Murray congratulates
Managing Director Scholarship
recipient Joshua Walker
Training and Development
TransGrid is committed to life long learning and providing quality training opportunities.
The implementation of Employee Development Programs based on competency standards continued during this year along with new initiatives in the areas of Employee Performance Review and Leadership Development.
Existing Training and Development programs will continue to be reviewed and new opportunities sourced to ensure that TransGrid’s employees continue to be developed in areas important to both their own career development and for TransGrid.
Succession Planning
Strategic goals can only be achieved with an effective program for leadership succession. TransGrid’s succession planning program nurtures future leaders
and assists to facilitate a positive culture within the organisation. Planning ensures that the pool of leadership skills keeps pace with TransGrid’s business direction.
To achieve these aims, TransGrid has established a process that identifies positions critical to continued success and targets individuals with the potential to move into these positions. It has continued to be implemented at the General Manager, Group Manager and Regional Manager levels throughout 2006-2007 with possible successors being identified for these positions both within and outside of the incumbents own Business Units. In addition this process has been used to identify positions where internal resourcing is insufficient and possible external resourcing will be necessary.
Development plans are provided to these identified succession candidates to support their potential transition to a senior position. These development plans target both technical and management/leadership skill gaps and also take into account whether the candidate requires a longer or shorter time to gain the appropriate level of capability.
Staff Recognition
TransGrid recognised the service of 57 staff members through a series of Recognition Dinners attended by the Managing Director and members of the Executive, which were held across New South Wales.
TransGrid’s Managing Director, Kevin Murray, attended all dinners and commented that these special nights were TransGrid’s way of saying thanks to its employees for the years of dedicated service and commitment to the electricity industry.
35
Workforce Diversity
TransGrid recognises the diversity of its workforce through the creation and maintenance of an environment where employees can work to achieve their highest potential.
TransGrid has in place a Workforce Diversity Strategy which promotes the development of a diverse and skilled workforce to meet the needs of our business, customers and stakeholders.
The Strategy is reviewed annually to ensure relevance to and compliance with legislation. Workforce Diversity Data Collection forms are forwarded to all new employees in order to facilitate collation of important workforce diversity data.
TransGrid also encourages and supports a Referral Officer Network, which provides information to staff in relation to any issues of harassment, discrimination and workplace bullying.
Referral Officers are readily available to 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.
Apprenticeships
TransGrid currently employs 54 Electrical, Communications and Transmission Line apprentices. The 2007 intake of 14 apprentices was in keeping with TransGrid’s commitment to both organisational resource planning and social responsibility. TransGrid’s nine inaugural Transmission Line apprentices are now in their second year, with five more in first year. An additional six are to be employed in 2008, as part of a total apprentice intake of 15. These apprentices are part of a ground breaking program to address skills shortages across the transmission industry.
Apprenticeships are aligned with National Training Packages involving both on the job and off the job training. 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.
Managing Director’s Apprentice Scholarship Program
The Managing Director’s Apprenticeship Scholarship program was established by TransGrid’s Managing Director, Kevin Murray, to support selected 4th year apprentices in furthering their University studies.
The program is awarded on an annual basis to apprentices who have demonstrated high academic achievement, leadership qualities and an interest in furthering their studies in electrical engineering at a higher level.
Leadership Development Programs
TransGrid has continued to develop and deliver a customised program in Business Management (Frontline Management). The program offers formal qualifications at Certificate III, IV and Diploma level. Further programs are planned for 2007-2008.
To support the succession planning process and to complement the Frontline Management programs, an
extensive leadership program is being developed targeting potential future leaders within TransGrid. This program is due to commence during the later half of 2007. Through these two programs, TransGrid aims to ensure a core set of management and leadership skills for all key staff.
Graduates, Cadets and Scholarship Programs
During 2006 - 2007 TransGrid maintained its commitment to graduate, cadet and scholar development programs. These programs support TransGrid’s resource and succession planning through the provision of on the job learning & development in the disciplines of engineering, accountancy and the environment.
This is achieved by rotating graduates on an annual basis across various teams and Business Units within the organisation; each placement affords a unique opportunity for the development of diverse skills, knowledge and competencies.
TransGrid currently has 28 Electrical Engineering Graduates and Eight Accounting Graduates.
During 2006-2007, TransGrid continued its commitment to scholarship programs for undergraduates and cadets by offering scholarships in electrical engineering at the University of Newcastle and the University of Technology (Sydney). TransGrid also awarded a scholarship in Electrical Engineering to one of its high achieving electrical apprentices to be commenced at the conclusion of their apprenticeship.
TransGrid’s transmission line
apprentices
3�
