JD R4 guidelines presentation Sept05

Underground Power ProgramRound Four Major Residential Projects: 

Underground Power Program Round Four Major Residential Projects

Slide2: 

Management Structure

Program Goals: 

Program Goals To improve the standard of electricity supply to consumers by addressing reliability issues in areas with existing overhead power lines. To significantly contribute to the State Government’s objective of ensuring underground power services are provided to 50 per cent of residential properties in Perth by 2010, with a corresponding improvement in regional towns.

Program Objectives (Management):: 

Program Objectives (Management): Efficient retrospective installation of underground power, contributing to improved system reliability, cost savings in terms of maintenance and reduced distribution losses. Significant contributions to local communities, including enhanced streetscapes and visual amenity of public places, improved property values and improved safety.

Program Objectives (Implementation):: 

Program Objectives (Implementation): Maximum effectiveness of the Program by working in partnership with local governments, contractors and relevant areas of government. Equitable, transparent and efficient selection processes. Best practice project management, providing shared benefits to all project partners, such as risk-sharing, cost savings and efficiencies. Continuous improvement of the Underground Power Program process, including all aspects of the application, selection and implementation phases.

Major Residential Projects:: 

Major Residential Projects: Ideally comprise between 800 – 1300 residential lots, but will also include some commercial and non-rateable (government) properties. On average, cost about $6-7 million each and take about 9-12 months to implement. Local governments usually pass on their 50% share of the project costs directly to ratepayers in the project areas.

Overview of the Program:: 

Overview of the Program:

Key changes to the Round Four Guidelines:: 

Key changes to the Round Four Guidelines: Power System Reliability Criteria optimised and established as the primary means for the evaluation and selection of proposals. Increasing the level of up-front information available to local governments – all selection criteria and sub-criteria provided as well as a template for proposals. Program goals and objectives in the Guidelines – improves the corporate governance and transparency of the Steering Committee.

Key changes to the Round Four process:: 

Key changes to the Round Four process: Modelling of cost escalators (identified in proposals by local government) to better estimate total project costs. Timing of the evaluation and selection process to facilitate the rolling start of the implementation of Round Four in early 2007. Greater level of support provided to local governments during the development of their proposals. – templates and checklists provided, Western Power to indicate areas of poor reliability on request and more briefings for local governments.

Round Four selection process:: 

Round Four selection process: Local governments submit proposals for evaluation (10 weeks). Round Four to use a two-stage approach to evaluate proposals from local governments (10 week process): 1) Prioritise submissions according to power system reliability criteria. Only projects that demonstrate that they will achieve significant reliability benefits by replacing the existing overhead infrastructure will be considered further. 2) From the list of ‘high priority’ projects, use project feasibility criteria (characteristics of nominated area, estimated project cost, local government funding strategy and community support) to drive selection of the projects to be progressed.

Schedule for Round Four process:: 

Schedule for Round Four process: Round Four Guidelines released – 31 August 2005. Deadline for submissions from local governments – 11 November 2005. Evaluation of proposals completed – January 2006. Announcement of short-listed projects – February 2006. Detailed Proposal Phase for first shortlisted project commences – March 2006. Implementation of first approved project commences – Feb/March 2007. Expected completion of all Round Four projects – mid/late 2010.

Power System Reliability Criteria:: 

Power System Reliability Criteria: System Reliability based on annual customer interruption minutes due to: pole top fires; pole-related traffic accidents; equipment failures; overloaded equipment; conductor clashing; extreme weather and storm-related damage; and pollution, wildlife and vegetation related faults.

Power System Reliability Criteria:: 

Power System Reliability Criteria: Power Quality, including: Number of power quality complaints; System reinforcement priority for project area; and Number of power system TV interference complaints. Network Growth Requirements, including: Available capacity in the network; Voltage drop in the network; and Fault rating of conductors.

Power System Reliability Criteria:: 

Power System Reliability Criteria: Network Characteristics, including: Voltage conversion requirements; Age of existing network infrastructure; Proximity to zone substation; Proximity to the coast; and Zoning changes that may lead to system overloading.

Project Feasibility Criteria:: 

Project Feasibility Criteria: Nominated Area issues, including: Number and size of residential lots; Actual residential density and approved plans to amend density in the near future; Proportion of commercial properties; Suitability of ground conditions; Amenity improvements (reducing tree lopping, adjacent to areas with underground power, extent of transmission line clusters); and Extent of vacant land owned by State/Local Governments.

Project Feasibility Criteria:: 

Project Feasibility Criteria: Project Budget – preliminary estimates to be modelled by Western Power using technical and non-technical variables. Local Government and Community Commitment and Support – demonstrated ability of local government to fund its share of the likely costs (i.e. about $6-7m) of a project; and the indicative level of community support for the proposed project.