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Appendix B: Valuing Assets and Maximum Asset Costs and Lives


This Document is Archived


Handbook for Optimised Deprival Valuation of System Fixed Assets of Electricity Line Businesses [1999]

Energy Markets Regulation Unit
[ Last Updated 12 January 2006 ]


Optimisation of the System Configuration

(a)Connection/Supply Points
  Issue:Location with respect to load.
  Approach:Treat as fixed unless there are gross or obvious anomalies, then relocate or delete as practical taking into account the effect on the transmission/subtransmission network.
(b)Transmission/Subtransmission Lines
  Issue:Number of transmission/subtransmission feeders e.g. duplicate circuits.
  Approach:Assess in relation to system reliability standards.
    Relocate, delete or modify as practical.
(c)Substations/Zone Substations
  Issue:Location with respect of load.
  Approach:Identify key users or users with special requirements.
    Identify gross or obvious anomalies.
    Relocate, delete or modify as practical, taking into account the effect on the transmission/subtransmission and distribution (11kV) networks.
(d)Distribution Lines
  Issue:Number of inter feeder ties.
  Approach:Assess in relation to system reliability standards.
    Relocate, delete or modify as practical.
(e)Low Voltage Lines
  Issue:Choice of configuration for low density areas (e.g. 2ha blocks).
  Approach:Identify areas and replace low voltage with high voltage lines and substations.
(f)System Loading/Configuration
  With the proviso that the optimised system should not be designed to provide better service than the system in place, the system design should take into account the following general guidelines:
 
  1. In urban areas distribution should normally be by open ring circuits with substations in the rings, with feeders connected to spurs from the rings. Low voltage distribution should normally be by simple radial mains.
  2. The normal loading of primary distribution feeders in urban areas should be limited to below maximum feeder capacity. (This is to ensure that in the event of a feeder outage sufficient capacity exists on adjacent feeders for most load to be transferred.)
  3. Normally open tie circuits should be provided between adjacent circuits around the periphery of the supply area of a zone substation.
  4. Normally open switches should be provided between feeders from adjacent supply areas.
  5. To reduce the amount of load transferred to adjacent feeders in the event of a fault occurring at the zone substation end of a feeder, additional transfer facilities should be provided.

Transpower

Security Guidelines for Transmission Equipment Planning

Load (MW)

Basic
Security

Transmission Circuits

Busbars

Transformers

Less than 10

n

One circuitOne bus or bus section1 x 3-phase units
(10 to 40, if more than 40km remote and local generation can limit load shed to 25%)

n

One circuitOne bus or bus section4 x 1-phase or 1 x 3-phase unit, if backed up from alternative supply point
From 10 to 300

n-1

Two circuitsTwo busbars or bus sections7 x 1-phase units or 2 x 3-phase units.
Firms supply of peak demand using any short term overload capability.
More than 300

n-2

Three circuits on at least two routesOne redundant bus or bus section, such that supply is not lost after a single contingency while one bus is out of service for maintenance7 x 1-phase units or 2 x 3-phase units
Firms supply of peak demand using any short term overload capability
More than 600

Loss of station

Supply into region should be diversified across more than one major terminal substation

Optimisation of Elements in the System

(a)Transmission/Subtransmission Lines and Cables
  Issue:Conductor and cable size.
  Approach:Determine maximum demand and load cycle.
    Ratings should normally be based on the (n-1) criterion taking into account any cyclic or limited cyclic ratings and fault level ratings. Resize the conductor to the appropriate standard size if necessary, based on meeting reasonably predictable "system normal" maximum demand with the "economic current rating" for the conductor and "first order contingency" loads with the thermal rating of the conductor. Economic current ratings are usually in the range of 25-50% of the thermal rating.
(b)Substations/Zone Substations
  Issue:Transmission/subtransmission voltage bus configuration.
  Approach:Dependent on transmission/subtransmission configuration, should only be necessary to optimise if transmission/subtransmission system is changed.
  Issue:Distribution voltage bus configuration.
  Approach:Standard switch bays to be defined in asset types, optimise to nearest standard rating to match load.
  Issue:Buildings.
  Approach:Optimise if overdesigned for application and/or location.
  Issue:Ancillary equipment.
  Approach:Delete if not required.
  Issue:Fire protection and oil retention facilities.
  Approach:Include unless not required for application and/or location.
(c)Substation/Zone Substation Transformers
  Issue:Transformer rating.
  Approach:Ratings should normally be based on the (n-1) criterion taking into account any cyclic or limited cyclic ratings and fault level ratings. Determine nominal, forced cooled, cyclic and limited cyclic ratings. Check basis of rating. Optimise if ratings excessive for loads e.g. force cooled transformers may be used to achieve emergency ratings rather than having naturally cooled transformers in parallel. Reasonable utilisation factors are of the order of 80%, depending on the nature of the load and its projected growth.
  Issue:Cable or circuit breaker constraints.
  Approach:Derate transformers to cable or circuit breaker ratings if they are a limited on transformer rating.
(d)Medium Voltage Distribution
  Issue:Conductor and cable size.
  Approach:Examine planning and rating rules taking into account "economic ratings", thermal ratings, security requirements, faults and current levels to determine minimum conductor size for each area.
(e)Medium Voltage Switchgear
  Issue:Number of size and type.
  Approach:Determine need for switch in relation to system reliability and system rating standards. Where excessive reduce, delete or modify.
(f)Voltage Control Devices
  Issue:Degree of control.
    Manual and on load tap changes.
    Line regulators, line drop compensation.
    Reactive compensation.
  Approach:Check requirements and optimise as necessary.
(g)Distribution Transformers (pole, kiosk, ground types)
  Issue:Transformer rating.
  Approach:Determine average or typical power utilisation factors based on annual statistics. Nature of load and projected growth should be taken into account. Optimise if ratings excessive for loads.
(h)Low Voltage Reticulation Lines and Cables
  Issue:Where there is undergrounding, whether this is appropriate.
  Approach:Underground reticulation should be taken as appropriate if it is required for commercial, technical, safety or legal reasons and if a prudent commercial operator were to replicate the system, they would use undergrounding. Commercial reasons may include situations where customers are prepared to accept higher tariffs as a consequence of underground reticulation. If underground portions of the system cannot be justified on any of these grounds then the optimisation process should lead to them being replaced by equivalent overhead reticulation.
  Issue:Conductor and cable size.
  Approach:Determine minimum conductor and cable size using standardised approach.
  Issue:Services, meters and load control equipment.
  Approach:Standardise to minimum requirements by part of the system and customer load.
(i)System Control
  Issue:Degree of sophistication of SCADA equipment.
  Approach:Determine whether equipment is appropriate for size and complexity of distribution network.
  Issue:Need for load control system and degree of sophistication.
  Approach:Determine whether equipment is appropriate for size and complexity of distribution network.

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