Transgrid has recently published a Project Assessment Conclusions Report (PACR) for managing risk on Line 8C/8J and 8C/8E. Publication of this PACR represents the final step in the Regulatory Test for Transmission (RIT-T) process.
Lines 8C/8J and 8C/8E were amongst the first constructed utilising Non-Ceramic Insulators (NCI) within the Transgrid network, and these are now approaching the end of their service life.
If action is not taken, the condition of Line 8C/8J and 8C/8E is expected to expose us and our customers to increasing levels of risk going forward, as the likelihood of failure increases. There are safety and bushfire risks under the ‘do nothing’ base case, as well as higher expected costs associated with reactive maintenance that may be required under emergency conditions (‘financial risks’).
The proposed investment will enable us to manage safety, environmental, reliability and financial risks on Line 8C/8J and 8C/8E.
We manage and mitigate safety and bushfire risk to ensure they are below risk tolerance levels or ‘As Low As Reasonably Practicable’ (‘ALARP’), in accordance with our obligations under the New South Wales Electricity Supply (Safety and Network Management) Regulation 2014 and our Electricity Network Safety Management System (ENSMS). The proposed investment will enable us to continue to manage and operate this part of the network to a safety and risk mitigation level consistent with ALARP. Consequently, it is considered a reliability corrective action under the RIT-T.
In the PSCR Transgrid presented one credible network option that would meet the identified need from a technical, commercial, and project delivery perspective. The optimal commercially and technically feasible option presented in this PACR – Option 1 (replacing all identified condition issues for line components which have experienced deterioration and/or reached the end of their technical lives) – is the preferred option to meet the identified need at this stage of the RIT-T.
No submissions were received in response to the PSCR during the consultation period which closed in August 2024 and no additional credible options have been identified.
Option 2 remains the preferred option at this stage of the RIT-T process. The estimated capital expenditure associated with this option is $31.41 million +/- 25 per cent.
In accordance with the requirements of the Rules, a summary of the Project Assessment Conclusions Report is made available on the AEMO website. A copy of the PACR can be obtained from Transgrid’s website or by emailing regulatory.consultation@transgrid.com.au.