Western Power has established a network management framework that ensures it achieves the objectives set for the network and its responsibilities as an asset owner to achieve a return on capital invested and to manage its assets in a safe manner. The framework also incorporates elements that ensure that assets are managed in a sustainable manner, in accordance with applicable law, and to meet the current and changing needs of customers.
The network management framework has been developed to be consistent with current standards for asset management systems.
This chapter sets out the standards for the network management framework that have been adopted, the legislative requirements that apply, the overall approach to asset management, and the supporting corporate elements, policy, methodology, tools, and information systems that have been established.
4.1 Asset management Standard
There are a number of nationally and internationally recognised asset management standards such as the International Infrastructure Management Manual (IIMM) from the Institute of Public Works Engineering Australia (IPWEA), and the Publicly Available Specification 55 (PAS 55) from the Institute of Asset Management (IAM).
Figure 4.1 shows the IIMM Asset Management Process Overview.
Source: International Infrastructure Management Manual, p. 1.6 Figure 4.1: IIMM Asset Management Process Overview
Since the revision of PAS 55 in 2008, the IAM has been promoting the development of a formal International Standard. Following a preliminary meeting in June 2010, a new International Standards Organisation (ISO)
Project Committee (ISO/PC 251) has been established to develop an international standard on asset management. While Western Power has not formally adopted a specific asset management standard it participates in committee MB-019 with a view to aligning its asset management practices with the developing international standard.
Figure 4.2 shows that there is a close alignment between the PAS 55 Asset Management Framework and the corresponding Western Power documentation and systems.
PAS 55 Asset Management Framework {adapted}
Corresponding Western Power Documentation & systems
NIS - Network Investment Strategy, DM 7314528 NMP - Network Management Plan, DM 8007313 DM 8534227
Organisational Strategic Plan
Vision, mission and value Policies
Asset Management Plan Establish and maintain asset management
plans to achieve the asset management strategy and deliver the asset management objectives throughout the life
cycle of assets
Asset Management Enablers and Controls
Implementation of Asset Management Plans Life cycle activities – Construct / acquire, utilise, maintain, renew / disposal
Tools, facilities and equipment
Performance Assessment &
Improvement Performance & condition monitoring Failure investigation
Evaluation of compliance Audit, Improvement ect.
Management Review
New asset management related methods and
technologies
Organisational Strategic Plan
Vision, mission and value Goals
Asset Management Plan (NMP) Asset overview
Performance issues & strategies Life-cycle management Risk management Maintenance Finance
Asset Management Controls / Performance (Asset Missions)
Condition Based Risk management (CBRM)
Reliability Centred Maintenance (RCM) & Policies
Condition Assessment Methods Technical Standards / Specifications Regulatory Compliance
Asset Management Information Systems (Ellipse,
DFMS, DFIS, TCS)
Performance Assessment &
Improvement
New asset management related methods and
technologies
Figure 4.2: Alignment with PAS 55
4.2 Overall Approach to Network Management
Western Power aims to operate the network so it can continually provide the required function and meet its specified performance requirements in a sustainable manner. To achieve that outcome, assets must be carefully managed throughout their lives, by applying targeted strategies, from procurement, operation and maintenance through to decommissioning and disposal.
The premise underlying the NMP is that the network primary assets (lines, cables, stations etc.) are required forever so as to continue to deliver energy from generators to customers. This premise is being reviewed as the instance of distributed/local generation increases and as smart grid technology offers the potential to operate the network differently. For this plan, however, decisions are made to invest in new assets, or to maintain, replace and refurbish assets in accordance with the network investment drivers. This means that the characteristics such as cost versus asset life and the management practices such as inspection/ maintenance routines of an individual asset or group of assets should be optimised to reduce the life cycle cost.
A key to lifecycle management is to identify the triggers that lead to the adoption of a particular asset strategy. Triggers such as poor asset condition lead to a process where options are evaluated and a strategy is adopted to manage the assets over the remainder of their life.
Western Power has adopted a whole of life cycle approach to asset management. The key elements of the approach are shown in Figure 4.3 below. These are described below together with examples of supporting documents:
• Plan, Acquire - Standards & policy documents, Technical / equipment specifications (e.g. poles, crossarms, insulators etc);
• Create, Design, Construct - Distribution Design manual, Distribution Construction standards (e.g. long bay solutions document), Work practices manual;
• Operate, maintain - Inspection procedures, Condition assessment / management procedures (e.g. identify defects / issues, prioritise and manage), Work practices manual, Specific asset / key issues operational documents (e.g. long bay solutions document), Network Operations Centre procedures/plans (e.g. identifying, recording defects, contingency plans);
• Monitor, review, feedback, incidents - Defects register / recording systems, Incident recording / management procedure, Incident investigation procedure, Specific asset assessment / investigations / studies, Periodic reporting / assessment, Auditing / reviewing; and
• Act, augment, replace, dispose - Programs of work, Specific projects, Management of defects process, Works scheduling procedures, Close out / completion process
Figure 4.3: Asset life cycle
The Network Management Framework and plan is subject to periodic review at intervals not exceeding 24 months by the Economic Regulation Authority (ERA), who has issued a guideline for such reviews. The review is conducted by an independent third party. This NMP has been structured to be consistent with the ERA guideline, and the improving outcomes of the review process demonstrate Western Power’s commitment to continuous improvement of its asset management system.
Western Power also manages its network assets in accordance with “Good Electricity Industry Practice” as defined in the Access Code. That is “The exercise of that degree of skill, diligence, prudence and foresight that reasonably would be expected from a significant proportion of operators of facilities forming part of the power system for the generation, transmission or supply of electricity under conditions comparable to those applicable to the relevant facility consistent with applicable regulatory instruments, reliability, safety and environmental protection. The determination of comparable conditions is to take into account factors such as the relative size, duty, age and technological status of the relevant facility and the applicable regulatory instruments.”
Consistent with the above whole of life cycle approach, the transmission and distribution networks are managed within a broad external framework of legislation, codes and standards, and within an internal framework of policy,