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HIGH VOLTAGE NETWORK

500kV > 330kV

330kV > 220kV

220kV > 132kV

132kV> 66kV

MovingEnErgyMovingEnErgy

MOVINGENERGy

TransGrid annual reporT 2008

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TransGrid annual reporT 2008

TRANsGRId CONTACT dETAILsSydney201 elizabeth street po Box a1000 sydney south nsW 1235

Telephone 02 9284 3000 Telephone 61 2 9284 3000 Facsimile 02 9248 3456 Facsimile 61 2 9284 3456

Business Hours 8:00am – 6:00pm

Metropolitan Telephone 02 9620 0777

OrangeTelephone 02 6360 8711

NewcastleTelephone 02 4967 8678

TamworthTelephone 02 6765 1666

WaggaTelephone 02 6922 0222

YassTelephone 02 6226 9666

TransGrid aBn: 19 622 755 774

This report is available on TransGrid’s website.

www.transgrid.com.au

ACKNOWLEdGEMENTs Published by TransGrid Corporate Business unit

Designed and produced by equation Corporate design pty ltd

Photographs by:John MarmarasKarl Hofmanneil BillingtonJon novakovic

CONTENTs > TransGrid annual reporT 2008

contentscontentsCONTENTs2 CHAIRMAN + MANAGING dIRECTOR’s REVIEW

4 OuR BOARd Of dIRECTORs

6 ABOuT TRANsGRId

14 ACHIEVEMENTs

18 TRANsGRId ANd THE ExTERNAL OpERATING ENVIRONMENT

Facing new Challenges

24 CusTOMERs, sTAKEHOLdERs, COMMuNITy striving for excellence

28 INNOVATION new Ways of doing Business

32 pEOpLE The Key to our success

38 NETWORK sTRATEGy invest and Build for the Future

44 fINANCE ANd dIRECTORs’ REpORT

83 AppENdIx

87 GLOssARy

The Hon. Eric Roozendaal MLC The Hon. Joe Tripodi Mp Treasurer Minister for Finance Parliament House Minister for Infrastructure Macquarie Street Minister for Regulatory Reform SYDNEY NSW 2000 Minister for Ports and Waterways Parliament House Macquarie Street SYDNEY NSW 2000

31 October 2008

Dear Shareholders,

We have pleasure in submitting to you the TransGrid Annual Report 2008 for presentation to Parliament. The Annual Report includes the Income Statement for the year ended 30 June 2008 and the Balance Sheet as at that date certified by the Auditor-General of New South Wales.

The Annual Report was prepared in accordance with the requirements of Section 24A of the State Owned Corporations Act 1989 and the Annual Reports (Statutory Bodies) Act 1984 and reporting regulations issued by the New South Wales Treasury.

Yours sincerely

Mr Bruce foy Kevin Murray Acting Chairman Managing Director

TransGrid annual reporT 2008 > introduction 1

HiGH VoLtAGE nEtWorK

500kV > 330kV

330kV > 220kV

220kV > 132kV

132kV> 66kV

Generation >

transmission >

Distribution >

major enD users >

MoVinG EnErGy >

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.

AboVE riGHtsean nicolas from transGrid’s metropolitan region

2 cHAirMAn + MAnAGinG dirEctor’s rEViEW > TransGrid annual reporT 2008

successsuccesssuccEss

We have again achieved in excess of 99.999 percent reliability which is consistent with our high level strategies and comparable to world’s best practice. The availability of our network stands at 98.54 percent which is below our target figures, primarily due to the need to take outages for our multi-billion dollar capital program.

efficiency improvements have continued to be a strong focus within TransGrid, which has resulted in TransGrid bettering the targets set by the regulator and contributing towards a record operating profit before tax of $199.7 million. TransGrid retains its position as the least costly transmission carrier in australia and as a world leader in terms of cost and service levels.

safety is our first priority and our target is zero lost time injuries. Whilst it is disappointing to report that we had six lost time injuries during the reporting period, it is pleasing to note that there were no serious injuries. our lost Time injury rate of 3.1 is consistent with the low rate of previous years and benchmarks well with other network businesses.

To ensure public safety we manage, operate and maintain our network in accordance with our network Management plan, Bushfire risk Management plan and public electrical safety awareness plan. as a result, members of the public have not been injured or placed at risk of injury due to our operations.

TransGrid has placed a high level of focus on improving our relationships and interactions with our customers, working with them to provide a reliable supply to end use customers and to facilitate the effective operation of national electricity Market. This has included joint planning with distributors, compliance testing with existing generators and assistance to a significant number of new generator proponents, who are considering their options in connecting to the TransGrid transmission network.

a key challenge has been the submission of TransGrid’s revenue proposal to the australian energy regulator (aer) in June 2008. The proposal shows that TransGrid is a leading international performer in terms of efficiency and service level. The proposal will ensure that consumers in new south Wales will continue to receive an ongoing reliable supply and the lowest cost transmission services in the national electricity Market.

The nsW economy is forecast to continue to expand and with that growth comes a parallel expansion in the demand for power. Whilst nsW has seen winter peaks for the last two years, forecasts are still predicting summer peaks which place greater demands on the network. To meet this challenge, TransGrid is towards the end of a substantial capital works program, valued at $1.3 billion during the 2004-2009 regulatory period.

AboVE LEfttransGrid’s high voltage infrastructure

AboVE riGHtmanaging Director, mr Kevin murray, and acting Chairman, mr bruce Foy

cHAirMAn + MAnAGinG dirEctor’s rEViEW

We are pleased to report than in 2007/08 TransGrid has continued to deliver on its obligations of providing a safe, reliable and efficient transmission service with continued commercial success.

TransGrid annual reporT 2008 > cHAirMAn + MAnAGinG dirEctor’s rEViEW 3

successsuccesssuccEssTransGrid’s capital works program is the result of extensive planning and analysis to ensure the best outcome for the state. TransGrid has been vigilant in the application of strict environmental processes, extensive stakeholder consultation and efficient project management techniques in the execution of its capital works program.

TransGrid has worked diligently with its various stakeholders to ensure their expectations are met. in particular, community consultation has been an integral element in the execution of every TransGrid project and we will continue to keep raising the bar in meeting our community obligations.

This reporting period saw the completion of a number of projects, including the installation of new transformers at port Macquarie, armidale, Vales point and sydney south substations.

TransGrid has nine major substation projects underway, with construction having commenced on the Macarthur 330kV substation and the Wagga north 132kV substation. There is also a range of substation upgrades at various stages of development.

over the last year, construction commenced on the Wollar to Wellington 330kV line and on the Yass to Wagga 132kV transmission line.

in May, TransGrid officially opened a new regional centre at orange. The new facility commits TransGrid to an ongoing presence in western nsW.

TransGrid has commenced the second of four stages of the 500kV ring which will eventually link the sydney, newcastle and Wollongong load centres. This second (Western 500kV) stage is well advanced with construction of 500kV substations at Bannaby, Mt piper and Bayswater proceeding to program. each of the four stages not only enhances the capacity of the grid in nsW but also the backbone of the national grid from a market perspective.

TransGrid’s success has been achieved largely through its people who have initiated and adapted to technological, structural and process changes since its formation. Many of our employees have lengthy service with TransGrid. The current turnover rate of 5.9 percent enables the organisation to retain a great depth of knowledge and experience. These attributes also assist greatly in the training and mentoring of new and younger staff.

employees contribution is recognised in many and varied ways, with the most prominent being recognition functions for employees with 40 years and 25 years of service.

TransGrid specifically recognises contributions made to safety and the environment. The annual safety award was awarded to the Metropolitan substations Team for their innovative safety solutions in reducing safety risks associated with working in a confined space. Geoffrey Gumbleton, from northern region, received the environmental award for his outstanding commitment to the environment in sourcing technology to remove captured oils contained in substation spill oil tanks.

TransGrid has continued with its succession planning program to ensure that the future resource needs of the business will be met by a pool of people having appropriate management skills. a key component of our succession planning is the Future leaders program which focuses on building leadership capability from within the organisation.

There has been a significant increase in the number of apprentices and graduates employed over recent years, which reflects our commitment to both organisational resource planning and our social responsibilities.

The challenge for TransGrid in the next few years will be to deliver on a significantly increased capital program and continue our efficiency improvements whilst at the same time maintaining a high level of reliability of supply.

Mr Bruce Foy acting Chairman

Mr Kevin Murray Managing director

4 our boArd of dirEctors > TransGrid annual reporT 2008

Mr brucE foy Director and Acting Chairman Mr Bruce Foy was appointed to the TransGrid Board on 15th december 2005 and has been TransGrid’s acting Chairman since 1st February 2008.

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, southern uranium ltd, Biosignal 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.

Bruce brings to the TransGrid Board extensive experience in corporate and financial management.

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 and 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.

neville’s in-depth understanding of the electricity industry, and its associated industrial relations, training and union activities, is an invaluable resource of the Board.

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 $2.5 billion 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.

our boArd of dirEctors

TransGrid annual reporT 2008 > our boArd of dirEctors 5

tHE Hon. JoHn PricE Director The Hon. John price was appointed to the TransGrid Board on 5th February 2008.

prior to his appointment, John began his career at the state dockyard leaving in 1982 as assistant General Manager and engineering Manager to take up a consulting role.

in 1984, he was elected to the nsW legislative assembly, firstly as the Member for Waratah, and in 1999, as the Member for Maitland, retiring in 2007. John’s previous directorships include newcastle FM pty ltd and 2Hd Broadcasters pty ltd. He served as Chairman of both companies from 1997 to 1999. John is also a member of the Council of the university of newcastle and a director of the Hunter uni-Clinic.

John brings to the Board a wealth of knowledge from his lengthy career in politics, along with a strong background in engineering.

Mr KEVin MurrAy Executive Director and Managing Director Mr Kevin Murray was appointed as an executive director on the TransGrid Board on 10th June 2005.

as Managing director of TransGrid, Kevin is responsible for the management, 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 safe, reliable and efficient outcome. as General Manager/network, he was responsible for just over two-thirds of TransGrid’s workforce.

Kevin is Chairman of TransGrid’s executive occupational Health and safety Committee and executive environment Committee. Kevin also represents TransGrid on a number of external industry related committees, including Chairman of neMMCo’s participant advisory Committee and Grid australia. He is a current director of the new south Wales energy and Water ombudsman Board, the energy industries superannuation scheme Board and is a past director of the national safety Council of australia.

Kevin brings to the TransGrid Board 40 years experience in the electricity 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 extensive 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 and a Fellow of the australian society of Certified practising accountants.

John brings to the TransGrid Board an in-depth understanding of the electricity industry and extensive experience in the management of TransGrid’s commercial and corporate financial interests.

6 About trAnsGrid > TransGrid annual reporT 2008

ReliabilityreliabilityrELiAbiLityAbout trAnsGrid >

TransGrid owns and operates the new south Wales high voltage electricity transmission network, connecting generators, distributors and major end users across the state. as a state owned Corporation, TransGrid’s sole shareholder is the new south Wales Government.

TransGrid annual reporT 2008 > About trAnsGrid 7

nsW EnErGy futurE >

inFrastruCture upGraDes

networK planninG

maintaininG inFrastruCture

ReliabilityreliabilityrELiAbiLityour businEssaustralia’s largest electricity transmission company, TransGrid, has a network comprising almost 12,500 kilometres of high voltage transmission line and underground cables, as well as 83 substations and switching stations, worth over $4.2 billion.

The company is responsible for planning, developing and maintaining the new south Wales transmission system to meet customers’ reliability needs and to facilitate operation of the national electricity Market.

The commitment of our people is the key to TransGrid’s success, and allows TransGrid to continue to operate at world’s best practice standards. it is this dedication that will promote improved efficiencies and drive TransGrid’s capital infrastructure program into fruition over the next few years.

The expertise and skills within the organisation are highly regarded. TransGrid’s commitment to safety, life-long learning and the pursuit of quality development opportunities will ensure that the company’s future prospects are bright. We are committed to ensuring that the people of nsW continue to reap the benefits of a modern and reliable transmission system that they have come to expect.

AboVE LEftGemma Holdsworth and andrew Kingsmill working on 500kV plans

AboVE riGHtinstallation of new 132/33kV 60mVa transformer at port macquarie substation


NetworkNetworknEtWorK

YassMarulan

Yanco

Griffith

Buronga

Broken Hill

FinleyDeniliquin

Darlington Point

AlburyHume

Cooma

Munyang

Snowy Adit

Queanbeyan

TumutCanberra

Murrumburrah

Cowra

Kangaroo Valley

Panorama

Molong

Orange

Beryl

Parkes

Forbes

Wellington Bayswater Liddell

Dapto

Muswellbrook

Tamworth 330

Armidale

DumaresqLismore

Tamworth 132

Gunnedah

Narrabri

Moree

Inverell Glen Innes

Tenterfield

Koolkhan

Coffs Harbour

Nambucca

Kempsey

Port Macquarie

Taree

Balranald

Coleambally

Murray

Upper Tumut

Lower Tumut

ANMJindera

Guthega

Mt Piper 132

Wallerawang

Mt Piper 330

Avon

Wagga132 Burrinjuck

Wagga330

Redcliffs

Dederang

Wodonga

Bulli CreekMudgeeraba

Uranquinty

Gadara

OPERATING SYSTEM VOLTAGES 500kV Transmission Lines

330kV Transmission Lines




330kV Underground Cable

Customer Exchange Point

Interstate Exchange Point

500kV Substations

330kV Substations

220kV Substations

132kV Substations

INSET

Tomago

Eraring

Vales Point

Munmorah

Tuggerah

Sydney East

RegentvilleSydney West

Sydney South

NewcastleWaratah

West

Liverpool

Kemps Creek

Vineyard

Sydney North

Dapto

Ingleburn

Wallerawang

Yass Avon

Bayswater

Liddell

Beaconsfield West

Haymarket

INSET









500kV Substations

330kV Substations

220kV Substations

132kV Substations


HiGH VoLtAGE nEtWorK

500kV > 330kV

330kV > 220kV

220kV > 132kV

132kV> 66kV

12,442KMHiGH VolTaGe oVerHead TransMission lines + underGround CaBlinG

83suBsTaTions + sWiTCHinG sTaTions

48 ConneCTion poinTs To GeneraTors THrouGHouT nsW

325disTriBuTor and direCT CusToMer ConneCTion poinTs

5inTerConneCTors To ViCToria + Queensland’s TransMission neTWorKs

our nEtWorKTransGrid’s high voltage network is made up of:

> 12,442 kilometres of high-voltage overhead transmission line and underground cable operating at voltages of up to 500kV;

> 83 substations and switching stations; > 48 connection points to generators,

located in western nsW, the Central Coast, Hunter Valley and the snowy Mountains;

> 325 distributor and direct-customer connection points; and

> 5 interconnectors to Victoria and Queensland’s transmission networks.

The energy delivered via TransGrid’s network goes to more than three million households and businesses in nsW and the aCT, as well as to users in other states.

While 60 percent of nsW energy is generated west of the Great dividing range it must be delivered to the east coast, where most of the state’s load is located. The sydney, Wollongong and newcastle areas consume 75 percent of the energy.

energy delivery capability and flexibility has increased through interconnections with other states. These interconnections give customers access to imported power during periods of high demand and helps to promote market benefits through competitive pricing.









500kV Substations

330kV Substations

220kV Substations

132kV Substations

Tomago

Eraring

Vales Point

Munmorah

Tuggerah

Sydney East

RegentvilleSydney West

Sydney South

WaratahWest

Liverpool

Kemps Creek

Vineyard

Sydney North

Dapto

Ingleburn

Wallerawang

Yass Avon

Bayswater

Liddell

Beaconsfield West

Haymarket

INSETNewcastle


directiondirectiondirEction

our Mission

To provide safe, reliable and efficient transmission services and to be commercially successful.

our VALuEs

>Honesty and integrity> Trust and respect>open Communication

>professionalism > Fairness and equity >Consideration

our Vision

To be recognised as a world-class electricity transmission company.

our dirEction


dirEction >

worlD-Class

saFe, reliable, eFFiCient

suCCessFul

soCially responsible

directiondirectiondirEctionPrinciPAL obJEctiVEs

To be a successful business and to operate at least as efficiently as any comparable businesses.

To exhibit a sense of social responsibility by having regard for the interests of the community.

To protect the environment.

To exhibit a sense of responsibility towards regional development.

To operate efficient, safe and reliable facilities for the transmission of electricity and other forms of energy.

To promote effective access to transmission facilities.

achievement of our objectives is facilitated through strategies outlined in our organisation’s Corporate plan and Business unit plans as well as through policies and procedures.

our objectives reflect our commitment to ensuring a safe, reliable and efficient electricity transmission network. They are linked to Business unit and Group objectives as well as individual performance plans so that all employees are able to assess their contribution to achieving TransGrid’s strategic objectives.

AboVEsteven mcleod, Kevin murray and sean nicolas at transGrid’s sydney west substation


Mr JoHn byrnE General Manager/Commercial responsible for managing TransGrid’s commercial and corporate financial interests. This includes implementing and managing TransGrid’s investment, banking, debt portfolio and insurance arrangements. it also includes responsibility for corporate accounting, taxation, accounting systems and the development of financial strategies, policies and systems. The Commercial Business unit also incorporates a range of whole-of-business services including legal advice, audit and strategic risk management, procurement and the management of the non-regulated use of TransGrid’s state-wide telecommunications infrastructure, TeleGrid.

Mr Vic GALEA General Manager/Network Servicesresponsible for managing and maintaining TransGrid’s high voltage transmission system assets and associated protection, metering, control and communication secondary systems in accordance with corporate policies and strategic directions. The Business unit is also responsible for the maintenance of property and easements associated with the network assets, the field management and commissioning of capital projects and undertaking external work that is consistent with its expertise. These objectives are achieved so as not to compromise safety, community and environmental commitments.

our ExEcutiVE LEAdErsHiP tEAM

Mr PEtEr McintyrE General Manager/Network Development and Regulatory Affairsresponsible for planning the development of the transmission network, including its telecommunications and supporting infrastructure and systems, and the associated regulatory processes. The Business unit also manages TransGrid’s regulatory strategy and relationships, national electricity Market (neM) compliance, transmission pricing and customer connection processes. a primary challenge for the Business unit has been the management of TransGrid’s 2009-2014 revenue application to the australian energy regulator (aer).

Mr cHris fitzGErALd General Manager/ Capital Program Delivery responsible for supporting the ongoing performance of TransGrid’s high voltage transmission assets and associated protection, metering and communication secondary systems, through the execution of TransGrid’s Major Capital Works program. Capital program delivery also provides technical support to other Business units through the delivery of designs and advice for minor projects, replacement projects and other asset management activities. The Business unit’s specialised expertise and capabilities are also applied to non-regulated projects associated with TransGrid’s assets.


Mr MicHAEL GAtt Executive Manager/Corporate responsible for representing TransGrid as a corporate entity, by taking an active role in how TransGrid interacts with our stakeholders, the community, shareholders, the regulator and the general public. Corporate is primarily responsible for Government relations, policy and programs, public affairs, Corporate Communication, strategic development, Corporate social responsibility, stakeholder Management, publications and Media Management.

Mr PAuL PHiLLiPs General Manager/Business Services responsible for a wide range of corporate and business support functions within TransGrid in the areas of environmental compliance and services, health and safety, human resources, information technology services, property management, regional procurement, fleet management, logistics and quality and executive services. The Business unit develops policies in a consultative manner through a number of executive Committees.

Mr LionEL sMytH General Manager/ Network Performance and Operations responsible for ensuring the security and reliability of the electricity transmission network throughout new south Wales in accordance with the national electricity rules. The Business unit determines operating policy, strategies and instructions for network operation; develops facilities for monitoring and control; operates the system from the control centres; liaises with neMMCo and distributors to ensure effective coordination of operating activities and develops appropriate maintenance and asset management standards.

Business servicesPaul Phillips

commercialJohn Byrne

corPoratemichael Gatt

caPital ProGram Delivery

chris FitzGerald

manaGinG DirectorKevin murray

networK servicesvic Galea

networK DeveloPment &

reGulatory aFFairsPeter mcintyre

networK PerFormance & oPerations

lionel smyth

14 AcHiEVEMEnts > TransGrid annual reporT 2008

AchievementsAchievementsAcHiEVEMEntsdeliVered THe

LoWEst cost eleCTriCiTY TransMission serViCe in ausTralia

GeneraTed

$573min reVenue

deliVered a reCord operaTinG proFiT oF

$199.7mBeFore Tax and superannuaTion adJusTMenTs

aCHieVed a TransMission neTWorK reliaBiliTY exCeedinG

99.999%

aCHieVed a

2%real reduCTion in reCurrinG operaTinG CosTs

HiGHLiGHts of 2007/2008

LEftline works at munmorah substation

riGHttransGrid’s 500kV infrastructure

TransGrid annual reporT 2008 > AcHiEVEMEnts 15

PErforMAncE >

return on inVestment

meetinG tarGets

ComplianCe

inVestinG in tHe Future

AchievementsAchievementsAcHiEVEMEntsMeT THe

incEntiVE tArGEts seT BY THe reGulaTor

CoMMenCed iMpleMenTaTion oF THe larGesT proJeCT eVer underTaKen BY TransGrid, THe WesTern 500KV, aT a Value oF

$337m*

assessed in THe

“bEst PErforMEr”QuarTile as parT oF THe inTernaTional TransMission operaTions and MainTenanCe (iToMs) 2007 sTudY proGraM.

launCHed THe

futurE LEAdErs and exeCuTiVe leaders suCCession planninG proGraMs

inCreased

GrAduAtE nuMbErs FroM 36 To 46 and apprenTiCe nuMBers FroM 54 To 57

suBMiTTed a

coMPLiAnt reVenue reseT proposal To THe ausTralian enerGY reGulaTor (aer).

* The value of $337m for the Western 500kV includes $17m of estimated capitalised interest during construction

16 AcHiEVEMEnts > TransGrid annual reporT 2008

ActuAL sci tArGEt

earnings Before interest and Tax ($ million) 299.7 253.7

operating profit Before Tax ($ million) 199.7 150.3

dividend ($ million) 105.9 83.8

return on assets 7.4% 6.2%

return on equity 8.0% 6.0%

* excluding superannuation Gains/losses

dELiVErinG rEsuLts >

return on inVestment

reliable operation

saFety + enVironment

ResultsResultsrEsuLts04

05

06

07

08

452.6

451.2

478.5

506.7

573.0

incoME ($million)

04

05

06

07

08

279.8

138.3

158.6

218.2

355.0

cAPitAL ExPEnditurE ($million)

04

05

06

07

08

2.22

0.15

0.68

1.19

0.37

nEtWorK rELiAbiLity (system minutes lost)

04

05

06

07

08

99.65

99.59

99.47

99.44

98.54

nEtWorK AVAiLAbiLity (%)

KEy coMMErciAL PErforMAncE indicAtors*

AboVE riGHtmunmorah substation

AboVE LEftjeffree Cairns alongside sydney west’s no. 2 transformer

TransGrid annual reporT 2008 > AcHiEVEMEnts 17

income ($ million) 573.0

asset Base ($ million) 4,220.6

interest Cover (times) 2.5

Gearing ratio (%) 46.7%

operating profit Before Tax ($ million) 151.1

earnings Before interest and Tax ($ million) 251.0

** including superannuation Gains/losses* 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.

KEy coMMErciAL PErforMAncE indicAtors**

ResultsResultsrEsuLts04

05

06

07

08

6.35

3.22

7.50

7.06

6.07

rEturn on Equity (%)*

04

05

06

07

08

6.55

5.11

7.34

7.05

6.16

rEturn on AssEts (%)#

04

05

06

07

08

3.6

2.1

3.7

1.6

3.1

sAfEty (Lost time injury frequency rate)

Low Medium High total reportable

10 4 0 14 0

in 2007/08 there were 14 environmental incidents reported. none of these incidents were of a significance level that required notification to a regulator. all were addressed promptly and resolved.

EnVironMEntAL incidEnt notificAtion

18 trAnsGrid And tHE ExtErnAL oPErAtinG EnVironMEnt > TransGrid annual reporT 2008

ChallengesChallengescHALLEnGEstrAnsGrid And tHE ExtErnAL oPErAtinG EnVironMEnt: fAcinG nEW cHALLEnGEs >

The challenge for TransGrid will be to continue to employ the most efficient solutions to ensure the safety, reliability and security of the electricity transmission system.

TransGrid annual reporT 2008 > trAnsGrid And tHE ExtErnAL oPErAtinG EnVironMEnt 19

MArKEt cHALLEnGEs >

meetinG DemanD

FinDinG tHe riGHt solutions

GrowinG assets

ChallengesChallengescHALLEnGEsrEViEWs of tHE nAtionAL ELEctricity MArKEtTransGrid has continued to work closely with other market participants in providing input to reviews of the national electricity Market. some of the key reviews which TransGrid has provided input to over the last year include the following:

> The review of proposed arrangements for a new national Transmission planner and national Transmission development plan by the australian energy Markets Commission (aeMC).

> The review of options to implement a national framework for transmission reliability standards by the reliability panel.

> Guidelines published by the aer related to the submission of revenue cap applications by Transmission network service providers (Tnsp’s).

MEEtinG dEMAndTransGrid’s electricity network services the highest demand in the neM. predictions suggest that sydney’s population alone will grow by 1.1 million people over the next few years. nsW’s business centres, located primarily in sydney, newcastle and Wollongong, are also growing rapidly, requiring increased transmission capability to support them.

nsW has the largest summer peak demand in the neM, with maximum summer demands forecast to increase by some 440MW a year. in January 2008, TransGrid recorded a peak summer demand of 12,954MW. in July 2008, this was followed by a peak winter demand of 14,274MW.

AboVE LEftsean nicolas working on relay equipment

AboVE riGHtlindsay Fulwood (Civil inspector) and shane portus (electrical inspector) at the bayswater 500kV Construction site


The figure below highlights that nsW has the largest projected growth in peak demand.

in addition to the challenge of increasing demand, TransGrid is expecting a 24 percent increase in the value of its assets over the next regulatory period. This is expected to include about 1000 kilometres of new high voltage transmission lines and 13 new substations. although TransGrid’s success in managing its assets is reflected in its reliability of over 99.999 per cent, it will be important for TransGrid to continue to improve its asset management and maintenance techniques in order to produce the best from its asset base.

TransGrid has also been faced with the challenge of increasing plant and equipment costs, due to the economic boom. Both transmission and distribution network companies in australia have reported rapidly increasing costs for individual projects.

findinG tHE riGHt soLutionsTransGrid employs a combination of solutions in meeting increasing demand. initially, TransGrid identifies any possible operational changes to maximise the efficiency of the existing network such as protection systems.

additionally, TransGrid identifies both non-network options and network solutions. For example, for the current 500kV Western Conversion project, demand side management is being implemented in 2008/09 to postpone the 500kV network augmentation in 2009/10. This represents the largest non-network initiative in australia.

in some cases, detailed investigations of non-network solutions confirm the need for network development. This was the case with the Wollar to Wellington project, where after extensive assessment, TransGrid found the best solution to be network augmentation.

The challenge for TransGrid will be to continue to employ the right network and non-network solutions to ensure the safety, security and reliability of the system.

TransGrid has continued to introduce innovative techniques and organisational efficiencies in a range of areas, such as asset management and project delivery. These have resulted in a real reduction in costs even while absorbing additional maintenance workloads from newly commissioned assets.

EfficiEnt And fAir PricinG TransGrid is proud that it has met the challenge of continuing to provide electricity transmission services at the lowest possible cost to consumers.

TransGrid’s allowable revenue is set every five years by the australian energy regulator (aer). each year, TransGrid adjusts its revenue for inflation and then sets its transmission process. TransGrid’s prices for 2008/09 were published in May 2008, as required by the national electricity rules.

From these annual revenues, TransGrid calculates the transmission prices for our network customers in accordance with the methodology described in the rules.

The 2008/09 allowable revenue of $621 million will provide for significant augmentation projects to the nsW electricity network. There was a moderate 6.5 percent increase for 2008/09 to the average retail customer, which equates to approximately $3 per household per year in real terms.

nsW’s business centres, located primarily in sydney, newcastle and Wollongong, are growing rapidly and require increased transmission capability to support them

TAS

SA

VIC

QLD

NS

W

3.62.

1

3.7

1.63.1

Growth in Peak Demand 2006/07 – 2013/14 (MW)

source: nemmCo 2007 statement of opportunities


riGHtmanaging Director, Kevin murray, attending the installation of a 500kV transformer at bayswater

detailed planning and the adoption of best practice asset management principles is integral to TransGrid in meeting future growth in demand for electricity

in ProfiLE

TransGrid’s Future revenue Peter McIntyre General Manager/Network Development and Regulatory Affairs

TransGrid’s current revenue determination issued from the australian Consumer and Competition Council (aCCC) expires on 30 June 2009. a new five year determination will take effect on 1 July 2009.TransGrid submitted its revenue proposal to the australian energy regulator (aer) in June 2008. This proposal sets out TransGrid’s revenue requirement to meet customer needs for electricity transmission services in nsW and the aCT for the period 2009-14.

The revenue proposal seeks sufficient funds from the regulator to allow TransGrid to continue to deliver first-class network reliability standards while catering for forecast load growth. nsW makes an enormous economic contribution to australia, and the prosperity of the economy is underpinned by reliable and cost-effective transmission services.

nsW has by far the largest manufacturing base in australia, and in the sydney region alone a population which is forecast to grow by 1.1 million people. TransGrid will need to make significant capital investments for both plant replacement and network augmentation purposes over the 2009-14 period.

Through innovation and targeted efficiency improvements, TransGrid has responded well to the incentives set by the regulator for the current regulatory period. The revenue proposal demonstrates that TransGrid is one of the most efficient Transmission network service providers in the world.

The organisation is aware that the costs of its business are ultimately met by end users and businesses. The proposal would see transmission services continue to be provided at the lowest price to households in the neM.

preparing the submission was a significant endeavour, involving the formation of a dedicated project team to manage the process, with support provided as required from all parts of the business.

The development of the submission involved many people across the organisation. Their effort and commitment to the process has been second to none and their support is very much appreciated.

TransGrid’s revenue proposal will ensure that consumers in new south Wales will continue to receive the lowest cost transmission service in the national electricity Market


tHis PAGE500kV bayswater Construction site

oPPositE PAGECarrying out of works at munmorah substation

24 custoMErs, stAKEHoLdErs, coMMunity > TransGrid annual reporT 2008

ExcEllEncEExcEllEncEExcELLEncEcustoMErs, stAKEHoLdErs, coMMunity: striVinG for ExcELLEncE >

TransGrid works diligently with customers, stakeholders and the community to ensure the service they expect will continue well into the future.

TransGrid annual reporT 2008 > custoMErs, stAKEHoLdErs, coMMunity 25

PArtnErsHiPs >

Customers

staKeHolDers

Community

ExcEllEncEExcEllEncEExcELLEncEVALuinG our custoMErs TransGrid’s customers include:

> The distribution network service providers (dnsps) that distribute power to the majority of the people of nsW and aCT (actewaGl, Country energy, energy australia and integral energy).

> directly connected generators who produce the electricity (delta electricity, eraring energy, Macquarie Generation and snowy Hydro limited).

> large industrial consumers of electricity who are directly connected to TransGrid’s high voltage network. Currently, TransGrid has three directly connected customers.

> Customers connected through the inter-regional interconnectors such as powerlink (Queensland).

> potential new customers who have approached TransGrid and have made an application to connect to our network.

TransGrid works diligently with our customers to plan, develop and manage the network to ensure the service they expect will continue well into the future.

Key services provided to our customers include the provision of annual planning reports, public consultation documents and timely information on planned outages.

TransGrid also carries out joint planning with distribution network service providers. This joint planning is critical in ensuring that a coordinated approach is adopted as the demand for power grows and networks change. For example, developments on the mid-north Coast, newcastle and sydney areas have involved joint public consultation with the relevant distribution businesses.

directly connected generators seek predictable levels of transmission access to enable market trading. To this end, TransGrid provides regular communication services to generators regarding our outage program. They also require assistance in revising connection arrangements when generator performance is upgraded.

AboVE LEftVic Galea, peter logue, john byrne and Garry smith at the opening of uranquinty power station on 2 august 2007

AboVE riGHtenvironmental management representative, nathaly Hanke, and transGrid Civil inspector, jon anderson at the macarthur substation site

26 custoMErs, stAKEHoLdErs, coMMunity > TransGrid annual reporT 2008

TransGrid plays a key role in assisting intending customers during the connection inquiry stage. our intending customers rely on TransGrid to provide prompt and clear information on transmission development plans. They also require TransGrid to facilitate connection to the transmission network in line with their project development needs. TransGrid is currently processing ten formal applications to Connect from prospective generators or customers. Four of these are currently scheduled for operation in 2008-09.

buiLdinG stAKEHoLdEr rELAtionsHiPs TransGrid appreciates that the development and maintenance of partnerships with our stakeholders is an essential activity and one that enables both the organisation and its stakeholders to achieve common goals.

TransGrid’s stakeholder Management approach enables communication across various stakeholders throughout the entire life of a project or activity and defines the process for maintaining and strengthening both our internal and external stakeholder relationships. our stakeholders have expectations of us which we need to be aware of and manage.

TransGrid understands the importance of communicating with stakeholders in a way that educates them about our business, promotes our brand and reputation and ensures they understand the impacts, milestones and key specifics of our projects.

The management of stakeholders occurs for a wide range of business activities. special emphasis is placed on engaging with an array of stakeholders in the delivery of TransGrid’s multi-billion dollar capital program. These stakeholders typically include shareholding Ministers, the regulators, major customers, media, the community, Government departments, other Transmission network service providers and other national electricity Market participants.

TransGrid makes use of targeted communication tools and is proactive in monitoring and reviewing its stakeholder management approach at all times to ensure our stakeholders are a priority.

WorKinG WitH tHE coMMunityTransGrid has continued to raise the bar in meeting community and environmental obligations.

TransGrid meets our environmental obligations by training our employees in environmental assessment and protection. We have also developed an environmental Management system to identify and manage potential issues. TransGrid’s environmental Management system is the primary mechanism for identifying environmental risks, developing environmental management programs and communicating environmental issues to our stakeholders.

TransGrid’s long-term planning approach (5 to 15 years) ensures that we look carefully at how our major developments will affect the community and the environment, and build the feedback into our project plans. This planning is critical as it may lead to a different approach to work in areas of high significance from what might have been identified in shorter-term planning.

Community consultation is an integral element of every proposed TransGrid development project. TransGrid constantly engages the community, whether notifying affected landowners during planning or the community as a whole during major capital works program delivery.

strEnGtHEninG our PArtnErsHiPs GreenGrid TransGrid’s award-winning partnership with Greening australia Capital region (Ga-Cr) began as a local environmental sponsorship in 1997 and has today evolved into a vital partnership which seeks to combine corporate and community action on a multi-regional scale.

The partnership, called GreenGrid, has focused on connecting and protecting remnants of native vegetation and re-establishing vegetation on farms in the upper Murrumbidgee and lachlan catchments in south-east nsW. This targeted revegetation aims to provide the crucial link between community volunteers and landholders.

recent features have been support of the Boorowa river recovery program, and protecting and enhancing important TransGrid assets such as a high quality woodland remnant at TransGrid’s Molong substation.

a strategic alignment workshop, involving TransGrid and Ga-Cr staff, will explore and shape future directions of GreenGrid, with a focus on offsetting TransGrid’s ecological and carbon footprints. This program highlights the importance of corporate partnerships in achieving positive environmental and community benefits at a local and regional scale.

in ProfiLE

improving power supply to the Manildra-parkes region in order to meet the growing energy needs of the Central slopes and plains region of new south Wales, TransGrid is building a new transmission line from Manildra to parkes.

TransGrid was active in engaging stakeholders early in the project, seeking expressions of interest from the energy market to identify any non-network solutions.

The next step began in early 2008, when TransGrid went directly to the local community to gather feedback on potential routes for the transmission line. information sessions were held at community halls around the region, where locals were invited to engage, and ask questions of, TransGrid’s team.

This project is a prime example of TransGrid’s commitment to improving the quality and reliability of supply to the Central slopes and plains of new south Wales. TransGrid is working closely with the people of these regions to determine what features of the project are of particular interest to them. The outcomes of the consultations will be reviewed by TransGrid to ensure all factors are considered in selection of the route.

TransGrid annual reporT 2008 > custoMErs, stAKEHoLdErs, coMMunity 27

Earthwatch The earthwatch institute is an independent, non-profit organisation that supports scientific field research by placing volunteers in the field to work with scientists.

The partnership between TransGrid and earthwatch institute was initiated in 2005 to support TransGrid’s business commitment to being environmentally responsible. Through this partnership, TransGrid employees have participated in earthwatch field research projects based around australia.

in 2007, four participants were chosen to undertake various projects across the country. These were:

> richard Manderson (network services) – echidnas and Goannas

> peter Hamilton (Capital project delivery) – australia’s Forest Marsupials

> Kathy pate (Business services) – australia’s Vanishing Frog’s

> Wayne Collison (network services) – australia Burning

This partnership provided opportunities for TransGrid staff to advance their understanding of local environmental issues, engage with leading conservation scientists as well as provide opportunities for personal and professional development.

Climate Change TransGrid is working closely with key external bodies in actively assessing the impact of climate change on our operations and policies.

our climate change strategy will be launched by implementing the following:

> assessing climate change impacts on load forecasts, network ratings and performance under a range of scenarios.

> assessing TransGrid’s Greenhouse non-network emissions footprint and implementing strategies to move toward being carbon neutral.

> Maintaining an awareness of community, political and regulatory developments relating to climate change.

To ensure the project is a success, TransGrid will engage key external stakeholders, thereby learning from their accumulated knowledge. TransGrid will also engage our employees by updating them regularly on progress.

strAtEGic sPonsorsHiPs TransGrid’s approach to community interaction is defined by our Community engagement program.

TransGrid has continued the partnership with Greening australia, one which aims to contribute to the environmental well-being of the state. TransGrid has granted $198,640 to Greening australia over the last year.

TransGrid has made tertiary contributions to the following universities to contribute to the development of technical expertise within the electricity industry:

> The university of Technology sydney (sponsorship of the 2008 accounting program).

> The university of newcastle (sponsorship for indigenous summer school 2008 and uniss program).

TransGrid was a founding member and continues to be a governing member of the australian power institute. Through the australian power institute, TransGrid supports the development of capability in power engineering education in australia and programs to attract more power engineering students. TransGrid contributed $80,000 to the australian power institute over the last year.

TransGrid has sponsored key events which have a strong presence within the state and provide industry networking opportunities which are linked to TransGrid’s strategies. These have included:

> department of environment and Climate Change (Bronze partner Green Globe awards).

> electric energy society of australia (national Conference sponsorship).

> The australian electrical and electronic Manufacturer’s association (energy21C Conference sponsorship).

> Various public schools and TaFes across the southern area of nsW.

> The Yass area network for landcare for sponsorship of the Yass network Climate Change seminar.

TransGrid is proud of the real contributions it has made to local and regional communities and is looking forward to strengthening these positive interactions in the following year.

in ProfiLE

Tapping into the Community at Bannaby The Bannaby substation project is part of a $337 million development known as the Western 500kV project. Construction on the substation commenced in January 2008 and will strengthen electricity supplies to the expanding southern Tablelands.

TransGrid has actively engaged stakeholders and are continuing to do so for the Bannaby project. in particular, TransGrid has:

> Facilitated an inspection of the Bannaby substation by the nsW energy Minister, the Hon. ian Mcdonald MlC.

> Worked in partnership with the upper lachlan shire Council by presenting the impacts of the development to them and liaising closely with them in upgrading the roads which lead to the Bannaby site. The road upgrades are an essential element of the construction of the substation, enabling the delivery of transformers to the site.

> Worked closely with the community in communicating the benefits of the project to them, some of which include the injection of money and employment into the local economy.

> Facilitated discussions with landowners who would be impacted by the works. > engaged consultants to undertake extensive environmental studies.> informed stakeholders of each critical project milestone through the issuing of press

statements and brochures.

28 innoVAtion > TransGrid annual reporT 2008

InnovatIonInnovatIoninnoVAtioninnoVAtion: nEW WAys of doinG businEss >

TransGrid continues to implement sophisticated processes and innovative techniques to ensure its capital infrastructure development program comes to fruition in the most efficient manner.

TransGrid annual reporT 2008> innoVAtion 29

innoVAtion >

inCreasinG eFFiCienCy

asset manaGement

researCH + DeVelopment

InnovatIonInnovatIoninnoVAtiondriVinG cost EfficiEncy The regime administered by the australian energy regulator seeks to ensure that TransGrid operates in a cost efficient environment.

TransGrid has implemented highly efficient processes to ensure cost effective service delivery. This is achieved by optimising the mix of in-house and outsourced services to best manage dollars spent. Where prudent, TransGrid outsources work – such as easement maintenance, high voltage testing, environmental and design services, information technology service delivery and construction services for major works.

a recent study by the uMs Group highlighted TransGrid’s efficiency by stating that the organisation’s strategy has “resulted in TransGrid being a low-cost service provider when compared to peer companies internationally”.

some of the more recent strategies include:

> restructuring operations at the state’s control centres.

> Facilitating monthly outage-planning workshops and introducing an outage Management system to better coordinate and reduce outages.

> rationalisation of information Technology services to a single contractor.

> Centralisation of the payroll and logistics functions.

> streamlining procedures to improve productivity.

sMArtEr cAPitAL ProJEct dELiVEry TransGrid has introduced innovative processes to ensure our capital infrastructure development program comes to fruition in the most efficient manner.

TransGrid has continued with the implementation of a relatively new Corporate Governance Framework which included the creation of an executive-level Capital Works program steering Committee. This committee plays a pivotal role in enhancing the project management process by carefully managing the risks associated with proposed projects. The governance process makes way for improved Board visibility and oversight of the capital infrastructure development program.

AboVE LEftFrom left to right, Don mcKay, jon novakovic and lionel smyth working in the state Control room

30 innoVAtion > TransGrid annual reporT 2008

TransGrid engages in strategic procurement by carefully managing the delivery of equipment which has critical lead times. To ensure timely delivery, TransGrid maintains a pool of back-up alternative suppliers. TransGrid regularly scans the market so that it gets the best equipment for the delivery of its capital infrastructure development program.

To maintain a wide pool of engineering specialists at our disposal, TransGrid engages in period contracts for external engineering services. our external specialists provide valuable support to our permanent staff.

innoVAtiVE non-nEtWorK soLutions Western 500kV Conversion demand Management and other non-network options, such as embedded generation, are always considered as viable alternatives to augmentation when we look to address emerging network constraints, and are considered during application of the aer’s regulatory Test.

a request for proposal (rFp) was issued for non-network alternatives relating to the Western 500kV transmission system upgrade. several companies responded to the rFp, proposing generation options as well as demand side response initiatives. The rFp requested network support in the newcastle/sydney/Wollongong areas for the period november 2008 to March 2009. assessment of the proposals concluded that a portfolio of companies be contracted that offered the most cost-effective network support for a total of 350MW.

Formal network support agreements have been signed with three companies. a pass-through of costs associated with these agreements was approved by the aer.

Demand Management and Planning Project (DMPP) as part of the approval process for augmentations to the electricity supply network to the sydney CBd and inner suburbs, TransGrid, energy australia and the department of planning initiated in 2003 a high priority project to identify, and where practical, implement opportunities to reduce demand growth that may defer or avoid network expansion in the greater sydney area. The dMpp covered investigations and identification of feasible demand Management and local generation opportunities. TransGrid and energy australia supported the project by committing a total of $1 million per year each over a five-year period for a total of $10 million.

over the past five years, the dMpp team has covered hundreds of electricity customers to explore demand Management opportunities and technology applications. The main purpose of the project was to build a comprehensive knowledge base of demand Management technologies and practices and gain an understanding of the market in which demand Management initiatives operate. The resultant knowledge base spans over 750 electricity customer sites and pilot projects conducted with over 200 large customers.

The main conclusion of the dMpp is that peak network demand could be moderated and energy efficiencies gained by using a portfolio of initiatives in cooperation with electricity customers. However, the cost effectiveness of possible initiatives is variable. a portfolio approach to demand Management is likely to work best.

The dMpp completed its term at the end of June 2008. a department of planning audit concluded that TransGrid (and energy australia) have met all ‘Conditions of Consent’ issued by the Minster for planning in 2002 as part of the approval for the MetroGrid project.

iMProVinG AssEt MAnAGEMEnt The Mains and easement Management system project has been established to provide support for the inspection and management of TransGrid’s transmission line assets and easements. The project combines the information in the Works Management system (ellipse) with spatial information from the Geographic information system to provide field staff with the transmission line and environmental information required to undertake their work in an effective and environmentally conscious manner.

The $3.6 million project will deliver a field-based solution, with a tablet computer providing a graphic view of the transmission line and easement, and other relevant information such as environmental sensitivities. The system will also contain inspection requirements for the transmission line. The user will be able to complete the inspection in the field accurately, knowing the defects already recorded and any local issues to be considered. a significant improvement on current processes will be the ability to show the maximum allowable vegetation height at any point on the easement. This information is based on aerial laser survey data collected by TransGrid.

VirtuAL controL rooMrecent advances in Control room technology include:

> The new sCada system (supervisory control and data acquisition), which enables any part of the network to be operated from any control room;

> a new telephony system, which enables calls to be automatically routed to the operator responsible for handling them;

> audio-visual links between Control rooms.

TransGrid annual reporT 2008 > innoVAtion 31

This has allowed a fresh approach to control room staffing, with staff no longer limited to operating their own specific region. The advances have had immediate operational benefits, particularly during emergency conditions. emergencies seldom affect two parts of the network simultaneously, so it is now possible for an operator in the unaffected part of the network to directly assist the other operator in managing the problem.

This operational flexibility has been termed a “virtual control room”. using the audio-visual links and new telephone system, the operators’ location is no longer the determining factor in managing the network.

buiLdinG our EnVironMEntAL MAnAGEMEnt systEM TransGrid has continued to improve the efficiency of our environmental Management system. during the triennial iso 14001 accreditation audit, conducted on TransGrid’s environmental Management system in august 2007, the external auditors stated that:

“very good standards for environmental management continue to be well developed and maintained at both a system and operational level”.

some of the enhancements made to TransGrid’s environmental Management system include the following:

> Continued improvement of TransGrid’s environmental rules for maintenance work on easements and in TransGrid premises. TransGrid has made this system more efficient by implementing an online training, assessment and authorisation program. our environmental rules program 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.

> annual workshops are now held with management, technical experts and staff to identify the significant environmental risks faced by the organisation.

> TransGrid has designed and implemented a new electronic environmental impact assessment (eia) system. The new system allows for a spatial relationship to be established between TransGrid’s transmission assets and the broader environmental variables therefore assisting with the management of assets in an environmentally sensitive way, which is a key corporate driver for TransGrid. The new reporting system leads to a more accurate assessment of all of TransGrid’s assets, activities and potential environmental impacts and controls.

EnHAncinG inforMAtion tEcHnoLoGyduring the last year, the information services Group (isG) has reinvigorated TransGrid’s iT strategy.

Business improvement initiatives, the consolidation of iT platforms and improvements in service delivery have resulted in further business efficiencies and a reduced environmental impact of running iT infrastructure. examples include:

> line of business applications have and continue to be developed or enhanced to support core business functions, such as high voltage network outage management, mains and easement management and improved geographical information systems.

> enhancements to core corporate iT systems have also been made with upgrades to TransGrid’s asset management and work planning solutions, including employee self service.

> isG has adopted a flexible, service-driven applications development methodology, resulting in significant reuse and vastly reduced time to develop iT applications to support core business process, as well as the retirement of a number of legacy applications.

> iT infrastructure capacity has expanded significantly to cater for business requirements, including increased data storage for geographic information, enhancements to information management and business intelligence.

> at the same time, a number of resources are being consolidated by implementing server virtualisation technology, making better use of available iT resources.

rEsEArcH And dEVELoPMEnt TransGrid promotes research relationships with external organisations and educational institutions for projects that align with our business needs. This enables TransGrid to provide innovative solutions to achieve core objectives.

TransGrid is involved in projects in the following areas:

> new approaches to market modelling and planning generator market entry with university of Queensland.

> demand side management with energyaustralia.

> power system stability in cooperation with university of adelaide.

> power quality effects due to voltage variations in cooperation with university of Wollongong.

> Fibre optic Voltage transducers that use light to measure power flows on high voltage networks in cooperation with university of sydney and aBB australia.

> support for the australian power institute.

TransGrid is looking forward to building on these relationships in the future.

fAr LEftmacarthur 330kV substation project manager Vijendra prasad discussing site works with jon anderson

LEftDavid Gazzard from newcastle regional Centre

riGHtControl room

The ‘virtual control room’ has had immediate operational benefits and has allowed a fresh approach to control room staffing

32 PEoPLE > TransGrid annual reporT 2008

PErsonnEL >

saFety

inVestinG in expertise

builDinG leaDersHip

DiVersity

ExpErtisEExpErtisEExPErtisEPEoPLE: tHE KEy to our succEss >

TransGrid is committed to life-long learning and the pursuit of development opportunities which attract and retain the highest calibre staff.

TransGrid annual reporT 2008 > PEoPLE 33

ExpErtisEExpErtisEExPErtisEProMotinG sAfEty Health and Safety Strategies TransGrid has introduced a number of new occupational Health and safety initiatives during the year, all of which focus on the prevention of injury or illness for our employees.

TransGrid’s Fit For Work Program occupational Therapists have worked with our Health and safety Team to improve the physical fitness of our field employees involved in high risk activities. The newcastle lines Team continues to

progress positively with both the dietician and workplace physiotherapist. The Fit for Work program will soon be rolled out to our southern and central regions.

a second annual safety improvement Workshop was held during april 2008. The aim of these workshops is to gain feedback and information outside existing consultation mechanisms on current workplace health and safety issues affecting employees in the field. The level of participation was high, and there was an extremely positive attitude and eagerness to share and obtain information between groups and across regions. a number of recommendations were developed by participants and subsequently endorsed for implementation by the executive occupational Health and safety Committee. Based on this success, we decided to continue holding the workshops on an annual basis.

To assist employees who manage contractors in understanding their roles and responsibilities, the Health and safety Group has developed a Contractor Management training package. The course is competency based and covers legislative requirements, developing specifications, evaluating tenders and the monitoring of contractor performance.

TransGrid’s booklet “Your Safety in TransGrid” has undergone a review. The booklet deals with practical safety tips for the workplace and provides relevant information in an easy to read format. The updated version emphasises the communication of health and safety in the workplace.

AboVE LEftpeter minehan and Kathryn pate from newcastle region

AboVE riGHtDaniel bremner, Kevin murray, Darren ngo and rhys mcKay


The safety Communications steering Committee has continued to maintain awareness of safety issues across TransGrid’s regions. a number of posters have been produced and distributed including a “safety non-negotiable” poster that deliver a number of general workplace safety messages.

TransGrid has continued to reinforce Health and safety awareness via the implementation of our Quarterly Health and safety Themes. Themes for the last year have included “Warm up for Work”, “Winter Working”, “spring Clean Your Workplace” and “sun sense and safety”.

TransGrid Safety Competition in september 2007, the Yass community witnessed scenes of fire fighting and first aid, as teams of TransGrid employees competed in TransGrid’s 13th annual safety day. This was also the 50th year that these competitions have been held in the electricity industry.

as well as promoting a positive safety culture, the safety day provides an opportunity for TransGrid employees to demonstrate and refine their training and skills through practical scenarios in First aid, Fire Fighting and risk assessment competitions.

events included teams battling controlled fires and tending to actors with graphic mock injuries. representatives from WorkCover, the nsW Fire Brigade and the department of Water and energy were in attendance, with the Fire Brigade and st John ambulance also provided judging for the competitions. a number of safety displays provided insight into some of the equipment and work activities undertaken by our staff.

Congratulations are extended to the newcastle depot who took home the safety day shield.

TransGrid OHS Statistical Information 2007-2008

Frequency rate: 3.1

average lost Time rate: 13.83

Total lost Time injuries: 6

Total days lost: 83

Table of Lost Time Injuries

Part of Body injured number type of injury Days lost

Hips/legs 1 sprain/strain 21

Hips/legs/shoulders/arms 1 sprain/strain 3

Feet/Toes 1 sprain/strain 6

Feet/Toes 1 Fractures 23

shoulders/arms 1 sprain/strain 27

Back 1 sprain/strain 3

Total 6 83

our PEoPLE TransGrid recognises that our people are at the core of our achievements. For this reason, TransGrid is committed to life-long learning and the pursuit of development opportunities which attract and retain the highest calibre staff.

Building Leadership Capability TransGrid is committed to producing leaders who will maintain our position as a best practice electricity transmission organisation well into the future.

To this end, external consultants have been engaged to initiate a number of leadership programs, which are all at various stages of implementation.

Executive Leaders Program The executive leaders program is an executive-level coaching program designed for executive Managers within TransGrid who have been identified as potential successors to more senior executive positions.

each participant has had an individual coach selected for them based on pre-coaching assessments and interviews. The participant and coach are able to agree on any further use of psychometric testing or 360 degree feedback as well setting key goals and milestones.

Senior Leaders Development Program The senior leaders development program is a structured program designed to identify, assess and provide development to selected senior managers identified as potential successors to senior positions such as General Manager and senior Group Manager.

during this program, which is due to commence in september 2008, participants take part in an individual assessment to identify development needs. Following these assessments, each individual will be provided with a development plan setting out appropriate activities and/or training including coaching, attendance at a training course or appropriate workplace activities.

LEftFire Fighting Competitions at safety Day

tHis iMAGE left to right: mark Hobson, joshua walker and Kevin murray


Future Leaders Development Program TransGrid’s Future leaders development program is a new structured program designed to develop employees from within TransGrid to ensure a suitable pool of candidates exists to move into leadership roles.

it is envisaged that the Future leaders development program will help counteract the impact of generational change, including the retirement from the workforce of the “Baby Boomers”.

The program looks at leadership across all facets of the organisation and seeks to gain commitment from employees to manage and actively participate in their own development. TransGrid underwent extensive benchmarking against other organisations to develop a leadership Capability profile for our company.

The pilot program commenced in october 2007. 21 candidates from across TransGrid were put through the program. all candidates are now going through individual development planning sessions and will also undertake group training in common development areas. in addition, all candidates will be assigned to work on strategic organisational projects which will carry through till the end of 2008.

TransGrid intends to have a second intake of Future leaders candidates in 2009.

inVEstinG in GrAduAtEs TransGrid has continued to build on our commitment to graduate, cadet and scholar programs. These programs are a key feature of our resource and succession planning initiatives.

TransGrid currently employs 37 electrical engineering Graduates, 1 Civil engineering Graduate and 8 accounting Graduates.

TransGrid’s graduates are provided with structured training and development in a variety of areas including leadership

development, individual development plans and support to gain Chartered status with engineers australia.

our graduates work on interesting and challenging projects. The planned rotations provide graduates with a unique experience allowing them to gain an insight into different areas of the business, as well as the chance to work with our many different subject experts.

during 2007/08, TransGrid continued to offer scholarships in electrical engineering. TransGrid currently has two scholarship holders at newcastle university, one at the university of Wollongong and two at the university of Technology sydney. TransGrid also awarded a scholarship in environmental studies with the university of new england.

TransGrid awarded a Managing director’s scholarship in electrical engineering to Michael dalton. This program commenced in 2006 and is awarded on an annual basis to a TransGrid apprentice who has demonstrated high academic achievement, leadership qualities and an interest in furthering their studies.

“TransGrid allows you to move around the organisation to gain a well rounded knowledge of the industry. it also offers many opportunities for training and development to help broaden your future opportunities.” David Batgar, Electrical Engineering Graduate

coMMittinG to APPrEnticEsHiPs TransGrid continued to have a strong focus on apprenticeship programs during the year. a total of 57 apprentices are employed by TransGrid, at different levels of progress. The 2008 intake of 15 apprentices was in keeping with TransGrid’s commitment to both organisational resource planning and social responsibility. our apprentices are part of a program to address skills shortages across the electricity transmission industry.

apprenticeships are aligned with national Training packages involving both on 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.

PErforMAncE rEViEW And dEVELoPMEnt ProGrAMs The implementation of performance review and employee development programs has continued during this year.

a review of TransGrid’s performance review and employee development programs was undertaken during october 2007. The review highlighted that the program has been well received and is successfully embedded in the organisation. However some improvement opportunities were identified and these are currently being implemented and include a training needs analysis, and development of an attraction and retention strategy that incorporates reward and recognition initiatives.

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double apprentice success although all of our apprentices are of a high calibre, two in particular, darren ngo and Melanie dunhill, were officially recognised during the year. darren ngo, electrical apprentice from sydney West, was presented with an award for “outstanding student” at Granville TaFe as he works towards obtaining his electrical engineering diploma. darren has shown impressive dedication during his studies.

Melanie dunhill, Communications apprentice from Yass, was awarded Best apprentice in the electrotechnology electronics Trade by the Canberra institute of Technology. Melanie received the Cooper Tools award for the commitment and technical excellence she demonstrated during her apprenticeship with the Communications Group at TransGrid’s Yass region.

LEftDarren ngo receiving his award


sAyinG tHAnK you to our LonG sErVinG EMPLoyEEs TransGrid recognised the service of our employees by hosting a series of 25 year and 40-year recognition dinners. These dinners were held across all our regions in nsW and offered an opportunity for the organisation to say thank you for the commitment and loyalty our employees bring to the industry.

TransGrid’s Managing director, Kevin Murray, attended all dinners and commented on our employee’s dedicated service by stating, “it’s the hard work of these long standing employees which has been instrumental in TransGrid being a leading performer in the electricity industry”.

although these events mark a significant milestone for our exemplary employees, TransGrid is committed to passing down knowledge and experience to its younger workforce. These employees have been valuable role models to the younger workforce at TransGrid, and many have been instrumental to their personal and professional career development.

LooKinG At rEWArds And rEcoGnition TransGrid understands the importance of finding the optimal employee reward and recognition approach, not only to attract the best performers into the organisation, but to retain our technical excellence and expertise.

in early 2008, TransGrid engaged a consultant to review TransGrid’s current reward (non-financial) and recognition processes and to recommend enhancements which will improve overall practices. The Human resources Group, together with the consultant, have been facilitating focus group sessions with many employees across the organisation. TransGrid recognises that our employees’ views and experiences play a vital role in developing a win-win solution for an employee rewards and recognition approach.

TransGrid is currently considering the recommendations which came out of the review in line with other strategies such as recruitment and retention, employee engagement and staff development.

VALuinG diVErsity Workforce Diversity Strategy TransGrid has in place a Workforce diversity strategy which promotes the development and embracing of a diverse and skilled workforce.

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. our 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.

Provisions of Programs for Women TransGrid’s major initiative in recent years in relation to women has been the ongoing commitment to TransGrid’s spokeswomen’s network. in response to a change in policy by the nsW Government, we have also looked to re-examine how we approach gender equity in our workplace. They now align more closely with TransGrid’s diversity strategy as well as employee attraction, retention and development strategies. a new Women’s Committee will be launched in 2008/09 consisting of elected employee representatives from across the organisation as well as senior management representatives. The role of the Committee will be to consider strategic processes to assist in the development, retention and advancement of female employees in TransGrid.

Aboriginal Employment Development Strategy TransGrid’s aboriginal employment and development strategy is an integral component of TransGrid’s Workforce diversity strategy.

The aboriginal employment and development strategy has been developed with reference to the Making it our Business – nsW policy statement 2006-08 issued by the nsW premier’s department.

TransGrid is committed to achieving meaningful and sustainable improvements in indigenous employment by focusing on provision of development opportunities and support to enable aboriginal and Torres strait islander people to develop their career potential.

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safety award The safety award recognises exceptional leadership by an individual or team. although all of the award entrants had developed creative safety initiatives, the clear winner for the 2007 award was the Metropolitan substations Team.

The team investigated and implemented two innovative solutions that led to reduced safety risks and increased productivity for tasks associated with cable pits. The first solution included the use of a light weight, wireless camera for viewing oil pressure readings, eliminating the need to enter a confined space to carry out the task. The second solution involved the development of a prototype davit mounted to a towbar, which significantly reduces the amount of setup time required prior to working in a confined space.

LEftKevin murray presenting the safety award to mark Dorahy, Grahame black and Donovan Kriflick


Disability Action Plan TransGrid has a documented disability action plan which is part of our overall Workforce diversity strategy.

The plan demonstrates TransGrid’s commitment to the objectives of the nsW Government’s disability policy Framework, the nsW disability services act 1993 and the nsW anti-discrimination act 1977.

The plan has strategies which have been implemented by management and staff to respond to the needs of disabilities of people within new south Wales. The plan is published on TransGrid’s intranet, Transnet.

Ethnic Affairs Priority Statement (EAPS) Key indicators applicable to eaps include the maintenance of merit-based recruitment practices, flexible work arrangements and accommodating the needs of employees in regards to cultural or religious customs.

EEO Achievements – 2007/08 > interactive awareness sessions were

provided to staff on the application of the Code of ethics and Conduct.

> information on harassment and discrimination prevention was kept updated and made available on TransGrid’s intranet, Transnet.

> The current referral officer’s network was maintained and promoted to all employees.

> all new employees attended an induction program which provides exposure to TransGrid’s policies and conditions of employment.

> all Human resources procedures are reviewed regularly to reflect changes in Workforce diversity practice.

> The apprentice intake for 2008 encouraged indigenous and female applications.

> Continued consultation was undertaken for projects affecting local community groups.

EEO Planned Achievements – 2008/09 > review all current Workforce diversity

strategies and plans. > include Workforce diversity data

Collection survey in the induction program for all new employees.

> Continued support for a Women’s network within TransGrid.

> review the referral officer network. > develop a broader advertising strategy

for vacant positions to encourage applications from female, disabled and indigenous applicants.

> Continued rollout of Workplace Bullying and Harassment information sessions for supervisors and Managers as required.

> Continued community consultation at all relevant stages of projects.

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environmental award The environmental award is presented to employees who develop or implement innovative environmental solutions, technologies, practices or processes. The 2007 environmental award was presented to Geoffrey Gumbleton of northern region. Geoffrey was responsible for identifying the need to investigate, source and procure the latest technology to provide an efficient method of removing captured oils contained in substation spill oil Tanks within northern region.

Geoffrey was selected from a number of nominations, all of a very high standard. nominees were recognised for their innovative solutions in easement management practices, equine influenza response, substation data management practices, waste data tracking systems and improvements to the Yass river ecosystem.

LEftKevin murray presenting the environmental award to Geoffrey Gumbleton

38 nEtWorK strAtEGy > TransGrid annual reporT 2008

StrategyStrategystrAtEGynEtWorK strAtEGy: inVEst And buiLd for tHE futurE >

TransGrid has continued to deliver on its multi-billion dollar capital works program to ensure that TransGrid maintains its position as a best practice transmission entity well into the long-term.

TransGrid annual reporT 2008 > nEtWorK strAtEGy 39

futurE >

eConomiC GrowtH

inVestment planninG

upGraDes

StrategyStrategystrAtEGydriVinG EconoMic GroWtH TransGrid’s network services the highest demand in the national electricity Market. economic growth has not only occurred in the traditionally large, hub cities of sydney, newcastle and Wollongong, but up and down the nsW coast and inland as well. TransGrid’s capital infrastructure development program is targeted at meeting this challenge.

TransGrid is also driving the refurbishment and replacement of ageing assets to ensure the efficient and reliable supply our customers have come to expect.

The capital infrastructure development 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 challenging, and successful projects require extensive stakeholder consultation to ensure the best and most efficient results are achieved.

MAnAGinG And MAintAininG our AssEts TransGrid’s success in managing its assets is reflected in our transmission system reliability of over 99.999 percent.

TransGrid’s asset management and maintenance strategies are driven by our network Management plan 2009-14. This plan provides a basis for ongoing analysis within TransGrid and for continual improvement of the transmission system.

AboVE LEftarea site inspector, Colin Kegg, with transGrid’s Vijendra prasad at the macarthur substation site

“ TransGrid is determined in meeting our $1.3 billion capital infrastructure development program to ensure the people of new south Wales receive the best electricity transmission service possible”


TransGrid have continued to review and improve our asset management and maintenance techniques in order to produce best practice performance from our assets.

a risk-mitigation approach is used in the development of our asset management strategies. These strategies are evaluated by specialist working groups and consider maintenance costs, expected reliability and performance, asset capability and capacity and compliance with safety and environmental regulations.

TransGrid has developed a prudent asset management model which consists of:

> The establishment of maintenance policies for each type of asset class. The items in the maintenance plan are carefully prioritised to ensure their impact on reliability, availability, safety, environmental and economic factors are considered.

> planning and executing maintenance work in accordance with the Works Management system. The vast majority of core maintenance work is performed by highly skilled TransGrid staff.

> undertaking Quarterly asset performance reviews which examine the trends, causes and impacts of all forced and emergency outages of network plant.

> Benchmarking our asset management and maintenance processes through the international Transmission operations and Maintenance (iToMs) study program. The benchmarking is carried out with over 25 transmission organisations world wide. The most recent benchmarking study, iToMs 2007, confirms the success of TransGrid’s asset management strategies, with TransGrid well positioned in the “best performer” quartile (lower-than-average cost and above-average reliability).

a recent study conducted by the uMs group has recognised TransGrid’s response to the challenge of managing a growing and mature asset base:

“TransGrid’s operational efficiency and service levels are excellent by international standards, measuring better than average against the superior performing Australian market, and global top quartile, in many areas benchmarked”.

over the next regulatory period, TransGrid is expecting a 24 percent increase in our maintainable assets. TransGrid is confident it will meet this challenge by continuing to take a proactive approach in assessing and monitoring the “well-being” of our assets.

urAnquinty PoWEr stAtion connEcts to Grid in october 2007, TransGrid took possession of the uranquinty power station switchyard that connected the new power station to nsW high voltage grid.

Following extensive investigations, TransGrid offered owners erM power a connection to the network that would allow the generation to flow into the market in a safe and reliable manner.

in order to deliver the generation in time, erM power and TransGrid engaged in an unprecedented level of cooperative project management, which is a credit to TransGrid’s planning experts and the skilled staff of erM power.

orAnGE rEGionAL cEntrE rEnoVAtions in May 2008, TransGrid officially opened a new $4.7 million regional centre in orange, with local staff playing host to a number of guests and local dignitaries. The new centre houses around 45 TransGrid employees, and provides essential support to TransGrid’s ongoing work in the region.

The opening included welcomes from TransGrid’s acting Chairman, Mr Bruce Foy, as well as the Mayor of orange, John davis, and the nsW Member for orange, russell Turner.

The building has been designed to be highly energy and water efficient, and houses a number of new apprentices. Many of the staff based there will be involved in some of the many local projects, which include a transmission line from Wollar to Wellington; major substations at Wollar and Bayswater; a new substation at orange; and a new transmission line from Manildra to parkes.

Port MAcquAriE trAnsforMEr rEPLAcEMEnts To meet the growing demand in the mid-north coast region of nsW, TransGrid has replaced three 132/33kV 30 MVa transformers at port Macquarie substation with new 60MVa transformers. The work also included the installation of a new 132kV bus section and circuit breaker replacements on the 132kV side.

The transformer replacement program was particularly challenging as the work was carried out on a restrictive site, and performed whilst ensuring that the electricity supply was maintained.

opportunity was also taken to bring the environmental controls on the site up to TransGrid’s current standards by upgrading the existing spill oil containment system.

With these new state-of-the-art transformers fully operational, electricity supply to the region has been secured for the foreseeable future.


VALEs Point trAnsforMEr AuGMEntAtion To strengthen electricity supply to the Central Coast region, TransGrid has replaced two ageing transformers at the 132kV substation.

The environmental protection authority (epa) has been investigating noise in the Vales point area and TransGrid has ensured that the new transformers are the latest “low noise” design. initial studies had recommended a complex changeover process to maintain reliable supply to the Central Coast area but coordination with other works by energyaustralia and timing of the project outside peak periods avoided any outages for local customers.

The project cost was $6.2 million and was completed in november 2007, to the program agreed with the epa.

ArMidALE trAnsforMEr rEPLAcEMEnts To strengthen supply to the new england area, TransGrid has replaced three ageing 330/132kV transformers at armidale with two 375MVa units, which provide increased transformer capacity and less operational complexity. The first new transformer was placed in service in May 2007 and the second one was placed in service in october 2007.

a new 330kV switchbay was also constructed at armidale to allow a second point of connection for the existing Coffs Harbour transmission line. This alternative connection arrangement improves the security of supply to Coffs Harbour and lismore, and provides greatly improved access for maintenance to both of the transmission line switchbays. The second switchbay was efficiently designed, thus avoiding the possible need to extend the switchyard.

currEnt inVEstMEnts

PoWErinG tHE nEtWorK: buiLdinG A 500KV trAnsMission nEtWorK Western 500kV Solution demand for electricity is growing at an increasing rate in the newcastle-sydney-Wollongong areas. Consequently, the nsW network needs to have enough capacity to support the required power system reliability and security.

TransGrid has commenced the implementation of a 500kV ring. at $337 million, the Western 500kV project is the largest value project ever undertaken by TransGrid.

This project will provide a significant upgrade to the supply capacity into the main supply centres of nsW without the need for any new transmission lines. This is achieved by operating the western backbone of the core nsW transmission network at 500kV rather than 330kV to maximise the useful capacity of all the transmission lines that supply the newcastle, sydney and Wollongong load centres.

The Western 500kV project will see established 500/330kV substations at Bayswater, Mt piper and Bannaby in the southern Highlands. another 500/330kV substation at Wollar will connect to the new Wollar to Wellington transmission line.

The Western 500kV project is a large scale project in every way. it is the largest 500kV development in australia and the 1500MVa transformers will have the largest capacity of any transformer in australia. Bannaby substation is so large that it will be split between two adjacent slopes, 400m apart.

a project of this scale requires significant coordination and planning. The design and construction work has progressed in a sequence that best matches nsW network constraints with generation availability to minimise market impacts. Components of the project will be commissioned from the end of 2008 through to april 2010.

Construction work is well advanced at Bayswater and Mt piper substations. at the end of June 2008, initial works had begun at Bannaby and the first transformer for delivery to Bayswater was being transported from Japan.

as well as adding to the capacity of the nsW transmission network, the project will reduce transmission losses by at least 50,000 MWh per year in the early years of operation. Transmission loss savings are expected to increase over future years as more electricity is supplied through the 500kV rather than 330kV lines.

Consideration of potential impacts on several local communities has been an important factor during this project, and the positive relationships that have developed with local councils are a tribute to this.

Macarthur 330kV Substation TransGrid and integral energy are reinforcing the electricity supply in south-western sydney. The Macarthur substation, valued at $53 million, will be a bulk supply point that will provide enough power to supply more than 100,000 homes and businesses.

an environmental investigation was made before construction began, taking into account the proximity of construction to the Mt annan Botanic Gardens. With the help of the gardens’ staff during the planning stage, the substation will be landscaped to provide a native wildlife habitat. This also contributes to the substation’s ability to blend into its surroundings.

“ TransGrid is committed to its investments in new south Wales and committed to providing the backbone to the national electricity Market”

LEftCarrying out works at tuggerah substation

riGHtoverview of the bayswater 500kV Construction site


Work began at the site in november 2007 using the design and construct model. This model is unique in that it provides a mechanism to transfer the design, construction and pre-commissioning testing to the contractor and still get a “TransGrid” substation.

The substation’s design is the most compact arrangement ever developed for a bank of four transformers.

as one of the most modern substations in the network, Macarthur will be a valuable part of the national electricity grid.

Wagga North 132kV Substation TransGrid has commenced construction on a new substation at Wagga north.

upon completion, the substation will allow for increasing demand from residents and industry as Wagga Wagga continues to grow. The investment in this substation is a testament to TransGrid’s ongoing commitment to rural communities.

extensive consultation with landowners has resulted in a solution which minimises impact on them, as well as on an area of carbon offset plantation woodland. The line route adopted has a low visual impact for the majority of people in the Wagga Wagga area.

The project value is estimated at $23 million and will connect to 10 of Country energy’s rural zone substations and supply power to around 14,000 residential and business customers.

The project is progressing to an accelerated program with completion expected in april 2009.

Wollar to Wellington 330kV Transmission Line TransGrid is building a 330kV transmission line from Wollar to Wellington to ensure a reliable power supply to the Western area of new south Wales, enhancing network efficiency.

extensive liaison has been undertaken throughout the project with many different bodies, including but not limited to, department of planning at both state and Federal levels, all local Councils, representatives of indigenous people, various Mining organisations, archaeological and Heritage groups, local communities and property owners.

a Construction environmental Management plan has been implemented to provide a systems approach to the management of the project and an independent environmental Management representative has been appointed for the project. The project has affected several nature corridors, and conditions of consent included a requirement to provide a compensatory habitat as replacement of lands cleared for the project.

The total project cost is estimated at $79 million, with practical completion expected by May 2009.

Coffs Harbour/Nambucca/Kempsey 132kV Transmission Line To meet the growing needs of the north Coast community, TransGrid and Country energy are undertaking a major upgrade of the 132kV supply system, making use of existing infrastructure to minimise impacts.

The project involves the conversion of TransGrid’s existing double circuit Kempsey – nambucca – Coffs Harbour transmission line to 132kV operation and the construction of a series of new Country energy/TransGrid substations. The new 132/11kV substations at Macksville and raleigh and a new 132/66kV substation at south Boambee will replace the aging 66/11kV substations in the region, while augmentations are required at TransGrid’s Kempsey, Coffs Harbour and nambucca substations.

environmental impacts of this major supply upgrade have been kept to a minimum through the use of the existing transmission line, while careful selection of the new substation sites and joint development has also reduced the environmental impact and costs.

The total project cost is estimated at over $60 million, covering both TransGrid’s and Country energy’s developments. The estimated cost for the TransGrid components of the project is approximately $25 million.

Construction works commenced in February 2008 and are scheduled for completion in May 2009.


Manildra to Parkes 132kV Transmission Line TransGrid is proposing to construct a new 132kV transmission line between Manildra and parkes. The transmission line will meet increasing power demands in the region, directly benefiting residents and businesses in parkes, Manildra, Forbes and Cowra areas.

social, environmental, technical and economic factors are all considered in determining the best way to meet community needs.

TransGrid is looking at possible route options for the transmission line, which will run between two pre-existing substations. Built-up areas, national parks and air strips are a few examples of the obstacles our planners consider when selecting a route.

TransGrid is working closely with local people to find out what features of the project are of particular interest to them. The feedback gathered from the consultation sessions will be reviewed by TransGrid to ensure all factors are considered during the route selection process.

The estimated project cost is $31 million, with the new transmission line due for completion in January 2011.

Sydney South Transformer Replacements To meet the ever increasing demand in sydney’s south and CBd, TransGrid has replaced two ageing transformers at sydney south 330/132kV substation, with a third transformer due for replacement in november 2008 and a fourth one due in mid-2010.

TransGrid considered the environment and community through the careful observation of handling and disposal standards when removing pCB (used as a coolant in older transformers) contaminated oil.

innovative techniques have been employed throughout the project. For example, when there was a risk of project delays, a spare three phase unit from newcastle was appropriated to allow works to proceed unimpeded. in addition, discussions with energy australia planning and system operations personnel allowed for the continuous operation of their equipment. in effect this saved an enormous amount of planning, time and resources that would otherwise have been required.

The progressive installation of these new transformers will play a key role in meeting growing demand.

Finley 132/66kV Substation Transformer Replacements and Augmentationsa major upgrade of TransGrid’s Finley substation is being carried out to meet increasing demand in the Finley/Mulwala area and to provide system security during new line works proposed by Country energy between Mulwala and Finley.

The upgrade includes a 50 percent increase in the size of the substation, installation of a second 132/66kV 60MVa transformer and the replacement of the existing 30MVa transformer with a new 60MVa transformer.

TransGrid has been vigilant in the implementation of environmental controls on the site by upgrading the existing spill oil containment system with a primary spill oil containment tank and a secondary containment dam.

The project is due for completion in september 2008.

Tuggerah 330kV Substation Transformer Replacements and Augmentationsa major upgrade of TransGrid’s Tuggerah 330kV substation is being carried out to meet the growing demand in the Central Coast area.

The upgrade includes the installation of a second 330/132kV transformer, construction of 330kV switchbays, the installation of four 132kV switchbays and other associated works to facilitate a connection to energyaustralia circuits.

The substation will be screened from the surrounding dwellings by planting native trees along the eastern and western perimeters of the site.

at a total estimated value of $18 million, the new transformer and switchbays will play a vital role in strengthening electricity supply to the Central Coast region.

LEftleft to right: Gavin wood and roger braunton at tuggerah substation

riGHtGavin wood at tuggerah substation

TransGrid’s capital infrastructure development program is the result of extensive planning and investment analysis