Network Quality and Reliability of Supply

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Network Quality and Reliability of Supply Performance Report 2010/11 Prepared by: Operations Asset & Works Audited by: Qualeng

Left blank intentionally DMS 3444560 2

CONTENTS Horizon Power service area map... 4 Introduction... 5 Audit by independent expert... 5 Schedule 1 - Information to be published:... 6 Clause 4 and 10... 6 Clause 5 - Significant interruptions to small use customers... 7 Clause 6 and 10 - Total number of complaints received... 9 Clause 7 and 10 - Number of customer complaints in each discrete area:... 9 Clause 8 and 10 - Total amount spent addressing complaints.... 10 Clause 9 and 10 - Payments to customers for failure to meet certain standards... 10 Clause 11, 12 and 13(a) - Average length of interruption of supply (CAIDI)... 11 Clause 11, 12 and 13(b) - Average number of interruptions of supply (SAIFI)... 12 Clause 11, 12 and 13(c) - Average % of time that electricity has been supplied... 13 Clause 11, 12 and 13(d) - Average total length of all interruptions of supply (SAIDI)... 14 Clause 14(a) - Horizon Power - Average length of interruption - frequency distribution... 15 Clause 15(a) - CAIDI frequency graph.... 15 Clause 14(b) - Horizon Power - Number of interruptions - frequency distribution... 16 Clause 15(b) - SAIFI frequency graph... 16 Clause 14(c) - Horizon Power - Total length of all interruptions - frequency distribution... 17 Clause 15(c) - SAIDI frequency graph... 17 Affect of Major Event Days...18 Appendix... 19 Major Event Days...19 IEEE 136602003 - Section 4.5 Major Event Day classification... 19 Normalised data sets - Unplanned... 19 DMS 3444560 3

HORIZON POWER SERVICE AREA MAP Horizon Power is the Network Operator for thirty four discrete areas including the North West Interconnected System. DMS 3444560 4

INTRODUCTION This report has been produced to meet the requirements of the Electricity Industry (Network Quality and Reliability of Supply) Code 2005. AUDIT BY INDEPENDENT EXPERT Division 3 of the Electricity Industry (Network Quality and Reliability of Supply) Code 2005 requires that Horizon Power arrange for an independent expert to audit, and report on the operation of the systems that Horizon Power has in place for monitoring its compliance with the code. Horizon Power has appointed Qualeng to perform the audit of its systems for compliance with the code. Qualeng is a locally based engineering consulting group with over 15 years engineering, regulatory and quality assurance expertise throughout various industries. Qualeng has a long and successful trading history and comprises a team of highly experienced consultants with recent, relevant and international expertise in the energy sector. DMS 3444560 5

Schedule 1 - Information to be published: Clause 4 and 10 Clause 4(a) Number of breaches of each provision of the Code: Quality of Supply 2009/10 2010/11 Voltage fluctuations 0 0 Harmonics 0 0 Clause 4(b) Remedial action taken for each provision: Voltage Fluctuations Location Action Taken N/A Harmonics Location Action Taken N/A N/A = Not Applicable. Continuous monitoring of voltage and harmonic distortion is done at the substation busbar. Temporary power quality monitoring equipment is installed on the network for specific problem monitoring in response to a customer power quality complaint. DMS 3444560 6

Clause 5 - Significant interruptions to small use customers. DB 1 DB 2 Clause Description Clause 5(a) Number of premises that experienced interruptions greater than 12 hours continuous. Clause 5(b) Number of premises that experienced more than 16 interruptions. Total 1138 819 Detailed analysis of interruptions where duration is greater than 12 hours. Discrete Area Duration (minutes) Carnarvon 11211 556 Premises Cause Description Damage Description Emergency Outage For Hazard Unknown Carnarvon 3840 32 Equipment Failure Metal Pole / HV Insulator / Broken Derby 796 1 Unknown Drop Out Fuse / Blown Djarindjin 760 1 Equipment Failure Esperance 793 1 Equipment Failure Esperance 1175 20 Lightning Distribution Transformer / Fuse / Blown LV Fuse Disconnector Overhead / Broken Bay / Conductor / Damaged / Hit Esperance 1814 7 Lightning Drop Out Fuse / Blown Esperance 1620 118 Lightning Wood Pole / HV Cross Arm / Broken Esperance 862 25 Wind / Debris Sectionaliser / Blown Esperance 1435 8 Wind / Debris Wood Pole / Pole Distribution / Broken Esperance 1230 1 Equipment Failure Bay / Conductor / Clashing or Sagging Exmouth 1686 1 Wind / Debris Drop Out Fuse / Blown Exmouth 1282 45 Wind / Debris Metal Pole / HV Tap / Clamp / Loose Fitzroy Crossing 797 1 Lightning Drop Out Fuse / Blown Gascoyne Junction 8295 1 Unnecessary Attendance Unknown Gascoyne Junction 1488 3 Water Infiltration Unknown Hopetoun 1092 1 Emergency Outage For Hazard Hopetoun 1320 1 Equipment Failure Distribution Transformer / Blown Wood Pole / Pole Distribution / Burnt Kununurra 970 1 Equipment Failure LV Cable Joint / Blown Laverton 980 1 Customer Installation Distribution Transformer / Fuse / Blown Marble Bar 5839 1 Customer Installation Unknown Marble Bar 1198 1 Vandalism or Willful Damage Norseman 1552 1 Wind / Debris LV Electric Meter / Damaged / Hit Bay - Non Bundled Insulated / Conductor / Broken NWIS 804 1 Customer Installation LV Electric Meter Fuse / Blown NWIS 5600 1 Customer Installation Unknown DMS 3444560 7

Discrete Area Duration (minutes) Premises Cause Description Damage Description NWIS 939 1 Equipment Failure Customer Service Overhead Attachmnt / Broken NWIS 10569 5 Equipment Failure LV Cable Joint / Blown NWIS 844 1 Equipment Failure LV Cable Underground / Damaged / Hit NWIS 867 1 Equipment Failure LV Electric Meter Fuse / Blown NWIS 7047 1 Equipment Failure LV Electric Meter / Damaged / Hit NWIS 818 1 Equipment Failure Pillar / Fuse / Damaged / Hit NWIS 940 1 Equipment Failure Unknown NWIS 5556 1 Fire (Not Pole Top Fire) LV Customer Service Line / Other NWIS 1172 70 Human Error LV Cable Underground / Damaged / Hit NWIS 6468 3 Lightning Distribution Transformer / Damaged / Hit NWIS 7862 11 Lightning Unknown NWIS 1037 1 Vehicle LV Cable Underground / Damaged / Hit NWIS 5295 1 Vehicle Mini Pillar / Blown NWIS 879 1 Water Infiltration Drop Out Fuse / Blown NWIS 4101 1 Wind / Debris Bay / Conductor / Broken NWIS 5396 1 Wind / Debris Distribution Transformer / Fuse / Blown NWIS 1151 1 Wind / Debris Distribution Transformer / HV Tap / Clamp / Broken NWIS 2740 19 Wind / Debris Drop Out Fuse / Blown NWIS 3524 57 Wind / Debris Drop Out Fuse / Other NWIS 1554 1 Wind / Debris Electric Meter / LV Customer Equipment / Low Volts NWIS 1910 1 Wind / Debris LV Customer Service Line / Damaged / Hit NWIS 2605 1 Wind / Debris LV Electric Meter Fuse / Blown NWIS 42474 94 Wind / Debris Unknown Onslow 787 1 Equipment Failure Drop Out Fuse / Blown Onslow 1154 26 Lightning Unknown Onslow 1471 1 Vehicle LV Cable Underground / Damaged / Hit Warmun 1253 1 Equipment Failure LV Electric Meter Fuse / Blown Wiluna 1372 1 Equipment Failure LV Circuit Breaker / Other Wiluna 1117 1 Equipment Failure Unknown Wyndham 1319 1 Water Infiltration Unmetered Supply Pit / Water Infiltration or Flooded Wyndham 1319 1 Water Infiltration Unmetered Supply Pit / Water Infiltration or Flooded 1138 The increase in customer interruptions greater than 12 hours is due to the above average extreme weather events (cyclones, severe storms & floods) Horizon Power systems experienced in 2010/11. DMS 3444560 8

Clause 6 and 10 - Total number of complaints received 2009/10 2010/11 DC 10 54 29 Clause 7 and 10 - Number of customer complaints in each discrete area: Discrete Area 2009/10 2010/11 NWIS 11 7 Ardyaloon Beagle Bay Bidyadanga Broome 5 11 Carnarvon 2 1 Coral Bay Cue Denham Derby 7 3 Djarindjin Esperance 17 3 Exmouth 1 2 Fitzroy Crossing Gascoyne Junction Halls Creek 2 Hopetoun 2 Kununurra 5 Lake Argyle Laverton Leonora Looma Marble Bar Meekatharra Menzies Mount Magnet Norseman Nullagine Onslow 2 1 Sandstone Warmun 1 Wiluna Wyndham Yalgoo Horizon Power 54 29 DMS 3444560 9

Clause 8 and 10 - Total amount spent addressing complaints. 2009/10 2010/11 DC 9 $410,959 $396,423 Clause 9 and 10 - Payments to customers for failure to meet certain standards The number and total payments made to customers for failure to give required notice of planned interruption. 2009/10 2010/11 Number Cost Number Cost DD 2 1 $150 0 0 The number and total payments made to customers for supply interruptions exceeding 12 hours. 2009/10 2010/11 Number Cost Number Cost DD 3 71 $5,680 589 $47,140 DMS 3444560 10

Clause 11, 12 and 13(a) - Average Length of Interruption of Supply to Customer Premises in Minutes (CAIDI) Discrete Area 2007/08 2008/09 2009/10 2010/11 Average NWIS 76.6 59.88 49.50 77.32 65.82 Ardyaloon 0 77.27 0.00 0.00 19.32 Beagle Bay 0 749.34 0.00 141.09 222.61 Bidyadanga 31.93 0 0.00 29.00 15.23 Broome 42.17 46.53 55.36 44.97 47.26 Carnarvon 38.97 35.17 80.61 210.54 91.32 Coral Bay 7.6 4.17 0.00 0.00 2.94 Cue 0 127 145.05 185.00 114.26 Denham 63.88 80.17 0.00 64.27 52.08 Derby 34.79 40.96 42.68 54.39 43.21 Djarindjin 0 8.02 0.00 0.00 2.01 Esperance 56.18 141.85 121.28 81.29 100.15 Exmouth 31.99 76.89 41.50 68.46 54.71 Fitzroy Crossing 129.5 233.13 59.68 104.83 131.78 Gascoyne Junction 0 152.24 0.00 264.00 104.06 Halls Creek 33.02 52.99 114.37 77.63 69.50 Hopetoun 103.06 125.61 80.14 165.46 118.57 Kununurra 30.97 36.87 42.07 68.19 44.52 Lake Argyle 46.72 39.69 22.21 89.17 49.45 Laverton 34.29 71.58 59.80 74.13 59.95 Leonora 35.9 65.76 26.20 199.85 81.93 Looma 184.98 459.96 225.00 47.20 229.29 Marble Bar 8.36 11.85 10.03 8.46 9.67 Meekatharra 81.16 125.7 0.00 92.87 74.93 Menzies 35.31 0 0.00 135.52 42.71 Mount Magnet 28.97 103.61 28.32 36.41 49.33 Norseman 52.16 51.63 81.65 85.00 67.61 Nullagine 14.9 6.17 249.19 0.00 67.57 Onslow 16.54 14.2 67.38 74.96 43.27 Sandstone 44.2 12.75 0.00 60.85 29.45 Warmun 0 20.4 0.00 61.50 20.48 Wiluna 26.27 343.57 0.00 76.38 111.55 Wyndham 39.79 34.85 41.93 52.33 42.22 Yalgoo 0 8.88 0.00 0.00 2.22 Horizon Power 47.65 68.19 73.43 87.35 69.15 DMS 3444560 11

Clause 11, 12 and 13(b) - Average Number of Interruptions of Supply to Customer Premises (SAIFI) Discrete Area 2007/08 2008/09 2009/10 2010/11 Average NWIS 1.45 1.89 2.31 2.41 2.02 Ardyaloon 0 2.88 0.00 0.00 0.72 Beagle Bay 0 0.5 0.00 0.50 0.25 Bidyadanga 0.29 0 0.00 0.09 0.10 Broome 10.08 8.62 1.09 3.80 5.90 Carnarvon 4.34 5.89 3.11 6.88 5.05 Coral Bay 2.55 2.29 0.00 0.00 1.21 Cue 0 0.26 1.19 0.96 0.60 Denham 2.86 1.06 0.00 3.81 1.93 Derby 11.01 7.9 2.20 5.99 6.77 Djarindjin 0 1.99 0.00 0.00 0.50 Esperance 11.62 5.51 5.04 5.25 6.85 Exmouth 9 4.43 1.14 3.60 4.54 Fitzroy Crossing 0.46 0.84 1.28 3.35 1.48 Gascoyne Junction 0 0.49 0.00 0.50 0.25 Halls Creek 9.23 6.28 0.28 1.22 4.25 Hopetoun 8.17 2.72 2.60 2.22 3.93 Kununurra 14.68 10.08 6.32 6.14 9.31 Lake Argyle 7.1 8.19 1.73 4.00 5.26 Laverton 5.05 7.27 1.71 2.54 4.14 Leonora 1.26 0.46 1.48 1.16 1.09 Looma 2 1.4 0.12 1.13 1.16 Marble Bar 11.41 2.59 3.77 1.00 4.69 Meekatharra 1.28 1.38 0.00 1.19 0.96 Menzies 0.96 0 0.00 1.68 0.66 Mount Magnet 2.27 6.44 3.53 4.46 4.17 Norseman 1.16 7.43 4.00 4.71 4.32 Nullagine 4 1.02 0.44 0.00 1.37 Onslow 9.74 9.06 3.22 5.23 6.81 Sandstone 0.05 0.95 0.00 1.65 0.66 Warmun 0 1.91 0.00 1.52 0.86 Wiluna 2.05 0.51 0.00 1.33 0.97 Wyndham 29.95 21.88 7.79 7.41 16.76 Yalgoo 0 1.01 0.00 0.00 0.25 Horizon Power 6.67 4.92 2.78 3.77 4.53 DMS 3444560 12

Clause 11, 12 and 13(c) - Average Percentage Of Time That Electricity Has Been Supplied To Customer Premises. Discrete Area % 2007/08 2008/09 2009/10 2010/11 Average NWIS 99.98 99.98 99.99 99.99 99.98 Ardyaloon 100.00 99.96 100.00 100.00 99.99 Beagle Bay 100.00 99.93 100.00 99.97 99.98 Bidyadanga 100.00 100.00 100.00 99.99 100.00 Broome 99.92 99.92 99.99 99.99 99.96 Carnarvon 99.97 99.96 99.98 99.96 99.97 Coral Bay 100.00 100.00 100.00 100.00 100.00 Cue 100.00 99.99 99.97 99.96 99.98 Denham 99.97 99.98 100.00 99.99 99.98 Derby 99.93 99.94 99.99 99.99 99.96 Djarindjin 100.00 100.00 100.00 100.00 100.00 Esperance 99.88 99.85 99.98 99.98 99.92 Exmouth 99.95 99.94 99.99 99.99 99.96 Fitzroy Crossing 99.99 99.96 99.99 99.98 99.98 Gascoyne Junction 100.00 99.99 100.00 99.95 99.98 Halls Creek 99.94 99.94 99.98 99.99 99.96 Hopetoun 99.84 99.94 99.98 99.97 99.93 Kununurra 99.91 99.93 99.99 99.99 99.96 Lake Argyle 99.94 99.94 100.00 99.98 99.96 Laverton 99.97 99.90 99.99 99.99 99.96 Leonora 99.99 99.99 100.00 99.96 99.99 Looma 99.93 99.88 99.96 99.99 99.94 Marble Bar 99.98 99.99 100.00 100.00 99.99 Meekatharra 99.98 99.97 100.00 99.98 99.98 Menzies 99.99 100.00 100.00 99.97 99.99 Mount Magnet 99.99 99.87 99.99 99.99 99.96 Norseman 99.99 99.93 99.98 99.98 99.97 Nullagine 99.99 100.00 99.95 100.00 99.99 Onslow 99.97 99.98 99.99 99.99 99.98 Sandstone 100.00 100.00 100.00 99.99 100.00 Warmun 100.00 99.99 100.00 99.99 100.00 Wiluna 99.99 99.97 100.00 99.99 99.99 Wyndham 99.77 99.86 99.99 99.99 99.90 Yalgoo 100.00 100.00 100.00 100.00 100.00 Horizon Power 99.94 99.94 99.99 99.98 99.96. DMS 3444560 13

Clause 11, 12 and 13(d) - Average Total Length of All Interruptions of Supply to Customer Premises in Minutes (SAIDI) DISCRETE AREA 2007/08 2008/09 2009/10 2010/11 Average NWIS 111 113 114 186 131 Ardyaloon 0 223 0 0 56 Beagle Bay 0 375 0 70 111 Bidyadanga 9 0 0 3 3 Broome 425 401 61 171 264 Carnarvon 169 207 250 1448 519 Coral Bay 19 10 0 0 7 Cue 0 33 173 178 96 Denham 183 85 0 245 128 Derby 383 324 94 326 282 Djarindjin 0 16 0 0 4 Esperance 653 782 611 427 618 Exmouth 288 341 47 246 231 Fitzroy Crossing 60 196 76 351 171 Gascoyne Junction 0 75 0 133 52 Halls Creek 305 333 32 95 191 Hopetoun 842 342 209 368 440 Kununurra 455 372 266 419 378 Lake Argyle 332 325 38 357 263 Laverton 173 520 103 188 246 Leonora 45 30 39 232 86 Looma 370 644 27 53 274 Marble Bar 95 31 38 8 43 Meekatharra 104 173 0 110 97 Menzies 34 0 0 228 65 Mount Magnet 66 667 100 162 249 Norseman 61 384 326 400 293 Nullagine 60 6 110 0 44 Onslow 161 129 217 392 225 Sandstone 2 12 0 101 29 Warmun 0 39 0 94 33 Wiluna 54 175 0 102 83 Wyndham 1192 762 327 388 667 Yalgoo 0 9 0 0 2 Horizon Power 318 336 204 329 297 For the period 01/07/2010 to 30/06/2011 SAIDI using the normalised data sets was 164 minutes. DMS 3444560 14

Clause 14(a) - Horizon Power - Average Length of Interruption - Frequency Distribution Percentile Minutes 25 th 35.39 50 th 50.83 75 th 77.51 90 th 111.84 95 th 175.87 98 th 459.75 100 th 731.80 Clause 15(a) - CAIDI Frequency Graph. Horizon Power - CAIDI % OF CUSTOMERS AFFECTED 800.00 700.00 600.00 CAIDI (minutes) 500.00 400.00 300.00 200.00 100.00 0.00 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Customers Normalised CAIDI CAIDI During the period 01/07/2010 to 30/06/2011 of those customers who experienced an interruption, approximately 60% had an interruption of less than 60 minutes. DMS 3444560 15

Clause 14(b) - Horizon Power - Number of Interruptions - Frequency Distribution Percentile Interruptions 25 th 1.56 50 th 2.91 75 th 4.56 90 th 6.36 95 th 9.89 98 th 13.58 100 th 30.17 Clause 15(b) - SAIFI Frequency Graph. Horizon Power - SAIFI % OF CUSTOMERS AFFECTED SAIFI 35 30 25 20 15 10 5 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Customers Normalised SAIFI SAIFI During the period 01/07/2010 to 30/06/2011 approximately 99% of customers experienced an average of less than 16 outages. DMS 3444560 16

Clause 14(c) - Horizon Power - Total Length of all Interruptions - Frequency Distribution Percentile Minutes 25th 61.23 50th 138.61 75th 300.87 90th 540.83 95th 1477.27 98th 1734.18 100th 4739.18 Clause 15(c) - SAIDI Frequency Graph Horizon Power - SAIDI % OF CUSTOMERS AFFECTED 5000 4500 4000 3500 SAIDI (minutes) 3000 2500 2000 1500 1000 500 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Customers Normalised SAIDI SAIDI Target DMS 3444560 17

Distribution of SAIDI Performance 10 % of Customers with this SAIDI 9 8 7 6 5 4 3 2 1 71.21% 20.54% 1.52% 0.05% 0-290 4.32% 291-580 0.50% 581-870 0.05% 871-1160 1161-1450 1451-1740 1741-2030 2031-2320 1.27% 2321-2610 0.54% 2611-2900 2901-3190 3191-3480 3481-3770 3771-4060 4061-4350 4351-4640 4641-4930 4931-5220 5221-5510 5511-5800 5801-6090 SAIDI Range During the period 01/07/2010 to 30/06/2011 71% of customers experienced outages with durations of less than 290 minutes. Using a normalised data set this is increased to 83%. MAJOR EVENT DAYS In the period 01/07/2010 to 30/06/2011 there were 8 of Major Event Days recorded. Power System Major Event Day Date Event Carnarvon 19/12/2010 Flooding Gascoyne Junction 19/12/2010 Flooding NWIS 21/02/2011 Cyclone Carlos NWIS 22/02/2011 Cyclone Carlos NWIS 23/02/2011 Cyclone Carlos Onslow 25/01/2011 Cyclone Bianca Onslow 16/02/2011 Cyclone Carlos Warmun 13/03/2011 Flooding DMS 3444560 18

Major Event Days Appendix Major event days are days in which interruptions affect the delivery of supply in a system and are not reasonably practicable to control such as extreme weather events (cyclones and floods). These days are excluded from Sustained Interruptions used for reliability measurement and reporting. This report makes reference to the impact of major event days where they have had a significant impact on the statistics. Major Event Day Classification The classification of Major Event Days is to allow major events to be studied separately from daily operation, and in the process, to better reveal trends in daily operation that would be hidden by the large statistical effect of major events. A Major Event Day is a day in which interruptions affect the delivery of supply in a system that is not reasonably practicable to control. All indices are calculated based on removal of the identified Major Event Days. Interruptions that span multiple days are accrued to the day on which the interruption begins. Normalised Data Sets - Unplanned As well as using All Faults data for monitoring system reliability, Horizon Power also uses Normalised data sets unplanned to better reflect incidents that are within the business control. In May 2010 then updated in 2011 the ERA published changes in the Electricity Industry Act 2004 Electricity Distribution Licence Performance Reporting Handbook to its definition of Normalised. Table 1 Electricity Distribution Licence Performance Reporting Handbook May 2011 Sustained Interruptions are defined in the Electricity Distribution Licence Performance Reporting Handbook - May 2011 as being a loss of electricity associated with an outage of more than one minute in duration. DMS 3444560 19

The Electricity Distribution Licence Performance Reporting Handbook advises that Normalised interruptions should exclude the day s interruptions when a system s SAIDI exceeds the Major Event Day boundary, as defined by the IEEE standard 1366-2003. Due to the small size of many of Horizon Power s systems the log-normal SAIDI fault data doesn t result in a Gaussian (Normal) distribution. This is a fundamental assumption that the IEEE standard 1366-2003 is based upon and as such the use of the IEEE methodology is flawed when applied to many of Horizon Powers systems. In 50% (18 out of 36) of Horizon Power Systems have less than 20 individual days in each system where faults have occurred from July 2005 to June 2010. This is insufficient for statistical analysis. Horizon Power excludes days from its Normalised data set where the interruptions affect the delivery of supply in a system that is not reasonably practicable to control such as cyclones and floods. As Horizon Power is a vertically integrated business and is responsible for generation, transmission and distribution the normalised data set includes generation and transmission outages that are reasonably practicable to control by Horizon Power. DMS 3444560 20