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DAssetManagementPolicy

Management System DocumentAsset Management PolicySummary:To define the key asset management principles and requirements which TransGrid will apply to its networkassets to achieve its business objectives and Corporate Plan.Revision no: 6Date: 14/05/14Business function: Strategic Asset ManagementDocument type: PolicyProcess owner: Manager/Asset PerformanceAuthor:Garrie Chubb, Manager/Asset PerformanceContributors:EGM/Network Services and Operations, EGM/Capital Program DeliveryReviewer:Stephen Clark, EGM/Network Planning and PerformanceApprover:Peter McIntyre, Managing DirectorWhen referring to TransGrid’s policies, frameworks, procedures or work instructions, please use the latestversion published on the intranet.

Table of Contents1.Purpose . 32.Scope. 32.1.Good Practice Alignment . 32.2.Corporate Alignment . 32.3.Asset Management System Alignment . 32.4.Asset Management System Activities . 42.5.Asset Management System Definitions . 52.6.Physical Assets. 62.7.Management of Assets outside of the Asset Management System . 73.Asset Management Principles . 84.Policy . 85.Approval. 96.Communication . 97.Implementation . 108.Monitoring and review . 109.Change history . 10Asset Management PolicyRevision no: 6Page 2 of 10

1. PurposeThis document forms the Asset Management Policy for TransGrid. It is intended to define the key principlesand requirements which TransGrid will apply to its network assets to achieve its business objectives andCorporate Plan.2. Scope2.1. Good Practice AlignmentThis document has been developed based on good practice guidance from internationally recognisedsources, including the Global Forum on Maintenance and Asset Management (GFMAM) and the Instituteof Asset Management (IAM). It has been specifically developed to comply with the relevant clauses ofBSI PAS 55:2008 (specifically clause 4.2) and ISO 55001.2.2. Corporate AlignmentThis document and the principles captured within it are derived from and consistent with the TransGridCorporate Plan. It is a live document which forms the framework for the implementation of assetmanagement within TransGrid and the associated activities and decisions. It is intended to define theapproach to asset management taken by TransGrid.2.3. Asset Management System AlignmentThis Asset Management Policy forms a key role within the asset management system ensuring a clear‘line-of-sight’ between the day to day maintenance and construction activities, including assetinterventions and the Corporate Plan. Specifically, it provides a key assurance that TransGrid isdisseminating its Corporate Plan into an effective asset management plan, and provides the start of the‘line of sight’ from the Corporate Plan to the activities on the ground – a key element of good practiceasset management.This document’s role within TransGrid’s asset management system is shown in Diagram 1.Asset Management PolicyRevision no: 6Page 3 of 10

Diagram 1: Role of this Policy in the Asset Management SystemAsset Management System Document lEnvironmentCustomersCorporate PlanAsset Management System LimitNetwork VisionThis documentAsset Management PolicyAsset Management StrategiesAsset Management Strategy & agementBusinessModel icies andproceduresNetwork Renewal &MaintenanceStrategyNetwork DevelopmentStrategyAsset ManagementEnabler StrategiesAsset ManagementCommittees Strategy & PlanAssetInformationStrategyAsset Management PlansTransmission AnnualPlanning ReportRenewal PlansNeeds Statement,Option Evaluation,Project ApprovalsCapital ProgramAsset ManagementEnabler PlansMaintenance PlansSystemOperations &Outage PlanMaintenanceScheduleThese core asset management system documents provide the asset management direction for theoptimal combination of lifecycle activities to be applied across TransGrid’s portfolio of network assets andasset systems in accordance with their criticality to the network, condition and performance. This topdown connective thread to the Corporate Plan via these documents is a key feature of the assetmanagement system – i.e. the clear “line of sight” from organisation direction and goals down to individualday-to-day activities.2.4. Asset Management System ActivitiesIn accordance with the guidance of the GFMAM and the IAM, the range of asset management systemactivities included within the scope of this document is as shown in Diagram 2.Asset Management PolicyRevision no: 6Page 4 of 10

Diagram 2: Scope of Asset Management System ActivitiesLegislationRegulatorsCorporate PlanAsset Management -networkAssetsAsset Management System LimitNetwork VisionContingency &Emergency PlansAsset Management PolicyPerformancemonitoring &analysisAsset Management Strategy & ObjectivesNetwork DevelopmentStrategyRenewal &Maintenance StrategyAsset Management Decision Analysis &Optimisation of Investment and Lifecycle CostsProject Documents &Program of WorkBuild /Acquire /CommissionOperateOutagemanagement &analysisIncident & Faultinvestigation &analysisNetworkAssetsPlan /DesignMaintainRenew /Replace /Reuse/DisposeRenewal Plans,Maintenance Plans &Maintenance SchedulePortfolioManagementOfficeDefectmanagement &analysisConditionmonitoring &assessmentsWork PerformedAsset data, asset knowledge & systems2.5. Asset Management System DefinitionsTable 1: DefinitionsItemDefinitionAsset ManagementSystematic and co-ordinated activities through which TransGrideffectively manages its assets and their associated performance, risksand expenditures over their lifecycle for the purpose of achieving itsCorporate PlanAsset Management SystemTransGrid’s asset management policy, asset management strategy,asset management objectives, asset management plans and theactivities, processes and organisational structures necessary for theirdevelopment, implementation and continual improvementAsset ManagerNetwork Planning and Performance business unit is responsible forstrategic asset management in TransGridAsset Management PolicyPrinciples and mandated requirements derived from and consistent withTransGrid’s Corporate Plan, providing a framework for the developmentand implementation of the asset management strategy and the settingAsset Management PolicyRevision no: 6Page 5 of 10

ItemDefinitionof the asset management objectivesAsset Management StrategyLong term optimised approach to management of the network assetsderived from and consistent with TransGrid’s Corporate Plan and theAsset Management PolicyThe asset management objectives are:specific and measurable outcomes or achievement required of theasset systems in order to implement the asset management policyand the asset management strategy; and/ora detailed and measurable level of performance or conditionrequired of the network assets; and/orspecific and measurable outcomes or achievement required of theasset management systemAsset ManagementObjectivesAsset Management PlansDocuments specifying activities, resources, responsibilities andtimescales for implementing the asset management strategy anddelivering the asset management objectives2.6. Physical AssetsThe assets that are included in the scope of the asset management system are those physical networkassets comprising or relating to the provision of electricity transmission network services. The classes ofassets that are included in the asset management system are described in Table 2.Table 2: Physical Network AssetsPhysical NetworkAssetSubstationsDescriptionSubstation SecurityAssetsPower and auxiliary transformers, circuit breakers,disconnectors, instrument transformers, ancillary plant,reactive plant, infrastructure and buildings, roads, drainage,fences, oil containment systems and buffer zones.Steel tower, steel pole, wood pole and concrete pole lines,together with their associated easements and access tracks.High voltage and pilot cables.Protection schemes, fault and disturbance recorders; PRIM.Revenue, check and statistical metering installations; qualityof supply monitors; PRIM.Optical fibre network, Microwave and VHF radio systems,repeater sites, PLC systems, operational telephone network,communication towers, network management system,STRIDE, and buildings, roads, drainage, fences, oilcontainment systems and buffer zones.Substation control systems, SCADA, PRIM, source content,SAS online configuration tools and associated substationcomputer systemsSecurity fencing, access systems, movement-activatedlighting, monitoring and surveillance systems.Asset information andThis covers the asset and system information required to beTransmission LinesUnderground CablesProtectionMeteringCommunicationsControl SystemsAsset Management PolicyRevision no: 6Page 6 of 10

Physical NetworkAssetrelated dataGraphical InformationSystemDescriptioncaptured, recorded and maintained for the electricitytransmission network, such as asset and equipment registers,condition data, protection databases, EDMS, outage and faultdata, metering data, maintenance standard tasks, workschedules and resource plansTAMIS, asset information, easement information, environmentinformation, property owner informationThe asset management system is focussed primarily on the management of the physical network assetsas listed above. Other asset types (e.g. financial assets, information assets, human assets) are onlyconsidered in so far as they affect the optimal management of the physical network assets.Those financial assets, information assets, and human assets that are of interest to the Asset Managerare those where there is a significant interdependency to the optimal management of the physicalnetwork assets. The Asset Manager has a vital interest in ensuring that these assets are appropriatelymanaged to deliver information and services to meet the needs of the Asset Manager. Accordingly, theAsset Manager has established appropriate mechanisms to ensure the effective management anddelivery of these financial assets, information assets, and human assets services across the interfaces tothe physical network assets.Further details of the relevant TransGrid network asset base within scope of the asset managementsystem, including the interface to the financial assets, information assets, and human assets, can befound in the Asset Management System Description document.2.7. Management of Assets outside of the Asset Management SystemWhilst this policy focuses on physical network assets , the Asset Management Principles and Policy inthis document are considered good practise for all TransGrid non-network assets outside the definedAsset Management System. The Asset Management Policy will inform the approach to the developmentof relevant strategies and plans for these assets.Asset Management PolicyRevision no: 6Page 7 of 10