power people > TransGrid annual reporT 2009 meeting stakeholder + community expectations reliable...

TransGridannual reporT 2009

power people

successful business

World-class electricity transmission

socially responsible

high level expertise

efficient, safe, reliable

contents > TransGrid annual reporT 2009

meeting stakeholder + community expectations

reliable poWer supply

strong technical excellence

training future leaders

planning for the future

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 2009

dear shareholders,

We have pleasure in submitting to you the TransGrid annual report 2009 for presentation to parliament. The annual report includes the income statement for the year ended 30 June 2009 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 new south Wales Treasury.

Yours sincerely

Mr Bruce Foy Mr Kevin Murray Chairman Managing director

TransGridannualreporT2009>Contents 1

2 AbouttrAnsGrid

8 HiGHliGHtsAndCHAllenGes

16 CHAirmAn’sAndmAnAGinGdireCtor’sreview

18 PlAnninGAFuturenetwork

23 buildinGsustAinAble,world-ClAssinFrAstruCture

30 drivinGCHAnGetHrouGHinnovAtion

33 mAkinGenvironmentAndCommunityAPriority

36 tAPPinGintoourCommunity

40 PromotinGourPeoPle’sCAPAbilities

53 CorPorAteGovernAnCe

71 2008/09FinAnCiAls

104index

106GlossAry

riGHtSophie Dowling, Graduate Engineer

CoverDaniel Burn, Graduate Engineer

conTenTs

2 AbouttrAnsGrid>TransGridannualreporT2009

meetinGstAkeHolder+CommunityexPeCtAtions

reliAblePowersuPPly

stronGteCHniCAlexCellenCe

trAininGFutureleAders

PlAnninGFortHeFuture

abouTTransGridourProFile

TransGridistheowner,operatorandmanagerofoneofthelargesthighvoltagetransmissionnetworksinaustralia,connectinggenerators,distributorsandmajorendusersinnewsouthWales.

ourpeopleplayacriticalroleinmaintainingourstrongtechnicalexcellence,ensuringthatwemeetstakeholderandcommunityexpectationsforareliablepowersupply.

toPriGHtMichael Stemmer, Tradesperson

toPleFtCharles Hitchen, Graduate Engineer

TransGridannualreporT2009>AbouttrAnsGrid 3

TransGrid’snetworkisinterconnectedtoQueenslandandVictoria,providingarobustelectricitysystemthatfacilitatesinterstateenergytrading.ThensWhighvoltagetransmissionnetworkisthehubofthenationalelectricityMarket,servingthelargeststateinthemarket.

TransGrid’sshareholder,thensWGovernment,hasasetofobjectiveswhichincludeanexpectationthatTransGridfulfilsitsroleintheplanning,developmentandmanagementofthehighvoltagenetwork.

TransGridisacommerciallyfocusedorganisationdeliveringreliableelectricitytransmissionservices.ThelargemajorityofTransGrid’srevenueisdeterminedbytheaustralianenergyregulator(aer).

TransGrid’sboardandmanagementsupportanenvironmentthatencouragesaccountabilityamongstallemployeestodeliveraservicethatisinthebestinterestsofshareholders,thecommunityandourstakeholders.

trAnsGrid’snetwork

TransMissionlineandsubsTaTionsTrucTures

FACtories

businesses

Homes

eleCtriCitysuPPliers

(enerGyausTralia,inTeGralenerGy,counTryenerGy,

acTeWaGl)

GenerAtinGsourCes

riGHtGavin Wood, Substations Grid Officer


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

Raleigh

Capital Wind Farm









500kV Substations

330kV Substations

220kV Substations

132kV Substations

ournetwork

TransGridannualreporT2009>AbouttrAnsGrid 5









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

12,445kmHiGHVolTaGeoVerHeadTransMissionlines+underGroundcablinG

85subsTaTions+sWiTcHinGsTaTions

65connecTionpoinTsToGeneraTorsacrossTHesTaTe

354disTribuToranddirecTcusToMerconnecTionpoinTs

6inTerconnecTorsToVicToria+Queensland’sTransMissionneTWorks

ournetworkTransGrid’snetworkismadeupof:

> 12,445kilometresofhigh-voltageoverheadtransmissionlineandundergroundcableoperatingatvoltagesupto500kV.

> 85substationsandswitchingstations.> 65connectionpointstogenerators

acrossthestate.> 354distributoranddirectcustomer

connectionpoints.> 6interconnectorstoVictoriaand

Queensland’stransmissionnetwork.

TheenergydeliveredviaTransGrid’snetworkisusedbymorethanthreemillionhouseholdsandbusinessesinnsWandtheacT,aswellasusersinotherstates.

interconnectionswithotherstatesgivecustomersaccesstoimportedpowerduringperiodsofhighdemand,whichhelpstopromotemarketbenefitsthroughcompetitivepricing.

TransGrid’sheadofficeisbasedinsydney’scbdandweoperateatvarioussitesaroundnsW,includingHorsleypark,orange,WaggaWagga,yass,Tamworthandnewcastle.


ourCustomersTransGridplans,developsandmanagesthenetworktoensuretheservicesourcustomersexpectwillcontinuewellintothefuture.TransGrid’scustomersinclude:

> Thedistributionnetworkserviceproviders(dnsp’s)thatdistributepowertothemajorityofthepeopleofnsWandtheacT(actewaGl,countryenergy,energyaustraliaandintegralenergy).

> businessesthatgenerateelectricity(deltaelectricity,eraringenergy,MacquarieGeneration,snowyHydrolimited,originenergy).

> largeindustrialconsumersofelectricitythataredirectlyconnectedtoTransGrid’shighvoltagenetwork.

> businessesconnectedthroughinter-regionalinterconnectors.

> potentialnewcustomers,whohaveapproachedTransGridandhavemadeanapplicationtoconnecttoournetwork.

ourstAkeHoldersTransGridengagesawiderangeofstakeholdersinthedeliveryofitsmulti-billiondollarcapitalprogram.Thesestakeholdersincludeshareholdingministers,theaustralianenergyMarketcommission(aeMc),theaer,majorcustomers,media,thecommunity,governmentdepartments,otherTransmissionnetworkserviceprovidersandothernationalelectricityMarketparticipants.

TransGridappreciatesthatthedevelopmentofrelationshipswithourstakeholdersisanessentialactivitythatenablesboththeorganisationanditsstakeholderstoachievecommongoals.TransGrid’ssponsorshipprogramsrecogniseandreflectcommunityvaluesandsupportsustainablecommunitydevelopment.

TransGridunderstandstheimportanceofcommunicatingwithstakeholdersinawaythatinformsthemaboutourbusiness.

ourPeoPleTheachievementofTransGrid’sobjectivesandgoalsdependtoalargeextentonthecalibreofourpeople.TransGridcurrentlyemploysalmost1000employees,whoformahighlyskilledteamundertakingavarietyofprofessional,technical,tradeandadministrativeroles.ourpeoplehaveplayedavitalroleininitiatingandadaptingtotechnological,structuralandprocesschangessinceTransGrid’sformation.

TransGridpromotesaworkplacethatrewardsachievement,encouragescommitmentandpromotesdiversity,whichempowersourpeopletoachieveexcellence.Wearecommittedtolife-longlearningandthepursuitofdevelopmentopportunitieswhichattractandretainthehighestqualitypeople.

TransGridpromotesaworkplacethatrewardsachievement,encouragescommitmentandpromotesdiversity,whichempowersourpeopletoachieveexcellence.

Above (clockwise from top left)

Jeffree Cairns, Technical Support Engineer

Darren Ngo, Managing Director’s Scholarship holder

Sophie Dowling, Graduate Engineer

Kevin Murray, Managing Director

TransGridannualreporT2009> AbouttrAnsGrid 7

ourdirection

TransGrid’sdirectionisdefinedinitscorporateplan.ThisplanbuildsonTransGrid’sstrategicplanningframeworkandcontributestomeetingourlongtermandshorttermobjectives.TransGrid’sobjectivesreflectourcommitmentinensuringasafe,reliableandefficientelectricitytransmissionnetwork.Theyarelinkedtobusinessunitandgroupobjectivesaswellasindividualperformanceagreementssothatallemployeescanassesstheircontributiontoachievingtheobjectives.

TransGrid’sstrategiesarebasedontheknowledge,skillsandsystemsthatouremployeesneedtodelivervaluetoourcustomers.

ourvAluesourreputationdependsonthedecisionsmadeandtheactionstakenbypeopleeachday.ourvaluesinfluenceourdecisionsandhowTransGridconductsbusiness.Withoutcommitmenttoourvalues,wecannotachieveourvisionandmission.

Honesty and Integrity– To be truthful and consistent in all our dealings.

Trust and Respect– To recognise and have confidence in the ability of our colleagues, value their contributions and opinions, and accept the differences, as well as the similarities of people.

Open Communication– To share information in an open and transparent manner.

Professionalism– To undertake our tasks diligently, and to address competently the difficult as well as the ordinary issues that we face.

Fairness and Equity– To undertake our duties without fear or favour, and make decisions with impartiality and sensitivity.

Consideration– To treat people with understanding and consider their viewpoints when making decisions.

ourobjeCtives> Tobeasuccessful businessandto

operateatleastasefficientlyasanycomparablebusinesses.

> Toexhibitasenseofsocial responsibilitybyhavingregardfortheinterestsofthecommunity.

> Toprotecttheenvironment.> Toexhibitasenseofresponsibility

towardsregional development.> Tooperateefficient, safe and reliable

facilitiesforthetransmissionofelectricityandotherformsofenergy.

> Topromote effective accesstoourelectricitytransmissionfacilitiesbypotentialcustomers.

ourvisionToberecoGnisedasaWorld-classelecTriciTyTransMissioncoMpany.

ourmissionToproVidesafe,reliableandefficienTTransMissionserVicesandTobecoMMerciallysuccessful.

Above (left to right) John McCall, Northern Region Project Manager, and Michael Stemmer, Tradesperson.

8 HiGHliGHtsAndCHAllenGes>annualreporT2009

HiGHliGHTsandcHallenGes

deliVeredarecord

$217.4moperaTinGprofiT

GeneraTed

$652.8minreVenue

acHieVedaTransMissionneTWorkreliabiliTyexceedinG

99.999%acHieVed

97.2%ofrouTineMainTenance

acHieVeda

PositiveinCentivesCHemeouTcoMe,basedonTarGeTsseTbyourreGulaTor

iMpleMenTediniTiaTiVesTodeliVerreal

oPerAtionAleFFiCienCyiMproVeMenTs

ManaGedTHeouTcoMesofTHereVenuereseTprocessandseTupa

revenueresetimProvementcoMMiTTee

forMedTHe

CAPitAlProGrAmdeliveryiMproVeMenTcoMMiTTee

connecTed

3newGenerAtinGstAtionsToTransGrid’sneTWork

highlights2008/09

TransGridannualreporT2009>HiGHliGHtsAndCHAllenGes 9

deliveredmoretHAn60MajorcapiTalprojecTs

coMpleTedMajorcoMponenTsofTHe

western500kvProjeCtincludinGTHecoMpleTionofbaysWaTerandMTpipersubsTaTionsandproGressionofbannabyandWollarsubsTaTions

reduCedTHeseVeriTyofoccupaTionalinjuries

by35%

deVelopedandlauncHeda

ClimAteCHAnGestrAteGy

conTinuedTHeiMpleMenTaTionof

leAdersHiPdeveloPmentProGrAms

inCreAsedAPPrentiCenumbersfroM57To63

launcHedTHe

younGProFessionAlsProGrAm

inCreAsedGrAduAtenumbersfroM46To57

10 HiGHliGHtsAndCHAllenGes>TransGridannualreporT2009

results2008/09

05

06

07

08

09

451.2

478.5

506.7

573.0

652.8

inCome($million)

05

06

07

08

09

138.3

158.6

218.2

355.0

619.9

CAPitAlexPenditure($million)

2008/09ACtuAl sCitArGet

earningsbeforeinterestandTax($million) 320.5 318.1

operatingprofitbeforeTax($million) 217.4 204.5

dividend($million) 120.2 114.2

returnonassets 6.8% 7.1%

returnonequity 8.0% 7.8%

2008/09

income($million) 652.8

assetbase($million) 5,170.9

interestcover(times) 3.0

Gearingratio(%) 50.0

keyCommerCiAlPerFormAnCeindiCAtors

FinAnCiAlPerFormAnCe

incoMe

$652.8m$79.8Millionincrease

capiTalexpendiTure

$619.9m$264.9Millionincrease


05

06

07

08

09

4.95

5.39

5.78

7.67

8.04

returnonequity(%)*

05

06

07

08

09

5.80

5.81

6.27

7.13

6.82

returnonAssets(%)**

reTurnoneQuiTy

8.04%0.37%increase

reTurnonasseTs

6.82%0.31%decrease

*returnonequitymeasuresacompany’sefficiencyinearningprofitsonbehalfofitsshareholders.itiscalculatedtakingintoconsiderationpost-taxprofit.

**returnonassetsmeasurestheefficiencywithwhichanentityusesitsassetstoproduceprofits.itiscalculatedtakingintoconsiderationnetborrowingcosts.

The2008/09yearhasbeenanotherverysuccessfulyearforTransGrid.Wehavemetorexceededallourobjectives.

AboveriGHt (clockwise from top left)

Ralph Meeks, Engineering Officer

David Fayyad, Corporate Relations Manager

Peter Clarke, Linesworker

Jayson Patrick, Professional Officer


05

06

07

08

09

0.15

0.68

1.19

0.37

0.42

networkreliAbility(systemminuteslost)***

05

06

07

08

09

99.59

99.47

99.44

98.54

98.44 **

networkAvAilAbility(%)*

98.44%neTWorkaVailabiliTy

neTWorkreliabiliTy

0.42sysTeMMinuTeslosT

networkPerFormAnCe

*cumulativecircuitavailabilityasapercentagebasedonTransGridownedtransmissionlinesratedat132kVandaboveforplanned,forcedandemergencyoutages.

**availabilityhasbeenimpactedbyoutagesnecessarytoimplementthecapitalworksprogram.

***Historicalsystemreliabilityinsystemminutes.includessupplyinterruptionscausedbyTransGridonequipmentitowns.

results2008/09

oPPositeAbove (clockwise from top left)

James Bradley, Apprentice

Jenny Seage, Property Asset Manager

Daniel Bremner, Electrical Fitter

Tony Pinchen, Communication and Control Maintenance Manager


05

06

07

08

09

2.1

3.7

1.6

3.7

3.5

sAFety(losttimeinjuryFrequencyrate)*

3.5losTTiMeinjuryfreQuencyraTe

PeoPle

CAteGorydesCriPtion 2009 2008 2007 2006 2005

administrativeofficers 150 151 162 158 165

apprentices 63 57 54 52 42

engineeringofficers 269 254 232 233 225

lineworkers 33 38 33 60 64

operators 22 24 26 27 30

professionalofficers 227 212 174 173 175

powerWorkers 44 49 52 54 59

seniorcontractofficers 90 91 94 101 106

Teamleaders–network 17 19 20 21 22

Tradespersons 76 73 95 64 65

Total 991 968 942 943 953

**staffnumbersdonotincludeindustrialworkexperiencestudentsandscholars.

stAFFnumbers–stAFFbyCAteGory30june2009**

TransGrid’sfocusonhealthandsafetyhasalwaysbeenparamountandweworktowardszeroinjuries,occupationalincidentsandillnesses.

* lostTimeinjury =frequencyrate

TotalnumberoflostTimeaccidentsfortheyearx1,000,000

averagenumberoffulltimeequivalentemployeesx2,000hours


totalstaff P/tstaff equiv.F/tofP/t equiv.F/tstaff

administrativeofficers 150 20 12.38 142.38

apprentices 63 0 0 63

engineeringofficers 269 2 0.86 267.86

lineworkers 33 0 0 33

operators 22 0 0 22

powerWorkers 44 0 0 44

professionalofficers 227 5 3.65 225.65

seniorcontractofficers 90 0 0 90

Teamleaders–network 17 0 0 17

Tradespersons 76 1 0.79 75.79

Total 991 28 17.68 980.68

stAFFnumbers–ComPArisonoFstAFFbyCAteGory30june2009

PeoPle

Categorydescription no.ofemployees

females 146

Males 845

Total 991

*staffnumbersdonotincludeindustrialworkexperiencestudentsandscholars.

stAFFnumbersbyGender30june2009*

Categorydescription no.ofemployees

females 8

Males 82

Total 90

seniorContrACtstAFFbyGender30june2009

environment

Classification low medium High total reportable

numbers 16 7 3 26 3

**in2008/09therewere26environmentalincidentsreportedinTransGrid’sincidentnotificationsystem.Threeoftheseincidentswereofasignificancelevelthatrequirednotificationtoaregulator.allwereaddressedpromptlyandresolved.during2008/09therewerenoprosecutionsbroughtagainstTransGridunderanyenvironmentalstatutes.

environmentAlinCidentnotiFiCAtion2008/09**

results2008/09


challenges2009/10>Worktowardsourgoalofzerooccupationalincidentsandillnesses.

>Maintainhighlevelsofreliabilityandavailabilityasweembarkonacapitalworksprogramwhichhasincreasedfrom$1.4billioninthe2004to2009regulatoryperiodto$2.4billioninthe2009to2014regulatoryperiod.

>Maintainstrongfinancialperformancewiththechallengeofagrowingassetbase.

>implementinitiativestofurtherimproveoperatingefficienciesandensureweexceedthenetworkperformancetargetssetbyourregulator.

>incorporatelessonslearnedfromtherevenueresetprocessintothebusiness.

>proactivelymanageTransGrid’simageandreputationtoenhancecustomerandstakeholderrelationships.

>activelymanagetheimpactsofclimatechangeonourbusiness.

>adoptamorestrategicapproachtobuildinglongterm,cooperativepartnershipswithlandownersandcommunities.

>implementbestpracticehumanresourcesinitiativestoassistintheattraction,retentionanddevelopmentoftalentedandskilledemployees.

AboveDavid Robinson, Tradesperson

16 CHAirmAn+mAnAGinGdireCtor’sreview>TransGridannualreporT2009

The2008/09financialyearhasbeenanotherverysuccessfulyearforTransGrid.Wehavemetorexceededallourobjectivesinayearinwhichwehavealsohadthechallengeofdeliveringarecordcapitalworksprogramandpresentingadetailedandexhaustiverevenuesubmissiontotheaerfortheperiod2009to2014.

Wearepleasedtoreportthatwehavecontinuedtoprovideasafe,secureandreliablenetworkservicetoconsumersinnsW.ThisincludedmeetingarecordnsWpeakdemandof14274MWon28july2008andachievingareliabilityofsupplyof99.999percent.

improvingtheefficiencyofthebusinesshascontinuedtobeamajorfocusoftheorganisationanditispleasingtoreportarecordoperatingprofitbeforetaxof$217.4million.ThisresultwasachievedatthesametimeasTransGridwasbenchmarkedasaworldleaderintermsofcostandservicelevels.

Thelastyearwasbusierthannormalduetotheneedtosubmitarevenueproposaltotheaerfortheperiod2009to2014.Thiswasamajorone-offtaskontopofnormaloperationsandinvolveddetailedsubmissionsonoperatingandcapitalexpenditure,servicelevelsandratesofreturn.Thesesubmissionshavebeensubjecttoexhaustiveanalysisbytheregulatorandassociatedconsultants.nowthattheprocesshasbeenfinalised,TransGridispleasedtobeabletocommitwithcertaintytotheoperatingandcapitalexpenditurenecessarytomaintainareliablesupplyofelectricity.

deliveringtheincreasingcapitalworksprogramcontinuestobeamajorchallenge.Theprogramhassteadilygrownwiththeneedtoreplaceassetsbuiltinthe1960sand70scoupledwiththeneedtoaddadditionalcapacitytomeetreliabilitystandardsandmarketexpectations.TransGrid’scapitalworksprogramforthe2004to2009regulatoryperiodwas$1.4billionwith$590millionoccurringinthe2008/09financialyear.regulatoryapprovalhasbeengivenforarecordcapitalworksprogramof$2.4billionforthe2009to2014period.

ThereportingperiodsawthecompletionofanumberofmajorprojectsincludingthefirststageoftheWestern500kVprojectwhichinvolvesupgradingthebackboneofthensWgridfrom330kVto500kV.WealsocompletednewsubstationsatMacarthurandWagganorthandcommencedworkonnewsubstationsatTomago,WilliamsdaleandreplacementsubstationsatorangeandQueanbeyan.constructionhasalsocommencedonmajortransmissionlineprojectsincludingthenew330kVtransmissionlinefromWollartoWellingtonand132kVlinesbetweenportMacquarie,kempseyandcoffsHarbour.

AboveriGHtManaging Director, Mr Kevin Murray, and Chairman, Mr Bruce Foy.

CHAirmAn+mAnAGinGdireCtor’sreview

TransGridhasdeliveredonarecordinfrastructureprogramwhilstmeetingorexceedingallothercorporateobjectives.

review

TransGridannualreporT2009>CHAirmAn+mAnAGinGdireCtor’sreview 17

capacityupgradestomostotherpartsofnsWhavecommencedwithcommunityconsultationonanew330kVtransmissionlinkbetweendumaresqandlismoreandanew132kVlinkfromGleninnestoinverellinthenorthandfromManildratoparkesinthewest.a$105milliontransformerreplacementandaugmentationprogramatninemajorsubstationsisalsounderwayaspartofourongoingassetreplacementprogram.

WecontinuetomeetourobjectiveofimprovingrelationshipswithexistingandprospectivecustomerstofacilitatetheeffectiveoperationofthenationalelectricityMarket.Weassistedasignificantnumberofnewgeneratorproponentswiththeirconnectionoptions.Thisincludedtheconnectionofa660MWgasturbinestationaturanquintynearWagga,a600MWgasturbinestationatcolongraonthecentralcoastanda140MWwindfarmatbungendorenearcanberra.TransGridiscurrentlyprocessingmorethan30proposednewgeneratorconnectionsorupgrades,whichintotalconstituteapotentialofaround2500MWofadditionalcapacitythatcouldbeconnectedtothenetwork.

ofprimeimportancetoTransGridistheprotectionofourenvironment.TransGrid’senvironmentalstrategiesaretargetedatpreventingenvironmentalincidentsthroughtheidentificationandmanagementofenvironmentalrisks.TransGridhasaresponsibilitytomeetthecommunity’sneedforelectricitywhileminimisingtheenvironmentalimpactofworks.Weachievethisthroughactiveconsultationwithemployees,contractors,thecommunityandotherstakeholders.

Wehavetakenaproactiveapproachtoclimatechangewiththelaunchofourclimatechangestrategyinfebruary.Thestrategyfocusesonengagingemployeesandthecommunityregardingpotentialenvironmentalorculturalimpactsassociatedwithourworkstomaximiseresourceefficienciesandinsodoingreducetheimpactontheenvironment.

ourfocusonhealthandsafetyhasalwaysbeenparamountandweworktowardsourgoalofzeroinjuries,occupationalillnessesandincidents.althoughwehadsevenlosttimeinjuriesduringtheyear,itispleasingtoreportthatnoneoftheseresultedinlongtermabsences.ourlowlosttimeinjuryfrequencyrateof3.5isconsistentwithothernetworkbusinesses.inaddition,theseverityofinjuriesoverthepastyearhasfallenby35percentwithanaverageof7.7dayslostperinjury.

Withover600peopleworkinginthefieldtherehasbeenacontinuingfocusonmaintainingandimprovingthehealthandfitnessofourstaffthroughthefitforWorkprogramme.Wehavealsointroducedanewauditingprogramforourmajorconstructionprojectstofurtherimprovesafetyperformanceintheexecutionofourmajorcapitalworksprogram.

ThesuccessofTransGridlargelydependsonourpeople.oneofthekeyworkforcechallengesforTransGridisanageingworkforce.TransGridhasprogressivelyimplementedarangeofleadershipanddevelopmentprogramstoaddressthesechallengesandcontinuestoincreaseitsrecruitmentofgraduatesandapprentices.inparticular,theseniorleaders,futureleadersandyoungprofessionalsprogramshavebecomeavitalcomponentofourworkforceplanningstrategy.

ourworkforcehasgrownoverthelastyeartomeetthedemandsofourupcoming$2.4billioncapitalworksprogram.Wewelcomeallnewemployeesandatthesametimeweacknowledgethecommitmentandvaluedexperienceofourlong-servingemployeeswhocarryouttheirjobswithdedicationthatissecondtonone.ourpeoplecontinuetorisetothechallengeconfrontingthemthroughtheincreasingdemandsandexpectationsofourbusiness.

ThechallengesforTransGridoverthenextfewyearswillbetocontinuetoimprovetheefficiencyofourbusiness,deliverourincreasedcapitalworksprogramandmaintainourcurrenthighlevelsofsafetyandreliability.

ourthanksgototheboardandtheexecutiveleadershipteamfortheirabilitytodefineandleadthepursuitofcommonobjectives.althoughithasbeenachallengingyear,wecanlookbackpositivelyandbeproudofourachievements.

Mrbrucefoychairman

MrkevinMurrayManagingdirector

18 PlAnninGAFuturenetwork>TransGridannualreporT2008

planninGafuTureneTWorkourPlAnninGAPProACH

ThenewsouthWaleselectricitytransmissionnetworkhasbeenplannedanddevelopedbyTransGridforoverfiftyyears.TheexpertisegainedoverthishalfcenturyoftransmissiondeliveryenablesTransGridtotrulyclaimtobeaworld–classelectricitycompany.

AboveriGHtJim Coleman, Engineering Officer

oPPositePAGe (left to right) Projects Engineers Warick Schroder and Neil Mitchell with John McCall, Northern Region Project Manager.

TransGridannualreporT2009>PlAnninGAFuturenetwork 19

asindustrialdevelopmentandpopulationgrowthhavecontinuedtodriveupthedemandforelectricity,TransGridhascontinuedtodemonstratetheeffectivenessofitsforwardplanning.TransGriddoesthisbyassessingtheabilityofthenetworktomeetprojectedloadforecastsandplanstosatisfytheseemergingneeds.

ourplanningiscarriedoutoverbothashorttimeframe,fromonetofiveyears,andalsooveralongertermperiod,fromfiveto20years.shortertermplanningsupportscommitmentstonetworkdevelopmentswithrelativelyshortleadtimes.longertermplanningconsidersoptionsforfuturemajordevelopments.planningprocessesoverbothtimeframesensureseconomicallyefficientdevelopmentofthenetwork.

TransGridpreparesanannualplanningreporteachyear.TheannualplanningreportprovidesinformationtomarketparticipantsandinterestedpartiesonnsWenergydemandprojections;thenatureandlocationofemergingconstraintsinthensWnetwork;informationoncompleted,committedandplannedaugmentations;andproposednetworkdevelopmentsoverthenextfiveyears.ThisinformationallowsthemarkettoidentifypotentialdemandmanagementsolutionsandallowsTransGridtodevelopandimplementappropriateandtimelynetworksolutions.

TransGridalsopreparesafiveyearnetworkManagementplanwhichdescribesthemodelweusetomanageanddevelopitsassetsandtheassetmanagementstrategiesfornetworkenhancementandmaintenance.

inresponsetotheprojectedhighlevelofelectricityloadgrowth,TransGrid’splanninghasidentifiedtheneedforfutureaugmentationofthensWtransmissionnetwork.The2009to2014regulatoryperiodischaracterisedbysixmajorprojectswhichcollectivelyaccountforover50percentofthetotalexpenditureoftheexpected$2.4billioncapitalexpenditureprogram.Theseinclude:

> dumaresqtolismore330kVTransmissionline

> beaconsfieldWest330/132kVGasinsulatedswitchgear(Gis)substationrebuild

> HolroydGisandrookwoodroad330/132kVGissubstations

> Holroydtorookwoodroad330/132kVGiscables

> Tomago/stroud/TareeTransmissionlineprojects

> bannabytosouthcreek500kVTransmissionline.


risinGeleCtriCitydemAndnsWisaustralia’smostpopulousstate.peakenergydemandinnsWhasbeengrowingatafasterratethantheaveragedemandandthistrendhasresultedinanincreasingdemandforelectricalservicesacrossallsectorsoftheeconomy.inparticular,thedevelopmentsintheresidentialsectorandtheincreaseinbusinesscentreslocatedprimarilyinsydney,newcastleandWollongonghasrequiredincreasedtransmissioncapabilitytosupportthem.

on28july2008,TransGridrecordedapeakwinterdemandof14,274MW.Thiswasfollowedbyapeaksummerdemandof14,106MWon6february2009.

Tomeetthisincreasingdemand,TransGridisembarkingonalargecapitalworksprogramthatwillseea24percentincreaseinthevalueofitsassetsoverthenextregulatoryperiod.Thisisexpectedtoincludeabout1000kilometresofnewhighvoltagetransmissionlinesand13newsubstations.

althoughTransGrid’ssuccessinmanagingitsassetsisreflectedinitsreliabilityofover99.999percent,itwillbeimportantforTransGridtocontinuetoimproveitsassetmanagementandmaintenancetechniquesinordertoproducethebestresultsfromitschangingassetbase.

10000

11000

12000

13000

14000

15000

16000

17000

18000

1900010% POE Projection (MW)



Actual

2018

/19

2017

/18

2016

/17

2015

/16

2014

/15

2013

/14

2012

/13

2011

/12

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

10000

11000

12000

13000

14000

15000

16000

17000

18000




Actual

2019

/20

2018

/19

2017

/18

2016

/17

2015

/16

2014

/15

2013

/14

2012

/13

2011

/12

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

10000

11000

12000

13000

14000

15000

16000

17000

18000




Actual

2019

/20

2018

/19

2017

/18

2016

/17

2015

/16

2014

/15

2013

/14

2012

/13

2011

/12

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

Summer Peak Demand (2001/02 – 2018/19)

Winter Peak Demand (2001/02 – 2018/19)

sch

edul

edd

eman

d(M

W)

sch

edul

edd

eman

d(M

W)

TransGridannualreporT2009>PlAnninGAFuturenetwork 21

demAndmAnAGementinitiAtivesViabledemandmanagementinitiativesarealwaysconsideredasalternativestoaugmentationoftheelectricitytransmissionnetwork.TransGridplacesahighpriorityonidentifyingopportunitiestoreducedemandgrowth.

demandmanagementprojectsthatTransGridislikelytoimplementduringthe2009to2014regulatoryperiodinclude:

> anetworksupportprojectcombinedwithdevelopmentoftheelectricitysupplytothesydneycbdandinnermetropolitanarea.

> aprojectwiththestate’sdistributorsforthedevelopmentandimplementationofefficientdemandsideresponsesolutionsandresponsestorequestsforproposals(rfp)fornon-networkalternatives.

> provisionofreactivepowersupportfrompowerstationsforthemainsystemnetwork.

> implementationofasystemprotectionschemetoimprovethepowertransfercapabilitybetweensnowyandyass/canberra.

ContributinGtonAtionAleleCtriCitymArketdeveloPmentTheprimaryregulatoryreviewsimpactingTransGridduringtheyearincluded:

> Theaerreviewofregulatedcostofcapital(Wacc)parameters.

> furtherdevelopmentofthenationaltransmissionplanningarrangementsaroundthenationalTransmissionplanner(nTp)functionwithinthenewlycreatedaustralianenergyMarketoperator(aeMo).

> TheestablishmentoftheregulatoryinvestmentTest–Transmission(riT-T).

reviewsofsignificance,whichwilldependonfuturedecisionsfromtheMinisterialcouncilonenergy(Mce),includethefinalisationofanationalframeworkfor

transmissionreliabilitystandardsandchangestonationalelectricitymarketarrangements.

TheestablishmentofthenTpisaimedatimprovingthecoordinationoftransmissionplanningacrosstheneM.ThisinitiativeiscomplementedbytheestablishmentoftheriT-T,toreplacetheregulatoryTest.akeyobjectiveofthenewtestistoensurethatmarketbenefitsaremorefullyaccountedforwhenassessingtransmissionaugmentationoptions.TransGridiscommittedtoworkingwiththeotherneMtransmissionserviceproviders,andaeMo,toensurethatthereformobjectivesareachievedtothemaximumextentpossible.

duringtheyear,theaeMcdelivereditsreporttotheMcerecommendinganationalframeworkforestablishingandreviewingtransmissionreliabilityplanningstandards.TheframeworkiscrucialinensuringatransparentaccountabilityframeworkfortransmissioninvestmentdecisionsacrosstheneM.

TheMcealsoinitiatedareviewofneMarrangementstoensurethattheyarenotimpedingthedeliveryofclimatechangepolicies.TheaeMcproduceditssecondinterimreporton30june2009whichincludesproposalstoimproveprocessesforconnectingremoterenewableenergysourcestotransmissionnetworks,establishtransmissionchargesbetweenregions,andintroduceatransmissionchargeforgeneratorsreflectingthetransmissioncongestionassociatedwithdifferentlocations.

CustomerConneCtionsGenerationconnectionactivityhascontinuedtoincreaseduringtheyear.Thisincludedconnectionenquiries,processingofconnectionapplications,andtheconnectionofthreenewgeneratingstationstoTransGrid’snetworkduringtheyear.specifically,600MWofnewgasturbinegenerationwasestablishedat

colongraonthecentralcoast;morethan660MWofnewgasturbinegenerationwasestablishedaturanquintyinsouthWesternnsW;and140MWofwindgenerationcapacitywasconnectedatthecapitalWindfarmnearbungendore.

also,over400MWofgasfiredgenerationwasestablishedatTallawarrawithTransGridworkingcloselywithintegralenergyandaeMotoensuresuccessfulconnectiontothetransmissionnetwork.

Thetotalofaround1800MWofgeneratorconnectionsduringtheyear(includingTallawarra)issignificantinthatitisthefirstmajoradditionofnewgenerationcapacityinnsWsincetheearly1990s.

progresswasalsomadeonmajorloadexpansionsduringtheyear.notablytheVisypulpMillnearTumutisundergoinganexpansionandisexpectedtodrawsignificantadditionalloadearlyin2009/10.longertermsystemdevelopmentisalsobeingplannedtoprovideimprovedreliabilityfortheexpandedVisyoperation.followingthecompletionofanoptionsstudy,theotherloadexpansionisnowlikelytoconnecttothelocaldistributionnetworkserviceprovider.

FAirPriCinGTransGrid’sallowablerevenueisseteveryfiveyearsbytheaer.eachyear,TransGridadjustsitsrevenueforinflationandthensetsitstransmissionprices.TransGrid’spricesfor2008/09werepublishedinMay2008,asrequiredbythenationalelectricityrules.

fromtheseannualrevenues,TransGridcalculatesitstransmissionpricesinaccordancewiththemethodologydescribedintherules.

Therewasamoderate2.3percentincreasefor2008/09totheaverageretailcustomer,whichequatestoapproximately$2.80perhouseholdperyearinrealterms.

nsWisaustralia’smostpopulousstatewithpeakenergydemandinnsWgrowingatafasterratethantheaveragedemand.

riGHt (clockwise from top left)

Jye Thornton, Graduate Engineer

Jo-Anne Harrison, Manager/Reporting and Financial Systems

Kathryn Pate, Environmental Officer

Garrie Chubb, Manager/Network Planning


inProFile

ourfuturerevenueeveryfiveyears,TransGridsubmitsitsrevenuerequirementstotheaustralianenergyregulator(aer).TherevenueproposalseekssufficientfundsfromtheregulatortoallowTransGridtocontinuetodeliverworld-classnetworkreliability.on30april2009,theaerreleasedTransGrid’sfinalrevenueproposalforthe2009to2014regulatoryperiod.WearepleasedthattheaeracceptedthatTransGridisanefficientnetworkserviceproviderandapprovedthevastmajorityofourproposedcapitalexpenditureprogram.akeyaspectofthedecisionforTransGridhasbeenthesignificantreductionintheregulatedreturnonTransGrid’sassetbase.Thesignificantreductioninrevenueisaresultoftheglobalfinancialcrisiswhichhasseenadramaticreductioninthebondyieldsusedbytheaertodeterminetherateofreturn.

asaresultofourrevenueoutcome,TransGrid’stransmissionchargeswillincreasebysome2.3percentinrealterms,addingabout$2.80perannumtotheaverageresidentialcustomer’sbill.despitethis,weareproudofthefactthatthepeopleofnsWwillcontinuetoreceivethelowestpriceelectricitytransmissionserviceintheneM.

Thecoordinationoftherevenueresetwasasignificantundertakingthatrequiredbroadorganisationalinvolvement.adedicatedprojectteamwasresponsiblefortheoverallcoordinationofourproposalandmanagingtheongoingrelationshipwiththeaer.

Theprimarychallengehasbeenmanagingtherevenueresetprocessaspartofournormalbusinessprocesses.Toachievethis,therewaswideorganisationalinputfromallbusinessunitstoensurethelinkagebacktothebusiness.Weappreciatetheireffortandcommitmenttotheprocess.

Wearelookingattherevenueresetprocessasanopportunitytoimprovethewaywedothings.Tothisend,wehavesetupanimprovementcommitteetolookatthelessonslearnedandidentifyopportunitiesforbettermanagementofourprocessestoensurewecontinuetoprovidethebestpossibleelectricityservicetonsW.

Above (left to right)Members of the Revenue Reset Project: Raymond Chui, Meredith Sturman, David Trethewey, David Conroy, and Karman Fung.

TransGridannualreporT2009>buildinGsustAinAbleworld-ClAssinFrAstruCture 23

buildinGsusTainableWorld-classinfrasTrucTureTransGrid’smulti-billiondollarcapitalworksprogramisrequiredtoensureourtransmissionnetworkcontinuestodeliversafe,secureandreliableelectricity.TransGridalsohasamajoron-goingprogramofrefurbishmentandreplacementofageingassetstoensureefficientsupplytoallcustomers.

AboveriGHt (left to right)David Robinson, Tradesperson, and John McCall, Northern Region Projects Manager.

24 buildinGsustAinAbleworld-ClAssinFrAstruCture>TransGridannualreporT2009

Thecapitalworksprogramforthe2004to2009regulatoryperiodcomprisedmorethan120majorprojectswithatotalregulatedexpenditureofover$1.4billion.

duringthe2004to2009regulatoryperiodthenumberofactiveprojectsandtheannualexpenditureontheseprojectshasgrown,sothatin2008/09,thetotalannualcapitalprojectsexpenditurewas$590millionwithmorethan60projectsdelivered.

TheachievementofTransGrid’scapitalworkstargetsatteststotheskillsofourworkforceandcontractors.TransGrid’sstrategyforstronginternalgrowthsitsalongsidestrategiesofoursuppliersandcontractingpartnerstogrowtheircapabilitiesinthedeliveryofourcapitalworksprogram.

ThepastfiveyearshaveseenstronggrowthinTransGrid’sinternalandexternalprojectdeliverycapabilitiesandthesecapabilitiesformthebasefromwhichthisimportantcapitalprogramwillbedeliveredwithequalsuccess.

bestPrACtiCeAssetmAnAGementTransGridcontinuestoreviewandimproveitsassetmanagementandmaintenancetechniquesinordertoproducebestpracticeperformancefromourassets.

TransGrid’sassetmanagementandmaintenancestrategiesaredrivenbyournetworkManagementplan.ThisplanprovidesabasisforongoinganalysiswithinTransGridandforcontinualimprovementofthetransmissionsystem.

ariskmitigationapproachisusedinthedevelopmentofTransGrid’sassetmanagementstrategies.Thesestrategiesareevaluatedbyspecialistworkinggroupsandconsideraspectssuchasmaintenancecosts,expectedreliabilityperformanceandassetcapability.

TransGridhasawelldevelopedassetmanagementmodelwhichconsistsof:

> Theestablishmentofmaintenancepoliciesforeachtypeofassetclass.Theitemsinthemaintenanceplanareprioritisedtoensuretheirimpactonreliability,availability,safety,environmentalandeconomicfactorsareconsidered.

> planningandexecutingmaintenanceworkinaccordancewiththeWorksManagementsystemwithcoremaintenanceworkperformedbyhighlyskilledTransGridstaff.

> undertakingquarterlyassetperformancereviewswhichexaminethetrends,causesandimpactsofallforcedandemergencyoutagesofequipment.

> benchmarkingourassetmanagementandmaintenanceprocessesthroughtheinternationalTransmissionoperationsandMaintenance(iToMs)studyprogram.Thebenchmarkingiscarriedoutwithover25transmissionorganisationsworldwide.Themostrecentbenchmarkingstudy,iToMs2007,confirmsthesuccessofTransGrid’sassetmanagementstrategies,withTransGridwellpositionedinthe“bestperformer”quartile(lower-than-averagecostandabove-averagereliability).

overthe2009to2014regulatoryperiod,TransGridisexpectinga24percentincreaseinourmaintainableassets.TransGridisconfidentwewillmeetthischallengebycontinuingtotakeaproactiveapproachinassessingandmonitoringourassets.

Above Bannaby 500/330kV Substation


inProFile

energisingtheWestern500kVprojectTomeetincreasingdemandinthesydney,newcastleandWollongongareas,TransGridhasmovedfullsteamaheadwiththeWestern500kVproject.atavalueof$320million,itisthelargestprojecteverundertakenbyTransGridoneveryscale.

TheprojectfocusesonupgradingthewesternbackboneofthecorensWtransmissionnetworkfrom330kVto500kVtomaximisetheusefulcapacityofallthetransmissionlinesthatsupplythenewcastle,sydneyandWollongongloadcentres.TheWestern500kVprojectistheculminationofplanninganddevelopmentbyTransGridoverthepast30years.

TheWestern500kVprojectcomprisesthefollowingworks:

> constructionof500kVswitchyardsatbayswaterandMtpiper> constructionofnew500/330kVsubstationsatbannabyandWollar> upgrading330kVequipmentatWallerawang330kVswitchingstation.

2009representsamilestonewithbayswatersubstationbeingcompletedduringjanuaryandtheupratingofWallerawangandMtpiperswitchyardscompletedduringMarch.inaddition,thefirstofthetwolinesbetweenbayswaterandMtpiperpowerstationswasplacedinserviceat500kV.

Thesecondmilestonefortheprojectwasachievedinjune2009whenMacquarieGenerationcompletedinstallationofthe500kVgeneratortransformerswhichconnectedthefirstoftwounitstothe500kVsystem.

TheWestern500kVprojectisanimpressiveprojectfromadesign,planning,environmentalandstakeholderperspective.acriticalcomponentoftheprojectisthedesignandsupplyofatotalof21500/330kVtransformers,byToshibajapan.duringtheyear,18oftheseunitswereshippedfromjapantonewcastleandthenbyheavyhaulageroadtransporterstobayswater,Mtpiperandbannaby.Thelastthreeunits,forWollar,areduetowardstheendof2009.

significantinvestmentsweremadetocommunityinfrastructureduringtheconstructionoftheproject.forinstance,inbuildingbannabysubstation,TransGridinvested$1.5millionintobuildingaroadlinkingTaralgawiththenewTransGridsubstationatbannaby.

TransGridworkedinpartnershipwiththecouncilsandthecommunitybypresentingthebenefitsandimpactsoftheprojectstothem.Wewereactiveinfacilitatingdiscussionswithlandownersandkeepingstakeholdersinformedoftheprojectthroughissuingpressstatementsandbrochures.

during2009/10,TransGridwillenergisethesecondlinebetweenbayswaterandMtpiperat500kV,reestablishtheMtpipertoWallerawang330kVline,completeandcommissionbannabysubstationandcompleteandenergiseWollarsubstation.

TheWestern500kVprojecthasinvolvedhundredsofTransGridandcontractstaffallofwhomaretobecommendedforthesignificantprojectachievementstodate.

TheachievementofTransGrid’scapitalworkstargetsatteststotheskillsofourworkforce.

ThepastfiveyearshaveseenstronggrowthinTransGrid’sinternalandexternalprojectdeliverycapabilities.

leFt Peter French, Engineering Officer

riGHt (clockwise from top left)

Raymond Selmes, Engineering Officer

Clare Mannion, Board and Executive Support Manager

Mathew Gorton, Apprentice

Ian Harris, Senior Audit Manager


inProFile

newsubstationatMacarthurTransGridhasrecentlycompletedconstructionofanew$50millionsubstationatMacarthurtoreinforceelectricitysupplyintherapidlydevelopingsouthWestsydneyregion.Thenewsubstationwillprovidesydney’ssouthWestregionwithenoughpowertosupply100,000homesandbusinesses.Twostate-of-the-arttransformershavebeeninstalledandacustommaderoadwasbuiltofftheHumeHighwaytoensurethetransformersreachedthesite.

Theprojectinvolvedextensivecivilandlandscapingworks.Thecloseproximityofanumberofotherutilitiesintheareaplusthedifficultslopeofthesiterequiredinnovativedesignstoachieveaneffectiveoutcome.

Theprojectwassubjecttoextensivecommunityconsultation.acomprehensiveenvironmentalinvestigationwasmadebeforeconstructionbegan,whichtookintoaccounttheproximityofconstructiontotheMountannanbotanicGardens.Withthehelpofgardens’staffduringtheplanningprocess,TransGridestablishedalandscapeplanfortheareaaroundthesubstation.Thenativeflorahasprovidedanaturalhabitatforwildlife.

arangeofefficienttechniqueswereemployedintheproject,someofwhichincludedtheutilisationofaverycompactlayoutforthesubstationandthepaintingofhighersteelstructuresandthetransformersoundwallstoreducenoiseimpacts.

Thenewsubstationemployedover100localcontractorsduringitsconstructionandisabigpartofTransGrid’sannualcapitalworksprogram.

Macarthursubstationisoneofthemostmodernsubstation’sonTransGrid’snetworkwiththelatestadvancesinsafety,securityandenvironmentalprotection.

AboveMacarthur 330kV Substation Site

leFtMacarthur Substation Transformer


inCreAsedreliAbilityForCentrAlnswWollar to Wellington 330kV Transmission LineTostrengthenelectricitysupplytocentralnsW,TransGridisconstructinga117km,330kVtransmissionlinebetweenanewswitchingstationnearWollarandtheexistingWellington330/132kVsubstation.

extensivecommunityconsultationwasundertakenduringtheplanningstage.partoftheanalysisrequiredTransGridtoconsideralternativeprojects,suchaslocalgasturbinegenerators,priortoproceedingwiththepresentproject.TransGridworkedcloselywithstakeholdersthroughoutthenumerousconsultationsandsubmissionswhichwererequiredtosecureapprovalfortheproject.

numerousalternatealignmentswereconsideredforthetransmissionline.Thetransmissionlinecrossespropertythatisownedoroperatedbyseveraldifferentminingorganisations,allofwhichhadanimpactonthefinaldesignandlocationsadoptedforthetransmissionline.

aconstructionenvironmentalManagementplan(ceMp)wasimplementedforthecontractandanindependentenvironmentalManagementrepresentativeappointed.Theprojectincludedseveralfaunacorridorsandarequirementthatcompensatoryhabitatbeprovided.

Theestimatedcostoftheprojectis$90millionwithcompletionexpectedbynovember2009.

newwAGGAnortHsubstAtionduringjuly2009,TransGridcompletedconstructionofabrandnew$23millionsubstationatWagganorthtomeetincreasingelectricitydemandintheregion.

constructiononthesubstationcommencedin2008aftermorethanfiveyearsofdetailedplanningbyTransGridandcountryenergy.ThenewWagganorthsubstationwillbeWagga’sthirdbulksupplypointforelectricity,supplyingseveralofcountryenergy’sruralzonesubstationsandprovidingpowertoaround14,000residentialandbusinesscustomersintheWaggaWaggaregion.

ThenewsubstationwasbuilttoanacceleratedprogramandisvitaltoincreasingpowersupplytosupportthefuturegrowthanddevelopmentinnsW’slargestinlandcity.

Thesubstationsite,locatedadjacenttotheexistingindustrialarea,providedTransGridwiththeopportunitytobuildincloseproximitytobothTransGrid’sandcountryenergy’sexistingelectricitynetworkinfrastructure.

duringtheplanningandconstructionphasestherewasanemphasisonpreservingexistingflora,includingtreesthatwereplantedneartheconstructionareaasacarbonoffset.consistentwithotherTransGridlocations,thesitewillbelandscapedwithnativetreesandshrubs,whichhavebeenselectedtoincreasebio-diversityinthearea.

boostinGPowertosoutHernnswYass to Wagga 132kV Transmission LineduringMarch2008,TransGridcommencedconstructionontheyasstoWagga132kVtransmissionlinereconstructionprojecttomodernisetheexistingtransmissionlineasitreachedtheendofitsserviceablelife.

Theprojectincludesdismantlingtheexistingwoodpolelineandconstructinganewlineusingsingleconcretepoles.Thelineisapproximately150kmlong.

TransGridactivelyconsultedwithaffectedpropertyownersonthemethodsofrebuildingthelineandasaresultofthisconsultationtwoownersrequestedminordeviationstotheexistingalignment.areviewofenvironmentalfactorswasundertakenandbecausetherebuildofthelineisalongtheexistingalignment,nonewenvironmentalimpactswereintroduced.

constructionofthenewlineisexpectedtobecompletedbyearly2010.Theestimatedcostoftheprojectis$27million.

AboveleFtWollar to Wellington 330kV transmission line construction

AboveriGHtWagga North 132kV Substation


mid-nortHCoAstreCeivesPoweruPGrAdeKempsey to Port Macquarie 132kV Transmission LineThemid-northcoastisoneofnsWsfastestgrowingareas.

TransGridhascommencedconstructionofasecondsinglecircuit132kVlinebetweenkempseyandportMacquarietostrengthenpowersupplyintheregion.Theestimatedcostofthisprojectis$28million.

ThenewlinewillreplacetheexistingwoodpolelinebetweenkempseyandportMacquarie.Thenewlineisbeingbuiltwithconcretepoles,usingmodernmaterialsthatwillenableustobuildthemostcompactpowerlinepossiblewithintheexistingeasementarea.

Theextensiveworkundertakenindevelopingthefinalprojectsolutionpaidparticularattentiontotheenvironmentandcommunity.Thiswasevidentwhenweundertookthemorecomplextaskofrebuildingtheexistinglineratherthanestablishinganewgreenfieldroute.Thisdecisionresultedintheprojectreceivingsubstantialacceptancebytheexistinglandownersandcommunity.

TheprojectdrawsuponTransGrid’sextensiveprojectmanagementexpertise,withtheprojectteamhavingtoworkwithinsignificantoutageconstraintsandtackleproblemsarisingfromwetweatherandfloods.ThisrequiredTransGridtoinvestigatevarioustechniquessuchasspecialtrackedvehicleswiththeabilitytoworkonwetgroundwithminimalenvironmentalimpact.

Theprojectisexpectedtobecompletedin2010.

strenGtHeninGsuPPlytotHesoutHerntAblelAndsQueanbeyan 132kV Substationduringdecember2008,TransGridbeganworkonits$28millioninvestmentintothereconstructionofQueanbeyansubstation.

ThenewsubstationincorporatesthelatesttechnologytoensurethatthehighvoltageelectricitysupplytoQueanbeyan,canberra,easternacTandbraidwoodareascontinuestomeettheincreasingdemandintheregion.

Theoriginalsubstationwasbuiltin1957andhasprovidedreliablepowertoQueanbeyanandthesurroundingcommunityforover50years.ThisprojectisthefirstofanumberofmajorTransGridupgradesplannedforthesouthernTablelandsoverthenextfiveyears.

Themainobjectiveofthisprojectistorenewtheassetsatthesubstationwithmodernequivalents.Toachievethisobjective,thesubstationisbeingrebuiltonanewsite,adjacenttotheexistingsubstation.Thedesignofthesubstationisverycompactandwillincorporatethelatesttubulargantrystructuresinsteadofthemoreconventionalsteellatticetowers.

Theconstructionofthesubstationisdueforcompletionbyearly2010.

imProvinGreliAbilitytotHeCentrAlPlAinsreGionsManildra to Parkes 132kV Transmission LineTransGridisplanningtoconstructanew$30million132kVtransmissionlinebetweenManildraandparkes.Thetransmissionlinewillmeetincreasingpowerdemandsintheregion,directlybenefitingresidentsandbusinessesintheparkes,Manildra,forbesandcowraareas.

social,environmental,technicalandeconomicfactorswereallconsideredindeterminingthepreferredtransmissionlineroute,whichwasselectedinaugust2008.

environmentalconsultantshaverecentlycompletedadetailedenvironmentalassessment.Theseresultswerepresentedtothecommunityduringjuly2009andTransGridwasonhandtorespondtoanycommunityconcerns.TransGridhasbeenactiveinengagingthecommunitysincetheearlydaysoftheproject,seekingfeedbackandcommentthroughinformationsessionsandpublicnoticeseversinceprojectannouncement.TransGridhascontinuedtoholddiscussionswithpropertyownersthroughoutallphasesoftheproject.

Tominimisevisualimpact,thetransmissionlinewillbeconstructedwithsingleconcretepoleswithina45metrewideeasement.

constructionoftheManildratoparkestransmissionlineisduetocommenceinlate2009withcompletionduebyearly2011.


reinForCinGsuPPlytotHeorAnGeAreAOrange 132/66kV Substation Augmentationinordertomeettheincreasingdemandinorangeandsurroundingareas,TransGridisupgradingitsorange132/66kVsubstation.

Theupgradeisvaluedat$14millionandincludesthereplacementoftheexistingtransformerswithlargerunits.Thefirsttransformerhasbeeninstalledandinservicesincefebruary2009.

Toensurecarefulconsiderationoftheenvironmentandcommunity,areviewofenvironmentalfactorshasbeenpreparedandanenvironmentalManagementrepresentativehasbeenappointedtocheckthatallmitigationmeasuresarebeingeffectivelyappliedandthattheworkiscompliantwithenvironmentalrequirements.TheopportunityhasalsobeentakentobringtheenvironmentalcontrolsonthesitetoTransGrid’scurrentstandards.

betterPowersuPPlytotHeACtWilliamsdale 330/132kV SubstationTransGridandactewaGlareprovidingasecondindependentelectricitysupplytotheacTthroughtheconstructionofanewsubstationatWilliamsdale.

Theprojectinvolvestheconstructionofa330/132kVsubstationatWilliamsdaleandconvertingtwo132kVlinesto330kV,toforma330kVconnectionbetweencanberraandWilliamsdale.actewaGlwillconstructthe132kVlinesfromWilliamsdaletostrengthenitsdistributionintheacT.

extensiveinvestigationwasundertakenintositeselectionforthesubstation.specialisedconsultantswereengagedtoprovideanenvironmentalassessment.compensatoryhabitatshallbeprovidedadditionaltothemitigationmeasuresidentifiedintheenvironmentalassessment.Thesitehasalsobeenselectedbasedonleastvisibilityfromthenearestroads.ThesubstationdesignisthemostcompactarrangementeverdevelopedforabankofthreetransformersandaimstominimiseimpactontheyellowboxandredGumgrassybushland.

constructionofthesubstationisexpectedtobecompletedbydecember2010.ThetransmissionlineconversionandcanberrabayextensionworksareexpectedtobecompletedbyMarch2011withenergisationexpectedduringapril2011.

Theestimatedcostoftheprojectis$48million.

stAte-widetrAnsFormerrePlACementAndAuGmentAtionProjeCtTomeetgrowingelectricitydemandacrossnsW,TransGridisexecutinga$105milliontransformerreplacementandaugmentationprogramacrossninemajorsubstationsthroughoutthestate.

ageingtransformersarebeingreplacedbymoreefficientunits,existingtransformersarebeingaugmentedwithnewtransformersandsurroundingauxiliaryequipmentisbeingupgraded.

Thereplacementprogramisparticularlychallengingasworkhastobecarriedoutwithintheconstraintsofexistingoperationalsubstations,whileensuringtheelectricitysupplytotheareaismaintained.

TransGridisstrengtheningenvironmentalcontrolsoneachsiteandinstallingthelatest“lownoise”transformers.

Highlyimproved,standardtransformercompounddesignshavebeendevelopedtoexpeditesubstationdesignsandprovideflexibilitywiththeallocationoftransformerstothevarioussubstations.

TransGrid’sstrategyforstronginternalgrowthsitsalongsidestrategiesofoursuppliersandcontractingpartnerstogrowtheircapabilitiesinthedeliveryofourcapitalworksprogram.

AboveriGHt (clockwise from top left)

Blake Cook, Apprentice

Jemmie Ong, Graduate Accountant

John McCall, Northern Region Projects Manager

Michael Bradbury, Planning Systems Manager

30 drivinGCHAnGetHrouGHinnovAtion>TransGridannualreporT2009

driVinGcHanGeTHrouGHinnoVaTionTransGridiscommittedtoworkingsmarterandachievingoperationalexcellenceinallfacetsofourbusiness.Wehaveworkedhardtowardsmanagingexpenditureinaglobalenvironmentofrisinginputcosts.

AboveleFt (left to right) Steve Varelis, Senior Technology Analyst, Greta Metz, Information Communications Technology Project Manager, Barry Gifford, Senior Information Communications Technology Project Manager, and Natalie Lukic, Information Technology Asset Management Coordinator.

TransGridannualreporT2009>drivinGCHAnGetHrouGHinnovAtion 31

enHAnCinGorGAnisAtionAleFFiCienCiesTransGridhasworkedhardtowardsmanagingexpenditureinaglobalenvironmentofrisinginputcosts.Thishasbeenachievedthroughimplementingefficientbusinessstrategies,benchmarkingourperformanceagainstotherTransmissionnetworkserviceproviders(Tnsps)andimplementingarangeofimprovementstooptimiseourprocesses.ThishasresultedinTransGridexceedingtheservicestandardssetbytheaerandachievingoperatingexpenditureoutcomesbetterthanthetargetsset.

costreductioneffortshaveincludedtheintroductionofprocessimprovements.initiativesputinplacetoachievetheseefficienciesincludeareviewofthecontrolroomshiftarrangements,leadingtoareductionincosts,centralisationofsupportfunctionsandrationalisationoftheinformationtechnologyoutsourcingarrangements.

TransGridisexpectinga24percentincreaseinitsmaintainableassetbaseoverthe2009to2014regulatoryperiod.Thecostsassociatedwiththesenewassets,includingsubstantialmaintenancecosts,willnotbeabletobefullyabsorbedthroughefficiencyimprovementsastheywereinthepreviousregulatoryperiod.However,TransGridisconfidentthatitwillachieveatargetedlevelofoperatingexpenditureequivalenttobestpractiseamongotherTnspsinaustraliaoverthenextfiveyears.benchmarkingwithotherorganisationsindicatesthatourperformancewillbeamongthebestintheworld.

enHAnCinGCAPitAlProjeCtdeliveryTransGrid’sregulatedcapitalworksprogramforthe2009to2014regulatoryperiodwillbe$2.4billion,whichrepresentsalmostadoublingofthecapitalworksprogramfromthe2004to2009regulatoryperiod.inaddition,themixofprojectsmakingupthe2009to2014capitalprogramhaschanged.Tothisend,TransGridhasintroducedimprovedprocessestoensurethatthecapitalprogramcomestofruitioninthemostefficientmanner.

TransGridhascontinuedwiththeimplementationofitscapitalexpendituregovernanceframework,whichincludes;

> clearlydefineddecisiongatesforallprojectsandformationofanexecutive-levelcapitalWorkssteeringcommittee.

> establishmentofadesignandconstructprojectdeliverymodel.

> strategiestoaddressresourceshortagesincludinginitiativestoincreaseinternalresources;anincreaseintheuseofexternalresourcesinprojectdesignandspecialistservices;andtheuseofdesignandconstructprojectcontracting.

in2008/09,acapitalprogramdeliveryimprovementcommitteewasestablishedtoimplementimprovementsindeliveringtheincreasedcapitalprogramonasustainablebasis.

Threeimprovementinitiativeswereselectedforimmediateactioningandincluded:

> TheadoptionofasingleTransGrid-widecapitalprogramplanningandresourcingTool.

> TheidentificationoftheresourcingrequirementsacrossTransGridtodeliverthecapitalprogramoutto2014onasustainablebasis.

> Theimplementationofimprovedstrategiesforthedeliveryofthegrowingtechnicalservicesandsecondarysystemsworksprogramthroughto2014andbeyond.

benCHmArkinGourreliAbilityTransGrid’shighlevelofnetworkreliabilityperformancehasbeensustainedovermanyyears.

TransGridregularlyparticipatesinbenchmarkingexercisesinordertodriveimprovementstothebusiness.asaresultofthis,TransGridhasbeenidentifiedasaleadingperformerinternationallyonbothserviceandcostmeasures.

Themostrecentbenchmarkingstudy,iToMs2007,confirmsthisperformancewithTransGridwellpositionedinthe“bestperformer”quartile(lowerthanaveragecostandaboveaveragereliability).comparisonwiththeaverageresultfortheasiapacificregionshowsTransGrid’snetworkperformanceisabovetheregionalaverage,withcostssubstantiallylowerthanaverage.

TransGrid’sreliabilityandavailabilityisachievedasaresultofgoodplanningandappropriatemaintenancepractices.TransGridhasapolicyofachievingbetterthan95percentoftheprogrammedmaintenanceinthefinancialyearinwhichitfallsdue,withanyoutstandingmaintenancecompletedinthefirstthreemonthsofthenextperiod.

below New TransGrid Control Room

32 drivinGCHAnGetHrouGHinnovAtion>TransGridannualreporT2009

drivinGinFormAtionteCHnoloGyFurtHerTransGridhascontinuedtostrengthenitsservicedeliverycapability,throughenhancementstobusinesssolutions,hardwareplatforminnovationsanddeliveryofmajorcapitalprojects.someexamplesinclude:

> successfulimplementationofmajorapplicationsthatsupportthebusinessactivitiesofnetworkperformanceandoperationsandnetworkservicestomanageoutages,HVpreparation,restorationinstructionsandoperators’logs.

> achieveda50percenttargetfileserveranddatastoragevirtualisationlevel,toreducepowerandspaceconsumptionandfacilitatemorecost-efficientadministration.Theremainderoftheworkisplannedfor2009/10.

> installationofvideoconferencingequipmentforsydneycbdandsydneyWestlocationstoreducetravel,therebysavingstafftimeandtransportcosts.

> deliveryofmajorinfrastructureprojectstoconsolidateandreduceserversandpartialupgradeofthecorporatedatanetworktoreduceoperatingcostandimproveservice.

> implementationofVoip(Voiceoverinternetprotocol)foramorecosteffectiveandflexibletelephonyservice.TheserviceisplannedtoberolledouttoremainingTransGridlocationsduring2009/10.

mAinsAndeAsementmAnAGementsystem(mems)MainsandeasementstaffarenowabletoviewenvironmentalandlineinformationandrecordtheirworkinthefieldthroughthenewMainsandeasementManagementsystem(MeMs).

ThenewsystemextractsinformationfromtheWorksManagementsystem(ellipse)andtheGeographicinformationsystem(TaMis)andpresentsittostaffonaportabletabletpc.itprovidesfieldstaffwiththetransmissionlineandenvironmentalinformationrequiredtoundertakeworkinanenvironmentallyconsciousmanner.

TheMeMsapplicationenablesemployeestohaveeasement,equipmentandpropertyowner/occupierinformationavailabletorecordinspectionsanddefects,aswellashavecontactwithpropertyownerswhileinthefield.

TheMeMssolutionreplacesanumberoflocalsystemsthatarecurrentlyusedwithinTransGridandisnowtheprimaryinterfacetothecorporateinformationsystemsformainsandeasementstaff.

TheMeMssystemhaslargelybeendevelopedwithin2008/09withfinalusertrainingandrolloutplannedforaugust2009.

ArtemistooldrivesCAPitAlworkseFFiCienCyTohelpdelivertheupcomingcapitalprogram,TransGridhasimplementedaprogrammanagementsystembuildingontheexistingprojectmanagementtool,artemis.TransGridhaswidenedtheuseofartemisthroughouttheorganisationtoprovideaviewofthewholeofTransGrid’sworkprogramsothatlongertermforecastsareavailable.

Themainbenefitofusinganintegratedsystemistobeabletoviewallprojectstogetherandseehowtheyinteract.furtherbenefitsareavailablewiththeday-to-dayallocationofskilledresourcesatthecriticalcommissioningstageofprojects.asthesystemdevelops,otherpartsofthebusinesswillseebenefitsinforecastingtheirworkloadandidentifyingwhenkeybusinessinformationwillbecomeavailablefromprojects.

Todate,theprojecthasstandardisedtheuseofartemiswithinthecapitalprogramdeliveryandnetworkbusinessunits,allowingthedevelopmentofusageacrossthebusiness.

Thesystemnowcontainsover80livecapitalprojects.

enHAnCementstotHeHiGHvoltAGePrePArAtionAndrestorAtioninstruCtionsAPPliCAtion(HvPri)TransGrid’soperationsstaffareexploringthenewfeaturesprovidedbytherecentenhancementstotheHVpriapplication.

akeyfeature,whichwascommissionedinaugust2009,isawizardwhichgeneratesHighVoltagepreparationandrestorationinstructions(switchinginstructions)forusebysystemoperatorsandfieldstaff.Throughinnovativetechniques,theHVpriwizardanalysestheswitchingrequirements,andwithafewuserinputs,generatesinstructionstoperformtheoutage.

efficienciesinbusinessprocesseshavebeenachievedwiththedirectprinting/faxingofinstructionstoremotesites,coupledwiththeabilitytoalterinstructionswithoutimpedingtheirexecution.

intotal,morethan40enhancementsweremadetotheoriginalapplication,someofwhichincludeelectronicpinningofhighvoltageoperatingdiagrams,improvementstosearchfunctionalityandanincreasednumberoftoolstoassistincodinginstructionsandoverallincreasedworkflowefficiency.

inProFile

newe-recruitmentTechnologyduringjuly2009,TransGridrolledoutabrandnewelectronicrecruitmentsystemtoallemployees.ThenewsystemincreasestheefficiencyofTransGrid’srecruitmentprocessallowingtransactionstobeperformedinrealtime,reducingthecostoftheprocess,theamountofpaperusedandthetimetakentoidentifyappropriatecandidates.ThesystemprovidesTransGridwitha24/7methodofcollectingresumesandactsasacentralisedstoragepointforallcandidateinformation.

TransGridhassuccessfullyusedthesystemforseverallargescalecampaignsincludingapprentices,graduateengineersandaccountants.anyexternalapplicantswhohavejoinedTransGridoverthelastsixmonthshavebeenapplyingviaerecruitment.

Theerecruitmentsystemhasprovedtobeveryefficient,savingtimeandeffortinvolvedintherecruitmentprocess,particularlyforhighvolumerecruitmentcampaigns.

comprehensivetrainingwasprovidedtoallhiringmanagersandstafftoensureaneasytransitiontothenewsystem.

TransGridannualreporT2009>mAkinGenvironmentAndCommunityAPriority 33

MakinGenVironMenTandcoMMuniTyaprioriTyourenvironmentAlCommitment

ofprimeimportancetoTransGridistheprotectionoftheenvironment.TransGrid’senvironmentalstrategiesaretargetedatpreventingenvironmentalincidentsandshiftingourenvironmentalculturefromonethatfocusesonlegislativecompliancetoonethatintegratesenvironmentalmanagementintoeverydaybusinessactivities.

34 mAkinGenvironmentAndCommunityAPriority>TransGridannualreporT2009

TransGridhascontinuedtoimprovetheefficiencyofourenvironmentalManagementsystem.during2008/09,TransGridsuccessfullyretainedouriso14001accreditedenvironmentalManagementsystemfollowingasurveillanceauditbyexternalauditors.aworkshopwasheldwithmanagement,technicalexpertsandstafftoidentifythesignificantenvironmentalrisksfacedbytheorganisation.

someoftheenhancementsmadetoTransGrid’senvironmentalManagementsystemincludethefollowing:

> TransGrid’senvironmentalpolicywasrevised.

> TransGrid’senvironmentalrulesformaintenanceworkoneasementsandinTransGridpremisescontinuedtobeimproved.TransGriddesignedanddeliveredtwocomputer-basedinteractivesystemsforthetraining,assessmentandauthorisationofstaffandcontractorsunderTransGrid’senvironmentalrulesforeasements.Theseonlineprogramsaredesignedtodevelop,train,maintain,andassesstheenvironmentalcompetenciesofstaffandcontractorsinamoreefficient,accurate,costeffectiveandreliableway.TransGrid’senvironmentalrulesareuniqueintheelectricityindustryandprovideahighlevelofassurancethatappropriateenvironmentalcontrolsareimplemented.

> TransGridhasenhancedtheenvironmentalrulesbyaddingthemanagementofhotworks.Thiswasundertakentoensureamoreconsistentapproachtotheidentificationofbushfireandsafetyrisksassociatedwithhotworks.

> aprocedureforoutliningtheresponsibilitiesforGreenhouseGasreportingdatacollectionforTransGridhasalsobeendevelopedtohelpTransGridmeetitsnationalGreenhouseandenergyreportingstandardsreportingrequirements.

> integratedenvironmentalmanagementconsiderationswereintegratedintoallaspectsofmanagingourassetsincludingtheirplanning,design,siting,construction,maintenance,operations,decommissioninganddisposal.

ClimAteCHAnGestrAteGyisHereTransGridhastakenaproactiveapproachtothemanagementofclimatechange.duringfebruary2009,TransGriddevelopedaclimatechangestrategyforthebusiness.

Takingawhole-of-businessapproach,thestrategylaysoutaseriesofinitiativesthathaveorwillbedevelopedandthenimplemented.during2008/09TransGridhas:

> completedaGreenhouseGasemissionsinventoryscopingstudyanddevelopedaprocedureforoutliningtheresponsibilitiesforGreenhouseGasreportingdatacollectioninpreparationfortheimplementationofthenationalGreenhouseenergyreportingact2007.

> begunassessingTransGrid’sGreenhousenon-networkemissionsfootprintandliabilitiesandinvestigatingstrategiestomovetowardbeingcarbonneutral.

> startedassessingclimatechangeimpactsonloadforecasts,networkratingsandperformanceunderarangeofscenarios.

> continuedtomonitorandmaintainanawarenessofcommunity,politicalandregulatorydevelopmentsrelatingtoclimatechange.

TransGridwillmonitoritsclimatechangestrategiestoensuretheyarestillrelevantasknowledgeofclimatechangecontinuestoimproveoverthecomingyears.

wAstereduCtionAndPurCHAsinGPoliCyTransGridhasanongoingcommitmenttoincorporatingtheprinciplesofthensWGovernment’sWastereductionandpurchasingpolicy(Wrapp)intoitsoperations.since1999,TransGridhasaimedtosupporttheWrappframeworkbymaximisingresourceefficiencyandreducingwastegenerationthroughavoidance,reduction,reuseandrecycling.

TransGrid’sWrappplanincludesthefollowingwastereductioninitiativesfortheofficeenvironment:

> reductioninpaperuse> anincreaseinrecycling> educationinitiativesthroughTransGrid’s

liveGreenprogramtoinformstaffaboutenvironmentalissuesincludingresourceconsumption.

intheoperationalenvironment,TransGrid’sWrappplanincludeswastereductionand/orrecyclinginitiativesformaintenanceandconstructionactivitiesincluding:

> vegetationmaterials> construction,demolitionandexcavated

materials.

trAnsGridFinAlistintoPenvironmentAlAwArdTransGridisproudtohavebeenselectedasafinalistintwocategoriesofthebanksiaenvironmentalawards.

Thebanksiaawardsareoneofaustralia’smostprestigiousenvironmentalawardswhichrecognisethosewhohavemadesignificantcontributionstotheenvironment.

inProFile

TransGridenvironmentalawardTheenvironmentalawardwasagainkeenlycontestedbyTransGridstaffwitheightnominationsin2008.Thisyearsawardwaswonbystevecunninghamforhisworkinthedevelopmentofmethodologytoreducesf6leakagefromequipment.sf6isagreenhousegasandbecauseoftheenvironmentalsignificancethereisaneedtoprovideaccurateusageinformationtorecordgreenhousegasemissionsandtodeveloparobustmanagementactionplantoreducefutureleakage.steveidentifiedpotentialsourcesofsf6lossesfromequipmentresultingfromequipmenthandlingandsamplingprocessesanddevelopedanumberofinitiativestominimisetheselossesby:

> redesigningandimprovinggasfillingequipment.> providingsf6managementenvironmentalawarenesssessionsforsubstationstaff.> developmentandtrialofcryogenicsf6recoverysystem.> assessingnewtechnologyandhowitcouldbeutilised.

asaresultoftheinitiatives,TransGridcandemonstrateareductioninitsgreenhousegasemissions.

AboveSteve Cunningham, TransGrid Environmental Award winner.

TransGridannualreporT2009>mAkinGenvironmentAndCommunityAPriority 35

TransGridwasselectedasafinalistintheWaterawardforprotection,conservationandenhancementsofaustralia’sfreshwaterfortheworkwehavebeendoingontheboorowariverrecoveryprogram.ThisinitiativehasmadetangibleimprovementstolandbiodiversityintheMurray-darlingbasinareas.

TransGrid’spartnershipwithGreeningaustralia,GreenGrid,wasalsoselectedasafinalistinthelandandbiodiversityawardfortheworkdoneinthere-establishmentofnativevegetationacross181sites.

TransGrid’senvironmentalperformanceisrecognitionofourcorporatepartnerships’abilitytoachievepositiveenvironmentalandcommunitybenefitsatbothalocalandregionalscale.

FutureenvironmentAlinitiAtivesduring2009/10,TransGridislookingateitherenhancingordevelopingthefollowingenvironmentalinitiatives:

> ourpartnershipwithGreeningaustralia,GreenGrid,whichfocusesonmakingtangibleimprovementstolandandbiodiversityintheMurray-darlingbasin.TransGridwillalsocontinuetobuildontheboorowariverrecoveryprogram.

> supportingtheearthwatchfellowship,whichsupportsscientificfieldresearchbyplacingvolunteersinthefieldtoworkwithscientists.

> sponsorshipofthescientistforadayprogramandtheclimateWatchprogram.

> enhancingtheliveGreenprogram.

inProFile

ourliveGreencampaignonWorldenvironmentday2009,TransGridlauncheditsliveGreenprogram.ourliveGreencampaignisallaboutincreasingemployees’awarenessoftheenvironmentalimpactsassociatedwiththevastrangeofworkactivitiesweundertakeandtoencouragethemtoembraceenvironmentallyfriendlyalternativesbothatworkandathome.Thecampaignhasbeenanexcellentopportunityfortheentireorganisationtoworkasateamtoachievepositivechange.

TheaimsoftheliveGreenprogramare:

> Toreduceresourceuseinouroffice,depotsandprojectsandprovidesustainablealternatives.

> Tomaintainandimprovethecurrentrecyclingsystem.> Tointroducethebestpossiblemethodsforreductionandunderstandhowto

implementthosemethodsatworkandathome.> ToestablishcleartargetsformeasuringtheeffectivenessofourliveGreenstrategies.> Toreducegreenhousegasemissionsattributabletoglobalwarming.> ToregularlycommunicateresultsofliveGreenperformancetoouremployees.> Toincreaseouremployees’knowledgeofenvironmentalissuesandsustainabilityat

bothworkandathome.

ThechallengeforTransGridoverthenextyearwillbetoimplementandreportonourliveGreentargetsandestablishclearstrategiesformeasuringthesuccessoftheprogram.

What is the Live Green proGram?TransGrid’s Live Green Program is about increasing employees’ awareness of the environmental impacts associated with the vast range of work activities we undertake and to encourage our employees to embrace environmentally friendly alternatives at work and home. It will be an excellent opportunity for all of us to work as a team to achieve positive change.

From July 2009, TransGrid will have in place targets for reducing energy and water usage within all offices as well as targets for reducing the production of waste matter. TransGrid will actively engage all employees in this initiative to ensure that we not only meet our targets but exceed them.

What are the aims of the Live Green proGram?> To reduce resource use in our office, depots

and projects and provide sustainable alternatives.

> To maintain and improve the current recycling system.

> To introduce the best possible methods for reduction and understand how to implement those methods.

> To establish clear targets for measuring the effectiveness of our Live Green strategies.

> To reduce greenhouse gas emissions attributable to global warming.

> To regularly communicate results of Live Green performance and provide updates in office greening practices.

> To increase our employees’ knowledge of environmental issues and sustainability at work and home.o

ur

Liv

e

Gr

ee

n

pr

oG

ra

m

reduce reuse recycLe

36 tAPPinGintoourCommunity>TransGridannualreporT2009

TappinGinToourcoMMuniTyCommunityConsultAtion

communityconsultationisanessentialelementinTransGrid’soverallplanningprocess.

TransGridhasaproudtrackrecordofinteractingwiththecommunityduringitsmajorcapitalworksprocess.WiththeresponsibilitytomaintainandcontinuallyplanasafeandsecureelectricitysupplythroughoutnsW,TransGridiscommittedtolisteningtothecommunitysothatitsconcernsareeffectivelyaddressedduringthedevelopmentstagesofaproject.

AboveleFt Kirsten Velthuis, Environmental Officer

AboveCentre Hayden Burgess, Greening Australia

AboveriGHtGarry Eyles, Substations and General Maintenance Team Leader with his wife, Joy Eyles.

TransGridannualreporT2009>tAPPinGintoourCommunity 37

eachTransGridprojectrequiresaunique,personalcommunityconsultationprocessascommunityconcernsvaryaccordingtothelocationofaproject.

Theseconcernscancoveranextensiverangeoftopicssuchaspositioningofsubstations,theroutingofoverheadlinesandcables,noiseanddustissues,accesstolandandhealthandsafetyissues.

newCAPitAlProjeCtinFormAtionPACksinanefforttocontinueengagingthecommunity,TransGridhasintroducedacomprehensivecapitalprojectinformationpack.ThepackprovidesthecommunitywithvitalinformationonkeyissuessuchasthenatureofTransGrid’scapitalprogramdeliveryprocess;commonlandownercompensationinquiries;activitiesthatmayormaynotbepermittedaroundeasementsandaguidetosuccessfullyplantingvegetationaroundeasements.

Thecapitalprojectinformationpackisplayingakeyroleinsupportingthecriticalworkthatourpeoplearedoingonthegroundwiththecommunity.

CommunityAndindustrysPonsorsHiPsTransGridbelievesinbuildingstrongandvaluablepartnershipsbyactivelyengagingandcontributingtocommunities.TransGrid’ssponsorshipframeworksupportsstrategicpartnershipswithactivitiesandorganisationsintheareasofindustry,education,communityandenvironment.

Weassesseachsponsorshiptoensurealignmentwithourcorporateobjectives.

TransGridhascontinuedthepartnershipwithGreeningaustralia,onewhichaimstocontributetotheenvironmentalwell-beingofthestate.TransGridhasgranted$165,000toGreeningaustraliaoverthelastyear.

TransGridhasmadetertiarycontributionstothefollowinguniversitiestocontributetothedevelopmentoftechnicalexpertisewithintheelectricityindustry:

> The University of Newcastle:sponsorshipforindigenousaustralianengineeringsummerschool($2,000)andfortheunissprogram($20,900).

> The University of New South Wales:sponsorshipofalunchattheaustralianuniversitiespowerengineeringconference($5,500).

> The University of Technology Sydney:sponsorshipofthe2009accountingprogram($46,800).

TransGridhasalsosponsoredthefollowingkeyeventsthathaveastrongpresencewithinthestateandprovideindustrynetworkingopportunitiestostrengthenthelinksbetweenTransGridandthecommunity:

> Electric Energy Society of Australia (EESA):sponsorshipofthensWenergyconference($16,500).

> Department of Premier and Cabinet:contributionwithenergyaustraliatothecostofhiringahelicopterfortheoperationblackbirdWeekendblitzonillegalTrailbikeridingintheHunterregion($6,000).

> Engineers Australia:sponsorshipoftheaustralianengineeringWeekcalendartopromoteWomeninengineering($962).

> Department of Ageing, Disability and Home Care:sponsorshipofthedon’tdisMyabilitycampaign($5,500).

> Cancer Council of NSW:sponsorshipforaustralia’sbiggestMorningTea($2,592).

> VariouspublicschoolsandTafe’sacrossthesouthernareaofnsW($1,950).

> Gauci Children’s Trust:oneoffdonationtothechildrenoftheGaucifamilyfollowingfamilytragedyintheGulgongarea($5,000).

inProFile

WorkingwiththecommunityatManildra-parkesinordertomeetthegrowingenergyneedsofthecentralWestslopesandplainsregionofnsW,TransGridisbuildinganewtransmissionlinefromManildratoparkes.TransGridhasbeenactiveinengagingthecommunitysincetheearlystagesoftheproject.inparticular,TransGridhas:

> developedacommunicationandconsultationstrategywhichformedthefoundationforallcommunityandstakeholderinteractions.

> soughtexpressionsofinterestfromtheenergymarkettoidentifypossiblenon-networksolutions.

> establishedadesignated1800numberfortheconsultations.> Hostedinformationsessionstoinformthecommunityofvariousaspectsofthe

project,includingcorridoroptions,andenvironmentalassessmentrequirements,inadditiontoseekingthecommunity’sfeedbackontheproject.

> issuedarangeofmaterialsincludingdisplaymaterial,advertisementsandprojectwebsiteinformation.

> engagedanenvironmentalconsultancytodevelopthereviewofenvironmentalfactors(ref)andspeciesimpactassessment(sis).

> consultedwithrelevantfederal,stateandlocalgovernmentagenciesinrelationtokeyenvironmentalaspectsoftheproject.

TransGrid Easement Guide

38 tAPPinGintoourCommunity>TransGridannualreporT2009

GreenGridGreenGrid,aprojectpartnershipbetweenTransGridandGreeningaustralia,isanaward-winningpartnershipwhichhasengagedmorethan335landholdersandoverathousandcommunityvolunteerswhocollectivelyhaveerected375kmsoffencing,planted224,000tubestock(200ha)anddirectseeded1726kms(600ha)oftreeline.

TheGreenGridpartnershiprepresentsasignificantcontributiontothecommunityandtheenvironmentwhichhasbeendevelopedovermanyyears.

Themultiplebenefitstolandandbiodiversityhavebeenconsiderable.so,too,thecarbonoffsets:itisestimatedthatfrom2003to2007,GreenGridhassequesteredsome16,000tonnesofcarbon.

ThefuturedirectionsofGreenGridwillcontinuetobuildonpastachievementswithafocusondevelopingthepartnershiptooffsetTransGrid’secologicalandcarbonfootprintsacrossthewholebusiness.

molonGGrAssywoodlAndCommunityrestorAtionProjeCtduringoctober,TransGridandGreeningaustraliahostedanon-sitecommunityeventtolaunchtheirnewMolongGrassyWoodlandcommunityrestorationproject,aimedatrevegetating30hectaresofendangeredGrassyboxWoodlandintheMolongdistrict.

Theprojectinvolvesrevegetationexperts,schoolstudents,landcaregroups,andstafffromTransGridandGreeningaustraliaundertakingactivitiestohelprestorethewoodland.

WithonlyfivepercentoftheoriginalGrassyboxWoodlandinthecentralWestremaining,TransGridisworkingwiththecommunitytopreserveandrevegetateareasstillcontainingtheendangeredspecies,suchastheMolongsite.Theprojectfocuseson25hectaresofwoodlandonapropertyownedbyTransGridwhichispartofthehighvoltageelectricitytransmissionnetworkinnsW.

TransGridisveryproudoftheworkalreadydoneandislookingforwardtoworkingfurtherwiththeMolongcommunitytorestoreandprovidelinkagestootherremnantvegetationinthelocalarea.

eArtHwAtCHTheearthwatchinstituteisanindependent,non-profitorganisationthatsupportsscientificfieldresearchbyplacingvolunteersinthefieldtoworkwithscientists.ThepartnershipbetweenTransGridandtheearthwatchinstitutewasinitiatedin2005tosupportTransGrid’sbusinesscommitmenttobeingenvironmentallyresponsible.Throughthispartnership,TransGridemployeeshaveparticipatedinearthwatchfieldresearchprojectsbasedaroundaustralia.

in2008,sixparticipantswerechosentoundertakevariousprojectsacrossthecountry.Thesewere:

> Gayledefaveri(corporate)–koalaecology

> kirstenVelthuis(network)–hawksbillturtles

> stephenpaddison(network)–koalaecology

> MarkGrierson(capitalprogramdelivery)–climatechangeintherainforest

> aadilGaniwalla(capitalprogramdelivery)–climatechangeintherainforest

> Tedadelman(businessservices)–hawksbillturtles.

ThispartnershipprovidesopportunitiesforTransGridstafftoadvancetheirunderstandingoflocalenvironmentalissues,engagewithleadingconservationscientistsaswellasprovideopportunitiesforpersonalandprofessionaldevelopment.

AboveleFt (left to right) Stuart Johnston, Toby Jones, John Tolhurst, Megan Calvert, Kirsten Velthuis, Geoff Bakewell, Peter Fawcett, Melinda Pickup, Bindi Vanzella, Suzanne Sheekey and Donna Johnston.

TransGridannualreporT2009>tAPPinGintoourCommunity 39

inProFile

operationblackbirdduringoctober2008,TransGridwasinvolvedinatwo-daypoliceoperationconductedacrossanumberofareasaroundthenewcastlearea,includingoneofTransGrid’seasementsatkillingworth.policeweresupportedbypeoplefromagenciesincludingnationalparksandWildlifeservice,departmentoflands,thensWfirebrigadeandTransGrid.

Theoperationwasco-ordinatedbythedepartmentofpremierandcabinetandtheHunterillegalTrailbikeridingforum.Theobjectiveoftheoperationwastohaveahighprofilemulti-agencypresencewithinthelakeMacquariepolicelocalareacommand,withpoliceeffortsdirectedatdetectingillegaltrailbikes,locatingandrecoveringstolenmotorvehicles,detectingarson,targetingunauthoriseduseofcrownlandsandutilityeasementsanddeterringvandalismtopublicpropertyandthenaturalenvironment.

TransGridcommittedvariousresourcestotheoperation,includingthecharteringofahelicopterthatprovidedcriticalsupporttogroundcrews.

eventssuchasthesestronglysupportTransGrid’scommitmenttosocialresponsibilityandplayaroleinenhancingourrelationshipwithothergovernmentbodiesintheHunterregion.

inProFile

don’tdisMyabilityinternationaldayofpeoplewithadisabilitywascelebratedaroundtheworldon3december.itisatimeforpeoplewithadisability,theirfriends,familiesandcarerstocelebratetheirabilitieswiththewidercommunity.TransGridwasaproudsupporterofthensWGovernment’smonth-longcampaigncalleddon’tdisMyability.aspartofthiscampaign,TransGridhostedamorningteaforstaffduringdecember.

drMarkbagshawattendedthemorningteaaskeynotespeaker.MarkistheManagingdirectorofinnov8consultingGroupandwasformerlybusinessdevelopmentexecutiveforibM.Hisprimaryfocusistodemonstratetothebusinesscommunitythataddressingtheissuesfacedbypeoplewhoareeconomicallydisadvantagedisrightforoursocietyandmakesgoodbusinessandeconomicsense.

Theeventwasverywellattendedwithover50peoplefromsydneyofficerepresented.Thefeedbackontheseminarwasverypositiveandweareproudtohaveplayedaroleinraisingawarenessofwhatisbeingachievedbypeoplelivingwithadisability.

Thisinitiativewastrulyawhole-of-governmentapproachwiththesupportof32governmentagencies.

leFtTransGrid’s Kathryn Pate participating in Operation Blackbird.

AboveDr Mark Bagshaw presenting to TransGrid staff.

40 PromotinGourPeoPle’sCAPAbilities>TransGridannualreporT2009

proMoTinGourpeople’scapabiliTiesPuttinGHeAltHAndsAFetyFirst

keepingouremployees,contractorsandthepublicsafeisessentialtothewaywedobusinessinTransGrid.

safetyisTransGrid’snumberonepriority.That’swhyourhealthandsafetyapproachisintegratedintobusinessdecisions,processesandeverydayactivities.

AboveleFtRachana Amin, Professional Engineer and Colin Mayer, Senior Project Manager.

AboveriGHt(left to right) Ian Harris, Senior Audit Manager, Clare Mannion, Board and Executive Support Manager, Cathy Hollamby, Strategic Development Manager, David van Beek, Corporate Risk and Audit Manager, and Lyndall Henry, Solicitor.

TransGridannualreporT2009>PromotinGourPeoPle’sCAPAbilities 41

Unspeci�ed

Groin/Buttock

Stomach/Torso

Multiple Body Injury

Neck/Head/Face/Eye

Shoulder/Arm

Leg/Knee/Hip

Foot/Ankle

Back

Hand Injury

Hand Injury 18%

Back 16%

Foot/Ankle 14%

Leg/Knee/Hip 14%Shoulder/Arm 11%

Neck/Head/Face/Eye 11%

Multiple Body Injury 9%

Stomach/Torso 4%

Groin/Buttock 2%

Unspecified 1%

Body Location

Fracture

Multiple

Miscellaneous

Open Wound

Contusion/Bruising

Super�cial

Sprain and Strain

Sprain and Strain 37%

Superficial 16%

Contusion/Bruising 15%Open Wound 15%

Miscellaneous 9%

Multiple 7%

Fracture 1%

Injury Type

TransGrid’sstrategiesareaimedatcontinuallyimprovinghealthandsafetyperformanceandmaintainingamajorfocusonriskmanagement.ThisapproachisconsistentwithourHealthandsafetypolicy.

TransGrid’sgoaliszeroinjuries.Webelieveallaccidentsarepreventableonandoffthejob.

Thelosttimeinjuryrate(numberoflosttimeinjuriespermillionmanhoursworked)forthe2008/09yearwas3.5,whichwasanimprovementfrom3.7for2007/08.

Thehealthandsafetystrategiesforthenext12monthsaredesignedtoraiseawarenessandhaveapositiveimpactinreducingtheinjurylevels.Theseverityofinjuriesoverthepastyearhasalsoreducedby35percent,basedontheaveragetimeoffperinjury.

duringtheyear,35percentofallinjuriesacrossTransGridhaveresultedfromaslip,triporfalland37percentofallinjuriescausedastrainorspraintoouremployees.

2008/09

Total Lost Time Incidents (No. of accidents) 7

Total Days Lost (No. of days) 54

Average Lost Time Rate 7.71


TransGridislicensedbyWorkcovernsWasa“Worker’scompensationselfinsurer”.TransGridhasperformedwellinregardtoworker’scompensationcostswhichhavereducedby25percentfromthepreviousyear,and46percentsince2005/06.Thisfigurereflectsthe11percentreductioninthenumberofworker’scompensationclaimsoverthe2008/09year.

TransGrid’soccupationalHealthandsafetyManagementsystemiscertifiedtoaustralianstandardas/nZs4801.TransGridconductshealthandsafetysystemauditsthroughouttheyearandanynon-conformanceidentifiedbytheseauditsisactionedanditscompletiontracked.

TransGrid’soccupationalHealthandsafetyManagementsystemisoverseenbytheexecutiveoccupationalHealthandsafetycommitteewhichmeetsquarterly.ThiscommitteeischairedbytheManagingdirectorandincludestheGeneralManageroraseniormanagementrepresentative.

TransGridimplementsanannualcorporateHealthandsafetyplan,whichisbasedonthehealthandsafetyrisksandkeyinitiatives.eachbusinessunitdevelopsitsowncustomisedplanwhichaddressesthebusinessspecifichealthandsafetyrisks,basedonthecorporateHealthandsafetyplanobjectives.

overtheyear,TransGridhasbeenfocusingonanumberofhealthandsafetyinitiatives,alldesignedtoreduceworkplacerisksandimprovethehealthofouremployeesandcontractors.WehavebeencontinuingtoimplementTransGrid’sfitforWorkprogrammeforourlineworkerstohelpimprovefitnesswithafocusondiet,corestrengthandflexibility.Thisprogrammehasbeenembracedbyallthoseemployeesinvolved.

inProFile

safetydaycompetitionaWinnerover100peoplefrom21teamsacrossTransGridcompetedinfirstaid,firefightingandriskassessmenteventsatTransGrid’sannualsafetydayinseptember.Thesafetydaywaslargerthanever,witheventsinvitalemergencyresponseandriskassessmentdisciplines,aswellasdisplaysofTransGrid’ssafetyequipmentandinitiatives.ThensWfirebrigadewasonhandtojudgeteamsastheybattledacontrolledfire.representativesfromWorkcoverwerealsopresentasactorssimulatedvariousinjuries,creatingconfrontingchallengesforcompetitors.

TransGrid’ssafetydayhelpstovalidateoursafetyprincipleof“noshortcutsWhenitcomesTosafety”.Thedayhelpstohoneoursafetyskillswhichpositivelyinfluencesasustainedsafetycultureinallourworkplaces.italsoprovidesTransGrid’sboard,executiveandseniorleaderswiththeopportunitytoreinforcetoourpeopletheirpersonalcommitmenttoemployees’safety.

Wecongratulateouryassteamwhowerethestandoutwinnersofthesafetyshield.

during2008/09,TransGridhasconcentratedonimprovingcontractormanagementsystemsandprocesses.anewauditingprogramforourmajorconstructionprojectswasintroducedduringtheyear,raisingthebaronthehealthandsafetyperformanceofourcontractors.

seasonalhealthandsafetythemescontinuedacrosstheorganisationtoprovideeveryonewithinformationonrelevanthealthandsafetytopicsandpromotewellbeingacrosstheorganisation.examplesofthethemesarelistedbelow.

Year Quarter Health Theme Safety Theme

2008 spring Quit!doyourselfafavour spring!cleanyourWorkspace

2008 summer checkThosespots sunsenseandsafety

2009 autumn stretchbeforeyoustrain besafe-WatchyourMate

2009 Winter WinterWarm-uppepsyouup HazardscanHurt-bealert

belowSafety Day Competition


inProFile

TransGridsafetyawardTheannualsafetyawardrecognisesanindividualorteamwhohavemadeasignificantcontributiontosafetyinTransGridandwhohavedevelopedorappliedsafetysolutionsinaninnovativeorpracticalway.ifwasverydifficulttoselectonlyoneofthesolutionsthatwerenominated.However,thisyeartheawardwaspresentedtoGlennroberts.Glenn,adraftingofficerfromournorthernregioninnewcastle,developedadeviceforthesaferemovalandreplacementofcabletrench,roadcrossinganddraincovers.Thisinitiativeprovidedasolutiontoreducingthemanualhandlingissuesassociatedwiththerepetitivetaskofremovingheavyandawkwardsteelcovers.

everynewemployeeisrequiredtocompleteanumberofmandatorytrainingcourses,aftercompletingtheirinduction,thataredesignedtoincreasesafetyawarenessandunderstanding.Thesecoursescovertopicssuchasfireawareness,ManualHandlingandriskassessment.

Theannualchildren’sdrawingandcalendarcompetitionreceived106entriesforthe2009calendar.ouremployees’childrenprovidedacolourfulinsighttothetheme:“Howcouldweimprovesafetyandhelpourenvironmentwhenweareonholidaysorathome”.

TransGridbelievethatbyinvolvingfamiliesandchildren,theywilllearntheimportanceofsafetyinallaspectsoftheirlives.

FutureCHAllenGesinthecomingyear,anumberofnewinitiativeswillbedevelopedandimplementedthataredesignedtoconsolidatetheexistinghealthandsafetyprogrammes.akeyinitiativeforthenextyearwillbetoimprovehealthandsafetycommunicationthroughtheimplementationofadedicatedHealthandsafetycommunicationstrategy.Thisstrategyaimstoimprovehealthandsafetyawarenessateverylevel,keepingitattheforefrontofpeople’sconsciousness.

anotherinitiativefornextyearwillbetodevelopandintroduceaWellbeingprogramintegratingcurrentemployee’sservicesandhealthprogramswhileintroducingnewaspectsofwellbeing.Thisprogramwillhelpouremployeeskeepfocusedontheirrolesandprovidewaystomanagepersonalissues,thereforereducingtheriskofworkplaceinjury.

understandingthesafetycultureinanorganisationisakeyfactorindevelopingwaystoreducehealthandsafetyrisks.duringthecomingyear,TransGridplanstodevelopaprojectdesignedtoassess,measureandimprovesafetyculture.

TransGrid’sgoaliszeroinjuries.Webelieveallaccidentsarepreventableonandoffthejob!

leFtGlenn Roberts

riGHt(clockwise from top left)

Adam Vaux, Graduate Engineer

Roger Braunton, Engineering Officer

Erica Hetherington, Engineering Trainee

Charles Hitchen, Graduate Engineer


PlAnninGAworkForCeFortHeFutureTransGridfacesanumberofchallengesoverthecomingyearstoensurethatwehavetherightskillsandcapabilitiestodriveourmulti-billiondollarcapitalworksprogramtofruition.

oneofthekeyworkforcechallengesforTransGridisanageingworkforce.TransGrid’sworkforceprofileshowsanaverageageof47.7yearswithasignificantnumberofretirementspredictedoverthenextfivetotenyears.TransGridisalsooperatinginanenvironmentwheremanyoftheskillsandcompetenciesthatareneededtomeetcurrentandfuturebusinessneedsarecompetitivelysoughtafterbyotherorganisations.Wehaveputinplaceanumberofprogramstoaddressthesechallengesincludingtheimplementationoftargetedleadershipdevelopmentprogramsandincreasedrecruitmentofdevelopmentlevelemployeesinspecialisedareas.

leAdersHiPdeveloPmentProGrAmsTransGridhasbeenprogressivelyimplementingarangeofleadershipprogramstoaddresstheabovechallenges.Theseprogramswereimplementedthroughout2008/09withagreatresponsereceivedfromemployees.Theprogramsseektoensurethatleadershipisaddressedatawiderangeoflevelsacrosstheorganisation.duetothesuccessoftheseprogramsin2008TransGridwillbeupdatingthemandofferingthesedevelopmentactivitiestomoreemployeesin2009/10.

Executive Leaders ProgramTheexecutiveleadersprogramisanexecutive-levelcoachingprogramdesignedforexecutivemanagerswithinTransGridwhohavebeenidentifiedaspotentialsuccessorstomoreseniorexecutivepositions.

eachoftheparticipantshashadanindividualcoachselectedforthembasedonpre-coachingassessmentsandinterviews.Theparticipantandcoachareabletoagreeonanyfurtheruseofpsychometrictestingof360degreefeedbackaswellassettingkeygoalsandmilestones.

Senior Leaders ProgramTheseniorleadersprogramisastructuredprogramdesignedtoprovidedevelopmenttoselectedseniormanagersidentifiedaspotentialsuccessorstoseniorpositionssuchasgeneralmanagersorgroupmanagers.

Theprogramcommencedinseptember2008andinvolvedparticipantstakingpartinindividualdevelopmentassessments.Thisassessmentprocessincludedundertakingaverychallengingassessmentcentreexercise,360degreesurveysandpsychometrictesting.followingthisassessment,eachindividualwasmatchedwithacoachandprovidedwithadevelopmentplansettingoutappropriateactivitiesand/ortraining,includingattendanceatatrainingcourseorappropriateworkplaceactivities.Tenemployeeshavebeenthroughtheprogramoverthelastyear.

Above(left to right)Jemmie Ong, Graduate Accountant, Justin Holland, Engineering Trainee, Joseph Diver, Graduate Engineer, Adam Vaux, Graduate Engineer, and Erica Hetherington, Engineering Trainee.


Future Leaders ProgramTransGrid’sfutureleadersprogramfocusesondevelopingleadersfromwithintheorganisationandplaysavitalroleinensuringthattherearesuitableemployeestomoveintoleadershiproles,inthemediumtolongerterm.

Theprogramlooksatleadershipacrossallfacetsoftheorganisationandseekstogaincommitmentfromemployeestoactivelyparticipateintheirowndevelopment.TransGridunderwentextensivebenchmarkingagainstotherorganisationstodevelopaleadershipcapabilityprofileforourcompany.

Thepilotprogramcommencedinoctober2007and20candidatesfromacrossTransGridparticipatedintheprogram.participantstookpartinindividualdevelopmentplanningsessionsandundertookgrouptrainingincommondevelopmentareas.inaddition,allcandidateswereassignedtoworkonastrategicorganisationalprojectwhichwaspresentedtotheTransGridexecutiveTeaminearly2009.

duetothesuccessofthisprogramTransGridintendstohaveasecondintakeoffutureleadercandidatesin2009.

develoPinGourGrAduAtesduring2008/09TransGridmaintaineditscommitmenttograduateandscholarshipdevelopmentprograms.TheseprogramsplayakeyroleinsupportingTransGrid’sresourceplanningthroughtheprovisionofholisticonthejoblearninganddevelopmentinthedisciplinesofengineeringandaccountancy.

TransGridcurrentlyemploys45electricalengineeringgraduates,twocivilengineeringgraduatesand10accountinggraduates.

TransGrid’sgraduatesareprovidedwithstructuredtraininganddevelopmentinavarietyofareasincludingleadershipdevelopment,individualdevelopmentplansandsupporttogaincharteredstatuswithengineersaustralia.

Theplannedrotationsprovidegraduateswithauniqueexperienceallowingthemtogainaninsightintodifferentareasofthebusiness,aswellasthechancetoworkwithourmanydifferentsubjectexperts.

during2008/09TransGridcontinuedtoofferscholarshipsinelectricalengineering.TransGridcurrentlyhastwoscholarshipholdersatnewcastleuniversity,oneattheuniversityofWollongongandtwoattheuniversityofTechnologysydney.TransGridalsocontinuestosupportascholarshipholderinenvironmentalstudieswiththeuniversityofnewengland.

trAineeenGineerinGoFFiCersduring2008/09TransGridhascontinuedthesuccessfulTraineeengineeringofficerprogramwithfournewentrantsbeingaccepted.Thefouryearprogramcurrentlyhas10traineesundertakingtheadvanceddiplomaofelectricalTechnologyandworkinginvariousengineeringandprojectgroups.TodatefivetraineeshavesuccessfullycompletedthecourseandhavetakenupengineeringofficerpositionsinTransGrid.

APPrentiCesHiPsTransGridcontinuedtohaveastrongfocusonapprenticeshipprogramsduringtheyear.

atotalof63apprenticesareemployedbyTransGrideachatdifferentlevelsofprogress.The2009intakeof13apprenticeswasinkeepingwithTransGrid’scommitmenttobothorganisationalresourceplanningandsocialresponsibility.

TransGrid’sapprenticesarepartofaprogramtoaddressskillsshortagesacrosstheelectricityindustry.apprenticeshipsarealignedwithnationalTrainingpackagesinvolvingbothonandoffthejobtraining.

TransGrid’sgraduateprogramprovidesholisticonthejoblearninganddevelopmentandthechancetoworkwithmanydifferentsubjectexperts.

AboveriGHt(clockwise from top left)

Ainslee Scott, Business Manager/Corporate

Daniel Bremner, Electrical Fitter

Kayle Mabagos, Executive Management Support Officer

Warick Schroder, Projects Engineer


inProFile

youngprofessionalsprogramlaunchedTransGridhascommencedtheimplementationofastructureddevelopmentprogramforyoungprofessionals.Whilstthisprogramwillhaveasignificantfocusongraduatesitwillalsoprovidedevelopment,trainingandsupportforemployeesrangingfromundergraduateworkexperienceemployeestotraineesandthoseintheirfirstroleafterthegraduateprogram.

developmentwillfocusonadvancinganemployee’soverallunderstandingaswellasassistinginplacementsorjobroles.businessunitswillprovideresourcesintheformofexpertsforboththeseminarsandtrainingprograms.accessforhighpotentialgraduates(andGrade2levelemployees)toTransGrid’stargetedleadershipprogramswillalsobeconsidered.

someimprovementsinthisareahavealreadytakenplacethroughtherestructuringoftheGraduatecommittee,nowtheyoungprofessionalscommittee,toincreasethefocusontraininganddevelopmentaswellastobroadenthefocusbeyondgraduatesandtheimplementationofnewactivitiessuchasthenewGraduateinductionprogramandworkplaceseminarseriesforyoungprofessionals.

Theprogramisexpectedtohaveadditionalbenefitsinprovidingemployeeswithachancetonetworkwithothersandbuildtheirunderstandingoftheorganisation,assistingengagementandretention.

apprenticescompletingtheirapprenticecontracthaveawiderangeofcareeropportunitiesavailablerangingfromtradespersontoManagingdirector’sscholar.Theirqualificationsmakethemeligibletoapplyforpositionsaustralia-wide.

PerFormAnCemAnAGementarecentreviewofTransGrid’sperformancereviewandemployeedevelopmentprogramhighlightedthattheprogram,whichwasintroducedin2006,continuestobewellreceivedandissuccessfullyembeddedintheorganisation.

However,improvementopportunitieshavebeenidentifiedincludingtheprovisionofanonlineformtoassistwiththecompletionandtrackingoftheprocess.TransGridisplanningtotrialtheimplementationofanonlinesysteminlate2009.

Toassistmanagersindevelopingemployees,TransGridisplanningtooffertrainingduringlate2009oncoachingandmanagingemployeedevelopmentaswellastheimplementationoftheoutcomesfromatrainingneedsanalysisconductedforTransGridin2008/09.

reCoGnisinGourPeoPleTransGridrecognisedtheserviceofouremployeesbyhostinga25-yearand40-yearrecognitiondinnerinsydney’scbd.

during2008,25peoplewererecognisedfortheirservicetoTransGrid.Thisincludesnineemployeeswith25yearsserviceand16with40yearsservice.Thedinnerofferedanopportunityfortheorganisationtosaythankyouforthecommitmentandloyaltyouremployeesbringtotheindustry.

TransGrid’sManagingdirector,kevinMurray,attendedthedinnerandcommentedonouremployees’dedicatedservicebystating:“it’sthehardworkoftheselongstandingemployeeswhichhasbeeninstrumentalinTransGridbeingaleadingperformerintheelectricityindustry”.

althoughtheseeventsmarkasignificantmilestoneforourexemplaryemployees,TransGridiscommittedtopassingdownknowledgeandexperiencetoitsyoungerworkforce.TheseemployeeshavebeenvaluablerolemodelstotheyoungerstaffmembersatTransGrid,andmanyhavebeeninstrumentalintheirpersonalandprofessionalcareerdevelopment.


stAFFenGAGementAPriorityTransGridhasbeenactiveinconsideringhowwecanbetterengageourpeople.

internalcommunicationhasproventobeavitalfunctionwithinTransGrid,andforthisreason,TransGridhasimplementedanewinternalcommunicationsframework.itisdesignedtoensurethatallemployeescanbetteridentifywithTransGrid’sstrategicdirectionandachievementsandassistindeliveringourvalueofopencommunication.

Therewerevariouslevelsofconsultationinthedevelopmentoftheframework,includingasurvey,invitingemployeestooffertheirviewsoncommunicationmethods.

Theinternalcommunicationsframeworkhasbeenayearinthemakingandwehavebeentriallingtheapplicationofarangeofcommunicationchannelsoverthattime.WehaveintroducednewelectroniccommunicationchannelswhichhavebeenvaluableinengagingouremployeesandsolicitingtheirfeedbackonthekeyissuesforTransGrid.

TransGridlooksforwardtocontinuingtostrengthenourinternalcommunicationchannelsoverthenextyear.

imProvinGemPloyeeserviCesTransGridiscommittedtoprovidingitsemployeeswitharangeofdiverseservicestoensureongoingengagement.

Manyofouremployeeshavetakentheopportunitytoenterintosalarysacrificearrangementsforthepurchaseoflaptopsandforthepaymentoftheirelectricitybills.employeeshavealsobeensalarysacrificingnewmotorvehiclesthroughanexternalleasingprovider.Thepopularityofoursalarysacrificebenefitshascontinuedtoincreaseoverthelastfewyears.

employeeshavecontinuedtobeapartoftheTransGridemployeesWelfarefund.Throughasmallweeklycontribution,employeescanreceivesupportforthemselvesandtheirfamiliesintimesofhardshipandaccesstoarangeofwelfareandrecreationalfacilities.

TransGridhascontinuedwiththeimplementationofitsemployeeassistanceprogram.Thefree,confidentialcounsellingserviceisavailabletoallemployeesandtheirimmediatefamilyforanypersonalproblemsorconcernstheymayhave.

TransGrid’semployeeshavecontinuedtoreapthebenefitsofourvariousregionalsportsandsocialclubs.Theclubs’mainobjectivesaretoprovideemployeeswiththeopportunitytomeetsociallyandhavefun.Theclubs’offerawiderangeofdiscountedticketstosportingevents,theatreshowsandconcerts.Varioussocialnightsareorganisedaswellastrivianights.

FuturePeoPlestrAteGiesinlinewithitsstrategicHumanresourcesplan,TransGridwillbeintroducingarangeofpeoplestrategies.foreachoftheseareasTransGridwillcontinueorrefinecurrentprogramsandwherenecessarydevelopnewinitiatives.

Progress on Workforce Planning StrategiesTransGridhascommencedaprojecttoinvestigatethebestprocessestodevelopandimplementamoreappropriatemethodofworkforceplanning.Thekeystageswillincludeidentificationofplanningtools,identificationandanalysisofdatasourcesonworkforceneedsandcommunicationandtrainingtomanagersandotherkeycontactsontherevisedprocess.

New Manager Induction and TraininginadditiontoleadershipdevelopmentTransGridisconcentratingonmanagementtraininginanumberofkeyareas.Thistrainingwouldbepracticalinnature,withinformationprovidedthrougheitheranewmanagerinduction,grouptrainingonkeyorganisationalareasoridentifiedindividualdevelopment.

itisproposedthatthisprogramwillcommenceinthelaterhalfof2009withtheassistanceofanexternalprovidertoidentifykeyareastobeincludedintheprogramandappropriatetrainingmethodsfordelivery.

TransGridhasbeenactiveinconsideringhowwecanbetterengageourpeople.internalcommunicationhasproventobeavitalfunctionwithinTransGridandTransGridhasimplementedawholenewinternalcommunicationsframework.

oPPositetoPFuture Leaders Program candidates (left to right) Graeme Ludewig, Commodity Manager, Michael Bradbury, Planning Systems Manager, Judy Green, Manager/Business Services, Jo-Anne Harrison, Manager/Reporting and Financial Systems, and Kevin Hinkley, Protection Systems Engineer.

oPPositeleFtAdam Vaux, Graduate Engineer and Jemmie Ong, Graduate Accountant.

AboveriGHt(clockwise from top left)Kathryn Pate, Environmental Officer

Vijendra Prasad, Project Manager

Rhys McKay, Technical Support Assistant

Kevin Murray, Managing Director


inProFile

Managingdirectorsscholarshipduringfebruary,TransGridawardedaManagingdirectorsscholarshiptodarrenngo(substationsTeam/Wallgrove).

Thescholarshipprogramcommencedin2006andisawardedonanannualbasistoaTransGridapprenticewhohasdemonstratedhighacademicachievement,leadershipqualitiesandaninterestinfurtheringtheirstudies.

followingcompletionofyear10,darrenembarkedonanelectricalapprenticeshipatWallgrovewhichherecentlycompleted.inhisowntime,darrenhasalsocompletedhisdiplomainelectricalengineeringatTafe.duringhistimeatTafe,darrendemonstratedhighacademicexcellenceandwaspresentedwithanawardforoutstandingstudentatGranvilleTafe.

ThroughtheManagingdirectorsscholarship,darrenwillnowcommenceabachelorofengineering(electrical)attheuniversityofnsW.itisverygratifyingtoseedarrenwho,throughhardworkandcommitmenttostudyisbeingrewardedandgivenanopportunitytofurtherhisstudyandcareer.

TransGridcommendsdarrenonhiscommitmentanddedicationandwisheshimthebestinhisfuturecareer.

AboveDarren Ngo and Kevin Murray

Employee Engagement Strategies and ProgramsTransGridwillcontinuetolookatemployeeengagementandtherolethisplaysinretainingemployeesandinfluencingoutcomesfortheorganisation.Whilstanumberofexistingprogramssuchastheemployeeperformancereviewandtheleadershipprogramsareseenaskeytoemployeeengagement,anumberofnewprogramsoractionswillalsobeundertakenin2009/10.

TransGrid Alumni or Keep in Touch Programsduring2009,TransGridwillprovideaprocessforkeepingintouchwithanumberofdifferentgroupstoassistinmaintainingTransGridasapossibleemployerofchoiceinpeople’smindsandthereforeattractingthembacktotheorganisation.

TheprogramwillallowTransGridtoprovideex-employeesand/orothergroupswithtargetedmessagesandinformationoncurrentprojectsandrecruitmentpositions.Theerecruitmentprogramwillallowsuchinformationtobetargetedtoeachgrouptoensuremaximumimpactofmessages.

On-boarding Processduring2009/10,TransGridislookingtointroducearevised“on-boarding”processcoveringhowemployeesaremanagedduringtheirfirst3-6months.Thisrevisedprocesswillincluderevisedface-to-faceinductions,anupdatedon-lineinductionprocess,streamlinedprobation/entryphasereviewandrevisedentryandexitinterviews.

TransGridwillbeintroducingarangeofpeoplestrategies.foreachoftheseareasTransGridwillcontinueorrefinecurrentprogramsandwherenecessarydevelopnewinitiatives.

leFt(clockwise from top left)Adam Long, Surveyor

Paul Phillips, General Manager/Business Services

Lyndall Henry, Solicitor

Graeme Buxton, Tradesperson


equAlemPloymentoPPortunity(eeo)disClosures1

Table 1. Trends in the representation of EEO groups2 % of Total Staff3

EEO Group Benchmark or target

2007 2008 2009

Women 50% 14 14 15

aboriginalpeopleandTorresstraitislanders 2% 1.1 0.9 0.8

peoplewhosefirstlanguagewasnotenglish 19% 17 19 20

peoplewithadisability 12% 7 5 6

peoplewithadisabilityrequiringwork-relatedadjustment

7% 0.8 0.5 0.5

Table 2. Trends in the Distribution of EEO Groups4 Distribution Index

EEO Group Benchmark or target

2007 2008 2009

Women 100 92 93 92

aboriginalpeopleandTorresstraitislanders 100 n/a5 n/a n/a

peoplewhosefirstlanguagewasnotenglish 100 106 104 104

peoplewithadisability 100 97 103 105

peoplewithadisabilityrequiringwork-relatedadjustment

100 n/a n/a n/a

Notes1 Theformatfortheeeodisclosures2009hasbeenadjustedtomeetcurrentreporting

requirements.2 staffnumbersareat30june2009.3 excludescasualstaff.4 adistributionindexof100indicatesthatthecentreofthedistributionoftheeeogroup

acrosssalarylevelsisequivalenttothatofotherstaff.Valueslessthan100meanthattheeeogrouptendstobemoreconcentratedatlowersalarylevelsthanisthecaseforotherstaff.Themorepronouncedthistendencyis,thelowertheindexwillbe.insomecasestheindexmaybemorethan100,indicatingthattheeeogroupislessconcentratedatlowersalarylevels.

5 n/arepresentsavaluethatisnotstatisticallyvalid.

embrACinGdiversityTransGridvaluesitsdiverseworkforceandoursuccessdependsuponit.TransGrid’sdiverseworkforcehasbeensteadilygrowingoverrecentyears,withthenumberoffemaleshavingrisenfrom124to146overthelastfiveyears.

TheobjectiveofTransGrid’sWorkforcediversitystrategyistoimproveemploymentandcareerdevelopmentopportunitiesforpeoplewhoareunder-representedinourworkforcethroughspecificprogramsandtomakeallstaffawareoftheirrightsandresponsibilitieswithregardstoallaspectsofdiversity.

TransGridreviewsthestrategyannuallytoensureourworkforcediversityobjectivesarebeingmet.Workforcediversitydatacollectionformscontinuetobeforwardedtoallnewemployeestofacilitatethecollationofworkforcediversitydata.

aprimarycomponentofthestrategyisourreferralofficers,whoassistemployeesinexploringoptionsinrelationtogrievances,harassmentand/ordiscriminatorybehaviour.referralofficersprovideinformationandconfidentialsupporttoemployeesregardingTransGrid’sGrievanceManagementprocedure.

AboveRachana Amin, Professional Engineer and Colin Mayer, Senior Project Manager.


AboriGinAlemPloymentdeveloPmentstrAteGyTransGrid’saboriginalemploymentanddevelopmentstrategyisanintegralcomponentofTransGrid’sWorkforcediversitystrategy.

TheaboriginalemploymentanddevelopmentstrategyhasbeendevelopedwithreferencetotheMaking it Our Business – NSW Policy Statement 2006/08issuedbythensWpremier’sdepartment.

TransGridiscommittedtoachievingmeaningfulandsustainableimprovementsinindigenousemploymentbyfocusingonprovisionofdevelopmentopportunitiesandsupporttoenableaboriginalandTorresstraitislanderpeopletodeveloptheirfullcareerpotential.

disAbilityACtionPlAnTransGridhasadisabilityactionplanwhichdemonstratesTransGrid’scommitmenttotheobjectivesofthensWGovernment’sdisabilitypolicyframework,theNSW Disability Services Act 1993andtheNSW Anti-Discrimination Act 1977.

TheplanhasstrategieswhichhavebeenimplementedbyTransGridtorespondtotheneedsofdisabilitiesofpeoplewithinnsW.

TofurtherraiseawarenessofTransGrid’sdisabilityactionplan,TransGridsupportedthensWGovernment’sdon’tdisMyabilitycampaignduringtheyear.

etHniCAFFAirsPrioritystAtement(eAPs)TransGridcarriesoutcommunityconsultationonproposedmajorprojectstoensurepublicunderstandingandidentificationofrelevantconcerns.

keyindicatorsapplicabletoeapsincludethemaintenanceofmerit-basedrecruitmentpractices,flexibleworkarrangementsandaccommodatingtheneedsofemployeesinregardstoculturalorreligiouscustoms.

eeoACHievements–2008/09> awarenesssessionswereprovidedto

staffontheapplicationofthecodeofethicsandconduct.

> informationonharassmentanddiscriminationpreventionwasupdatedandmadeavailableonTransGrid’sintranet.

> TheWomen@TransGridprogramandassociatedcommitteewasformedandimplemented.

> allnewemployeesattendedaninductionprogramwhichprovidesexposuretoTransGrid’spoliciesandconditionsofemployment.

> allhumanresourcesprocedureswerereviewedregularlytoreflectchangesinworkforcediversitypractice.

> Theapprenticeintakefor2009encouragedindigenousandfemaleapplications.

> sponsorshipofthedon’tdisMyabilitycampaign.

> sponsorshipoftheengineersaustralia’sengineeringWeekcalendartopromotewomeninengineering.

> promotionofeeoachievementsthroughvariousinternalcommunicationchannels.

> developmentofacapitalprojectinformationpackaspartofourcapitalworkscommunityconsultationprocess.

eeoPlAnnedinitiAtives–2009/10> reviewallcurrentWorkforcediversity

strategiesandplans.> includeWorkforcediversitydata

collectionsurveyintheinductionprogramforallnewemployees.

> continuedsupportfortheWomen@TransGridprogramwithinTransGrid.

> implementationofnewpoliciesoneeo,Harassment,discriminationandbullying.

> implementationoftrainingforallemployeesandmanagersonmattersofeeo,Harassment,discriminationandbullyingbothatpointofinductionandongoing.

> revisionofthecurrentGrievanceManagementprocessincludingincreasingtheprofileofthereferral/contactofficernetwork.

> developabroaderadvertisingstrategyforvacantpositionstoencourageapplicationsfromfemale,disabledandindigenousapplicants.

AboveTransGrid apprentices Thomas Paine, Michael Cross, and Ryan Dunn.


inProFile

Women@TransGridprogramTheWomen@TransGridprogramwasimplementedduring2008/09toprovideamechanismforcommunicationbetweenmanagementandfemaleemployeesonissuesofinterestaffectingtherecruitment,developmentandcareerprogressionofwomenwithintheorganisation.committeemembersplayakeyroleinassistingwithanyagreedactivitiessuchasworkingparties,researchandpromotionalactivities.TheyalsoconsultwiththefemaleemployeesintheirbusinessunitsregardingcurrentissuesandprovidefeedbackontheprogressofWomen@TransGridprogram.

TheprimaryroleoftheWomen@TransGridprogramisto:

> identify,reviewanddevelopstrategiestoassistinprovidingcareeropportunitiesandprogressionforwomeninTransGridacrossallgradesandprofessions,includingtheidentificationandpromotionofdevelopmentactivities.

> identify,reviewanddevelopstrategiestoassistinprovidingincreasedrepresentationofwomenwithinalllevelsofmanagementofTransGridaswellaswithinnon-traditionalareassuchastradesandengineering,includingtheidentificationandpromotionofrelevantdevelopmentandrecruitmentactivities.

> informseniormanagementofissueswhichmayberestrictingthedevelopment,progressionandrecruitmentofwomenwithinTransGridacrossallareas,regions,professionsandgrades.

> facilitateorganisationalsupportandunderstandingforfemaleemploymentandcareerprogressionthroughpromotionofthecommittee’sactivitiesacrosstheorganisation.

TheWomen@TransGridprogramaimstoprovidecareeropportunitiesandprogressionforallwomeninTransGrid.

AboveleFt Top Row: (left to right) Kate Edwards, Tanya Snowdon, Monica Lonergan, Louise Birkmann, Angela Klepac, Kersha Levi, Roslyn Ryan, and Leanne Keene.

Bottom Row: (left to right) Bobbi Peter, Sophie Dowling, and Judy Green.

riGHt(clockwise from top left)Jenny Do, Land Economist

Rachana Amin, Professional Officer

Jenny Seage, Property Asset Manager

Jo-Anne Harrison, Manager/Reporting and Financial Systems and Judy Green, Manager/Business Services

52 CorPorAteGovernAnCe>TransGridannualreporT2009

TransGridannualreporT2009>CorPorAteGovernAnCe 53

corporaTeGoVernanceleAdinGresPonsiblyAndwitHACCountAbility

TransGrid’sboardandmanagementsupportanenvironmentthatencouragesaccountabilityamongstallemployeestodeliveraserviceinthebestinterestsofshareholders,thecommunityandourstakeholders.

AboveriGHtPeter French at Bannaby Substation.


msmAtinAPAPAtHAnAsiou(bComm,ll.b)Director MsMatinapapathanasiouwasappointedtotheTransGridboardon13thdecember2004.

Matinahasover20yearsfundsmanagementandinvestmentbankingexperienceandhasspecialisedintheinfrastructuresectorwithsignificantexperienceintheenergysector.MatinaisemployedbyQicasapartneroftheGlobalinfrastructureinvestmentteam,whichmanagesover$2.5billionofinvestmentsinglobalunlistedinfrastructure.priortojoiningQic,MatinawasemployedbytheaMpcapitalinfrastructureteamasHeadofstrategy.shewasalsoamemberofaMpcapital’screditinvestmentcommittee.previously,MatinawasemployedatbankersTrustandMacquariebankintheirprojectadvisoryandstructuredfinancegroupsfocussingoninfrastructure.shecommencedhercareerwitharthurandersenwhereshewasemployedasataxadviser.

Matinaholdsabachelorofcommerce(majoringinaccounting,financeandsystems)andabacheloroflawsfromtheuniversityofnewsouthWales.in1985shewasadmittedasasolicitorofthesupremecourtofnewsouthWales(australia).Matinaiscurrentlyadirectorofbrisbaneairport,Westlink(M7Tollroad)andisontheboardandinvestmentcommitteeoftheinfrastructureindiaHoldingsfund.

MatinabringstotheTransGridboardstrongexperienceinfinance,governance,commercialnegotiationsandregulation.

mrnevillebetts(GAiCd)Director MrnevillebettswasappointedtotheTransGridboardon30thjune1998.

nevilleiscurrentlytheassistantsecretaryoftheelectricalTradesunionofaustraliansWbranch.nevillehasbeenaunionofficialsince1984.Heisalsoamemberofthedivisionalcouncilpowerindustrycommittee,deputychairmanoftheacTutilitiesandlightManufacturerindustryTrainingadvisoryboard(iTab),amemberofthenationalTrainingadvisoryGroup(nTaG)fortheelectricalTransmissionanddistributionindustry,VicepresidentofunionsacTandamemberoftheacTlaborcouncilexecutive,andformermemberoftheacTGovernmentindustrialrelationsadvisorycommittee.inaddition,nevilleisamemberoftheaustralianinstituteofcompanydirectorsandaGraduateoftheMountelizabusinessschool.

neville’sin-depthunderstandingoftheelectricityindustry,anditsassociatedindustrialrelations,trainingandunionactivities,isaninvaluableresourceoftheboard.

mrbruCeFoy(bComm,ll.b)Director and ChairmanMrbrucefoywasappointedtotheTransGridboardon15thdecember2005andwasTransGrid’sactingchairmanfrom1stfebruary2008untilbeingappointedchairmanon30thjune2009.

brucehasheldvariouspositionswithinthebankingindustry,mostrecentlyasManagingdirectorcountryHeadoftheinGbankn.V,apositionhehelduntil2005.currently,bruceisadirectorofthefinancialplanningassociationofaustralialtd,adirector/TrusteeofthefirststatesuperannuationTrusteecorporationandadirectorofThedoctorsHealthfundltdandsouthernuraniumltd.

brucewasadmittedasabarristerofthesupremecourtofnsWin1989andholdsabacheloroflawsandabachelorofcommerce,bothfromtheuniversityofQueensland.

bruceisalsoafellowoftheaustralianinstituteofcompanydirectors.brucebringstotheTransGridboardextensiveexperienceincorporateandfinancialmanagement.

ourboArdoFdireCtors


tHeHon.joHnPriCeAm,(mAiCd,jP,imareng,ieng,oFieAust.)Director TheHon.johnpriceaMwasappointedtotheTransGridboardon5thfebruary2008.

priortohisappointmenttotheboard,johnbeganhiscareeratthestatedockyardleavingin1982asassistantGeneralManagerandengineeringManagertotakeupaconsultingrole.in1984,hewaselectedtothensWlegislativeassembly,firstlyastheMemberforWaratah,andin1999,astheMemberforMaitland,retiringin2007asdeputyspeaker.

john’spreviousdirectorshipsincludenewcastlefMptyltdand2Hdbroadcastersptyltd.Heservedaschairmanofbothcompaniesfrom1997to1999.johnisalsoamemberofthecounciloftheuniversityofnewcastleandchairofHunteruni-clinicsproprietarylimited.

johnbringstotheboardawealthofknowledgefromhislengthycareerinpolitics,alongwithastrongcommercialandadministrativebackground.

mrmiCHAelnuGent(FCPA,AiCd)Director MrMichaelnugentwasappointedtotheTransGridboardinaugust2008andisalsocurrentlyadirectoroflivecorpwhichprovidesservicestotheliveanimalexportsector.

Michaelwasformerlyanon-executivedirectoroferaringenergy,railaccesscorporationandsnowyMountainsengineeringcorporationintheenergyandinfrastructuresector.HewaspreviouslythechiefexecutiveandanexecutivedirectorofGoodmanfielderlimited(1990–1994)andtheManagingdirectorofeldersagribusinessandanexecutivedirectorofitsparentcompanyfostersbrewingGrouplimited(1983-1990).Healsoheldanumberofgeneralmanagement,marketingandfinancialpositionsinthefood,transportandvehicleindustriesrespectivelywithHenryjonesixllimited,brambles,ansettandthebritishleylandMotorcorporation(1965–1982).earlyinhiscareerheworkedforpeatMarwicknowkpMG(1961–1965)andsubsequentlycompletedhisprofessionalaccountingtrainingin1968andiscurrentlyanfcpa.

MichaelbringstotheTransGridboardabroadrangeofskillsandexperience:inmanagement,strategy,governance,marketingandfinance.Healsohasexperienceininfrastructureandtheexecutionoflargecapitalprojectsacrossabroadrangeofindustries.

mrkevinmurrAy(beelec,dipbusinessstudies,FAiCd)Executive Director and Managing Director MrkevinMurraywasappointedasanexecutivedirectorontheTransGridboardon10thjune2005.

asManagingdirectorofTransGrid,kevinisresponsibleforthedevelopment,operationandmaintenanceofthensWbulkelectricitytransmissionnetwork.

sincehisappointmentthemainfocusoftheorganisationhasbeenonsuccessfullydeliveringanenlargedcapitalworksprogram,improvingefficiency,maintainingreliabilityandpreparingaprofessionalandcrediblerevenueresetsubmissiontotheaustralianenergyregulatorfortheperiod2009to2014.Therehasalsobeenacontinuingfocusonsafetyandenvironmentaswellasanemphasisonsuccessionplanningwithasubstantialincreaseintherecruitmentoftrainees.

kevinischairmanofTransGrid’sexecutiveoccupationalHealthandsafetycommitteeandexecutiveenvironmentcommittee.kevinalsorepresentsTransGridonanumberofexternalindustryrelatedcommittees,includingneMMco’sparticipantadvisorycommitteeandGridaustralia.HeisacurrentdirectoroftheenergynetworkassociationandtheenergyindustriessuperannuationschemeboardandapastdirectorofthenationalsafetycouncilofaustraliaandthenewsouthWalesenergyandWaterombudsmanboard.

kevinisalsoafellowoftheaustralianinstituteofcompanydirectors.

kevinbringstotheTransGridboard40yearsexperienceinthetransmissionbusiness.

msClAremAnnion(b.ed)Board Secretary MsclareMannionwasappointedasboardsecretaryinseptember2008.clarehaseightyearsexperienceatTransGridinavarietyofadministrativeroles.clareisagraduateoftheMountelizabusinessschoolandiscurrentlyinherfinalsemesteroftheGraduatediplomainappliedcorporateGovernanceatcharteredsecretariesaustralia.


NETwORk SERvICESvic Galea

CAPITAL PROGRAm DELIvERY

Chris FitzGerald

NETwORk PERFORmANCE

AND OPERATIONSLionel Smyth

CORPORATEmichael Gatt

mANAGING DIRECTORkevin murray

NETwORk DEvELOPmENT AND

REGuLATORY AFFAIRSPeter mcIntyre

CHIEF FINANCIAL OFFICER/COmmERCIAL

Tony meehan

BuSINESS SERvICESPaul Phillips

mrPetermCintyrebsc,be(Hons),mbA(technologymanagement),FieAust,GAiCdGeneral Manager/Network Development and Regulatory Affairs responsibleforplanningthedevelopmentofthetransmissionnetwork,includingitstelecommunicationsandsupportinginfrastructureandsystems,andtheassociatedregulatoryprocesses.ThebusinessunitalsomanagesTransGrid’sregulatorystrategyandrelationships,neMcompliance,transmissionpricingandcustomerconnectionprocesses.aprimarychallengeforthebusinessunithasbeenthemanagementofTransGrid’srevenueapplicationtotheaerfortheperiod2009to2014.

ourexeCutiveleAdersHiPteAm

mrCHrisFitzGerAldbsc,be(Hons),me,Graddip(busAdmin),FieAust,CPengGeneral Manager/ Capital Program DeliveryresponsibleforsupportingtheongoingperformanceofTransGrid’shighvoltagetransmissionassetsandassociatedprotection,meteringandcommunicationsecondarysystems,throughtheexecutionofTransGrid’sMajorcapitalWorksprogram.capitalprogramdeliveryalsoprovidestechnicalsupporttootherbusinessunitsthroughthedeliveryofdesignsandadviceforminorprojects,replacementprojectsandotherassetmanagementactivities.Thebusinessunit’sspecialisedexpertiseandcapabilitiesarealsoappliedtonon-regulatedprojectsassociatedwithTransGrid’sassets.

mrviCGAleAbe(elec),GAiCdGeneral Manager/Network Services responsibleformanagingandmaintainingTransGrid’shighvoltagetransmissionsystemassetsandassociatedprotection,metering,controlandcommunicationsecondarysystemsinaccordancewithcorporatepoliciesandstrategicdirections.Thebusinessunitisalsoresponsibleforthemaintenanceofpropertyandeasementsassociatedwiththenetworkassets,thefieldmanagementandcommissioningofcapitalprojectsandundertakingexternalworkthatisconsistentwithitsexpertise.Theseobjectivesareachievedsoasnottocompromisesafety,communityandenvironmentalcommitments.


mrmiCHAelGAttAdv.Certelectrotechnology,dip.elecengineering,b.Comm,(business)General Manager/Corporate responsibleforrepresentingTransGridasacorporateentity,bytakinganactiveroleinhowTransGridinteractswithstakeholders,thecommunity,shareholders,andthegeneralpublic.Thisbusinessunitisprimarilyresponsibleforproperty,corporaterelations,publicaffairs,corporatecommunication,strategicdevelopment,corporatesocialresponsibility,corporateriskandaudit,stakeholderManagement,publications,legalandMedia.

mrtonymeeHAnb.CommCPAChief Financial Officer responsibleformanagingTransGrid’scommercialandcorporatefinancialinterests.ThisincludesimplementingandmanagingTransGrid’sinvestment,banking,debtportfolioandinsurancearrangements.itincludesresponsibilityforcorporateaccounting,taxation,accountingsystemsandthedevelopmentoffinancialstrategies,policiesandsystems.Thecommercialbusinessunitalsoincorporatestheprocurementfunction.

mrlionelsmytHbe(elec),Gradmgtqual,GAiCdGeneral Manager/ Network Performance and OperationsresponsibleforensuringthesecurityandreliabilityoftheelectricitytransmissionnetworkthroughoutnewsouthWalesinaccordancewiththenationalelectricityrules.Thebusinessunitdeterminesoperatingpolicy,strategiesandinstructionsfornetworkoperation;developsfacilitiesformonitoringandcontrol;operatesthesystemfromthecontrolcentres;liaiseswithneMMcoanddistributorstoensureeffectivecoordinationofoperatingactivitiesanddevelopsappropriatemaintenanceandassetmanagementstandards.

mrPAulPHilliPsbe(Hons),bsc,mmgtGeneral Manager/Business ServicesresponsibleforawiderangeofcorporateandbusinesssupportfunctionswithinTransGridintheareasofenvironmentalcomplianceandservices,healthandsafety,humanresources,informationtechnologyservicesandbusinesscommunicationservices,regionalprocurement,fleetmanagement,logisticsandqualityandexecutiveservices.businessservicesdevelopspoliciesinaconsultativemannerthroughanumberofexecutivecommittees.


CorPorAteGovernAnCeourCHArterTransGridwasestablishedasastatutorystateownedcorporationon14december1998,operatingundertheEnergy Services Corporations Act 1995.

section6coftheEnergy Services Corporations Act 1995givesTransGrid,asanenergytransmissionoperator,twoprincipalfunctions,whichare:

> toestablish,maintainandoperatefacilitiesforthetransmissionofelectricityandotherformsofenergy.

> toprovideservicesforthetransmissionofelectricityandotherformsofenergyinaccordancewiththerelevantregulatoryregime.

ThesectionalsoempowersTransGridtoutiliseanddevelopitselectricitytransmissionfacilitiestocarryouttelecommunicationsservices.

TheprincipallegislationgoverningTransGrid’soperationsaretheEnergy Services Corporations Act 1995,theElectricity Supply Act 1995andtheState Owned Corporations Act 1989.

oursHAreHoldersTransGrid’sboardandexecutivebelievethatgoodgovernanceisvitalforahigh-performingandsustainableorganisation.

TheboardisaccountabletothevotingshareholdersfortheperformanceofTransGrid.Therearetwovotingshareholdersatanyonetime,eachholdingthesamenumberofsharesandthesamerights.TheshareholdersholdtheirsharesonbehalfofthensWGovernment.

asat30june2009,TransGrid’sshareholderswere:

> TheHon.ericroozendaal,Mlc,Treasurer

> TheHon.joeTripodi,Mp,Ministerforfinance.

ourministerfrom1july2007to30june2008,TransGridformedpartoftheportfoliooftheHon.ianMacdonaldMlc,Ministerforprimaryindustries,Ministerforenergy,MinisterforMineralresources,andMinisterforstatedevelopment.

boArdoFdireCtorsThe board is responsible for providing effective guidance and direction; independence in decision making; an effective system of corporate governance and executive development and succession planning.

Board CharterTheprincipalobjectivesandfunctionsofTransGridandthestructureandcompositionoftheTransGridboardarelaidoutintheEnergy Services Corporations Act 1995 No. 95;theState Owned Corporations Act 1989 No. 134andTransGrid’sconstitution.

TransGrid’sboardoperatesinaccordancewiththebroadprinciplessetoutinitsboardcharter.Thischarterdetailstheboard’sstructureandresponsibilitiesandisreviewedonanannualbasis.inaddition,theboardhasacodeofconducttowhichalldirectorsmustadhereandwhichisalsoreviewedonanannualbasis.

Board StructureThe Energy Services Corporations Act 1995providesfortheboardofTransGridtoconsistof:

> theManagingdirector> onedirectortobeappointedby

thevotingshareholdersontherecommendationofaselectioncommitteecomprising:i. twopersonsnominatedbythe

portfolioministerii. twopersonsnominatedbythe

laborcouncilofnewsouthWales,eachbeingapersonselectedbythecommitteefromapanelofthreepersonsnominatedbythelaborcouncil

> atleasttwoandnotmorethanfiveotherdirectorstobeappointedbythevotingshareholdersattheirdiscretion.

Theperiodofappointmentofnon-executivedirectorsisatthediscretionofthevotingshareholders.

onedirectoristobeappointedchairpersonoftheboard.

Board ResponsibilitiesTheresponsibilitiesoftheboardareoutlinedintheboardcharter.Themainresponsibilitiesinclude:

> providingstrategicguidanceanddirectiontothecorporationincludingcontributingtothedevelopmentofandapprovingthecorporatestrategy.

> reviewingandapprovingbusinessplans,theannualbudgetandfinancialplansincludingcapitalexpenditureinitiatives.

> overseeingandmonitoring:– organisationalperformanceand

achievementofstrategicgoalsandobjectives

– compliancewiththecorporation’scodeofethicsandconduct

– progressonmajorcapitalexpenditureandothersignificantcorporateprojects.


> financialperformance.> ensuringthataneffectivesystemof

corporategovernanceexists.> ensuringeffectivemanagement

processesincludingexecutivedevelopmentandsuccessionplanning.

Chairman and Managing DirectorTheboardcharteroutlinestheroleofthechairmanandManagingdirector.

Thechairmanistoprovideleadershipandpromotethecohesivenessandeffectivenessoftheboard.keyrolestobeperformedbythechairmaninclude:

> assistingtheboardtodevelopgoodrelationshipswiththeshareholdingministersandportfoliominister,withtheManagingdirectorandwithotherkeystakeholdersandinterestedparties.

> assistingindividualdirectors,andtheboardasawhole,tounderstandtheirrole,responsibilitiesandaccountabilities.

> Helpingdirectorsunderstandtheirrisksandliabilitiesasindividualmembersandasaboard.

> ensuringacomprehensiveagendaispresentedtoeachmeetingoftheboard.

section20l(2)oftheState Owned Corporations Act 1989andarticle16.7(a)ofTransGrid’sconstitutionprovidethattheManagingdirectorisresponsibleforthedaytodaymanagementoftheoperationsofTransGridinaccordancewiththegeneralpoliciesandspecificdirectionsoftheboard.

Board InductionupontheirappointmenttotheTransGridboard,directorsundergoaninductionprogramtoenablethemtoclearlyunderstandtheexpectationsandrequirementsoftheboard.briefingswiththechairman,theManagingdirectorandtheboardsecretaryarearranged.anumberofessentialdocumentsarealsoprovidedduringthistime,including:

> aletterofappointment> adeedofindemnity> alistoffellowdirectorsandthechairand

contactdetails> acopyofthebusiness’sconstitution> acopyoftheboardcodeofconduct> copiesoftheboard’sandcommittee

charters> acopyofthemostrecentstatement

ofcorporateintentandannualreport> Theboardandcommitteemeeting

schedule> organisationcharts> acopyofthepreviousmonth’smeeting

papersandminutes.

Terms of Office and Remunerationinaccordancewithschedule8,clause5oftheState Owned Corporations Act 1989,adirectormaybeappointedtoholdofficeforaperiodnotexceedingfiveyears.

Theremunerationofeachnon-executivedirectorispaidoutofTransGridfunds,andisdeterminedbytheshareholders.Thetotalincomereceived,orduereceivable,byalldirectorsofTransGridislistedinthenotestothefinancialstatements(note26).TheManagingdirectorisnotentitledtoanyadditionalremunerationforbeinganexecutivedirector.

CommitmentTwelveboardmeetingsandoneadditionalboardandexecutivecorporateplanningsessionwereheldintheyearending30june2009.ofthetwelveboardmeetings,twowereheldatthesydneyWestregionaloffice.Thefirstofthesewasheldinseptember2008tocoincidewiththeTransGridsafetydayandthesecondindecembertomeetwithstaffandtopresentthechairman’ssafetyandenvironmentalawards.

Conflict of InterestTheboardcodeofconductstipulates

thatadirectormustdiscloseintereststotheboard(whichincludespositionsandpecuniaryinterests)incorporations,partnershipsorotherbusinessesthatmayberelevanttotheactivitiesoftheboardoranassociatedcommittee.aregisterofsuchinterestsismaintainedbyTransGrid.

Thefollowingconflictsofinterestweredeclared:

> attheboardmeetingheldonTuesday17thfebruary2009,jpricedeclaredaconflictofinterestwiththeagendaitem‘TamworthtoGunnedah66kVTransmissionlinerefurbishment’.

> attheboardmeetingheldonTuesday16thjune2009,MnugentdeclaredaconflictofinterestwiththeagendaitemonepuronWindfarm.

Therehavebeennootherconflictsofinterestdeclaredfortheyearended30june2009.

Independent Professional Advicedirectorsandboardcommitteeshavetheright,inconnectionwiththeirdutiesandresponsibilities,toseekindependentprofessionaladviceatTransGrid’sexpense.

Disclosure ObligationsTransGridhasaframeworkinplacetoensurethatitmeetsitsdisclosurereportingobligationstoshareholdingministers.

TheTransGridboardaimstoensurethatourshareholdingministersareinformedofallmajordevelopmentsaffectingTransGrid’sstateofaffairs.Thisisprimarilyfacilitatedthrougharangeofdisclosureandreportingtoolsincludingmeetings,progressreports,theTransGridannualreport,regulatorydocumentsandtheTransGridwebsite.

Meetings of the BoardThenumberofmeetingsoftheboardofdirectorsheldduringtheyearended30june2008,andthenumberofmeetingsattendedbyeachdirectorisdisclosedonpage60.

Theboardisresponsibleforprovidingeffectiveguidanceanddirection;independenceindecisionmaking;aneffectivesystemofcorporategovernanceandexecutivedevelopmentandsuccessionplanning.

riGHt(clockwise from top left)Jon Anderson, Civil Inspector

Gregory Spence, SCADA EMS Asset Manager

Dean Jabarin, Apprentice

Lauren Law, Graduate Accountant


Name TransGrid BoardBoard Audit and Risk Committee

Board Committee – Remuneration and

StructureBoard Regulatory

Committee

meetings Attended

meetings Entitled to Attend

meetings Attended


meetings Attended


meetings Attended


mr B E Foy 12 12 5 5 4 4 6 6

mr k N murray 12 12 5 5 4 4 6 6

ms m Papathanasiou 10 12 4 5 x x 6 6

mr N Betts 9 12 x x x x 6 6

The Hon. J Price 11 12 5 5 4 4 1x 1x

mr m Nugent* 10 10 1x 1x 4 4 1x 1x

* appointed1/08/08x notamemberofrelevantcommittee1 directorattendedcommitteemeetingasaninvitee

Strategic Planningonanannualbasis,theTransGridboardandexecutivefacilitatestrategicplanningconferencestoidentifytheorganisationscorporateobjectivesforthefollowingyear.TheoutcomesofthisplanningisreflectedintheStatement of Corporate Intent(sci)andtheCorporate Plan.

ThesciandcorporateplansetoutTransGrid’sstrategicdirectionwhichbecomesthebasisforindividualbusinessunitplans.TransGrid’scorporateplandefinesthekeyobjectives,strategicinitiativesandperformancetargetstomeasureachievement.italsoincludesadetailedoverviewofourcapitalworksprogramfortheforthcomingyear.

boththesciandcorporateplanarepresentedtotheshareholdingministers.

Board CommitteesToassisttheboardinfulfillingitscorporategovernanceresponsibilities,itutilisestheexecutiveboardcommittee,theboardauditandriskcommittee,theboardcommittee–remunerationandstructureandtheboardregulatorycommittee.achartergovernsthesecommitteesandtheboarddelegatesspecificpowersandprocedures.eachcharterdetailsthecommittee’sprimaryfunction,structureandresponsibilities.eachcharterisreviewedonanannualbasis.

Theboardauditandriskcommittee,theboardcommittee–remunerationandstructureandtheboardregulatorycommitteemeetonatleastaquarterlybasisoratsuchtimesasconsideredappropriate.

Theexecutiveboardcommitteemeetsasandwhenrequired.

non-executivedirectorschairtheboardcommittees.seniorexecutivesandmanagementmaybeinvitedtoattendcommitteemeetings.TheManagingdirectorisalsoamemberoftheboardcommittees(excepttheboardauditandriskcommittee).

areportdetailingtheitemsconsideredbythecommitteeistabledatthefollowingboardmeeting.

Executive Board CommitteeTheexecutiveboardcommitteeconsistsofthefollowingdirectors:

Mr B Foy (Chair of the Committee)

Mr K Murray

Theprimaryfunctionoftheexecutiveboardcommitteeistoconsidermattersbetweenboardmeetingswhichwouldotherwiserequireboardapproval.Thematterisdelegatedtotheexecutiveboardcommitteeatthepriorboardmeetingandareportisprovidedtotheboardatthemeetingfollowingtheexerciseofthedelegation.

Board Audit and Risk CommitteeTheboardauditandriskcommitteeconsistsofthefollowingdirectors:

The Hon. J Price (Chair of the Committee)

Mr B Foy

Ms M Papathanasiou

leFt(clockwise from top left)Michael Cross, Apprentice

Greta Metz, Information Communications Technology Project Manager

Michael Stemmer, Tradesperson

Graeme Ludewig, Commodity Manager

oPPositePeter Sutrin, Apprentice

onanannualbasis,theboardandexecutivefacilitatesstrategicplanningconferencestoidentifytheorganisations’corporateobjectives.


Theprimaryfunctionoftheboardauditandriskcommitteeistoassisttheboardinfulfillingitsoversightresponsibilitiesbyreviewingtheoverallauditprocessofthecorporation;thesystemofinternalcontrolwhichmanagementandtheboardofdirectorshaveestablishedandthefinancialinformationwhichwillbeprovidedtotheshareholdingministersandothers.

Board Committee – Remuneration and StructureTheboardcommittee–remunerationandstructureconsistsofthefollowingdirectors:

Mr B Foy (Chair of the Committee)

The Hon. J Price

Mr N Nugent

TheprimaryfunctionofthisboardcommitteeistoassisttheboardindeterminingtheremunerationandemploymentconditionsofTransGrid’sexecutiveandseniormanagementandreviewingtheorganisationalstructureofthecorporation.

Board Regulatory CommitteeTheboardregulatorycommitteeconsistsofthefollowingdirectors:

Ms M Papathanasiou (Chair of the Committee)

Mr N Betts

Mr B Foy

Mr K Murray (Managing Director)

Thisboardcommitteeassiststheboardinmanagingandreviewingregulatorychangesand/orregulatorydecisionsarisingfromthenationalelectricitylaw,rulesandregulations.duringtheyearending30june2009thiscommittee’smainfocuswasonoverseeingthepreparationoftherevenuesubmissiontotheaer.ThiscommitteewasdisbandedinMay2009uponcompletionofthe2009to2014revenueresetprocess.

Remuneration of Directorsnon-executivedirector/–Mrbrucefoy $129,148

non-executivedirector–MsMatinapapathanasiou $76,844

non-executivedirector–TheHon.johnprice $76,012

non-executivedirector–Mrnevillebetts $72,549

non-executivedirector*–Mrnugent $58,050

*appointed1staugust2008.

exeCutiveleAdersHiPteAmPerformance Statementsmr k murray, managing Director,wasassessedbytheboardashavingachievedallkeyperformancecriteriasetinthecorporateplanandthestatementofcorporateintentwiththensWGovernment.Thisincludedmeetingthecapital,operating,reliabilityandefficiencytargetssetbytheaerforthe2004to2009periodandthesubmissionandfinalisationofTransGrid’srevenuedeterminationforthe2009to2014period.

mr P mcIntyre, General manager/Network Development and Regulatory Affairs,wasassessedbytheManagingdirectorashavingachievedallperformancecriteria,includingachievementofthetransmissionplanninganddevelopmentrequirementstofacilitateTransGrid’ssignificantcapitalprogram,theproductionofthe2009annualplanningreport,theimplementationofthelargestnetworksupportarrangementinthenationalelectricityMarket,improvedcustomerandstakeholderrelationships,theeffectivemanagementofTransGrid’sinputtothedevelopmentoftheregulatoryregimefortransmissionintheneMandthemanagementofTransGrid’s2009to2014revenueresetprocesswiththeaer.


mr C FitzGerald, General manager/Capital Program Delivery,wasassessedbytheManagingdirectorashavingachievedallperformancecriteria,withthehighlightbeingthesuccessfulachievementofthemajorcapitalworksprogramforthe2004to2009regulatoryperiodwithmorethan$500millioninexpenditureonover60projectsduring2008/09.includedinthemajorcapitalworksprogramforthispastyeararethecriticalWestern500kVprojectbeingdeliveredontimeandtobudget,withbayswaterandMtpiperswitchyardsbeingenergisedat500kVandalsotheMacarthurandWagganorthsubstationsreachingpracticalcompletionduringthistime.significantprogresshasbeenalsomadeonthedeliveryofthechallenging2009to2014capitalprogramwithmorethan80percentofexpenditureinthe2009/10yearalreadycommittedwithcontractsandthesupplytothecbdprojectprogressingtoschedule.Theincreasedcapabilityofthecapitalprogramdeliverybusinessunittocontinuetodeliverthelargeprogramofworkshasbeenkeytotheseachievements.

mr P Phillips, General manager/Business Services,wasassessedbytheManagingdirectorashavingachievedallperformancecriteriaincludingwarehouserationalisation,resourceplanning,implementationoftheseniorManagerandexecutivedevelopmentprogramsandongoingmanagementofthefutureleadersprogram,leadingtheinformationandcommunicationTechnologyenhancementprograms;TransGrid’ssafetyandenvironmentalcommitmentsandmaintainingcertificationsofTransGrid’ssafetyManagementsystemtoas4801,theenvironmentalManagementsystemtoiso14001andQualitysystemtoiso9001.

mr v Galea, General manager/Network Services,wasassessedbytheManagingdirectorashavingachievedallkeynetworkreliability,availability,maintenanceandconstructiontargetswithinapprovedbudgetsandtimeframeswhilemaintaininghighlevelsafetyperformanceandenvironmentalcompliance.Hedeliveredandcommissionedallplannedmajorprojectsandassetreplacementprograms.Hedevelopedstrategiesandnewconceptsthatwillimproveproductdeliveryprocessestomanagefuturecapitalworksobjectivesandreducesomeoperationalcosts.HemaintainedasustainablestrategicHumanresourceplanthatincludessuccessfulplanstomeetfuturerequirements.

mr T meehan, Chief Financial Officer,sincenovember2008,wasassessedbytheManagingdirectorashavingachievedallperformancecriteria,includingtheeffectivemanagementofallTransGrid’sfinancialfunctions;reviewofTransGrid’sdebt,foreignexchangeandcommodityriskmanagementstrategiesandtheimplementationofnewpolicyarrangements;developmentoffinancialstrategiesforthe2009to2014regulatoryperiod;developmentofnewarrangementsforpricingofnegotiatedservicesandrestructureofthecommercialbusinessunittomeetbusinessrequirements.

mr L Smyth, General manager/Network Performance and Operations,wasassessedbytheManagingdirectorashavingachievedallperformancecriteriaincludingnetworkreliabilityandavailabilitytargets;improvingthesystemsandprocessesacrossthebusinessunitincludingrealtimelineratinganddigitalaerialinspectiontechnologies;producinganewnetworkManagementplan;upgradingthestatecontrolcentreandprovidingcontinuedleadershipinrestructuringofthebusinessunitandrefiningtheVirtualcontrolroom.

mr m Gatt, General manager/Corporate,wasassessedbytheManagingdirectorashavingachievedallperformancecriteria,includingassessingtheneedsofstakeholders;managingmediaandgovernmentrelationsactivities;deliveringeffectivecorporatecommunications,thepropertyportfolio,legalservicesandcorporateplanningfunctions.Thecorporatebusinessunitalsorefinedprocessesformembershipsandstakeholdermanagementaswellasemergencycommunicationsprotocols.

Remuneration Objective TheobjectiveofTransGrid’sexecutiveremunerationframeworkistoensurethatrewardforperformanceiscompetitiveandappropriatefortheresultsdelivered.Theframeworkalignsexecutiverewardwiththeachievementofstrategicobjectivesandthecreationofshareholdervalue,anditconformstomarketbestpracticefordeliveryofreward.

Theboardcommittee–remunerationandstructuredeterminesexecutiveremuneration.eachyearthecommitteecommissionsareportfromanexternalexecutiveremunerationconsultantdetailingequivalentmarketremunerationandarecommendationonsuitableremunerationlevelsforallexecutiveofficers.

allexecutiveofficershaveinplaceawrittenperformanceagreementalignedtoTransGrid’scorporategoals.performanceoutcomesarematchedtoperformancetargets,withremunerationbasedondocumentedperformancelevels.


Remuneration Paid

Name Title Remuneration Paid (2008/09)

MrkevinMurray executivedirectorandManagingdirector $654,842

MrpeterMcintyre GeneralManager/networkdevelopmentandregulatoryaffairs $322,637

MrchrisfitzGerald GeneralManager/capitalprogramdelivery $314,301

Mrpaulphillips GeneralManager/businessservices $292,908

MrVicGalea GeneralManager/networkservices $300,802

MrTonyMeehan chieffinancialofficer $265,911

Mrlionelsmyth GeneralManager/networkperformanceandoperations $279,409

MrMichaelGatt GeneralManager/corporate $261,560

Mrjohnbyrne(retired22/8/08) GeneralManager/commercial $58,771

Qualifications

Name Position Qualifications

MrkevinMurray executivedirectorandManagingdirector be(elec),dipbusstudies,faicd

MrpeterMcintyre GeneralManager/networkdevelopmentandregulatoryaffairs bsc,be(Hons),Mba(TechnologyManagement),fieaust,Gaicd

MrchrisfitzGerald GeneralManager/capitalprogramdelivery bsc,be(Hons),Me,Graddip(busadmin),fieaust,cpeng

Mrpaulphillips GeneralManager/businessservices be(Hons),bsc,MMgt

MrVicGalea GeneralManager/networkservices be(elec),Gaicd

MrTonyMeehan chieffinancialofficer b.comm,cpa

Mrlionelsmyth GeneralManager/networkperformanceandoperations be(elec),GradMgtQual,Gaicd

MrMichaelGatt GeneralManager/corporate adv.certelectrotechnology,dip.elecengineering,b.comm(business)

faicd–fellowaustralianinstituteofcompanydirectorsGaicd–Graduateaustralianinstituteofcompanydirectors

oPPosite(left to right) Garrie Chubb, Manager/Network Planning and David Fayyad, Corporate Relations Manager.


Peter McIntyre, General Manager/Network Development and Regulatory Affairs

Joseph Diver, Graduate Engineer

David Gazzard, Engineering Officer

Gavin Thomas, Graduate Accountant


GuArAnteeoFserviCeTransGridhasdefinedservicecommitmentswithourcustomersthroughourconnectionagreements.TransGrid’sservicelevelsaremonitoredbytheaerandthensWdepartmentofWaterandenergy(dWe).

leGislAtiveCHAnGesAustralian Energy Market Amendment (AEMO and Other Measures) Act 2009ThisactamendedtheRenewable Energy (Electricity) Act 2000andTrade Practices Act 1974toreplacereferencetothenationalenergyMarketManagementcompanylimitedwiththeaustralianenergyMarketoperatorlimited,toreflectthecommencementofasinglenationalenergymarketoperatorforboththeelectricityandgassectorsfrom1july2009.Thisisanimportantreformfortheenergysector.TheaeMowillassumetheresponsibilitiesandfunctionsofexistinggasandelectricitymarketoperators,includingthenationalelectricityMarketManagementcompany.

Carbon Pollution Reduction Scheme Bill 2009 (and other associated proposed legislation)Thisbillispartofapackageofsixbillstogiveeffecttothecarbonpollutionreductionscheme.Thebillgiveseffecttoaustralia’sobligationsundertheunitednationsframeworkconventiononclimatechangeandthekyotoprotocolbyoutlining:entitiesandemissionscoveredbythescheme;liableentities’obligationtosurrenderemissionunitscorrespondingtotheiremissions;limitsonthenumberofemissionsunitsthatwillbeused;thenatureandallocationofaustralianemissionsunits;mechanismstocontaincosts;linkingtootheremissionstradingschemes;assistanceinrelationtoemissions-intensivetrade-exposedactivitiesandcoal-firedelectricitygenerators;voluntaryinclusionofreforestationactivitiesunderthescheme;theaustraliannationalregistryofemissionsunits;andmonitoringandenforcement.

TransGridhasalreadycommencedproactivelymanagingtheimpactofclimatechangeonitsoperationsandwillbewellplacedtorespondtolegislativechangeaffectingit.

ConsumerresPonseTransGridreceivespropertyinformationinquiriesfromsolicitors,conveyancersandthegeneralpublicregardingTransGrid’srightsandintereststhatmayaffecttitletoland.fortheyearending30thjune2009,TransGridrespondedto51,220suchinquiries.responsetimeswerewithindesignatedtimeframes.

Morethan90percentoftheseinquirieswereprocessedusingonlineaccessfacilitiesprovidedbythecentralregisterofrestrictionsadministeredbythedepartmentoflands.

judiCiAldeCisionsTherewerenojudicialdecisionsaffectingTransGridduringtheyear.

ConsultAntFeesduringtheyear,$53,526wasspentonconsultingservicesrelatingtothepreparationofenvironmentalimpactassessments.

riskmAnAGementAndinsurAnCeTheexecutiveauditandriskcommitteeisresponsibleforensuringTransGrid’srisksareidentifiedandeffectivelymanaged.implementationofriskmanagementstrategiesaretheresponsibilityofalllevelsofmanagementwithinTransGridandaframeworkexiststoensurethatallrisksareproactivelyandexplicitlymanagedonanongoingbasis.

Thecorporateauditandriskgroupprovidesassistanceinthedevelopmentandmaintenanceofenterprise-wideriskmanagementplans,trainingstaffinallaspectsofriskmanagementandtheongoingverificationandreviewofriskmitigationactionsacrosstheorganisation.

TransGrid’sinsurancestrategyistoobtainthemostcomprehensiveinsurancecoverageavailableatthemosteconomicalcost.eachyear,TransGridexaminestherisksforwhichitispreparedtoseekcover,theavailableinsurancecoverageorothermeanstomeettheremainingrisksandthecostsofcoveringtheserisks.

implementationofriskmanagementstrategiesaretheresponsibilityofalllevelsofmanagementwithinTransGrid.

leFt(clockwise from top left)

Steve Varelis, Senior Technology Analyst

Sean Nicolas, Engineering Officer

Justin Holland, Engineering Trainee

Lindsay Fulwood, Civil Inspector

oPPosite(left to right) Graduate Engineers: Charles Hitchen, Connie Liang, Jeremy Blackford, Omar Hassanein, Owen Crampton


FrAudPreventionTransGridwillnottoleratefraudorfraudulentconduct,regardlessofwhetherthefraudhasbeenperpetratedonitbyitsemployeesorbyexternalstakeholders.

appropriatestepswillbetakentoprotecttheorganisationfromtheriskoflossarisingfromfraud.

ToachievethisTransGridhasafraudpreventionstrategy/planwhichhassevenmainelementsincluding:

> organisationalresponsibility> fraudriskassessments> notification/reportingsystems

– internal– external

> detectionsystems> assessmentsandinvestigations> conductanddisciplinarysystems,and> awareness

– employeeawareness– communityandcustomerawareness

akeycomponentisthecodeofethicsprogram.

TransGridconductsitsbusinessbaseduponitsvalues.Thesevaluesarethedrivingforcesthatensurethatwecontinuetoaimforthehigheststandardsofintegrity,honestyandfairnessinthewayweworkandinourdealingswithourmanycustomers,contractorsandsuppliers.

TransGridmaintainsasuiteofcodes:

> TransGriddirectorscodeofethicsandconduct–guidelinesforboarddirectorsandassociatedboardcommittees

> ourcodeofethicsandconduct–guidelinesforallemployees

> businessethics–aguidetocontractors,customersandsuppliers.

during2008eachofthesecodeswerereviewedandreissued.

allemployeeswereprovidedwithacopyofourcodeofethicsandconductandwereprovidedwithabriefingfromtheirmanager/teamleaderontherevisedcode.

allnewemployeesreceiveacopyofourcodeofethicsandconductandaremadeawareoftheimportanceofmaintaininghighethicalstandardsthroughdiscussionswiththeirmanager/teamleader,aswellasthroughanonlineinductionprogramwhichrelaystheimportanceofTransGrid’simageandreputationandtheparttheycanplayinthis.

TransGridisalongstandingcorporateMemberofthestjamesethicscentreandprovidesaccessforallemployeestopublicationsfromthecentrebothinhardcopyandviapublicationonourintranet.

TransGridmaintainsa24-hourethicsHelplinewhichallowseasyaccessforstafftoseekethicaladviceorrelayconcernsinaconfidentialmanner.in2008therevisedcodeofethicsandconductandthereviewedbusinessethicsGuidealsopublishedthecontactdetailsforthestjamesethicscentreethic-call,providingemployeeswithanotheroptiontoreceiveconfidentialadviceonanyethicalsituationthattheymaybefacing.

FreedomoFinFormAtionTransGridreceivedtwofreedomofinformation(foi)applicationsundertheFreedom of Information Act 1989in2008/2009.

ThefollowingtableprovidesanoverviewofresponsestorequestsmadeundertheFreedom of Information Act 1989.

TOTAL

FOI Requests 2008–09 2007–08

numbersofrequestsreceived

2 0

broughtforward 0 0

completed 0 0

Transferredout 0 0

unfinished(carriedforward)

0 0

Grantedinfull 0 0

partiallygranted 2 0

refused 0 0

feesreceived $35 0

duringthe2008/2009year:

> TheimpactoftherequirementsoftheactonTransGrid’sactivitieswasminor.

> noissuesaroseinconnectionwithTransGrid’scompliancewiththerequirementsoftheact.

> nodeterminationbyTransGridwasthesubjectofreviewbytheombudsman,theadministrativedecisionsTribunalorthesupremecourt.

allfreedomofinformationrequestscanbedirectedto:

freedomofinformationofficer201elizabethstreetpoboxa1000sydneysouthnsW1235


stAtementoFAFFAirsinformationrequiredundersection14(2)oftheFreedom of Information Act 1989,islocatedasfollows:

> Theagency’sstructureandfunctions:aboutTransGrid

> Thewayitsfunctionsaffectthepublic:environmentandcommunity

> Howthepublicmayparticipateinagencypolicydevelopment:planning,environmentandcommunity

> Thekindsofdocumentstheagencyholds:promotion

> Howmembersofthepubliccanaccessandamendagencydocuments:freedomofinformation.

PrivACyTransGridiscommittedtoadherencewiththeprinciplesofsoundprivacypracticetoensurethatpersonalinformationismanagedinaccordancewiththePrivacy and Personal Protection Act 1998.

TransGridhasaprivacyManagementplaninplacetofacilitateadherencetotheprinciplesoftheactandtocommunicatetoouremployeeshowprivacyismanagedwithintheorganisation.

TransGrid’sprivacyManagementplanisavailabletoallofouremployeesviathecompanyintranet,Transnet.

siGniFiCAntCommitteesExecutive Audit and Risk CommitteeTheexecutiveauditandriskcommitteeensuresthattheeffectivenessofmanagementcontrolismaintained.itoverseesthesettingofpolicies,co-ordinationandcommunicationofriskmanagementstrategiesandensuresthatTransGrid’soverallriskmanagementframeworkoperateseffectively.

Executive Occupational Health and Safety CommitteeTheexecutiveoccupationalHealthandsafetycommitteeprovidesdirectiononpoliciesandproceduresrelatingtooccupationalhealthandsafetymatters,andprovidesexecutivesupporttolocationmanagersandoccupationalHealthandsafetycommittees.

Executive Revenue Reset CommitteeTheexecutiverevenueresetcommitteeimplementsanddevelopstherevenueresetproposalinaccordancewiththestrategyapprovedbytheboard.Thecommitteeendorsestherevenueproposal’skeymessagesandstructure.itdeterminesbusinessunitresponsibilitiesandprovidesresourcesfortherevenueresetproject.

Executive Environment CommitteeThepurposeoftheexecutiveenvironmentcommitteeistosetcorporateenvironmentalpolicyandmonitortheeffectivenessofenvironmentalmanagementwithinTransGrid.

Capital Works Program Steering CommitteeThecapitalWorksprogramsteeringcommitteemonitorsthecapitalworksprogram in TransGrid and facilitates andcoordinatesthedeliveryoftheprogramandspecificindividualprojectsasrequired.Thecommitteealsomonitorstheefficiencyandeffectivenessofthecapitalworksdeliveryprocess.

Executive Protective Security CommitteeTheexecutiveprotectivesecuritycommitteeoverseesandcoordinatesprotectivesecurityandbusinesscontinuityactivitieswithinTransGrid.

Information Technology Executive Committee TheinformationTechnologyexecutivecommittee(iTec)isthegoverningbodyforiT-relatedserviceandinvestmentswithinTransGrid.TheiTecsetsTransGrid’sstrategicdirectionforinformationtechnology.TheiTec’skeyroleistoensurethatiTinvestmentsalignwithbusinessprioritiesanddelivervaluetoenhancebusinessperformance.Toexecutethisrole,theiTecrequiresbusinessunitstoprovideinformationoniTperformanceandcosts.ThisreportingimprovestransparencyandaccountabilityforiTcostsacrossTransGrid.


Exe

cutiv

e Te

am

Exe

cutiv

e A

udit

and

R

isk

man

agem

ent

Co

mm

ittee

Exe

cutiv

e O

ccup

atio

nal

Hea

lth a

nd S

afet

y C

om

mitt

ee

Exe

cutiv

e R

even

ue

Res

et C

om

mitt

ee

Exe

cutiv

e E

nviro

nmen

t C

om

mitt

ee

Cap

ital w

ork

s P

rog

ram

(CA

PE

X)

Ste

erin

g C

om

mitt

ee

Exe

cutiv

e P

rote

ctiv

e S

ecur

ity

Co

mm

ittee

Info

rmat

ion

Tech

nolo

gy

Exe

cutiv

e C

om

mitt

ee (I

TE

C)

kevinMurray ~ ~ ~ ~ ~ ~ ~

chrisfitzGerald ~ ~ ~ ~ ~ ~

VicGalea ~ ~ ~ ~ ~ ~ ~ ~

MichaelGatt ~ ~ ~ ~ ~ ~ ~

peterMcintyre ~ ~ ~ ~ ~ ~

paulphillips ~ ~ ~ ~ ~ ~

lionelsmyth ~ ~ ~ ~ ~ ~ ~ ~

TonyMeehan ~ ~ ~ ~ ~ ~

davidvanbeek ~

ianHarris ~

kennethMccall ~

johnrobinson ~

WayneGlanville ~

kevindodds ~ ~

johnHowland ~ ~

stuartjohnston ~

Megancalvert ~

donpaton ~

danielsartor ~

stevenjones ~ ~

andrewkingsmill

~

MichaelMilne ~

peterHolland ~

Garriechubb ~

TransGrid’sexecutivecommitteesplayavitalroleinensuringtheongoingachievementofourcorporateobjectives.


Barry Gifford, Senior Information Communications Technology Project Manager

Jemmie Ong, Graduate Accountant

Lionel Smyth, General Manager/ Network Performance Operations

Natalie Lukic, Information Technology Asset Management Coordinator

68 CorporateGovernanCe>TransGrid annual reporT 2009

overseasvisitsBelow is a listing of the overseas visits undertaken by TransGrid employees over the reporting period.

overseas visits provide TransGrid with the opportunity to benchmark our performance with other leaders in the industry and learn from them. overseas visits play a key supporting role in helping TransGrid determine the most efficient processes in building a safe, reliable and secure transmission network.

Name Title Countries Purpose of Visit

d. Guille engineering officer new Zealand inspection of materials and drawings for the 500kV Mt piper and Bannaby/Wollar 500kV substation projects.

K. dodds Manager new Zealand participation in the asia pacific utilities Group steering Committee Meeting.

p. phillips General Manager russia Meetings with psC-opTen on phase 3 of the aerial laser survey project.

d. novakovic project engineer russia Meetings with psC-opTen on phase 3 of the aerial laser survey project.

e. lamplough professional officer austria and Germany Witness testing of siemens 145kV shunt reactor for the Beaconsfield West substation.

J. Mouatt professional officer Japan Witness testing of the phase-shifting transformer for armidale substation.

G. saluja professional officer Japan Witness testing of the phase-shifting transformer control system for armidale substation.

n. smith Manager usa attendance at the electric power research institute safety switching Conference.

H. allen engineering officer Finland Witness testing of reactors for the sydney north and sydney east capacitor installations.

C. stevens professional officer Japan Witness testing of the phase-shifting transformer control system for armidale substation.

s. Jones Manager new Zealand attend CiGre High Voltage equipment panel meeting.

M. Grierson engineering officer Thailand Witness testing of 132kV transformer for supply to Coffs Harbour substation.

G. spence Manager sweden sCada / eMs upgrade project design review Meeting.

a. Hammond sCada specialist sweden sCada / eMs upgrade project design review Meeting.

W. Goldsmith sCada specialist sweden sCada / eMs upgrade project design review Meeting.

T. Meehan Chief Financial officer uK undertake work associated with placement of TransGrid’s insurance coverage.

a further two trips, of which the majority of costs were funded by other organisations, were undertaken by TransGrid officers.

Name Title Countries Purpose of Visit

M. Grierson engineering officer Germany Witness testing of 330kV current transformers at the areVa factory.

a. Manglick Manager indonesia attendance at the aorC-CiGre and study Committee C1 Meetings.

overseas visits provide TransGrid with the opportunity to benchmark our performance with other leaders in the industry.

left(clockwise from top left)

Ryan Dunn, Apprentice

Meredith Sturman, Manager/Reset Process Improvement

Ralph Meeks, Engineering Officer

Don McKay, Network Control Manager


CreditCArdusAGecreditcardusageinTransGridisinaccordancewithitsdetaileddocumentedprocedures.TransGridcontinuestopromotethecorrectusageofitscorporatecreditcardsandthereisacontinuousreviewofusagecharacteristicsandauthorisations.

rePortinGexemPtionsThefollowingreportingexemptionshavebeengrantedbynsWTreasurytoenablefinancialreportingrequirementsthatapply,tobebroadlyconsistentwithcorporationsactreportingrequirements,giventhattheentityoperatesinthecompetitivenationalelectricityMarket:

Statutory Requirements Act/Regulation References Comments

Budgets

• detailedbudgetfortheyearreportedon

s.7(1)(a)(iii)arsba

• outlinebudgetfornextyear s.7(1)(a)(iii)arsba

• particularsofmaterialadjustmentstodetailedbudgetfortheyearreportedon

cl6arsbr

reportofoperations s.7(1)(a)(iv)arsba exemptionsubjecttotheconditionthatinformationrelatingtothe“summaryreviewofoperations”istobedisclosedinasummarisedform.

Managementandactivities schedule1arsbr exemptionsubjecttotheconditionthatrelevantinformationistobedisclosedinasummarisedform.

researchanddevelopment schedule1arsbr

Humanresources schedule1arsbr

consultants schedule1arsbr exemptionsubjecttotheconditionthatthetotalamountspentonconsultantsistobedisclosedalongwithasummaryofthemainpurposesoftheengagements.

landdisposal schedule1arsbr

paymentofaccounts schedule1arsbr

Timeforpaymentofaccounts schedule1arsbr

reportonriskManagementandinsuranceactivities

schedule1arsbr exemptionsubjecttotheconditionthatrelevantinformationistobedisclosedinasummarisedform.

investmentperformance cl12arsbr

liabilityManagementperformance cl13arsbr

Abbreviations:arsba annualreports(statutorybodies)act1984arsbr annualreports(statutorybodies)regulation2005


eleCtroniCserviCedeliveryTransGridprovideselectronicservicestoourstaffandpartners.Thisincludesfacilitatingtheabilitytosecurelyaccesselectroniccorporateapplicationsremotelyandthroughtheinternet.

PromotionTransGridiscommittedtoprovidingavarietyofcommunicationvehiclestoinformthepublic,customers,stakeholders,employeesandsuppliers.Throughoutthereportingperiod,publicationsincluded:

> annualreport> nsWannualplanningreport> corporateplan> networkassetManagementplan> easementGuide

> eMfbrochure> capitalWorksprocessbrochure> Varietyofbrochuresandadvertisements

informingstakeholdersaboutTransGrid’sprojects(e.g.factsheets,projectnewsletters).

industriAlrelAtionsPoliCiesAndPrACtiCesTransGridcontinuedtoconsultwithunionsandemployeesonarangeofindustrialmatters.Thisconsultativeapproachhasresultedinnotimelostasaresultoforganisationalindustrialdisputesduringthereportingperiod.

HeritAGemAnAGementTransGriddoesnothaveanyassetslistedasheritageitemsasdefinedunderthelegislation.

CostoFAnnuAlrePortTransGrid’sannualreportwasproducedundertheguidanceofTransGrid’scorporatecommunicationsManagerinconjunctionwithanexternalgraphicdesignfirm.Thetotalexternalcostincurredintheproductionoftheannualreportwas$45,268.

TheannualreportisavailableonTransGrid’swebsite(www.transgrid.com.au).

lAnddisPosAlThefollowingsurpluslandwasdisposedofduring2008/09:

Name Lot DP Sale Date New owner Comment

augmentationofkempseysubstation

partlot102dp866563disposednowformspartoflot1indp1121926

sale/landswap

sale/landswap

11.07.08 countryenergy

lot1isnow1.290hatoinclude604squaremetresfromtheformerlot102transferredtoce.

stampdutyvaluationat$750

landatbulgasingleton 1 555234 auctionsale

23.09.08 soldtolindsayGordonHarrisandGillianMayferguson

expatrolhutsitesoldatauctionfor$32,000

TransGridiscommittedtoprovidingavarietyofcommunicationvehiclestoinformthepublic,customers,stakeholders,employeesandsuppliers.

leFt(clockwise from top left)

Garrie Smith, former Manager/Southern Region

David Thretheway, Manager/Stakeholders and Strategic Projects

Neil Mitchell, Project Engineer

James Bradley, Apprentice

TransGridannualreporT2009>FinAnCiAls 71

2008/09financialsContents73 inComestAtement

74 bAlAnCesHeet

75 CAsHFlowstAtement

76 stAtementoFreCoGnisedinComeAndexPense

77 notestotHeFinAnCiAlstAtements

101stAtementbymembersoFtHeboArd

102indePendentAuditor’srePort

72 CommerCiAlrePort>TransGridannualreporT2009

Thefinancialyearwasmadeupoftwoverydifferenthalves.duringthesecondhalfof2008,TransGridexperiencedsignificantcostpressuresasareflectionofthebuoyantaustralianeconomy.TherecordlevelofprofitsisanindicatorthatTransGridhashadastrongfocusoncontrollingoperatingexpenditure.bythesecondhalfofthefinancialyearTransGridwasbeingimpactedbytheuncertainfinancialconditionscreatedbytheglobalfinancialcrisis.TransGridhasactedtomitigatetherisksfacedfromtheglobalfinancialcrisiswithareviewofitsdebtmanagementpoliciesandcloselymonitoringthefinancialstatusofkeysuppliers.

duringtheyearTransGriddeliveredarecordcapitalworksprogram,withatotalexpenditureof$619.9million.inordertofundthiscapitalexpenditure,TransGridborrowed$457.3millionwithitstotaldebtincreasingto$1,988.9million.Theyearwasalsooneinwhichtheaerapprovedaregulatedcapitalworksprogramof$2.4billionforthe2009to2014regulatoryperiod,withdetailedplanningforthefinancingofthislargecapitalworksprogramcommencingduringtheyear.

TheprofitsgeneratedintheyearhaveresultedinTransGriddeclaringdividendpaymentstoitsshareholdersof$120.2million.

arestructureoftheorganisationinseptember2008resultedintheestablishmentofthepositionofchieffinancialofficer.TonyMeehanwasappointedtothispositioninoctober2008andhasenabledthestaffofthecommercialbusinessunittoundertakesomesignificantreviewsoftheorganisation’sfinancialmethodsandcommercialpractices.Thiscoupledwithanincreasedfocusonoperationsisexpectedtoenhancethestrongfinancialperformanceoftheorganisation.

afteradetailedreview,anewdebtandinvestmentriskManagementpolicywasapprovedbytheboardinapril2009.Thestrategiesadoptedinthenewpolicywillresultinchangestotheongoingdebtportfoliotomanagethekeyobjectivesofminimisinginterestexpenseandprofitvolatilitywhilemitigatingpotentialrefinancingrisks.changestoworkingcapitalstrategieswillresultinreductionsinfinancingchargesbeingrealisedinthe2009/10financialyear.

TheglobalfinancialcrisishasimpactedthedefinedbenefitsuperannuationschemescontributedtobyTransGrid.Thereductioninthefairvalueoftheplan’sassetsandincreasesinthepresentvalueofthedefinedbenefitobligations,resultedinTransGridrecordingactuariallossesof$133.2million.Theselosseshavebeenrecognisedthroughanadjustmenttoretainedearnings.

adetailedrevaluationofTransGrid’sfixedassetswascarriedoutduringtheyear.asrequiredbyaccountingstandards,animpairmenttesthasbeenappliedtotheresultingvaluesandanimpairmentlossof$919millionwasbroughttoaccountasareductiontotheassetrevaluationreserve.

CommerCiAlrePort

despiteachallengingfinancialenvironmentduring2008/09TransGridhasbeenabletoachievearecordprofitbeforetaxof$217.4million.Theprofitreflectsastrongfocusoncontrollingroutineoperatingexpenditure,managingfinancingcostsandanincreaseinnon-prescribedrevenue.

TransGridannualreporT2009>Income Statement 73

Income StatementForTheyearended30ThJune2009

2009 2008 note $’000 $’000

income 3 652,797 572,987

expensesexcludingFinanceCosts 4 (330,304) (280,553)

FinanceCosts 4 (105,072) (101,882)

Profit/(Loss) Before Income Tax Expense 217,421 190,552

incomeTaxBenefit/(expense) 6(a)(i) (67,130) (58,165)

Profit/(Loss) For The Year 150,291 132,387

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

BegInnIng of audIted fInancIal RepoRt

74 Balance Sheet>TransGridannualreporT2009

Balance Sheet asaT30ThJune2009

2009 2008 note $’000 $’000

cuRRent aSSetS Cashandcashequivalents 7 20,861 30,571

Tradeandotherreceivables 8 110,096 69,857

inventories 9 27,634 25,699

derivatives 10 3,018 61

other 11 2,295 1,331

Total Current Assets 163,904 127,519

non-cuRRent aSSetS deferredtaxassets 6(b) 73,658 34,504

derivatives 10 1,521 5

property,plantandequipment 12 4,390,275 3,531,916

intangibles 13 537,535 523,067

other 14 4,008 3,603

Total Non-Current Assets 5,006,997 4,093,095

Total Assets 5,170,901 4,220,614

cuRRent lIaBIlItIeS Borrowings 375,738 143,485

Tradeandotherpayables 16 130,894 144,318

provisions 17 189,616 169,541

Currenttaxpayable 17,877 23,564

derivatives 18 1,020 8,714

other 19 175,080 67,494

Total Current Liabilities 890,225 557,116

non-cuRRent lIaBIlItIeS Borrowings 1,613,190 1,388,107

deferredtaxliabilities 6(b) 664,768 506,812

Tradeandotherpayables 16 2,973 5,413

provisions 17 11,929 10,440

derivatives 18 279 2,508

Total Non-Current Liabilities 2,293,139 1,913,280

Total Liabilities 3,183,364 2,470,396

Net Assets 1,987,537 1,750,218

equIty Capital 20 651,967 651,967

reserves 21 1,286,367 986,779

retainedearnings 22 49,203 111,472

Total Equity 1,987,537 1,750,218


TransGridannualreporT2009>caSh flow Statement 75

2009 2008 note $’000 $’000

caSh flowS fRom opeRatIng actIvItIeSCashreceiptsfromCustomers 664,245 579,981

Cashpaidtosuppliersandemployees (269,018) (164,290)

FinanceCostspaid (111,057) (101,279)

interestreceived 2,028 1,909

incomeTaxpaid (42,424) (18,905)

netCashFlowsfromoperatingactivities 30(e) 243,774 297,416

caSh flowS fRom InveStIng actIvItIeSpurchaseofproperty,plantandequipment,andintangibles (607,327) (289,854)

proceedsfromthesaleofproperty,plantandequipment 2,268 4,453

netCashFlowsfrominvestingactivities (605,059) (285,401)

caSh flowS fRom fInancIng actIvItIeS proceedsfromBorrowings 1,245,985 361,835

repaymentsofBorrowings (788,500) (282,200)

dividendspaid 17(a) (105,910) (71,482)

netCashFlowsfromFinancingactivities 351,575 8,153

netincrease/(decrease)inCashandcashequivalents (9,710) 20,168

CashandcashequivalentsatBeginningoftheFinancialyear 30,571 10,403

Cash and cash equivalents at the End of the Financial Year 30(a) 20,861 30,571


caSh flow StatementForTheyearended30ThJune2009

76 Statement of RecognISed Income and expenSe > TransGridannualreporT2009

Statement of RecognISed Income and expenSeForTheyearended30ThJune2009

2009 2008 note $’000 $’000

assetrevaluationreserve:netincrease/(decrease)inrevaluations, 21 414,560 75,958includingimpairments

netunrealisedGains/(losses)reserve:netgains/(losses)takento 21 – (426)equityonavailable-for-salefinancialassets

CashFlowhedgereserve:netmovementinequity 21 14,397 (2,895)

superannuationactuarialGains/(losses) 5(b) (133,287) (39,499)

incometaxonitemstakendirectlytoequity 6(a)(ii) (88,409) (10,916)

Net income recognised directly in equity 207,261 22,222

profitfortheyear 150,291 132,387

Total recognised income and expense for the year attributable to members of TransGrid 357,552 154,609

effect of change In accountIng polIcy profitfortheperiodasreportedin2008 104,738

Changeofpolicy–actuariallosses 27,649

restatedprofitfortheperiod 132,387


TransGridannualreporT2009>noteS to the fInancIal StatementS 77

noteS to the fInancIal StatementSForTheyearended30ThJune2009

1. coRpoRate InfoRmatIonThefinancialreportofTransGridfortheyearended30June2009wasauthorisedforissueinaccordancewitharesolutionofthedirectorson10september2009.

TransGridisastatutorystateownedCorporationunderthestateownedCorporationsact,1989andwascorporatisedundertheenergyservicesCorporationsamendment(TransGridCorporatisation)act,1998.

2. SummaRy of SIgnIfIcant accountIng polIcIeS(a) Basis of preparation Thefinancialreportisageneral-purposefinancialreport,andhasbeenpreparedinaccordancewithaustralianaccountingstandardsincludingaccountinginterpretations;therequirementsofthepublicFinanceandauditact,andregulation;thestateownedCorporationsact,1989;andrelevantTreasuryCirculars.

property,plantandequipment,assetsclassifiedasheldforsale,derivativefinancialinstruments,andavailable-for-salefinancialassetsaremeasuredatfairvalue.otherfinancialstatementitemsarepreparedinaccordancewiththehistoricalcostconvention,exceptasotherwisestatedinthefinancialreport.

Wherenecessary,comparativeinformationhasbeenreclassifiedtoconformtothecurrentyear’spresentation.

allamountsareroundedtothenearestthousanddollars($’000)andareexpressedinaustraliancurrency.

(b) Statement of complianceThefinancialreportcomplieswithaustralianaccountingstandards,whichincludetheaustralianequivalentstointernationalFinancialreportingstandards(aeiFrs).ThefinancialreportalsocomplieswiththeinternationalFinancialreportingstandards(iFrs).

(c) new australian accounting Standards and Interpretations not yet adoptedaustralianaccountingstandardsandinterpretationsthathaverecentlybeenissuedoramendedbutarenotyeteffectivehavenotbeenadoptedbyTransGridinpreparingthisfinancialreport.

Thefollowingstandards,amendmentstostandardsandinterpretationshavebeenidentifiedasthosewhichmayimpactTransGridintheperiodofinitialapplication:

> aasB101(issuedseptember2007),aasB2007-8(issuedseptember2007)andaasB2007-10(issueddecember2007)relatetopresentationoffinancialstatements.

> aasB2008-9(issuedseptember2008)relatestoamendmentstoaasB1049forconsistencywithaasB101.

> aasB123andaasB2007-6(bothissuedJune2007)relatetoborrowingcosts.

> aasB2008-5andaasB2008-6(bothissuedJuly2008)relatetoamendmentstoaustralianaccountingstandardsarisingfromtheannualimprovementsproject.

> aasB2008-8(issuedaugust2008)relatestoeligiblehedgeditems.

> aasB8(issuedFebruary2007)replacesthepresentationrequirementsofsegmentreportinginaasB114.

> aasB2007-3(issuedFebruary2007)relatestoamendmentstoexistingaccountingstandardsasaresultofthenewaasB8.

> aasB2009-2(issuedapril2009)relatestofinancialinstrumentdisclosures.

> aasB2009-7(issuedJune2009)relatestoamendmentstoaustralianaccountingstandards.

> interpretation18(issuedMarch2009)relatestothetransferofassetsfromcustomers.

allofthesepronouncementsareapplicablefortheyearcommencing1July2009.ThenewstandardsareconcernedwithdisclosuresandwillhavenodirectimpactonTransGrid’sfinancialresults.

(d) Significant accounting Judgements, estimates and assumptions made by managementinapplyingTransGrid’saccountingpolicies,managementcontinuallyevaluatesjudgements,estimatesandassumptionsbasedonexperienceandotherfactors,includingexpectationsoffutureeventsthatmayhaveanimpactonTransGrid.alljudgements,estimatesandassumptionsmadearebelievedtobereasonable,basedonthemostcurrentsetofcircumstancesavailabletomanagement.actualresultsmaydifferfromthejudgements,estimatesandassumptions.significantjudgements,estimatesandassumptionsmadebymanagementinthepreparationofthesefinancialstatementsareoutlinedbelow:

(i) Significantaccountingjudgements

ImpairmentTransGridassessesimpairmentofallassetsateachreportingdatebyevaluatingconditionsspecifictoTransGrid’sbusinessasawhole,whichmayleadtoimpairment.ifanimpairmenttriggerexists,therecoverableamountofthevalueinuseforthebusinessisdetermined.Furtherdetailsonthevalueinusecalculationsandadjustmentforimpairmentaredisclosedinnote2(h).

Recovery of Deferred Tax Assetsdeferredtaxassetsarerecognisedfordeductibletemporarydifferencesasmanagementconsidersthatitisprobablethatfuturetaxableprofitswillbeavailabletoutilisethosetemporarydifferences.

Long Service Leave ProvisionTransGrid’sliabilityforemployeebenefitsrelatingtolongserviceleaveismeasuredusingthecurrentcostapproach,whichapproximatesthepresentvaluebasis.periodiccomparisonisundertakenofthetwomeasurementbases,inconjunctionwithanindependentactuarialreview.Management’sjudgement,basedonhistoricalexperience,isappliedindeterminingwhethertheresultingdifferencemateriallyimpactsontheliabilityvaluationrecognisedinthefinancialreportandrequiresanadjustmenttoaligntopresentvaluemeasurement.

Workers’ Compensation ProvisionTheliabilityforworkers’compensationisbasedonanannualindependentactuarialassessment,supplementedbymanagementconsiderations,toarriveatabestestimateoftheexpenditurerequiredtosettlepresentconsiderationsatthereportingdate.Theestimatecontainsuncertaintybecausevariablesusedincalculationscannotbeeasilyquantifiedormeasuredinadvanceofapossibleoccurrence.

(ii)Significantaccountingestimatesandassumptions

Allowance for impairment loss on receivables from trade and other debtors Wherereceivablesareoutstandingbeyondthenormaltradingterms,thelikelihoodofrecoveryofthesereceivablesisassessedbymanagement.Thisassessmentisbasedonsupportablepastcollectionhistoryandhistoricalwrite-offsofbaddebts.

Estimation of useful lives of assetsTheestimationoftheusefullivesofassetsisbasedonhistoricalexperience,industrycomparisons,aswellasexpectedusage,physicalwearandtear,andtherateoftechnicalandcommercialobsolescence.Furtherinformationontheestimationofusefullivesisdisclosedinnote2(f)(iv).

78 noteS to the fInancIal StatementS > TransGridannualreporT2009


(e) changes in accounting policies(i) SuperannuationActuarialGainsandLossesinaccordancewithnsWTreasurypolicy,theentityhaschangeditspolicyontherecognitionofsuperannuationactuarialgainsandlosses.suchactuarialgainsandlossesarenowrecognisedoutsideofprofitorlossinthe‘statementofrecognisedincomeandexpense’.previously,actuarialgainsandlosseswererecognisedthroughtheincomestatement.BothoptionsarepermissibleunderaasB119Employee Benefits.

Thechangeinpolicyhasbeenadoptedonthebasisthatrecognitionoutsideoftheincomestatementprovidesreliableandmorerelevantinformationasitbetterreflectsthenatureofactuarialgainsandlosses.Thisisbecauseactuarialgainsandlossesarere-measurements,basedonassumptionsthatdonotnecessarilyreflecttheultimatecostofprovidingsuperannuation.

recognitionoutsideoftheincomestatementalsoharmonisesbetterwiththeGovernmentFinancestatistics/Gaapcomprehensiveincomepresentationforthewholeofgovernmentandgeneralgovernmentsector,requiredunderaasB1049Whole of Government and General Government Sector Financial Reporting.acomprehensiveincomepresentationwillalsobeavailableattheentitylevelfrom2009/10underaasB101Presentation of Financial Statements.

Thechangeinaccountingpolicyincreases2009“profit/(loss)fortheyear”from$57.0mto$150.3m(2008:from$104.7mto$132.4m),byexcludingfromprofitthesuperannuationactuariallosslineitem(2009:$133.3m,2008:$39.5m),alongwiththeassociatedandoffsettingincometaxrevenue(2009:$40.0m,2008:$11.9m).Boththeseitemsarenowrecognisedinthestatementofrecognisedincomeandexpenseratherthantheincomestatement.

(ii)Otherallotheraccountingpoliciesareconsistentwiththoseappliedinthepreviousyear.

(f) property, plant and equipment(i) AcquisitionofAssetsThecostmethodofaccountingisusedfortheinitialrecordingofallacquisitionsofassetscontrolledbyTransGrid.Costistheamountofcashorcashequivalentspaidorthefairvalueoftheotherconsiderationgiventoacquiretheassetatthetimeofitsacquisitionorconstruction.CostincludesinterestonborrowingsrelatedtoQualifyingassetsasdetailedinnote2(f)(iii).

assetsacquiredatnocost,orfornominalconsideration,areinitiallyrecognisedattheirfairvalueatthedateofacquisition.

(ii)Revaluationsproperty,plantandequipmentarevaluedinaccordancewithnsWTreasurypolicyTpp07-1Valuation of Physical Non-Current Assets at Fair Value.

Fairvalueofproperty,plantandequipmentisdeterminedbasedonthebestavailablemarketevidence,includingcurrentmarketsellingpricesforthesameorsimilarassets.Wherethereisnoavailablemarketevidence,theasset’sfairvalueismeasuredatitsmarketbuyingprice,thebestindicatorofwhichisdepreciatedreplacementcost.

TransGridrevaluesdepreciableproperty,plantandequipmentbyreferencetocurrentpricesforassetsnewerthanthosebeingrevalued,andadjuststhoseamountstoreflectthepresentconditionoftheasset.Theaccumulateddepreciationfortherevaluedassetisrestatedproportionatelywiththechangeinthegrosscarryingamountoftheasset,sothatthecarryingamountoftheassetafterrevaluationequalsitsrevaluedamount,inlinewithnsWTreasurypolicy.

anyrevaluationsurplusiscreditedtotheassetrevaluationreserveincludedintheequitysectionoftheBalancesheet,unlessitreversesarevaluationdecreaseofthesameassetpreviouslyrecognisedintheincomestatement.

anyrevaluationdeficitisrecognisedintheincomestatementunlessitdirectlyoffsetsaprevioussurplusofthesameassetintheassetrevaluationreserve.

upondisposal,anyrevaluationreserverelatingtotheparticularassetorpartsofassetbeingsoldistransferredtoretainedearnings.

property,plantandequipmentcomprisethefollowingtypesofassets:

Regulated Assets regulatedassetscompriseproperty,plantandequipmentusedbyTransGridtoprovideelectricitytransmissionservicesthatareregulatedbytheaustralianenergyregulator(aer).regulatedassetsasdisclosedinnotes12(a)and(b)are:

> networkasset> otherassets

networkassetisacomplexinfrastructureassetthatworkstogetherasanintegratedwholetoprovideregulatedelectricitytransmissionservices.itincludesthefollowingmajorparts:

> land> Buildings> systemplantandequipment> Communicationequipment

TransGridassessesateachreportingdatewhetherthereisanyindicationthatanasset’scarryingamountdiffersmateriallyfromfairvalue.ifanyindicationexists,theassetisrevalued.

subjecttotheabove,TransGrid’svaluationpolicyprovidesforafullanddetailedvaluationoftheseassetstobeundertakenatfive-yearintervals,inconjunctionwithnsWTreasurypolicy.intheinterveningyears,arevaluationbasedonpriceindexmovementsisundertaken.

detailedvaluationsofsystemplantandequipment,land,buildingsandcommunicationequipmentassociatedwithopticalfibreswereundertakenasat30June2009.

Non-regulated Assetsnon-regulatedassetscompriseproperty,plantandequipmentusedbyTransGridtoprovideservicesotherthanregulatedelectricitytransmissionservices.non-regulatedassetsasdisclosedinnotes12(a)and(b)are:

> systemplantandequipment> Communicationequipment> otherassets

Valuationofnon-regulatedassetsisbasedonrelevantcommercialagreements,whichdefinetheirearningcapacity.

(iii)CapitalisationCapitalexpenditureisdefinedasexpenditureinrelationto:

> acquisitionofanewunitofplant;> installationofanewunitofplant;> workperformedonaunitofplant,wheretheneedforthework

existedatthetimetheunitwasacquiredandtheworkwascarriedoutpriortoitbeingputintooperation;

> replacementofaunitofplant,orofasubstantialpartofaunitofplant;

> anadditionoralterationtoaunitofplant,whichresultsinanincreaseineconomicbenefits.


interestonborrowingsiscapitalisedagainstQualifyingassetsinaccordancewithaasB123Borrowing Costs.Qualifyingassetsareassetswhichtakemorethan12monthstobereadyfortheirintendeduse.

expenditureisnotcapitalisedbelowaminimumthresholdof$1,000.

(iv)Depreciationproperty,plantandequipment,excludingland,aredepreciatedovertheirestimatedusefullives.Thestraight-linedepreciationmethodisused.assetsaredepreciatedfromthemonthofacquisitionorinrespectofconstructedassets,fromthetimetheassetreachespracticalcompletionandisreadyforuse.

assetlivesarereviewedannuallyinaccordancewithaasB116Property, Plant and Equipment,andwhererequired,adjustmentshavebeenmadetotheremainingusefullivesofseparatelyidentifiablepartsofassetshavingregardtofactorssuchasassetusageandtherateoftechnicalandcommercialobsolescence.

TheusefullivespresentlyassignedtoTransGrid’sassetsareshowninthetablebelow:

Regulated Assets

networkasset Buildings 30years

systemplantandequipment

40–50years

Communicationequipment

10–35years

otherassets 2–10years

Non-regulated Assets

systemplantandequipment

20–50years

Communicationequipment

35years

otherassets 2–10years

(g) Intangible assets intangibleassetscomprisethefollowingassetsasdisclosedinnotes13(a)and(b):

> easements> Computersoftware> airspacerights

intangibleassetsaremeasuredatcost.

Capitalexpenditureonintangibleassetsisdefinedasexpenditureinrelationto:

> acquisitionofcomputersoftwareoreasements> installationofcomputersoftware> anadditionoralterationtocomputersoftware,whichresultsin

anincreaseineconomicbenefits.

easementsareacomponentofTransGrid’sinfrastructureassetsthatprovideelectricitytransmissionservicesthatareregulatedbytheaer.easementsarenotamortised.

Computersoftwareisamortisedoveraperiodof5yearsusingthestraight-lineamortisationmethod.Theusefullifeforsoftwareisreviewedannually,andadjustmentswhereapplicable,aremadeonaprospectivebasis.

airspacerightshavebeenrecognisedwhenthecostoftheassetcanbemeasuredreliablyanditisprobablethattheassetwillgenerateexpectedfutureeconomicbenefitsforTransGrid.airspacerightsarenotamortised.

expenditureisnotcapitalisedbelowaminimumthresholdof$1,000.

(h) ImpairmentTransGrid’sbusinessasawholerepresentsacash-generatingunit.ateachreportingdate,TransGrid’sspecialisedplantandinfrastructureassets,landandbuildings,andeasementsaretestedforimpairmentaspartofthecash-generatingunit.ifthereisanyindicationthatthecash-generatingunitmaybeimpaired,TransGridmakesanestimateoftherecoverableamountoftheunit.

asTransGrid’srevenuefromelectricitytransmissionservicesisdeterminedbytheaer,therisksofimpairmentforthebusinessasawholeduringtheregulatoryperiodareconsideredtobeextremelylow.

Therecoverableamountofthecash-generatingunitisbasedonthevalueinuseforthebusinessasawhole.inassessingvalueinuse,theestimatedfuturecashflowsforthebusinessarediscountedtotheirpresentvalueusingadiscountratethatreflectstherisksspecifictothebusinessandrelevantmarketassessments.on28april2009,theaerissuedtheirfinalrevenuedeterminationfortheperiod2009-2014.Theoutcomeofthisdeterminationprocesshasbeenusedinthecalculationoftherecoverableamount.

ifthecarryingamountsoftheassetsexceedtherecoverableamountofthebusiness,theassetscomprisingthebusinessasawholeareconsideredtobeimpaired.Theassetsarewrittendownproportionatelytoensuretheircarryingamountsreflecttherecoverableamount.

(i) InventoriesinventoriesofstoresandMaterialsarevaluedattheaveragecostofitemsinstoreautomaticallyadjustedattimeofdeliveryofnewitems,separatelydeterminedforeachlocation.

(j) cash and cash equivalentsCashandcashequivalentsintheBalancesheetandforpurposesoftheCashFlowstatementcomprisecashonhand,cashatbankanddepositswithfinancialinstitutions.

(k) Borrowings allborrowingsaremeasuredatamortisedcostusingtheeffectiveinterestmethod.

interestonborrowingsisrecognisedasexpenseintheperiodinwhichitisincurredunlessitrelatestoqualifyingassets.Qualifyingassetsareassets,whichtakemorethan12monthstogetreadyfortheirintendeduse.Wherefundsareborrowedgenerally,interestontheborrowingsiscapitalisedtoqualifyingassetsinaccordancewithaasB123Borrowing Costs.

Theamountofinterestattributedtoqualifyingassetsduringtheyearwas$19.4m(2008–$2.7m)ataweightedaveragerateof7.2%(2008–6.8%).Thetotalinterestexpenseforthefinancialyearisreportedat$107.8m(2008–$92.2m).

loansareclassifiedascurrentwhentheyhaveamaturityoflessthanoneyearfromthereportingdate.

(l) dividendsprovisionismadefortheamountofdividendpayableinrelationtothecurrentfinancialyear,inaccordancewiththedividendrecognitionpolicysetoutinTreasuryCircularNSW TC 05-11 Accounting for Dividends.accordingly,adividendinrelationtothefinancialyearistakentobedeterminedbeforereportingdate,consistentwiththerequirementsofaasB137Provisions, Contingent Liabilities and Contingent Assets.



ThedividendiscalculatedaccordingwithTpp02-3Financial Distribution Policy for Government Businesses.Thedividendpayableof$120.2m(2008:$105.9m)iscalculatedbasedonprofitfortheyear.intheincomestatement,thisisbasedonapercentageofthelineitem“profit/(loss)fortheyear”of$150.3m(2008:$132.4m).asaresultofthechangedtreatmentofsuperannuationactuarialgainsandlosses(refernote2(e)(i)),inthedividendcalculation,thereisnolongeraneedtoadjustprofittoexcludethesegains/losses,astheyarenowrecognisedoutsideprofit/loss.

(m) employee BenefitsacalculationinaccordancewithaasB119Employee BenefitsismadeeachyearinrespectofTransGrid’sliabilityatreportingdateforemployeebenefitsrelatingtolongserviceleaveandannualleave,andanannualcontributionismadetoadjusttheprovisiontoanamountwhichisconsideredadequatetomeetthatliability.

(i) AnnualLeaveTheprovisionforemployeebenefitsrelatingtoannualleaverepresentstheamountwhichTransGridhasapresentobligationtopayresultingfromemployees’servicesprovideduptoreportingdate.

Theprovisionhasbeencalculatedatnominalamountsbasedontheremunerationratesthatareexpectedtobepaidwhentheleaveistaken.

(ii)LongServiceLeaveTheliabilityforemployeebenefitsrelatingtolongserviceleavehasbeencalculatedonthebasisofcurrentsalaryratestobepaidbyTransGridresultingfromemployees’servicesprovideduptoreportingdateandincludesrelatedon-costs,inaccordancewiththeguidelinesofTreasuryCircularnsWTC09/04Accounting for Long Service Leave and Annual Leave.

(n) SuperannuationTransGridcontributestofourdefinedBenefitsuperannuationschemesforwhichliabilitiesaccrue.

ThedefinedBenefitschemescomprise:

> energyindustriessuperannuationschemepoolB(eiss)> stateauthoritiessuperannuationscheme(sass)> stateauthoritiesnon-Contributorysuperannuationscheme

(sanCs)> statesuperannuationscheme(sss).

TransGridcontributestoanumberofaccumulationsuperannuationschemesforwhichnolong-termliabilityaccrues.

WiththedefinedBenefitschemes,acomponentofthefinalbenefitisderivedfromamultipleofmembersalaryandyearsofmembership.allthedefinedBenefitschemesareclosedtonewmembers.

ThesuperannuationschemesadvisethelevelofliabilityinrespectofTransGrid’ssuperannuationcommitmentstoitsemployeeswhoaremembersofthevariousdivisionsoftheschemes.ThecalculationofthesuperannuationpositionisbaseduponactuarialreviewsindependentofTransGrid’songoingactivitiesandinvolvement.VariousactuarialassumptionsunderpinthedeterminationofTransGrid’sdefinedbenefitobligations.Theseassumptionsandtherelatedcarryingamountsforeissaredisclosedinnote5.

TransGridrecognisesthenettotalofthefollowingasanassetoraliabilityinitsBalancesheet:

> presentvalueofthedefinedbenefitobligationatreportingdate> Fairvalueofplanassetsinthedefinedbenefitschemesat

reportingdate.

Thetotalofthenetsuperannuationexpense(orrevenue)fortheyear,includingamountsrecognisedbothinandoutsideprofitorloss,isthedifferencebetweentheopeningandclosingbalancesofthenetdefinedsuperannuationliability(orprepaidsuperannuationcontributions)plusthecontributionspaidbyTransGridtotheeiss,sass,sanCsandsss.

TransGridhasdeterminedthatdetaileddisclosureofthedefinedBenefitschemesofsass,sanCsandssswillnotmateriallyinfluencetheusersofthefinancialreportandthereforehasnotbeendisclosed.

(o) InsuranceTransGridmaintainsamixofexternalinsurancepoliciesandinternalprovisioninginaccordancewithaasB137Provisions, Contingent Liabilities and Contingent Assets.Thetreatmentofrisksandassociatedliabilitiesaredeterminedinconjunctionwithindependentinsuranceadvisersandlossadjusters.Themainareaofself-insuranceisTowersandWireswhereitisconsideredcost-effectivetocarrytheriskinternally.

TransGridisaself-insurerforWorkers’Compensation.Theliabilityforclaimsmade,ortobemade,againsttheinsuranceprovisionisdeterminedbyreferencetotheWorkers’Compensationact,1987andtheWorkCoverauthority’sguidelinestoself-insurers.

(p) trade and other Receivables receivablesfromtradeandotherdebtors,whichgenerallyhave20to30dayterms,arerecognisedatamountsduelessanallowanceforanyuncollectibleamounts.Collectibilityofthesereceivablesisreviewedonanongoingbasis.debtsthatareknowntobeuncollectiblearewrittenoffwhenidentified.anallowancefordoubtfuldebtsisraisedwhenthereisobjectiveevidencethatTransGridwillnotbeabletocollectthedebt.

Prescribed Customer Receivablesasat30June2009,TransGrid’stotalrevenuereceivedforprescribedtransmissionservices,includingintra-regionalsettlementresiduesandinter-regionalsettlementresidueauctionproceedsfromthenationalelectricityMarketsettlementresidueprocess,waslessthantherevenueentitlementforthefinancialyearasdeterminedbytheaer.inaccordancewiththenationalelectricityrules(ner),theunder-recoveredamountandassociatedinterestisheldinprescribedCustomerreceivablesandisentitledtoberecoveredwhensettingthenextperiod’stransmissionserviceprices,resultinginthosetransmissionpricesbeinghigherthantheywouldhavebeenotherwise.

prescribedCustomerreceivablesincludesaninterestchargebasedontheannualaverageofthe11a.m.dailypublishedcashrateforthefinancialyear.inaccordancewiththerequirementsofthener,thebasisfortheinterestratewasapprovedbytheaer.

(q) payablesaccountspayable,includingaccrualsnotyetbilled,arerecognisedwhenTransGridhasanobligationtopayasaresultofthecompletionofaworkorservice.Tradeaccountsareusuallysettledwithin60days.

(r) RevenuerevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtoTransGridandtherevenuecanbereliablymeasured.Thefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:

(i) Saleofgoodsrevenueisrecognisedwhenthesignificantrisksandrewardsofownershipofthegoodshavepassedtothebuyerandcanbemeasuredreliably.risksandrewardsareconsideredpassedtothebuyeratthetimeofdeliveryofthegoodstothecustomer.


(ii)Renderingofservicesrevenuefromelectricitytransmissionservicesissubjecttotheapplicationofanaerdeterminedrevenuecapforthefinancialyear.Therevenuecapsaredeterminedbytheaeratfive-yearintervals.TransGridisinthefinalyearofthecurrentregulatorydeterminationwhichoperatesfromJuly2004toJune2009.Thetransmissionservicepricesaresetatthebeginningofthefinancialyeartoachievetherevenuecapapplicableforthatyear.

revenuefromtherenderingofotherservicesisrecognisedwhentheserviceisprovidedorbyreferencetothestageofcompletion.Wherethecontractoutcomecannotbemeasuredreliably,revenueisrecognisedonlytotheextentoftheexpensesrecognisedthatarerecoverable.

(iii)Interestinterestrevenueisrecognisedasitisearned,usingtheeffectiveinterestmethod.

(iv)ContributionsforCapitalWorksCashandnon-cashcapitalcontributionshavebeenrecognisedinaccordancewithaccountinginterpretation1017Developer and Customer Contributions for Connection to a Price-Regulated Network.

Contributionsofnon-currentassetsarerecognisedasrevenueandanassetwhenTransGridgainscontroloftheasset.Theamountrecognisedisthefairvalueofthecontributedassetatthedateonwhichcontrolisgained.

Cashcapitalcontributionsarerecognisedasrevenuewhenthenetworkisextendedormodified,consistentwiththetermsofthecontribution.

(s) Income taxTransGridissubjecttothenationalTaxequivalentregime(nTer)administeredbytheaustralianTaxationoffice.ThenTerisbasedonapplicationoffederalincometaxlawsunderwhichTransGridpaysincometaxequivalentstonsWTreasury.

deferredincometaxisprovidedonalltemporarydifferencesatreportingdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.

deferredincometaxliabilitiesarerecognisedforalltaxabletemporarydifferencesexceptwherethedeferredincometaxliabilityarisesfromtheinitialrecognitionofanassetorliability,andatthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss.

deferredincometaxassetsarerecognisedforalldeductibletemporarydifferences,carry-forwardofunusedtaxassetsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarry-forwardofunusedtaxassetsandunusedtaxlossescanbeutilised,exceptwherethedeferredincometaxassetarisesfromtheinitialrecognitionofanassetorliability,andatthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss.

Thecarryingamountofdeferredincometaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredincometaxassettobeutilised.

deferredincometaxassetsandliabilitiesaremeasuredatthetaxratethatisexpectedtoapplytotheyearwhentheassetisrealisedortheliabilityissettled,basedontaxrate(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatreportingdate.

incometaxesrelatingtoitemsrecogniseddirectlyinequity(suchasassetrevaluation,cashflowhedgesandsuperannuationactuarialgainsandlosses)arerecognisedinequityandnotintheincomestatement.

(t) financial Risk managementOverviewTransGridhasexposuretothefollowingrisksfromitsuseoffinancialinstruments:

> Creditrisk> liquidityandfundingrisk> interestraterisk> Foreignexchangerisk> Commodityrisk> operationalrisk.

CreditRiskCreditriskistheriskthatarisesifafinanciallossissufferedduetotheinabilityofthecounterpartybeingabletomeetitsfinancialobligationstoTransGrid.

Theriskismanagedbyonlyundertakingtransactionswithgovernmentownedfinancialinstitutionsandcommercialbankswithaminimumcreditratingthreshold.Monetarylimitsapplytocontaintheexposurewithinreasonablelevels.

Trade and other receivablesTransGrid’sexposuretocreditriskisinfluencedmainlybytheindividualcharacteristicsofeachcustomer.ThedemographicsofTransGrid’scustomerbase,includingthedefaultriskoftheindustryandcountryinwhichcustomersoperate,haslessofaninfluenceoncreditrisk.

TransGridconsidersaconcentrationofcreditrisktoexistwhenanindividualcustomer’soutstandingtradereceivablebalanceexceeds10%ofthetotaltradereceivablesbalance.approximately88%(2008-66%)ofTransGrid’stradereceivablesbalanceisattributabletothreedistributioncustomerswhohaveindividualtradereceivablebalancesinexcessof10%ofthetotalbalance.

TransGrid’stradeandotherreceivablesbalancerelatesmainlytoTransGrid’sdistributioncustomers.allofTransGrid’sdistributioncustomershavebeentransactingwiththeorganisationsinceitsinception,withnocreditlossesoccurringinthatperiodoftime.

intheeventthatthereisobjectiveevidencethatTransGridwillnotbeabletocollectadebt,TransGridestablishesanallowancefordoubtfuldebtsthatrepresentstheorganisation’sestimateofincurredlossesinrespectoftradeandotherreceivables.Wherereceivablesareoutstandingbeyondthenormaltradingterms,thelikelihoodofrecoveryofthesereceivablesisassessedbymanagement.Thisassessmentisbasedonasupportablepastcollectionhistoryandhistoricalwrite-offsofbaddebts.

LiquidityandFundingRiskThemainobjectiveofliquidityriskmanagementistoensurethatTransGridhassufficientfundsavailabletomeetitsfinancialobligationsandinatimelymanner.

TransGridmaintainsdetailedcashflowforecastsanduseapprovedinstrumentswithliquiditylimitstomaintainadequatecashflow.Borrowinglimitsaremonitoredtoensurefundingcommitmentformajorcapitalworksareinplace.Thedebtportfolioismanagedinsuchawaythatnomorethan20%oftheportfoliowillmatureinany12monthperiod.

InterestRateRiskinterestrateriskistheriskofamaterialchangeinearningsasaconsequenceofadversemovementsininterestrates.



Theobjectiveinmanaginginterestrateriskistominimiseinterestexpensevolatilitywhilstensuringthatanappropriatelevelofflexibilityexiststoaccommodatepotentialchangesinfundingrequirementsandmovementinmarketinterestrates.Toachievethis,TransGrid’soveralldebtportfoliowillcompriseamixofnominalfixedrateandlongdatedCpilinkeddebtwithsomefloatingratedebt.

ForeignExchangeRiskForeignexchangeriskistheriskthatTransGridsuffersfinanciallossduetoachangeinforeignexchangerates.

TransGrid’spolicyistohedgeallforeigncurrencyexposuresinexcessofaud0.5millionequivalent.

CommodityRiskTransGridmaybeexposedtocommoditypricerisktypicallyinrelationtoadverseandunexpectedincreasesincostsforinfrastructurerelatedcapitalexpenditure.TransGrid’spreferredpositioninrelationtocommodityriskistonegotiatefixedpricecontractswithitssuppliers.inaddition,appropriatepoliciesareinplacetomonitormovementsincommoditypriceswhilsthedgingstrategiesmitigaterisk.

OperationalRiskoperationalriskistheriskthatTransGridsuffersfinanciallossduetomismanagement,error,fraudorunauthoriseduseoftechniquesand/orfinancialproducts.

ThepolicyobjectiveistominimisetheriskthatTransGridsuffersanyfinanciallossarisingfromoperationalrisk.

appropriatesegregationofdutiesandmaintenanceofcontrolsystemsareinplacetomitigateoperationalrisk.

CapitalManagementTransGridhasbeensubjecttothensWGovernment’sFinancialdistributionpolicysinceitsinceptionandisfullycommittedtoprovidinganadequatereturntotheshareholder.Thisobjectivemustbemanagedwithintheregulatoryframeworkprovidedbythener,giventhatthevastmajorityofTransGrid’srevenueissubjecttoregulation.

TransGrid’sreturnoncapitalisbasedonaWeightedaverageCostofCapitalsetbytheaer,aspartoftherevenuecapdeterminationprocessatfive-yearintervals.TheregulatoryrateofreturnissetataleveldeemedsufficienttoensurethecontinuingviabilityofTransGrid’sbusinessandtoencouragenecessaryinvestmentinnewandreplacementassets.TheWeightedaverageCostofCapitalapplicabletoTransGridforthecurrentfive-yearregulatoryperiodending30June2009is9.08%.

TherewerenochangesinTransGrid’sapproachtocapitalmanagementduringtheyear.

TransGridisnotsubjecttoexternallyimposedcapitalrequirements.

Theaerissueditsrevenuedeterminationforthefive-yearperiodending30June2014on28april2009.

(u) goods and Services taxrevenues,expensesandassetsarerecognisednetoftheamountofGoodsandservicesTax(GsT),withthefollowingexceptions:

> WheretheamountofGsTincurredisnotrecoverablefromtheaustralianTaxationoffice.inthesecircumstances,theGsTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitemoftheexpense.

> receivablesandpayablesarestatedwiththeamountofGsTincluded.

ThenetamountofGsTrecoverablefrom,orpayableto,theaustralianTaxationofficeisincludedasacurrentassetorcurrentliabilityintheBalancesheet.

CashflowsareincludedintheCashFlowstatementonagrossbasis.TheGsTcomponentofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoverablefrom,orpayableto,theaustralianTaxationofficeareclassifiedasoperatingcashflows.

(v) derivative financial InstrumentsTransGridusesderivativefinancialinstrumentssuchasforwardforeigncurrencycontractstohedgeitsrisksassociatedwithforeigncurrencyfluctuations.

Forthepurposesofhedgeaccounting,TransGridclassifiesitshedgesascashflowhedges.Thehedgesareundertakentoaddressexposuretovariabilityincashflowsthatiseitherattributabletoaparticularriskassociatedwitharecognisedassetorliabilityoraforecastedtransaction.

inrelationtocashflowhedgestohedgefirmcommitmentswhichmeetthespecificconditionsforhedgeaccounting,theportionofthegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivehedgeisrecogniseddirectlyinequityandtheineffectiveportionisrecognisedintheincomestatement.

Whenthehedgedfirmcommitmentresultsintherecognitionofanassetorliability,then,atthetimetheassetorliabilityisrecognised,theassociatedgainsorlossesthathadpreviouslybeenrecognisedinequityareincludedintheinitialmeasurementoftheacquisitioncostorothercarryingamountoftheassetorliability.

(w) Segment ReportingTransGridoperatesinoneindustrybeingthetransmissionofelectricityinnsW.assuch,TransGridhasonlyonebusinesssegmentaswellasonegeographicalsegmentinaccordancewithaasB114Segment Reporting,andthisisreportedinthefinancialstatements.


3. Income

2009 2008 $’000 $’000

Revenue Transmissionofelectricity 602,789 526,620

non-regulatedWork 22,716 11,599

CapitalContributions 18,546 29,215

interest 2,028 1,909

sundry 5,721 3,644

Total Revenue 651,800 572,987

Net Gain on Cash Flow Hedges 997 –

Total Income 652,797 572,987

CapitalContributionspredominantlyrelatestothetransferoftransmissionassetsformingpartoftheCapitalWindFarmsubstationproject.

4. expenSeS

2009 2008 $’000 $’000

expenses excluding losses & finance costs Transmissionofelectricity 309,730 270,306

otherservices 14,109 8,811

Total Expenses excluding Losses & Finance Costs 323,839 279,117

netlossondisposalofproperty,plantandequipment 2,150 1,213

netlossonCashFlowhedges – 223

impairmentadjustmentonintangibles 4,315 –

Total Expenses excluding Finance Costs 330,304 280,553

FinanceCosts 105,072 101,882

Total Expenses 435,376 382,435

total expenses above include:

2009 2008 $’000 $’000

depreciationofproperty,plantandequipment(refertonote12(b)) 148,272 138,112

amortisationofintangibles(refertonote13(b)) 4,612 3,884

doubtfuldebts 45 –

inventoryexpense 2,736 3,610

EmployeeBenefitsExpense: netsuperannuationexpense,excludingactuariallosses* 5,348 9,178

otheremployeeBenefitsexpense 85,278 80,304

Total Employee Benefits Expense 90,626 89,482

Maintenanceexpensesareasubsetoftheabovetotalexpenses:

MaintenanceExpense: Transmissionofelectricity

employee-relatedmaintenanceexpense 24,149 23,601

othermaintenanceexpense 40,248 37,855

Transmissionofelectricity–Maintenanceexpense 64,397 61,456

otherservices–Maintenanceexpense 251 251

Total Maintenance Expense 64,648 61,707

* refernote5.superannuationactuariallossesof$133.3m(2008:$39.5m)arerecognisedinthestatementofrecognisedincomeandexpense.Totalsuperannuationexpense,includingactuariallossesrecognisedinthestatementofrecognisedincomeandexpenseis$138.6m(2008:$48.7m).



5. SupeRannuatIon defIned BenefIt planSThefollowingtablessummarisethecomponentsofmovementinemployer’ssuperannuationreserverecognisedintheincomestatementandstatementofrecognisedincomeandexpense,andthefundedstatusandamountsrecognisedintheBalancesheetforthedefinedBenefitsuperannuationplans.

TheassetsandliabilitiesofTransGrid’seissdefinedBenefitplansareprovidedbythescheme’sactuary,Mercer(australia)ptyltd.

(a) movements in Superannuation Reserves recognised in Income Statement

2009 2008 $’000 $’000

eISS Currentservicecost (8,375) (15,700)

interestcostonbenefitobligation (26,299) (25,443)

expectedreturnonplanassets 29,320 31,919

EISS net gains/(expense) (5,354) (9,224)

SSS, SASS and SANCS net gains/(expense) 6 46

Total net gains/(expense) (5,348) (9,178)

(b) movements in Superannuation Reserves recognised in Statement of Recognised Income and expense

2009 2008 $’000 $’000

EISS Actuarial gains/(losses) (133,170) (39,429)

SSS, SASS and SANCS Actuarial gains/(losses) (117) (70)

Total Actuarial gains/(losses) (133,287) (39,499)

(c) eISS Superannuation Surplus/(liability)

2009 2008 $’000 $’000

FairValueofplanassetsatendofyear 307,166 385,164

presentValueofdefinedBenefitobligationatendofyear (468,958) (412,716)

Net Asset/(Liability) Recognised in Balance Sheet at End of Year (161,792) (27,552)

(d) Reconciliation of the present value of the eISS defined benefit obligations

2009 2008 $’000 $’000

Present value of defined benefit obligations at beginning of the year (412,716) (409,747)

Currentservicecost (8,375) (15,700)

interestcost (26,299) (25,443)

Contributionsbyschemeparticipants (4,238) (3,787)

actuarialgains/(losses) (34,330) 32,850

Benefitspaid 17,000 9,111

Present value of defined benefit obligations at the end of the year (468,958) (412,716)

(e) Reconciliation of the eISS fair value of plan assets

2009 2008 $’000 $’000

Fair value of plan assets at beginning of the year 385,164 430,848

expectedreturnonplanassets 29,320 31,919

actuarialgains/(losses) (98,840) (72,279)

employerContributions 4,284 –

Contributionsbyplanparticipants 4,238 3,787

Benefitspaid (17,000) (9,111)

Fair value of plan assets at the end of the year 307,166 385,164


(f) percentage invested in each asset class at reporting date:

2009 2008

australianequities 34.3% 37.6%

overseasequities 33.1% 34.0%

australianfixedinterestsecurities 9.0% 10.7%

overseasfixedinterestsecurities 6.9% 6.3%

property 6.1% 3.2%

Cash 6.1% 6.0%

other 4.5% 2.2%

(g) fair value of eISS scheme assetsallschemeassetsareinvestedbytheTrusteesatarm’slengththroughindependentmanagers.

(h) expected rate of return on assetsTheexpectedreturnonassetsassumptionisdeterminedbyweightingtheexpectedlong-termreturnforeachassetclassbythetargetallocationofassetstoeachclass.Thereturnsusedforeachclassarenetofinvestmenttaxandinvestmentfees.

(i) actual return on eISS plan assets

2009 2008 $’000 $’000

actualreturnonplanassets (67,367) (40,085)

(j) valuation methodTheprojectedunitCredit(puC)valuationmethodwasusedtodeterminethepresentvalueofthedefinedbenefitobligationsandtherelatedcurrentservicecosts.Thismethodseeseachperiodofserviceasgivingrisetoanadditionalunitofbenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation.

(k) economic assumptions

30 June 2009

salaryincreaserate(excludingpromotionalincrease) 4.0%p.a.

rateofCpiincrease 2.5%p.a.

expectedrateofreturnonassets 7.78%p.a.

discountrate 5.35%p.a.

(l) demographic assumptionsThedemographicassumptionsat30June2009arethoseusedinthe2006triennialactuarialvaluation.

(m) historical Information

2009 2008 2007 2006 2005 $’000 $’000 $’000 $’000 $’000

presentvalueofdefinedbenefitobligation (468,958) (412,716) (409,747) (405,668) (411,403)

Fairvalueofschemeassets 307,166 385,164 430,848 387,067 335,671

surplus/(deficit)inscheme (161,792) (27,552) 21,101 (18,601) (75,732)

experienceadjustments–schemeliabilities (34,330) 32,850 5,103 15,036 (36,908)

experienceadjustments–schemeassets (98,840) (72,279) 24,780 32,968 15,216

(n) expected contributions

2009 $’000

expectedemployercontributionstobepaidinthenextreportingperiod 23,591



(o) funding arrangements for employer contributions(i) NetSurplus/(Liability)Thefollowingisasummaryofthefinancialpositionoftheschemeatreportingdatecalculatedinaccordancewithaas25Financial Reporting by Superannuation Plans.

2009 2008 $’000 $’000

netMarketValueofschemeassets 307,166 385,164

accruedBenefits (368,099) (379,148)

Net Surplus/(Liability) (60,933) 6,016

(ii)FundingMethodThemethodusedtodeterminetheemployercontributionrecommendationswastheAggregate Fundingmethod.Themethodadoptedaffectsthetimingofthecosttotheemployer.

undertheAggregate Fundingmethod,theemployercontributionrateisdeterminedsothatsufficientassetswillbeavailabletomeetbenefitpaymentstoexistingmembers,takingintoaccountthecurrentvalueofassetsandfuturecontributions.

(iii)EconomicAssumptionsTheeconomicassumptionsadoptedforthe2006actuarialreviewoftheschemewere:

Weighted Average Assumptions expectedrateofreturnonschemeassets 7.0%p.a.

expectedsalaryincreaserate 6.0%p.a.untilJune2009;4.0%p.a.thereafter

expectedrateofCpiincrease 2.5%p.a.

(iv)NatureofAsset/LiabilityasaliabilityisrecognisedintheBalancesheetasat30June2009,TransGridisresponsibleforthedifferencebetweentheorganisation’sshareofschemeassetsandthedefinedbenefitobligation.

(p) otherThesuperannuationexpenserecognisedintheincomestatementisincludedinthelineitem“expensesexcludingFinanceCosts”.superannuationactuariallossesinrespectofeiss,sss,sassandsanCsof$133.3m(2008:$39.5m)areseparatelyidentifiedinthestatementofrecognisedincomeandexpense.

Thecumulativeamountofactuariallossesinrespectofeiss,sss,sassandsanCsrecognisedinthestatementofrecognisedincomeandexpensesince1July2004is$116.6m.

6. Income tax (a) Income tax expense Majorcomponentsofincometaxexpensefortheyearsended30June2009and2008are:

(i) IncomeStatement

2009 2008 $’000 $’000

Current Income Tax Currentincometaxcharge 37,487 36,681

adjustmentsinrespectofcurrentincometaxofpreviousyears (750) (317)

Deferred Income Tax relatingtooriginationandreversaloftemporarydifferences 30,393 21,801

Income tax expense 67,130 58,165

(ii)StatementofRecognisedIncomeandExpense

2009 2008 $’000 $’000

Deferred Income Tax nettax(gain)/lossonrevaluationofproperty,plantandequipment 124,076 23,763

nettax(gain)/lossonavailable-for-salefinancialassets – (128)

nettax(gain)/lossonsuperannuationreserve–actuariallosses (39,986) (11,850)

nettax(gain)/lossoncashflowhedges 4,319 (869)

Income tax on items taken directly to equity during the year 88,409 10,916


(iii)Reconciliationofincometaxexpenseonpre-taxaccountingprofittoincometaxexpensereportedintheIncomeStatementTheprimafacieincometaxexpenseonpre-taxaccountingprofitfromoperationsreconcilestotheincometaxexpenseintheincomestatementasfollows:

2009 2009 2008 2008 $’000 $’000 $’000 $’000

profit/(loss)BeforeincomeTaxexpense 217,421 190,552

incometaxexpense/(benefit)calculatedatstatutoryincometaxrateof30% 65,226 57,166

Capitalallowances (131) 20

expenditurenotallowedforincometaxpurposes 16 38

reversaloftemporarydifferencesrecognisedinpreviousyears 2,769 1,258

adjustmentsinrespectofcurrentincometaxofpreviousyears (750) (317)

Income tax expense reported in Income Statement 67,130 58,165

(b) deferred Income taxDeferred Income Tax at 30 June relates to the following:

Balance Sheet Income Statement

2009 2008 2009 2008 $’000 $’000 $’000 $’000

DeferredTaxAssetsprovisions 21,839 21,154 (685) (1,614)

superannuationliability 48,538 8,266 (321) (2,739)

property,plantandequipment 2,018 912 (1,106) (65)

other 1,263 4,172 (68) (516)

Gross Deferred Tax Assets 73,658 34,504

DeferredTaxLiabilities property,plantandequipmentandintangibles (661,617) (505,293) 32,248 25,576

superannuationsurplus – (30) 5 (9)

other (3,151) (1,489) 320 1,168

Gross Deferred Tax Liabilities (664,768) (506,812)

Deferred Tax Charge 30,393 21,801

7. caSh and caSh equIvalentS

2009 2008 $’000 $’000

Cashonhand 13 13

deposits 20,848 30,558

Total 20,861 30,571

8. tRade and otheR ReceIvaBleS

2009 2008 $’000 $’000

currentDebtors Tradedebtors 67,481 60,777

debtorsotherThanTrade 7,742 6,640

75,223 67,417

allowanceFordoubtfuldebts (50) –

Totaldebtors 75,173 67,417

Other prescribedCustomerreceivables 34,822 –

other 101 2,440

34,923 2,440

Total 110,096 69,857



9. InventoRIeS

2009 2008 $’000 $’000

Transmissionplantspares 27,451 25,531

other 183 168

Total 27,634 25,699

10. deRIvatIveS (aSSetS)

2009 2008 $’000 $’000

current ForwardContract 3,018 61

non-current ForwardContract 1,521 5

Total 4,539 66

11. otheR cuRRent aSSetS

2009 2008 $’000 $’000

superannuationsurplus – 103

prepayments 1,774 829

insurancerecoveryasset 521 399

Total 2,295 1,331

12. pRopeRty, plant and equIpment (a) valuation and accumulated depreciation for each class of property, plant and equipment

2009 2008 $’000 $’000

RegulatedAssetsnetworkasset 8,039,205 6,592,366

accumulateddepreciation (4,317,538) (3,469,037)

Workinprogress 537,737 318,546

4,259,404 3,441,875

otherassets 91,953 78,030

accumulateddepreciation (50,906) (44,481)


58,860 49,988

Total Regulated Assets 4,318,264 3,491,863

Non-regulatedAssetssystemplantandequipment 42,944 41,035

accumulateddepreciation (5,277) (4,012)


70,846 38,931

Communicationequipment 198 198

accumulateddepreciation (67) (58)

Workinprogress 19 –

150 140

otherassets 1,260 1,265

accumulateddepreciation (245) (325)

Workinprogress – 42

1,015 982

Total Non-regulated Assets 72,011 40,053

Total Property, Plant and Equipment 4,390,275 3,531,916


(b) Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial yearproperty,plantandequipmentistreatedinaccordancewiththevariousexplanationssetoutinnote2.property,plantandequipmentarevaluedinaccordancewithnsWTreasurypolicyTpp07-1Valuation of Physical Non-Current Assets at Fair Value.

Revaluation carrying Increments/ amount at non-current (decrements) carrying Beginning assets held excluding amount at of year additions disposals for Sale depreciation Impairments Impairments* end of year 2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

RegulatedAssets:networkasset 3,441,875 542,222 (1,427) – (137,826) 1,333,560 (919,000) 4,259,404

otherassets 49,988 20,411 (2,576) – (8,963) – – 58,860

Total Regulated 3,491,863 562,633 (4,003) – (146,789) 1,333,560 (919,000) 4,318,264 Assets

Non-regulatedAssets:systemplant 38,931 33,180 – – (1,265) – – 70,846andequipment

Communication 140 19 – – (9) – – 150equipment

otherassets 982 651 (409) – (209) – – 1,015

Total Non-regulated 40,053 33,850 (409) – (1,483) – – 72,011 Assets

Total 3,531,916 596,483 (4,412) – (148,272) 1,333,560 (919,000) 4,390,275

Impairments*impairmentsofnetworkassetswerebroughttoaccountasareductiontotheassetrevaluationreserve.inrespectofproperty,plantandequipment,noimpairmentswerebroughttoaccountwithintheincomestatement.

Revaluation carrying Increments/ amount at non-current (decrements) carrying Beginning assets held excluding amount at of year additions disposals for Sale depreciation Impairments Impairments end of year 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

RegulatedAssets:networkasset 3,210,770 282,992 (597) 1,685 (128,933) 75,958 – 3,441,875

otherassets 43,809 17,902 (3,665) – (8,058) – – 49,988

Total Regulated 3,254,579 300,894 (4,262) 1,685 (136,991) 75,958 – 3,491,863 Assets

Non-regulatedAssets:systemplant 10,377 29,419 – – (865) – – 38,931andequipment

Communication 148 – – – (8) – – 140equipment

otherassets 1,166 713 (649) – (248) – – 982

Total Non-regulated 11,691 30,132 (649) – (1,121) – – 40,053 Assets

Total 3,266,270 331,026 (4,911) 1,685 (138,112) 75,958 – 3,531,916



(c) property, plant and equipment Impairment lossesTransGrid’svaluationpolicyprovidesforafullanddetailedvaluationofassetstobeundertakenatfiveyearintervalsinconjunctionwithnsWTreasurypolicyTpp07-01Valuation of Physical Non-Current Assets at Fair Value.

duringtheyearended30June2009,anextensiverevaluationwasundertakeninaccordancewiththiscyclicalreviewrequirementtodeterminethecarryingamount.

TherecoverableamountofthecashgeneratingunitwasdeterminedwiththeassistanceofindependentvaluersusingtheValueinusemethodologyandcomparedtothecarryingamount.TheestimateofValueinusewasdeterminedusingadiscountrateof7.75%.

Thecarryingamountwasdeterminedtobehigherthanitsrecoverableamountandanimpairmentlossof$919.0mwasrecognisedwithrespecttothefollowingclassesofassets:

2009 $’000

asset classsubstationequipment 367,416

Transmissionlines 551,584

Total Impairment Losses 919,000

Theimpairmentlosshasbeenrecognisedasareductiontotheassetrevaluationreserve.

(d) cost model

accumulated cost depreciation net Book value as at 30 June 2009 $’000 $’000 $’000

RegulatedAssets:networkasset 3,249,398 (829,639) 2,419,759

accumulated cost depreciation net Book value as at 30 June 2008 $’000 $’000 $’000

RegulatedAssets:networkasset 2,887,418 (702,741) 2,184,677

13. IntangIBleS(a) valuation and accumulated amortisation of Intangibles

2009 2008 $’000 $’000

easements 497,748 487,139


504,320 493,975

Computersoftware 45,494 40,240

accumulatedamortisation (33,794) (29,353)


30,315 21,877

airspacerights 2,900 7,215

Total Intangibles 537,535 523,067


(b) Reconciliations of the carrying amounts of intangibles at the beginning and end of the financial year

carrying amount at carrying Beginning amount at of year additions disposals amortisation Impairments* adjustments end of year 2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000

IntangibleAssetseasements 493,975 10,351 (6) – – – 504,320

Computersoftware 21,877 13,050 – (4,612) – – 30,315

airspacerights 7,215 – – – (4,315) – 2,900

Total 523,067 23,401 (6) (4,612) (4,315) – 537,535

Impairments*animpairmentofairspacerightswasbroughttoaccountwithintheincomestatement.

carrying amount at carrying Beginning amount at of year additions disposals amortisation Impairments adjustments end of year 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000

IntangibleAssetseasements 481,348 12,634 (7) – – – 493,975

Computersoftware 14,454 11,335 (28) (3,884) – – 21,877

airspacerights 7,215 – – – – – 7,215

Total 503,017 23,969 (35) (3,884) – – 523,067

(c) Intangible assets Impairment losses aasB136Impairment of Assetsrequiresconsiderationifanyimpairmentexistsforintangibleassets.

Withtheassistanceofindependentvaluers,impairmenttestingdeterminedthattherecordedvalueoftheairspacerightswerenolongeratfairvalueandawritedownwasrequired.

asaresult,airspacerightswereimpairedby$4.3mandadjustedthroughtheincomestatement.

14. otheR non-cuRRent aSSetS

2009 2008 $’000 $’000

insurancerecoveryasset 4,008 3,603

Total 4,008 3,603

15. expendItuRe commItmentS (a) capital expenditure commitments Commitmentsarisingfromcontractsforexpenditureinrespectofproperty,plantandequipmentandintangibles,totheextentnotprovidedforintheaccounts:

2009 2008 $’000 $’000

payableWithinoneyear 255,694 426,407

payableonetoFiveyears 18,222 106,418

payablelaterthanFiveyears 2,022 –

Total (including GST) 275,938 532,825

TotalexpenditureCommitmentsaboveincludeinputtaxcreditsof$25.1m(2008-$48.4m)thatareexpectedtoberecoverablefromtheaustralianTaxationoffice.



(b) operating expenditure commitments Majorcommitmentsarisingfromcontractsforexpenditureassociatedwithnetworksupport,totheextentnotprovidedforintheaccounts:

2009 2008 $’000 $’000

payableWithinoneyear 20,900 39,663

payableonetoFiveyears – 20,900

payablelaterthanFiveyears – –


TotalexpenditureCommitmentsaboveincludeinputtaxcreditsof$1.9m(2008-$5.5m)thatareexpectedtoberecoverablefromtheaustralianTaxationoffice.

16. tRade and otheR payaBleS

2009 2008 $’000 $’000

CurrentCreditors 75,503 102,826

accruedFinanceCosts 54,358 41,492

other 1,033 –

130,894 144,318

Non-CurrentCreditors 2,973 5,413

Total 133,867 149,731

17. pRovISIonS

2009 2008 $’000 $’000

Currentdividend 120,233 105,910

employees’accruedBenefits 68,036 62,274

insurance 1,347 1,357

189,616 169,541

Non-Currentemployees’accruedBenefits 4,027 2,847

insurance 7,902 7,593

11,929 10,440

Total 201,545 179,981

(a) dividends

2009 2008 $’000 $’000

openingBalance 105,910 71,482

dividendpayments (105,910) (71,482)

dividendfortheyear 120,233 105,910

Closing Balance 120,233 105,910

(b) employees’ accrued Benefits Thefollowingtabledetailsthemovementsintheemployees’accruedBenefitsprovisionduringtheyear:

2009 2008 $’000 $’000


Contributions 18,302 11,411

payments (11,360) (10,663)



Thefollowingtableshowsabreakdownoftheemployees’accruedBenefitsprovisionatreportingdate:

2009 2008 $’000 $’000

annualleave 16,998 16,985

longserviceleave 55,065 48,136

Total 72,063 65,121

ThefollowingtableshowsabreakdownoftheCurrentportionoftheemployees’accruedBenefitsprovisionatreportingdate,splitintotheperiodoftimethebenefitsareexpectedtobesettled:

2009 2008 $’000 $’000

Withinoneyear 15,581 13,589

laterthanoneyear 52,455 48,685

Total 68,036 62,274

(c) Insurance inaccordancewithCondition6(a)(iii)ofthelicensegrantedundersection211oftheWorker’sCompensationact,1987,theprovisionfortotaloutstandingworkers’compensationclaimsliabilityincludingincurredbutnotreportedclaimsandadministrationis$9.2m(2008–$9.0m).duringthefinancialyear,$1.3m(2008-$5.9m)wascontributedtotheprovisionforWorkers’Compensation.

Theprovisionincludes$4.5mforaworkers’compensationclaimthathasbeenactivatedunderTransGrid’sreinsurancepolicy.reinsurancerecoverieshavecommencedandfuturerecoveriesforthisclaimareconsideredtobevirtuallycertain.TransGridhasrecognisedaninsurancerecoveryassetof$4.5mbasedonindependentactuarialadvice(refertonotes11and14).

Thefollowingtabledetailsthemovementsintheinsuranceprovisionduringtheyear:

opening Balance contributions payments closing Balance class $’000 $’000 $’000 $’000

Workers’Compensation 8,950 1,255 (956) 9,249

Total 8,950 1,255 (956) 9,249

18. deRIvatIveS (lIaBIlItIeS)

2009 2008 $’000 $’000

CurrentForwardContract 1,020 8,714

Non-Current ForwardContract 279 2,508

Total 1,299 11,222

19. otheR cuRRent lIaBIlItIeS

2009 2008 $’000 $’000

superannuationliability 161,792 27,552

Other electricityCreditors 10,391 37,414

other 2,897 2,528

13,288 39,942

Total 175,080 67,494



20. capItal TransGridcommencedoperationson1February1995onseparationfrompacificpowerundertheelectricityTransmissionauthorityact,1994atwhichtimeaseriesofassetsandliabilitiesweretransferred.

TransGridwascorporatisedasastatutorystateownedCorporationon14december1998,withsharecapitaloftwo$1.00shares.TheseshareswereissuedtotheTreasurerandtheMinisterforFinance,asVotingshareholdersonbehalfofthensWGovernment,asat30June2009.The$2.00isreportedaspartofCapital.

2009 2008 $’000 $’000

CapitalopeningBalance 651,967 651,967

Movements – –


21. ReSeRveS

net unrealised asset gains/ cash flow Revaluation (losses) hedge Reserve Reserve Reserve total Reserves $’000 $’000 $’000 $’000

At 1 July 2007 939,144 298 (5,784) 933,658

revaluationofproperty,plantandequipment(note12(b)) 75,958 75,958

Transfertoretainedearnings–revaluationreserve 3,250 3,250forassetsdisposed(note22)

Taxeffectofproperty,plantandequipmentrevaluation (23,763) (23,763)andTransferstoretainedearnings(note6(a)(ii))

netGains/(losses)onavailable-for-saleFinancialassets (426) (426)transferredtoprofitorlossuponsaleofTransGrid’ssharesinGeodynamicslimited

Taxeffect:netGains/(losses)onavailable-for-sale 128 128Financialassetstransferredtoprofitorloss(note6(a)(ii))

revaluationofCashFlowhedges (4,089) (4,089)

realisedGains/(losses)onCashFlowhedgesremoved 1,194 1,194fromequityandincludedinassets

TaxeffectofCashFlowhedgeequityMovements(note6(a)(ii)) 869 869

At 30 June 2008 994,589 – (7,810) 986,779

revaluationofproperty,plantandequipment, 1,333,560 1,333,560excludingimpairments(note12(b))

impairments(note12(b)) (919,000) (919,000)

Transfertoretainedearnings– (974) (974)revaluationreserveforassetsdisposed(note22)

Taxeffectofproperty,plantandequipmentrevaluation, (124,076) (124,076)impairmentsandTransferstoretainedearnings(note6(a)(ii))

revaluationofCashFlowhedges 24,282 24,282

realisedGains/(losses)onCashFlowhedges (9,885) (9,885)removedfromequityandincludedinassets

TaxeffectofCashFlowhedgeequityMovements(note6(a)(ii)) (4,319) (4,319)

At 30 June 2009 1,284,099 – 2,268 1,286,367

AssetRevaluationReserveThisreserveisusedtorecordincreasesinthefairvalueofproperty,plantandequipment,anddecreasestotheextentthatsuchdecreasesrelatetoanincreaseonthesameassetpreviouslyrecognisedinequity.assetsarerevaluedinaccordancewithnsWTreasurypolicyTpp07-1Valuation of Physical Non-Current Assets at Fair Value.

NetUnrealisedGains/(Losses)ReserveThisreserverecordsfairvaluechangesonavailable-for-saleinvestments.

CashFlowHedgeReserveThisreserverecordstheportionofthegainorlossonahedginginstrumentinacashflowhedgethatisdeterminedtobeeffective.


22. RetaIned eaRnIngS

2009 2008 $’000 $’000


netprofit/(loss)Beforedividend 150,291 132,387

superannuationactuarialGains/(losses) (133,287) (39,499)

incomeTaxBenefit/(expense)onsuperannuationactuarialGains/(losses) 39,986 11,850

dividend (120,233) (105,910)

Transferfromassetrevaluationreserve 974 (3,250)


23. dIvIdend and contRIButIonS to ShaReholdeRadividendof$120.2m(2008-$105.9m)hasbeenrecognisedfordistributiontotheshareholder.Thedividendwillbepaidduringthecourseofthe2009/10financialyearandisrepresentedbythedividendprovision.

24. SecuRed lIaBIlItIeSatreportingdate,therewasnoloanliabilityofTransGridsecuredbyachargeoverTransGrid’sassets.

25. audIt feeSamountsreceived,ordueandreceivable,bytheauditorsfor:

2009 2008 $’000 $’000

auditingthefinancialreport 168 188

26. compenSatIon of Key management peRSonnel

2009 2008 $’000 $’000

short-termemployeebenefits 2,387 2,032

post-employmentbenefits 845 839

otherlong-termbenefits 238 226

Total 3,470 3,097

fees paid to directorsFees,includingsuperannuationbenefitspaidtodirectors,otherthansalariespaidtofull-timedirectors,were$0.5m(2008-$0.3m).

27. contIngent lIaBIlItIeS and contIngent aSSetS(a) contingent liabilities

2009 2008 $’000 $’000

Contractliability 247 40

ClaimsforcompensationassociatedwithdelayedcontractualmilestonesarebeingpursuedagainstTransGridbyacontractor.TheamountdisclosedrepresentsTransGridmanagement’sbestestimateatbalancedate.atthisstage,itisnotpossibleformanagementtoformanopiniononthelikelyoutcomeoftheclaims.

aclaimforcompensationisbeingsoughtagainstTransGridviaadebtCertificateundertheContractor’sdebtsact1997.Thisinstrumentallowsasub-contractorofacontractortorecoveroutstandingmoniesdirectlyfromtheprincipaltowhichthesamecontractapplies.TheamountdisclosedrepresentsTransGridmanagement’sbestestimateatbalancedate.atthisstage,itisnotpossibleformanagementtoformanopinionaboutthelikelyoutcomeoftheclaim.

aclaimforcompensationisbeingpursuedviaarbitrationagainstTransGrid,forallegedreductioninthevalueofacoalmineduetotheconstructionofatransmissiontower.atthisstage,itisnotpossibleformanagementtoformanopinionaboutthelikelyoutcomeofthearbitration.

aclaimforcompensationisbeingpursuedagainstTransGridarisingfromacontractualdispute.atthisstage,itislikelythattheclaimwillbesettledalthoughitisnotpossibleformanagementtoreliablyestimateasettlementamount.

(b) contingent assetsTransGridhasinitiatedlegalproceedingstorecoverdamagesof$16.1massociatedwithitscontractor.atthisstage,itisnotpossibleformanagementtoformanopiniononthelikelyoutcomeoftheproceedings.

TheaustralianCompetitionTribunalishearingaMeritsreviewoftheaer’sTransGridFinalrevenuedeterminationof28april2009,whichestablishedTransGrid’srevenuecapsforprescribedtransmissionservicesforthe2009/10to2013/14period.atthisstageitisnotpossibleformanagementtobecertainoftheoutcomeofthisreview.however,thedecisiontoseekaMeritsreviewwasbasedon‘prospectsadvice’fromseniorCounselwithinputfromexpertregulatoryeconomists.



28. faIR compenSatIon tRuSt fundinaccordancewiththelandacquisition(JustTermsCompensation)act,TransGridmaintainsaTrustaccount.Theaccountbalanceatreportingdatewas$1.9m(2008–$0.3m).

29. leaSeS TransGridhasnofinanceleasecommitments.Thefollowingleasecommitmentsdisclosedareinthenatureofoperatingleases.

lesseeTransGridhasoneoperatingleasecommitmentunderacommercialleasewhichcommencedon9May2007.Theleasetermis6yearswithanoptiontoextendforanother4years.leasepaymentsareincreasedannuallyby4%.Theleaseexpenditureforthefinancialyear,GsT-exclusive,was$1.9m(2008–$2.2m).

MinimumrentalspayableGsT-inclusive,asat30Juneareasfollows:

2009 2008 $’000 $’000

Withinoneyear 2,044 2,110

laterthanoneyearbutnotlaterthan5years 6,244 8,287

laterthan5years – –


30. noteS to caSh flow Statement(a) Reconciliation of cash CashasattheendofthefinancialyearasshownintheCashFlowstatementisreconciledtotherelateditemsintheBalancesheetasfollows:

2009 2008 $’000 $’000

CashandCashequivalents 20,861 30,571

(b) dividends and taxesnodividendswerereceived.dividendsandtaxequivalentspaidduringtheyearamountedto$148.3m(2008–$90.4m).

(c) acquisitions and disposals of entitiesnoentitieswereacquiredordisposedofduringtheyear.

(d) financing arrangementsTransGridhasanoverdraftfacilityof$6,000,000withtheWestpacBankandthisfacilitywasundrawnatreportingdate.TransGridalsohasapprovalforanindemnityguaranteefacilityfor$16,000,000ofwhich$5,873,000hasbeendrawn.


(e) Reconciliation of profit after Income tax equivalent expense to net cash provided by operating activities

2009 2008 $’000 $’000

Profit/(Loss) after Income Tax Equivalent Expense 150,291 104,738

Add/(Less): Items Classified as Financing/Investing Activities

loss/(Gain)ondisposalofproperty,plantandequipment 2,150 1,213

Add/(Less) Non-Cash Items

depreciationandamortisation 152,884 141,996

amortisationof(premium)/discountonloans (149) (1,556)

impairmentadjustment 4,315 –

Capitalisedinterest (19,370) (2,741)

CapitalContributions (18,546) (29,215)

accrualsrelatingtootherthanoperatingactivities – (670)

Net Cash Provided by Operating Activities Before Change in Assets and Liabilities 271,575 213,765

Net Changes in Assets and Liabilities During the Financial Year

(increase)/decreaseinTradedebtors&otherreceivables (39,206) 6,668

(increase)/decreaseininventories (1,935) (845)

(increase)/decreaseinotherCurrentassets (1,066) 21,005

(increase)/decreaseinothernon-Currentassets (405) (3,603)

increase/(decrease)inTradeCreditors&otherpayables 8,462 21,765

increase/(decrease)inprovisions 7,241 5,321

increase/(decrease)inincomeTax&deferredTaxes 24,706 27,410

increase/(decrease)inotherCurrentliabilities (25,598) 5,930

Net Cash Provided by Operating Activities 243,774 297,416

31. fInancIal InStRumentS dIScloSuRe(a) credit Risk ExposuretocreditriskThecarryingamountofTransGrid’sfinancialassetsrepresentsthemaximumcreditexposure.TransGrid’smaximumexposuretocreditriskatthereportingdatewas:

2009 2008 carrying amount note $’000 $’000

Tradeandotherreceivables 110,146 69,857

Cashandcashequivalents 7 20,861 30,571

Forwardexchangecontractsusedforhedging(assets) 10 4,539 66

135,546 100,494

ImpairmentlossesBasedonhistoricdefaultrates,TransGridbelievesthatnoimpairmentallowanceisnecessaryinrespectoftradereceivableseithernotpastdueorpastdue.Thetradereceivablesbalance,whichincludestheamountsowedbyTransGrid’sthreemostsignificantcustomers,relatestocustomersthathaveagoodcredithistorywithTransGrid.

TheagingofTransGrid’stradeandotherreceivablesatthereportingdatewas:

gross Impairment gross Impairment Receivables losses Receivables losses 2009 2009 2008 2008 $’000 $’000 $’000 $’000

notpastdue 107,135 – 68,301 –

pastdue1-30days 596 – 1,556 –

pastdue31-60days 38 – – –

Morethan61days 2,377 50 – –

110,146 50 69,857 –

TheabovetabledefinestheGrossreceivablesexpectedtobereceivedbyTransGrid.

asat30June2009,allreceivabletransactionswereassessedtodeterminetheirfairvalueandthatcollectabilitywashighlyprobable.onereceivableof$49,500wasconsideredunlikelytobecollectedinfullandthusthetotalamountwasconsideredimpaired.Therewasnoimpairmentfor2008.



Themovementintheallowancefordoubtfuldebtsaccountinrespectoftradereceivablesduringtheyearwasasfollows:

2009 2008 $’000 $’000

Balanceat1July2008 – –

impairmentlossrecognised 50 –

Balance at 30 June 2009 50 –

(b) liquidity and funding Risk Thefollowingarethecontractualmaturitiesoffinancialliabilities,includingestimatedinterestpayments:

carrying contractual less than 1 year to more than amount cash flows 1 year 5 years 5 years 30 June 2009 $’000 $’000 $’000 $’000 $’000

Non-derivativefinancialliabilitiesBorrowings 1,988,928 2,616,580 485,892 1,064,758 1,065,930

Tradeandotherpayables 133,867 133,867 130,894 2,973 –

otherfinancialliabilities 10,391 10,391 10,391 – –

DerivativefinancialliabilitiesForwardexchangecontractsusedforhedging:Grossoutflow 1,299 9,695 7,479 2,216 –

Total 2,134,485 2,770,533 634,656 1,069,947 1,065,930

carrying contractual less than 1 year to more than amount cash flows 1 year 5 years 5 years 30 June 2008 $’000 $’000 $’000 $’000 $’000

Non-derivativefinancialliabilitiesBorrowings 1,531,592 2,089,759 237,153 922,213 930,393

Tradeandotherpayables 149,731 149,731 144,318 5,413 –

otherfinancialliabilities 37,414 37,414 37,414 – –

DerivativefinancialliabilitiesForwardexchangecontractsusedforhedging:Grossoutflow 11,222 103,100 65,801 37,299 –

Total 1,729,959 2,380,004 484,686 964,925 930,393

(c) foreign exchange RiskCashFlowHedgesThecashflowsarisingfromcashflowhedgesarenotexpectedtoaffectprofitorloss.

Cash Flow Hedge Equity Movements

amount carrying removed amount carrying amount at amount from equity removed amount at beginning recognised in and included from equity end of of period equity during in Income and included period (1/7/08) the period Statement in assets (30/6/09) 2009 $’000 $’000 $’000 $’000 $’000

Equity (11,156) 24,282 – (9,886) 3,240

amount carrying removed amount carrying amount at amount from equity removed amount at beginning recognised in and included from equity end of of period equity during in Income and included period (1/7/07) the period Statement in assets (30/6/08) 2008 $’000 $’000 $’000 $’000 $’000

Equity (8,262) (4,089) – 1,195 (11,156)


SensitivityanalysisTransGridemployscashflowhedgestoremovecurrencyriskassociatedwithpurchaseofoverseasequipment.

a10percentstrengtheningandweakeningoftheaustraliandollaragainstthefollowingcurrencieswouldhaveincreased(decreased)equitybytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularinterestrates,remainconstant.Theanalysisisperformedonthesamebasisfor2008.

asthesearealleffectivecashflowhedges,therearenoprofitorlossimpacts.

+10% -10% effect on equity in thousands of aud $’000 $’000

30June2009usd (288) 352

Cad (6) 7

eur (513) 627

Jpy (3,943) 4,819

seK (144) 175

30June2008usd (143) 175

Cad (655) 800

eur (2,121) 2,592

Jpy (7,771) 9,498

(d) Interest Rate Risk interestrateriskistheriskofamaterialchangeinearningsandultimatelydividendpaymentsasaconsequenceofadversemovementsininterestrates.ThepolicyobjectiveistoensurethatTransGridisnotexposedtointerestratemovementswhichcouldadverselyimpactonitsabilitytomeetitsfinancialobligationsastheyfalldue.

Cashflowsensitivityanalysisforvariablerateinstrumentsachangeof100basispointsininterestratesatthereportingdatewouldhaveincreased(decreased)profitorlossbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularforeigncurrencyrates,remainconstant.Theanalysisisperformedonthesamebasisfor2008.

Profit or Loss

100bp 100bp increase decrease $’000 $’000

30June2009 prescribedCustomerreceivables (13) 13

Cashflowsensitivity(net) (13) 13

electricityCreditors (65) 65


30June2008 electricityCreditors (478) 478




(e) net fair value of financial assets and liabilities Thenetfairvalueoffinancialassetsandliabilities,withtheexceptionofborrowings,isreflectedbytheircarryingamountsintheBalancesheet,inaccordancewithaasB132andaasB7.

ThenetfairvalueofborrowingsisbasedonmarketvaluederivedbyBarringtonTreasuryservicesusingmarketinterestratescurrentatreportingdate.

Thecarryingamountsandnetfairvaluesoffinancialassetsandliabilitiesatreportingdateare:

2009 2008

carrying net fair carrying net fair amount value amount value $’000 $’000 $’000 $’000

FinancialAssetsCashandcashequivalents 20,861 20,861 30,571 30,571

Tradeandotherreceivables 110,096 110,096 69,857 69,857

derivatives 4,539 4,539 66 66

Total Financial Assets 135,496 135,496 100,494 100,494

FinancialLiabilitiesTradeandotherpayables 133,867 133,867 149,731 149,731

Borrowings 1,988,928 2,000,231 1,531,592 1,484,958

otherfinancialliabilities 10,391 10,391 37,414 37,414

derivatives 1,299 1,299 11,222 11,222

Total Financial Liabilities 2,134,485 2,145,788 1,729,959 1,683,325

end of audIted fInancIal RepoRt

TransGridannualreporT2009>Statement By memBeRS of the BoaRd 101

Statement By memBeRS of the BoaRd

102 Independent audItoR’S RepoRt > TransGridannualreporT2009

Independent audItoR’S RepoRt

TransGridannualreporT2009>Independent audItoR’S RepoRt 103

Independent audItoR’S RepoRt continued

104 Index > TransGridannualreporT2009

aaboriginalemploymentanddevelopmentstrategy 50

aboutTransGrid 2

apprentices 45

assetManagement 24

BBalancesheet 74

Boardofdirectors 54

cCapitalexpenditure($Million) 10

CapitalWorksprojects 23

CashFlowstatement 75

ChairmanandManagingdirector’sreview 16

Challenges2009/10 15

Charter 58

ClimateChangestrategy 34

Codeofethicsprogram 65

Commercialreport 72

CommunityConsultation 37

ConsultantFees 64

Consumerresponse 64

Contents 1

CorporateGovernance 53

Costofannualreport 70

CreditCardusage 69

CustomerConnections 21

ddemandGraphs 20

demandManagementinitiatives 21

disabilityactionplan 50

eeeoachievements(2008-2009) 50

eeodisclosures 49

eeoplannedachievements(2008-2009) 50

electronicservicedelivery 70

employeeservices 47

environmentalaward 34

environmentalincidentnotification 14

environmentalproductionnotes 108

environmentalstrategies 34

ethnicaffairsprioritystatement(eaps) 50

executiveleadershipTeam 56

fFinancialreport 71

Fraudprevention 65

Freedomofinformation 65

Futurepeoplestrategies 47

gGlossary 106

Graduateprogram 45

Guaranteeofservice 64

hheritageManagement 70

highlights2008/09 8

Iincome($Million) 10

incomestatement 73

independentauditor’sreport 102

index 104

industrialrelationspoliciesandpractices 70

informationTechnology 32

innovation 30

internetContactdetails Backpage

Index

TransGridannualreporT2009>Index 105

JJudicialdecisions 64

KKeyCommercialperformanceindicators 10

llanddisposal 70

leadershipdevelopmentprograms 44

legislativeChange 64

lettertoshareholders insideFrontCover

mManagingdirectorsscholarship 48

MeetingsoftheBoard 60

Minister 58

nnationalelectricityMarketdevelopment 21

networkavailability(%) 12

networkreliability(systemMinuteslost) 12

notestotheFinancialstatements 77

ooccupationalhealthandsafetyperformance 41

ourdirection 7

ournetwork 4

overseasVisits 68

pperformanceManagement 46

performancesummary:executive 62

planning 18

pricing 21

privacy 66

promotion 70

qQualifications:executive 63

Rremuneration:Boardofdirectors 61

remuneration:executive 63

reportingexemptions 69

returnonassets(%) 11

returnonequity(%) 11

revenueresetdetermination(2004/09) 22

riskManagementandinsurance 64

revenuedetermination(2009–2014) 22

reviewsofthenationalelectricityMarket 16

Ssafety(lTi’s) 13

safetyaward 43

shareholders 58

significantCommittees 66

sponsorships 37

staffnumbers:Comparisonofstaffnumbers 14

staffnumbers:staffbyCategory 13

staffnumbers:numbersofexecutiveofficers 14

staffnumbers:numbersbyGender 14

statementofrecognisedincomeandexpense 76

statementbyMembersoftheBoard 101

statementofaffairs 66

tTraineeengineeringofficer 45

TransGridContactdetails BackCover

wWastereductionandpurchasingpoliCy(Wrapp) 34

Womenprograms 51

Workforcediversitystrategy 49

Index continued

106 gloSSaRy > TransGridannualreporT2009

Term Explanation/Comments

aer(“theregulator”) Theaustralianenergyregulator

aeMC TheaustralianenergyMarketCommission

aeMo TheaustralianenergyMarketoperator

annualplanningreport(apr200X) adocumentthatsetsoutissuesandprovidesinformationtothemarketthatisrelevanttotransmissionplanninginnewsouthWales.Thisdocumentistheapr2009.

annualplanningreview TheannualplanningprocesscoveringelectricitytransmissionnetworksinnewsouthWales.

“assets” TransGrid’s‘polesandwires’,allthesubstationsandelectricitytransmissionlinesthatformournetwork.

CBd CentralBusinessdistrict

Constraint aninabilityofanelectricitytransmissionordistributionsystemtosupplyarequiredamountofelectricitytoarequiredstandard.

Customers TransGrid’scustomersarethosedirectlyconnectedtoournetwork.Theyareeitherdistributionnetworkserviceproviders,directlyconnectedgenerators,largeindustrialcustomers,customersconnectedthroughinter-regionalconnectionsorpotentialnewcustomers.

dM demandmanagement.asetofinitiativesthatisputinplaceatthepointofend-usetoreducethetotaland/orpeakconsumptionofelectricity.

dnsp(distributor) distributionnetworkserviceprovider.abodythatowns,controlsoroperatesadistributionsystemintheneM.

dWe nsWdepartmentofWaterandenergy

easement aneasementoverapropertygivesTransGridtherighttoconstructandmaintainourassets,whileownershipofthepropertyremainswiththeoriginallandowner.

GWh aunitofenergyconsumptionequalto1,000MWh.

interconnection Thepointsonanelectricitytransmissionnetworkthatcrossjurisdictional/stateboundaries.

iparT independentpricingandregulatoryTribunalofnsW

kV operatingvoltageofelectricitytransmissionequipment.onekilovoltisequaltoonethousandvolts.

load Theamountofelectricalpowerthatisdrawnfromthenetwork.

localGeneration agenerationorcogenerationfacilitythatislocatedontheloadsideofatransmissionconstraint.

gloSSaRy

TransGridannualreporT2009>gloSSaRy 107

lTi losttimeinjury

MCe MinisterialCouncilonenergy

MVar aunitofreactivepower.one“Mega-Var”isequalto1,000,000Var.

MWh aunitofenergyconsumption.oneMegawatthouristheamountofenergyconsumedinonehouratarateofoneMegawatt.

nationalelectricitylaw CommonlawsacrossthestateswhichcomprisetheneM,whichmakethenerenforceable.

nationalelectricityrules(neror“therules”) TherulesthatgoverntheoperationoftheneM.

neM ThenationalelectricityMarket

nTFp nationalTransmissionFlowpath

nTp nationalTransmissionplanner

networkaugmentation anexpansionoftheexistingelectricitytransmissionnetwork.

non-networksolutions alternativestonetworkaugmentationwhichaddressapotentialshortageinelectricitysupplyinaregion.

outage anoutageiswhenpartofthenetworklosespower.Thiscanbeeitherplanned(i.e.whenworkneedstobedoneontheline)orunplanned.

regulatoryTest atestpromulgatedbytheaerthatisrequiredbythenertobeappliedwhendeterminingtherelativeeconomicmeritsofoptionsforthereliefoftransmissionconstraints.

rFp requestforproposal

riT-T regulatoryinvestmentTest–Transmission

sndp strategicnetworkdevelopmentplan

sVC staticVarCompensator.adevicethatprovidesforcontrolofreactivepower.

switchbay asitecontaininghighvoltageswitchgear,usedtoconnectordisconnectasectionofthenetwork.

theMinister ThenewsouthWalesMinisterforenergy.

Tnsp Transmissionnetworkserviceprovider.abodythatowns,controlsandoperatesanelectricitytransmissionsystemintheneM.

Transmissionline ahigh-voltagepowerlinerunningat500kV,330kVor132kV.

WaCC WeightedaverageCostofCapital

gloSSaRy continued

108 envIRonmental pRoductIon noteS > TransGridannualreporT2009

pRIntIngTheprinteroftheannualreportholdsanFsCChainofCustody(CoC)Certificationensuringthehigheststandardsofsustainablepracticehavebeenusedthroughouttheprintingprocess.

environmentallyfriendlysoy-basedinksandlow-alcoholproductionmethodshavebeenused.

coveR and edItoRIal pageSThecoverandeditorialsectionpagesareprintedonMonzarecycled,whichcontains55%recycledfibre(25%postconsumerand30%preconsumer)andFsCcertifiedpulp,ensuringallvirginpulpisderivedfromwell-managedforests,andismanufacturedbyaniso14001certifiedmill.

ThepaperisFsCMixedsourceCertified.

fInancIal pageSThefinancialpagesareprintedonTudorrp,whichisFsCrecycledCertifiedandaustralianMade.itcontains100%recycledfibreandnochlorinebleachingoccursintherecyclingprocess.Themilllisiso14001certified.salesofTudiorrpsupportlandcareaustralia.

envIRonmental pRoductIon noteS

TransGrid’scommitmenttotheenvironmentisreflectedinthesustainableprintingpracticesandpaperusedintheproductionofthisannualreport.

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 Cd and 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:Jon novakovicKarl Hofmanneil Billingtonron sonterJohn Marmaras

power people > TransGrid annual reporT 2009 meeting stakeholder + community expectations reliable...

Documents

Transcript of power people > TransGrid annual reporT 2009 meeting stakeholder + community expectations reliable...