Ergon Energy Corporation Limited 12 November 2009

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1 Ergon Energy Corporation Limited 12 November 2009 Disclaimer While care was taken in preparation of the information in this discussion paper, and it is provided in good faith, Ergon Energy Corporation Limited accepts no responsibility or liability for any loss or damage that may be incurred by any person acting in reliance on this information or assumptions drawn from it. This paper has been prepared for the purpose of inviting information, comment and discussion from interested parties. The document has been prepared using information provided by a number of third parties. It contains assumptions regarding, among other things, economic growth and load forecasts which may or may not prove to be correct. All information should be independently verified to the extent possible before assessing any investment proposals. TABLE OF CONTENTS 1. EXECUTIVE SUMMARY INTRODUCTION BACKGROUND & REASONS AUGMENTATION IS REQUIRED Background Purpose of this Final Report EXISTING SUPPLY SYSTEM TO THE HERVEY BAY AREA Geographic Region Existing Supply System EMERGING DISTRIBUTION NETWORK LIMITATIONS Timeframes for Taking Corrective Action Known Future Network and Generation Development OPTIONS CONSIDERED Consultation Summary Non-Distribution Options Identified Distribution Options Identified FEASIBLE SOLUTIONS Option 1 Establish Five New Substations starting with Toogoom in Option 2 Establish Five New Substations starting with Nikenbah in FINANCIAL ANALYSIS & RESULTS Format and Inputs to Analysis Regulatory Test Requirements Inputs to Analysis Financial Analysis Present Value Analysis Summary of Economic Analysis Discussion of Results FINAL REPORT & DECISION... 14

2 1. EXECUTIVE SUMMARY Ergon Energy is responsible (under its Distribution Authority) for electricity supply to the Hervey Bay area in southern Queensland. We have identified emerging limitations in the electricity distribution network supplying Hervey Bay. The loads on Ergon Energy s 132kV network supplying T59 Maryborough Substation and the 66kV and 11kV networks in Hervey Bay have progressively increased such that augmentation is required if reliable supply is to be maintained. The Hervey Bay area is presently supplied by 66kV feeders out of T59 Maryborough Substation, with some backup supply capacity from T131 Isis Substation. The Pialba, Pt Vernon and Torquay substations in Hervey Bay supply approximately 41,700 customers, while the Howard substation north of Maryborough supplies a further 4,200 customers. The summer 2008/09 peak load on T59 Maryborough Substation was 125.5MVA. The firm capacity of the Maryborough Substation is 180MVA following the installation of two new 100MVA transformers in 2007, but the firm capacity of the 132kV network supplying Maryborough Substation is 151MVA due to the summer noon emergency rating of the two 132kV lines from Aramara Substation. T59 Maryborough Substation maximum demand load is forecast to increase at 7.1% per annum, driven by load growth at the zone substations in Maryborough and Hervey Bay. The summer 2008/09 peak load on the Hervey Bay 66kV network load reached 65.8MVA. The firm capacity of the 66kV network supplying Hervey Bay is 73MVA. It is expected that the load on the Hervey Bay 66kV network will grow to exceed its N-1 capacity within two years, after which any 66kV line contingency will result in customer load shedding, low voltage situations at network extremities, brownouts, and possible damage to customer equipment. The loads on Torquay and Pialba Substations are forecast to exceed the firm substation capacities within the next four years, after which any transformer contingency will result in customer load shedding. The ongoing load growth in Hervey Bay over the next ten years will also burden the 11kV feeder network resulting in low voltage situations at feeder extremities and possible damage to customer equipment To meet the security of supply criteria for the Maryborough/Hervey Bay area Ergon Energy needs an additional minimum of 50.4MVA firm capacity at 132kV, and an additional minimum of 39MVA firm capacity at 66kV to be provided to this area. This size has been matched to expected load requirements within Ergon Energy s typical 10 year planning horizon. In order to ensure that supply to customers in the Maryborough/Hervey Bay area complies with Ergon Energy s security of supply criteria, initial corrective action will be required to be completed prior to the summer of 2012/13. A decision about the selected option is required by December 2009 if any option involving significant construction is to be completed by October Ergon Energy published a Request for Information relating to this emerging network constraint on 6 August 2009 and a Consultation Paper and Draft Recommendation on 17 September No submissions were received by the closing dates of 3 September 2009 and 1 October 2009 respectively. Two feasible solutions to the emerging network constraint have been identified: Option 1 Establish five new substations starting with Toogoom Substation in 2102 Option 2 Establish five new substations starting with Nikenbah Substation in 2102 In accordance with the requirements of the National Electricity Rules, this is now a Final Report where Ergon Energy provides both economic and technical information about possible solutions, and the solution decided on, being Option 1, to establish five new substations starting with Toogoom Substation by October Information relating to the consultation about this project is provided on our web site: For further information, please contact: Glenys Davies Ph (07) Glenys.Davies@ergon.com.au

3 2. INTRODUCTION Ergon Energy Corporation Limited (Ergon Energy) has identified emerging limitations in the electricity distribution network supplying the Hervey Bay area. When a distribution network service provider proposes to establish a new large distribution network asset to address such limitations, it is required under the National Electricity Rules (the Rules ) clause 5.6.2(f) to consult with affected Rules Participants, AEMO and Interested Parties on possible options to address the limitations. These options may include but are not limited to demand side options, generation options, and market network service provider options. Under clause 5.6.2(g) of the Rules the consultation must include an economic cost effectiveness analysis of possible options to identify options that satisfy the ACCC s Regulatory Test, while meeting the technical requirements of Schedule 5.1 of the Rules. This Final Report is based on: the assessment that a reliable power supply is not able to be maintained in the Hervey Bay area. the Request for Information consultation undertaken by Ergon Energy to identify potential solutions to address the emerging distribution network limitations; and an analysis of feasible options in accordance with the ACCC s Regulatory Test. Information relating to the consultation about this project is provided on our web site: For further information, please contact: Glenys Davies Ph (07) Glenys.Davies@ergon.com.au

4 3. BACKGROUND & REASONS AUGMENTATION IS REQUIRED 3.1. Background If technical limits of the distribution system will be exceeded and the rectification options are likely to exceed $10M, Ergon Energy is required under the National Electricity Rules 1 to notify Rules Participants 2 and Interested Parties 3 within the time required for corrective action and meet the following regulatory requirements: Consult with Rules Participants and Interested Parties regarding possible solutions that may include local generation, demand side management and market network service provider options 4. Demonstrate proper consideration of various scenarios, including reasonable forecasts of electricity demand, efficient operating costs, avoidable costs, costs of ancillary services and the ability of alternative options to satisfy emerging network limitations under these scenarios. Ensure the recommended solution meets reliability requirements while minimising the present value of costs when compared to alternative solutions 5. Ergon Energy is responsible for electricity supply to the Hervey Bay area (under its Distribution Authority) and has identified emerging limitations in the electricity distribution network supplying Hervey Bay. Augmentation to the electricity distribution network supplying this area is required if reliable supply is to be restored Purpose of this Final Report The purpose of this Final Report is to: Provide information about the existing distribution network in the Hervey Bay area. Provide information about emerging distribution network limitations and the expected time by which action must be taken to maintain the reliability of the distribution system. Provide information about options identified and considered. Explain the process (including approach and assumptions) and the ACCC s Regulatory Test used to evaluate alternative solutions, including distribution options. Report the solution Ergon Energy has decided on. 1 Section 5.6.2(f) 2 As defined in the National Electricity Law and the National Electricity Rules and including AEMO. 3 As defined in the National Electricity Rules. 4 National Electricity Rules section 5.6.2(f) 5 In accordance with the ACCC s Regulatory Test Version 2.

5 4. EXISTING SUPPLY SYSTEM TO THE HERVEY BAY AREA 4.1. Geographic Region The geographic region covered by this Final Report is broadly described as the Hervey Bay area and includes Hervey Bay City, the northern beach townships of Toogoom and Burrum Heads, and the town of Howard, as shown on the map below.

6 4.2. Existing Supply System T59 Maryborough Substation Supply Network T59 Maryborough Substation has one 90MVA and two 100MVA 132/66kV transformers in service which provide a firm substation capacity of approximately 180MVA. The substation is supplied via two 132kV circuits, each of which has a summer emergency rating of 151MVA, thus providing a firm network capacity of 151MVA at T59 Maryborough Substation. Consequently the N-1 capacity of the 132kV network supplying Maryborough, Hervey Bay and the surrounding area is 151MVA. Hervey Bay Supply Network Hervey Bay and surrounds is presently supplied by four zone substations. The Torquay zone substation has two 35MVA 66/11kV transformers and supplied a peak 2008/09 load of 32.6MVA. The Pialba zone substation has two 16MVA transformers and supplied a peak 2008/09 load of 16.6MVA. The Pt Vernon zone substation has two 16MVA transformers and supplied a peak 2008/09 load of 17.4MVA. A project is in progress to replace the Pt Vernon transformers with two new 32MVA units. The Howard zone substation has two 7.5MVA transformers and supplied a peak 2008/09 load of 9.9MVA. The peak loads on the zone substations are approaching or have exceeded the firm capacities of the substations. The zone substations in the Hervey Bay City area are supplied via a 66kV network from the T59 Maryborough Substation. The 66kV network consists of two 132kV circuits (presently energised at 66kV) between Maryborough and Nikenbah, connected onto older 66kV lines that complete the ring feed supplying Torquay, Pialba and Pt Vernon zone substations. Pt Vernon zone substation is supplied by a radial 66kV line from Pialba zone substation. The Maryborough-Nikenbah circuits have a maximum rating of 98MVA at 66kV, and the older 66kV lines have a maximum rating of 72MVA. Consequently the N-1 capacity of the 66kV network supplying Hervey Bay City is 72MVA. Howard zone substation is supplied by one 66kV line from T59 Maryborough Substation, with a backup supply 66kV line (which is run normally out-of-service) from T131 Isis Substation. In the event of a network contingency in the Hervey Bay City supply network, a 66kV line between Howard zone substation and Nikenbah can be manually connected into the Hervey Bay ring feed, but this would require many hours of switching and customer outages to implement. The 11kV network fed from the zone substations in the Hervey Bay City area comprises a total of eighteen 11kV feeders. These feeders supply customers including shopping centres, health services providers, aged care homes and multi-storey unit developments. Many of these feeders are exceeding their 75% rating. Ergon Energy s planning criteria requires that distribution feeder peak loads should be at or below the feeder 75% rating to allow for 4 into 3 load transfer during feeder outages. Therefore additional 11kV feeders in the Hervey Bay area are required to comply with this criterion. There is not sufficient physical space at Pialba or Torquay zone substations to install additional 11kV feeder bays for the required new 11kV feeders. Work is in progress to install an extra four 11kV feeder bays at Pt Vernon zone substation so that additional 11kV feeders cab be developed and connected. The distances from the Pialba and Pt Vernon zone substations to the developing northern beaches residential areas of Dundowran, Toogoom and Burrum Heads means that quite a large number of extra 11kV feeders will be required to restore compliance with Ergon Energy s planning criteria and the establishment of this large number of relatively long feeders will represent significant capital cost.

7 5. EMERGING DISTRIBUTION NETWORK LIMITATIONS T59 Maryborough Substation Supply Network The 2008/09 summer peak load for the T59 Maryborough Substation supply area was 121.4MVA. The load on T59 Maryborough Substation is forecast to continue to grow at 7.1% per year for the next 1 5 years, and 3.8% per year for the following 6 10 years. A load forecast is shown in Table 1 below. TABLE 1 T59 Maryborough Substation Load History & Year 06/07 07/08 08/09 09/10 10/11 11/12 12/13 18/19 T59 Maryborough Substation Load (MVA) N-1 Capacity is: 151MVA It is clear from the load data in Table 1 the firm capacity (151MVA) of the 132kV network supplying T59 Maryborough Substation will be exceeded during the next few years. Hervey Bay Supply Network During summer 2008/09 the daytime peak load supplied by the Hervey Bay 66kV network exceeded 65MVA. The capacity of an overhead powerline is dependant upon the surrounding ambient temperature, and therefore worst case line capacities occur during summer daytime. The firm summer day capacity of the 66kV Hervey Bay network is approximately 72MVA. Hervey Bay City is supplied from three substations; Torquay, Pialba and Pt Vernon zone substations. All these substations experience both summer and winter peak loads, and exhibit a commercial load shape with peak load occurring during daylight hours. The Hervey Bay maximum demand load is forecast to increase at up to 7.2% per annum for the next five years. A load forecast is shown in Table 2 below. TABLE 2 Hervey Bay Area Supply Substations Load History & Year 06/07 07/08 08/09 09/10 10/11 11/12 12/13 18/19 Torquay Substation Load (MVA) N-1 Capacity is: 38.0MVA Pialba Substation Load (MVA) N-1 Capacity is: 19.5MVA Pt Vernon Substation Load (MVA) N-1 Capacity is: 40MVA* Aggregate Load (MVA) * Pt Vernon will have two 32MVA transformers in service by mid-2010.

8 It is clear from the load data in Table 2 that:- The Hervey Bay load will exceed the firm capacity of the 66kV supply network supplying during summer 2010/11. The firm capacity of Torquay zone substation will be exceeded within the next four years. The firm capacity of Pialba zone substation will be exceeded within the next two years. The zone substations supply the commercial centres of Hervey Bay as well as the surrounding residential areas. A series of large commercial and high-rise unit developments are in progress or planned for development within the Hervey Bay CBD and this is driving the load growth on Torquay, Pialba and Pt Vernon zone substations. The loads on thirteen out of sixteen 11kV distribution feeders in the area have exceeded their preferred load capacities and the load levels on six of these feeders have exceeded their maximum ratings. The electricity demand growth in the Hervey Bay city area has been 10.2% per annum over the last three years and is forecast to continue at up to 7.2% per annum for the next five years Timeframes for Taking Corrective Action In order to ensure that security of supply to customers in the Hervey Bay area complies with Ergon Energy s planning criteria, corrective action will be required to be completed prior to the summer of 2012/13. A decision about the selected option is required by December 2009 if any option involving significant construction is to be completed by October Known Future Network and Generation Development (i.e. projects that have been approved and are firm to proceed) Ergon Energy is not aware of any other network augmentations or generation developments in the Hervey Bay area that could relieve the emerging network limitations described in section 5 above.

9 6. OPTIONS CONSIDERED 6.1. Consultation Summary During its planning process, Ergon Energy identified that action would be required to address an anticipated distribution network limitation related to supply to the Hervey Bay area. On 6 August 2009 Ergon Energy released a Request for Information providing details on the emerging network limitations in the Hervey Bay area. That paper sought information from Rules Participants, AEMO and Interested Parties regarding potential solutions to address the anticipated limitations. Ergon Energy did not receive any submissions by 3 September 2009, being the closing date for submissions to the Request for Information paper. Therefore, in accordance with the requirements of the rules 6, on 17 September 2009, Ergon Energy released a Consultation Paper and Draft Recommendation setting out feasible options, economic analysis and a draft recommended solution. There were no submissions received by the closing date on 1 October Non-Distribution Options Identified No non-distribution options have been identified Distribution Options Identified In addition to the consultation process to identify possible non-network solutions, Ergon Energy carried out studies to determine the most appropriate distribution network solutions. It was considered that a do nothing approach was unacceptable. Two feasible corrective solutions were identified, details of which are contained in the following Section 7.

10 7. FEASIBLE SOLUTIONS This section provides an overview of the feasible solutions identified, with full details of the financial analysis contained in Section Option 1 Establish Five New Substations starting with Toogoom in 2012 Option 1 Establish Five New Substations starting with Toogoom Date Req d Augmentation Capital Cost 2012 Establish new Toogoom 66/11kV Substation and 66kV supply lines to it $30.7M 2013 Construct new 66kV Toogoom-Pt Vernon line $6.3M 2013 Establish new Scarness 66/11kV Substation and 66kV supply lines to it $30.4M 2015 Establish New Nikenbah 132/66kV Substation $31.8M 2015 Construct new 132kV Aramara-Maryborough line & connect to supply Nikenbah 132/66kV Substation 2017 Establish new Booral 66/11kV Substation and 66kV supply lines to it 2019 Establish new Dundowran 66/11kV Substation and 66kV supply lines to it $80.0M $30.0M $26.0M This option involves: Establishment of a new Toogoom 66/11kV Substation and construction of a new 66kV line to supply it. The route length for this line is approximately 8.5km. This work will reduce the load on Pialba and Howard substations and their 11kV networks, and will also allow the Toogoom load to be transferred off the T59 Maryborough 132kV network and the Hervey Bay 66kV network and onto the T131 Isis 66kV network Construction of a new 66kV Toogoom-Pt Vernon line. The route length for this line is approximately 16.5km. This work will provide additional capacity in the Hervey Bay 66kV network, will provide N-1 line capacity to Pt Vernon Substation, and will allow the Toogoom and Pt Vernon loads to be transferred off the T59 Maryborough 132kV network and the Hervey Bay 66kV network and onto the T131 Isis 66kV network Establishment of a new Scarness 66/11kV Substation and construction of a new 66kV line to supply it. The route length for this line is approximately 2.5km. This work will reduce and maintain the loads on Torquay and Pialba substations to below their N-1 capacities for at least the next ten years Establishment of a new Nikenbah 132/66kV substation and provision of a new 132kV line to supply it. The new 132kV Aramara-Nikenbah line will developed by constructing a new Aramara- Maryborough line section and connecting it onto the existing Maryborough-Nikenbah line which is presently energised at 66kV. The route length for the new line section is approximately 33km. This work will reduce load on the T59 Maryborough 132kV network and secure 132kV supply to Hervey Bay Establishment of a new Booral 66/11kV Substation and construction of a new 66kV line to supply it. The route length for this line is approximately 7km. This work will eliminate low voltage and quality of supply problems in the River Heads area and also reduce the load on Torquay substation Establishment of a new Dundowran 66/11kV Substation and construction of a new 66kV line to supply it. The route length for this line is approximately 1km. This work will eliminate low voltage and quality of supply problems in the Dundowran area and also reduce the load on Toogoom and Pialba substations.

11 The Option 1 programme of works as proposed will have the following benefits: Provide new transformer capacity and 11kV feeder capacity to supply the present and future loads in the developing Hervey Bay area. Provide a high reliability, high quality supply to Hervey Bay customers. Provide increased network operational capability. Restore and maintain N-1 66kV network capacity to the Hervey Bay area. Maintain N-1 132kV network capacity to the Maryborough and Hervey Bay areas. Reduce network losses. Disadvantages of this option are: Nil 7.2. Option 2 Establish Five New Substations starting with Nikenbah in 2012 Option 2 Establish Five New Substations starting with Nikenbah Date Req d Augmentation Capital Cost 2012 Establish New Nikenbah 132/66kV Substation $31.8M 2012 Construct new 132kV Aramara-Maryborough line & connect to supply Nikenbah 132/66kV Substation $80.0M 2013 Establish new Scarness 66/11kV Substation and 66kV supply lines to it 2015 Establish new Toogoom 66/11kV Substation and 66kV supply lines to it $30.4M $30.7M 2015 Construct new 66kV Toogoom-Pt Vernon line $6.3M 2017 Establish new Booral 66/11kV Substation and 66kV supply lines to it 2019 Establish new Dundowran 66/11kV Substation and 66kV supply lines to it This option involves the same projects as listed in Option 1 but in a different order of staging. $30.0M $26.0M The Option 2 programme of works as proposed will have the following benefits: Provide new transformer capacity and 11kV feeder capacity to supply the present and future loads in the developing Hervey Bay area. Provide a high reliability, high quality supply to Hervey Bay customers. Provide increased network operational capability. Restore and maintain N-1 66kV network capacity to the Hervey Bay area. Maintain N-1 132kV network capacity to the Maryborough and Hervey Bay areas. Reduce network losses.

12 Disadvantages of this option are: This option involves a significantly higher cost for the initial projects than that for Option 1. This option will allow the load on the Hervey Bay 66kV network to exceed its N-1 capacity until This option will not rectify the low voltage and quality of supply problems in the 11kV network supplying the Toogoom area until This option will allow the load on Pialba Substation to exceed its N-1 capacity until This option will not provide N-1 66kV line capacity to Pt Vernon Substation till FINANCIAL ANALYSIS & RESULTS 8.1. Format and Inputs to Analysis Regulatory Test Requirements The requirements for the comparison of options to address an identified network limitation are contained in the Regulatory Test prescribed by the Australian Competition and Consumer Commission (ACCC). The Regulatory Test requires that, for reliability augmentations, the recommended option be the one that minimises the present value of costs, compared with a number of alternative options in a majority of reasonable scenarios. To satisfy the Regulatory Test, the proposed augmentation must achieve the lowest cost in the majority (but not necessarily all) credible scenarios. The Regulatory Test contains guidelines for the methodology to be used to identify the lowest cost option. Information to be considered includes construction, operating and maintenance costs and the costs of complying with existing and anticipated laws and regulations. The Regulatory Test specifically excludes indirect costs and costs that cannot be measured in terms of financial transactions in the electricity market Inputs to Analysis A solution to address the future supply requirements for the Hervey Bay area as outlined in this document is required to satisfy reliability requirements linked to Schedule 5.1 of the National Electricity Rules and the requirements of the Queensland Electricity Act According to the ACCC Regulatory Test, this means that the costs of all options must be compared, and the least cost solution is considered to satisfy the Regulatory Test. The results of this evaluation, carried out using a discounted cash flow model to determine the present value costs of the various options, are shown in section The cost to implement the network augmentations outlined in section 7 has been estimated by Ergon Energy. Sensitivity studies have been carried out using variations in capital cost estimates of plus or minus 20%. The operating and maintenance costs have been derived as a fixed proportion of capital cost. As a result, a variation in capital costs would be equivalent to separately varying the operating and maintenance cost. The financial analysis considers all foreseeable cost impacts of the proposed network augmentations to market participants as defined by the regulatory process. Estimated savings in the cost of network losses have been excluded from the analysis because they were not found to differ significantly between the two feasible options over the 15 year study period.

13 8.2. Financial Analysis The economic analysis undertaken considered the present value of cost of alternative options over the 15 year period from 2009 to Present Value Analysis Financial analysis was carried out to calculate and compare the Present Value (PV) of the costs of each option under the range of assumed scenarios. A 15 year analysis period was selected as an appropriate period for financial analysis. A discount rate of 10% was selected as a relevant commercial discount rate. The Base Case (Scenario A) was developed to represent the most likely market scenario. Market scenarios B - G were formulated to test the robustness of the analysis to variations in load forecast, capital costs and the discount rate. As required by the Regulatory Test, the lower boundary of the sensitivity testing was the regulated cost of capital. Under the Regulatory Test, it is the ranking of options which is important, rather than the actual present value results. This is because the Regulatory Test requires the recommended option to have the lowest present value cost compared with alternative projects. The following table is a summary of the economic analysis. It shows the present value cost of each alternative and identifies the best ranked option, for the range of scenarios considered. The summary shows that Option 1 (establish five new Substations starting with Toogoom in 2012) has the lowest present value under all scenarios Summary of Economic Analysis Option 1 New Nikenbah 66kV Switching Station Option 2 Rebuild 66kV Maryborough-Howard Feeders Scenario A PV ($M) $ $ Base Case Rank 1 2 Scenario B PV ($M) $ $ Low Load Growth Rank 1 2 Scenario C PV ($M) $ $ High Load Growth Rank 1 2 Scenario D PV ($M) $ $ Discount Rate = 12% Rank 1 2 Scenario E PV ($M) $ $ Discount Rate = 8.5% Rank 1 2 Scenario F PV ($M) $ $ Increased Capital Costs Rank 1 2 Scenario G PV ($M) $ $ Decreased Capital Costs Rank 1 2

14 8.3. Discussion of Results The following conclusions have been drawn from the analysis presented in this report: There is no acceptable do nothing option. If the emerging network constraints are not addressed by summer 2012/13, Ergon Energy will not be able to meet its security criteria in the event of a failure of a 132kV line to T59 Maryborough, or a 66kV feeder in the Hervey Bay area, or a single transformer at Pialba or Torquay Substations, resulting in likely loss of supply to network users. Economic analysis carried out in accordance with the Regulatory Test has identified that proposed augmentation described in Option 1 establish five new substations in the Hervey Bay area starting with Toogoom Substation in 2012, is the least cost solution over the 15 year period of analysis in all scenarios considered. Sensitivity testing showed that the analysis is robust to variations in capital costs and the selected discount rate. As Option 1 is the lowest cost option in all scenarios, it is considered to satisfy the ACCC Regulatory Test. 9. FINAL REPORT & DECISION Based on the conclusions drawn from the analysis in sections 7 and 8 above, it is Ergon Energy s decision to proceed with Option 1 to:- Establish Toogoom 66/11kV Substation and its associated 66kV and 11kV supply lines for a cost of $30.7M with commissioning to be scheduled for October Construct a new 66kV line between Toogoom and Pt Vernon Substations for a cost of $6.3M with commissioning to be scheduled for October Establish Scarness 66/11kV Substation and its associated 66kV and 11kV supply lines for a cost of $30.4M with commissioning to be scheduled for October Establish Nikenbah 132/66kV Substation and develop 132kV Aramara-Nikenbah lines to supply it at a cost of $111.8M with commissioning to be scheduled for October Establish Booral 66/11kV Substation and its associated 66kV and 11kV supply lines for a cost of $30.0M with commissioning to be scheduled for October Establish Dundowran 66/11kV Substation and its associated 66kV and 11kV supply lines for a cost of $24.0M with commissioning to be scheduled for October Technical details relevant to the proposed new large distribution assets are contained in section 7.1. Ergon Energy now intends to take immediate steps to implement the solution decided on to ensure system reliability is maintained.