Audit Report Rio Tinto 2012 Network Quality and Reliability of Supply Performance Audit - Operation of Compliance Monitoring Systems

Transcription

1 ABN Rio Tinto 2012 Network Quality and Reliability of Supply Performance Audit - Operation of Compliance Monitoring Systems Telephone: Fax: projects@qualeng.net Web: Postal Address: PO Box Z5261, St George s Terrace, PERTH WA 6831 Office: Level 2, 231 Adelaide Terrace, Perth, Western Australia, 6000

2 executive summary Under the Electricity Industry (Network Quality and Reliability of Supply) Code 2005 (the Code), Division 3, Section 26, Rio Tinto is required to arrange for an independent audit of the operation of the systems that are in place to monitor its compliance with Part 2 of the Code or an instrument made under Section 14(3). In August 2012 Rio Tinto commissioned to carry out the audit in respect of the operation of such systems to cover the period 1 July 2011 to 30 June The audit was conducted between August and September 2012 and included:! review of actions resulting from previous audit recommendations,! access and review of supporting documentation,! interviews of key personnel,! review of evidence, data, reports and processes demonstrating the operation and performance of the systems. The audit found that five actions arising from the previous audit have been completed; one action, regarding the creation of maps to demonstrate the process work flows is still in progress. Rio Tinto has a system in place to monitor the quality of supply at its five town sites. Rio Tinto work management system creates monthly jobs to initiate the power quality measurements required by the Act. Measurements at one site had not commenced at the start of the audit. Some of the flicker peaks were higher than limits. Harmonics measurements were confined to THD (Total Harmonic Distortion). No complaints were received from customers on power quality. Interruptions are managed using forms and an Outage Database which records all data relevant to the interruption. Alternative supplies are arranged at all sites to mitigate the effect of interruptions.

3 There is a system for managing planned outages and customers' notifications, however at this point there is no documented notification procedure. Extensive preparation and advance notification was noted on planned outages that were due to affect several customers. The number and duration of interruptions are reported. The system identifies customer numbers, however it does not identify the individual customers affected by interruptions at present. Actions are in place to review the customer information system and address the limitations of the present system. Statistics for duration of interruptions have been readjusted to cover the required four years rather than five as reported previously. Overall the audit found that the system had been substantially improved since the last audit. Some actions are still required to further improve the system, however the processes show maturity in implementation. There was awareness of the Code requirements in all interviews and the attitude displayed by staff throughout the audit was very positive and commendable. Based on the scope of the audit defined in section 26 of the Code has found that the system and processes within Rio Tinto are in compliance with the requirements of Part 2 of the Code, "Quality and Reliability Standards".

4 This report is an accurate representation of the findings and opinions of the auditors following the assessment of the client's conformance to nominated Licence conditions. The review is reliant on evidence provided by other parties and is subject to limitations due to the nature of the evidence available to the auditor, the sampling process inherent in the audit process, the limitations of internal controls and the need to use judgement in the assessment of evidence. On this basis shall not be liable for loss or damage to other parties due to their reliance on the information contained in this report or in its supporting documentation. Approvals Representation Name Signature Position Date Auditor: M Zammit Lead Auditor / Engineering Manager, 20/09/2012 Audit Team M Zammit Description Audit Team Project Director and Lead Auditor Issue No Issue Status Date Description Approved 1 19/09/2012 First issue MZ 2 20/09/2012 Final issue MZ AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 4 of

5 TABLE OF CONTENTS 1 OBJECTIVES AND SCOPE OF AUDIT Introduction Audit Objectives Audit Scope Audit Methodology Limitations and Qualifications Acronyms and Abbreviations LICENSEE'S RESPONSE TO PREVIOUS AUDIT RECOMMENDATIONS Background Progress of actions from 2011 Audit KEY FINDINGS System to manage compliance with Part 2, Division 1, Quality Standards (sec. 5 to 8) Quality of Supply - System/Process Evidence of power quality issues and reports System to manage compliance with Part 2, Division 2, Standards for Interruption of Supply Maintain the supply with a minimum number and duration of interruptions (Sec. 9) Reduction of effects of interruptions and provision for alternative supplies for proposed interruptions (Sec. 10) Planned interruptions (Sec. 11) Significant interruptions to small use customers (Sec.12) System to manage compliance with Part 2, Division 3, Standards for the duration of interruption of supply in particular areas (Sec. 13) AUDIT SUMMARY AND RECOMMENDATIONS...21 AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 5 of

6 1 Objectives and Scope of Audit 1.1 INTRODUCTION Rio Tinto supplies electricity services to five town sites in Western Australia, including Dampier, Pannawonica, Wickham, Tom Price and Paraburdoo. Rio Tinto has an exemption from the licensing regime under the Electricity Industry Act 2004, however it still has to comply with the Electricity Industry (Network Quality and Reliability of Supply) Code 2005 (the Code). In accordance with Division 3 "Performance reporting", Section 26 "Annual report on monitoring systems" of the Code, Rio Tinto is required to arrange for an independent audit of the operation of the systems that are in place to monitor its compliance with Part 2 of the Code or an instrument under Section 14(3). In August 2012 Rio Tinto commissioned to carry out the annual audit to cover the period 1 July 2011 to 30 June The audit has been conducted and this report prepared in accordance with the Code. 1.2 AUDIT OBJECTIVES The purpose of the Network Quality and Reliability of Supply (NQRS) audit is to assess and report on the operation of the systems implemented by the licensee to monitor its compliance with Part 2 of the Code or an instrument under section 14(3). 1.3 AUDIT SCOPE Part 2 of the Code includes 4 Divisions: 1. Division 1, "Quality Standards" for compliance with requirements for quality of supply at the point of connection to the customer, in regard to voltage fluctuations and harmonic distortion. 2. Division 2, "Standards for the interruption of supply to individual customers" provides for the maintenance of supply and management of interruptions to customers, both in terms of the duration and number of interruptions. It includes for: 2.1. Provision of supply with the minimum number and duration of interruptions Consideration of providing alternative supply if the interruption is expected to be significant, its effect substantial or if the customer has special health needs that require continuous supply Allowing planned interruptions if the customer is notified within a suitable time and where AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 6 of

7 the duration is under 6 hours, or under 4 hours for temperatures over 30 C or north of the 26th parallel Provides for the distributor to remedy the causes of interruptions or enter into alternative arrangements if the supply has been interrupted more than 12 hours continuously or more than 16 times in the prescribed 12 months and it is considered that the prescribed standard is unlikely to be met for the customer. 3. Division 3, "Standards for the duration of interruptions of supply in particular areas" provides that the average length of interruptions be less than 290 minutes in any area of the State, other than the Perth CBD and urban areas and 160 minutes for urban areas other than the Perth CBD (calculated as average of the yearly averages over 4 years). 4. Division 4, "Variations of obligations under this Part" provides for: 4.1. review and approval by the Minister of alternative requirements and 4.2. agreement between the transmitter/distributor and the customer of extensions and modifications to the standards. The audit was carried out between August and September On Rio Tinto's behalf various representatives participated in the audit, contributed to sourcing the documentation and providing evidence to the audit. Staff interviewed were: Operations & Services:! Noel Michelson, Network Control Superintendent;! Teagan Penny, Compliance advisor; Asset Management: Dampier:! John Taylor, Long Term Planner;! Russell Turner, Superintendent Maintenance Dampier;! Michael Sillick, Supervisor, Dampier;! Russell Balch, Planner & Scheduler; Pannawonica! Andrew Pezzali, Superintendent Maintenance, Pannawonica Robe River Wickham! Darrol Parsonage, Superintendent Maintenance, Wickham;! Simon Millward, Reliability Engineer;! Matt McDermott, Planner & Scheduler; Paraburdoo: AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 7 of

8 ! Ross George, Maintenance Superintendent;! Peter Linde, Maintenance Supervisor; Tom Price:! John Spence, Maintainer Superintendent;! John Brockman, Planner & Scheduler;! Daniel Abetz, Reliability Engineer; Customer Services:! Gary Boylan, Customer Services Superintendent;! Michelle Jeffery, Customer Services Supervisor. Mr Noel Michelson coordinated the audit on behalf of Rio Tinto. The main auditor representatives were Mr M Zammit, Lead Auditor and Mr S Campbell, Reviewer. 1.4 AUDIT METHODOLOGY The audit followed in part the methodology defined in the Authority's Audit Guidelines: Electricity, Gas and Water Licences, August 2010 including:! preparation of an audit plan and risk assessment for internal control,! fieldwork,! reporting. The audit proceeded through a documentation review, meetings, interviews and checks of processes. These were supported by additional queries to clarify aspects of Rio Tinto policies and procedures. 1.5 LIMITATIONS AND QUALIFICATIONS An audit provides a reasonable level of assurance on the effectiveness of control procedures, however there are limitations due to the nature of the evidence available to the auditor, the sampling process inherent in checking the evidence, the limitations of internal controls and the need to use judgement in the assessment of evidence. 1.6 ACRONYMS AND ABBREVIATIONS AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 8 of

9 Abbreviation CAIDI SAIDI SAIFI THD Description CustomerAverage Interruption Duration Index System Average Interruption Duration Index System Average Frequency Duration Index Total Harmonic Distortion AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 9 of

10 2 Licensee's Response to Previous Audit Recommendations 2.1 BACKGROUND The previous quality and reliability of supply audit was completed in October This section reviews Rio Tinto's progress on that audit recommendations as well as Rio Tinto's planned actions to address any outstanding issues. The recommendations arising from the previous report and the confirmation and status of actions determined in this audit have been summarised in the following table. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 10 of

11 PERFORMANCE AUDIT - OPERATION OF COMPLIANCE REF 63/1 2.2 PROGRESS OF ACTIONS FROM 2011 AUDIT Item No Requirement Findings Process / Procedure / Evidence Status 11/ Induction of new staff on process requirement now man-to-man, simple checklist will be adequate. Training department was going to be established and will formalise induction.! New training department has been established and has started to develop New Starter Packs (Paraburdoo). Action has been implemented. Completed Process effectiveness, create process roadmap to link processes, show interactions (inputs & outputs) and responsibilities:! Action is still in progress. 1. In progress. e.g. outage reporting exists but as unclear responsibilities and lack of controls Responsibilities: Service level agreement between asset owner and service provider not seen. Expected inputs e.g. inspection/ maintenance records/ load changes to influence capital plan. Annual Capital Plan & Maintenance Plan directed by Asset Manager. Documenting process can enhance Outage Management, outages identified by field staff,! Utilities now are responsible for the assets. Recommendation is not applicable any longer.! Second paragraph of the recommendation is not applicable to this Code.! A system is now in place to address outages. It includes: Outage recording in Outage Database 2012 Action closed Action closed. New recommendations are included in the report. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page11 of

12 PERFORMANCE AUDIT - OPERATION OF COMPLIANCE REF 63/1 Item No Requirement Findings Process / Procedure / Evidence Status reports are not accurate or consistent to call centre, need responsibilities, KPIs, manage responsibilities Responsibilities are not clear to staff Stronger supervision, review, sign off, managing staff performance Customer DB (and special needs customers) not always consulted in outage planning. Use a check and sign-off on Outage Registration Form to assign responsibility to outage supervisor Power quality monitoring: need regular PQ monitoring, at least 1/y at one of the extremities of LV network (on rotating basis) /y monitoring measurements for each town distribution network. Recording of all required data in database Identification of responsibilities Notifications to customers Trail of follow-up actions is recorded in the database Closure of actions is recorded in database.! Customer management needs improvement, this finding is noted in the new recommendations.! Power quality monitoring has been implemented, details are noted in the report. Except for one site that has not started the monitoring regime, all other sites have implemented the process. Action closed. new observations are included in the report Need accurate recording of number and duration of significant interruptions to Small Use Customers (SUC). Insufficient details in DB for each individual customer.! The Outage Database 2012 includes records of interruptions. The outage system includes a "Network Control - System Disturbance Data Power" form which records the duration, location and the number of customers affected by outages. Through identification of network location there is identification of customers affected. Action closed. New recommendations on customer information system are included in the report. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page12 of

13 3 Key Findings 3.1 SYSTEM TO MANAGE COMPLIANCE WITH PART 2, DIVISION 1, QUALITY STANDARDS (SEC. 5 TO 8) The Licensee is required to comply with requirements for quality of supply at the point of connection to the customer, both in terms of voltage fluctuations and harmonic distortion and to disconnect the customer where there is a possibility of damage to the customer installation Quality of Supply - System/Process Quality of supply monitoring takes place monthly in accordance with automatically initiated PM01 jobs created by the enterprise work management system in SAP. The test is performed in accordance with procedures Network Routine Quality of Supply Monitoring and Procedure for Quality of Supply Testing which include instructions for the measurement of power quality through harmonic and flicker testing. Currently the testing procedure includes testing of both short term and long term flicker and reporting to the superintendent of regulatory compliance if a "Quality of Supply" test fails. In practice it was found that field staff carried out both measurements however the process is still in the early stages of implementation and at this point no action had been taken to review any flicker spikes. In regard to harmonics measurements, Total Harmonic Distortion (THD) is measured, however there are no measurements of individual harmonics. It is noted that the THD measurements sighted were well below the Code limits. Site Flicker (Pst! 1.0; Plt! 0.8) Dampier Pst 0.2 with peak at 0.7, viewed Plt peak at 0.3 tested between 11/6 and 18/6/2012 Pannawonica Pst < 0.4 with one peak at 1.3 Wickham Plt < 0.4 with peak at 0.7 Pst < 0.2 with single spikes at 1.1 and 1.6 Plt < 0.2 with spikes at 0.5 and 0.7 Harmonics (THD! 8%) Measured on three phases with peak at 1.3% THD Measured on three phases, minimal values. Measured on three phases, minimal values. Customer Complaints Related to PQ No No No AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 13 of

14 Tom Price Paraburdoo Site Flicker (Pst! 1.0; Plt! 0.8) Not doing tests but has the capability (equipment now available) Pst under 0.5 with excursion to 4 (28/3 to 4/4/12) - only on 1 phase [27.9] Harmonics (THD! 8%) Not doing tests but has the capability (equipment now available) Under 1.6% with 1 spike at 2% (8/1 to 15/1/12) Customer Complaints Related to PQ No No Pst under 0.5 with many spikes to 1.8 with 2 peaks at 4 Plt Under 0.8 with 2 excursions to (1/1/12 to 4/1/12) Disconnection if Quality of Supply may Lead to Damage The field crews can disconnect the customer if they determines that the customer installation may be damaged due to supply quality Evidence of power quality issues and reports Review of the systems, processes and practices dealing with quality of supply has shown the following gaps: 2. The program of power quality measurements had not yet started at Tom Price. The equipment is now available and the field staff are aware of procedure and requirements. 3. Flicker average measurements were below limits; however at some sites there were spikes above the limits: 3.1. Pannawonica with peak at 1.3; 3.2. Paraburdoo, excursions to 4; 3.3. Wickham. 4. Harmonics measurements: Total Harmonic Distortion (THD) is measured, however there are no measurements of individual harmonics. There were no "quality" events reported during the audit period and no complaints on power quality. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 14 of

15 3.2 SYSTEM TO MANAGE COMPLIANCE WITH PART 2, DIVISION 2, STANDARDS FOR INTERRUPTION OF SUPPLY The Licensee has to comply with requirements for the management of interruptions to customers, both in term of the duration and number of interruptions. The requirements are for the Licensee to:! Maintain the supply with the minimum number and duration of interruptions.! Reduce the effects of interruptions; provide alternative supply if the proposed interruption is expected to be significant, its effect substantial or if the customer has special health needs that require continuous supply.! Ensure that where interruptions are planned, where practicable the customer is notified within a suitable time and the duration is kept under 6 hours, or under 4 hours for temperatures over 30 C or north of the 26th parallel.! Remedy the causes of interruptions or enter into alternative arrangements if the supply has been interrupted more than 12 hours continuously or more than 16 times in the prescribed 12 months and it is considered that the prescribed standard is unlikely to be met for the customer Maintain the supply with a minimum number and duration of interruptions (Sec. 9) Rio Tinto has procedures for dealing with outages and maintaining the supply with a minimum number and duration of interruptions. The policy is provided by the "Network Control Guiding Principles" which addresses the directions for managing interruptions and remedial actions. Instruction CRI 1.07 "Outage Management" covers outages for planned, unplanned and emergency outages. A form is in use Network Control - System Disturbance Data/Power, which is used to record the conditions of the interruption:! location and time;! cause of incident;! description of incident;! duration;! number of customers affected. The form is ed to the Operation Centre Network Advisor and the information is entered in the "Outage Database 2012". A separate SMS System generates pre-formatted messages to pre-set lists of stakeholders. The database stores:! all documents linked to the outage, such as: screenshots of system operation at the time of the incident and reports;! identifies whether the Authority needs to be informed; AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 15 of

16 ! when towns and residential customers are affected, the number of customers affected and the duration of the outage. Some of the town sites had flexibility due to design of the network, so that loss of power from one feeder could be mitigated by the availability of a second feeder The number of outages is monitored through reports, if the number increases investigation on reasons for increase are carried out. Forced outages are subject to investigations:! Network Control Outage Report, System Wide 220kV Outage 2 November 2011 reports on an analysis into the events causing a system wide 220kV outage at 2:17am, on Wednesday the 2nd of November. Dampier Site Procedures dealing with outages Procedures monitoring performance Pannawonica Wickham Tom Price Paraburdoo Yes Yes, records in central database, causes recorded, reports available. Selected outages are investigated Reduction of effects of interruptions and provision for alternative supplies for proposed interruptions (Sec. 10) All sites had arrangements to provide alternative supply for extended outages and all staff interviewed on sites were aware of the requirement. Discussion with Customer Services indicated that the customer information system is in need of an overhaul and is under review:! the current system OVSD (Open View Service Desk) records customer calls, the calls entered are classified as complaints, queries, fault or feedback. Sites do not have access to OVSD. If the call is critical s are initiated;! linkage of customers to the network are managed manually;! the UMS (Utilities Management System) stores customer connection and account data;! the enterprise management system stores customer accounts. Overall the system for handling customers and identifying special needs (SN) customers is still informal. It relies on customers advising Rio TInto of their special needs. At this point there is no corporate function managing customers' information. The sites are left with the task of managing SN customers and being responsible for communicating with them in regard to forthcoming outages. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 16 of

17 Site Alternative Supply Special Needs Customers Dampier Yes No Pannawonica Yes No Wickham Yes; ability to switch to other lines 2 Tom Price Yes Not known Paraburdoo Yes No 5. There is no formal system for managing special needs (SN) customers. Sites are left with the task of managing SN customers and being responsible for advising them of outages Planned interruptions (Sec. 11) There is no documented procedure on handling of notification, however the process is mature and in operation. Notices are dropped by field staff to customers that will be affected by planned outages, the audit sighted forms issued by individual sites. As noted above, outages are entered into the "Outage Database 2012". The database shows the number of customers affected, date and length of interruptions. Reports can be adapted to requirements. Sighted a report for interruptions greater than 12 hours. Site Dampier Pannawonica Wickham Tom Price Paraburdoo Yes Yes Yes Yes Notification 72 hours prior and Duration < 4h Yes; Usually two notifications for planned outages, at 2 weeks and 48 hours. Most sites were found to be aware of the correct requirements for providing notices to customers. Outages of duration longer that 4 hours receive special treatment. If the interruption is due to be longer that 4 hours sites deal directly with customers. Paraburdoo has offered alternative accommodation to customers if required. Eight hour outages at Pannawonica due to the project "Pannawonica Town high voltage conductor replacement" were preceded by presentations to the public advising of the program of outages and of available facilities during the outages. One site notification timing was not as per Code requirements. Paraburdoo site identified that a procedure / flowchart should be available to address notification to AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 17 of

18 customers [27.9]. 6. There is no formal system for notification of outages to customers. In practice sites are responsible for advising customers of outages and were found to provide that function consistently. A procedure (or a simple flowchart) will be of assistance to sites in managing notifications Significant interruptions to small use customers (Sec.12) Requirement: For significant interruption (duration over 12 hours or more than 16 interruptions in the preceding year) where the licensee considers that the standard is unlikely to be met the licensee is required to remedy the causes of interruptions or make alternative arrangements. The Outage Database 2012 provides reports for significant interruptions with duration over 12 hours. The reports sighted showed that there were interruptions greater than 12 hours at four of the five sites and that for each interruption the causes had been identified. Data was available to show the performance over the past years, records sighted showed that the causes of the interruptions had been identified and actions taken to remedy the causes. There were no sites where customers experienced more that 16 interruptions in the year over the audit period. There is not sufficient capability in the present system to clearly identify the individual customers affected by outages. The assessment the annual number of interruptions is made based on local information and knowledge of the network configuration. There are actions in progress to review the customer information system and address the limitations of the present system. Site 2012 > 12 hours 9 Years out of 10 (< 12 hours) 2012 > 16# 9 Years out of 10 (<16#) Causes of Interruption Remedied / Alternative Arrangements Compliance Compliance 2012 Dampier 1 No (2006) No 1 Note 2) Yes Pannawonica 1 No (2008) No Note 2) Yes Wickham 1 No (2011) No Note 2)) Yes Investigation Tom Price 1 No (2009) Note 2 Note 2 Yes AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 18 of

19 Site 2012 > 12 hours 9 Years out of 10 (< 12 hours) 2012 > 16# 9 Years out of 10 (<16#) Causes of Interruption Remedied / Alternative Arrangements Paraburdoo - No (2006, 7, 8, 9, 10) Note 2 Note 2 - Note 1: Of the 12 interruptions in Dampier, four were related to single customers at different addresses, so that no customer was subject to 12 interruptions. Note 2: There were 16 interruptions in Tom Price and 21 in Paraburdoo in the period, however there is no automatic capability in the system to identify if the same customers were subjected to any or all of the outages, traceability is manual. 7. There is not sufficient capability in the present system to clearly identify the actual customers affected by outages. Current actions to review the customer information system and address the limitations of the present system should be continued. 3.3 SYSTEM TO MANAGE COMPLIANCE WITH PART 2, DIVISION 3, STANDARDS FOR THE DURATION OF INTERRUPTION OF SUPPLY IN PARTICULAR AREAS (SEC. 13) The Code provides that the average length of interruptions for the four years up to the current year for areas other than the Perth CBD to be less than 160 minutes in urban areas and less than 290 minutes in any other area of the State. Overall figures for the system comply with requirements. Of the townsites:! Tom Price is high in 2012 due to its earlier connection to an old and problematic 220/33 kv substation, now removed.! Pannawonica figures for the year are within limits, the four year average is high due historically high past interruptions. Site 2012 ( < 290 m) 4 Year Average (Avg over 4 years! 290 min) (For information only) Figures have been calculated over 5 years up to All sites Dampier Pannawonica Wickham AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 19 of

20 Site 2012 ( < 290 m) 4 Year Average (Avg over 4 years! 290 min) Tom Price Paraburdoo Previous reports had calculated the performance over 5 years rather than 4 years. The 2012 Report calculates figures over 4 years, starting from 2008/09. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 20 of

21 4 Audit Summary and Recommendations Under Section 26 "Annual report on monitoring systems" of the Code, Rio Tinto is required to arrange for an independent audit of the operation of the systems that are in place to monitor its compliance with Part 2 of the Code. or an instrument under Section 14(3). The audit has found that systems are in operation and are in general compliance with the requirements of the Code except as noted below in the summary. Actions resulting from the previous audit have been completed except for one action, regarding the creation of maps to demonstrate the process work flows, which is still in progress.. Table 1 below provides a summary of the findings and recommendations of the report in regard to the system operation. The table rates the various element as satisfactory (!), unsatisfactory ("), or as actions in progress, observations or opportunities for improvement. Throughout the audit it was noted that staff were committed to implementing and improving the systems for managing the quality and reliability of the networks. The response to queries was prompt and staff attitude was commendable. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page 21 of

22 PERFORMANCE AUDIT - OPERATION OF COMPLIANCE REF 63/1 Table 1: Systems Compliance Code Division, Section Div 1, Sec. 5-7 Code Requirement General system Quality and Reliability standards: voltage fluctuations, harmonics. Evidence of System Evidence of Process!! Findings / Comments Recommended Corrective Actions / Measurements are systematic, generated from SAP system and occur monthly. There were no complaints from customers on quality of supply. The program of power quality measurements had not yet started at Tom Price. The equipment is now available and the field staff are aware of procedure and requirements. Some flicker readings higher than requirement. No system action taken to check high readings. THD is measured. Opportunities for Improvement (OFI) 1. Continue with the creation of process maps to link processes, show interactions (inputs & outputs) and responsibilities. 2. Improve scaling of traces of power quality measurement. [OFI] 3. Start and monitor program of power quality measurements at Tom Price. 4. Implement recognition and review of flicker measurements in excess of Code limits. 5. Assess measurements of individual harmonics. No measurements carried out on each harmonic. Div 1, Sec. 8 Duty to disconnect if damage may result due to power quality.!! Responsibility to disconnect customers remains with the service crew. Div 2, Sec. 9 Maintain the supply with a minimum number and duration of interruptions.!! A response system is in place to attend to faults and interruptions and to address loss of supply. Complies. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page22 of

23 PERFORMANCE AUDIT - OPERATION OF COMPLIANCE REF 63/1 Code Division, Section Div 2, Sec. 10 Div 2, Sec. 11 Div 2, Sec. 12 Div 3, Sec. 13 Part 4, Div. 3, Sec. 27 Code Requirement Reduction of effects of interruptions or provision for alternative supplies for proposed interruptions. Planned interruptions. Significant interruptions to small use customers (> 16 times or > 12 Hours). Standards for the duration of interruption of supply in particular areas (30, 160, 290 min) Publication of information about performance. Evidence of System Evidence of Process!!!!!!!!!! Findings / Comments Recommended Corrective Actions / There is no formal system for managing special needs (SN) customers. Sites are left with the task of managing SN customers and being responsible for advising them of outages. A review of Customer Service systems is in place to address limitations of present system. There is no formal system for notification of outages to customers. In practice sites are responsible for advising customers of outages and were found to provide that function consistently. A procedure (or a simple flowchart) will be of assistance to sites in managing notifications. There were interruptions greater than 12 hours at four of the five sites. For each interruption the causes had been identified and rectified. Sites showed that extended planned outages had been preceded by notifications and the special arrangements had been put in place. There were no sites where customers experienced more that 16 interruptions in the year over the audit period Previous report covered 5 years rather than 4. New report statistic will be improved by removing high impact events from 2008/08. Complies with direction from Authority. Opportunities for Improvement (OFI) 6. Continue with the review and development of improved Customer Service systems to enable better traceability of customers within the network, clearly identify the actual customers affected by outages and identification of customers with special health needs. 7. Create a procedure (or a simple flowchart) to guide sites in managing notifications. Recommendation included in 6. above. AUDITREPORT-63-1-RIO TINTO QUAL&RELIAB-02 Page23 of