Before the West Coast Regional Council Proposed Regional Policy Statement Hearing Panel

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1 Before the West Coast Regional Council Proposed Regional Policy Statement Hearing Panel Under the Resource Management Act 1991 In the matter of Proposed West Coast Regional Policy Statement Between West Coast Regional Council Local Authority And Transpower New Zealand Limited Sumitter 60 / Further Sumitter 60 Statement of Evidence of Daniel Hamilton for Transpower New Zealand Limited Dated 20 April 2018

2 Qualifications and Experience 1 My full name is Daniel Hamilton. 2 I am the Acting Environmental Regulatory Team Leader at Transpower New Zealand Limited ( Transpower ). My team sits within Transpower s Environmental Policy and Planning Group, whose responsiilities include: a Strategic planning. This is achieved through the development and implementation of Transpower s Corridor Management Policy at a national level and local level; Delivering Transpower s policy approach on environmental regulations, legislation and council planning documents; c Ensuring the protection of Transpower's network; d Ensuring that all environmental approvals are otained for Transpower s physical works; and e Managing third party interactions to ensure that Transpower s interests are appropriately maintained. 3 I have een employed y Transpower for almost two and a half years, and during this time I have had experience working in various roles; including: a Senior Planner in the Environmental Regulatory team. This role involved working on implementing Transpower s corridor management programme in regional and district planning processes to ensure planning documents gave full effect to the National Policy Statement on Electricity Transmission 2008; Acting Environmental Consents & Compliance Team Leader. This role involved leading the team at Transpower responsile for ensuring all of Transpower s maintenance works (e.g. transmission pole replacements, transformer replacements, tower painting etc.) across the National Grid have the necessary environmental approvals. c Acting Environmental Regulatory Team Leader. In this, my current role, I lead the team at Transpower responsile for advocating for Transpower s interests in District, Regional and National planning and policy documents, providing environmental input into major projects, and managing pulic and private development in the vicinity of National Grid assets. 1

3 4 I have a Bachelor of Science Degree with Honours (First Class) from the University of Canterury, and a Master of Business Administration degree from the Henley Business School, England. I am an Associate Memer of the New Zealand Planning Institute and have over 11 years of RMA experience, including compliance and enforcement, regional plan drafting and regional policy statement development. 5 I confirm that I am authorised to give this evidence on ehalf of Transpower. Scope of Evidence 6 My evidence will address the following: a Introduction to Transpower; c Transpower s assets within the West Coast Region, and the significant role these play locally, regionally and nationally; Transpower s approach to implementing the National Policy Statement on Electricity Transmission ( NPSET ) in regional policy statements; d Reverse sensitivity and other effects on the National Grid; and e The relief sought y Transpower in relation to the Proposed West Coast Regional Policy Statement ( RPS ). Summary of Evidence 7 Transpower owns and operates the National Grid, which transmits electricity throughout New Zealand. There are 424 km of National Grid lines in the West Coast Region. Specifically, the transmission infrastructure within the West Coast Region comprises three 66 kv 1 transmission lines, a 66 kv underground cale, nine 110 kv transmission lines, a fireoptic telecommunications cale, and sustations at Atarau, Doson, Inangahua, Otira, Waimangaroa and Westport. This infrastructure plays a critical role in keeping the lights on. 8 The National Grid is critical to the West Coast Region s, and New Zealand s, social and economic welleing. The need to operate, maintain, develop and upgrade the National Grid is a matter of national significance (clause 4, NPSET). 1 kv = kilovolts, where 1 kv = 1000 volts. 2

4 9 The NPSET requires the National Grid to e appropriately recognised in the RPS. Introduction to Transpower Transpower s role 10 Transpower is the State Owned Enterprise that plans, uilds, maintains, owns and operates New Zealand s electricity transmission network, the National Grid. The Grid links electricity generators to distriution companies and major industrial users. It extends from Kaikohe in the North Island to Tiwai in the South Island and transports electricity throughout New Zealand. 11 Transpower also has the responsiility of eing the System Operator, which involves managing New Zealand s power system in real-time and operating the wholesale electricity market. 12 The National Grid comprises around 12,000 km of transmission lines and some 167 sustations across the Country. This is supported y a telecommunications network of around 300 telecommunication sites, which help link together the components that make up the National Grid. 13 Transpower is not a generator of electricity and has no retail sales of electricity. It can e considered to e a freight company for electricity, in that it transports electrical energy from the generators to the local lines distriution companies and to major users of electricity. 14 Transpower s main role is to ensure the reliale supply of electricity to the country. Transpower plays a vital role in New Zealand s economy, as all of the country s major industries are reliant on a secure and reliale supply of electricity. 15 As a State Owned Enterprise, one of Transpower s ojectives is to operate as efficiently as comparale usinesses that are not owned y the Crown. Transpower must operate within certain legislative constraints and report regularly to its shareholding Ministers 2. Transpower is required to deliver and operate a National Grid that meets the needs of New Zealand now and into the future. 16 Transpower s Statement of Corporate Intent for 2017/2018, states that: 2 The Minister of Finance and the Minister of State-Owned Enterprises. 3

5 Transpower is central to the New Zealand electricity industry, connecting New Zealanders to their power system through safe, smart solutions for today and tomorrow. Our principal commercial activities are: As grid owner, to relialy and efficiently transport electricity from generators to distriutors and large users; and As system operator, to operate a competitive electricity market and deliver a secure power system. 17 One of Transpower s key ojectives therefore is to maintain and develop the National Grid, which, in turn contriutes to New Zealand s economic and social aspirations. 18 The National Grid is a physical resource of national significance. The NPSET recognises that the efficient transmission of electricity via the National Grid plays a vital role in the welleing of New Zealand, its people and the environment. 19 The NPSET was implemented y the Government in 2008 to manage the operation, maintenance, development and upgrades required to maintain the National Grid. Transpower recognises that in order to achieve this, it must recognise and take into account the special characteristics and adverse environmental effects the National Grid may cause, as well as the adverse effects other activities may cause to it. The NPSET was implemented to assist with the management of these issues across New Zealand. Transmission assets within the West Coast Region 20 The following National Grid Assets are located within the West Coast Region: a Arahura Doson-A 66 kv single circuit line on single poles and pi-poles; Arahura-Doson-A 66 kv underground cale; c d Arahura-Otira-A 66 kv doule circuit line on single poles and pi-poles; Blackwater-Inangahua-A 110 kv single circuit line on pi-poles; e f Coleridge-Otira-A 66 kv doule circuit line on single poles, pi-poles and steel towers; Doson-Blackwater-A 110 kv single circuit line on single poles and pi-poles; g Doson-Tee-A 110 kv single circuit lie on single poles and pi-poles; h Inangahua-Reefton-A 110 kv single circuit line on single poles and pi-poles; 4

6 i j Inangahua-Kikiwa-A 110 kv single circuit line on pi-poles and steel towers; Inangahua-Kikiwa-B 110 kv doule circuit line on steel towers; k Inangahua-Waimangaroa-A 110 kv single circuit line on steel towers; l Inangahua-Westport-B 110 kv single circuit line on steel towers; m n Waimangaroa-Westport-A 110 kv single circuit line on pi-poles; Atarau Sustation; o Doson Sustation; p Inangahua Sustation; q r Otira Sustation; Waimangaroa Sustation; s Westport Sustation; and t Inangahua-Murchison underground fireoptic cale. 21 The existing transmission network is shown on the map in Appendix A of my evidence. 22 Transpower's sustations in the West Coast supply a residential, rural, commercial and industrial load to the Buller, Grey and Westland Districts. Electricity transmission via the National Grid in the West Coast Region is critical for providing lighting, heating and energy to homes and usinesses oth within the Region and eyond. Projects / Future works in the West Coast Region 23 At present, Transpower does not have any major projects planned on the National Grid within the West Coast Region. 24 The decommissioning of the Westport sustation and associated 110 kv lines is expected to e undertaken in 2019, and is occurring as a result of the Holcim cement factory closure. 25 Other routine maintenance works scheduled for the West Coast in the next 10 years include transmission line support structure foundation upgrades and tower painting (which protects the towers from corrosion). 5

7 26 A recent project of note was the installation of the Inangahua to Murchison fireoptic cale, a 43 km cale extending from Transpower s Inangahua Sustation, through the Buller Gorge area, to Murchison township. Because of the constraints of the terrain, not all of the cale could e installed underground, with some sections installed in a galvanised steel pipe attached to the ground or overhead on new poles. The work was required for the Transpower telecommunications network (TransGO) to provide circuit/data resiliency, reliaility and diversity, to ensure that the National Grid electricity supply is not interrupted or put at risk. In addition, the fire cale provides capacity for other telecommunication services such as Ultra-Fast Broadand to e provided through the network to the West Coast Region. 27 The fire cale is located within the Buller District, Tasman District and the West Coast Regional Council areas. Resource consents were required from all three Councils, generally triggered y river crossings, sections of overhead line, indigenous vegetation clearance, and earthworks and vegetation clearance in a wetland area. The resource consent applications to all three Councils were applied for concurrently. Concessions were also otained from the Department of Conservation for sections of the work are within the Department of Conservation (DOC) estate. Implementing the NPSET in regional policy statements 28 Transpower has een encouraging Council s to give effect to the NPSET in RPSs y: a Recognising the enefits of the National Grid; Ensuring and protecting the aility for ongoing operation and maintenance of the National Grid; c Enaling the existing network to e upgraded in order to meet growth in power demand; d e Protecting the existing network from issues of reverse sensitivity; and Providing an appropriate policy framework for the development of new lines. 29 These outcomes have een achieved through RPS review processes undertaken y many regional councils throughout New Zealand. 30 The following Regional Councils have already given effect to the NPSET: 6

8 a Taranaki Regional Council; Manawatu-Wanganui Regional Council; c Bay of Plenty Regional Council; d Southland Regional Council; and e Canterury Regional Council. 31 Transpower supports regional councils giving effect to the NPSET in their RPSs ecause of the important foundation these documents provide for regional and district planning documents. Further, district and regional councils must give effect to RPS provisions, and therefore the RPS assists to ensure consistency of approach throughout the region. For example, recognition of issues such as reverse sensitivity effects in the RPS can e given effect to y district councils, including y providing for transmission corridors in district plans to guide expectations and land uses in those areas (therey avoiding reverse sensitivity effects). Reverse sensitivity and other effects on the National Grid 32 Transpower s sumission sought stronger guidance within the RPS as to how infrastructure should e protected from reverse sensitivity effects. Integrating land use and infrastructure as far as practicale, so that existing infrastructure is protected from the activities of others, and from complaints from others, allows the National Grid to e operated efficiently and effectively. I would note that as highlighted y the example elow, there are very real operational and health and safety issues and risks associated with development and activities in proximity to the National Grid. Transpower proactively responds to landowners to ensure the National Grid is not compromised, and more importantly, that people are not harmed. As such, reliance on integration alone is not always sufficient and avoidance is required in some instances. An Example 33 This section of my evidence provides an example of an inappropriate activity that has taken place under a transmission line in the West Coast Region. There have een other examples of reverse sensitivity effects on Transpower s assets in other regions. As well as managing activities to avoid reverse sensitivity effects on the National Grid, it is also necessary to avoid direct adverse effects on the National Grid in order to ensure the network can e efficiently operated, 7

9 maintained, developed and upgraded. There are valid safety and operational requirements that mean integration of land uses and the National Grid cannot always e allowed. Earthworks 34 Uncontrolled earthworks can undermine support structures, generate dust (which can reduce the lifespan of the conductors), and restrict access to structures. Excavated areas or piles of earthworks spoil can also restrict Transpower s aility to access and locate the heavy machinery required to maintain support structures around the lines and may lead to potential tower failure and significant constraints to the operation of the line such as power outages. For this reason, Transpower seeks controls on earthworks near the National Grid in district plans. 35 Photographs 1 and 2 elow show earthworks that occurred around a transmission line support structure on the Doson-Blackwater-A 110 kv transmission line, in the Grey District, in May Photograph 1 - Earthworks on the Taylorville-Blackall Road under the Doson-Blackwater-A transmission line. 8

10 Photo 2 - Earthworks on the Taylorville-Blackall Road under the Doson- Blackwater-A transmission line. 36 These earthworks caused a large section of the ground under the line to suside and slip down towards the road. As a result, Transpower had to relocate a section of its transmission line to run along the road side, which required the relocation of three support structures. Relief Sought y Transpower 37 Transpower generally supports the amendments to the RPS provisions recommended in the Section 42A Report. However, Transpower supports the further amendments set out in the evidence of Pauline Whitney, which are necessary in order to: a Ensure the ongoing operation, maintenance, upgrade and development of the National Grid is not compromised y avoiding adverse effects of activities and reverse sensitivity effects (new ojective and amended Policy 5).; and Recognise the national and regional enefits of a secure energy supply (Amended Policy 2 and accompanying explanation). 9

11 Conclusion 38 The National Grid is critical to the West Coast Region and the country s social and economic welleing. The NPSET requires that the National Grid e recognised in the RPS. 39 For the reasons set out aove, Transpower requests that the RPS include the provisions appended to Pauline Whitney s evidence. 40 This relief will ensure appropriate ojectives, policies, methods and guidance for the future development of the West Coast Region, and the districts within it. This is critical to the sustainale development of oth the National Grid infrastructure and other natural and physical resources. Daniel Hamilton 20 April

12 Appendix 1 Transpower s assets within the West Coast Region. 1

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