Presentation to The Select Committee on Local Government

Presentation to The Select Committee on Local Government and Administration Presenter : MMC Ros Greeff Acting ED Peter Coetzee Acting CEO Silas Zimu 20 June 2006

Current Network Condition r Characterised by aged, under designed and technically obsolete infrastructure r Old-fashioned oil insulated switchgear – unreliable tripping times r Inadequate (sometimes embarrassingly primitive) monitoring and protection systems r Result - High number of outages r Plant maximum life cycle exceeded r SHER non-compliant r No system integration

Initiatives to Reduce Outages r Network Master Plan r Eskom (PTM) Engineering Studies r Detail Audits by OEM’s Ø Rotek Engineering Ø Siemens Ø ABB Ø Alstom Ø Hawker Siddley r Internal Audit r Focus on planned maintenance r Purchased the network modeling tool

NETWORK MASTERPLAN r PSW Consulting Engineers were appointed to assist in the preparation of Short, Medium and Long term Transmission and Distribution plans for the Midrand Area of supply. r NET Group Consulting Engineers were appointed to assist in the preparation of Short, Medium and Long term Transmission Plans for the entire Network excluding the Midrand Area of supply. They were also appointed to assist in preparing Distribution plans for three focus areas where loading and network problems were being experienced in the Siemert Road, Randburg and Roodepoort Areas. r Eskom (PTM) were also appointed to do pre-engineering studies at Fordsburg, Prospect, Delta, Kelvin and Orlando substations

Findings PSW Midrand Report r The infrastructure in Midrand supply area is relatively new with an average of between 15 & 20 years. There are certain areas however which are appreciably older and will require upgrading and refurbishment in the Short term r The infrastructure needs to be extended to meet projected future load growth

Substation Transformers Overview r Detailed audit undertaken by Rotek and CP’s Test Branch r Significant number (52) of high risk transformers identified in terms of standard assessment parameters (moisture, gases, acidity etc. ) r Age profile of transformers indicates urgent need for refurbishment / replacement programme r Programme designed to eliminate backlog by 2010 (or sooner) thereby greatly improving reliability r Refurbishment programme to continue to reduce life cycles and conditions to acceptable levels

Sample Transformers Age Profile 30 year life cycle

Transformer Refurbishment 5 Year Plan Note: Total Trfr = 250; Refurbished and maintained = 45; 52 to be addressed

MV Switchgear Overview r Detailed audit undertaken by OEM’s e. g. Rotek, Siemens r Significant number of high risk switchboards identified in terms of standard assessment parameters, particularly oil insulated units r Age profile of transformers indicates urgent need for refurbishment / replacement programme for switches >25 years r Programme designed to eliminate backlog by 2010 (or sooner) thereby greatly improving reliability r Refurbishment programme to continue to reduce life cycles and conditions to acceptable levels

Age Profile All MV Switches Manufacturers recommend replacement > 25 years

MV Switchgear Programme

Protection Audits by OEM’s and Eskom q Audits on secondary plant equipment focusing mainly on protection were conducted by: Ø ABB Ø Siemens Ø Eskom PTM Ø Alstom Ø And Internal Staff

Findings r Main protection is prone to malfunction r Backup protection in most cases is out of specification r 70% of protection relays > 20 years old, no spares available r The suite of electro mechanical relays per line should be replaced with new electronic relays catering for the complete set of protection requirements, including disturbance recording. r Protection Schemes - 40 % of the Overcurrent and Earth Fault protection relays’ tripping characteristics had an error margin of approximately 60%. r Repairing and refurbishing of electro-mechanical relays is not a cost effective solution

Additional CAPEX Refurbishment Requirements Minimum required to clear backlog in 5 Years 2005/06 2006/07 2007/08 2008/09 2009/10 Transformer R 52 m R 25 m R 22 m Switchgear R 45 m R 30 m R 12 m Protection R 19 m R 15 m R 9 m R 7 m R 2 m Total R 116 m R 85 m R 79 m R 59 m R 36 m

CAPEX requirements 2005/10 Refurbishment and Upgrade Load Growth Total HV R 1, 130 bn R 381 m R 1, 511 bn MV R 532 m R 70 m R 602 m LV R 100 m R 32 m R 132 m Grand Total: R 2, 245 bn

Upgrade Programme and Assumptions r City Power has begun an intensive upgrade programme in order to achieve the following Ø Reduced average of equipment – thru’ maintenance Ø Replacement of obsolete equipment – maintenance not feasible Ø Upgrade of overloaded networks in order to compensate for natural and anticipated load growth Ø Removal of equipment which is unsafe to operate Ø Achieve standardisation across all areas in order to reduce downtime and have more available emergency stock Ø Eradication of makeshift solutions Ø Ensure higher plant availability

CAPEX and OPEX Investments per Region

2005/6 Capex Budget Allocation CATEGORIES Total Electrification 35, 150, 000 Service Connections 59, 640, 000 Township Reticulation 14, 049, 000 Network Development 27, 850, 000 Upgrade of Electrical Network 246, 018, 000 Refurbishment of Bulk Infrastructure 130, 831, 000 Tools and Loose gear 3, 035, 000 Plant and Machinery 2, 483, 000 Meters 16, 000 Load Management 15, 000 SCADA 6, 500, 000 Protection 20, 000 Public Lighting 30, 250, 000 Telecommunications Equipment 1, 476, 000 Furniture 811, 001 Office equipment/Computer hardware 769, 000 Computer software 3, 100, 000 Building Alterations 8, 513, 000 CAPITAL - OPERATIONS 608, 282, 000

Some Key projects for 2005/06 r Replacement and upgrade of substation transformers (17 transformers ordered to be installed at: Westfield, Cydna, Hursthill, Rosebank, Roosevelt, Grand Central, Bryanston, Allandale, Brynorth, Randburg, Olivedale and Fairlands) r Protection upgrade at Kelvin and Prospect major intake points r Replacement of obsolete feeder boards r New substation at Bryanston to cater for pending re-zoning application r Continuous upgrade and refurbishment of MV and LV infrastructure

Key priorities for 2005/06… r Reconfigure 275 KV using Dead Tank Circuit Breakers and Pantograph Isolators to address outages at Fordsburg, Prospect and for Delta to be able to handle the surplus load r Installing prepayment meters in the identified areas in the South of Johannesburg r Increase continued partnership with OEM’s to help address critical network problems r Increase our focus on planned maintenance r The defective meters that have been identified and they will be replaced r Increase in the reduction of illegal connections in identified areas r A major focus will be dedicated to street lighting

Budget allocation 2006/7 Type of project/Category 2006 / 2007 Buildings R 1, 000. 00 Bulk Infrastructure R 235, 889, 135. 00 The focus is on: ØStrengthening and Refurbishment of Bulk Infrastructure Electrification R 41, 500, 000. 00 ØUpgrade of MV and LV network Load Management R 33, 200, 000. 00 ØElectrification Meters R 30, 200, 000. 00 ØPublic Lighting and Network Development R 31, 683, 680. 00 Operating Capital R 58, 409, 500. 00 Protection R 17, 100, 000. 00 Public Lighting R 63, 300, 000. 00 SCADA R 9, 280, 000. 00 Service Connections R 59, 640, 000. 00 Telecomms R 6, 350, 000. 00 Township Reticulation R 8, 000. 00 Upgrading of network R 122, 750, 500. 00 COJ Projects R 48, 811, 000. 00 TOTAL R 767, 113, 815. 00 ØService Connections

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PROJECTS COMPLETED DURING 2004/5 FINANCIAL YEAR

2004/5 Randburg Area of Supply Project Name: Project Description: Desired Solution: compliance Elgin distributor upgrading C 513 Laying of new cable (9 km) to upgrade the Elgin distributor from Bryanston Substation The project will increase back-feeding capacity during contingency conditions. It will assist in ensuring with conversion from 6. 6 k. V to 11 k. V in the future. Project Name: Project Description: Desired Solution: Bryanston 6. 6 k. V Norman distributor upgrading Laying of the new cable to upgrade the Norman distributor from Bryanston Substation. Increase back-feeding capacity during contingency conditions. It falls within master plan to convert to 11 k. V. Project Name: Project Description: Desired Solution: Brynorth Substation new MV distribution Laying of the new cable to establish new distributor from Brynorth Substation. To provide extra capacity in Bryanston area to cope with the fast growing developments in the area Project Name: Project Description: installed to Dainfern network upgrade C 571 This is the second phase of the project where new MV cables are installed and new load centers will be Desired Solution: Project Name: Project Description: Elgin Desired Solution: distributor will alleviate Dainfern loading problems in winter. Overloading problems in Dainfern will be resolved by upgrading the low voltage side of the network. De-loading of Bryanston Substation C 610 Laying of two cables from Brynorth Substation to Bryanston Substation in order to supply Norman and distributor from Brynorth. Capacity at Bryanston Substation will be reduced to alleviate overloading of the Station. A standby support Elgin and Norman Distributors. Project Name: Project Description: Desired Solution: Randpark Ridge : Closing of Radial feeder To lay new cable in order to put nine load centers on a ring. Improvement of restoration time during fault condition due to the supply on a ring.

2004/5 Randburg Area of Supply… Project Name: Project Description: HOUTKOPPEN SUBSTATION Installation and commissioning of new 11 Kv feeder board and control panels. Desired Solution: customers Replacement of the existing 11 k. V feeder board to provide improved service delivery to City Power in the Houtkoppen substation area of supply. Provision of an additional five distribution circuits from the station. Project Name: Project Description: Desired Solution: 11 Kv HOUTKOPPEN SUBSTATION Establish new substation building and switchgear room. Upgrading of the existing substation precinct in preparation, for the installation of the newly procured feeder board. Project Name: Project Description: Transformer. Morningside S/S, Incomer, Bus Section and Control Panel City Power to supply, fit new panels Eskom to supply, install 6. 6 k. V cables from existing 5 MVA

2004/5 Hursthil Area of Supply Project Name: Project Description: Desired Solution: fault Noordgesig conversion from 6. 6 k. V to 11 k. V Installation of 15 new mini-subs and laying of cable to support conversion of entire Noordgesig from 6. 6 k. V to 11 k. V. Extra capacity to Noordgesig, overloading will be alleviated and new sub rings will assist in quicker restoration. Project Name: Project Description: Desired Solution: LV Network upgrading C 607 To install new LV equipment in the area of Fairland to remove obsolete LV equipment. Reduction in outages due to obsolete equipment and increase safety. Reasons for the Project: growing The electricity network in Sophiatown was found to have an inferior design based on todays demands. A section of the network was approved to upgrade from the current single phase LV network to a Status of the project: of work is Benefits of the Project: three phase LV network. All MV and LV cable has been installed. A 500 kva miniature substation has also been installed. 30% still outstanding to be completed by the end of May 2005. A more stable electricity supply, Reduction of power outages.

2004/5 Siemert Area of Supply Project Name: Project Description: Desired Solution: LV Network upgrading C 505 Installation of arial bundle conductors in Kensington area and removal of T-joints. Reduction in power outages due to bare conductors and removal of t-joint to enhance system reliability. Project Name: Project Description: Judith Paarl LV Upgrading To install new miniature substation to alleviate overloading of Judith Paarl in Derby Road and Long Street To improve power supply around Ellispark Precinct and reduce power interruptions. Desired Solution: Project Name: Project Description: Desired Solution: Houghton upgrade MV network Phase 1 Installation of new cables from Cydna Substation to Riviera Substation for providing standby for Houghton West, Oaklands/Houghton, Houghton South East, Killarney South distributors. Reduce size of sub ring and reduction of load on Houghton West distributor and Oaklands distributor. To allow for future growth in the area and prepare for the future conversion. Project Name: Athol Inanda standby distributor Project Description: Installation of cable from Cydna Substation in order to upgrade Athol Inanda standby distributor and upgrading of other distributors in that area. Desired Solution: Reliability of the cable will improve as from elimination of many joints. Undergrounding of LV along the same route will stabilize the network. Project Name: Project Description: Desired Solution: Melrose Conversion Phase 1 Installation of new equipment to prepare for conversion from 6. 6 k. V to 11 k. V in Melrose area and closing of two radial feeders. Reliable power in Melrose area and quick fault restoration as a result of feeder.

2004/5 Siemert Area of Supply… Project Name: Melrose, Houghton, Riviera Conversion Phase 2 Project Description: Installation of new equipment to convert from 6. 6 k. V to 11 k. V. Desired Solution: Extra capacity due to 11 k. V conversion and more reliable power supply as the result of taking out obsolete equipment. Project Name: Upgrade electrical network Malvern Project Description: Installation of new load centers to relieve load from the existing infrastructure in Malvern area. Desired Solution: More reliable power supply due to elimination of overloadings in Malvern Area.

2004/5 Midrand Area of Supply Project Name: Project Description: Desired Solution: New 11 k. V distribution from Westfield Sub to Founders Hill and Sebenza Ext 6 Installation of new cables from Westfield Substation to Sebenza Ext 6 for conversion from 6. 6 k. V to 11 k. V Increased capacity of the network in Founders Hill and Sebenza. The project will alleviate power interruptions from Ekurhuleni Vorna Valley S/S Incomer Cables Replacing existing 300 mm x 3 core cables with 630 mm single core cables with two single cores per phase to cater for newly installed 2 x 20 MVA Transformers, including installation of new 1200/5 CT'S. Network Upgrade Project Name: Project Description: Desired Solution: ALLANDALE SUBSTATION 11 Kv feeder board Installation and commissioning of new 11 Kv feeder board. Replacement of the existing 11 k. V switchgear arrangement. And thus to improve, service delivery to City Power customers in the Allandale substation area of supply. Project Name: Project Description: Desired Solution: Noordwyk S/S 3 rd Incomer Panel Installation of 11 k. V Incomer Panel to accommodate new 20 MVA Eskom Transformer. Network Upgrade in order to meet load growth Project Name: Project Description: Desired Solution: ALLANDALE SUBSTATION 88/11 Kv transformer Installation and commissioning of new 88/11 Kv transformer. To provide a reliable standby facility at the sub-station in the event of an existing unit failure. Project Name: Project Description: Desired Solution: Vorna Valley S/S Perimeter Fence The station currently has no perimeter fencing and is open to everybody. To provide security for personnel by having a lockable entrance gate.

2004/5 Lenasia Area of Supply Project Name: Project Description: Desired Solution: Installation of standby cable for Lenasia Ext 4 Installation of new distribution from Lunar Substation to OK Bazaar HVC. Speeding up of back feeding process during contingency. Project Name: Project Description: Desired Solution: Upgrading of Mini substation and load centers in Lenasia Ext 1, 2 and 3 Installation of new mini subs and closing sub rings in Lenasia ext 1, 2 and 3. Power interruption will be reduced and will ensure reliability of the network. Overloading problems will be alleviated in Lenasia ext 1, 2 and 3. Project Name: Project Description: Desired Solution: LAWLEY Normalisation of the network infrastructure Change conversional metering to Pre- Paid system Project Name: Project Description: Desired Solution: GOLDEN TRIANGLE Electrification Electrify 2430 stands

2004/5 OLD JOHANNESBURG AREAS Project Name: Project Description: Desired Solution: Kelvin P/S 88 k. V Insulation Upgrade Upgrading of insulation of the 88 k. V circuit breaker and isolator, bushings To prevent flashovers by providing the insulators with a hydrophobic surface characteristic to prevent the formation of continuous wet conductive layer ALL AREAS Project Name: Asbestos Removal from all Sub Stations Project Description: Capex Environmental Compliance Monitoring. Desired Solution: complying with the Environmental Impact Assessment regulations requirements as per Act No. 73 of 1989.

2004/5 Alexandra Area of Supply, incl electrification projects Project Name: Project Description: Desired Solution: ALEXANDRA EXT -8 Electrification Electrify 180 Stands Project Name: Project Description: Desired Solution: GOLDEN TRIANGLE Electrification Electrify 2430 stands Project Name: Project Description: Desired Solution: TSUTSUMANI AND MAYIBUYE Electrification Change metering from IMS to Grintek system Project Name: Project Description: Desired Solution: LAWLEY Normalisation of the network infrastructure Change conversional metering to Pre- Paid system Project Name: Project Description: Desired Solution: ALEXANDRA PHASE 2 Normalisation of Alexandra network infrastructure To Connect Customers to Overhead system and reduce illegal connection Project Name: Project Description: Desired Solution: ELECTRICAL INFILLS Electrification Electrify 500 stands within Citypower area of supply Project Name: Project Description: Desired Solution: ALEXANDRA PHASE 2 ELECTRICAL INFILLS Electrification Electrify 350 connections in Alexandra

2004/5 Roodepoort Area of Supply Project Name: Project Description: Desired Solution: MANUFACTA TO ROODETOWN SUBSTATIONS Replace 33 k. V oil cables Manufacta to Roodetown substations. Upgrading and replacement of aging oil filled transmission cables. Providing system integrity, and security of supply to the customers in this area of supply. Project Name: Project Description: Desired Solution: ONTDEKKERS TO NURSERY SUBSTATIONS Replace 33 k. V oil cables Ontdekkers to Nursery substations. Upgrading and replacement of aging oil filled transmission cables. Providing system integrity and security of supply to the customers in this area of supply. Project Name: Project Description: Desired Solution: improved SENTRAAL AND KLOOFENDAL SUBSTATIONS Load optimization To alleviate the loading challenges at Kloofendal and Sentraal substations and to provide service delivery to City Power customers in this area of supply.

2004/5 Roodepoort Area of Supply Roodepoort MV cable upgrade Project Reasons for the Project It was identified that sections the MV cable supplying the 6. 6 k. V and 11 k. V distribution areas in Roodepoort were of extremely poor quality which had come to the end of its lifespan causing large parts of the town to loose their electricity supply at random patterns. Investigation and analysis was done on this cable indicating that it had to be replaced. A project to correct this situation was approved in November 2004 and commenced in December 2004. This project was to be executed in 3 phases i. e. : Phase 1 – Weltevreden Park Phase 2 – Constantia Kloof, Helderkruin Phase 3 – Wilropark, Roodekrans, Ondekkerspark and Horison Status of the Project A total of 107 km of the ill fated cable in Roodepoort was approved to be replaced. To date we have laid 96 km in the ground. To date all cable in Phase one and Phase two have been installed. We have created outage plans which are currently in place to disconnect the old cable and connect the new ones. To date we have commissioned 82 new cable ends in phase 1 and 47 new cable ends in phase 2. We still have to commission 5 more cable ends in phase one and 79 more cable ends in phase two. By 11 th May 2005 all of Weltevreden Park will be operating with new cable. Currently we are repairing paving in driveways and tiding up all construction rubble in the area. Benefits of the Project Reduction of power outages and Increase spare capacity on existing network.

2004/5 Roodepoort Area of Supply Paul Kruger Rd MV and LV upgrade Reason for the Project This area in Honeydew is developing at a very fast pace. The existing MV overhead line network is not able to carry loads during peak periods. A project was approved to remove the OHL and install our standard MV cable, 185 x 4 copper, with minisubs and an underground LV network. Status of the Project 90% of the MV cable has been installed. 60% of the MV switchgear has been installed. The project is scheduled to be commissioned at the end of May 2005. Benefits of the project Reduction of power outages and Increase spare capacity of existing network.

2004/5 Roodepoort Area of Supply Installation of Miniture substations and Compact switchgear Reasons for the Project It has been identified that the majority of mini substations in Roodepoort contain no switchgear. This makes fault finding and power restoration extremely difficult. A project was approved to install compact switchgear and mini-subs where necessary which will run concurrent with the Roodepoort cable upgrade Project. Status of the Project These are currently being installed in conjunction with the commissioning of Phase 1, 2 & 3 of the Roodepoort Cable Upgrade Project. Benefits of the Project Proper fault finding procedures can take place. No damage to existing cables and bushings while fault finding. Faster fault finding can take place. Faster fault restoration time. Safe working environment.

Public Lighting Projects Region Project Description Region 1 High Mast refurbishment in Diepsloot and illumination of main intersections within Diepsloot Region 2 New installation in - Ivory Park, Network extension in Noordwyk Ext, Halfway Gardens, Halfway House, Lonehill intersections Austin View, Buccleuch, Sunninghill and Paulshof Region 3 New installation in - Main Roads within Olivedale, Khyber Rock, Brynston, Magaliesig, Dunkeld West, Sandton, Jukskei Park. Upgrade of street lighting cables in Johannesburg North. Region 4 Network extension in Victory Park, Fairlands. Refurbishment of street light luminairees in Bosmont/ Coronationville, Beyers Naude drive. Region 5 New installation in Northwold, corner Peter Road and Beyers Naude, Davaidsonville, Northriding, Florida Park. Refurbishment of street light luminnaires in Discovery, Roodepoort CBD, Florida North, Querelina. Region 6 Soweto Development Programme continuation, Refurbishment of vandalised High Masts in Soweto and new installation in Dobsonville Ext 3. Region 7 Wynberg refurbishment, Modderfontein residential refurbishment, London and Malboro Road refurbishment. New installation in Kelvi, Wendywood, Morningside Manor, Rembrant Park Region 8 Luminaire conversion for MV to MH at the CBD and motorway refurbishment Region 9 Installation of new street lights at Naturena x 19, Golden Highway, Meredale, Oakdene and Pat Mbatha Drive. Refurbishment of Vickers Road Region 10 Soweto Development Programme continuation, Nomzamo informal settlement and ground to pole box conversion project. Region 11 Installation of new street lights at Orange Farm/Driezik/Stretford and Lawley Station. Refurbishment of vandalised network in Eldorado Estate. Illumination of entrances to the Region 11 admin offices.

Next 5 year IDP Plan r electrification of proclaimed areas r Installation of public lighting r Alternative energy sources r Reduction of NTL r Provision of FBE r Provision of prepaid meters r Reduction of outages r Provision of adequate electricity capacity r Backlog elimination r DSM program r Customer education program r Distributed generation

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