SCANDAL : Aurora Energy Ltd set to burden Otago ratepayers and residents with massive rates increases

At Facebook:

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“Overall, the planning period will be characterised by the delivery of the largest work programme in Aurora Energy’s history.” –Steve Thompson

Read: The Otago power network is THAT DEGRADED – caused by various rugby supporting and clip-ticket gentlemen, whose names we all know so well. Described by civil words (not cuss words) that start with F and C.

The “laundry” was well and truly harsh, leaving the network in threadbare tatters…. while private pockets were filled. That’s One Billion Dollars worth of power asset the Otago ratepayers have had to pay for TWICE. Talk about ‘power’ and corruption, Bryce Edwards (?) – Dunedin in the last 30 years was built on it, solidly at source.

The “gents” might like to explain where all the money went, and how the hell they think they can make us pay for their near limitless mismanagement and fully reckless endangerment (to workers, citizens and the regional economy) over three decades …..without shoving them in deep at the NZ Court system —for processing.

█ Today an Aurora/Delta executive had the audacity (after spinning out their LGOIMA response to the 20th working day, following my request made 26 April) to want to charge me for official information at the vindictive “maximum charge” (their words) of $190.00. Shove that, boys. Other council owned companies have provided the information free of charge and very promptly and courteously.

Tuck it back in your pants Aurora/Delta, or be sliced.

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At Facebook:

● Aurora will spend $347 million on asset renewal, including a total of 14,000 poles…..

### ODT Online Wed, 24 May 2017
Aurora plans $720m upgrade of network
By Vaughan Elder
Aurora Energy has unveiled a $720 million plan to upgrade its ageing electricity network over the next decade. The plan is a more than $300 million increase on the 10-year plan the Dunedin City Council owned company released last year. […] In a press release this afternoon, Aurora Energy said the plan would have an extensive impact on the region’s economy through job creation and spill-over benefits to other businesses. […] Other major projects included a new substation at Carisbrook, which would replace the 60-year-old Neville St substation by 2019 and a new Wanaka substation on Riverbank Rd, Wanaka. […] Aurora Energy chairman Steve Thompson said an additional $81 million would be spent on growth and security of supply projects to support the region. […] The remaining expenditure was tagged to maintenance and operating expenditure ($192 million), and capital expenditure primarily related to new consumer connections and safety and reliability ($101 million).
Read more

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The vertiginous mountain of HEALTH AND SAFETY DANGERS due to Aurora mismanagement and neglect of the power asset across Otago.

And the WorkSafe option could be “…..an infringement notice”, possibly not PROSECUTION.

Hmm, have the good old boys been dealing in the way they usually deal ??? Is WorkSafe a soft touch. To date it certainly hasn’t been Acute. Or at all worried about the danger to electrical workers or the general public. What a damnably prolonged and sordid farce this is.

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### ODT Online Wed, 24 May 2017
No decision to prosecute Aurora
By Vaughan Elder
Worksafe is yet to decide whether it will prosecute Aurora Energy over the state of its power poles. WorkSafe has been looking into Aurora and its sister company Delta since October over accusations dangerous power poles across Dunedin, Central Otago and Queenstown Lakes were putting the public at risk. The government entity gave fresh details about its audit of the two companies in response to an Official Information Act request from the Otago Daily Times. WorkSafe high hazards and energy safety general manager Wayne Vernon said it had completed an “initial” audit of a sample of the network’s assets and provided a report to Aurora. […] “WorkSafe has not to date made a decision to prosecute or not to prosecute Aurora over health and safety issues associated with the state of its poles.” Mr Vernon emphasised prosecution was one of many options available to it, which also included issuing instructions to remove or minimise the potential for danger and issuing an infringement notice.
Read more

█ For more, enter the terms *delta*, *aurora*, *epic fraud*, *poles*, *healey* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta/Aurora warned, renewed calls for Grady Cameron to resign

The review was evidence Mr Cameron’s actions went beyond “wilful ignorance” and were in the category of “feathering your own nest at the risk of other people’s wellbeing”. –Richard Healey

### ODT Online Wed, 9 Nov 2016
Delta ignored warning
By Vaughan Elder
Delta was warned six years ago about the exact scenario unfolding now involving rotting power poles, but failed to act. The warning, in a review by LineTech Consultants, which was given to the Otago Daily Times by a fresh source, has prompted renewed calls for Delta and Aurora chief executive Grady Cameron to resign over his failure to address the issues it clearly signalled. Senior consultant Alastair Glyn-Jones said in the review unless Delta significantly accelerated pole replacement it would be forced in the “immediate future” to replace “very large numbers of poles” in a short time.
Read more

█ Alastair Glyn-Jones is now the Service Delivery / Maintenance Manager at Transpower New Zealand, responsible for managing service providers for transmission cable assets, and site grounds and buildings in the north of the north island (NNI), including maintenance of station assets from Auckland to Kaitaia.

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Related Posts and Comments:
8.11.16 Delta/Aurora neglect, letters to ODT
6.11.16 Healey responds to DCHL terms of reference for Delta review
4.11.16 Delta #EpicPowerFail 6 – Thick as a Brick
2.11.16 Delta #EpicPowerFail 5 : Grady Cameron on RNZ : How many Asset…
1.11.16 Delta/Aurora/DCHL corporate whitewash #dangerousnetwork
31.10.16 Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends
29.10.16 Mr Crombie, not quite the spent force
28.10.16 Heads of Delta/ Aurora/ DCHL/ DCC out to lunch
27.10.16 Bev Butler says ‘Come in, Grady’ #LGOIMA #Delta
27.10.16 Delta #EpicPowerFail 3 : Rotten Poles and Greedy Algorithms
25.10.16 Delta #EpicPowerFail 2 : Plaudits to Saunders & Elder : Delta…
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL…
21.10.16 Dunedin City Council must hang the companies out to dry
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: newshub.co.nz – grady cameron, tweaked by whatifdunedin

Delta/Aurora neglect, letters to ODT

ODT 5.11.16 (page 30)

ODT 5.11.16 (page 30)

ODT 1.11.16 (page 6)

█ Now we know Mr Stephens, ex DCC CFO of the infamous ‘Jim Harland stadium years’, has moved to Queenstown Lakes like the rest of the Good Old Boys. How interesting. The location hasn’t improved his sense of decorum at all.

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O P I N I O N

2.11.16 ODT: History shows power to the people lost
Delta’s woes will be shared with Central Otago, writes Nick Loughnan. What Central Otago once owned with its electricity assets, and was forced to give up, is still fresh in the minds of many of its residents as the operations of Dunedin City Council-owned Delta come under the spotlight yet again after a very courageous and selfless call on public safety by one of its senior employees. A little history will explain how. Cont/

29.10.16 ODT Editorial: The rot must stop
The Companies Act 1993 imposes a number of obligations on companies and their directors. How a company operates is also determined by its constitution — if it has one. A constitution sets out the rights, powers and duties of the company, the board, each director and each shareholder. A director of a company must not act, or agree to the company acting, in a manner that contravenes the Act or the constitution of the company. The Act says directors are responsible for managing the company’s day-to-day business. Directors must act honestly, in what they believe to be the best interests of the company, and with such care as may reasonably be expected of them in all the circumstances. Directors must not carry on the business in a manner likely to create a substantial risk of serious loss to the company’s creditors — reckless trading. Exactly what this involves will vary from company to company and for Dunedin City Council-controlled Delta, Aurora and Dunedin City Holdings, now is the time to investigate exactly how the duties of a director impact on the current situation in which this city finds itself. Through ongoing investigations by the Otago Daily Times, it has been revealed the state of the Delta and Aurora businesses are not what ratepayers have been led to believe. Cont/

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Healey responds to DCHL terms of reference for Delta review

Received from Richard Healey
Sun, 6 Nov 2016 at 1:40 p.m.

So, two weeks ago the story was that heads would roll “if the accusations prove true”.

Let’s recap. I sent a letter outlining my concern that the state of the Aurora Network constitutes an unacceptable and potentially fatal risk for the workforce at Delta and the community in Dunedin and Central Otago.

No response, my letter of resignation arrives.

I turn up for work the next morning and expect the discussion to start. Two managers are told to remove me from the building and not to let me have contact with other staff. One is told to sit in the car with me and return to Dunedin. I am told that there will be a meeting with the CEO and the GM Strategy and Risk.

Before we make it to Dunedin that meeting is cancelled. I receive an email from the GM Energy and Communication advising me to withdraw my resignation and complaining about the “tone” of my email.

The CEO goes on national television and tells the world that he would have loved to discuss the issues with me, but I resigned before he had a chance.

Heads up Grady, I was at work the next day, my phone was on, I still had a thirty day notice period, the company had me removed before discussion could take place. YOU cancelled the meeting that I was told to expect.

The chairman of the DCHL board is quoted in the press as saying heads will roll (ODT 29.10.16) if the accusations prove true. The terms of reference for the review are in the article below. Here’s the question that’s not asked, the only one which is relevant :

DOES THE STATE OF THE AURORA NETWORK POSE AN UNACCEPTABLE RISK TO THE SAFETY OF THE PEOPLE WHO WORK ON IT AND TO THE WIDER COMMUNITY?

Where’s that question Mr Crombie?!

[ends]

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At Facebook:

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█ Facebook: Richard Healey

Richard Healey [newshub.co.nz] | ODT 29.10.16 classified p51

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Related Posts and Comments:
4.11.16 Delta #EpicPowerFail 6 – Thick as a Brick
2.11.16 Delta #EpicPowerFail 5 : Grady Cameron on RNZ : How many Asset…
1.11.16 Delta/Aurora/DCHL corporate whitewash #dangerousnetwork
31.10.16 Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends
29.10.16 Mr Crombie, not quite the spent force
28.10.16 Heads of Delta/ Aurora/ DCHL/ DCC out to lunch
27.10.16 Bev Butler says ‘Come in, Grady’ #LGOIMA #Delta
27.10.16 Delta #EpicPowerFail 3 : Rotten Poles and Greedy Algorithms
25.10.16 Delta #EpicPowerFail 2 : Plaudits to Saunders & Elder : Delta…
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL…
21.10.16 Dunedin City Council must hang the companies out to dry
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 6 – Thick as a Brick

Received from Christchurch Driver [CD]
Thu, 3 Nov 2016 at 10:59 p.m.

Thick as a brick
Shallow as a bird bath
Not the sharpest knife in the drawer
A few sandwiches short of a picnic
Bought his doctorate online.

Come in Dr Parton….

Your correspondent was both entertained and aghast this morning when enjoying Choysa and a scone, he read Dr Parton, Aurora chair, dutifully parroting Grady Cameron’s lines in the ODT …. “aged network”, “our approach to its management is conservative”. Dr (Polly) Parton also said “it was “not appropriate” for him to respond to comments made by another chairman”. Your correspondent agrees it is not “appropriate”. It is essential to his credibility to do so, as Polly Parton is right – it is amazing that the chairman of a lines company, far away, has felt the need to make scathing comments about the lackadaisical approach to essential infrastructure he has found in the South, and called Aurora’s response “a lame excuse”. When did you last hear the CEO of a council make scathing comments about another ? —or one mayor disparage another in biting terms. It just isn’t done…. so now the attention of the entire lines industry, and the Commerce Commission is riveted upon Aurora as it has just been confirmed by the chair of Marlborough Lines, with no axe to grind, that Aurora’s mess and subsequent evasions are inexcusable.

Some other gems of the re-cycled obvious from Polly in the ODT were “Age … is one reason why we have marked so many poles for replacement” – how fascinating that the board and Mr Cameron only discovered these 40- to 60-year-old poles were aged and needed replacement around the time Mr Healey left three weeks ago.

Readers, while Aurora and Delta have an arrogant disregard for the interest of the consumers and ratepayers, they are very fearful of the Commerce Commission. And the Commerce Commission is under no illusions about the incompetence of Aurora. Not only did Aurora get warned for network failures this year, and are now ranked in the bottom 3 of the 29 lines companies for reliability, they were also warned about their lack of investment and incompetence in 2014 by the Commission.

On 26 June 2014 the Commission wrote to Aurora issuing them with a warning for non-compliance and raising concerns. They said:

“21. There are a number of concerns that we would particularly like to draw to Aurora’s attention … These concerns are:

21.1 Aurora’s vegetation control has been insufficient to prevent significant tree encroachment on lines, which has likely contributed to the frequency and duration of outages….”
Mr Cameron took great delight in waxing lyrical about the dedicated vegetation management unit Delta set up in 2015-16, and how Delta charged Aurora $4M for clearing 34km of lines. We now know it wasn’t anything to do with Mr Cameron, it was forced upon them by the Commerce Commission because they had neglected it for decades. In true Delta form, the cost of $130,000 per km is probably overstated by a factor of 5-10 dependent on difficulty.

“21.2 Aurora has had an increase in defective equipment incidents”.
Oh yes. Aurora’s own Asset Management Plan (AMP) spells out the failures, and impending ones, as noted in #EpicPowerFail 5. In relation to poles, Aurora reduced the number of poles it was going to replace in 2017-18, in its 2016-2026 plan, due to the mendacity of Matt Ballard, GM Capability & Risk. Reacting to public pressure and casting aside the long term plan due to a “perception problem”, without a funding plan in place is just giving the Commerce Commission all the evidence they need that the board isn’t in control and doesn’t know what it’s doing.

“21.3 There seems to be shortcomings in Aurora’s knowledge of its asset condition”.
….(Translated from bureaucratic-ese, this is : YOU ARE USELESS AND INCOMPETENT, and everything we have heard from Aurora recently confirms that this fault has become exponentially worse.

“21.4 Aurora’s reliance on its 6.6kV network as a back up to its aging 33kV cables in Dunedin could lead to major power outages.”

Ominously for the Directors, the Commission was clear about the consequences of further non-compliance, warning Aurora :

“Notwithstanding its 2013 and 2014 compliance, if Aurora fails to comply with the quality standards again, its 2012 non-compliance will be a relevant factor that may lead us towards a stronger enforcement response. Particularly relevant would be the extent to which concerns raised following Aurora’s 2012 non-compliance contributed to the second non-compliance.”

Here we are, four years later, and 3 of the 4 concerns are front and centre of the latest crisis. A lot of words have been written, meetings held, and plans begun, but the network has continued to decline. Unless the Commerce Commission has another spineless apologist like Rebstock of the Audit Office investigating, then the springs in the boardroom ejector seats are tightening.

Readers, we are all frustrated that Mr Cameron, Mr Ballard, and the directors have not a thread of integrity left among them, preferring eventual forcible removal (health problems anyone ?) to decency. But readers, how delicious will it be when they are kicked out, as that will almost certainly be the end of all of their directorial ambitions. Getting kicked out by the Government is the sort of thing that even the Institute of Directors would frown upon, despite overlooking a lot of other venality. As noted at What if?, the Government cannot afford to have tourists killed or suffering from power outages in their #1 tourist region in Central Otago, so it will not be open for Mr McLauchlan to go crawling to Minister Woodhouse, who doesn’t carry a lot of weight now in any case. McLauchlan’s other great fixer, fellow South Canterbury Finance trougher, Denham Shale, is now dead. Mr McLauchlan feeling the chilled air of exposure perhaps ? Perversely, we can be glad that Messrs Parton, Kempton, Thompson, McLauchlan and Frow are all….“thick as a brick”.

Final thought for the evening. If you were Grady Cameron and the board, and wanted to quickly replace 10,000 poles to “restore public confidence” then does buying steel poles from China that are made from less ductile steel (ie more brittle) sound like a good plan ? (Chinese steel is typically 20-25% ductile, whereas NZ seismic requirements generally require 32-34% ductility. It is near impossible to get Chinese steel at this ductility. A recent example is the problems with steel products imported from China by Steel & Tube). Yes readers, you heard it here first, not only did Mr Cameron fail to tell you where the $30M was coming from (they don’t know yet), he also neglected to mention they are buying steel poles from China. And remember, readers, not only did Mr Cameron describe this as “a good plan” on National Radio, but that he “was excited by it”. Truly…… “thick as a brick”.

[ends]

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Related Posts and Comments:
2.11.16 Delta #EpicPowerFail 5 : Grady Cameron on RNZ : How many Asset Management Plans does it take to get a Real One ?
1.11.16 Delta/Aurora/DCHL corporate whitewash #dangerousnetwork
31.10.16 Delta #EpicPowerFail 4 : Delta/Aurora, Drugs and Dividends
29.10.16 Mr Crombie, not quite the spent force
28.10.16 Heads of Delta/ Aurora/ DCHL/ DCC out to lunch
27.10.16 Bev Butler says ‘Come in, Grady’ #LGOIMA #Delta
27.10.16 Delta #EpicPowerFail 3 : Rotten Poles and Greedy Algorithms
25.10.16 Delta #EpicPowerFail 2 : Plaudits to Saunders & Elder : Delta…
22.10.16 DCC struggles with Governance…. Delta/Aurora/DCHL…
21.10.16 Dunedin City Council must hang the companies out to dry
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: pinimg.com – gary larson the far side, tweaked