Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Draft decision on Transpower’s line upgrade released

Commission releases draft decision on Transpower’s line upgrade


The Commerce Commission has today released its draft decision to approve Transpower’s proposed line upgrade between its Bunnythorpe substation near Palmerston North and Haywards substation in the Hutt Valley.

Transpower requires funding of up to $161 million to complete the project and must seek approval from the Commission to recover the costs for major capital investments it undertakes.

Transpower plans to replace the existing conductors, or wires, on the twotransmission lines between the Bunnythorpe and Haywards substations. The existing conductors would be replaced with larger ones that Transpower currently uses for these types of transmission lines, which would increase the capacity of each lineby about 12%.

Construction is planned to start in the summer of 2014/15 and be completed by 2020. Transpower estimates that the investment will, on average, add 0.041 cents per unit to consumers' bills.

“There is a clear benefit for consumers from replacing the transmission lines which are in poor condition. Transpower has calculated that a new line with the same capacity would provide an expected net electricity market benefit of $977 million,” said Commerce Commission Deputy Chair, Sue Begg.

“Transpower has proposed to increase the capacity of the lines. The proposal to upgrade the lines would achieve benefits by reducing transmission losses and improving the ability to use the cheapest mix of generation between the thermal generators in the North Island and the Hydro generators in the South Island.”

“Of the alternatives considered, Transpower’s preferred option appears to provide a good balance between increases in capacity, capital costs and expected benefits for the electricity market,” said Ms Begg.

The Commission is seeking feedback on its draft decision and Transpower’s proposal by 11 April 2014, and expects to finalise its decision by 2 May 2014.

The Commission’s draft decision and Transpower’s proposal are available on the Commission’s website:www.comcom.govt.nz/bunnythorpe-haywards-a-and-b-lines-conductor-replacement-investment-proposal

Background

Transpower must seek the Commission’s approval to recover the costs for major capital investments it undertakes. Major capital investments are those to enhance or develop the transmission grid and that have an expected cost greater than $5 million and are for new investments or asset upgrades, rather than ‘like for like’ asset replacements.

The rules relating to Transpower’s major capital investments are addressed in the Transpower Capital Expenditure Input Methodology Determination. The input methodology requires Transpower to seek approval for major capital projects in the national grid, and to deliver these projects to a set of approved components to recover the full cost of its investments from consumers.

When seeking approval, Transpower must outline its proposed investment, justification for the investment, the options Transpower has considered, the costs and benefits of the investment options and demonstrate that its proposal meets all the requirements in the input methodology. The Commission can only approve or reject a proposal from Transpower, rather than change any of the components that Transpower has proposed.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news