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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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