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

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news