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

 


Commission releases decision on Transpower upgrade

Commission releases decision on Transpower upgrade

The Commerce Commission has today released its decision to approve Transpower’s proposed $161m replacement and upgrade of the lines between the Bunnythorpe substation near Palmerston North and the Haywards substation in the Hutt Valley.

Construction is expected to start next summer and to be completed by 2020. Transpower estimates that the investment will add 0.041 cents per kWh to consumers' bills.

“The replacement appears to be unavoidable because the lines are in poor condition and doing without them would cost nearly $1b,” said Commissioner Stephen Gale.

“The Transpower proposal includes $10.4m to increase the capacity of the lines. The aim is to reduce transmission losses and improve the ability of the electricity market to use the cheapest mix of generation from the thermal generators in the North Island and the hydro generators in the South Island.”

“The benefits of the upgrade will depend on electricity demand growth and on what new generation is built. The Commission has approved the upgrade but expects Transpower to monitor developments and review the project if there are material changes in the expected benefits,” said Dr Gale.

The Commission’s 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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news