NEW ZEALAND GAZETTE

No. 161

BAY OF PLENTY ELECTRICITY LIMITED

Special Purpose Financial Statements

Electricity (Information Disclosure) Regulations 1994

Notes to the Financial Statements

for the 12 Months ended 31 March 1996

14 Fixed Assets (continued)

Distribution System

• Valuation (Cost in 1995) 56,834 25,988 - - - -
• Accumulated Depreciation - (9,589) - - - -
• Book Value 56,834 16,399 - - - -

Generation Plant

• Valuation (Cost in 1995) - - 76,792 31,707 - -
• Accumulated Depreciation - - (12,110) - - -
• Book Value - - 76,792 19,597 - -

Plant and Equipment

• Cost 2,286 2,978 485 402 373 310
• Accumulated Depreciation (1,531) (1,735) (278) (211) (207) (156)
• Book Value 755 1,243 207 191 166 154

Motor Vehicles

• Cost 438 471 179 193 85 91
• Accumulated Depreciation (231) (263) (107) (122) (31) (36)
• Book Value 207 208 72 71 54 55

Furniture and Fittings

• Cost 318 273 91 78 96 82
• Accumulated Depreciation (216) (191) (62) (55) (65) (57)
• Book Value 102 82 29 23 31 25

Total Fixed Assets

• Cost or Valuation 61,556 31,247 90,115 36,937 736 649
• Accumulated Depreciation (2,284) (12,065) (13,440) (468) (341) (285)
• Book Value 59,272 19,182 89,647 23,497 395 364

Current Government Valuations for Non-Generation Land and Buildings are $4.3 million. Valuation dated 1/9/1995.

Valuation of Generation and Distribution Assets

Valuation reports have been obtained for the generation and distribution assets as at 31 March 1996. The Distribution valuation was prepared by Worley Consultants Limited in conjunction with Coopers and Lybrand and the Generation assets were valued by Coopers and Lybrand and independently verified by Leyland Consulting Limited. All valuations were performed in accordance with generally accepted valuation techniques.

The Distribution System, previously recorded at historical cost, has been revalued to Optimised Deprival Value as stated in the above mentioned valuation report. The Optimised Deprival Value is considered to be equivalent to net current value. The revaluation was performed as at 31 March 1996, and future revaluations will be prepared on a cyclical basis at least every three years.

Generation assets, previously recorded at historical cost, have been revalued to economic value stated in the above mentioned valuation report. The revaluation was performed as at 31 March 1996, and future revaluations will be performed on a cyclical basis at least every three years. The valuation established reflects the lower of net realisable value or net current value. The valuation has been calculated using net present values of predicted future cash flows, allowing for the benefit of avoided Trans Power transmission charges.