New Zealand Gazette – 2002 – No. 173

Page 4368

✨ Financial Statements Notes



NEW ZEALAND GAZETTE

No. 173

TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS continued

FOR THE YEAR ENDED 30 JUNE 2002

8. FIXED ASSETS

LINES BUSINESS Valuation 2002 $000 LINES BUSINESS Valuation 2001 $000
Infrastructure asset
Transmission lines 814,689 800,614
Non infrastructure assets
Freehold land 49,942 45,403
Freehold buildings 41,476 35,364
Substations 755,485 779,642
HVDC link 65,024 47,356
HVDC leased assets 245,318 240,105
Communications 41,728 45,401
Administration assets 24,798 16,866
Capital work in progress 99,385 78,258
Total non infrastructure assets 1,321,156 1,288,455
Total fixed assets 2,135,845 2,089,069

Administration assets include plant, equipment, furniture and motor vehicles.

Capital work in progress comprises the following asset classes:

LINES BUSINESS 2002 $000 LINES BUSINESS 2001 $000
Transmission lines 5,392 2,820
Freehold land 677 243
Freehold buildings 3,412 2,997
Substations 67,962 44,029
HVDC link 304 631
HVDC leased assets 501 1,056
Communications 9,381 8,930
Administration assets 11,756 17,542
99,385 78,258

During the year the following borrowing costs were capitalised:

2002 $000 2001 $000
Transmission lines 264 178
Freehold land 20 3
Freehold buildings 111 103
Substations 1,859 977
HVDC link 7 13
HVDC leased assets 12 21
Communications 421 220
Administration assets 739 519
3,424 2,034

Assets that have been withdrawn from use or are not in current use are assigned a nil carrying value.

The fixed assets of the Lines Business were valued at 30 June 2002 in accordance with the ODV methodology. The valuation was completed by Transpower, and independently reviewed by PricewaterhouseCoopers.

In conducting this valuation the following significant assumptions or limiting conditions were taken into account:

Valuations have been established in accordance with the ODV methodology as described in the Optimised Deprival Valuation of Electricity Lines Business Fixed Assets (4th edition) (the Handbook), published by the Ministry of Economic Development.

Replacement costs for AC transmission assets have been obtained from the Handbook, or derived from costings prepared in accordance with the Handbook procedures.

Replacement costs for HVDC assets are based on:

  • international costs for HVDC equipment obtained from Teshmont Consultants Inc
  • easement costs capitalised in accordance with the Handbook
  • exchange rates are historical rates over the period April 1999 to June 2002, with the average USD exchange rate over that period being 0.4596

Interest during construction used in establishing replacement costs has been calculated at:

  • 4.0% for AC transmission lines, 4.8% for AC substation assets, and 5.8% for HVDC assets.

Assets have been optimised in accordance with the Handbook, utilising demand growth assumptions. The ratio of optimised replacement cost to replacement cost is approximately 83%.

Electricity demand is forecast to increase at a compound annual growth rate of 2.3%.

Electricity regulations additional disclosures:

2002 2001
Motor vehicles 877 850
Office equipment 248 254
Customer billing and information assets 489 113

Transpower Lines business system fixed assets have been valued at $1,995 million (2001: $1,979 million).



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2002, No 173


Gazette.govt.nz — PDF NZ Gazette 2002, No 173




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🏭 Transpower New Zealand Limited Notes to Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Fixed Assets, Valuation, Infrastructure, Electricity