✨ Financial Statements
NEW ZEALAND GAZETTE
No. 162
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2003
8. FIXED ASSETS
| LINES BUSINESS Valuation 2003 | LINES BUSINESS Valuation 2002 | |
|---|---|---|
| $000 | $000 |
Infrastructure asset
Transmission lines | 806,001 | 817,531 |
Non infrastructure assets
Freehold land | 51,807 | 49,942 |
Freehold buildings | 38,472 | 41,476 |
Substations | 773,267 | 765,574 |
HVDC link | 60,309 | 67,530 |
HVDC leased assets | 222,178 | 243,318 |
Communications | 47,356 | 42,763 |
Administration assets | 24,081 | 24,798 |
Capital work in progress| 99,155 | 99,385 |
Total non infrastructure assets | 1,316,625 | 1,334,786 |
Total fixed assets | 2,122,626 | 2,152,317 |
Administration assets include plant, equipment, furniture and motor vehicles.
Capital work in progress comprises the following asset classes:
| 2003 | 2002 | |
|---|---|---|
| $000 | $000 | |
| Transmission lines | 5,700 | 5,392 |
| Freehold land | 247 | 677 |
| Freehold buildings | 198 | 3,412 |
| Substations | 68,898 | 67,962 |
| HVDC link | 191 | 304 |
| HVDC leased assets | 237 | 501 |
| Communications | 5,183 | 9,381 |
| Administration assets | 18,501 | 11,756 |
| 99,155 | 99,385 |
During the year the following borrowing costs were capitalised:
| 2003 | 2002 | |
|---|---|---|
| $000 | $000 | |
| Transmission lines | 348 | 264 |
| Freehold land | 95 | 20 |
| Freehold buildings | 76 | 111 |
| Substations | 1,734 | 1,850 |
| HVDC link | 6 | 7 |
| HVDC leased assets | 7 | 12 |
| Communications | 321 | 421 |
| Administration assets | 592 | 739 |
| 3,179 | 3,424 |
Assets that have been withdrawn from use or are not in current use are assigned a nil carrying value.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 2003 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 System 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 2000 to June 2003, with the average USD exchange rate over that period being 0.4780
Interest during construction used in establishing replacement costs has been calculated at 4.0% of replacement cost 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 85%.
Electricity demand is forecast to increase at a compound annual growth rate of 2.3%.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 162
Gazette.govt.nz —
NZ Gazette 2003, No 162
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Transpower New Zealand Limited Lines Business Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Fixed assets, Infrastructure assets, Non-infrastructure assets, Valuation, Borrowing costs, Capital work in progress, ODV methodology, Electricity demand forecast