New Zealand Gazette – 2003 – No. 162

Page 4532

✨ Annual Valuation Reconciliation Report



TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

ANNUAL VALUATION RECONCILIATION REPORT

YEAR ENDED 30 JUNE 2003

$ million
System fixed assets at ODV at 30 June 2002 1,895
Add system fixed assets acquired during the year at ODV 120
Less system fixed assets disposed of during the year at ODV 7
Less depreciation on system fixed assets at ODV* 109
Add revaluations of system fixed assets -33
Equals system fixed assets at ODV at 30 June 2003 1,866

*Depreciation on system fixed assets at ODV includes the Long Run Average Cost of maintaining the transmission lines.

Reconciliation of the Transpower Lines Business’s depreciation to the “depreciation on the system fixed assets at ODV”:

| Depreciation on system fixed assets as per the Transpower Lines Business's financial statements | 66 |
| Plus Long Run Average cost** | 43 |
| Depreciation on system fixed assets at ODV | 109 |

**Long Run Average Cost (LRAC) is the cost for a year to maintain the current service potential of transmission line. Therefore by its nature it is a proxy for the depreciation charge for the year.

| Long Run Average Cost | 43 |
| Less Service Potential Adjustment | 9 |
| Life Extending Maintenance Expenditure | 34 |

The $34 million Life Extending Maintenance is included in the “system fixed assets acquired during the year at ODV”.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 162


Gazette.govt.nz — PDF NZ Gazette 2003, No 162




✨ LLM interpretation of page content

🏭 Transpower New Zealand Limited Lines Business Annual Valuation Reconciliation Report (continued from previous page)

🏭 Trade, Customs & Industry
Annual report, Valuation reconciliation, System fixed assets, Depreciation, Long Run Average Cost, Maintenance expenditure