New Zealand Gazette – 2007 – No. 134

Page 3506

✨ Financial Statements Notes



TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS continued

FOR THE YEAR ENDED 30 JUNE 2007

16. CAPITAL COMMITMENTS

LINES BUSINESS 2007 $000 LINES BUSINESS 2006 $000
Capital commitments in respect of contracts for capital expenditure:
Within one year 38,650 40,260
One to two years - -
Two to five years - -
Total capital commitments 38,650 40,260

17. OPERATING LEASE COMMITMENTS

Commitments in respect of non-cancellable operating leases payable:

LINES BUSINESS 2007 $000 LINES BUSINESS 2006 $000
Within one year 7,316 4,932
One to two years 7,063 4,822
Two to five years 12,935 11,631
Later than five years 9,356 12,338
Total operating lease commitments 36,270 33,823

18. CONTINGENT LIABILITIES

(i) Guarantees

Cross Border Lease

Transpower has entered into three cross border leases in respect of certain HVDC converter stations, the submarine cables and the majority of the AC transmission assets in the South Island. The nature of these transactions is described in Note 11.

Transpower has given guarantees and certain undertakings in accordance with a limited guarantee dated 24 October 1996 in respect of certain HVDC converter stations, a limited guarantee dated 31 May 1996 in respect of the submarine cables and a limited guarantee dated 22 December 2003 in respect of the South Island AC assets.

The likelihood of losses in respect of these matters is considered to be remote.

Debt

Transpower has provided guarantees in respect of loan arrangements for the Bonds, Euro medium term notes and Australian medium term notes as described in Note 12.

The maximum exposure under each of these guarantees is as follows:

2007 2006
Bonds 245,729 348,203
Euro Medium Term Notes 419,025 271,203
Australian Medium Term Notes - -
US Private Placement 164,474 164,474

The likelihood of losses in respect of these matters is considered to be remote.

(ii) Todd Energy and Kiwi Co-operative Dairies Claim

Todd Energy Limited (Todd) and Kiwi Co-operative Dairies Limited have commenced a claim against both Transpower and Powerco Limited alleging breaches of the Commerce Act 1986. Kiwi Co-operative Dairies Limited has since withdrawn from the proceedings. Todd is seeking declarations, injunctions, and damages in an as yet unquantified amount (plus interest and costs). Transpower has filed a statement of defence and believes that it has not breached the Commerce Act in any respect. Transpower applied to the High Court for summary judgement and strikeout against Todd on various grounds. The High Court struck out one of Todd’s causes of action against Transpower in April 2005. In July 2007 the Court of Appeal reinstated the struck out cause of action but struck out and amended some others. Aspects of the Court of Appeal decision have been appealed by both Todd and Transpower.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2007, No 134


Gazette.govt.nz — PDF NZ Gazette 2007, No 134




✨ LLM interpretation of page content

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

🏭 Trade, Customs & Industry
30 November 2007
Financial Instruments, Derivatives, Hedging, Accounting Policies, NZ IFRS, Financial Reporting, Taxation, Revenue Deferral, Balance Sheet Adjustments, Operating Revenue, Transmission Services, Electricity Regulations, Capital Commitments, Operating Lease Commitments, Contingent Liabilities, Guarantees, Cross Border Lease, HVDC Converter Stations, Submarine Cables, AC Transmission Assets, South Island, Debt, Bonds, Euro Medium Term Notes, Australian Medium Term Notes, US Private Placement, Todd Energy, Kiwi Co-operative Dairies, Commerce Act 1986, High Court, Court of Appeal