✨ Commerce Act Notice
27 JUNE 2008 NEW ZEALAND GAZETTE, No. 106 2809
assets which are to be depreciated over a period of four to ten years. The five pseudo assets will be the HVDC mercury arc valve pseudo asset, HVDC lines pseudo asset, other HVDC pseudo assets, AC lines pseudo asset, and AC substations pseudo asset.
(4) On and from 1 July 2006, the value of the pseudo assets will be as follows:
(a) HVDC mercury arc valve pseudo asset - $21 million;
(b) HVDC lines pseudo asset - negative $4 million;
(c) other HVDC pseudo assets - $17 million;
(d) AC lines pseudo asset - $64 million;
(e) AC substations pseudo assets - $14 million.
4 Capital Expenditure
(1) A fixed asset acquired since 30 June 2006 cannot be included in the regulatory asset base unless the asset is used to provide specified services; and
(a) has been approved by the Electricity Commission under the procedures in Part F; or
(b) is within a class of assets to which the transmission (non-Part F capex) threshold applies and does not result in the transmission (non-Part F capex) threshold being exceeded; or
(c) it is an asset resulting from capital expenditure incurred between 1 July 2006 and 30 June 2008, and is an asset of the kind described in clause 1(2) of Schedule 2; or
(d) results from non-Part F capital expenditure incurred as a direct result of a force majeure event or a security of supply event confirmed by the Commerce Commission in accordance with clause 9(2) of this Notice; or
(e) results from non-Part F capital expenditure which the Commerce Commission has otherwise determined to be justified notwithstanding that the expenditure incurred exceeded the transmission (non-Part F capex) threshold in the relevant assessment period; or
(f) relates to business support assets; or
(g) results from Part F capital expenditure which has not been approved under the Part F approval processes, but in respect of which the Electricity Commission has formally advised the Commerce Commission that it considers the expenditure to be prudent; or
(h) results from non-Part F expenditure which is the result of an insurance event and has been recovered by insurance income, or is reasonably anticipated by Transpower to be so recovered.
(2) Subject to subclause (3), Part F capex and non-Part F capex—
(a) is to be held in a works under construction account until the relevant assets are commissioned, and interest on this expenditure at Transpower’s cost of debt is to be accrued and capitalised in accordance with GAAP; and
Next Page →
NZ Gazette 2008, No 106
✨ LLM interpretation of page content
🏭
Commerce Act (Transpower Thresholds) Notice 2008
(continued from previous page)
🏭 Trade, Customs & Industry27 June 2008
Commerce Act, Transpower, Thresholds, Notice, 2008, Asset Management, Information Requirements, Compliance, Revenue Requirement