✨ Commerce Act Notice Continuation
2810 NEW ZEALAND GAZETTE, No. 106 27 JUNE 2008
(b) may be included in the asset base used to determine the AC or HVDC revenue requirement once the relevant assets have been commissioned.
(3) Subject to subclause (4), capital expenditure in relation to specified services associated with—
(a) transmission corridor investments; or
(b) land and easement investments, or
(c) any associated resource consents or designations that form part of, or are otherwise required for, investments that are subject to approval processes under Part F (whether such investments have been included in, or are acquired in anticipation of, a grid upgrade plan proposal) or that are acquired for strategic option value purposes for future grid investme—
is to be included in the regulatory asset base used to determine the AC or HVDC revenue requirement only when the purchase has been approved by the Electricity Commission and the capital expenditure has actually taken place and, in the case of land acquired for strategic option value purposes, meets the requirements of Rule 4.2 of the Grid Investment Test in Schedule F4 of Section III of Part F.
(4) Where Transpower purchases land to gain an easement with the intention of on-selling some or all of that land—
(a) the value of land held for re-sale, and the costs and income associated with purchasing, holding, developing, and selling the land, are to be excluded from the regulatory asset base;
(b) the capital value of easements over land held for re-sale, together with any injurious affection payments and all other costs of establishing the easements, are to be part of the regulatory asset base, subject to the approval of purchase costs by the Electricity Commission;
(c) the capital value of those easements and any injurious affection payments is to be valued by independent valuations;
(d) the inclusion within the regulatory asset base of the full costs of establishing those easements is to occur at the date of the next valuation of the regulatory asset base following either purchase of the land or the approval of the purchase by the Electricity Commission, whichever is the later.
(5) For the purposes of subclauses (1) to (4)—
(a) a reference to approval by the Electricity Commission means approval given under a Part F approval process or, if there is no applicable Part F approval process, a formal communication to the Commerce Commission from the Electricity Commission to the effect that it considers the capital expenditure (or, in the case of transmission alternative services, the costs) to be prudent, and in either case irrespective of whether approval is sought or given before, or subsequent to, the capital expenditure being incurred; and
(b) a reference to transmission corridor investments means investments in any of easements, access rights, access ducts, cable ways or tunnels, (in each case whether
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NZ Gazette 2008, No 106
✨ LLM interpretation of page content
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Commerce Act (Transpower Thresholds) Notice 2008
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🏭 Trade, Customs & Industry27 June 2008
Commerce Act, Transpower, Thresholds, Notice, 2008, Asset Management, Information Requirements, Compliance, Revenue Requirement