✨ Commerce Act Regulations
27 JUNE 2008 NEW ZEALAND GAZETTE, No. 106 2811
above or below ground), land, buildings or other improvements for the purpose of providing corridors for transmission assets and sites for substations;
(c) GAAP is to be used to determine the date on which assets are commissioned and their capital cost. Upon asset commissioning, Transpower may include the assets in its regulatory asset base for the purposes of determining its AC or HVDC revenue requirement. Transpower may forecast asset commissioning for the purpose of determining its AC or HVDC forecast revenue requirement;
(d) Transpower is to recover the lesser of actual costs incurred or the upper limit of costs as proposed by Transpower and approved by the Electricity Commission under Part F.
(6) Easements are to be depreciated only when they have a limited life or are required for a known, limited period of time. Land is not to be depreciated.
(7) Transpower may from time to time develop transmission alternative services. The costs of developing and funding transmission alternative services—
(a) where these costs are operating expenditure and for the purposes of clause 5 of this Schedule, are to be in addition to any indexed opex; and
(b) may be recovered from customers only if the Electricity Commission approves such expenditure under Part F.
5 Cost of Capital
(1) Transpower is to use a post tax nominal WACC of 7.8% to calculate the AC or HVDC revenue requirement for the pricing years commencing 1 April 2008, 1 April 2009 and 1 April 2010.
(2) The difference between Transpower’s actual financing costs and the capital charge arising from application of the WACC specified in subclause (1) in any year is to be to the benefit of, or cost to, Transpower.
6 Operating costs
(1) Operating costs are to be determined in accordance with subclause (2) before being allocated between the AC revenue requirement and HVDC revenue requirement.
(2) Operating costs to be allocated between the AC revenue requirement and HVDC revenue requirement in any assessment period are to be the sum of the following:
(a) indexed opex for that assessment period less 75% of any saving in administration costs Transpower identifies as resulting from alignment of the regulatory and financial accounts; and
(b) operating lease costs, determined in accordance with subclause (5);
(c) pass through costs (being Electricity Commission levies and local authority rates at the date of this notice) as defined by the Commerce Commission from time to time;
(d) any operating costs associated with transmission alternative services that have been approved by the Electricity Commission;
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