✨ Commerce Act Notice Continuation
27 JUNE 2008 NEW ZEALAND GAZETTE, No. 106 2815
(a) bring the performance, or security of service, of the asset up to a modern standard or industry good practice;
(b) ensure compliance with statutory or Electricity Governance Rules requirements;
(c) correct historical design or construction issues; or
(d) provide physical protection of assets.
(2) Transpower project investments with a total expected value below $1.5m need not be submitted for Electricity Commission approval and any such projects not submitted to the Electricity Commission for approval may be submitted to the Commerce Commission for approval to form part of the transmission (non-Part F capex) threshold.
(3) A new work programme having an expected total cost of more than $5 million, whose purpose is to enhance capacity or quality of service and that affects a large number of assets will not form part of non-Part F capex, subject to any agreement to the contrary between Transpower and the Commerce Commission when the threshold is set.
(4) Without limiting subclauses (1) and (2), examples of the types of work that would generally form part of non-Part F capex include the following:
(a) work required under Part C of the Electricity Governance Rules 2003, as amended from time to time;
(b) duplicating battery banks;
(c) installation of vibration dampers on overhead lines;
(d) increasing physical security for assets, for example fences, seismic upgrades, retaining walls, site and equipment earthing;
(e) installation of temperature control in buildings;
(f) installing or upgrading oil containment;
(g) installation of circuit breakers, fail protection, bus zone protection, and transformer protection; and
(h) improving the lightning protection of transmission lines.
5 Operational network information and technology services (IT)
(1) IT expenditure which is operations or network focused may be submitted to the Commerce Commission for approval to form part of the (non-Part F capex) threshold.
(2) Anticipated operating lease costs associated with Transpower’s telecommunication upgrade programme are to be capitalised by discounting the future cash commitment at the cost of debt to determine the implicit asset value. The value of the assets is then to be included in operating capital and capital invested by adjusting fixed assets and debt respectively. The interest component of the operating lease charge is to be estimated based upon the cost of debt implicit in the cost of capital. Depreciation expense is then to be calculated for the operating capital employed.
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NZ Gazette 2008, No 106
✨ LLM interpretation of page content
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Commerce Act (Transpower Thresholds) Notice 2008 Schedule
(continued from previous page)
🏭 Trade, Customs & Industry27 June 2008
Commerce Act, Transpower, Thresholds, Schedule, Non-Part F Capex, Asset Management, Criteria