✨ Financial Contingencies
28 NOVEMBER 2008 NEW ZEALAND GAZETTE, No. 186 4899
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
26. Contingencies
(i) Guarantees
Debt
Transpower, and in some cases certain subsidiaries, have provided guarantees in respect of loan arrangements for the Bonds, Euro Medium Term Notes, Australian Medium Term Notes and the US Private Placement.
The likelihood of losses in respect of these matters is considered to be remote.
Cross Border Leases
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.
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 cross border leases are excluded from these Lines Business financial statements.
(ii) Economic Gain (Loss) Account
Transpower operates its revenue setting methodology within an Economic Value ("EV") framework that analyses economic gains and losses between those attributable to shareholders and those attributable to customers. The balance of the accumulated gain (loss) from monopoly activities attributable to customers ("the EV balance") has been passed on to or claimed from customers over time.
The net balance of the EV account at 30 June 2008 was $6.6m to the credit of the customer.
(iii) Various Other Lawsuits, Claims and Investigations
Various other lawsuits, claims and investigations have been brought or are pending against the Lines Business. The Directors of Transpower cannot reasonably estimate the adverse effect (if any) on the Lines Business if any of the foregoing claims are ultimately resolved against the Lines Business’s interests.
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NZ Gazette 2008, No 186
✨ LLM interpretation of page content
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Financial Contingencies for Transpower Lines Business
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🏭 Trade, Customs & IndustryContingencies, Guarantees, Debt, Cross Border Leases, Economic Gain, Lawsuits, Claims, Investigations