✨ Financial Contingencies
4192
NEW ZEALAND GAZETTE, No. 172
27 NOVEMBER 2009
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 2009 was $6.0m to the credit of the customer.
The balance at 30 June 2009 is comprised of an AC customer credit balance of $108.8m and a HVDC customer debit balance of $102.8m.
(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 2009, No 172
✨ LLM interpretation of page content
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Financial Instruments and Risks for Transpower New Zealand Limited Lines Business
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🏢 State Enterprises & InsuranceFinancial Risks, Interest Rate Risk, Currency Risk, Credit Risk, Liquidity Risk, Financial Instruments, Interest Rate Swaps, Basis Swaps, Interest Rate Options, Foreign Exchange Forward Contracts, Sensitivity Analysis, Fair Value Movement Risk, Credit Spread Movement Risk