✨ Electricity Transmission Policy
27 MAY 2009 NEW ZEALAND GAZETTE, No. 75 1739
Electricity Commission of grid upgrades by Transpower where the expected total cost of the project is less than $20M.
- For all future small projects with an expected cost of less than $20M the Government seeks the following outcomes:
• Transpower should develop and submit upgrade plans to the Commission for approval.
• Grid upgrade plans should set out the rationale for the proposal and all expenditure, meet minimum reliability standards for the grid, be supported by economic analysis commensurate with the expected level of expenditure, and take into account good electricity industry practice for power system operation.
• In developing grid upgrade plans Transpower should undertake the detailed planning role; it should consult with materially affected parties, and have regard to all submissions received prior to submitting the grid upgrade plan to the Commission.
• Once the Commission has received a grid upgrade plan the Commission should approve the plan without undue delay provided it is satisfied that Transpower has complied with the process requirements to prepare a grid upgrade plan, and the consultation requirements above.
• The Commission should not be required to assess and evaluate the merits (whether technical, economic or otherwise) of small investment plans with an expected cost of less than $20 million.
• If Transpower wants to amend a previously approved grid upgrade plan it should follow the same process unless the total project cost under the amended plan exceeds $20M. In that case, the standard process, as outlined in paragraphs 78 to 86, should apply.
Planning ahead
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The Government is concerned to ensure that the necessary planning and securing of consents (or designations) and land access rights for investments in the transmission system will meet needs.
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The Commission should encourage Transpower to identify and secure appropriate interests in land, designations and resource consents required for transmission corridors well in advance of urgent needs. Transpower should be able to recover the reasonable net costs of doing this work.
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The risks to maintaining grid reliability resulting from uncertainties in demand forecasting and easements should be conservatively managed.
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This should help the essential process of maintaining stakeholder confidence in ongoing security of electricity supply even if, at times, there is some loss of flexibility around investment choices and some additional cost for electricity consumers.
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NZ Gazette 2009, No 75
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