4334 NEW ZEALAND GAZETTE, No. 155 25 NOVEMBER 2013

TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

4. Operating expenses

| LINES BUSINESS | 2013 $
M | 2012 $
M |
|------------------------|----------------|----------------|
| Transmission charges | | |
| Transfer payments to "other Transpower businesses" | - | - |
| Transmission asset maintenance: | | |
| Disconnection/reconnection services | - | - |
| Metering data | - | - |
| Consumer-based load control services | - | - |
| Royalty and patent expenses | - | - |
| Avoided transmission charges on account of own generation | - | - |
| Other - IT support | | |
| Other - insurance | 13.2 | 11.3 |
| Total | 13.2 | 11.3 |

Expenses to entities that are not related parties for:
| Transmission asset maintenance: | | |
| Disconnection/reconnection services | 128.4 | 127.4 |
| Information technology costs including lease costs | 27.8 | 27.3 |
| Metering data | - | - |
| Consumer-based load control services | - | - |
| Royalty and patent expenses | - | - |
| Total | 156.2 | 154.7 |

| | | |
| Employee salaries and redundancies | 51.8 | 43.7 |
| Consumer billing and information system expense | 13.4 | 13.5 |
| Corporate and administration expenses | 6.3 | 5.8 |
| Human resource expenses | 0.3 | 0.2 |
| Marketing/advertising expenses | - | - |
| Merger and acquisition expenses | - | - |
| Taxesower defence expenses | - | - |
| Research and development expenses | 15.3 | 12.4 |
| Legal and consultancy expenses | 1.1 | 1.3 |
| Study grants and donations | 0.5 | 0.5 |
| Directors' fees | - | - |
| Audit fees | 86.7 | 77.4 |
| Audit fees paid to principal auditors | 0.4 | 0.3 |
| Audit fees paid to other auditors | - | - |
| Fees paid for other services provided by principal and other auditors | 0.2 | 0.3 |
| Total | 0.6 | 0.6 |

| Cost of offering credit | | |
| Bad debts written off | - | - |
| Increase in estimated doubtful debts | - | - |
| Total | - | - |

| Local authority rates expense | 4.0 | 3.4 |
| AC loss-rental rebates (distributed to retailers/customers) expense | - | - |
| Rebates to consumers due to ownership interests | - | - |
| HVDC share of reserves | 8.4 | 17.5 |
| Subvention payments | - | - |
| Unusual expenses | - | - |
| Other expenses not listed - Industry related expenses | 7.1 | 6.7 |

| Total operating expenses | 278.2 | 271.6 |

| Depreciation, amortisation and write-offs | | |
| Depreciation of system assets | 154.6 | 141.1 |
| Depreciation of other assets | 10.8 | 7.7 |
| Total depreciation expense | 165.4 | 148.8 |
| Amortisation of intangibles | 12.0 | 8.1 |
| Other expenses not listed - Stock and asset write-offs | 16.6 | 12.1 |
| Total depreciation, amortisation and write-offs | 194.0 | 169.0 |

| Operating expenses including asset write-offs, depreciation and amortisation | 472.2 | 440.6 |