Authorities and Other Agencies of State Notices

Civil Aviation Authority of New Zealand

Civil Aviation Act 1990

Airworthiness Directives

Pursuant to section 72I(3A) of the Civil Aviation Act 1990, I, Owen Olls, Airworthiness Specialist, acting under a delegation from the Director of Civil Aviation, hereby issue the following airworthiness directives in respect of aircraft or aeronautical products.

These airworthiness directives came into force on:

• EASA AD 2007-0077-E 27 March 2007
• EASA AD 2008-0182-E 3 October 2008
• EASA AD 2014-0170 31 July 2014
• EASA AD 2014-0175 1 August 2014
• EASA AD 2013-0284R1 8 August 2014
• EASA AD 2014-0180 11 August 2014
• EASA AD 2014-0181 14 August 2014
• EASA AD 2014-0185 20 August 2014

These airworthiness directives will come into force on:

• DCA/MA/18 28 August 2014
• Transport Canada CF-2014-26 28 August 2014
• Transport Canada CF-2014-28 2 September 2014
• DCA/R2000/25A 5 September 2014

These emergency airworthiness directives came into force on:

• EASA AD 2014-0182-E 5 August 2014
• EASA AD 2014-0183-E 5 August 2014
• FAA AD 2014-15-18 20 August 2014

Airworthiness directives may be viewed on the CAA website (www.caa.govt.nz) or at Asteron Centre, Level 15, 55 Featherston Street, Wellington 6011, or on application to the Aircraft Certification Unit, CAA, PO Box 3555, Wellington 6140.

Dated at Wellington this 25th day of August 2014.

OWEN OLLS, Airworthiness Specialist.

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Commerce Commission

Commerce Act 1986

Notification of Amendment to Input Methodologies for Transpower

The Commerce Commission ("Commission") has amended the input methodologies applicable to electricity lines services supplied by Transpower under Part 4 of the Commerce Act 1986.

The amended input methodologies are:

• Transpower Input Methodologies Determination [2012] NZCC 17
• Transpower Capital Expenditure Input Methodology Determination [2012] NZCC 2

The amendment is set out in the Transpower Input Methodologies Amendments Determination 2014 [2014] NZCC 22, and will apply to the determination of Transpower’s individual price-quality path.

In summary, our decisions are:

Specified asset lives—we have removed the requirement to spread depreciation for “end-of-life” assets across a regulatory period from the asset valuation input methodology. We have made this amendment because it will reduce Transpower’s compliance costs by aligning regulatory treatment with generally accepted accounting practice, and will not detract from investment incentives given the application of the Transpower Capital Expenditure Input Methodology Determination.

Definition of "commissioned"—we have clarified that land which is base capex under the Transpower Capital Expenditure Input Methodology Determination may enter the regulatory asset base upon acquisition. This amendment will reduce uncertainty by removing ambiguity about the appropriate treatment of land intended to be used to provide electricity transmission services, but which is purchased prior to use. The framework introduced by the Transpower Capital Expenditure Input Methodology Determination will provide adequate incentives for prudent acquisition of low-cost land acquired for strategic purposes.

Reconsideration of the individual price-quality path—we have amended the reconsideration of an individual price-quality path input methodology to reflect changes to terminology resulting from the Transpower Capital Expenditure Input Methodology Determination. These amendments will allow reconsideration of the revenue-linked grid output measures following a catastrophic event, error or change event. We have made this amendment to ensure consistency with the quality standards terminology used in the Transpower Capital Expenditure Input Methodology Determination.

Recoverable costs—we have amended the specification of price input methodology to allow expenditure, classified as opex under generally accepted accounting practice, to be treated as recoverable costs if originally forecast as approved major capex. We have made this amendment to preserve the neutrality of efficiency incentives irrespective of the accounting treatment ultimately adopted for expenditure incurred in major capex projects approved under the Transpower Capital Expenditure Input Methodology Determination. We have also allowed for the recovery of prudent additional net opex incurred as the result of a catastrophic event. We have made this amendment because there is currently no allowance for the additional costs incurred in responding to a catastrophic event, which may undermine incentives to respond efficiently and appropriately.

Definition of "forecast CPI"—we have updated the methodology for forecasting CPI with reference to the Reserve Bank’s policy target for inflation. This amendment aligns with similar amendments to the input methodologies application to other regulated energy sectors for the purposes of setting capex allowances. We have made this amendment because it is a better indicator of inflation.