Tactical transmission upgrades - history
On 14 April 2005, Transpower submitted an application to the Commission for $158 million of interim grid expenditure (Tactical Transmission Upgrades or TTU Application) under the transitional provisions contained in rule 16 of section III of part F of the Electricity Governance Rules 2003 (Rules).
The Commission evaluated the information provided in support of the application and sought additional information from Transpower on 25 May 2005 pursuant to rule 16.3 of section III of part F.
Further information was provided to the Commission in the form of a letter from Transpower dated 1 July 2005.
The Commission then evaluated the additional information provided and sought a further set of information from Transpower on 5 August 2005. A response to the 5 August 2005 request was received on 12 September 2005.
The Commission completed a review of both the TTU Application and the further information provided by Transpower, and made indicative decisions for the IGE in each TTU project.
Having previously signalled its intention to engage with stakeholders as much as possible within the confines of the transitional provisions contained within rule 16, the Commission published a paper, setting out its indicative decisions, for consultation, pursuant to rule 16.4.2, on 7 October 2005.
The Commission received 10 submissions in response. Having considered the views of submitters, the Commission finalised its decision on the TTU Application at its 8/9 November 2005 Board meeting and produced a report summarising submissions and explaining the Commission's decisions.
TTU 28 - Request for amendment
On 8 November 2005, the Commission approved up to $7.3 million of Interim Grid Expenditure (IGE) to bus the Islington-Timaru-Twizel 220KV circuit at Ashburton (TTU 28).
On 4 October 2007, Transpower sought approval for an increase in total project costs for the proposal to $10.3 million.
On 11 December 2007, in accordance with rule 17.2 of section III of part F, the Commission agreed to amend the IGE previously approved for TTU 28 by increasing it from $7.3 million to an amount being the lesser of $9.5 million or the actual nominal cost of the project at the time of commissioning.
On 10 January 2008, Transpower wrote to the Commission confirming that it accepted the amendment to its application by changing the requested expenditure cap to $9.5 million.
TTU 27 - Request for amendment
On 8 November 2005, the Commission approved up to $25.536 million of IGE to duplex the Islington-Livingstone 220 kV circuit (TTU 27).
On 28 November 2007, Transpower sought approval for an increase in total project costs for TTU 27 to $33.236 million.
On 18 January 2008, the Commission wrote to Transpower seeking information on how the P90 costs, being estimated project costs including contingency amounts, had been developed.
On 8 February 2008, Transpower wrote to the Commission providing an overview of what Transpower had considered significant risks in the project delivery. In its letter, Transpower advised that it would accept a change to its 28 November 2007 application to amend the approved expenditure from $33.236 to $30.836
On 18 February 2008, in accordance with rule 17.2 of section III of part F, the Commission agreed to amend the IGE previously approved for TTU 27 by increasing it from $25.536 million to an amount being the lesser of $30.836 million or the actual nominal cost of the project at the time of commissioning.
This page is related to: Transmission.