Transmission pricing methodology review - issues and proposal

About this consultation

The Electricity Authority (Authority) is reviewing the transmission pricing methodology (TPM), which specifies the method for Transpower New Zealand Limited (Transpower) to recover costs of providing transmission services.

The Authority considers that the current TPM can be improved so as to better promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers.

The Authority developed a decision-making and economic framework on which it would make decisions about the TPM, which was generally well received by stakeholders. The Authority has applied this framework to derive its proposal for the TPM.

Submissions are due on 1 March 2013 with cross-submissions due on 28 March 2013.

The Authority has a policy of making material that has been requested by, and released to, individual participants as part of a consultation process publically available. Accordingly, the Authority has published a number of data files containing data used in the presentation material accompanying the release of the TPM  issues paper. It is important to note that the data is based on SPD modelling simulations using historical market offers, and should not be treated as being predictive of actual future transmission charges.

Submissions

The Authority's preference is to receive submissions in electronic format (Microsoft Word). It is not necessary to send hard copies of submissions to the Authority, unless it is not possible to do so electronically. Submissions in electronic form should be emailed to submissions@ea.govt.nz with "Consultation Paper - Transmission pricing methodology review - issues and proposal ' in the subject line.

If submitters do not wish to send their submission electronically, they should post one hard copy of their submission to the address below.

Submissions
Electricity Authority
PO Box 10041
Wellington 6143

or

Submissions
Electricity Authority
Level 7, ASB Bank Tower
2 Hunter Street
Wellington

Tel: 04 460 8860
Fax: 04 460 8879

Submissions must be received by 5.00 pm on Friday 1 March 2013. The Authority will allow for cross-submissions. Cross-submissions must be received by 5.00pm on 28 March 2013. Please note that late submissions and cross-submissions are unlikely to be considered.

The Authority will acknowledge receipt of all submissions electronically. Please contact the Submissions' Administrator if you do not receive electronic acknowledgement of your submission within two business days.

If possible, submissions should be provided in the format shown in Appendix A. Your submission is likely to be made available to the general public on the Authority's website. Submitters should indicate any documents attached, in support of the submission, in acovering letter and clearly indicate any information that is provided to the Authority on a confidential basis. However, all information provided to the Authority is subject to the Official Information Act 1982.

Consultation Papers

Transmission pricing methodology review - issues and proposal

Transmission-pricing-methodology-review-issues-and-proposal-consultation-paper.pdf | pdf | 1.7 MB | Last Changed: 22/02/2013 4:54pm

This document has been updated to correct a minor error in Table 3 for the point estimate for the total costs of the interconnection charge.

Word version of Appendix A: Format for submissions

Word-version-of-TPM-questions.DOCX | docx | 49 KB | Last Changed: 14/12/2012 11:37am

Appendix B: Overview of the evolution of transmission pricing

Appendix-B.pdf | pdf | 48 KB | Last Changed: 10/10/2012 10:02am

Appendix C: Assessment of materiality of problems with HVDC charges under the current TPM

Appendix-C.pdf | pdf | 1.1 MB | Last Changed: 10/10/2012 10:02am

Appendix D: assessment of materiality of problems with interconnection charges under the current TPM

Appendix-D.pdf | pdf | 211 KB | Last Changed: 10/10/2012 10:02am

Correction to Appendix D: Assessment of materiality of problems with interconnection charges under the current TPM

Appendix-D-corrected.pdf | pdf | 543 KB | Last Changed: 14/12/2012 11:42am

Appendix E: Using the SPD method to apply beneficiaries pay

Appendix-E.pdf | pdf | 890 KB | Last Changed: 10/10/2012 10:03am

Appendix F: Cost-benefit analysis of TPM proposal

Appendix-F.pdf | pdf | 257 KB | Last Changed: 10/10/2012 10:03am

Correction to Appendix F: Cost-benefit analysis of TPM proposal

Appendix-F-corrected.pdf | pdf | 463 KB | Last Changed: 14/12/2012 11:42am

Overview paper

Overview.pdf | pdf | 237 KB | Last Changed: 10/10/2012 10:03am

Questions and Answers

QA.pdf | pdf | 78 KB | Last Changed: 10/10/2012 4:48pm

TPM presentation for issues paper release

Presentation.pdf | pdf | 717 KB | Last Changed: 10/10/2012 10:04am

Half hourly SPD benefit based charge by investment

SDP-Charge-Data.zip | zip | 52 MB | Last Changed: 11/10/2012 8:03pm

Half hourly SPD benefit based charge by investment (updated 1/11/2012)

SDP-Charge-Data-Updated20121101.zip | zip | 67 MB | Last Changed: 02/11/2012 12:18pm

TPM_Presentation_HeatMap_Data

TPM-Release-Presentation-HeatMapData.zip | zip | 9 KB | Last Changed: 11/10/2012 8:03pm

Transmission investment private benefit by retail area, generator and large load

Benefit-by-TX-Region-Data-Published.xlsx | xlsx | 15 KB | Last Changed: 12/10/2012 7:49pm

Transmission investment private benefit by retail area, generator and large load (updated 1/11/2012)

Benefit-by-TX-Region-Data-Published-Updated20121101.xlsx | xlsx | 17 KB | Last Changed: 02/11/2012 12:18pm

Node to region mapping

Node-to-region-mapping.xlsx | xlsx | 12 KB | Last Changed: 15/10/2012 10:45am

Annual Expected Revenue By Investment

AnnualExpectedRevenueByInvestment.xlsx | xlsx | 11 KB | Last Changed: 15/10/2012 10:45am

Annual Expected Revenue by Investment (updated 1/11/2012)

AnnualExpectedRevenueByInvestment-Updated20111101.xlsx | xlsx | 11 KB | Last Changed: 02/11/2012 12:18pm

Loss and Constraint Excess by year

Annual-LCE.xlsx | xlsx | 9.2 KB | Last Changed: 18/10/2012 9:08am

Full node list with node type (export/import)

Full-Pnode-types.xls | xls | 42 KB | Last Changed: 18/10/2012 9:09am

List of existing generation stations including connection nodes

GeneratingStationListSep2012.xls | xls | 188 KB | Last Changed: 18/10/2012 9:09am

Average MW load and generation by node by year

gxp-mean-MW.xls | xls | 67 KB | Last Changed: 18/10/2012 9:21am

RCPD percentage of total New Zealand load by year

RCPD-percentage-by-year.xls | xls | 63 KB | Last Changed: 18/10/2012 9:09am

RCPI percentage of total New Zealand generation by year

RCPI-percentage-by-year.xls | xls | 56 KB | Last Changed: 18/10/2012 9:09am

Instructions for downloading the TPM vSPD model

Instructions-TPMvSPD-model.pdf | pdf | 8.6 KB | Last Changed: 18/10/2012 9:20am

Presentation given to Transmission Pricing Review Issues and Proposal Forum

TPM-consultation-Auckland.pdf | pdf | 965 KB | Last Changed: 24/10/2012 9:28am

These slides were presented to the Auckland forum, They were amended slightly from those presented in Wellington and Christchurch in order to remove some minor errors and add a slide regarding load control.

Benefit and SPD charge calculation algorithm

BenefitandSPAlgorithm.pdf | pdf | 70 KB | Last Changed: 24/10/2012 1:12pm

Transmission pricing consultation - questions and responses

Questions-and-responses.pdf | pdf | 104 KB | Last Changed: 21/12/2012 3:13pm

Monthly SPD benefit based charge by investment

MonthlySummarySPDData.csv | csv | 3.5 KB | Last Changed: 02/11/2012 2:29pm

Annual rental breakdown between asset classes based on Final Pricing schedules

Rental-breakdown-based-on-Final-Pricing-schedules-v3.xlsx | xlsx | 17 KB | Last Changed: 13/11/2012 1:42pm

The data in this spreadsheet has been corrected, most significantly in the treatment of fixed losses.

Total SPD and residual costs (prior to allocation through RCPI /RCPD) by trading period

ResidualChargeByPeriod.zip | zip | 382 KB | Last Changed: 13/11/2012 1:45pm

Total SPD charge by node and trading period (normalised data format)

SPDChargeByPeriodNode.zip | zip | 91 MB | Last Changed: 13/11/2012 1:46pm

Total SPD charge by node and trading period (cross-tabbed data format)

SPDChargeByPeriodNodeCT.zip | zip | 24 MB | Last Changed: 13/11/2012 1:47pm

Monthly SPD benefit-based charge by investment, and residual prior to allocation

Monthly-SPD-charges-and-residual-updated20121113published.xlsx | xlsx | 14 KB | Last Changed: 13/11/2012 1:45pm

Transmission pricing methodology review: Estimation of impacts of Authority TPM proposal on consumer prices by line company area

TPM-estimation-on-cosumer-prices-by-line-company.pdf | pdf | 166 KB | Last Changed: 06/12/2012 11:48am

This has been updated to correct errors in relation to the calculation of the impact on retail tariffs across all line company areas. The values in relation to individual line companies remain unchanged, however

Spreadsheet for calculation of figures in “Transmission pricing methodology review: Estimation of impacts of Authority TPM proposal on consumer prices by line company area”

TPM-Comparison-existing-vs-proposed-on-retail-charges-published.xlsx | xlsx | 155 KB | Last Changed: 07/12/2012 12:26pm

Transmission pricing CBA

CBA-TPM-v11.zip | zip | 73 KB | Last Changed: 29/11/2012 10:36am

TPM: Optuions and guidelines - issues paper for TPAG June 2004

frontier-transmission-pricing-advisory-groups.pdf | pdf | 535 KB | Last Changed: 21/12/2012 3:14pm

Half hourly SPD net benefit by investment

TPM-Net-Benefit-Data.zip | zip | 124 MB | Last Changed: 14/01/2013 12:55pm