INFORMATION FOR DISCLOSURE
PURSUANT TO SECTION 57T OF THE COMMERCE ACT 1986
Information Disclosure by Aurora Energy Ltd
for the year ended 31 March 2006
Pursuant to the
ELECTRICITY INFORMATION DISCLOSURE REQUIREMENTS 2004
INDEX
Page
A Statutory Declaration in Respect of Statements and Information Supplied to the Commerce Commission (Requirement 36) 1
B Disclosure of Information Required in Financial Statements (Requirement 6 Schedule 1 Part 2) 2
C Directors' Certification of Financial Statements, Performance Measures, and Statistics Disclosed (Requirement 31 (1)) 13
D Certification by Auditor in Relation to Financial Statements (Requirement 30) 14
E Performance Measures: 16
Financial and Efficiency Performance Measures (Requirement 14)
Energy Delivery Efficiency Performance Measures (Requirement 20)
Reliability Performance Measures (Requirement 21)
F Derivation Table (Requirement 15) 20
G Annual Valuation Reconciliation Report (Requirement 16) 21
H Certification of Performance Measures by Auditor (Requirement 30(3)) 22
I Certification of Valuation Report of Line Owner (Requirement 31(5)) 23
Information Disclosure Disclaimer
Information disclosed in this document has been prepared solely for the purposes of the Electricity Information Disclosure Requirements 2004.
The Requirements require the information to be disclosed in the manner it is presented.
The information should not be used for any other purpose than that intended under the Requirements.
The information disclosed is for the lines business as described in the Requirements. There are other activities of the Company that are not required to be reported under the Requirements.
A STATUTORY DECLARATION IN RESPECT OF STATEMENTS AND INFORMATION SUPPLIED TO COMMERCE COMMISSION (REQUIREMENT 36)
I, Raymond Stuart Polson of 80 Browns Road, St Albans, Christchurch, being a director of Aurora Energy Ltd, solemnly and sincerely declare that having made all reasonable enquiry, to the best of my knowledge, the information attached to this declaration is a true copy of information made available to the public by Aurora Energy Ltd under the Commerce Commission's Electricity Information Disclosure Requirements 2004.
And I make this solemn declaration conscientiously believing the same to be true and by virtue of the Oaths and Declarations Act 1957.
Declared at Dunedin this 21 day of November 2006
Timothy John Hillerby
Electrical Worker
Dunedin.
Justice of the Peace (or Solicitor or other person authorised to take a statutory declaration)
B DISCLOSURE OF INFORMATION REQUIRED IN FINANCIAL STATEMENTS (REQUIREMENT 6 SCHEDULE 1 PART 2)
note* 2006 2005
$000 $000
STATEMENT OF FINANCIAL POSITION
1 Current Assets
(a) Cash and Bank Balances 15 80
(b) Short Term Investments - -
(c) Inventories - -
(d) Accounts Receivable 5,009 4,692
(e) Other Current Assets Not Listed in (a) to (d): 2,435 2,053
(f) Total Current Assets 7,459 6,825
2 Fixed Assets 3
(a) System fixed assets 287,352 238,409
(b) Customer billing and information system assets - -
(c) Motor vehicles 21 6
(d) Office equipment 4 4
(e) Land and buildings 12,248 12,347
(f) Capital works under construction 10,209 6,437
(g) Other fixed assets not listed in (a) to (f) - -
(h) Total fixed assets 309,834 257,203
3 Other Tangible Assets Not Listed Above - -
4 Total Tangible Assets 317,293 264,028
5 Total Intangible Assets
(a) Goodwill - -
(b) Other intangible assets not listed in (a) - -
(c) Total intangible - -
6 Total Assets 317,293 264,028
7 Current Liabilities
(a) Bank overdraft - -
(b) Short term borrowings - -
(c) Accounts payables and accruals 8,334 6,940
(d) Dividend provision - -
(e) Provision for income tax - -
(f) Other current liabilities not listed in (a) to (e) - -
(g) Total current liabilities 8,334 6,940
* The accompanying notes form an integral part of these financial statements.
note* 2006 2005
$000 $000
8 Non-Current Liabilities
(a) Payables and accruals - -
(b) Long-term debt 5 107,600 103,800
(c) Deferred taxation 4 30,954 36,349
(d) Other funding not listed in (a) or (b) - -
(e) Total non-current liabilities 138,554 140,149
9 Equity
(a) Shareholder's equity: 2
(i) Share capital 9,750 9,750
(ii) Retained earnings 2,763 (3,818)
(iii) Reserves 157,892 111,007
(iv) Total shareholder's equity 170,405 116,939
(b) Minority interests in subsidiaries - -
(c) Total equity 170,405 116,939
(d) Capital notes - -
(e) Total capital funds 170,405 116,939
10 Total Equity and Liabilities (7(g) + 8(e) + 9(e)) 317,293 264,028
STATEMENT OF FINANCIAL PERFORMANCE
11 Operating Revenue
(a) Revenue from line/access charges 57,714 55,620
(b) Revenue from "other" business (transfer payment) - -
(c) Interest on short-term investments, cash and bank balances - -
(d) AC loss-rental rebates 2,464 1,124
(e) Other revenue not listed in (a) to (d) 8,938 8,078
(f) Total operating revenue 69,116 64,822
12 Operating Expenditure
(a) Transmission charges 16,238 16,023
(b) Transfer payments to "other" business:
(i) asset maintenance 7,614 7,636
(ii) consumer disconnections and reconnections - -
(iii) meter data - -
(iv) consumer-based load control - -
(v) royalty and patent expenses - -
(vi) avoided transmission charges for own generation - -
(vii) other goods and services 3,686 3,500
(viii) total transfer payment to other business 11,300 11,136
* The accompanying notes form an integral part of these financial statements.
note* 2006 2005
$000 $000
(c) Payments to non-related entities for:
(i) asset maintenance - -
(ii) consumer disconnections and reconnections - -
(iii) meter data - -
(iv) consumer-based load control - -
(v) royalty and patent expenses - -
(vi) total of specified expenses to non-related parties - -
(d) Employee salaries, wages and redundancies - -
(e) Consumer billing and information system expense - -
(f) Depreciation on:
(i) system fixed assets 9,619 9,642
(ii) other assets not listed in (i) 1 1
(iii) total depreciation expense 9,620 9,643
(g) Amortisation of:
(i) goodwill - -
(ii) other intangibles - -
(iii) total amortisation of intangibles - -
(h) Corporate and administration 1,134 1,257
(i) Human resource expenses - -
(j) Marketing and advertising 30 43
(k) Merger and acquisition expenses - -
(l) Take-over defence expenses - -
(m) Research and development expenses - -
(n) Consultancy and legal expenses 142 114
(o) Donations - -
(p) Directors' fees 112 89
(q) Auditor's fees:
(i) audit fees to principal auditor 38 27
(ii) audit fees to other auditors 14 38
(iii) fees paid for other services provided by principal and other auditors - -
(iv) total auditor's fees 52 65
(r) Cost of offering credit:
(i) bad debts written off - -
(ii) increase in estimated doubtful debts - -
(iii) total cost of offering credit - -
(s) Local Authority rates expense 427 236
(t) AC loss rental rebates paid to retailers 2,464 1,124
(u) Rebates to consumers due to ownership interest - -
(v) Subvention payments 1,430 1,172
(w) Unusual expenses - -
(x) Other expenditure not listed in (a) to (w) - -
13 Total Operating Expenditure (sum (12(a) to 12(x)) 42,949 40,902
* The accompanying notes form an integral part of these financial statements.
note* 2006 2005
$000 $000
14 Operating Surplus Before Interest and Income Tax 26,167 23,920
15 Interest Expense:
(a) Interest expense on borrowings 7,448 7,324
(b) Financing charges relating to finance leases - -
(c) Other interest expense not listed in (a) or (b) - -
(d) Total interest expense 7,448 7,324
16 Operating Surplus Before Income Tax 18,719 16,596
17 Income Tax 1 (2,575) 8,136
18 Net Surplus After Tax 21,294 8,460
STATEMENT OF MOVEMENTS IN EQUITY
Equity at beginning of year 116,939 115,785
Surplus and revaluations
net profit after tax for period 21,294 8,460
revaluations 46,885 -
Total recognised revenues and expenses 68,179 8,460
Other movements
dividend distributions (14,713) (7,306)
Capital transferred -
(14,713) (7,306)
Equity at end of year 170,405 116,939
STATEMENT OF CASH FLOWS
Cashflows From Operating Activities
Cash was provided from:
Receipts from customers 68,799 64,957
68,799 64,957
Cash was disbursed to:
Payments to suppliers and employees 33,682 31,227
Income tax paid 3,202 2,450
Interest paid 7,448 7,324
44,332 41,001
Net cash inflows/(outflows) from operating activities 6 24,467 23,956
* The accompanying notes form an integral part of these financial statements.
2006 2005
$000 $000
Cashflows From Investing Activities
Cash was provided from:
Sale of assets - 50
Cash was disbursed to:
Purchase of fixed assets 13,619 12,295
Net cash inflows/(outflows) from investing activities (13,619) (12,245)
Cashflows From Financing Activities
Cash was provided from:
Proceeds of borrowings 3,800 -
Proceeds from Capital transferred - -
3,800 -
Cash was disbursed to:
Repayment of term liabilities - 4,400
Dividend distributions 14,713 7,306
14,713 11,706
Net cash inflows/(outflows) from financing activities (10,913) (11,706)
Net increase/(decrease) in cash held (65) 5
Cash at beginning of year 80 75
Cash at End of Year 15 80
STATEMENT OF ACCOUNTING POLICIES
SPECIAL PURPOSE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with the requirements of the Electricity Information Disclosure Requirements 2004, and relate to:
§ The Company's Line Business incorporating the conveyance of electricity, ownership of works for conveyance of electricity and provision of line function services.
SPECIFIC ACCOUNTING POLICIES
In accordance with clause 6 of the Requirements, the methodology adopted to allocate costs, revenues, assets and liabilities among the businesses is in accordance with the Electricity Information Disclosure Handbook.
The particular accounting policies adopted in the preparation of these financial statements are:
(a) Revenue
Revenue shown in the Statement of Financial Performance for the Line Business relates to the provision of electricity distribution.
(b) Expenditure
Expenditure shown in the Statement of Financial Performance is derived as follows:
Line Business
§ Transmission charges, employee remuneration, administration and operating expenses are directly attributable to the Line Business.
§ Maintenance and operation is provided in accordance with a 10 year Asset Management Services Contract with DELTA Utility Services Ltd.
§ Other costs are allocated in accordance with the avoidable cost allocation methodology.
(c) Dividends
Dividends have been calculated in accordance with the Company's dividend policy.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the Lines Business.
(e) Current Assets
Accounts receivable are those directly related to the Lines Business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
On 30 April 2005, Aurora Energy revalued its electricity distribution network assets, excluding land and buildings, to the fair market value determined by the chartered accounting firm of KPMG. In the opinion of the Directors and their professional advisors, this best represents the fair value of those assets.
The increment in value resulting from this is credited to the revaluation reserves of the Company after adjusting for depreciation previously claimed.
Electricity network distribution additions since 1 May 2005 are carried at cost less depreciation.
Electricity Distribution Land and Buildings
Land and buildings associated with the electricity distribution network were revalued on 1 July 2001 to the fair market valuation as determined by the chartered accounting firm of KPMG. These revalued assets are carried at their revalued amount less accumulated depreciation.
Additions to land and buildings associated with electricity distribution assets since 1 May 2001, are carried at cost less accumulated depreciation.
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset, and any expenditure which results in a significant improvement to the original function of an existing asset. Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred operating the Company.
(h) Depreciation
Fixed assets are depreciated on the basis of valuation or cost price less estimated residual value on a straight line basis over their estimated useful life. Rates used are:
Buildings 1 - 2.5%
Plant and equipment 2.5 - 15%
Network assets 1 - 15%
Furniture and fittings 10%
Computer equipment 20%
Motor vehicles 5 - 30%
(i) Taxation
Income tax expense is charged in the statement of financial performance in respect of current year's earnings after allowing for permanent differences. Deferred taxation is determined on a comprehensive basis using the liability method. Deferred tax assets attributable to timing differences or income tax losses are only recognised where there is virtual certainty of realisation.
(j) Goods and Services Tax
These accounts are prepared exclusive of GST except for accounts receivable and accounts payable which are GST inclusive.
(k) Financial Instruments
The Lines Business is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, short-term deposits, debtors, creditors and loans. All financial instruments are recognised in the Statement of Financial Position. All revenues and expenses in relation to financial instruments are recognised in the Statement of Financial Performance.
(l) Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.
2006 2005
$000 $000
NOTES TO THE FINANCIAL STATEMENTS
Note 1 : Taxation
Net profit before tax 18,719 16,596
Permanent difference 826 8,059
19,545 24,655
Tax at 33 cents in the dollar 6,450 8,136
Under/(over) tax provision prior years (9,025) -
Income tax charge (2,575) 8,136
Income tax charge comprises:
Current taxation 2,820 2,336
Deferred taxation (5,395) 5,800
(2,575) 8,136
Note 2 : Shareholders Funds
Issued capital
Balance at beginning of year 9,750 9,750
Transferred During Year - -
Balance at end of year 9,750 9,750
Reserves
Asset revaluation reserve
Balance at beginning of year 111,007 111,460
Transferred to retained earnings on disposal of assets - (453)
Net revaluation 46,885 -
Balance at end of year 157,892 111,007
Retained Earnings
Balance at beginning of year (3,818) (5,425)
Net surplus for year 21,294 8,460
Dividend distributions (14,713) (7,306)
Transfer from Asset Revaluation Reserve - 453
2,763 (3,818)
Total Shareholders Funds 170,405 116,939
Note 3 : Fixed Assets
2005 AS AT 31 MARCH 2006
BookValue$000 Cost orRevaluation$000 AccumulatedDepreciation$000 BookValue$000
Line Business
236,925 Network 295,172 10,130 285,042
1,220 Plant 2,029 170 1,859
264 Load Control Equipment 512 61 451
238,409 Subtotal 297,713 10,361 287,352
9,606 Buildings 9,980 473 9,507
2,741 Land 2,741 - 2,741
6 Vehicles 22 1 21
250,762 Subtotal 310,456 10,835 299,621
4 Furniture 5 1 4
6,437 Capital Work in Progress 10,209 - 10,209
257,203 320,670 10,836 309,834
2006 2005
$000 $000
Capital work in progress comprises:
Distribution substations 1,092 721
Low voltage reticulation 3,185 2,278
Distribution lines and cables 2,348 1,798
Distribution transformers 2,533 1,403
Other 163 108
Zone substations 419 129
Transmission reticulation 469 -
10,209 6,437
Note 4 : Deferred Tax Liability
Balance at beginning of year 36,349 30,549
Movement from income tax charge (5,395) 5,800
Balance at end of year 30,954 36,349
Note 5 : Term Debt
Balance at beginning of year 103,800 108,200
Current year borrowing 3,800 -
Current year repayment - (4,400)
Balance at end of the year 107,600 103,800
The Line Business has a borrowing facility allowing it to draw funds up to $110 million. At year-end $107.6 million had been drawn on the facility. The weighted average interest rate on the advances at 31 March 2006 was 7.5%. The repayment period on the advances is between 2 and 10 years as follows:
1 - 2 years -
2 - 5 years -
5 years and greater 107,600
107,600
2006 2005
$000 $000
Note 6 : Reconciliation of Net Surplus from Operating Activities
Net profit after tax 21,294 8,460
Items not involving cashflows depreciation 9,620 9,643
Impact of changes in working capital items
(increase)/decrease in accounts receivable (317) 135
(increase)/decrease in inventories - -
(increase)/decrease in tax refund (382) (114)
increase/(decrease) in taxation payable - -
increase/(decrease) in accounts payable 1,394 1,637
increase/(decrease) in term liabilities - -
gain on sale of assets - -
increase/(decrease) in deferred tax liability (5,395) 5,800
capital creditors included in accounts payable (1,747) (1,605)
Net cash inflows/(outflows) from operating activities 24,467 23,956
Note 7 : Commitments
As 31 March 2006, capital expenditure contracted for was $4,282,918 (2005 : $900,079).
Note 8 : Contingent Liabilities
There were no contingent liabilities as at 31 March 2006 (2005 : nil).
Note 9 : Financial Instruments
Financial instruments which potentially subject the Lines Business to credit risk principally consist of cash and accounts receivable.
Credit Risk
Contracts have been entered into with various counter-parties having such credit ratings and in accordance with dollar limits as set by the board of directors.
Collateral
The Lines Business does not generally require collateral or other security to support service contracts. While the Lines Business may be subject to credit losses up to the notional value of the services or goods supplied in the event of non-performance by counter-parties, it does not expect such losses to occur.
Concentration of Credit Risk
Financial instruments which potentially subject the Lines Business to concentrations of credit risk principally consist of cash and accounts receivable.
The Lines Business places its cash and short-term investments with high credit quality financial institutions and sovereign bodies and limits the amount of credit exposure to any one financial institution.
The Lines Business has several large customers for which no collateral is required. These debtors are subject to normal on-going credit control procedures.
Note 10 : Disclosure of Information Relating to Transactions Between Persons in a Prescribed Business Relationship and Related Parties (Requirement 8)
During the Year the Line Business: 2006$000 2005$000
Purchased the following services from DELTA Utility Services Ltd:
Asset maintenance 7,614 7,636
Network management, operation and other 3,686 3,500
Consumer reconnections and disconnections -
Total 11,300 11,136
Network capital work and development
distribution substations 978 982
low voltage reticulation 2,490 3,100
distribution lines and cables 1,882 2,447
distribution transformers 1,704 1,910
zone substations 357 176
other plant and equipment 87 147
sub-transmission reticulation 223 -
Total 7,721 8,762
Network operation and maintenance is charged in accordance with a Fixed Term Contract. Capital work is subject to open tender, established market rates, or competitive pricing.
At balance date, $6,826,500 was owed to DELTA Utility Services Ltd (2005 - $5,492,945). Of this, $1,601,524 was due and payable on 20 April, while $5,224,976 relating to capital work-in-progress was payable at a later date.
Other Line Business Related Parties:
The Lines Business has a borrowing facility with Dunedin City Treasury Ltd. During the year it paid $7.448 million interest (2005 - $7.324 million) and as at 31 March 2006 $107.6 million of loan monies were outstanding (2005 : $103.8 million).
During the year, the Lines Business also undertook the following transactions with Dunedin City Holdings Ltd:
Purchase of subvention expense $ 1.43 million (2005 : $1.17 million)
Dividends paid $14.71 million (2005 : $7.31 million)
As at 31 March 2006, $1.193 million of subvention was outstanding (2005 : $0.825 million).
No related party transactions took place at a nominal or nil value. No related party debts have been written-off or forgiven during the period.
During the year, the Lines Business also undertook the following transactions with Dunedin City Council:
Rates paid $ 0.275 million
Under-grounding of street lights $ 0.008 million
C DIRECTORS' CERTIFICATION OF FINANCIAL STATEMENTS, PERFORMANCE MEASURES AND STATISTICS DISCLOSED (REQUIREMENT 31(1))
We, Raymond Stuart Polson and Ross Douglas Liddell, directors of Aurora Energy Ltd, certify that, having made all reasonable enquiry, to the best of our knowledge:
(a) the attached audited financial statements of Aurora Energy Ltd prepared for the purposes of requirement 6 of the Commerce Commission's Electricity Information Disclosure Requirements 2004, comply with those Requirements; and
(b) the attached information, being the derivation table, financial performance measures, efficiency performance measures, energy delivery efficiency performance measures, statistics, and reliability performance measures in relation to Aurora Energy Ltd, and having been prepared for the purposes of requirements 14, 15, 20 and 21 of the Electricity Information Disclosure Requirements 2004, comply with those Requirements.
The valuations on which those financial performance measures are based are as at 31 March 2006.
Raymond Stuart Polson
Ross Douglas Liddell
21 November 2006
AUDIT NEW ZEALAND
REPORT OF THE AUDITOR-GENERAL
TO THE READERS OF THE FINANCIAL STATEMENTS OF
AURORA ENERGY LIMITED
FOR THE YEAR ENDED 31 MARCH 2006
We have audited the financial statements of Aurora Energy Limited on pages 2 to 12. The financial statements provide information about the past financial performance of Aurora Energy Limited and its financial position as at 31 March 2006. This information is stated in accordance with the accounting policies set out on pages 6 to 8.
Directors' Responsibilities
The Commerce Commission's Electricity Information Disclosure Requirements 2004 made under section 57T of the Commerce Act 1986 require the Directors to prepare financial statements which give a true and fair view of the financial position of Aurora Energy Limited as at 31 March 2006, and the results of its operations and cash flows for the year ended on that date.
Auditor's Responsibilities
Section 15 of the Public Audit Act 2001 and Requirement 30 of the Electricity Information Disclosure Requirements 2004 require the Auditor-General to audit the financial statements. It is the responsibility of the Auditor-General to express an independent opinion on the financial statements and report that opinion to you.
The Auditor-General has appointed Bede Kearney of Audit New Zealand to undertake the audit.
Basis of Opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing:
§ the significant estimates and judgements made by the Directors in the preparation of the financial statements; and
§ whether the accounting policies are appropriate to Aurora Energy Limited's circumstances, consistently applied and adequately disclosed.
We conducted our audit in accordance with the Auditing Standards published by the Auditor-General, which incorporate the Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements.
Other than in our capacity as auditor acting on behalf of the Auditor-General, we have no relationship with or interests in Aurora Energy Limited.
Unqualified Opinion
We have obtained all the information and explanations we have required.
In our opinion:
§ proper accounting records have been maintained by Aurora Energy Limited as far as appears from our examination of those records; and
§ the financial statements of Aurora Energy Limited on pages 2 to 12:
(a) comply with generally accepted accounting practice in New Zealand; and
(b) give a true and fair view of Aurora Energy Limited's financial position as at 31 March 2006 and the results of its operations and cash flows for the year ended on that date; and
(c) comply with the Electricity Information Disclosure Requirements 2004.
Our audit was completed on 21 November 2006 and our unqualified opinion is expressed as at that date.
Bede Kearney
Audit New Zealand
On behalf of the Auditor-General
Christchurch, New Zealand
E PERFORMANCE MEASURES
2006 2005 2004 2003
Disclosures of financial performance measures and efficiency performance measures under requirement 14 of the Electricity Information Disclosure Requirements 2004
1 Financial performance measures
(a) Return on funds 15.2% 13.5% 14.9% 15.5%
(b) Return on equity 38.7% 18.2% 28.9% 46.5%
(c) Return on investment 15.0% 8.1% 31.6% 9.3%
2 Efficiency performance measures
(a) Direct line costs per kilometre $2,108 $2,126 $2,131 $2,159
(b) Indirect line costs per electricity consumer $27.84 $26.63 $31.32 $30.41
Disclosure of financial performance measures and efficiency performance measures under requirement 20 of the Electricity Information Disclosure Requirements 2004
1 Energy delivery efficiency performance measures
(a) Load factor 57.2% 57.5% 58.7% 54.6%
(b) Loss ratio 5.8% 6.1% 6.3% 6.2%
Note - the loss ratio is deduced from reports of energy injected by others and reports of retail sales by others. Aurora Energy is unable to audit these reports and has little confidence in their accuracy. Accordingly the ratio should be treated with great caution.
(c) Capacity utilisation 33.6% 34.2% 32.5% 36.7%
2 Statistics
(a) System length
Circuit kilometres 66 kV 109 109 54 N/A
Circuit kilometres 33 kV 480 479 535 591
Circuit kilometres 11 kV 2,231 2,181 2,115 2,029
Circuit kilometres 6.6 kV 774 773 798 815
Circuit kilometres 400 V 1,654 1,603 1,523 1,436
Circuit kilometres 600 V DC 4 4 4 4
Total 5,252 5,149 5,029 4,875
(b) System length - overhead
Circuit kilometres 66 kV 109 109 54 N/A
Circuit kilometres 33 kV 390 390 447 503
Circuit kilometres 11 kV 1,823 1,818 1,796 1,760
Circuit kilometres 6.6 kV 540 541 562 583
Circuit kilometres 400 V 1,062 1,063 1,035 998
Circuit kilometres 600 V DC 1 1 1 1
Total Overhead 3,925 3,922 3,895 3,845
2006 2005 2004 2003
(c) System length - underground
Circuit kilometres 66 kV 0.3 N/A N/A N/A
Circuit kilometres 33 kV 90 89 88 88
Circuit kilometres 11 kV 407 363 320 269
Circuit kilometres 6.6 kV 234 232 235 232
Circuit kilometres 400 V 593 540 487 439
Circuit kilometres 600 V DC 3 3 3 3
Total Underground 1,327 1,228 1,133 1,031
(d) Transformer capacity (kVA) 799,866 779,835 758,211 740,166
(e) Maximum demand (kW) 268,976 266,859 246,190 271,850
(f) Total electricity supplied before losses from the system (kWh) 1,347,469,425 1,344,545,511 1,269,877,041 1,300,088,384
(g) Electricity conveyed after losses for each party (kWh)
Party 1 593,893,724 579,997,179 559,134,598 549,017,685
Party 2 363,120,171 386,155,577 372,571,922 404,561,670
Party 3 235,195,791 223,143,337 214,527,945 198,173,212
Party 4 26,362,592 33,675,391 15,450,111 6,669,136
Party 5 20,955,620 20,743,856 20,742,113 28,311,598
Party 6 26,253,429 16,588,984 4,623,330 29,942,765
Party 7 2,774,737 1,998,497 2,302,073 2,619,514
Party 8 708,772 321,934 36,594 -
Party 9 - - - 9,072
(h) Total consumers 76,400 75,117 73,972 72,794
Disclosure of reliability performance measures under requirement 21 of the Electricity Information Disclosure Requirements 2004
1 Total number of interruptions
Class A - planned by Transpower 0 0 0 0
Class B - planned by line owners 258 269 293 341
Class C - unplanned by line owners 492 445 453 464
Class D - unplanned by Transpower 1 0 1 3
Class E - unplanned by embedded generation 0 0 0 1
Class F - unplanned by generation on other networks 0 0 0 0
Class G - unplanned by other line owner 0 0 0 0
Class H - planned by another line owner 0 0 0 0
Class I - any other loss of supply 0 0 0 0
2 No of interruption targets for next financial year
Class B - planned by line owners 300 300 300 250
Class C - unplanned by line owners 480 450 450 430
3 Average no of interruption targets for next 5 years
Class B - planned by line owners 280 280 280 230
Class C - unplanned by line owners 470 440 420 390
4 Proportion of Class C interruptions not restored within
3 hours 13.20% 16.63% 16.56% 13.7%
24 hours 0.0% 0.0% 0.9% 0.2%
2006 2005 2004 2003
5 (a) and (d) The total number of faults per 100 circuit kilometres of prescribed voltage electric line
66 kV 5.5 1.8 1.8 N/A
33 kV 7.1 5.4 3.4 4.4
11 kV 14.0 12.4 12.6 12.2
6.6 kV 5.8 7.0 6.0 6.9
Total 11.1 10.0 9.5 9.6
5 (b) and (d) Target number of faults per 100 circuit kilometres for next financial year
66 kV 3.0 3.0 2.0 N/A
33 kV 6.0 5.0 3.0 2.5
11 kV 12.5 12.5 12.5 12.0
6.6 kV 7.0 7.0 6.0 6.0
Total 10.6 10.0 9.4 8.9
5 (c) and (d) Average target number of faults per 100 circuit kilometres for next 5 years
66 kV 3.0 3.0 2.0
33 kV 6.0 5.0 3.0 2.5
11 kV 12.5 12.5 12.5 12.0
6.6 kV 7.0 7.0 6.0 6.0
Total 10.6 10.0 9.4 8.9
6 The total number of faults per 100 circuit kilometres of underground prescribed voltage electric line
33 kV 0.0 3.4 3.4 1.1
11 kV 2.9 4.4 5.0 5.2
6.6 kV 0.4 5.6 2.5 1.7
Total 1.8 4.7 3.9 3.2
7 The total number of faults per 100 circuit kilometres of overhead prescribed voltage electric line
66 kV 5.5 1.8 1.8 N/A
33 kV 8.7 5.9 3.4 5.0
11 kV 16.5 14.0 13.9 13.4
6.6 kV 8.1 7.6 7.5 8.9
Total 13.5 11.2 10.8 11.0
8 The SAIDI for the total number of interruptions (minutes) 96.5 80.5 97.3 101.3
9 SAIDI target for next financial year (minutes)
Class B - planned by line owners 15.0 15.0 15.0 15.0
Class C - unplanned by line owners 75.0 75.0 75.0 75.0
10 Average SAIDI targets for next 5 years (minutes)
Class B - planned by line owners 15.0 15.0 15.0 15.0
Class C - unplanned by line owners 75.0 75.0 75.0 75.0
2006 2005 2004 2003
11 The SAIDI for the total number of interruptions within each interruption class (minutes)
Class A - planned by Transpower - - - -
Class B - planned by line owners 11.7 7.3 16.3 20.5
Class C - unplanned by line owners 70.8 73.2 80.0 68.6
Class D - unplanned by Transpower 14.0 - 1.0 12.1
Class E - unplanned by embedded generation - - - 0.1
Class F - unplanned by generation on other net-works - - - -
Class G - unplanned by other line owner - - - -
Class H - planned by another line owner - - - -
Class I - any other loss of supply - - - -
12 The SAIFI for the total number of interruptions 1.72 1.46 1.72 2.08
13 SAIFI target for next financial year
Class B - planned by line owners 0.13 0.13 0.13 0.13
Class C - unplanned by line owners 1.36 1.36 1.36 1.07
14 Average SAIFI targets for next 5 years
Class B - planned by line owners 0.13 0.13 0.13 0.13
Class C - unplanned by line owners 1.36 1.36 1.36 1.07
15 The SAIFI for the total number of interruptions within each interruption class
Class A - planned by Transpower - - - -
Class B - planned by line owners 0.09 0.07 0.14 0.15
Class C - unplanned by line owners 1.40 1.39 1.47 1.36
Class D - unplanned by Transpower 0.23 - 0.11 0.57
Class E - unplanned by embedded generation - - - -
Class F - unplanned by generation on other networks - - - -
Class G - unplanned by other line owner - -
Class H - planned by another line owner - -
Class I - any other loss of supply - -
16 The CAIDI for the total number of interruptions 56.10 55.20 56.60 48.70
17 CAIDI target for next financial year
Class B - planned by line owners 120.0 120.0 120.0 120.0
Class C - unplanned by line owners 55.0 55.0 55.0 70.0
18 Average CAIDI targets for next 5 years
Class B - planned by line owners 120.0 120.0 120.0 120.0
Class C - unplanned by line owners 55.0 55.0 55.0 70.0
19 The CAIDI for the total number of interruptions within each interruption class
Class A - planned by Transpower - - - -
Class B - planned by line owners 135.7 100.2 119.9 134.9
Class C - unplanned by line owners 50.5 52.8 54.5 50.6
Class D - unplanned by Transpower 60.0 - 8.8 21.3
Class E - unplanned by embedded generation - - - 16.0
Class F - unplanned by generation on other networks - - - -
Class G - unplanned by other line owner - - - -
Class H - planned by another line owner - - - -
Class I - any other loss of supply - - - -
F SCHEDULE 1 - PART 7FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS
Derivation Table Input andCalculations SymbolinFormula ROF ROE ROI
Operating surplus before interest and income tax from financial statements 26,167
Operating surplus before interest and income tax adjusted pursuant to Requirement 18 (OSBIIT) 26,167
Interest on cash, bank balances, and short-term investments (ISTI) 0
OSBIIT minus ISTI 26,167 a 26,167 26,167
Net surplus after tax from financial statements 21,294
Net surplus after tax adjusted pursuant to Requirement 18 (NSAT) 21,294 n 21,294
Amortisation of goodwill and amortisation of other intangibles 0 g add 0 add 0 add 0
Subvention payment 1,430 s add 1,430 add 1,430 add 1,430
Depreciation of SFA at BV (x) 9,619
Depreciation of SFA at ODV (y) 6,123
ODV depreciation adjustment 3,496 d add 3,496 add 3,496 add 3,496
Subvention payment tax adjustment 472 s*t deduct 472 deduct 472
Interest tax shield 2,458 q deduct 2,458
Revaluations 0 r Add 0
Income tax (2,575) p Deduct (2,575)
Numerator 31,093 25,748 30,738
OSBIITADJ = a + g + s + d NSATADJ = n + g + s - s*t + d OSBIITADJ = a + g - q + r + s + d - p - s*t
Fixed assets at end of previous financial year (FA0) 257,203
Fixed assets at end of current financial year (FA1) 309,834
Adjusted net working capital at end of previous financial year (ANWC0) (195)
Adjusted net working capital at end of current financial year (ANWC1) (890)
Average total funds employed (ATFE) 282,976 c 282,976 282,976
(or Requirement 32 time-weighted average)
Total equity at end of previous financial year (TE0) 116,939
Total equity at end of current financial year (TE1) 170,405
Average total equity 143,672 k 143,672
(or Requirement 32 time-weighted average)
WUC at end of previous financial year (WUC0) 6,437
WUC at end of current financial year (WUC1) 10,209
Average total works under construction 8,323 e deduct 8,323 deduct 8,323 deduct 8,323
(or Requirement 32 time-weighted average)
Revaluations 0 r
Half of revaluations 0 r/2 deduct 0
Intangible assets at end of previous financial year (1A0) 0
Intangible assets at end of current financial year (1A1) 0
Average total intangible asset 0 m deduct 0
(or Requirement 32 time-weighted average)
Subvention payment at end of previous financial year (S0) 1,172
Subvention payment at end of current financial year (S1) 1,430
Subvention payment tax adjustment at end of previous financial year 387
Subvention payment tax adjustment at end of current financial year 472
Average subvention payment and related tax adjustment 872 v add 872
System fixed assets at end of previous financial year at book value (SFAbv0) 250,762
System fixed assets at end of current financial year at book value (SFAbv1) 299,621
Average value of system fixed assets at book value 275,192 f deduct 275,192 deduct 275,192 deduct 275,192
(or Requirement 32 time-weighted average)
System fixed assets at year beginning at ODV value (SFA odv0) 203,713
System fixed assets at end of current financial year at ODV value (SFAodv1) 207,286
Average value of system fixed assets at ODV value 205,500 h add 205,500 add 205,500 add 205,500
(or Requirement 32 time-weighted average)
Denominator 204,961 66,529 204,961
ATFEADJ = c - e - f + h Ave TEADJ = k - e - m + v - f + h ATFEADJ = c - e - ½r - f + h
Financial Performance Measure: 15.2 38.7 15.0
ROF = OSBIITADJ/ATFEADJ x 100 ROE = NSATADJ/ATEADJ x 100 ROI = OSBIITADJ/ATFEADJ x 100
t = maximum statutory income tax rate applying to corporate entities subscript '0' = end of the previous financial year subscript '1' = end of the current financial year
ROF = return on funds ROE = return on equity ROI = return on investment bv = book value ave = average odv = optimised deprival valuation
G SCHEDULE 1 PART 8ANNUAL VALUATION RECONCILIATION REPORT
2006 $000
System Fixed Assets at ODV-End of Previous Financial Year 206,632
Less adjustment to restate prior year system fixed assets at ODV (2,919)
_______
System fixed assets at year beginning at ODV 203,713
Add system fixed assets acquired during the year at ODV 9,802
Less system fixed assets disposed of during the year at ODV (106)
Less depreciation of system fixed assets at ODV (6,123)
Add revaluations of system fixed assets -
_______
System Fixed Assets at End of Current Financial Year at ODV 207,286
_______
AUDIT NEW ZEALAND
AUDITOR-GENERAL'S OPINION ON THE PERFORMANCE MEASURES OF AURORA ENERGY LIMITED
We have examined the information on pages 16 and 20 to 21, being:
(a) the derivation table in requirement 15;
(b) the annual ODV reconciliation report in requirement 16;
(c) the financial performance measures in clause 1 of Part 3 of Schedule 1; and
(d) the financial components of the efficiency performance measures in clause 2 of Part 3 of Schedule 1,
that were prepared by Aurora Energy Limited and dated 21 November 2006 for the purposes of the Commerce Commission's Electricity Information Disclosure Requirements 2004.
In our opinion, having made all reasonable enquiry, and to the best of our knowledge, that information has been prepared in accordance with those Electricity Information Disclosure Requirements 2004.
Bede Kearney
Audit New Zealand
On behalf of the Auditor-General
Christchurch, New Zealand
21 November 2006
I CERTIFICATION OF VALUATION REPORT OF LINE OWNER
We, Raymond Stuart Polson and Ross Douglas Liddell, directors of Aurora Energy Limited, certify that, having made all reasonable enquiry, to the best of our knowledge:
(a) the attached valuation report of Aurora Energy Limited prepared for the purposes of requirement 19 of the Commerce Commission's Electricity Information Disclosure Requirements 2004, complies with those Requirements; and
(b) the replacement cost of the line business fixed assets of Aurora Energy Limited is $423,524,559; and
(c) the depreciated replacement cost of the line business system fixed assets of Aurora Energy Limited is $211,279,666; and
(d) the optimised depreciated replacement cost of the line business system fixed assets of Aurora Energy Limited is $207,286,001; and
(e) the optimised deprival valuation of the line business system fixed assets of Aurora Energy Limited is $207,286,001; and
(f) the values in (b) through to (e) have been prepared in accordance with the ODV Handbook (as defined in the Electricity Information Disclosure Requirements 2004).
These valuations are as at 31 March 2006.
Raymond Stuart Polson
Ross Douglas Liddell
21 November 2006