The Commerce Commission (“Commission”) gives notice under section 52Q(5)(b) of the Commerce Act 1986 that it has amended the Transpower Individual Price-Quality Path Determination 2015  NZCC 35 (RCP2 IPP Determination).
The amendments are set out in the Transpower Individual Price-Quality Path Amendment Determination 2017 (No.2)  NZCC 29.
The amendments modify Transpower New Zealand Limited’s (“Transpower”) pilot asset health grid output measures and asset health pilot reporting requirements in the RCP2 IPP Determination by:
Replacing the existing wording in clause 17.2 with new wording.
Replacing the existing wording in clause 28.1 with new wording.
Inserting new clauses 28.4 and 28.5.
The updated measures and reporting requirements include asset health index scores and reporting requirements in relation to five asset classes: Tower Foundations – Grillage, Tower Protective Coating, Insulators, Outdoor Circuit Breakers and Power Transformers.
The new pilot asset health grid output measures are the forecast percentages and the actual percentages of the asset population with scores > eight determined in accordance with the specified asset health index. The new reporting requirements include the completion of the following tables together with the required explanatory notes:
Table 5.2: Report on pilot asset health grid output measures and materiality thresholds.
Table: 5.3 Report on asset health scores.
Table 5.4: Report on forecast asset health scores assuming no asset replacement or asset refurbishment expenditure.
Table 5.5: Report on forecasts of asset replacement & asset refurbishment expenditure rates and total expenditure for RCP2.
The amendments are intended to give Transpower greater flexibility and to allow it to report on its asset health in a more meaningful way, reflecting the evolving state of its asset health models.
A copy of the amendment determination is available on the Commission’s website at www.comcom.govt.nz/regulated-industries/electricity/electricity-transmission/transpower-individual-price-quality-regulation/transpowers-price-quality-path-from-2015-to-2020 and for inspection free of charge, or for purchase at a reasonable price, at the Commission’s office at 44 The Terrace, Wellington (during ordinary office hours).
Dated at Wellington this 13th day of December 2017.