TPM decisions

All decision documents, consultation papers, submissions and cross-submissions for past (non benefit-based investment) consultations are below. Click here for our benefit-based charges (BBC) Assumptions Book and all benefit-based investment (BBI) allocation decisions.

Decision on prudent discount and reassignment manuals

In November 2022 we consulted on our draft prudent discount and reassignment manuals. The new TPM contains structural and fundamental aspects of the new transmission pricing regime. The requirements for prudent discounts are in Part I and the requirements for reassignment are in Part G of the Electricity Authority’s TPM.

The prudent discount and reassignment manuals are not required to contain all the assumptions and detailed methodologies we may use to assess prudent discount and reassignment applications. The rationale for the content of each manual is explained in our consultation paper

After considering feedback, we made some changes and have now published:

 

The key feedback themes and our high-level responses, as well as the changes made, are outlined in the decision paper. A prudent discount information sheet is also now available on our About the TPM page. 

 

Consultation process

The consultation period began Wednesday, 09 November. Submissions were due 5pm, Wednesday 23 November. Cross-submissions were due by 5pm, Wednesday 30 November 2022. The consultation package included:

 

Submissions 

We received one submission on our consultation on draft prudent discount and reassignment manuals: 

23 Nov 2022: Northpower submission on the prudent discount and reassignment manuals consultation

 

Cross Submissions

We received two cross submissions on our consultation on draft prudent discount and reassignment manuals:

30 Nov 2022: Pioneer Energy cross submission on the prudent discount and reassignment manuals consultation

30 Nov 2022: Electra cross submission on the prudent discount and reassignment manuals consultation

 


More information 

The new transmission pricing methodology (TPM) contains the structural and fundamental aspects of the new transmission pricing regime. The TPM includes a role for secondary documentation.  The secondary documentation must include a prudent discount manual and may include a reassignment manual. Transpower must also publish application fees and application requirements for both prudent discounts and reassignments.  We have decided to include these in the manuals. 

Email [email protected] for further information.

Decision on the review of connection asset replacement cost

We have now published our decision on the first review and updates of the replacement costs we will use to calculate connection charges under the new TPM. We have decided to update all the connection asset replacement costs in line with estimates provided by Jacobs and as proposed in the consultation paper. We will use the updated replacement costs to calculate connection charges from the pricing year beginning April 2023.
 

Decision documents

Consultation process

The consultation period was 2 weeks commencing Thursday, 28 July 2022.  Submissions were due by 5pm Thursday, 11 August 2022.  This was followed by a 1-week period for cross-submissions. We received four submissions and two cross-submissions, which we considered in reaching our decision.

The TPM requires Transpower periodically review (including updating as appropriate) the connection asset replacement costs - before the start of the first pricing year under the new TPM and no later than five years after the first pricing year. Most of the connection asset replacement costs have not been updated for many years.

We commissioned Jacobs to provide independent expert advice on updated estimates of the connection asset replacement costs. Jacobs’ report confirms our expectation that most of the current connection asset replacement costs are under-valued and the relativity between them has changed.

The independent report was included as part of the consultation package, as is an excel spreadsheet of the current and proposed new connection asset replacement cost estimates (see below). We also published a more detailed overview of how connection charges are calculated and the role the connection asset replacement costs play, which we recommend reading.

Consultation documents

Submissions

Cross-submissions

Decision on the reclassification of Buller region assets

We have now published our decision on the reclassification of Buller region assets as connect assets, instead of interconnection assets, under clause 23 of the new TPM. We have decided to reclassify the following affected assets as connection assets from 1 April 2023:

  • The IGH-WPT B transmission line (110kV double circuit towers), including tower 90 but excluding tower 26 and the circuits between IGH and tower 26
  • The IGH-WMG A transmission line (110kV single circuit towers)
  • The WMG-WPT A transmission line (110kV single circuit poles)

Our decision document outlines why we consider the Affected Assets provide transmission services of a type and nature typically provided by connection assets, and do not provide material transmission services of a type and nature typically provided by interconnection assets.

Decision document

TPM Decision: Reclassification of Buller region assets (reissued 1 April)

 

Consultation process

The consultation period was 2 weeks and began Thursday, 23 June 2022.  Submissions were due by 5pm Thursday, 7 July 2022.  Cross-submissions were due by 5pm Thursday, 14 July 2022. We received one submission and one cross-submission, which we considered in reaching our decision.The consultation was on the proposal to reclassify certain assets in the Buller region as connection assets under clause 23 of the TPM. 

Consultation document

TPM Consultation reclassification of Buller region assets 23 June 2022.pdf [ pdf 865.32 KB ]

Submission

Buller Electricity submission on proposed reclassification of Buller region assets 7 July 22.pdf [ pdf 185.11 KB ]

Cross-submission

Buller Electricity Power Trust cross-submission on proposed reclassification of Buller region asset 14 July 22 [ pdf 94.79 KB ]

 

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