Electricity Asset Valuation Approved

Thursday, March 28, 2002

Electricity Asset Valuation Approved By Commerce Commission

Powerco announced today that the Commerce Commission has approved their revised electricity asset valuation report.

Chief Executive Steven Boulton says, “The Commission was satisfied that the valuation report reflected a rigorous and accurate application of the Optimised Deprival Value (ODV) method as set out in the current ODV Handbook.

“In recent years Powerco has strengthened its investment in data capture and analysis to provide more accurate information about the number and location of assets like power poles and transformers. The additional information captured about the nature and condition of our assets is allowing us to make improved asset management and maintenance decisions,” said Mr Boulton.

In addition to this, the Commerce Commission has announced recently that it will be seeking input on the asset valuation methodology to be used in future. Powerco will be actively involved in providing input to this process.

The recently released Powerco Power Plan supports this process and identities Powerco’s blueprint for regulation, competition and sustainable performance in the electricity sector. The purpose of the Power Plan is to provide further input to developing an improved electricity industry environment delivering long-term value and a fairer deal for consumers.

A copy of the both the valuation report and Power Plan are available on Powerco’s website at www.powerco.co.nz.

Powerco is New Zealand’s third largest electricity and gas utility with around 205,000 customer connections. Powerco has networks in Taranaki, Wanganui, Manawatu, Wairarapa and Wellington with an asset base approaching $875m. Powerco is listed on the New Zealand Stock Exchange and has more than 16,000 shareholders.

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