Capacitor trailer provides
low cost relocatable network control.
(section 11). This section outlines the planned
work on the network by region.
One of the highlights for the network group was
upgrading supply into the Tuaropaki Energy Park
for the benefit of the local community and the
Miraka dairy plant and having it up and running
and improving the system for the customers for
the 2011 dairy season. In 2000 the Tuaropaki Trust
established a geothermal generation plant on their
land with a future vision to develop an energy park
utilising the steam to provide income and wealth
for the area. TLC partnered with the Trust at this
time to take direct supply from this plant and other
generators in the energy park to be able to provide
connections at a lower cost than that available
through some Transpower grid connections.
The initial industry in the area was a major export
glasshouse operation. In 2010 the park was
substantially expanded to include a dairy plant
owned partly by the Tuaropaki Trust, Wairapapa
Moana Trust and other investors. TLC again
partnered with the Trust to install reticulation to
the plant that gives it a competitive advantage
compared to other plants connected to the
transmission network. The network bypasses
Transpower connections and supply costs are
thereby minimised further. Tuaropaki is able
to package electricity and steam to make the
plant even more internationally competitive.
The establishment of the plant has resulted in an
increase in dairying activity in the area and this
includes increased irrigation. This is having further
positive flow on effects into the local community.
Another successful project has been the Ohakune
customer consultation and network planning
project. We have made excellent progress with
Transpower coming to the party with a replacement
20MW substation under a term-of-life contract as
opposed to an investment contract. This has meant
that price increases for the Ohakune community
will be minimised. As this upgrade is scheduled for
2014/15 we are currently working through options
for the interim period with the community.
We continue to see the effect of load charging on
our network. The peak loads are more manageable
and one of the best indications of this is the
relative size of the Transpower increases. Because
our charges are cost reflective customers are
responding by reducing load that they do not
want to pay for. This is reducing our CAPEX and
our payments to Transpower. This means that
our charges are already lower than they would
otherwise have been, and this gap will increase.
Delayed CAPEX is valued at $1 million per annum
(Asset Management Plan Section Reference 5.5.1).
Experience would suggest that customers are
moving to reduce their load in advance of having
a Time of Use meter installed, lowering peak loads
to those they can afford. Metered holiday home
loads for example have fallen on average to those
of an average home. We anticipate that the new
meters will assist us even further in identification
and control of load. This in turn will assist network
8
A n n u a l R e p o r t
2 0 1 2