Northpower acquires Transpower asset

Northpower Limited Media Statement
Date: 4 April, 2013
Subject: Northpower acquires Transpower asset

Northpower has taken ownership of Transpower’s two 50,000 volt electricity distribution lines between Dargaville and Maungatapere.

The asset transfer also sees Northpower take ownership of the former Transpower Dargaville substation and those assets within Transpower’s substation at Maungatapere that are dedicated to the electricity supply to Dargaville from Maungatapere.
The asset transfer took place on April 2.

Northpower Chairman Warren Moyes says the acquisition is a substantial addition to the company’s infrastructure portfolio and represents very good value.

“This asset transfer is very positive for consumers in the Whangarei and Kaipara Districts because they now own the line,” says Mr Moyes.

“Lines charges won’t change due to the transfer as Northpower has simply reallocated the amount that would have been paid to Transpower across to the distribution charges portion of the line charges.

Because Northpower has made significant progress on upgrading its own Network, it is able to hold the normal component of line charge increases this year to 2.1%, which is in line with the projected rate of inflation for the next year.

Northpower already owns more than 3700km of high voltage electricity lines (237km underground) and almost 2100km of low voltage lines (643km underground) in Kaipara and Whangarei Districts. Mr Moyes says the new assets only supply the Northpower network.

“It is practical for Northpower to own, operate and maintain these local assets and, when required, design and install new equipment to replace ‘end-of-life’ assets or increase the supply capacity.

“Transpower has maintained these assets, some of which have provided reliability well for over 80 years but which are now due for replacement, allowing Northpower the opportunity to make provision for future capacity increases to Dargaville. This will result in a 150% increase in firm capacity for Dargaville over the next couple of years.

“That is an immense boost for future large industry in Dargaville as that level of capacity increase will comfortably allow for the likes of a timber processing plant or a dairy factory. Enabling that level of growth in the Kaipara District will be great for the Northland economy,” says Mr Moyes.

“This is in line with Northpower’s overall drive to ensure as far as is economically viable, that development in the region is not hindered through a lack of electricity infrastructure.

“Long term, these assets are better owned, managed and maintained by a local lines company such as Northpower because more of the revenue earned from the asset will remain locally, in the hands of the consumers connected to Northpower’s network in Kaipara and Whangarei – just as happens with our ‘Line Holidays’ and the Northpower Electric Power Trust ‘Distributions’.”

Landowners whose properties are crossed by the transmission lines between Maungatapere and Dargaville have been notified jointly by Transpower and Northpower, says Mr Moyes.

ENDS

*About Northpower
Northpower is a Northland owned electricity distribution company with 54, 900 electricity consumers connected to its network over an area of 5,700 square kilometres across the Whangarei and Kaipara Districts in Northland. Northpower Contracting, a division of Northpower, is a leading supplier of electricity distribution network design, maintenance and construction services with branches throughout New Zealand’s North Island, Perth and Melbourne. www.northpower.com

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