1. Why Things Change Transmission Assets
Change is inevitable - except from a vending machine
Robert C. Gallagher

2. Why Things Change
The purpose of this presentation is to provide further insight into the reasons for
the changes highlighted on the Transpower Asset reports
The main reasons for these changes are:
asset values
switch counts
interconnection substation asset allocations
new or removed assets
description changes

3. Asset Values
New Assets - If a new asset has been installed on the grid the value will be the full
building block value for that asset type
Asset Value Deleted – It is Transpower’s policy to hold the value of Spares, Local
Service and Load control assets at zero
NB – this may show up as a change from last year due to the timing of the policy rollout
Increase in existing asset value - An existing asset will increase in price if:
i. a component part of that asset is replaced or upgraded (e.g. the circuit breaker of an
HO1 switch)
ii. the existing asset value has had an adjustment factor applied during the transition from
ODV to the TPM methodology (current asset is not at full building block value)
The increase in value will be the full BB value of that component part

4. Switch Counts
Each switch asset contains a default number of switches based on the
appropriate building block. The number of switches is made up of one or a
combination of the following:
Circuit Breaker default
Bus default
Infrastructure default
A review process is undertaken annually to ensure that the switch count
allocated to a specific asset correctly reflects the relevant building block default.
If an error is identified, the switch count is updated. A list of building blocks and
their associated switch counts has been provided in the Useful Resources
section of the website

5. Interconnection substation asset allocations
At an interconnection node, the substation asset (land, buildings, establishment
and possibly oil containment) is allocated to connected customers based on the
proportion to which the customer’s connection assets (at that substation)
account for the replacement cost of all grid assets (excluding land & buildings)
(TPM c)
If there is any change in assets, i.e. addition, deletions, or value changes, the
% allocation may change

6. Asset Descriptions
An asset ID may be updated to provide a more accurate description of that
asset
e.g. BZP3 is changed to BZ3P42 (P42 is the asset building block)

7. Building Block Classifications
A review process is undertaken annually to ensure asset building block
descriptions correctly (or as closely as possible) reflect the physical
assets installed at a GXP. If an error is identified, the building block
description for that asset is corrected

8. New Assets No Value
A review process is undertaken annually to ensure that the “pricing” assets
correctly (or as closely as possible) represent the physical assets
installed at a GXP
If there is a missing asset, a new “pricing” asset is created.
If there is either duplication or a separate asset is in fact a component of
another building block (e.g. D59 220kV bus CVT is a component of a
DO1switch), then the duplicate asset is deleted. In the case of the VT
example, if the switch is not valued at the full BB value, the VT value is
added to the switch

9. Thank you again for your assistance. We hope you have
found this presentation useful. If you have any questions,
your customer solution manager is only a phone call away.