KEY POINTS:
Farmer opposition to Transpower's revised plan to upgrade the national grid between south Waikato and Auckland is unlikely to derail the plan financially, chief executive Ralph Craven says.
Having given its initial rubber stamp to the plan, the Electricity Commission has edged away from the dispute between the state-owned transmission operator and affected farmers and residents who oppose the new power line.
Nevertheless, the commission conceded it would consider the impact of potential compensation costs on the plan's economic viability.
The commission, which has yet to give its final approval, will now consult "significantly affected" parties and hold public hearings.
Commission deputy chairman Peter Harris said that while the commission had no authority to intervene in any compensation issues - which were a matter for Transpower and landowners - he did not discourage landowners or other stakeholders from making submissions or participating in the conferences.
The commission could take into account environmental and health mitigation concerns "to the extent that they impact on the cost of the proposal, to the extent that it requires some measures from Transpower to pay compensation or to shift the location of dwellings and those sorts of factors".
The commission's initial approval was based on the plan being just $11 million cheaper than an alternative that otherwise met all other relevant criteria.
Nevertheless, Transpower chief executive Ralph Craven said additional compensation or land acquisition costs were unlikely to jeopardise the proposal.
Transpower had budgeted $100 million in net acquisition expenses for acquiring the necessary properties and had already purchased some.
Properties purchased would have easements put in place and then be resold.
"If it costs a little more, it's not going to distort the outcome of whether this is the best decision or not for supply into Auckland. It's not a big impact."
