Transpower comes up with transmission line Plan B

Keith Turner

National grid operator Transpower has developed an alternative to the controversial 400kV line through the Waikato that may get around the Electricity Commission's objection to its original plan.

However, it is holding off presenting the plan to the commission for fear it could further delay the construction of a line the power industry believes is urgently needed.

"We are seeking clarification on how it would be treated," a Transpower spokesman said last night. "The last thing we want is for this to be extended out even further."

In a letter to Energy Minister David Parker, electricity company bosses have thrown their weight behind the plan, which includes:

* Acquisition of a route for the transmission line.

* Construction by 2011-2012 of a double-circuit line able to be operated at 400kV in the future.

* Operation of this line at 220kV until increased capacity is needed.

* Deferral of about of one-third of the capital cost (estimated by Transpower to be around $620 million) of the 400kV option by delaying high-cost equipment.

Transpower believes it could be upgraded to the higher voltage line within 18 months.

The executives, through a group called the CEO Forum, said the proposal should be considered. It secured the land, much of which could be urbanised if the line was delayed, ensured Auckland had a secure energy supply and gave certainty to land owners.

They have also asked the commission for one-month extension to the deadline for submissions on the 400kV proposal.

"We consider that it is more important to get the right decision for Auckland and New Zealand than to achieve certain artificial deadlines ... We strongly support a pragmatic and practical solution," Meridian chief executive Keith Turner said.

The commission rejected the 400kV plan on the grounds that an investment of $140 million in the existing network - and perhaps the construction of new power stations near Auckland - would delay the need for the planned 400kV line at least until 2017. That delay would also save the country as much as $250 million.

The rejection of the plan is to be finalised in July, after public consultation. If it is upheld, Transpower will have to come up with a new plan or challenge the commission in the courts.

The commission was not available for comment last night.