This page describes some of Utility Consultants recent client projects. These are just a few projects that have appeared in the client newsletter Pipes & Wires with our clients' express permission.

To download a comprehensive profile of recent projects pick here.

Aurora Energy - bid for Otago Power

Utility Consultants provided due diligence services to Aurora Energy (formerly Dunedin Electricity Ltd) in the matter of its bid for the network assets of Otago Power Ltd that sold for $109m. Building on a long relationship with both Aurora and its network management company, DELTA Utility Services, Utility Consultants was able to provide the following services to Aurora…

- Assessment of line and substation physical condition.
- Examination of capital expenditure estimates.
- Identification of cross-boundary capital and operational synergies.
- Identification of alternative bulk supply options.

"The quality and depth of Utility Consultants analysis enabled us to confidently increase our final bid by several million dollars" said John Walsh, chief executive of DELTA.

Hutt Mana Energy Trust - feasibility of buying back Hutt Valley and Wellington networks

Utility Consultants was recently engaged by the Hutt-Mana Energy Trust to examine the feasibility of buying back the former Energy Direct lines business and also the possibility of buying the former Capital Power lines business. Just to jog the memory a bit, a series of transactions following the passage of the Electricity Industry Reform Act 1998 had led to the Trust's then 20% stake in Energy Direct becoming a 10.3% stake in Natural Gas Corporation. Utility Consultants performed the following scope of work for the Trust…

- Testing the hypothesis that Trust-owned lines companies have lower line charges.
- Provide a summary of then present regulatory regime.
- Provide an opinion on the likely form and extent of the then-pending lines price control regime.
- Identify the measures preventing the owner of a lines business using the non-beneficially-owned areas of the business to subsidise the beneficially-owned areas.
- Estimate purchase prices for the Energy Direct lines business and for both lines businesses.
- Identify structural options for both possible purchases, including comment on the likely capital structure and resultant credit ratings.
- Perform a desk-top analysis of the assets and express a broad view on their condition.
- Identify options for managing and operating a lines business.

Counties Power Consumer Trust - future ownership options

Utility Consultants recently advised the Counties Power Consumer Trust in the matter of its five-yearly ownership review. Similar to many other New Zealand energy trusts, the Counties Power Consumer Trust deed requires the Trustees to review its ownership of the lines company (in this case Counties Power Ltd, a lines business valued at about $92m) at regular intervals. The broad scope of work included the following…

- An overview of the electricity industry, including a summary of legislative changes.
- Benchmarking the Trust's performance against other New Zealand energy trusts.
- An analysis of the advantages and disadvantages of trust ownership.
- A detailed analysis of 28 ownership options.
- An analysis of Counties Power performance compared to its 2 peers using Utility Consultants benchmarking methodology.
- Preparation of public discussion documents and critiquing of a written submission.

Based on the analysis performed and an overwhelming level of public support, the Trustees unanimously resolved to continue with 100% ownership of Counties Power Ltd.

Westpower asset management plan complaince

Utility Consultants recently assessed Westpower's disclosure asset management plan for compliance with Section 25 of the Electricity (Information Disclosure) Regulations 1999 on behalf of Westpower's contracted asset manager, ElectroNet Services Ltd.

Electra - network risk management

Utility Consultants recently undertook a comprehensive network risk assessment for Electra using a methodology based on NZS 4360:1999. The methodology considered all of Electra's 33kV sub-transmission lines and zone substations, and estimated the likelihood and consequences of each asset being affected by hazards ranging from wind and flooding to opportunist vandalism and runaway vehicles to termites. The consequences of each hazard can include loss of supply, property damage and public safety which can be weighted to suit individual utilities risk profiles. From all of this data a prioritised schedule of risks is developed that identifies the assets most at risk and which hazard they are at risk from. This schedule can then be included in the asset management plan along with risk mitigation tactics.

ScanPower - customer engagement requirements

Utility Consultants has recently assisted ScanPower in meeting the customer engagement requirements of Section 6(1)(e) of the Commerce Act (Electricity Lines Threshold) Notice 2003. The methodology chosen was to present a group of ScanPower's largest customers with an option of increased supply reliability (at an additional monthly cost) based on providing a back-up supply fed from a separate feeder within ScanPower's network via a remotely-actuated air-break. Utility Consultants also prepared the compliance statement required by Section 7(1) of the Notice.

Buller Electricity - asset management plan obligations

Utility Consultants recently advised Buller Electricity on modifying its asset management plan to include the following aspects…

- Policies on distributed generation as required by Schedule 2 of the Electricity (Information Disclosure) Regulations 1999 and subsequent amendments.
- Customer consultation processes to ensure that the requirements of the Commerce Act (Electricity Lines Threshold) Notice 2003 are suitably integrated into the organisation at a senior level.