KEY POINTS:
Waikato and Auckland rural landowners opposing Transpower's push to build giant pylons through the central North Island have a top-level ally in a dissenting voice on the Electricity Commission.
Board member Graham Pinnell's opinion that the 400kV line represents orphan technology and that it will lead to $47
million being unnecessarily spent should provide heavy ammunition for protesters at two public meetings over the next few days.
The meetings have been organised by the Electricity Commission to explain, discuss and consult on its intention to approve Transpower's proposed North Island grid upgrade.
The first is in Hamilton tonight, the second in Auckland tomorrow evening.
In its report explaining the commission's logic to back the upgrade, a chapter penned by Mr Pinnell is highlighted for its contrasting view.
Unlike his colleagues, he argues that the 400kV line infrastructure, which will initially hold only 220kV lines, should not go ahead at its estimated cost of $683 million (projected to equate to $824 million by 2011).
He described the 400kV line as orphan technology, unlikely to be utilised for another 30 years and unlikely to be replicated anywhere else in the country.
When the line became heavily loaded in the future, the risk and consequences of double circuit failure were significant, he said.
In addition, longer term forecasts about electricity supply and demand were meaningless, given there was no clear view of the future.
"Equally, investing now in capacity that will not be used for a very long time, and maybe never, is very difficult to justify."
He said the commission's advice was that the average height of the proposed pylons was 60m.
This was 15m higher than a new 220kV line alternative.
Height and infrastructure were therefore big factors in Transpower's proposal, with a 21 per cent ($47 million) higher capital cost than the alternative.
Mr Pinnell also criticised Transpower's analysis of the benefits of the proposal in terms of competition, capacity and investor confidence.
"The commission has taken advice on these issues. I am of the view that the benefits assessed are so speculative as to be immaterial."
In his 17-page argument Mr Pinnell backs duplexing of the lines (increasing the capacity of the lines, making them "hotter"), and the 220kV alternative.
A two-page summary provided by the remaining board members, stating their rationale for approving the upgrade, said that Transpower's proposal reflected "good electricity industry practice in meeting the grid reliability standards".
Most of the commission board members were also satisfied Transpower's proposal had met the requirements of the grid investment test (an economic benefits and cost analysis of all alternatives, which encompasses security of electricity supply).
It said the proposal had minimised expected net market cost compared with its 220kV alternative.
"The view of the majority is that this conclusion is robust having regard to the sensitivity analysis carried out."
A month ago commission deputy chairman Peter Harris said although the intention to back Transpower's upgrade was not unanimous, "most of its elements were".
Many of the elements of the proposed upgrade were agreed and not considered controversial, he said.
The remainder of the 93-page report on the commission's decision covers background information, the Transpower proposal and alternatives, rule interpretations and data analysis.
Written submissions in response to the report are being called for by the end of next month.
Seat of power
* The Electricity Commission is made up of six board members.
* One board member, Graham Pinnell, is opposing Transpower's proposal to construct giant pylons through the Waikato to Auckland.
* Mr Pinnell, a former professional engineer, farms sheep and cattle near Cambridge.
* Stan Roger (Dunedin) abstained from the vote
* The remaining board members, deputy chairman Peter Harris (Wellington), Doug Dell (Auckland), and David Close (Christchurch), back the proposal.
