Power pylon decision put back

The Waikato power pylon controversy has been kicked into the long grass by the Government until after the general election.

In a move that sparked accusations of cynical electioneering, the Electricity Commission has had its deadline to approve or decline the $500 million project extended from September to mid-2006.

As the election must be held by September 24, the announcement could have proved highly damaging for the Government even if the poll is held as early as July, as some commentators have suggested.

If the commission gives the go-ahead, state-owned Transpower still has to secure approval through the resource consent process.

Consultation meetings in the Waikato have already seen fiery protests and walkouts by opponents who have formed New Era Energy. Energy Minister Trevor Mallard yesterday released a letter to the commission outlining the Government's expectations, which include spending more time looking at alternatives.

But he denied the delay was motivated by a desire to avoid making an unpopular decision in an election year.

However, National and Act accused the Government of cynical electioneering. National deputy leader Gerry Brownlee said Labour was merely running for the cover of the election by postponing a decision on supplying extra power to Auckland.

"This decision has the smell of a party desperate to stay in power at any cost. It simply creates more uncertainty for landowners and over electricity supply into Auckland for another year."

However, Greens co-leader Jeanette Fitzsimons welcomed the decision and said it was a huge victory for the pylon protesters that the commission's brief had been widened to consider environmental effects, rather than just the costs to the electricity industry and consumers.

But opponents in the Waikato were skeptical.

New Era Energy spokeswoman Christina Baldwin said the news seemed an improvement on the current situation signalling real investigation into alternatives but she was concerned it stopped short of discussing funding or resources to fully investigate options.

The "twin track" approach to deciding the project has been signalled before and was raised as a prospect by Mr Hemmingway in an interview with the Herald in February.

What has now been clarified by the Government, said Mr Hemmingway, was the breadth of his investigations into alternatives. The process would now be "more robust".

There is every likelihood, however, that Mr Hemmingway will - after considering the alternatives - simply endorse the Transpower plan or at the worst for the opponents, delay it.

Alternatives to the new line include building new power stations close to Auckland, cutting electricity demand at peak times, or spending more money putting the line underground.

New power stations near Auckland need fuel, however, so a major natural gas find would be most likely to keep the pylon plan firmly on the drawing board.

Transpower chief executive Ralph Craven, who has been the victim of personal death threats from pylon opponents, said Transpower would continue to talk with landowners about easements and potential routes for the lines.

Assuming the commission approved Transpower's plans for the new line, it hoped work could begin around 2010. "Transpower remains confident that the 400 kV line option will be shown to be the best way forward for the region and New Zealand," Dr Craven said.

Mary Gibson from Morrinsville said the time extension just added to people's stress levels while taking the heat off the Government.

Putaruru lifestyle farmer Dave Rennie said on the one hand he was optimistic that some sense of reason was entering the power debate but on the other he was worried the Government was simply postponing the issue until after the election.

He said time would tell whether he was being overly cynical but the commission was always charged with looking at alternatives.

"We have no reason to celebrate yet."

Pylon project

The Government's expectations of the Electricity Commission:


* Consult widely with affected parties on the new line
* Thoroughly investigate the alternatives including generation, demand-side options and alternative transmission options
* Take into account the likely environmental costs