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Appendix B: Cost Adjustment Procedure


Costs of Fossil Fuel Generating Plant

East Harbour Management Services Ltd
[ Last Updated 14 November 2005 ]


Base costs in 1999 $US were first adjusted for United States inflation using United States Bureau of Labor Statistics, PPI index "Turbines and turbine generator sets". 80% of this amount was converted to $NZ using a conversion rate of $NZ = $US 0.42. The remaining 20% was considered New Zealand content.

Operations and Maintenance Adjustment

The procedure was the same as for the capital cost adjustment except that 67% of the $US was converted to $NZ.


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