On 23 January 2017, the Office of the Commissioner for Kangaroo Island and the Kangaroo Island Council lodged a written notice with the AER disputing the conclusions made in SA Power Networks’ final project assessment report (FPAR) for the Kangaroo Island Submarine Cable regulatory investment test for distribution (RIT-D). SA Power Networks' FPAR found that the installation of a second 33kV undersea cable by 2018 had the highest net economic benefit, making it the preferred option.

The final RIT-D report recommended a 33kV submarine cable be installed to facilitate demand under all customer demand scenarios with the cable remaining sufficient to supply Kangaroo Island for the next 30 years. The disputing party has raised the dispute on the grounds that the FPAR was not in accordance with RIT-D requirements with respect to 'option value' for specific investment options (a 66kV cable option), as it did not include a 'high demand' scenario.