The AER has published a draft determination following its review of the cost thresholds associated with the Regulatory Investment Test for Transmission (RIT-T). The AER’s draft determination is that:
- the $5 million cost thresholds in clause 5.6.5C, in relation to the definition of replacement transmission network asset and in relation to transmission investment as referred to in the definition of new network investment, be maintained at $5 million; and
- the $35 million cost threshold in clause 5.6.6(y) be increased to $38 million. The revised cost threshold will take effect on 1 January 2013.
The RIT-T is a cost-benefit test that transmission companies must apply before building electricity transmission infrastructure. Transmission companies must apply the test in instances where the costs of proposed transmission investments are above certain cost thresholds.
The National Electricity Rules require the AER to review these cost thresholds every three years to ascertain whether the thresholds need to be changed to reflect changes in input costs to maintain their appropriateness. The cost thresholds review and the publication of the draft determination is being conducted in accordance with clause 5.6.5E of the Electricity Rules.
Invitation for submissions
The AER is seeking submissions on the draft determination. Interested parties are invited to provide written submissions to the AER by close of business Tuesday 16 October 2012. The AER must publish a final determination within 5 weeks of the close of submissions.
Submissions should be addressed to Tom Leuner (General Manager, AER Wholesale Markets) at AERInquiry
aer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au) with the following title in the email: Submission on Cost Threshold review for the regulatory investment test for transmission – draft determination.
Alternatively, submissions can be sent to:
Mr Tom Leuner
General Manager
Wholesale Markets
Australian Energy Regulator
GPO Box 520
MELBOURNE VIC 3001
The AER prefers that all submissions be sent in an electronic format in Microsoft Word or other text readable document form and publicly available, to facilitate an informed, transparent and robust consultation process. Accordingly, submissions will be treated as public documents and posted on the AER's website, except and unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. Parties wishing to submit confidential information are requested to:
- clearly identify the information that is the subject of the confidentiality claim; and
- provide a non-confidential version of the submission