On 17 August 2010 the AER published proposed amendments to the roll forward model (RFM) and post-tax revenue model (PTRM) that will apply to future electricity transmission determinations.
Transmission network service provider revenue determinations have transitioned to recognising capital expenditure (capex) on a partially as-incurred approach, where the return on capital is calculated based on as-incurred capex and the return of capital (depreciation) is calculated based on as-commissioned capex. In order to continue with recognising capex under the partially as-incurred approach the AER has amended the transmission RFM and PTRM under clauses 6A.6.1(c) and 6A.5.2.(b) of the National Electricity Rules (NER). The AER has also included a function in the RFM to calculate closing average remaining asset lives based on a weighted average methodology.
The AER’s proposed amendments set out in explanatory statements, handbooks and the models can be found on the AER’s website.
The AER expects to make its final decision on the proposed amendments to the models in December 2010.
Invitation for submissions
Interested parties are invited to make written submissions to the AER on the proposed amendments by close of business Tuesday, 28 September 2010. Submissions can be sent electronically to: aerinquiry
aer [dot] gov [dot] au (aerinquiry[at]aer[dot]gov[dot]au)
Alternatively, submissions can be mailed to:
Mr Warwick AndersonGeneral Manager
Network Regulation North Branch
Australian Energy Regulator
GPO Box 3131
Canberra ACT 2601
The AER prefers that all written submissions be publicly available to facilitate an informed and transparent consultative process. Submissions will be treated as public documents unless otherwise requested. Parties wishing to submit confidential information are asked to provide both confidential and non-confidential versions of their submission. All non-confidential submissions will be placed on the AER's website.
Under clause 6A.20 of the NER, the AER is not required to consider a submission it receives after the consultation period has ended.