The Australian Energy Regulator (AER) today commenced public consultation on the stage 1 part 2 contingent project application from TransGrid for its HumeLink project.
A contingent project application outlines the amount of revenue a business seeks to recover from its customers to deliver a project.
As part of its stage 1 application, Transgrid is seeking to recover $226.7 million in revenue for the procurement of Long Lead Equipment (LLE). This is Transgrid's second ‘early works’ contingent project application. This includes purchase of transformers, reactors, conductor and steel as part of Stage 1 activities. Transgrid has identified its stage 1 part 2 application will bring the associated cost forward and reduce its Stage 2 forecast capex by an equivalent amount.
The AER’s role is to review the reasonableness of the proposed costs within the stage 1 application to ensure consumers pay no more than necessary. The AER expects to make a decision on the application in the coming months.
Invitation for submissions
We welcome submissions from interested stakeholders on the stage 1 part 2 contingent project application for the HumeLink project by 30 June 2023. Written submissions or requests to make a submission via alternative methods should be emailed to contingentprojects
aer [dot] gov [dot] au (contingentprojects[at]aer[dot]gov[dot]au).
Background
HumeLink is a transmission upgrade connecting the Snowy Mountains Hydroelectric Scheme to Bannaby, expanding transmission capacity in southern New South Wales. The project is identified as a necessary upgrade for the National Electricity Market in Australian Energy Market Operator’s (AEMO) Integrated System Plan. The project has also been subject to a Regulatory Investment Test Transmission assessment, which is a cost benefit analysis.