TransGrid - Cover Letter - QNI Minor Upgrade Contingent Project - 17 January 2020

On 17 January 2020, TransGrid submitted an application to the AER seeking an increase in its allowed revenue in accordance with clause 6A.8.2 of the NER to expand the transmission transfer capacity between New South Wales (NSW) and Queensland. TransGrid's contingent project application relates to the 'QNI minor upgrade' project identified in the Australian Energy Market Operator's 2018 Integrated System Plan (ISP) and draft 2020 ISP, and is consistent with the preferred investment option identified through its Expanding NSW-QLD Transmission Transfer Capacity Regulatory Investment Test for Transmission (RIT-T) process.

TransGrid proposed total capital expenditure of $223 million for the QNI minor upgrade project, which involves:

• uprating the Liddell to Tamworth 330 kV lines; and
• installing new dynamic reactive support at Tamworth and Dumaresq, and shunt capacitor banks at Tamworth, Armidale and Dumaresq.