Overview

Application

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.

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

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Transgrid
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TransGrid - Contingent Project Application - QNI Minor Upgrade - 17 January 2020

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Transgrid
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Confidentiality claims

TransGrid - QNI Contingent Project - Confidentialtiy Claims - 21 January 2020

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Transgrid
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Supporting information

TransGrid - QNI Contingent Project - Capex Methodology - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - Capex Model - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - Capex Forecast Inputs - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - GHD - Independent Engineering Capex Verification and Assessment - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - Opex Forecasting Methodology - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - Opex Model - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - PTRM - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - Corporate and Network Overhead Forecast - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - Corporate and Network Overhead spreadsheets - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - HoustonKemp Economic Verification Report - 17 January 2020

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Transgrid
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TransGrid - QNI Contingent Project - Insurance Report - 17 January 2020

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Transgrid
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Supporting information - Updated

For the purpose of making our decision on TransGrid's contingent project application, the AER issued an information request to TransGrid on 5 March 2020. TransGrid provided its full response to this request on 19 March 2020. Documents submitted by TransGrid in response to this information request are provided below.

TransGrid - QNI CPA - 13 March 2020

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Transgrid
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TransGrid - QNI Post-Tax Revenue Model - 19 March 2020

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Transgrid
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TransGrid - QNI Capex Model - 19 March 2020

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Transgrid
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TransGrid - QNI Capex Forecast Inputs - 19 March 2020

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Transgrid
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TransGrid - Attachment 7 - Allocation of Principal Contractor - 13 March 2020

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Transgrid
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TransGrid - Attachment 8 - Historical Indirect Capex - QNI - 13 March 2020

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Transgrid
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TransGrid - Confidentiality Claims - 13 March 2020

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Transgrid
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Submissions

Interested parties were invited to make submissions on ElectraNet’s contingent project application by close of business 10 February 2020. We received one confidential submission.