Overview

Regulatory proposal - SP AusNet proposal

On 28 February 2007, SP AusNet submitted its revenue proposal and proposed negotiating framework and pricing methodology to the AER.

The AER conducted the preliminary examination of SP AusNet’s proposal required under clause 6A.11.1 of the NER. Additional information was sought from SP AusNet by 30 April 2007, to satisfy the requirements of the AER’s Submission Guidelines and the NER.

SP AusNet cover letter to revenue proposal - 28 February 2007

Authors
SP AusNet
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SP AusNet revenue proposal - 28 February 2007

Authors
SP AusNet
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SP AusNet Directors responsibility statement - 28 February 2007

Authors
SP AusNet
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SP AusNet proposed negotiating framework - 28 February 2007

Authors
SP AusNet
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SP AusNet pricing methodology - 28 February 2007

Authors
SP AusNet
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SP AusNet System Map

Authors
SP AusNet
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SP AusNet system map

Authors
SP AusNet
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SP AusNet cost information templates - 28 Feb 2007

Authors
SP AusNet
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SP AusNet templates other information - 28 Feb 2007

Authors
SP AusNet
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SP AusNet response to clause 6A.11.1 information request - 30 Apr 2007

Authors
SP AusNet
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Supporting information - AER clause 6A.11.1 information request

AER Information request - SP AusNet service standards

Authors
AER
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Supporting information - SP AusNet response to clause 6A.11.1 information request

SP AusNet Approvals process

Authors
SP AusNet
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SP AusNet Calculation of the 2008 to 2014 service standards V3

Authors
SP AusNet
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SP AusNet letter to AER re services agreement - April 2007

Authors
SP AusNet
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SP AusNet Opex merger effects

Authors
SP AusNet
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SP AusNet Opex model - 30 April 2007

Authors
SP AusNet
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SP AusNet PN 1 Property plant and equipment

Authors
SP AusNet
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SP AusNet PN 2 Capitalisation of borrowing cost

Authors
SP AusNet
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SP AusNet PN 6 Computer software

Authors
SP AusNet
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SP AusNet Pricing methodology - clause by clause assessment

Authors
SP AusNet
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SP AusNet Project execution and tracking - policy

Authors
SP AusNet
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SP AusNet Project execution and tracking - procedures

Authors
SP AusNet
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SP AusNet Service standards calculation paper

Authors
SP AusNet
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SP AusNet Templates - 3.3 Historic Capex - Network - by project (actual to business case comparison)

Authors
SP AusNet
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Stakeholder forum

The AER held a public forum on 10 May 2007 on the regulatory proposal's submitted by SP AusNet and VenCorp.

The public forum provided SP AusNet with an opportunity to explain its proposal proposal and interested parties were able to ask questions.

AER minutes SP AusNet revenue proposal forum - 10 May 2007

Authors
AER
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VENCorp forum presentation - 10 May 2007

Authors
VENCorp
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Submissions - to SP AusNet's Revenue Proposal

Submissions closed 13 June 2007.

Transend submission to SP AusNet revenue proposal - 13 June 2007

Authors
Transend Networks Pty Ltd (Transend)
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EUAA submission to SP AusNet revenue proposal - 25 June 2007

Authors
Energy Users Association of Australia (EUAA)
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Energy Users Coalition of Victoria submission to SP AusNet revenue proposal - 26 June 2007

Authors
Energy Users Coalition of Victoria (EUCV)
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Submissions - Supplementary submission - risk-free rate

In March 2007, NERA Economic Consulting released a preliminary report which identifies a potential bias in Treasury Indexed Bonds as a proxy for the real risk-free rate.

On the 31 May 2007 SP AusNet submitted to the AER a letter on remedying the use of biased raw yields on Commonwealth Government Securities (CGS) as a proxy for the risk free rate, attaching NERA’s preliminary report. SP AusNet indicated in that letter that a supplementary report from NERA would follow on the absolute bias in CGS.

SP AusNet submitted NERA’s second report to the AER on Thursday, 14 June 2007. After reviewing NERA's second report, SP AusNet considers there to be a compelling case that continued use of CGS yields to estimate the risk free rate without recognition of the relative and absolute bias would result in a significant underestimate of the allowed cost of capital. SP AusNet supports NERA's recommendation for correcting the bias when estimating the real risk free rate and submits that the AER adopt such an approach.

NERA report - Bias in indexed CGS yields as proxy for the CAPM Risk Free Rate - March 2007

Authors
NERA Economic Consulting
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SP AusNet letter to AER - Bias in CGS markets as a proxy for real risk-free rate - 31 May 2007

Authors
SP AusNet
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NERA report - Absolute bias in (nominal) Commonwealth Government securities - 7 June 2007

Authors
NERA Economic Consulting
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SP AusNet letter to the AER - NERA report on absolute bias and revised WACC proposal - 14 June 2007

Authors
SP AusNet
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Submissions - to use of CGS yields to estimate the risk free rate

Submissions were sought on the use of CGS yields to estimate the risk free rate in light of the absolute and relative biases put forward by NERA. One submission was received, from Energex. The AER also received a late submission from the Energy Users Association of Australia, but was unable to address this submission in time for its draft decision.

Energex submission - Bias in the Risk Free Rate - 2 August 2007

Authors
ENERGEX Retail Pty Ltd
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Late submissions - to use of CGS yields to estimate the risk free rate

The AER received a late submission from the Energy Users Association of Australia, but was unable to address this submission in time for its draft decision.
 

EUAA Submission on use of CGS yields - 6 August 2007

Authors
Energy Users Association of Australia (EUAA)
Content type
Document

Negotiated transmission service criteria - Proposed

The AER is required under Chapter 6A.9.4 of the National Electricity Rules (NER) to determine Negotiated Transmission Service Criteria (NTSC) to be specified in transmission determinations for SP AusNet and VENCorp.

The AER's transmission determination for SP AusNet must set out the NTSC that is to be applied by the Transmission Network Service Provider (TNSP) in negotiating the terms and conditions of access for negotiated transmission services and access charges. The NTSC will also be used by a commercial arbitrator in resolving any dispute between these TNSPs and a person wishing to receive a negotiated transmission service in relation to the terms and conditions of access for the service and access charges to be paid to or by the TNSP.

The NTSC determined by the AER must give effect to, and be consistent with, the negotiated transmission services principles set out in clause 6A.9.1 of the NER.

AER Proposed negotiated transmission service criteria

Authors
AER
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Submissions - to proposed negotiated transmission service criteria

VENCorp submission to proposed negotiated transmission service criteria - 7 August 2007

Authors
VENCorp
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Southern generators submission to proposed negotiated transmission service criteria - 8 August 2007

Authors
Southern Generators
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