ElectraNet – Eyre Peninsula Reinforcement contingent project

Sector: 
Segment: 
Status: 
Commencement date: 
22 May 2020
Effective date: 
20 July 2020
Contact: 
General enquiries - Contingent projects contingentprojects@aer.gov.au
AER reference: 
64757

Overview

On 22 May 2020, ElectraNet submitted a contingent project application to the AER seeking an increase in its allowed revenue to replace the existing transmission line supplying the Eyre Peninsula. The Eyre Peninsula Reinforcement project involves the installation of:

  • a new double-circuit line from Cultana to Yadnarie that is initially energised at 132 kV, but which has the option to be energised at 275 kV if required in the future;
  • a new 132 kV double-circuit line from Yadnarie to Port Lincoln, and
  • associated substation works at Yadnarie, Cultana, Middleback, Wudinna and Port Lincoln.

This application relates to ElectraNet’s preferred network investment option identified through the Eyre Peninsula Electricity Supply Options Regulatory Investment Test for Transmission (RIT-T) completed on 18 October 2018. On 11 April 2019, the AER determined that the preferred option identified by ElectraNet satisfied the requirements of the RIT-T.

ElectraNet has proposed total capital expenditure of $290 million ($2017-18) to deliver the project within the 2018­–23 regulatory control period.

Funding for a contingent project is permitted under clause 6A.8.2 of the National Electricity Rules through an adjustment to the maximum allowed revenue under ElectraNet’s 2018-23 revenue determination.

Our role is to determine the prudent and efficient capital and operating costs required to provide a reliable electricity supply to the Eyre Peninsula most efficiently into the future, and the incremental revenue that ElectraNet may recover within the 2018–23 regulatory control period as a result of undertaking the project.

Invitation for submissions

The AER invited written submissions on ElectraNet’s contingent project application by close of business 24 June 2020. Submissions have now closed.