TransGrid - Humelink contingent project

Sector: 
Segment: 
Status: 
Commencement date: 
16 October 2020
Contact: 
AER General Inquiries AERInquiry@aer.gov.au

Overview

TransGrid is currently undertaking a Regulatory Investment Test for Transmisssion (RIT-T) for the Humelink project which is looking at reinforcing the transmission network in southern NSW. A Project Assessment Draft Report was published by TransGrid in January 2020.

The next step is for TransGrid to finalise the RIT-T by publishing a Project Assessment Conclusions Report (PACR). If the PACR identifies a preferred option that has positive net market benefits, TransGrid may then consider whether it will apply to the AER for a contingent project assessment. There are two pathways for such an application. The first involves the contingent project trigger events approved in the AER’s most recent revenue determination for TransGrid. The second involves the trigger events set out in clause 5.16A.5 of the National Electricity Rules.

TransGrid has sought clarification from the AER regarding the process for the second pathway mentioned above. More particularly, TransGrid has sought clarification as to whether, if it were to adopt the second pathway, it could break its contingent project application into stages and if so, what the relevant processes would be.