The AER is required under Clause 6A.8.2(d) of the National Electricity Rules (NER) to assess applications by transmission network service providers (TNSPs) to amend their revenue determination to include the revenue required for a contingent project. The NER set out the requirements on TNSPs in lodging applications and the obligations on the AER in assessing applications.
The AER is not required by the NER to publish a guideline on contingent project applications but the AER has done so to assist TNSPs lodge an application that complies with the requirements of the NER.
The draft process guideline for contingent project applications by electricity TNSPs was released on 15 May 2007. The AER engaged in public consultation which included calling for submissions and meeting with interested parties.