Cash Outage Template - Download as Excel

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					Service Target Performance Incentive Scheme Parameters

Instructions:
TNSPs are required to list all appropriate parameters for the revenue reset period, grouped under the relevant subheading.
TNSPs must list the relevant unit for each parameter, what weighting that sub-parameters is given and the targets for the reset period.
Targets must be provided for each year of the revenue reset period. Proposed caps and collars for those targets should also be included.
These should be included in the format X / Y / Z, where X is the collar, Y is the target and Z is the cap.


                                                                    Weighting                                                                                         Propo
                                                        Unit
                     Measure                                        Factor(%)                 2008/09                          2009/10                      2010/11
Circuit Availability Parameter                                                      Collar     Target      Cap       Collar     Target     Cap     Collar
Total Circuit Availability
                                                         %              0.2         98.38      98.68      98.84      98.38      98.68      98.84   98.38
Peak Critical Availability
                                                         %              0.2         98.51      99.28      99.67      98.51      99.28      99.67   98.51
Peak Non-critical Availability
                                                         %             0.05         98.87      99.36      99.60      98.87      99.36      99.60   98.87
Intermediate Critical Availability
                                                         %             0.025        97.11      98.49      99.19      97.11      98.49      99.19   97.11
Intermediate Non-critical Availability
                                                         %             0.025        97.25      98.62      99.30      97.25      98.62      99.30   97.25
Loss of Supply Parameter
>0.05 min per annum
                                                        No.            0.125          7          4          3          7           4        3        7
>0.3 min per annum
                                                        No.            0.125          4          3          2          4           3        2        4
Outage Parameter
Lines
                                                       hours           0.125          12         7          4          12          7        4       12
Transformers
                                                       hours           0.125          10         7          6          10          7        6       10
          Proposed Targets
2010/11                      2011/12                    2012/13                    2013/14
 Target    Cap      Collar    Target   Cap     Collar    Target   Cap     Collar    Target   Cap

 98.68     98.84    98.38     98.68    98.84   98.38     98.68    98.84   98.38     98.68    98.84

 99.28     99.67    98.51     99.28    99.67   98.51     99.28    99.67   98.51     99.28    99.67

 99.36     99.60    98.87     99.36    99.60   98.87     99.36    99.60   98.87     99.36    99.60

 98.49     99.19    97.11     98.49    99.19   97.11     98.49    99.19   97.11     98.49    99.19

 98.62     99.30    97.25     98.62    99.30   97.25     98.62    99.30   97.25     98.62    99.30


  4         3         7        4        3        7        4        3        7        4        3

  3         2         4        3        2        4        3        2        4        3        2


  7         4        12        7        4       12        7        4       12        7        4

  7         6        10        7        6       10        7        6       10        7        6
Efficiency Benefit Sharing Scheme Parameters

Instructions for how to fill in templates

This template allows for a carry forward of efficiency losses or gains over the regulatory period.
TNSP's must fill out the Target and Actual sections with their historic and forecast operational expenditure amounts.
Years 1 - 5 refer to the existing revenue cap, where years 6 - 10 refer to the period covered by the revenue reset application.

Real 2007/08 dollars


Year                                   2003 Stub      2003/04         2004/05         2005/06         2006/07
Target                                         20.6          69.3           70.3            69.7            70.3
Actual                                         17.8          61.8           62.1            63.7            60.2
Difference                                      2.8             7.5             8.3             6.0         10.0
Average Underspend
Carry Over (DRP Methodology)
Glidepath Factor
Total carry over amount

DRP Methodology
Statement S7.2 on page 97 of the DRP (1999) states:
"Benefits will be glide pathed for a five year period commencing at the start of each regulatory review."

A more detailed description of the mechanism is provided in background discussions on pages 90-91 of the DRP (1999), which stat
"This form of glide path allows for the gradual sharing of the benefits of efficiency gains between users and the TNSP in the form of
prices. Further, for reasons of simplicity the glide path will be a simple straight-line phase out of efficiency gains. That is, for a regula
period of five years, efficiency gains beyond the X factor would reduce at a rate of 20 percent per year. Thus, the TNSP will keep 10
of excess efficiency gains for the first year of the next regulatory period, 80 percent of the excess efficiency gains for the second yea
on, until all of the excess efficiency gains are phased out by the end of the regulatory period."
t operational expenditure amounts.
d covered by the revenue reset application.




                         2007/08         2008/09         2009/10         2010/11         2011/12         2012/13         2013/14
                               71.2                 0               0               0               0               0              0
                               61.7
                                   9.4
                                   8.4


                                                   1.0             0.8             0.6             0.4             0.2
                                               8.39            6.72            5.04            3.36            1.68            0.00



ch regulatory review."

ons on pages 90-91 of the DRP (1999), which states:
 gains between users and the TNSP in the form of lower
e phase out of efficiency gains. That is, for a regulatory
f 20 percent per year. Thus, the TNSP will keep 100 percent
nt of the excess efficiency gains for the second year, and so
tory period."
            Depreciation
       This template is for use in revenue reset applications.

 Inputs for Post-Tax Revenue Model


              Asset Class            Opening WDV         Ave Lives
                                                         Remaining
       Secondary                                194.4               10.5
       Switchgear                               363.6               28.0
       Transformers                             162.0               19.3
       Reactive                                  92.4               23.0
       Towers and Conductor                    1022.6               29.4
       Establishment                             87.7               32.9
       Communications                            27.7               10.0
       Inventory                                  7.2                n/a
       IT                                        39.0                7.1
       Vehicles                                   2.5                3.4
       other                                      8.3                6.6
       premises                                  10.3                6.9
       Land                                      96.3                n/a
       Easements                                108.8                n/a
                  Total                        2222.9



       Based on these inputs, the PTRM will calculate the amount of economic depreciation annu




Depreciation Schedule (Real 2007/08$)


              Asset Class               2008/09           2009/10

       Secondary                                  21.3              23.1
       Switchgear                                 17.6              18.6
       Transformers                               12.3              12.5
       Reactive                                    4.3               4.5
       Towers and Conductor                       35.8              35.9
       Establishment                               3.3               3.8
       Communications                              2.1               2.6
       Inventory                                   0.0               0.0
       IT                                          7.1               8.9
       Vehicles                                    0.5               0.9
       other                                       1.5               1.5
       premises                                    1.7               1.7
       Land                                        0.0               0.0
Easements                                   0.0         0.0
    Total Depreciation                    107.5       114.0
Note: depreciated capex has 6-month IDC Adjustment



Location of assets

- see network map and forecast capex claim of TNSP.

NER requirements

- as per cl 6A.6.3 and Schedule 6A.1.3(7) of Rules.
                                                0




                                                      Forecast Capex (2007/08 Dollars - As Commmissioned)
                    Standard          2008/09       2009/10       2010/11       2011/12
                      Lives
                                 15         26.8            20.1           27.5            21.8
                                 45         40.9            36.2           49.3            48.5
                                 45         11.8            12.1           30.7            12.1
                                 40          7.1             1.2            4.3            10.0
                                 60          2.6             4.8            2.9             6.3
                                 45         20.5            33.3           19.0            29.4
                                 15          7.6             2.3           14.8            13.4
                                n/a          0.4             0.4            0.4             0.4
                                  5          8.9             9.5            6.0             6.8
                                  3          1.4             1.4            1.4             1.4
                                 10          0.4             0.4            0.4             0.4
                                 10          0.1             0.1            0.1             0.1
                                n/a          -               -              -               -
                                n/a          -               -              -               -
                                           128.6           121.7          156.8           150.8



late the amount of economic depreciation annually. These amounts will then be entered into the depreciation schedule below.




                     2010/11          2011/12       2012/13         2013/14          Total

                               24.5          26.4           25.0            17.5             18.2
                               19.4          20.5           21.6            22.4             24.0
                               12.8          13.5           13.8            14.6             15.5
                                4.6           4.7            4.9             5.0              5.3
                               36.0          36.0           36.1            36.3             36.4
                                4.5           4.9            5.6             6.0              6.3
                                2.8           3.8            4.6             4.2              4.4
                                0.0           0.0            0.0             0.0              0.0
                               10.4          10.1           11.5            11.1             10.1
                                1.1           1.2            1.2             1.2              1.2
                                1.5           1.2            1.2             1.2              1.0
                                1.6           1.2            1.2             1.1              1.1
                                0.0           0.0            0.0             0.0              0.0
  0.0     0.0     0.0     0.0     0.0
119.1   123.5   126.9   120.8   123.4
08 Dollars - As Commmissioned)
                   2012/13           2013/14

                            14.3             9.9
                            35.7            70.4
                            37.5            35.6
                             1.4            12.0
                             7.8             5.2
                            16.0            12.5
                             -               1.8
                             0.4             0.4
                             8.2             7.6
                             1.4             1.4
                             0.4             0.4
                             0.1             0.1
                             -               -
                             -               -
                           123.3           157.4



entered into the depreciation schedule below.
7.1 Weighted Average Cost of Capital
                                         Setting the Revenue Cap Forecast - Rate of Return ("WACC")



Notes for the preparation of information on this proforma:


     1.    The proforma sets out the minimum inputs required by the AER to model a TNSP's estimate of WACC.

     2.    The minimum inputs set out in the proforma are averages for the five-year regulatory period.

3.         A post-tax nominal WACC framework involves the use of a cash flow modelling approach to derive the revenue requirem

     4.    A TNSP shall provide to the AER:
           (a)      an estimate of its post-tax nominal return on equity; post-tax nominal WACC; and pre-tax real WACC.
           (b)      the assumptions underlying the estimation.
           (c)      full and detailed explanations of the basis of any calculations.
           (d)      references to any sources of information or precedents.


                                         Setting the Revenue Cap Forecast - Rate of Return ("WACC")

TNSP:




                       Nominal risk free rate

                       Real risk free rate

                       Inflation Rate

                       Proportion of debt funding

                       Nominal pre-tax cost of debt

                       Cost of debt margin over the risk free rate

                       Market risk premium

                       Corporate tax rate

                       Effective tax rate for equity

                       Proportion of franking credits attributed to shareholders

                       Equity beta

                       Post-tax nominal return on equity

                       Nominal vanilla WACC
ast - Rate of Return ("WACC")




del a TNSP's estimate of WACC.

year regulatory period.

modelling approach to derive the revenue requirement.


ax nominal WACC; and pre-tax real WACC.




ast - Rate of Return ("WACC")

                      Reporting date:

                      Proposed value
                          %


                          5.70%

                          2.60%

                          3.02%

                            60%

                          6.95%

                          1.25%

                          6.00%

                            30%

                          23.14%

                            50%

                             1.0

                          11.70%

                          8.85%

				
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Description: Cash Outage Template document sample