Detailed submission on our 2016 Plan

In April 2015 we submitted our regulatory proposal which details the services we will offer, the costs we are likely to incur, and the prices we propose to charge customers across North West Melbourne for the period 1 January 2016 to 31 December 2020 (Our 2016 Plan).

In October 2015, the Australian Energy Regulator (AER) published a Preliminary Decision on our 2016 Plan.

We have now revised our plan to reflect updated information, feedback from our customers and stakeholders and to respond to the AER’s Preliminary Decision. We provided our submission to the Australian Energy Regulator for review on 06 January 2016.

Following further stakeholder consultation, the AER must revoke its Preliminary Decision and substitute it with a final decision by the end of April 2016.

Would you like more detail on our January 2016 submission to the AER?

The table of contents of our regulatory proposal lists the topics and supporting information we have provided to the AER.

You can also visit the AER’s website to find out more about its review of our submission.

Links to each chapter of our submission (along with the supporting attachments) are provided in the following table.

Submission chapter and attachments
Executive summary  
1. About this submission
  1-1: Claims for Confidentiality
  1-2: Interrelationships, errors and countervailing benefits
  1-3: Update on customer engagement
2. Form of regulation
  2-1 Classification of services
  2-2 Price control mechanisms
3. Incentive schemes
  3-1 Incentive schemes
4. Risk management framework
  4-1 Risk management framework
5. Revenue requirement for distribution services
  5-1: Revenue requirement and true up
  5-2 Post tax revenue model (PTRM)
  5-3 RAB roll-forward model
  5-4 Asset base roll-forward and depreciation
  5-5: 2010 s-factor close out model
6. Rate of return
  6-1: Rate of return, gamma, forecast inflation, and debt and equity raising costs
  6-2: Rate of return model
  6-3: Averaging periods
  6-4: Frontier Economics - The required return on equity under a foundation model approach
  6-5: Frontier Economics - The relationship between government bond yields and the market risk premium
  6-6: Frontier Economics - Estimating the equity beta for the benchmark efficient entity
  6-7: HoutonKemp - The Cost of Equity: Response to the AER’s Draft Decisions for the Victorian Electricity Distributors
  6-8: CEG - Criteria for assessing fair value curves
  6-9: CEG - Critique of the AER’s approach to transition
  6-10: CEG - September 2015 cost of debt and inflation forecasts
  6-11: CEG - Critique of AER analysis of New Issue Premium
  6-12: Frontier Economics - The appropriate use of tax statistics when estimating gamma
7. Forecast capital expenditure for our distribution services
  7-1: Forecast capital expenditure
  7-2: Capital expenditure model
  7-3: Demand forecast
  7-4: ACIL Allen - Demand forecast report
  7-5: ACIL Allen - Demand forecast models
  7-6: Load demand forecast 2015
  7-7: Forecast customer numbers
  7-8: ACIL Allen – Forecast customer numbers report
  7-9: ACIL Allen – Forecast customer numbers model
  7-10: Nuttall Consulting - Addendum to April 2015 independent analysis of replacement expenditure
  7-11: WSPPB - Independent review of Sunbury development strategy
  7-12: Addendum to Sunbury network development strategy
  7-13: WSPPB - Independent review of Flemington development strategy
  7-14: Revised Flemington network development strategy
  7-15: WSPPB - Independent review of Preston development strategy
  7-16: Advisian - Demand management options
  7-17: Power of choice business case
  7-18: Deloitte - Power of Choice business case support
  7-19: Melbourne Airport network development strategy
  7-20: Addendum to Preston network development strategy
  7-21: Updated EDPR and CA RIN templates
8. Forecast operating expenditure for distribution services
  8-1: Operating expenditure forecasting method and base year efficiency
  8-2: Operating expenditure step changes
  8-3: Opex forecasting model
  8-4: IJM Consulting - Audit report of JEN's compliance with Electricity Safety 2010 Regulations
  8-5: Select Solutions - Letter confirming vegetation growth rates
  8-6: Susan Brennan SC - Advice on vegetation management matters
  8-7: Letter from JEN to ESV (23 November 2015)
  8-8: Letter from ESV to JEN (30 November 2015)
  8-9: Letter from ESV to JEN (27 November 2015)
  8-10: KPMG - Definition of RIN actuals
  8-11: Business case for reporting RIN actuals
  8-12: PB – Conversion of RIN information to actuals
  8-13: JEN GSL and Chapter 5A step change model
9. Revenue requirement for metering services
  9-1: Alternative control metering services
  9-2: PTRM - ACS Metering services
  9-3: ACS Metering (capital expenditure) model
  9-4: ACS Metering (operating expenditure) model
  9-5: ACS roll-forward model
  9-6: Metering exit fees model
  9-7: Huegin - Benchmarking Victorian metering expenditure from 2009 to 2014
  9-8: KPMG - Report on metering base year adjustment
10. Our fees and charges for other services
  10-1 Alternative control services and other negotiated services
  10-2 Public lighting charges model
  10-3 ACS cost build up model
  10-4 ACS ancillary network services charges model
  10-5 Negotiation framework