Operating

1
Operating Maintenance Expenditure Forecasts

• Annaliza Bitantes
• Energy Regulatory Officer I

2
Operating Maintenance Expenditure Forecasts
3
Payroll Forecasts
4
Payroll Forecasts
5
Network Operating Maintenance Expenditure
Forecasts
6
Network Operating Maintenance Expenditure
Forecasts
7
Operating Maintenance Expenditure Forecasts
8
Operating Maintenance Expenditure Forecasts
9
Regulatory Asset Base Valuation

• David Dawson
• ERCs Regulatory Expert

10
Optimization RAB

• ERC checked on-going projects against RAB and did
  not identify any overlap in claim of value
• Otherwise, ERC has relied on SKM et. al
  optimization of the RAB
• DD adjusts for
• Windfall
• Connection assets
• Sub-transmission assets via disposals

11
RAB - Windfall

• s.4.8.1 of TWRG indicates that asset lives may
  differ from those used for financial reporting
• s.4.8.3 of TWRG indicates the ERC is interested
  in treatment of windfall gains and losses
• These could arise from valuation or a change in
  asset lives

12
RAB Windfall Potential
13
RAB Windfall Treatment

• For DD only history known from 1996 appraisal
  using 30y uniform life

14
RAB Windfall DD Review

• Windfall applicable for ODRC and appraisal to the
  extent asset lives now recommended to differ from
  30y
• DD only looks at substations, lines,
  interconnectors, meters communications
• Other assets (appraisal) not yet examined in
  detail

15
RAB Subtran Connection (a)

• Focus for DD on plant equipment
• Use SKM data on T/ST N/C definitions
• Resultant outcome is four groupings
• Transmission divided by network connection
• Sub-transmission divided by network connection

16
RAB Subtran Connection (b)

• Summary for substations

17
RAB Subtran Connection (c)

• Summary for substations