Table 2.12 AER’s final decision cash flow analysis for ElectraNet's benchmark equity raising costs ($ million, 2012–13) Cash flow analysis Total Notes Equity component Residual of capex funding requirement and debt component. 378.9 Retained cash flow available for Exclude dividends reinvested. 340.6 reinvestment Equity required Equals equity component less retained cash flows. 38.3 Dividends reinvested Availability of reinvested dividends, capped at 30% dividends paid. 54.4 Dividend reinvestment plan required Required reinvested dividends. 38.3 Seasoned equity offerings required Required season equity offerings (SEOs). 0.0 Cost of dividend investment plan Required reinvested dividends multiplied by benchmark cost (1%). 0.4 Cost of season equity offerings Required SEOs multiplied by benchmark cost (3%). 0.0 Total costs of dividend reinvestment plan and SEOs. To be added to RAB at the equity raising costs 0.4 start of the regulatory control period. Source: AER analysis. Components of ElectraNet's revised capex proposal that the AER accepts We accept the categories of ElectraNet's revised forecast in table 2.13 reasonably reflect the efficient and prudent costs of a TNSP. Table 2.13 sets out the categories and accepted values. Table 2.13 Components of ElectraNet's capex proposal that the AER accepts ($ million, 2012–13) Project category Sub-category $ million, 2012–13 NETWORK Load driven Augmentation 87.1 Connection 86.9 Nonload driven Security/compliance 64.9 Inventory/spares 18.6 NONNETWORK Business IT 45.8 Buildings/facilities 5.6 Source: AER analysis. Numbers may not be the same as ElectraNet's proposal due to our final decision on cost estimation risk factors and real cost escalation. We accept that ElectraNet's revised proposed forecast augmentation and connection reasonably reflect a realistic expectation of the demand forecast and cost inputs required to meet the capex objectives. ElectraNet's revised proposed augmentation and connection capex is a $74.4 million ($2012–13) reduction of
Table 2.12 AER’s final decision cash flow analysis for ElectraNet's benchmark equity raising costs ($ million, 2012–13) Cash flow analysis Total Notes Equity component 378.9 Residual of capex funding requirement and debt component. Retained cash flow available for reinvestment 340.6 Exclude dividends reinvested. Equity required 38.3 Equals equity component less retained cash flows. Dividends reinvested 54.4 Availability of reinvested dividends, capped at 30% dividends paid. Dividend reinvestment plan required 38.3 Required reinvested dividends. Seasoned equity offerings required 0.0 Required season equity offerings (SEOs). Cost of dividend investment plan 0.4 Required reinvested dividends multiplied by benchmark cost (1%). Cost of season equity offerings 0.0 Required SEOs multiplied by benchmark cost (3%). equity raising costs 0.4 Total costs of dividend reinvestment plan and SEOs. To be added to RAB at the start of the regulatory control period. Source: AER analysis. Components of ElectraNet's revised capex proposal that the AER accepts We accept the categories of ElectraNet's revised forecast in table 2.13 reasonably reflect the efficient and prudent costs of a TNSP. Table 2.13 sets out the categories and accepted values. Table 2.13 Components of ElectraNet's capex proposal that the AER accepts ($ million, 2012–13) Project category Sub-category $ million, 2012–13 NETWORK Load driven Augmentation 87.1 Connection 86.9 Nonload driven Security/compliance 64.9 Inventory/spares 18.6 NONNETWORK Business IT 45.8 Buildings/facilities 5.6 Source: AER analysis. Numbers may not be the same as ElectraNet's proposal due to our final decision on cost estimation risk factors and real cost escalation. We accept that ElectraNet's revised proposed forecast augmentation and connection reasonably reflect a realistic expectation of the demand forecast and cost inputs required to meet the capex objectives. ElectraNet's revised proposed augmentation and connection capex is a $74.4 million ($2012–13) reduction of
AER%20-%20final%20decision%20for%20ElectraNet%27s%202013-18%20regulatory%20control%20period%20-%2030%20April%202013_0.DOCX