Table 6.7 compares forecasts across the decision making process between the initial proposal and our final decision. Table . AusNet Services augex forecasts comparisons ($2015 million, excluding overheads) 2016 2017 2018 2019 2020 Initial augex forecast 82.5 64.7 60.8 53.0 52.8 313.8 AER preliminary decision 48.4 61.6 57.7 49.9 49.7 267.4 Revised proposal 70.1 81.1 61.6 57.0 59.1 328.8 AER forecast 63.9 76.0 61.6 55.5 52.3 309.3 Source: AER analysis. Our reasons for our decision on AusNet Services' revised augex proposal are set out in sections B.2.4 and B.2.5. AusNet Services' revised proposal AusNet Services' revised proposal is $328.8 million ($2015). As set out in Table 6.8, AusNet Services' revised augex forecast is comprised of capex to meet forecast maximum demand, capex related to the Victorian Bushfire Royal Commission (VBRC) recommendations, and other safety augex. Table . AusNet Services' proposed augex ($2015, million, excluding overheads) Category 2016 2017 2018 2019 2020 Total VBRC 28.6 27.9 28.1 28.3 28.5 141.4 Safety 31.4 30.3 15.1 13.6 13.3 103.8 Demand 10.0 22.8 18.4 15.1 17.2 83.6 Total augex proposal 70.1 81.1 61.6 57.0 59.1 328.8 Source: AusNet Services revised regulatory proposal AusNet Services' revised augex forecast is $15 million ($2015), or 4.8 per cent, higher than its initial proposal. In developing its revised forecast, AusNet Services': revised its demand-related capex upwards by 23 percent, to reflect revised maximum demand forecasts provided additional supporting information about its proposed safety programs.
Table 6.7 compares forecasts across the decision making process between the initial proposal and our final decision. Table . AusNet Services augex forecasts comparisons ($2015 million, excluding overheads) 2016 2017 2018 2019 2020 Initial augex forecast 82.5 64.7 60.8 53.0 52.8 313.8 AER preliminary decision 48.4 61.6 57.7 49.9 49.7 267.4 Revised proposal 70.1 81.1 61.6 57.0 59.1 328.8 AER forecast 63.9 76.0 61.6 55.5 52.3 309.3 Source: AER analysis. Our reasons for our decision on AusNet Services' revised augex proposal are set out in sections B.2.4 and B.2.5. AusNet Services' revised proposal AusNet Services' revised proposal is $328.8 million ($2015). As set out in Table 6.8, AusNet Services' revised augex forecast is comprised of capex to meet forecast maximum demand, capex related to the Victorian Bushfire Royal Commission (VBRC) recommendations, and other safety augex. Table . AusNet Services' proposed augex ($2015, million, excluding overheads) Category 2016 2017 2018 2019 2020 Total VBRC 28.6 27.9 28.1 28.3 28.5 141.4 Safety 31.4 30.3 15.1 13.6 13.3 103.8 Demand 10.0 22.8 18.4 15.1 17.2 83.6 Total augex proposal 70.1 81.1 61.6 57.0 59.1 328.8 Source: AusNet Services revised regulatory proposal AusNet Services' revised augex forecast is $15 million ($2015), or 4.8 per cent, higher than its initial proposal. In developing its revised forecast, AusNet Services': revised its demand-related capex upwards by 23 percent, to reflect revised maximum demand forecasts provided additional supporting information about its proposed safety programs.
AER%20-%20Final%20decision%20AusNet%20distribution%20determination%20-%20Attachment%206%20-%20Capital%20expenditure%20-%20May%202016.DOCX