11kV Overhead -0.9 2.3 0.1 0.2 0.1 11kV Underground -0.73 1.52 0.24 0.61 0.51 Land - Rural 4.2 4.1 5.2 3.5 -1.6 Land – Suburban & Industrial 4.2 4.1 5.2 3.5 -1.6 Land CBD 12.0 6.3 18.3 4.0 -1.8 Communication Cable - - - - - Communication Equip - - - - - Metering - - - - - Street Lighting - - - - - Other - - - - - Non-System: IT Software 1.7 1.7 1.7 1.7 1.7 Non-System: IT Hardware -0.5 -0.5 -0.5 -0.5 -0.5 Non-System: IT Facilities 0.6 0.6 0.6 0.6 0.6 Management Source: Ausgrid, Revenue proposal, Attachment 5.16 - Overview of the cost escalation methodology, p. 9.11. Ausgrid estimated real materials cost increases to increase its capex costs by $4.3 million ($ June 2014). Assessment approach We assessed Ausgrid's proposed real material cost escalators for the purpose of assessing its proposed total capex forecast against the National Electricity Rules (NER) requirements. We must accept Ausgrid's capex forecast if we are satisfied it reasonably reflects the capex criteria. Relevantly, we must be satisfied
11kV Overhead -0.9 2.3 0.1 0.2 0.1 11kV Underground -0.73 1.52 0.24 0.61 0.51 Land - Rural 4.2 4.1 5.2 3.5 -1.6 Land – Suburban & Industrial 4.2 4.1 5.2 3.5 -1.6 Land CBD 12.0 6.3 18.3 4.0 -1.8 Communication Cable - - - - - Communication Equip - - - - - Metering - - - - - Street Lighting - - - - - Other - - - - - Non-System: IT Software 1.7 1.7 1.7 1.7 1.7 Non-System: IT Hardware -0.5 -0.5 -0.5 -0.5 -0.5 Non-System: IT Facilities Management 0.6 0.6 0.6 0.6 0.6 Source: Ausgrid, Revenue proposal, Attachment 5.16 - Overview of the cost escalation methodology, p. 9.11. Ausgrid estimated real materials cost increases to increase its capex costs by $4.3 million ($ June 2014). Assessment approach We assessed Ausgrid's proposed real material cost escalators for the purpose of assessing its proposed total capex forecast against the National Electricity Rules (NER) requirements. We must accept Ausgrid's capex forecast if we are satisfied it reasonably reflects the capex criteria. Relevantly, we must be satisfied
AER%20%E2%80%93%20Draft%20decision%20Ausgrid%20distribution%20determination%20%E2%80%93%20Attachment%206%20%E2%80%93%20%20Capital%20expenditure%20%E2%80%93%20November%202014_0.DOCX