Access arrangement final decision Envestra Ltd 2013–17 Part 2: Attachments

Revised proposal

105. 
     In its revised proposal, Envestra adopted the AER's draft decision on its opening capital bases as at 1 January 2013.⁵⁹
     

Envestra's revised proposal projected for its Victorian network a closing capital base at as 31 December 2017 of $1608.8 million ($nominal) as set out in table 3.5.

Table 3.5 Envestra's revised proposed capital base roll forward for Victoria during the 2013–17 access arrangement period ($million, nominal)

	2013	2014	2015	2016	2017
Opening capital base	1109.7	1228.8	1354.5	1468.2	1559.2
Net capex	131.2	140.2	131.9	111.7	72.6
Less: straight-line depreciation	39.8	45.3	52.0	57.3	62.0
Indexation	27.7	30.7	33.9	36.7	39.0
Closing capital base	1228.8	1354.5	1468.2	1559.2	1608.8

Source: Envestra, Post-tax revenue model—Victoria, November 2012.

Note: Totals may not add due to rounding.

112. 
     Envestra's revised proposal projected for its Albury network a closing capital base as at 31 December 2017 of $38.3 million ($nominal) as set out in table 3.6.
     

Table 3.6 Envestra's revised proposed capital base roll forward for Albury during the 2013–17 access arrangement period ($million, nominal)

	2013	2014	2015	2016	2017
Opening capital base	34.6	35.3	36.2	36.9	37.3
Net capex	1.3	1.6	1.4	1.3	2.0
Less: straight-line depreciation	1.4	1.5	1.7	1.8	1.9
Indexation	0.9	0.9	0.9	0.9	0.9
Closing capital base	35.3	36.2	36.9	37.3	38.3

Source: Envestra, Post-tax revenue model—Albury, November 2012.

Note: Totals may not add due to rounding.

12. Assessment approach

The AER's approach to assessing Envestra's revised proposed capital bases is set out in its draft decision. See section 2.3, attachment 2 of the draft decision for a detailed explanation of the assessment approach.

The AER also took into account submissions received on its draft decision in forming its final decision on Envestra's capital bases. However, these submissions related mainly to capex and depreciation, which are inputs to the projected capital base at 31 December 2017. Accordingly, these submissions are addressed in the capex attachment (attachment 4) and the depreciation attachment (attachment 6).

1.