Transition mechanisms Minor Projects

Transition mechanisms Minor Projects Purpose of the session is to provide a summary of the proposed transition mechanisms being considered for RCP1

Minor Projects long term approach Determination of Expenditure Allowance Process improvement adjustments applied if appropriate Projects and programmes considered for approval Excludes projects that have been rolled-over for more than one RCP Subject to adjustments prior to inclusion in MAR Process improvements Process Improvements assessment MAR Approved expenditure included in RAB used to establish the MAR Project and programme List 1 Projects that have completed process and gained Transpower approvals Approved project and programme list 1 assessment Projects that have not completed Transpower’s approved internal project approval processes are rejected Approved Expenditure Allowance The Commission makes a decision on the Expenditure Allowance for the RCP AM policies, strategies and planning information Possible safety net Consideration of safety net provision to account for significant underspends Project list 2 assessment Years 4 & 5 only Project list 2 Projects that have not completed process and gained Transpower approvals 3

Minor Projects proposed transition Determination of Expenditure Allowance Process improvement adjustments applied if appropriate Projects and programmes considered for approval Excludes projects that have been rolled-over for more than one RCP Subject to adjustments prior to inclusion in RAB used to establish MAR MAR Approved expenditure allowances included in the MAR in RCP Approved Expenditure Allowance The Commission makes a decision on the Expenditure Allowance for each year of the RCP Process improvements Process Improvements assessment Year 1 Proposed capital expenditure information Capex assessment Similar to Settlement Agreement Safety net may apply Safety net provision to account for significant underspends Project and programme List 1 (Remaining 3 years) Approved project and programme list 1 assessment AM policies, strategies and planning information Wash up? Project list 2 Assessment Remaining 3 years only Project list 2 Projects that have not completed process and gained Transpower approvals 4

Discussion