1. Transition mechanisms Large Projects

2. Proposed capital expenditure Categories  Purpose of the session is to provide − a summary of the proposed transition mechanisms being considered for RCP1

3. Large projects long term approach Contingent project list and triggers Submitted over a period and not immediately prior to RCP Contingent project list assessment Wash up provision Approved contingent projects undertaken during RCP included in the RAB used to establish the MAR in subsequent RCP with financially neutral wash up Individual contingent project approval Contingent projects that have successfully completed investment test during the RCP Emerging projects Projects that have completed required process stages and approvals during the RCP but were not approved ex-ante and are not contingent projects Individual project approval Projects that have successfully completed investment test accepted for inclusion in the MAR No wash up Approved emerging projects accepted for inclusion in the RAB which is to be used to establish the MAR in subsequent RCP Ex-ante project detailed information Submitted over a period and not immediately prior to RCP Individual project assessment Individual project approval (ex-ante) Approved projects that have successfully completed an investment test accepted for inclusion in the MAR MAR – and wash up Project approved expenditure included in MAR. Wash up provisions to adjust for legitimate under and over spend. Projects not commissioned in the RCP included in the wash up

4. Large projects proposed approach Contingent project list and triggers Submitted over a period and not immediately prior to RCP Contingent project list assessment Wash up provision Approved contingent projects undertaken during RCP included in the RAB used to establish the MAR in subsequent RCP with financially neutral wash up Individual contingent project approval Contingent projects that have successfully completed investment test during the RCP Emerging projects Projects that have completed required process stages and approvals during the RCP but were not approved ex-ante and are not contingent projects Individual project approval Projects that have successfully completed investment test accepted for inclusion in the MAR Ex-ante project detailed information Submitted over a period and not immediately prior to RCP Individual project assessment Individual project approval (ex-ante) Approved projects that have successfully completed an investment test accepted for inclusion in the MAR MAR – and wash up Project approved expenditure included in MAR. Wash up provisions to adjust for legitimate under and over spend. Projects not commissioned in the iRCP included in the wash up Wash up provision Projects not included in the approved large project list that have successfully completed an investment test undertaken during RCP1 are included in the MAR in RCP2 with a financially neutral wash up

5. Discussion