1. Transition year options

2. Timing requirement
Commission’s decision should be in place for the start of the 2011/12 pricing year.
Transpower announces prices in December

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8. Transition year options
If the Commission were to roll over the settlement
Option 1 - No adjustments made (e.g. to provisions relating to opex, WACC, and pass through costs).
Option 2 - If adjustments are made one or more components, then others may also need to be adjusted to keep the settlement balanced.
Decisions for the interim year may end up being inconsistent with other determinations being made.
Also, if the Commission was to focus resources on making appropriate adjustments, it might be easier to move to using the latest information and determinations to set the price-quality path for the interim year. 8

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