After receiving submissions on the TPM 2019 issues paper, we identified some refinements to our proposal that may better promote our statutory objective. We're now proposing that:
- annual benefit-based charges for post-2019 grid investment be set according to the depreciated historical cost (DHC) method, instead of the indexed historical cost (IHC) approach that was proposed for post-2019 investments in the 2019 Issues paper
- if a direct connect or generation customer closes down one of its plants, its liability for associated benefit-based charges would cease ten years after the commissioning of the relevant grid investments, instead of continuing indefinitely as was proposed in the 2019 Issues paper
- the initial allocation of the residual charge (which is based on historical gross anytime maximum demand) is to be adjusted annually based on changes in the four-year rolling average of gross annual energy usage, lagged by seven years
- a customer may apply for a prudent discount if its transmission charges would exceed the standalone cost of the transmission services it receives.
See below for our consultation paper and the submissions received.