NECAP expenditure: RL3

Past review
Final report

On 11 December 2014, we approved DBCT Management’s application to include the expenditure on the new RL3 reclaimer into the regulated asset base.

On 30 October 2014, we received an application to approve non-expansion capital expenditure (NECAP) to replace the existing stacker reclaimer (SR1) with a new machine (RL3).

DBCT Management  sought our approval to include $53.7 million into its regulated asset base (RAB).  The effect of this would be to increase the annual revenue requirement (ARR) and terminal infrastructure charges (TIC) by $5.2 million and $0.0615 respectively, effective 1 July 2014.

As this expenditure exceeded $20 million, we assessed DBCT Management’s proposal for prudency in accordance with the requirements of cl. 12.10(c) of the 2010 DBCT access undertaking.

Flagstaff Consulting was engaged to undertake the prudency assessment of the SR1 replacement project.

We sought submissions from interested parties by 26 November 2014. In the absence of stakeholder comments, we proceeded directly to our final decision approving DBCT Management’s application.