AusNet Services is undertaking this Regulatory Investment Test for Transmission (RIT-T) to evaluate options for South West Network Communications Replacement.
This Project Assessment Conclusions Report (PACR) follows the publication of the Project Specification Consultation Report (PSCR), which is the first step in the RIT-T process. As explained in the PSCR, the South West Communications project can proceed to the final stage of the RIT-T process, being the PACR, in accordance with clause 5.16.4(z1) of the Rules, for the following reasons:
- the preferred option, has a capital cost of less than $46 million, which is below the threshold amount;
- the PSCR identified the preferred option and explained our reasons for selecting it; and
- the credible options will not have a material class of market benefits except for those specified in clause 5.15A(b)(4)(ii).
We did not receive any submissions in response to the PSCR.
The analysis presented in this PACR explains that the preferred option is to replace the SDH/PDH communication technology and radio with Multiprotocol Label Switching - Transport Profile (MPLS-TP) technology and fibre cable. This option will not only maintain transmission reliability, but allows for ease of maintenance and provides sufficient bandwidth to accommodate the implementation of the Renewable Energy Zone (REZ). This option mitigates the emergency replacement risk costs arising from deteriorating assets in the South Western Victorian Transmission network.