1. Measuring DNSP Outputs for Economic Benchmarking AER Economic Benchmarking Workshop #4 30 April 2013 Denis Lawrence and John Kain

2. www.economicinsights.com.au 2 Main Issue Data requirements Are there any variables missing from table 1 in section 3.2 that should be there? Are the definitions proposed appropriate for economic benchmarking? Should any of the definitions be altered to ensure consistency across DNSPs?

3. www.economicinsights.com.au 3 Other Issues Calculating output weights Including reliability measures as outputs Scope of services to include System capacity or peak demand? Which peak demand?

4. www.economicinsights.com.au 4 Output Specification #1 QuantityValuePrice Customers (No) System capacity (kVA*kms) Throughput (GWh) Interruptions (Customer mins) Revenue * Cost share –1 * Customer mins * VCR per customer minute Value / Customers Value / kVA*kms Value / GWh –1 * VCR per customer minute

5. www.economicinsights.com.au 5 Output Specification #2 QuantityValuePrice Customers (No) Smoothed non–coincident peak demand (MVA) Throughput (GWh) Interruptions (Customer mins) Revenue * Cost share –1 * Customer mins * VCR per minute Value / Customers Value / MVA Value / GWh –1 * VCR per customer minute

6. www.economicinsights.com.au 6 Output Specification #3 QuantityValuePrice Residential Customers (No) Commercial Customers (No) Sml Industrial Cust’rs (No) Lge Industrial Customers (No) Interruptions (Customer mins) Revenue * Cost share –1 * Customer mins * VCR per customer minute Value / Res Customers Value / Comm Customers Value / Sml Ind Cust’rs Value / Lge Ind Cust’rs –1 * VCR per customer minute

7. www.economicinsights.com.au 7 Operating environment short list VariableDefinitionSource Density factors Customer densityCustomers/route kilometre of lineRIN Energy densityMWh/customerRIN Demand densitykVA non–coincident peak demand (at zone substation level)/customer RIN Weather factors Extreme heat daysNumber of extreme cooling degree–days (above, say, 25° C)BoM Extreme cold daysNumber of extreme heating degree–days (below, say, 12° C)BoM Extreme wind daysNumber of days with peak wind gusts over, say, 90 km/hourBoM Terrain factors Bushfire riskNumber of days over 50 per cent of service area subject to severe or higher bushfire danger rating BoM & FAs Rural proportionPercentage of route line length classified as short rural or long rural RIN Vegetation encroachmentPercentage of route line length requiring active vegetation management DNSPs Service area factors Line lengthRoute length of linesRIN