Capital expenditure

On 13 October 2017 we released our decision to accept Aurizon Network’s 2015–16 capital expenditure claim (as amended by Aurizon Network on 5 June 2017 and 27 September 2017). This accepted capital expenditure, totalling approximately $887 million, would be included in Aurizon Network’s regulatory asset base for the central Queensland coal network.

We received two submissions on our consultants’ reports—from WIRP Users and Aurizon Network. AECOM provided a notice of advice in response to these submissions.

These documents are available below.

We conduct an annual assessment of the prudency of capital expenditure to determine whether it should be included in Aurizon Network’s regulatory asset base (RAB) for the Central Queensland coal network.

In assessing the prudency of capital expenditure, we focus on the:

• scope of works
• standard of works
• cost of works.

Refer to clause 3.3.1–3.3.4 of schedule A of the 2010 access undertaking for further detail on the assessment framework.

We engaged AECOM, Brimik, and RSM Australia to provide expert advice and recommendations on Aurizon Network’s 2015–16 capital expenditure claim.

On 4 September 2017, we received two submissions on the consultants’ reports, from WIRP Users, and Aurizon Network.

Regulatory process

31 October 2016—Aurizon Network submitted its 2015–16 capital expenditure claim of $892.6 million (inclusive of interest during construction), covering 87 projects.

5 June 2017—Aurizon Network requested to amend its 2015–16 capital expenditure claim.

3 August 2017—Stakeholders were invited to comment on the consultants’ reports that advised on Aurizon Network’s 2015–16 capital expenditure claim.

4 September 2017—The period closed for lodging submissions on our consultants’ reports.

26 September 2017—AECOM issued a notice of advice responding to points raised in submissions.

27 September—Aurizon Network requested to amend its 2015–16 capital expenditure claim.

13 October 2017—We released our decision to accept Aurizon Network’s 2015–16 capital expenditure claim (as amended by Aurizon Network).

On 11 May 2016 we approved Aurizon Network’s capital expenditure claim, of $614.3 million, for 2014–15.

We sought CMT Solutions’ advice in assessing the claim.

CMT Solutions’ reports and the letter advising Aurizon Network of our final decision can be downloaded below.

On 11 May 2016 we approved Aurizon Network’s capital expenditure claim, of $614.3 million, for 2014–15.

We sought CMT Solutions’ advice in assessing the claim. Stakeholders were invited to make submissions on CMT Solutions’ report and we took stakeholder submissions into account in making our final decision on Aurizon Network’s claim.

CMT Solutions’ reports and the letter advising Aurizon Network of our final decision can be downloaded below.

On 21 May 2015, we approved Aurizon Network’s capital expenditure claim of $326.7 million. We assessed the claim in accordance with schedule A of the 2010 access undertaking.

CMT Solutions and RSM Bird Cameron assisted us by providing their expert engineering and cost advice.

Our consultants’ reports and the final decision letter can be downloaded below.

On 21 May 2014, we released a final decision letter to approve $226.4 million in capital expenditure claimed  by Aurizon Network, in respect of the central Queensland coal region. The claim was assessed in accordance with schedule A of the 2010 access undertaking.

To assist us in our assessment of the claim, we engaged CMT Solutions and Jacobs SKM to undertake engineering assessments, and RSM Bird Cameron to conduct a cost review.

On 10 October 2013, we released a final decision letter to approve the $1.3 billion in capital expenditure claimed by Aurizon Network.

On 22 August 2013, we made a draft decision to approve $1.3 billion in capital expenditure, claimed by Aurizon Network in respect of the central Queensland coal region, for 2011–12. We assessed the claim in accordance with schedule A of the 2010 access undertaking.

We published our draft decision along with our consultants’ reports, and sought submissions by 20 September 2013.

No written submissions were received.

On 10 October 2013, we approved, for inclusion in Aurizon Network’s RAB, $1.3 billion in capital expenditure claimed for 2011–12.

On 27 June 2012, we approved, for inclusion in Aurizon Network’s RAB, $119.5 million in capital expenditure claimed for 2010–11.