Queensland Rail T 07 3072 0781 ^pQueenslandRall 305 Edward Street F 07 3072 7201 GPO Box 1429 E
[email protected] Brisbane QLD 4001 www.queenslandrail.com.au Ourref: MCR-18-319 Mr Charles Millsteed Chief Executive Officer Queensland Competition Authority Level 27 145 Ann Street Brisbane QLD 4000 Dear Mr Millsteed Queensland Rail's Access Undertaking 1 (AU1) requires that Queensland Rail provide the Queensland Competition Authority (QCA) with details of capital expenditure for the subject year that Queensland Rail considers should be included in the Regulatory Asset Base (RAB). Queensland Rail provided the 2013-14 to 2016-17 Capital Expenditure Report for the West Moreton Network to the QCA on 21 December 2017. The QCA's Final Decision on AU1 approved the West Moreton Network as at 1 July 2013 and the estimated capital expenditure to be included in the Capital Indicator for the period 1 July 2013 to 30 June 2020. This will be the first time the QCA considers capital expenditure for approval in the RAB since AU1 was approved. In subsequent communication between our officers, the QCA has sought evidence that assets included in the Capital Expenditure Report have been commissioned. Queensland Rail is now providing a revised estimate for the Capital Expenditure Report reflecting commissioned assets, as included in the Fixed Asset Register by year, as opposed to capital expenditure by year. The revised estimates are included in Attachment 1. Separately, Queensland Rail is providing the QCA with its records supporting the recognition of assets in the Fixed Asset Register. Consistent with the requirement of Clause 1.3(c) of AU1, I can confirm that the information contained in Attachment 1 in respect of the assets commissioned on the 2013-14 to 2016-17 Capital Expenditure Report is in all material respects correct.