Final Report SunWater Irrigation Price Review: 2012-17 Volume 2 Maranoa River Water Supply Scheme April 2012 Level 19, 12 Creek Street Brisbane Queensland 4000 GPO Box 2257 Brisbane Qld 4001 Telephone (07) 3222 0555 Facsimile (07) 3222 0599
[email protected] www.qca.org.au © Queensland Competition Authority 2012 The Queensland Competition Authority supports and encourages the dissemination and exchange of information. However, copyright protects this document. The Queensland Competition Authority has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered. Queensland Competition Authority Table of Contents TABLE OF CONTENTS PAGE GLOSSARY III EXECUTIVE SUMMARY IV 1. MARANOA RIVER WATER SUPPLY SCHEME 1 1.1 Scheme Description 1 1.2 Bulk Water Infrastructure 1 1.3 Network Service Plans 1 1.4 Consultation 2 2. REGULATORY FRAMEWORK 4 2.1 Introduction 4 2.2 Draft Report 4 3. PRICING FRAMEWORK 8 3.1 Tariff Structure 8 3.2 Water Use Forecasts 9 3.3 Tariff Groups 10 4. RENEWALS ANNUITY 11 4.1 Background 11 4.2 SunWater’s Opening ARR Balance (1 July 2006) 12 4.3 Past Renewals Expenditure 13 4.4 Opening ARR Balance (at 1 July 2012) 16 4.5 Forecast Renewals Expenditure 17 4.6 SunWater’s Consultation with Customers 22 4.7 Allocation of Headworks Renewals Costs According to WAE Priority 23 4.8 Calculating the Renewals Annuity 23 5. OPERATING COSTS 25 5.1 Background 25 5.2 Total Operating Costs 25 5.3 Non-Direct Costs 30 5.4 Direct Costs 33 5.5 Cost Allocation According to WAE Priority 41 5.6 Summary of Operating Costs 41 6.