GMW Price Submission 2020-2024 November 2019 Document Number: A3692405 Page 2 of 138 Document Number: A3692405 Table of Contents Executive Summary ................................................................................................................................... 8 Board Attestation .................................................................................................................................... 9 How we sought customer input ................................................................................................................ 10 Our engagement strategy .................................................................................................................... 10 Our engagement principles .................................................................................................................. 11 How we engaged ................................................................................................................................. 11 Engagement methods .......................................................................................................................... 14 Deliberative forum ................................................................................................................................ 14 How we structured our forum ........................................................................................................... 15 A fairer deal for all ................................................................................................................................ 16 Information provided to customers ....................................................................................................... 17 What our customers asked for ................................................................................................................. 18 Issues identification .............................................................................................................................. 18 Outcomes ............................................................................................................................................. 18 Refinement of service standards ......................................................................................................... 19 General Customer Service – Licensing and Administration ............................................................ 19 General Customer Service – Customer Service .............................................................................. 20 Diversions Service Standards .......................................................................................................... 21 Water Districts Service Standards ................................................................................................... 21 Pumped Irrigation Service Standards .............................................................................................. 22 Water Delivery Service Standards ................................................................................................... 22 Drainage Service Standards ............................................................................................................ 23 Bulk Water Service Standards ......................................................................................................... 23 Network delivery efficiency ............................................................................................................... 24 Options development ........................................................................................................................... 24 Proposals ............................................................................................................................................. 27 How we will report our performance and continue engagement.......................................................... 29 Matters outside of scope ...................................................................................................................... 30 How we are better managing risk ............................................................................................................ 31 Managing the rigour of our price review ................................................................................................... 35 Good practice project governance and planning ................................................................................. 35 Board assurance .................................................................................................................................. 36 Peer review of our price submission, supporting documents and proposals ....................................... 37 Our proposals to meet customer needs ................................................................................................... 39 Our forecasts ........................................................................................................................................ 39 Page 3 of 138 Document Number: A3692405 Operating Expenditure ..................................................................................................................... 39 Services performance against current determination .......................................................................... 41 Irrigation and drainage ..................................................................................................................... 41 Diversions ......................................................................................................................................... 43 Bulk Water ........................................................................................................................................ 43 Customer Service and Billing ........................................................................................................... 43 Non Controllable Expenditure .......................................................................................................... 44 Forecasting opex .................................................................................................................................. 44 Baseline................................................................................................................................................ 44 Trends analysis .................................................................................................................................... 45 Output growth ................................................................................................................................... 45 Real input price growth .................................................................................................................... 45 Productivity ....................................................................................................................................... 45 Proposed new expenditure .............................................................................................................. 45 Step changes ................................................................................................................................... 46 Expenditure for 2020-24 and 2024-28 ................................................................................................. 46 Irrigation and drainage ......................................................................................................................... 49 Diversions............................................................................................................................................. 49 Bulk Water ............................................................................................................................................ 49 Customer Service and Billing ............................................................................................................... 50 Non Controllable Expenditure .............................................................................................................. 50 Reflection of customer feedback ...................................................................................................... 50 Managing uncertainty ........................................................................................................................... 51 Modernisation Impact ........................................................................................................................... 51 Demonstrating prudency and efficiency ............................................................................................... 54 Supporting documentation ............................................................................................................... 55 Capital Expenditure .................................................................................................................................. 56 Impact of overall business transformation on asset management ...................................................... 56 Overview of capex by service/driver for 2016-20 ................................................................................. 56 Justification for material variances against the determination ............................................................. 56 Irrigation and Drainage 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