Media Release

13 September 2013

How TransGrid is empowering the people

TransGrid is proud to have been an integral part in providing a world-class electricity supply to New South Wales for more than 60 years and is equally proud of its open and transparent processes.
Weve been moved to respond to your editorial in the Byron Shire Echo (September 3 edition) The carbon tax myth examined In that item, you make reference to the ABC Australian Storys focus on the Manning Alliance. For any individual or organisation to suggest that investment in infrastructure and assets was the single largest cause of the electricity prices that consumers had experienced in Australia is to provide misguided commentary which is quite simply incorrect. The facts are these: TransGrid made an industry leading announcement to the energy market in late 2012 - a freeze on transmission revenue (from retailers) in 2013 to help remove price volatility for customers. This was greeted as a forward thinking response to the impact of increasing electricity prices on NSW households most importantly though, this decision was made even though the cost of electricity transmission represents as little as six (6) per cent and no more than eight (8) per cent of an average household electricity bill in NSW. That is a fact. However, for at least the next five years, customers can expect TransGrid to keep revenue increases to no more than CPI. TransGrid understands that being a good corporate citizen means always trying to improve across all facets of its core business and to ensure projects and augmentation work are delivered to the broader community with maximum consultation and minimum affect on the local community. We plan in the most prudent and sensible fashion and are always willing to defer or cancel projects, if circumstances suggest this is the most appropriate course, said TransGrid managing director Peter McIntyre. Load forecasting for electricity transmission networks is a complex business but most importantly we are required to ensure a safe, reliable and efficient supply of electricity, he added. Your readers should also be made aware that TransGrid has, in fact, deferred about one-third of its capital works program previously proposed to and accepted by the Australian Energy Regulator (AER) for the 2009-14 regulatory period. This includes: the Far North NSW Project (estimated cost $227 million) the Stroud to Lansdowne Transmission Line Project ($165 million); and

Media Contact Frank Coletta (Media & Government Manager) Phone: 0468 987 295 or (02) 9284 3371 Email: frank.coletta@transgrid.com.au Web: www.trangrid.com.au/media

About TransGrid: TransGrid is responsible for the high voltage electricity transmission network in New South Wales. Electricity is generated at power stations, then transmitted by TransGrid to electricity distributors through our network of more than 12,800 kilometres of high voltage transmission lines and substations. Electricity is delivered to homes and businesses by distributors such as Country Energy, Energy Australia and Integral Energy.

Media Release
13 September 2013

the Bannaby to South Creek Project ($464 million).

Those deferrals eventually flow through to customers by the network having a smaller regulated asset base. TransGrid recently launched an independent and public review of its project consultation (including stakeholder and consumer engagement). This was defined through its Terms of Reference (TOR), a draft of which was published for community input and reviewed on the basis of that input. The independent review has been conducted by RPS Group and workshops organised to give consumers and any interested parties a voice in our future planning. TransGrid has also undertaken consumer workshops (round-table discussions) to engage, inform and be informed by those who pay household electricity bills and holds an annual Transmission Annual Planning Report (TAPR) Forum and publishes the TAPR and an Annual Report for regulatory and public consumption. We pride ourselves on an open and transparent process and each year provide clear and relevant information surrounding electricity forecasting around supply and demand, Mr McIntyre said. These consultative events make up part of our aim to provide the public a better understanding of the states high-voltage transmission network and what we do on a day-to-day basis, he added. TransGrid also participated openly in this years Mid North Coast Review (Review of Electricity Supply to the Mid North Coast) and is pleased to note that a large proportion of the recommendations made in that report had already been advanced by TransGrid. The regulatory consultation process for the lower Mid North Coast was actually undertaken back in 2008/09 and from the application through to final report stages, no submissions were and no disputes were lodged. Earlier this year, following a review of the latest available electricity forecasts for the NSW Mid North Coast, TransGrid announced that it would not proceed with the proposed Stroud to Taree Transmission Line Project, at this time. In recent years, TransGrid has experienced volatile consumer demand which makes the timing of its investment decisions and engagement with the community even more challenging. TransGrid has responded to these changes in demand by revisiting the timing and scope of a number of projects including the mid north coast project. As a matter of background, the forecast data for the Mid North Coast indicated that summer maximum demand is likely to increase at a rate lower than previously expected. With the information available, TransGrid then decided to cease all activities for this project. The annual planning process includes regular reviews of demand forecasts and the need for growth driven developments.

Media Contact Frank Coletta (Media & Government Manager) Phone: 0468 987 295 or (02) 9284 3371 Email: frank.coletta@transgrid.com.au Web: www.trangrid.com.au/media

About TransGrid: TransGrid is responsible for the high voltage electricity transmission network in New South Wales. Electricity is generated at power stations, then transmitted by TransGrid to electricity distributors through our network of more than 12,800 kilometres of high voltage transmission lines and substations. Electricity is delivered to homes and businesses by distributors such as Country Energy, Energy Australia and Integral Energy.

Media Release
13 September 2013

TransGrid has been active in promoting a more effective regime and process through submissions made to the State Planning Review, Just Terms Compensation (Act) review and several regulatory submissions. Most recently TransGrid has been leading industry discussions regarding reliability standards with the NSW Department of Trade and Investment and in broader regulatory consultations concerning the planning and investment framework for transmission networks. TransGrid strives to provide a safe, reliable and efficient electricity supply to the people of NSW by getting the balance right between servicing the broader community needs and limiting impact on local communities potentially affected by infrastructure development. Its operations are closely regulated to ensure power system security, reliability and economic efficiency.

ENDS

Media Contact Frank Coletta (Media & Government Manager) Phone: 0468 987 295 or (02) 9284 3371 Email: frank.coletta@transgrid.com.au Web: www.trangrid.com.au/media

About TransGrid: TransGrid is responsible for the high voltage electricity transmission network in New South Wales. Electricity is generated at power stations, then transmitted by TransGrid to electricity distributors through our network of more than 12,800 kilometres of high voltage transmission lines and substations. Electricity is delivered to homes and businesses by distributors such as Country Energy, Energy Australia and Integral Energy.