LRMC Estimates for CitiPower, Powercor & United Energy

This document is a technical report that outlines the development of Long Run Marginal Cost (LRMC) estimates for CitiPower, Powercor, and United Energy. It details the regulatory requirements that necessitate these estimates, emphasizing the importance of allocative efficiency in tariff development. The report explains the approach adopted for calculating the LRMC, specifically the Average Incremental Cost (AIC) method, which is preferred due to its suitability for consistent investment profiles. The document also describes the types of services for which LRMC estimates have been generated, including both import and export services. It provides a breakdown of the costs involved and the demand growth considered in the LRMC calculations. Additionally, the report presents the results of the LRMC analysis, including specific figures for various voltage levels across the three entities. Overall, the document serves as a comprehensive guide for regulatory submissions related to LRMC estimates.