SCHEDULE OF FEES AND CHARGES FOR GENERATOR CONNECTIONS

SCHEDULE OF FEES AND CHARGES FOR GENERATOR CONNECTIONS PREPARED BY: Netwrk Develpment VERSION: 4.0 RELEASE DATE: 11 September 2017

Versin Release Histry Versin Date Apprved 1.0 14 Dec 11 Transmissin Services 2.0 1 Jul 12 Netwrk Develpment 3.0 27 Sep 12 Netwrk Develpment 4.0 11 Sep 17 Netwrk Develpment

Imprtant Ntice Purpse This dcument is prvided by AEMO as at September 2017 fr general infrmatin purpses nly. Disclaimer This dcument r the infrmatin in it may be subsequently updated r amended. This dcument des nt cnstitute legal r business advice, and shuld nt be relied n as a substitute fr btaining detailed advice abut the Natinal Electricity Law, the Natinal Electricity Rules, r any ther applicable laws, prcedures r plicies. AEMO has made every effrt t ensure the quality f the infrmatin in this dcument but cannt guarantee its accuracy r cmpleteness. Accrdingly, t the maximum extent permitted by law, AEMO and its fficers, emplyees and cnsultants invlved in the preparatin f this dcument: make n representatin r warranty, express r implied, as t the currency, accuracy, reliability r cmpleteness f the infrmatin in this dcument; and are nt liable (whether by reasn f negligence r therwise) fr any statements r representatins in this dcument, r any missins frm it, r fr any use r reliance n the infrmatin in it. 2017 Australian Energy Market Operatr Limited. The material in this publicatin may be used in accrdance with the cpyright permissins n AEMO s website.

Cntents 1 Intrductin... 5 2 Imprtant Ntes... 5 3 Due Diligence Activities... 7 4 New Generatr Transmissin Cnnectins in Victria... 8 5 Altered Generating Systems... 9 6 AEMO's Schedule f Rates... 9 Versin 4.0 Page 4 f 9

1 Intrductin This dcument prvides estimates f AEMO s fees and charges fr its activities in respect f generatr cnnectins in the NEM (Natinal Electricity Market). The estimates represent a standard cnnectin with typical cmmercial terms. AEMO s csts are determined by a range f factrs including: the lcatin f the cnnectin pint and cmplexity f the cnnectin prpsed whether the cnnectin is t the transmissin r distributin system the size f the generatin prject whether it is a new cnnectin r fr alteratin f an existing generating system. the type f cnnectin (i.e. cntestable, nn-cntestable) the extent f cmmercial negtiatin required the extent f legal drafting required Fr generatr cnnectins in the NEM utside Victria and fr generatr cnnectins t the distributin system within Victria, AEMO s rle as pwer system and market peratr is limited t the assessment f access standards termed AEMO advisry matters and the cmmissining and review f R2 test data. Fr generatr cnnectins t the transmissin system within Victria, AEMO als prvides shared transmissin services t netwrk users. These additinal functins are reflected in AEMO s csts fr these cnnectins. 2 Imprtant Ntes Cnnectin applicants shuld nte that the fllwing assumptins are made when prviding the indicative cst estimates: Cst estimates represent AEMO s fees and charges nly. Cnnectin applicants shuld als liaise with the relevant declared transmissin system peratr (DTSO) in relatin t their csts fr new cnnectins t the Declared Shared Netwrk (DSN) in Victria, and with the cnnecting netwrk service prvider (NSP) fr all ther cnnectins. The cst estimates are indicative nly and actual csts may be higher r lwer than indicated depending n the cmplexity f the prject and the quality f infrmatin prvided by the cnnectin applicant. These estimates assume that: the cnnectin applicant prvides AEMO with technical data and simulatin mdels that meet AEMO s mdel guideline requirements at the start f any and all wrks; the simulatin mdels are prvided in PSS/E frmat. Mdels prvided in ther frmats are required t be cnverted t PSS/E frmat fr assessment, requiring additinal time and incurring additinal cst. there will nly be tw runds f review by AEMO in relatin t all initial technical data prvided by the applicant. nce the review is cmpleted n further changes are made by the applicant t either the data, mdels r parameters after AEMO s wrk has cmmenced; fr due diligence assessments,(i.e. generatr cnnectins in the NEM utside Victria, and generatr cnnectins t the distributin system in Victria) the cnnecting NSP has already perfrmed a rbust review f the cnnectin applicatin data received, and has undertaken analysis f all perfrmance standards prir t releasing them t AEMO; and Versin 4.0 Page 5 f 9

during cmmissining r pst-cmmissining, the generating system perfrms as riginally negtiated, and there is n need t change cntrl system settings r renegtiate agreed perfrmance standards. Estimates assume AEMO s internal resurces are used. Where internal resurces are nt available and external resurces must be engaged t assist with prcessing an applicatin, AEMO will discuss this with the applicant first. The applicant can then chse either t pay fr the cst f external resurces, which will be passed thrugh by AEMO, r elect t delay the applicatin until internal resurces are available. Extra csts may be incurred if applicants wish t negtiate nn-standard cmmercial terms and cnditins and/r raise issues that require the use f external lawyers and additinal time fr AEMO s staff. AEMO will discuss this with the applicant. The applicant can then chse either t accept the standard terms and cnditins r pay fr the cst f additinal resurces and accept that ptential delays may be incurred thrugh this apprach. Wrk is undertaken in nrmal wrking hurs nly. Extra csts will be incurred fr wrk carried ut utside these hurs, either vernight r during weekends and public hlidays. Estimates d nt include: registratin fees prvisin fr site visits (AEMO has the right t witness cmmissining tests and, where site visits are required, the applicant will be required t pay AEMO fr staff time and ut-f-pcket expenses such as travel and accmmdatin). Fees and hurly rates will be reviewed frm time t time. Versin 4.0 Page 6 f 9

3 Due Diligence Activities These fees and charges apply t all new generatr cnnectins in the NEM utside Victria and fr generatin cnnectins t the distributin system in Victria. AEMO undertakes nly due diligence activities fr new generatr cnnectins in the NEM utside Victria and fr generatr cnnectins t the distributin system in Victria. Cnnectin applicants shuld als liaise with the relevant DTSO in relatin t their csts fr new cnnectins t the DSN in Victria, and with the cnnecting NSP fr all ther cnnectins. Table 3-1 prvides a breakdwn f indicative csts fr due diligence activities, by nameplate capacity f the new generating system (5-30 MW and greater than 30 MW). Nte that fr nn-dsn cnnectins, a lwer level f technical assessment is required. Prject Phase Detail >5MW & <30MW 30MW Applicatin data review & respnse 2,000-4,000 10,000-18,000 Cnnectin Applicatin Assessment f Prpsed Perfrmance Standards 17,000-31,000 38,000-70,000 Cnnectin Applicatin Prcess Management 3,000-6,000 6,000-10,000 Cmmissining & R2 Testing Cmmissining Planning & Crdinatin 2,000-3,000 5,000-8,000 Review & Apprve Cmmissining Results 2,000-4,000 6,000-10,000 Review & Apprve Cmmissining Reprt 1,000-2,000 5,000-8,000 Review & Apprve R2 Testing Reprt - 5,000-8,000 Table 3-1: AEMO s indicative csts by nameplate capacity Estimated AEMO Cst Range $27,000 - $50,000 $75,000 - $132,000 Versin 4.0 Page 7 f 9

4 New Generatr Transmissin Cnnectins in Victria These fees and charges apply t all new generatr transmissin cnnectins in Victria. Table 4-1 prvides a breakdwn f csts as estimated ranges fr typical 'small' and 'large' prjects. A small prject is ne that is greater than 30MW and des nt require augmentatin t the DSN. A large prject is ne that is greater than 30MW and requires an augmentatin t the DSN t enable cnnectin. This augmentatin wuld cnsist f cntestable (e.g. a new terminal statin) wrks and/r nn-cntestable (i.e. interface and ther minr and nn-separable) wrks. Prject Phase Detail Small Prject Large Prject Applicatin data review & respnse 6,000-10,000 12,000-23,000 Cnnectin Applicatin Assessment f Prpsed Perfrmance Standards 35,000-66,000 56,000-104,000 Primary & Secndary Functinal Specificatin 8,000-15,000 19,000-35,000 Develp AEMO Operatinal Planning Advice 5,000-8,000 10,000-19,000 Cnnectin Applicatin Prcess Management 5,000-8,000 8,000-15,000 Prcurement & Cmmercial Prcurement f Services, Negtiatin and Finalisatin f Cntracts 6,000 10,000 140,000 260,000 1 Cmmissining & R2 Testing Cmmissining Planning & Crdinatin 6,000-10,000 8,000-15,000 Review & Apprve Cmmissining Results 6,000-10,000 8,000-16,000 Review & Apprve Cmmissining Reprt 5,000-8,000 6,000-10,000 Review & Apprve R2 Testing Reprt 5,000-8,000 6,000-10,000 Cmmercial & Legal Supprt (e.g. Practical Cmpletin) - 5,000-8,000 Estimated AEMO Cst Range $87,000 - $153,000 $278,000 - $515,000 Nte 1: These fees d nt include any external legal csts Table 4-1: AEMO s indicative csts by size f prject Versin 4.0 Page 8 f 9

5 Altered Generating Systems These fees and charges apply t all alteratins t cnnected generating systems in the NEM, including Victria. Table 5-1 prvides a breakdwn f csts as estimated ranges. Please nte, the scpe f wrks fr an altered generating system can range frm relatively minr mdificatins f secndary wrks t extensive upgrades f plant cntrls. This therefre creates a wide range fr the estimated csts. Prject Phase Detail >5MW & <30MW 30MW Assessment Applicatin/Ntificatin data review & respnse 2,000 4,000 10,000-18,000 Assessment f Prpsed Perfrmance Standards 1,000-31,000 4,000-70,000 Alteratin Prcess Management 3,000-6,000 6,000-10,000 Cmmissining & R2 Testing Cmmissining Planning & Crdinatin 2,000-3,000 5,000-8,000 Review & Apprve Cmmissining Results 2,000-4,000 6,000-10,000 Review & Apprve Cmmissining Reprt 1,000-2,000 5,000-8,000 Review & Apprve R2 Testing Reprt - 5,000-8,000 Estimated AEMO Cst Range $11,000 - $50,000 $41,000 - $132,000 Please Nte cmmercial csts are nt prvided as they depend n the type f alteratin and are fr VIC nly Table 5-1: AEMO s indicative csts fr an altered generating system 6 AEMO's Schedule f Rates Table 6-1 sets ut AEMO's hurly rates fr different types f staff invlved in prcessing an applicatin. These rates exclude GST and take effect frm September 2017. Staff Grade Hurly Rate Prject Management, Cmmercial, Legal and Experienced Engineering Resurces $210 Table 6-1: AEMO s hurly rates Engineers and Analysts $150 Versin 4.0 Page 9 f 9