Transcript New Cost Estimate Template

New Cost Estimate Template
Issued: December 11, 2014
Effective: January 5, 2015
Change Description
The AESO has issued a revised Cost Estimate Template to be used
for transmission projects for all project stages:
• Long-term Transmission Plan (LTP) or Order Of Magnitude
• Needs Identification Document (NID)
• Proposal to Provide Service (PPS)
• 180 day PPS
• Approved Cost Estimate (ACE)
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Stakeholder Comments
Stakeholders expressed general support of the AESO’s efforts
to enhance cost estimating quality and reporting and indicated
a desire to participate in such initiatives.
The AUC indicated “… any enhancements of the templates
should consider information needs of the AESO, as well as the
Commission, as well as the need for more meaningful and
focused reporting of information.”
Source: AESO Recommendation Paper – Transmission Cost Accountability
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Change Rationale
The revised template will:
• improve consistency in all cost estimates as the project moves
through the stages
• increase the AESO’s understanding of the cost estimates and
changes in the cost estimates as they occur
• provide detailed information that will be used to populate the
AESO’s benchmarking database
• reduce cost-related information requests sent to the TFOs during
AESO review of the PPS and Change Proposals
• provide a basis for which final costs can be compared with the
estimates
• provide detailed cost estimate information and explanations to
better inform decisions on cost reasonableness and prudency
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What has Changed?
• Additional tabs for:
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Transmission Line - Underground
Procurement, Project Management, Construction Management
Escalation
Contingency
• Additional columns for:
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Quantity
Types of Materials
Subcontract Amount
TFO Assumptions
• Other Considerations:
– Greater detail for all project material and labour items
– Additional category for supply and install (turnkey) sourcing
– Industry wide use of a single template
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Change Management
• The AESO will direct all TFOs to use the revised template on new
projects going forward
– TFOs may choose to use the revised template on projects that already have
been directed
• TFOs should delete the previous version of the Cost Estimate Template
and download the revised template from the AESO website
• If the level of detail cannot be provided as requested, the TFO is
expected to provide reasons why this information is not available and roll
up costs
– The AESO acknowledges the level of detail requested in the early stages of a
project may not be available based on the level of project definition available
• Note that the Proposal to Provide Service guideline has also been
updated and is available on the AESO web-site
• In early 2015, the AESO will work to make related changes to the Monthly
Report, Change Proposals and Final Cost Reports templates
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Implementation Considerations
• The revised cost estimate template is available on the AESO’s website;
effective January 5, 2015
• No changes to directions letters are required
• An instructional guideline has been provided with the template
• Minor changes will be made to the Service Proposal template
• The new template anticipates revisions to ISO Rule 9.1.2 which includes
adoption of AACE practices
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Questions
• If you have questions
regarding the revised cost
estimate template, please
contact:
– [email protected]
– Your assigned AESO Project
Manager
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