Electricity transmission and distribution WACC parameters review

Review
Sector: 
Electricity
Segment: 
Distribution
Transmission
Region: 
Queensland
New South Wales
Australian Capital Territory
Victoria
South Australia
Tasmania
Status: 
Historical
Date completed: 
1 May 2009
Date initiated: 
6 August 2008
Effective date: 
1 May 2009

Overview

The National Electricity Rules (NER) provide that the AER may review the weighted average cost of capital (WACC)parameters to be adopted in determinations for electricity transmission and distribution businesses. Reviews are to be conducted at intervals of five years, with the first interval starting from 31 March 2009.

Key documents

Documents Author
Attachment A - Handley - Further comments on the value of imputation credits ( PDF 224 KB ) John C Handley
Attachment B - Handley - Further comments on the historical equity risk premium ( PDF 188.9 KB ) John C Handley
Attachment C - Henry - Estimating beta ( PDF 965.18 KB ) Olan T Henry
Attachment D - Handley - Further comments on the Sharpe CAPM ( PDF 89.5 KB ) John C Handley
Final decision - Review of electricity transmission and distribution WACC parameters - 1 May 2009 ( PDF 3.19 MB ) AER
Final statements - Review of electricity transmission and distribution WACC parameters - 1 May 2009 ( PDF 169.92 KB ) AER

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