Victorian Third Party Access Code 
for Natural Gas Pipeline Systems:
Access Arrangement Information 
for Principal and Western Transmission Pipelines by 
Transmission Pipelines Australia Pty Ltd 
and 
Transmission Pipelines Australia (Assets) Pty Ltd
Final as at 30 November 1998

TABLE OF CONTENTS

1. INTRODUCTION	
2. TARGET REVENUE	
3. COST ALLOCATION AND TARIFF SETTING	
4. SYSTEM CAPACITY AND VOLUME ASSUMPTIONS	
5. KEY PERFORMANCE INDICATORS	30

ACCESS ARRANGEMENT INFORMATION FOR PRINCIPAL AND WESTERN TRANSMISSION PIPELINES BY 
TRANSMISSION PIPELINES AUSTRALIA PTY LTD AND 
TRANSMISSION PIPELINES AUSTRALIA (ASSETS) PTY LTD

1.	Introduction
Energy Projects Division of the Victorian Department of Treasury and Finance (“EPD”) on behalf of Transmission Pipelines Australia Pty Ltd and Transmission Pipelines (Assets) Pty Ltd (together “TPA”) submitted to the Australian Competition and Consumer Commission (“ACCC”):
•	on 3 November 1997 Access Arrangement Information (“original AAI”);
•	on 13 March 1998 supplementary Access Arrangement Information (“supplementary AAI1”); and
•	on 16 March 1998 additional supplementary Access Arrangement Information (“supplementary AAI2”).
On 6 October 1998, the ACCC issued its Final Decision (“Final Decision 1”) on the Access Arrangements for TPA.
This Access Arrangement Information (“final AAI”) is submitted together with the revised Access Arrangements for TPA as required by Final Decision 1.
The final AAI must be read together with the original AAI, supplementary AAI1 and supplementary AAI2.
The final AAI updates all relevant tables contained in the original AAI, supplementary AAI1 and supplementary AAI2 having regard to Final Decision 1.
Words and phrases defined in the revised Access Arrangements, original AAI, supplementary AAI1 and supplementary AAI2, as the case may be, have the meaning given to them in those documents unless the context otherwise requires.
Except as varied by Final Decision 1, or except where expressly set out in the final AAI or revised Access Arrangements, as the case may be, the statements of methodology contained in the original AAI, supplementary AAI1 or supplementary AAI2 apply to the tables contained in the final AAI.
All financial values in the tables are in nominal terms unless otherwise stated.

2.	Target revenue 

Table 1: Asset Life
Pipeline Systems	Economic Life
Years	Minimum RL
Years	

Principal Transmission System 			
Transmission Pipelines	38-60	5	
City Gate Regulating Stations	38-60	5	
Field Regulating Stations	39-60	5	
Compressor Stations	30	5	
Odourisation Stations	35	5	
Transmission Pressure Services	45	5	

Western Transmission System			
Transmission Pipelines	37-47	5	
Odourisation Stations	35	5	
Note: Formerly table 2.2(c)(4) in the original AAI.

Table 2: Valuations of TPA’s assets ($ million)
Valuation Methodology	PTS	WTS	Total	
Replacement Costs (RC)		615.7		26.8		642.5	
Depreciated Replacement Cost (DRC)		390.7		24.3		415.0	
Optimised Replacement Cost (ORC)		557.8		26.8		584.6	
Depreciated Optimised Replacement Cost (DORC)		332.9		24.3		357.2	
Adjusted DORC (Policy Reasons)		331.7		15.3		347.0	
Land and buildings (lesser of market value and DRC)				13.1	
Other assets (book value)				2.1	
Total Capital Base				362.2	
Estimated Historical Actual Cost (AC)				287.8	
Estimated Depreciated Actual Cost (DAC)				185.9	
Estimated CCA Valuation				381.9	
Note: Formerly table 3.1 in Final Decision 1.

Table 3: Asset Valuation
Asset Type as at 1 July 1997	RC	DRC	ORC	ODRC	Adjusted ODRC	
	$m	$m	$m	$m	$m	

Principal Transmission System						
Transmission Pipelines	548.9	356.0	499.5	306.6	305.4	
City Gate Regulating Stations	2.7	1.7	2.7	1.7	1.7	
Field Regulating Stations	3.2	2.2	3.2	2.2	2.2	
Compressor Stations	60.8	30.8	52.3	22.4	22.4	
Odourisation Stations	0.1	0	0.1	0	0	
Total Principal Transmission System	615.7	390.7	557.8	332.9	331.7	

Western Transmission System						
Transmission Pipelines	26.7	24.2	26.7	24.2	15.2	
Odourisation Stations	0.1	0.1	0.1	0.1	0.1	
Total Western Transmission System	26.8	24.3	26.8	24.3	15.3	
Total Asset Value	642.5	415.0	584.6	357.2	347.0	
Note: Formerly table 2.2(d)(1) in the original AAI.

Table 4: ORC Asset Value by Zone
Asset Type ORC ($m)
as at 1 July 1997	Zone
1	Zone
2	Zone 
3	Zone
4	Zone
5	Zone
6	Zone
7	Zone
8	Total	

Principal Transmission System										
Transmission Pipelines	55.1	74.3	3.1	233.2	56.0	31.0	10.6	36.2	499.5	
City Gate Regulating Stations				2.7					2.7	
Field Regulating Stations				3.2					3.2	
Compressor Stations		27.8		18.2		6.3			52.3	
Odourisation Stations	0.1								0.1	
Total Asset Value	55.2	102.1	3.1	257.3	56.0	37.3	10.6	36.2	557.8	
Note: Formerly table 2.4(d)(3) in the original AAI.

Table 5: Adjusted ODRC Asset Value by Zone
Asset Type
Adjusted ODRC ($m) as at 1 July 1997	Zone
1	Zone
2	Zone 
3	Zone
4	Zone
5	Zone6	Zone7	Zone8	Total	

Principal Transmission System										
Transmission Pipelines	30.0	39.5	0	147.6	37.8	19.7	7.7	23.1	305.4	
City Gate Regulating Stations				1.7					1.7	
Field Regulating Stations				2.2					2.2	
Compressor Stations		8.5		11.1		2.8			22.4	
Odourisation Stations	0.0								0.0	
Total Asset Value	30.0	48.0	0	162.6	37.8	22.5	7.7	23.1	331.7	
Note: Formerly table 2.2(d)(2) in the original AAI.

Table 6: Non-System Assets
Non-System Assets as at 1 January 1998	$m	

Land and Buildings	
13.4	
Other Assets	2.4	
Total Non-System Assets	15.2	
Note: Formerly table 2.3 in the original AAI.

Table 7: Asset Value 1 January 1998
RL	CCA Asset Value 
$m	
Land	6.7	
5 Years	2.4	
5-20 Years(	21.5	
33 Years	139.2	
36 Years	188.2	
	358.0	
Note: Formerly table 2.2(d)(4) in the original AAI.

Table 8: Capital Expenditure Included in Target Revenue Calculation
		Year Ending 31 December	
Asset Category	Asset Life	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	Total
$m	
Use of System	36 years	15.8	0.1	29.8	0.1	0.1	45.9	
	33 years	0.1	0.1	0.1	1.2	0.1	1.6	
	30 years	0.7	4.0	1.9	0.9	0.4	7.9	
	Other	0.6	0.2	0.2	0.2	0.1	1.3	
Total		17.2	4.4	32.0	2.4	0.7	56.3	
Note: Formerly table 2.4(b) in the original AA2.

Table 9: Major Capital Expenditure Projects
		Year Ending 31 December	
Capital Expenditure
		1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
							
Pipelines - Principal	20 yrs life	0.00	0.00	0.00	0.00	0.00	
	33 yrs life	0.07	0.07	0.07	1.19	0.07	
	36 yrs life	0.08	0.08	29.82	0.08	0.08	
							
Pipelines - Murray Valley	36 yrs life	15.68	0.00	0.00	0.00	0.00	
							
Compressors	Wollert	0.04	1.04	0.03	0.03	0.02	
(existing)	Brooklyn	0.26	1.52	0.78	0.46	0.03	
(new)	Brooklyn	0.00	0.00	1.07	0.0	0.00	
	Gooding	0.37	1.50	0.05	0.36	0.36	
							
Odourisation	Longford	0.08	0.00	0.00	0.00	0.00	
	Paaratte	0.03	0.00	0.00	0.00	0.00	
							
Buildings		0.01	0.03	0.03	0.03	0.03	
							
Other		0.61	0.17	0.18	0.23	0.15	
Total		17.23	4.41	32.03	2.38	0.74	
Note: Formerly table 7 in supplementary AAI2.

Table 10: WACC parameters values
CAPM Parameter	ACCC Final Decision	
Real Risk Free Rate (rrf) %	3.43	
Expected Inflation Rate (f) %	2.50	
Nominal Risk Free Rate (rf) %	6.00	
Cost of debt margin (over rf) %	1.20	
Cost of debt (rd) %	7.20	
Real cost of debt (rrd) %	4.60	
Market Risk Premium (rm - rf) %	6.00	
Corporate Tax Rate (T) %	36	
Effective Tax Rate (Te) %	36	
Usage of Imput. Credits () %	50	
Debt Funding (D/V) %	60	
Debt Beta (d)(a)	0.12	
Asset Beta (a)	0.55	
Equity Beta (e)(b)	1.20	
Nominal Cost of Equityc re = rf + e (rm - rf) %	13.2	
Real Cost of Equityc rre = (1 + re) / (1 + f) - 1 %	10.4	
Note: Formerly table 3.4 in Final Decision 1.

Table 11: WACC estimates based on parameters given in Table 10 
and Commission decisions
CAPM Parameter	ACCC Final Decision	
Nominal Cost of Equity re = rf + e (rm - rf) %	13.2	
Post-Tax Nominal WACC (r0) %
	re [1 - Te) / (1 - Te(1-))].E/V + rd (1 - T).D/V	6.9	
Post-Tax Real WACC (rr0) %
	(1 + r0) / (1 + f) - 1	4.3	
Pre-Tax Nominal WACC (pr) %
	= re / (1 - Te(1-)).E/V + rd.D/V	10.7	
Pre-Tax Real WACC (prr0) % = (1 + pr0) / (1 + f) - 1
	(applicant transformation)	8.0	
Pre-Tax Real WACC (prr0) % = rr0 / (1-T)
	(reverse transformation)	6.7	
Pre-Tax Real WACC (prr0) % 
	Commission Decision	
7.75	
Note: Formerly table 3.5 in Final Decision 1.

Table 12: Total Current Cost Depreciation
Total CCA Depreciation Costs	Year Ending 31 December	

	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total
	12.33	13.11	14.01	14.90	15.07	
Note: Formerly table 5 in supplementary AAI2.

Table 13: Current Cost Depreciation by Zone
CCA Depreciation Costs	Year Ending 31 December	
	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Latrobe	1.08	1.11	1.19	1.17	1.22	
West Gippsland	2.37	2.47	2.62	2.62	2.70	
Lurgi	0.01	0.01	0.01	0.01	0.01	
Metro	5.72	5.93	6.36	7.34	7.31	
Calder	1.08	1.12	1.19	1.17	1.18	
South Hume	0.80	0.84	0.91	0.90	0.92	
Echuca	0.22	0.22	0.24	0.23	0.23	
North Hume	0.70	0.74	0.79	0.77	0.78	
Western	0.20	0.21	0.22	0.22	0.22	
Murray Valley	0.15	0.45	0.47	0.48	0.49	
Total
	12.33	13.11	14.01	14.90	15.07	
Note:	Formerly table 6 in suplementary AAI2

Table 14: Total O&M Costs
Total O&M Costs	Year Ending 31 December	
	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	6.33	6.48	6.53	6.58	6.75	
 Total Materials 	1.04	1.05	1.06	1.06	1.09	
 Total Outside Services	6.39	6.20	5.79	5.24	4.91	
 Occupancy 	0.85	0.86	0.86	0.87	0.89	
 Communications 	0.17	0.18	0.18	0.18	0.18	
 Total Motor Vehicles 	0.70	0.70	0.70	0.71	0.73	
 PC, Furniture, Office Equipment 	0.59	0.55	0.51	0.53	0.56	
 Training and Conferences 	0.27	0.28	0.28	0.29	0.29	
 Travel and Accommodation 	0.26	0.26	0.27	0.27	0.28	
 Miscellaneous Taxes	0.88	0.87	0.88	0.89	0.91	
 Sundry 	0.62	0.62	0.63	0.64	0.66	
 Fuel Gas	1.10	1.14	1.23	1.25	1.30	
 Murray Valley 	0.08	0.20	0.20	0.21	0.21	
 Total 	19.29	19.38	19.11	18.70	18.75	
Note:	Formerly at page 2 of supplementary AAI1

Table 15: Administration and Marketing Costs
Activity 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Administration	1.59	1.59	1.50	1.52	1.59	
Marketing	0.10	0.10	0.11	0.11	0.12	
Total	1.69	1.69	1.61	1.63	1.70	
Note:	Formerly at page 3 of supplementary AAI1

Table 16: O&M Costs - Latrobe Zone
 O&M Costs - Latrobe 		Year Ending 31 December		
 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.30	0.32	0.33	0.33	0.35	
 Total Materials 	0.04	0.05	0.05	0.05	0.05	
 Total Outside Services 	0.29	0.27	0.24	0.23	0.22	
 Occupancy 	0.04	0.04	0.04	0.04	0.05	
 Communications 	0.01	0.01	0.01	0.01	0.01	
 Total Motor Vehicles 	0.04	0.04	0.04	0.04	0.04	
 PC, Furniture, Office Equipment 	0.03	0.03	0.03	0.03	0.03	
 Training and Conferences 	0.01	0.01	0.01	0.01	0.01	
 Travel and Accommodation 	0.01	0.01	0.01	0.01	0.01	
 Miscellaneous Taxes 	0.05	0.05	0.05	0.05	0.05	
 Sundry 	0.03	0.03	0.03	0.03	0.04	
 Fuel Gas 	0.00	0.00	0.00	0.00	0.00	
 Total 	0.85	0.86	0.84	0.84	0.87	
Note:	Formerly at page 3 of supplementary AAI1

Table 17: Administration and Marketing Costs - Latrobe Zone
Activity 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.09	0.09	0.09	0.10	0.10	
Note:	Formerly at page 3 of supplementary AAI1

Table 18: O&M Costs - West Gippsland Zone
 O&M Costs - West Gippsland 		Year Ending 31 December		
 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.64	0.66	0.66	0.67	0.69	
 Total Materials 	0.16	0.16	0.16	0.16	0.16	
 Total Outside Services 	0.96	1.05	1.09	0.94	0.87	
 Occupancy 	0.05	0.05	0.05	0.05	0.05	
 Communications 	0.01	0.01	0.01	0.01	0.01	
 Total Motor Vehicles 	0.08	0.08	0.08	0.08	0.08	
 PC, Furniture, Office Equipment 	0.01	0.01	0.01	0.01	0.01	
 Training and Conferences 	0.04	0.04	0.04	0.04	0.04	
 Travel and Accommodation 	0.02	0.03	0.03	0.03	0.03	
 Miscellaneous Taxes 	0.08	0.08	0.08	0.09	0.09	
 Sundry 	0.03	0.03	0.03	0.03	0.03	
 Fuel Gas 	0.57	0.58	0.62	0.64	0.67	
 Total 	2.65	2.78	2.86	2.74	2.73	
Note:	Formerly at page 4 of supplementary AAI1

Table 19: Administration and Marketing Costs - West Gippsland Zone
Activity 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.00	0.00	0.00	0.00	0.00	
Note:	Formerly at page 4 of supplementary AAI1

Table 20: O&M Costs - Lurgi Zone
O&M Costs - Lurgi 		Year Ending 31 December		
 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.08	0.08	0.08	0.08	0.08	
 Total Materials 	0.01	0.01	0.01	0.01	0.01	
 Total Outside Services 	0.08	0.08	0.07	0.06	0.06	
 Occupancy 	0.01	0.01	0.01	0.01	0.01	
 Communications 	0.00	0.00	0.00	0.00	0.00	
 Total Motor Vehicles 	0.01	0.01	0.01	0.01	0.01	
 PC, Furniture, Office Equipment 	0.01	0.01	0.00	0.00	0.01	
 Training and Conferences 	0.00	0.00	0.00	0.00	0.00	
 Travel and Accommodation 	0.00	0.00	0.00	0.00	0.00	
 Miscellaneous Taxes 	0.02	0.02	0.02	0.02	0.02	
 Sundry 	0.01	0.01	0.01	0.01	0.01	
 Fuel Gas 	0.00	0.00	0.00	0.00	0.00	
 Total 	0.22	0.22	0.21	0.21	0.20	
Note:	Formerly at page 5 of supplementary AAI1

Table 21: Administration and Marketing Costs - Lurgi Zone
Activity 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.02	0.02	0.02	0.02	0.02	
Note:	Formerly at page 5 of supplementary AAI1

Table 22: O&M Costs - Metro Zone
O&M Costs - Metro 		Year Ending 31 December		
	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	3.41	3.40	3.41	3.43	3.50	
 Total Materials 	0.53	0.52	0.52	0.53	0.53	
 Total Outside Services 	2.82	2.66	2.54	2.32	2.20	
 Occupancy 	0.62	0.60	0.60	0.61	0.62	
 Communications 	0.09	0.09	0.09	0.09	0.09	
 Total Motor Vehicles 	0.26	0.25	0.25	0.26	0.26	
 PC, Furniture, Office Equipment 	0.44	0.40	0.37	0.38	0.41	
 Training and Conferences 	0.15	0.15	0.15	0.15	0.15	
 Travel and Accommodation 	0.16	0.16	0.16	0.16	0.17	
 Miscellaneous Taxes 	0.27	0.26	0.27	0.27	0.27	
 Sundry 	0.44	0.43	0.43	0.43	0.44	
 Fuel Gas 	0.53	0.54	0.57	0.57	0.58	
 Total 	9.70	9.46	9.35	9.20	9.23	
Note:	Formerly at page 6 of supplementary AAI1

Table 23: Administration and Marketing Costs - Metro Zone
Activity	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	1.38	1.34	1.26	1.28	1.33	
Note:	Formerly at page 6 of supplementary AAI1

Table 24: O&M Costs - Calder Zone
 O&M Costs - Calder 		Year Ending 31 December				
	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.67	0.69	0.70	0.70	0.71	
 Total Materials 	0.11	0.11	0.11	0.11	0.11	
 Total Outside Services 	0.83	0.78	0.66	0.60	0.55	
 Occupancy 	0.04	0.04	0.04	0.04	0.04	
 Communications 	0.02	0.02	0.02	0.02	0.02	
 Total Motor Vehicles 	0.12	0.12	0.12	0.12	0.13	
 PC, Furniture, Office Equipment 	0.03	0.03	0.02	0.02	0.03	
 Training and Conferences 	0.03	0.03	0.03	0.03	0.03	
 Travel and Accommodation 	0.02	0.02	0.02	0.02	0.02	
 Miscellaneous Taxes 	0.18	0.18	0.18	0.18	0.19	
 Sundry 	0.03	0.03	0.04	0.04	0.04	
 Fuel Gas 	0.00	0.00	0.00	0.00	0.00	
 Total 	2.07	2.05	1.93	1.88	1.85	
Note:	Formerly at page 7 of supplementary AAI1

Table 25: Administration and Marketing costs - Calder Zone
Activity	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.08	0.08	0.07	0.07	0.07	
Note:	Formerly at page 7 of supplementary AAI1

Table 26: O&M Costs - South Hume Zone
 O&M Costs - South Hume 		Year Ending 31 December				
 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.24	0.26	0.27	0.28	0.29	
 Total Materials 	0.04	0.04	0.05	0.05	0.05	
 Total Outside Services 	0.33	0.33	0.31	0.28	0.26	
 Occupancy 	0.01	0.01	0.01	0.01	0.01	
 Communications 	0.01	0.01	0.01	0.01	0.01	
 Total Motor Vehicles 	0.05	0.05	0.05	0.05	0.05	
 PC, Furniture, Office Equipment 	0.00	0.00	0.00	0.00	0.00	
 Training and Conferences 	0.01	0.01	0.01	0.01	0.01	
 Travel and Accommodation 	0.01	0.01	0.01	0.01	0.01	
 Miscellaneous Taxes 	0.07	0.07	0.08	0.08	0.08	
 Sundry 	0.01	0.01	0.01	0.01	0.01	
 Fuel Gas 	0.01	0.02	0.03	0.04	0.05	
 Total 	0.78	0.82	0.83	0.82	0.84	
Note:	Formerly at page 8 of supplementary AAI1

Table 27: Administration and Marketing Costs - South Hume Zone
Activity 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.01	0.01	0.01	0.01	0.01	
Note:	Formerly at page 8 of supplementary AAI1

Table 28: O&M Costs - Echuca Zone
 O&M Costs - Echuca 		Year Ending 31 December				
 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.26	0.26	0.26	0.26	0.27	
 Total Materials 	0.04	0.04	0.04	0.04	0.04	
 Total Outside Services 	0.30	0.28	0.24	0.22	0.20	
 Occupancy 	0.02	0.02	0.02	0.02	0.02	
 Communications 	0.01	0.01	0.01	0.01	0.01	
 Total Motor Vehicles 	0.04	0.04	0.04	0.04	0.04	
 PC, Furniture, Office Equipment 	0.01	0.01	0.01	0.01	0.01	
 Training and conferences 	0.01	0.01	0.01	0.01	0.01	
 Travel and Accommodation 	0.01	0.01	0.01	0.01	0.01	
 Miscellaneous Taxes 	0.06	0.06	0.06	0.06	0.07	
 Sundry 	0.02	0.02	0.02	0.02	0.02	
 Fuel Gas 	0.00	0.00	0.00	0.00	0.00	
 Total 	0.78	0.77	0.72	0.70	0.70	
Note:	Formerly at page 9 of supplementary AAI1

Table 29: Administration and Marketing Costs - Echuca Zone
Activity	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.04	0.04	0.04	0.04	0.04	
Note:	Formerly at page 9 of supplementary AAI1

Table 30: O&M Costs - North Hume Zone
 O&M Costs - North Hume 		Year Ending 31 December				
 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.36	0.42	0.43	0.43	0.43	
 Total Materials 	0.06	0.06	0.06	0.06	0.07	
 Total Outside Services 	0.42	0.41	0.35	0.32	0.30	
 Occupancy 	0.03	0.04	0.04	0.04	0.04	
 Communications 	0.01	0.01	0.01	0.01	0.01	
 Total Motor Vehicles 	0.06	0.06	0.06	0.06	0.06	
 PC, Furniture, Office Equipment 	0.02	0.03	0.03	0.03	0.03	
 Training and Conferences 	0.01	0.02	0.02	0.02	0.02	
 Travel and Accommodation 	0.01	0.01	0.01	0.01	0.01	
 Miscellaneous Taxes 	0.09	0.08	0.09	0.09	0.09	
 Sundry 	0.02	0.03	0.03	0.03	0.03	
 Fuel Gas 	0.00	0.00	0.00	0.00	0.00	
 Total 	1.09	1.18	1.14	1.11	1.10	
Note:	Formerly at page 10 of supplementary AAI1

Table 31: Administration and Marketing Costs - North Hume Zone
Activity	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.06	0.09	0.09	0.09	0.09	
Note:	Formerly at page 10 of supplementary AAI1

Table 32: O&M Costs - Western Zone
 O&M Costs - Western 		Year Ending 31 December				
	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
 Labour 	0.38	0.39	0.39	0.40	0.41	
 Total Materials 	0.06	0.06	0.06	0.06	0.06	
 Total Outside Services 	0.36	0.33	0.29	0.27	0.25	
 Occupancy 	0.05	0.05	0.05	0.05	0.05	
 Communications 	0.01	0.01	0.01	0.01	0.01	
 Total Motor Vehicles 	0.04	0.04	0.05	0.05	0.05	
 PC, Furniture, Office Equipment 	0.04	0.04	0.03	0.04	0.04	
 Training and Conferences 	0.02	0.02	0.02	0.02	0.02	
 Travel and Accommodation 	0.02	0.02	0.02	0.02	0.02	
 Miscellaneous Taxes 	0.06	0.06	0.06	0.06	0.06	
 Sundry 	0.04	0.04	0.04	0.04	0.04	
 Fuel Gas 	0.00	0.00	0.00	0.00	0.00	
 Total 	1.08	1.06	1.01	1.00	1.01	
Note:	Formerly at page 11 of supplementary AAI1

Table 33: Administration and Marketing Costs - Western Zone
Activity 	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Total Administration & Marketing	0.03	0.03	0.02	0.03	0.03	
Note:	Formerly at page 11 of supplementary AAI1

Table 34: Target Revenue
Target Revenue	Year Ending 31 December	

	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Return on Assets	28.8	29.6	30.8	31.8	31.6	
Depreciation	12.3	13.1	14.0	14.9	15.0	
Return on Working Capital	0.7	0.6	0.6	0.7	0.7	
O&M Costs	19.3	19.4	19.1	18.7	18.8	
Total
	61.1	62.7	64.5	66.1	66.0	
Note:	Formerly at table 1 in supplementary AAI2

Table 35: Return on Assets by Zone
Return on Assets	Year Ending 31 December	

	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Latrobe	2.81	2.80	2.92	2.74	2.82	
West Gippsland	4.36	4.36	4.51	4.21	4.14	
Lurgi	0.00	0.01	0.01	0.01	0.01	
Metro	13.75	13.72	14.28	16.29	16.09	
Calder	2.83	2.82	2.94	2.75	2.73	
South Hume	1.75	1.78	1.87	1.76	1.73	
Echuca	0.56	0.55	0.58	0.54	0.54	
North Hume	1.83	1.85	1.92	1.80	1.79	
Western	0.52	0.52	0.54	0.51	0.50	
Murray Valley	0.41	1.25	1.25	1.24	1.24	
Total
	28.83	29.66	30.81	31.87	31.60	
Note:	Formerly table 2 in supplementary AAI1

Table 36: Working Capital by Zone
Working Capital	Year Ending 31 December	
	1998
$m	1999
$m	2000
$m	2001
$m	2002
$m	
						
Latrobe	0.04	0.03	0.04	0.04	0.04	
West Gippsland	0.00	0.00	0.00	0.00	0.00	
Lurgi	0.01	0.01	0.01	0.01	0.01	
Metro	0.55	0.48	0.50	0.51	0.52	
Calder	0.03	0.03	0.03	0.03	0.03	
South Hume	0.00	0.00	0.00	0.00	0.00	
Echuca	0.02	0.01	0.01	0.01	0.01	
North Hume	0.02	0.03	0.03	0.03	0.03	
Western	0.01	0.01	0.01	0.01	0.01	
Murray Valley	0.01	0.01	0.01	0.01	0.01	
Total
	0.68	0.61	0.64	0.65	0.67	
Note:	Formerly table 3 in supplementary AAI2

3.	Cost allocation and tariff setting

Table 37: Cost Pools
Costs	Cost Pool	
System Capital-Related	Peak Locational	
Non-System Capital-Related	Anytime Common	
Locational O&M	Anytime Locational	
Non-Locational O&M	Anytime Common	
Note:	Formerly table 3.3(b)(1) in the original AAI

Table 38: Basis of Allocating Capital-Related Costs
Asset Class	Cost Pool	
Pipeline and In-line Regulators	Peak Locational 	
Compressors	Peak Locational 	
Longford Odourizing Plant	Peak Locational 	
Paraatte Odourizing Plant	Peak Locational 	
Land, Buildings and Other Non-System Assets	Anytime Common	
Note:	Formerly table 3.3(b)(2) in the original AAI

Table 39: O&M Costs - Basis of Allocating
O&M Costs	Cost Pool	
Pipeline and In-line Regulators	Anytime Locational 	
Compressors (including fuel gas)	Anytime Locational 	
Longford Odourizing Plant	Anytime Locational 	
Paraatte Odourizing Plant	Anytime Locational 	
Odourant	Anytime Common	
Land, Buildings and Other Non-System	Anytime Common	
Administration and Management	Anytime Common	
Note:	Formerly table 3.3(b)(3) in the original AAI

Table 40: Basis of Allocating Locational O&M Costs
O&M Related to Asset Classes	Allocation to Each Asset Group	
Pipeline O&M	Allocated in proportion to the length of pipeline in each asset group in relevant transmission system (Principal or Western).	
Compressor O&M	Allocated between compressor stations in accordance with fuel gas usage for each station. The costs for each compressor station are then allocated to the asset group in which the station is located.	
Note:	Formerly table 3.3(b)(c) in the original AAI

Table 41: Tariff Structure
Cost Pool	Structured Tariff Component	
Locational Peak	Allocated to each of the eight delivery zones, the three specific transmission pipeline connection points and to the Longford injection point, these costs are the basis for the peak demand, peak volume and peak injection tariffs for each zone   	
Locational Anytime	Allocated to each of the eight delivery zones and the three specific transmission pipeline connection points, these costs are the basis for the anytime locational volume tariff component for each zone  	
Common Anytime	These costs are the basis for an anytime common volume tariff component	
Note:	Formerly table 3.4(c) in the original AAI

Chart 1: Tariff Target Revenue - Total TPA

Note:	Formerly at page 5 of supplementary AA2

Chart 2: Tariff Target Revenue - Latrobe

Note:	Formerly at page 5 of supplementary AAI2

Chart 3: Tariff Target Revenue - Lurgi

Note:	Formerly at page 6 of supplementary AAI2

Chart 4: Tariff Target Revenue - West Gippsland

Note:	Formerly at page 6 of supplementary AAI2

Chart 5: Tariff Target Revenue - Metro

Note:	Formerly at page 7 of supplementary AAI2

Chart 6: Tariff Target Revenue - Calder

Note:	Formerly at page 7 of supplementary AAI2

Chart 7: Tariff Target Revenue - South Hume

Note:	Formerly at page 8 of supplementary AAI2

Chart 8: Tariff Target Revenue - Echuca

Note:	Formerly at page 8 of supplementary AAI2

Chart 9: Tariff Target Revenue - North Hume

Note:	Formerly at page 9 of supplementary AAI2

Chart 10: Tariff Target Revenue - Western

Note:	Formerly at page 9 of supplementary AAI2 as “Tariff Target Revenue - Coast”

Chart 11: Tariff Target Revenue - Murray Valley

Note:	Formerly at page 10 of supplementary AAI2

Table 42: Target Tariff Revenue Recovered by Zone for 1998
Zone
	Injection Revenue	Tariff D Peak Demand Revenue	Tariff V Peak Volume Revenue	Anytime Volume Revenue	
	$m	$m	$m	$m	
					
Longford Injection	10.07				
Latrobe		0.20	0.06	0.63	
Lurgi		0.06	0.12	0.29	
Metro		5.13	10.27	14.07	
Calder		2.05	3.35	2.68	
South Hume		0.05	0.13	0.08	
Echuca		0.92	0.93	1.29	
North Hume		2.28	2.31	1.73	
Western		0.40	0.29	1.12	
Murray Valley		0.56	0.00	0.09	
Total	10.07	11.64	17.46	21.96	
Note:	Formerly table 4 in supplementary AAI2

Table 43: Charging Basis
	Delivery Service 
Tariff D Customers	Delivery Service 
Tariff V Customers	Injection Service	
Peak Charge	Actual gas delivered on the five days of highest system demand over the peak period (June to September): “Peak Demand”	Actual gas delivered over the peak period (June to September): “Peak Volume”	Actual gas injected on the five Peak Longford Injection days over the peak period (June to September): “Peak Injection” 	
Anytime Delivery Charge	Actual gas delivered over the calendar year	Actual gas delivered over the calendar year	Not charged for Injection	
Note:	Formerly table 3.5(a) in the original AAI

4.	System capacity and volume assumptions
Table 44: System Load Profile
1997	Principal	Western	
Month	GJ	%	GJ	%	
					
Jan	10,871,985	5.39	212,515	7.11	
Feb	10,186,183	5.05	172,762	5.78	
Mar	12,344,443	6.12	180,832	6.05	
Apr	14,704,411	7.29	190,397	6.37	
May	20,231,171	10.03	211,917	7.09	
Jun	23,337,453	11.57	257,051	8.60	
Jul	26,262,198	13.02	307,564	10.29	
Aug	24,245,132	12.02	339,247	11.35	
Sep	18,799,054	9.32	302,782	10.13	
Oct	16,297,893	8.08	300,092	10.04	
Nov	13,030,246	6.46	267,512	8.95	
Dec	11,396,422	5.65	246,290	8.24	
Note:	Formerly table 9 on supplementary AAI2

Table 45: Forecast Demand and Volume
Demand and Volume	1998	1999	2000	2001	2002	
						
Average Demand (TJ/d)	561	580	592	612	623	
Peak Demand (TJ/d)	1,059	1,069	1,087	1,106	1,122	
Annual Volume (PJ)	205	212	216	223	227	
Note:	Formerly table 5.2(c)(1) in the original AAI

Table 46: Forecast Demand and Volume by Zone for 1998
Zone	Anytime Volume
TJ	5 Day Peak Demand
TJ	Peak (Winter) Volume
TJ	
				
LaTrobe	10,869	134	802	
Lurgi	1,950	14	432	
Metro	167,199	1,428	47,623	
Calder	8,325	65	2,672	
South Hume	753	5	287	
Echuca	4,854	38	628	
North Hume	5,876	71	1,183	
Western	2,989	31	465	
Carisbrook	1,209	37	n/a	
Chiltern Valley	171	4	n/a	
Barnawartha	500	0	n/a	
Total	204,696	1,827	54,093	
Note:	Formerly table 5.2(c)(2) in the original AAI

Table 47: Annual Volume Forecast
TJ	1998	1999	2000	2001	2002	

Injection on 5 peak days
Tariff V
Tariff D	
3,059
1,827	
3,159
1,937	
3,236
1,954	
3,309
1,971	
3,382
1,989	
Total	4,886	5,096	5,190	5,280	5,371	

Anytime Volume 
Tariff V
Tariff D	
99,860
104,835	
102,271
106,345	
104,677
111,374	
107,046
116,399	
109,508
117,818	
Total	204,696	211,616	216,052	223,445	227,326	
Peak Demand (Tariff D) 5 peak days	1,827	1,937	1,954	1,971	1,989	
Note:	Formerly table 8 in supplementary AAI2

5.	Key Performance Indicators

Table 48: Comparable Operational KPIs
Company	TPA	AlintaGas	Pipeline Authority	PASA	
					
State	Victoria	WA	NSW	SA	
Year	95/6	95/6	94/5	94/5	
$m	21.4	26.0	19.6	13.1	
$m/1000 km	9.7	13.3	10.1	9.9	
c/GJ	9.6	17.5	21.3	16.0	
Note:	Formerly table 6.2(a) in original AAI

Table 49: TPA KPIs
Forecast O&M Costs	1998	1999	2000	2001	2002	
$m	19.3	19.4	19.1	18.7	18.7	
$m/1000 km	10.9	10.9	10.8	10.3	10.3	
c/GJ	9.4	9.2	8.8	8.4	8.2	
Note:	Formerly table 6.2(b) in original AAI

Table 50: KPIs by Zone
Details	Unit	1998	1999	2000	2001	2002	
							
TPA System							
O&M	$m	19.3	19.4	19.1	18.7	18.7	
Throughput	PJ	204.7	211.6	216.1	223.4	227.3	
KPI	c/GJ	9.4	9.2	8.8	8.4	8.2	
							
Latrobe							
O&M	$m	0.5	0.5	0.5	0.5	0.6	
Throughput	PJ	10.9	11.9	12.8	13.6	14.4	
KPI	c/GJ	4.5 	4.2	4.0	3.9	3.9	
							
Lurgi							
O&M	$m	0.3	0.3	0.2	0.2	0.2	
Throughput	PJ	2.0	2.1	2.2	2.2	2.2	
KPI	c/GJ	13.7	12.5	11.5	11.0	10.7	
							
Metro							
O&M	$m	11.9 	11.8 	11.7 	11.3	11.3	
Throughput	PJ	167.2	168.9 	171.3 	177.4 	180.2	
KPI	c/GJ	7.1 	7.0 	6.8 	6.4 	6.3	
							
Calder							
O&M	$m	2.6 	2.6 	2.4 	2.5 	2.5	
Throughput	PJ	9.5 	9.7 	9.9 	10.1 	10.1	
KPI	c/GJ	26.8 	26.3 	24.8 	25.1 	24.4	
							
South Hume							
O&M	$m	0.1 	0.1 	0.1 	0.1 	0.1	
Throughput	PJ	0.8 	0.8 	0.8 	0.8 	0.8	
KPI	c/GJ	9.4 	9.8 	9.4 	9.1 	9.1	
							
Echuca							
O&M	$m	1.2 	1.3 	1.2 	1.2 	1.2	
Throughput	PJ	4.9 	4.9 	5.0 	5.1 	5.1	
KPI	c/GJ	25.2 	25.8 	24.4 	23.4 	23.3	
							
North Hume							
O&M	$m	1.6 	1.7 	1.7 	1.6 	1.7	
Throughput	PJ	6.5 	9.9 	10.5 	10.6 	10.8	
KPI	c/GJ	25.1 	17.1 	16.0 	15.5 	15.4	
							
Western							
O&M	$m	1.1 	1.1 	1.0 	1.0 	1.0	
Throughput	PJ	3.0 	3.3 	3.6 	3.7 	3.7	
KPI	c/GJ	36.0 	31.7 	28.0 	27.3 	27.3	
							
Murray Valley							
O&M	$m	0.1 	0.2 	0.2 	0.2 	0.2	
Throughput	PJ	0.2 	0.9 	1.4 	1.5 	1.6	
KPI	c/GJ	46.6	21.2 	14.2 	13.7 	13.1 	
Note:	Formerly table 10 in supplementary AAI2

Table 51: Tariff Comparisons
Company	TPA	EAPL	EPIC	EPIC	Alinta	
State	VIC	NSW	SA	QLD	WA	
From/To	Longford/
Pakenham	Moomba/
Wilton	Moomba/
Adelaide	Ballera/
Wallumbilla	Dampier/
Perth	
c/GJkm	0.017	0.054	0.057	0.093	0.100	
Note:	Formerly table 6.3 in the original AAI