2012 Gas Rate of Return Guidelines Review

The Rate of Return Guidelines set out the ERA's approach under the National Gas Rules for determining the rate of return for gas transmission pipelines and distribution networks. The 2013 guideline was the first to be produced by the ERA.

Public Submissions

Date	Documents	File type
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Alinta Energy	278 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - GGT	3 MB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Water Corporation	125 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Wesfarmers Chemicals, Energy & Fertilisers	173 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - WA Treasury Corporation	586 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Dampier Bunbury Pipeline	493 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - ATCO Gas Australia	301 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - United Energy and Multinet Gas	74 kB
6-Nov-13	Supplementary Letter and Materials - Energy Networks Association	101 kB
	Appendix A - ENA Response to Draft AER Rate of Return Guidelines	1.3 MB
	Appendix B - ENA - Awarding of Nobel Prize to Eugene Fama for Asset Pricing	41 kB
	Appendix C - Nobel Prize Background Paper Understanding Asset Prices	898 kB
	Appendix D - Jonesday External Memorandum - Envestra Case	219 kB
	Attachment 1 - NERA Report - Fama-French Model	725 kB
	Attachment 2 - SFG Report - Reconciliation of DDM estimates	922 kB
	Attachment 3 - NERA Report - The Market Risk Premium	770 kB
	Attachment 4 - NERA Report - Imputation Credits and Equity Prices	667 kB
	Attachment 5 - SFG Report - Using Market Data to Estimate Value of Distributed Credits	306 kB
	Attachment 6 - Hathaway Capital Research - Imputation Credit Redemption ATO Data	3 MB
	Attachment 7 - PWC Letter - Response to Criticism of CEG-PWC Report	351 kB
	Attachment 9 - CEG Report - Mechanistic Cost of Debt Extrapolation	474 kB
	Attachment 10 - CEG Report - Review of Lally and Chairmont Reports	357 kB
7-Oct-13	Public Submission - DBP - Draft Rate of Return Guidelines	1.9 MB
	ACIL-Allen Efficiency Study	855 kB
	SFG BETA Study	812 kB
	CEG BETA Study	710 kB
	CEG Credit Risk Study	594 kB
7-Oct-13	United Energy and Multinet Gas - Review of Competition Economist's Group Report Estimating the debt risk premium	627 kB
	United Energy and Multinet Gas - ESQUANT Statistical Consulting Report	1.5 MB
	United Energy and Multinet Gas - Capital Research Report	2 MB
7-Oct-13	Public Submission - Western Australian Treasury Corporation (WATC) - Draft Rate of Return Guidelines	890 kB
7-Oct-13	Public Submission - Water Corporation - Draft Rate of Return Guidelines	252 kB
7-Oct-13	Public Submission - Goldfields Gas Transmission (GGT) - Draft Rate of Return Guidelines	2 MB
7-Oct-13	Public Submission - DUET Group - Draft Rate of Return Guidelines	1.2 MB
7-Oct-13	Public Submission - Australian Pipeline Industry Association (APIA) - Draft Rate of Return Guidelines	433 kB
7-Oct-13	Public Submission - ATCO Gas Australia - Draft Rate of Return Guidelines	1.9 MB
7-Oct-13	Public Submission - APA Group - Draft Rate of Return Guidelines	4 MB
7-Oct-13	Public Submission - Energy Networks Association - Draft Rate of Return Guidelines	972 kB
	Review of Cost of Equity Models	1 MB
	Estimates of the Zero-Beta Premium	1 MB
	Dividend discount model estimates of the cost of equity	1 MB
	Evidence on the required return on equity from independent expert reports	827 kB
	Estimating the return on the market	770 kB
	Estimating E[Rm]: in the context of recent regulatory debate	2 MB
	Regression-based estimates of risk parameters for the benchmark firm	446 kB
	The Vasicek adjustment to beta estimates in the Capital Asset Pricing Model	343 kB
	Information on equity beta from US companies	1.9 MB
	Comparison of OLS and LAD regression techniques for estimating beta	298 kB
	Assessing the reliability of regression-based estimates of risk	414 kB
	The Payout Ratio	668 kB
	Updated dividend drop-off estimate of theta	544 kB
	Term of the risk free rate for the cost of equity	1 MB
	The Market, Size and Value Premiums	1 MB
	Credit Ratings for Regulated Energy Network Services Businesses	844 kB
	Debt strategies of utility businesses	1 MB
	Estimating the debt risk premium	3 MB
	Energy Networks Association: Debt financing costs	497 kB
	Energy Networks Association: Benchmark term of debt assumption	385 kB
	Energy Networks Association: Potential impact of the ERA’s DRP methodology	537 kB
1-Aug-13	Public Submission - Western Australian Treasury Corporation - Cost of Debt working paper	266 kB
1-Aug-13	Public Submission - DBNGP (WA) Transmission Pty Limited - Cost of Debt working paper	429 kB
1-Aug-13	Public Submission - APA Group - Cost of Debt working paper	113 kB
1-Aug-13	Public Submission - Goldfields Gas Transmission Pty Ltd - Cost of Debt working paper	4 MB
21-Mar-13	Public Submission - WA Treasury Corporation	2.4 MB
13-Mar-13	Public Submission - Western Australian Major Energy Users Group	373 kB
13-Mar-13	Public Submission - Energy Networks Association (ENA)	208 kB
13-Mar-13	Public Submission - Wesfarmers Chemicals, Energy & Fertilisers	3.7 MB
13-Mar-13	Public Submission - The Australian Pipeline Industry Association (APIA)	3.1 MB
13-Mar-13	Public Submission - ATCO Gas Australia	1.9 MB
13-Mar-13	Public Submission - United Energy and Multinet Gas	1 MB
13-Mar-13	Public Submission - Goldfields Gas Transmission Pty Ltd	5.1 MB
13-Mar-13	Public Submission - APA Group	113 kB
13-Mar-13	Public Submission - United Energy and Multinet Gas	300 kB
13-Mar-13	Public Submission - DBP	6.04 MB

Rate of Return Guidelines

Date	Documents	File type
16-Dec-13	Appendices to the Explanatory Statement for the Rate of Return Guidelines Meeting the requirements of the National Gas Rules	3 MB
16-Dec-13	Explanatory Statement for the Rate of Return Guidelines	3 MB
16-Dec-13	Rate of Return Guidelines	684 kB

Papers

Date	Documents	File type
12-Nov-13	Gas - Rate of Return Guidelines 2013 - Summary of Secretariat Workshop 7 November 2013	78 kB
05-Nov-13	Cost of Debt Comparative Analysis Report Final 4 November 2013	265 kB
05-Nov-13	ERA publication - estimating the return of equity	816 kB
06-Aug-13	Consultants Report - Review of Risk Free Rate Calculation by Strategic Information Consultants	2 MB
06-Aug-13	Draft Rate of Return Guidelines - Meeting the requirements of the National Gas Rules	205 kB
06-Aug-13	Explanatory Statement for the Draft Rate of Return Guidelines - Meeting the requirements of the National Gas Rules	4 MB
01-Aug-13	ERA Cost of Debt workshop summary of points	38 kB
17-Jun-13	Working Paper - On the benchmark cost of debt Efficiency considerations	573 kB
20-Dec-12	Consultation Paper_RoR Guidelines_for publication	549 kB

Public Submissions

Date	Documents	File type
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Alinta Energy	278 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - ATCO Gas Australia	300 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Dampier Bunbury Pipeline	492 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - GGT	3 MB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - United Energy and Multinet Gas	73 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - WA Treasury Corporation	585 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Water Corporation	125 kB
19-Nov-13	Public submission - development of the Rate of Return Guidelines - Wesfarmers Chemicals, Energy & Fertilisers	173 kB
07-Nov-13	Attachment A - ENA Response to Draft AER Rate of Return Guideline	1 MB
07-Nov-13	Attachment B - ENA - Awarding of Nobel Prize to Eugene Fama for Asset Pricing	41 kB
07-Nov-13	Attachment C - Nobel Prize Background Paper Understanding Asset Prices	898 kB
07-Nov-13	Energy Networks Association - Letter	101 kB
01-Aug-13	Public Submission - APA Group - Rate of Return Guidelines Review	112 kB
01-Aug-13	Public Submission - DBNGP (WA) Transmission Pty Limited - Rate of Return Guidelines Review	428 kB
01-Aug-13	Public Submission - Goldfields Gas Transmission Pty Ltd - Rate of Return Guidelines Review	4 MB
01-Aug-13	Public Submission - Western Australian Treasury Corporation - Rate of Return Guidelines Review	265 kB
21-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks Issues Paper - WA Treasury Corporation	2 MB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - APA Group	113 kB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - ATCO Gas Australia	2 MB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - DBP	6 MB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Energy Networks Association (ENA)	207 kB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Goldfields Gas Transmission Pty Ltd	5 MB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - United Energy and Multinet Gas	301 kB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - United Energy and Multinet Gas	1 MB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Wesfarmers Chemicals, Energy & Fertilisers	4 MB
13-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Western Australian Major Energy Users Group	372 kB
12-Mar-13	Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - The Australian Pipeline Industry Association (APIA)	3 MB

Public Submissions received in response to Draft Guidelines

Date	Documents	File type
06-Nov-13	Appendix D - Jonesday External Memorandum - Envestra Case	219 kB
06-Nov-13	Attachment 1 - NERA Report - Fama-French Model	725 kB
06-Nov-13	Attachment 10 - CEG Report - Review of Lally and Chairmont Reports	356 kB
06-Nov-13	Attachment 2 - SFG Report - Reconciliation of DDM estimates	921 kB
06-Nov-13	Attachment 3 - NERA Report - The Market Risk Premium	769 kB
06-Nov-13	Attachment 4 - NERA Report - Imputation Credits and Equity Prices	666 kB
06-Nov-13	Attachment 5 - SFG Report - Using Market Data to Estimate Value of Distributed Credits	305 kB
06-Nov-13	Attachment 6 - Hathaway Capital Research - Imputation Credit Redemption ATO Data	3 MB
06-Nov-13	Attachment 7 - PWC Letter - Response to Criticism of CEG-PWC Report	350 kB
06-Nov-13	Attachment 9 - CEG Report - Mechanistic Cost of Debt Extrapolation	474 kB
05-Nov-13	workshop agenda	89 kB
07-Oct-13	DBP - ACIL Allen Efficiency Study	854 kB
07-Oct-13	DBP - CEG Beta Study	812 kB
07-Oct-13	DBP - CEG Credit Ratings Study	709 kB
07-Oct-13	DBP - cover letter and submission	2 MB
07-Oct-13	DBP - SFG Beta Study	593 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 1 - Alternative Cost of Equity Models	1 MB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 10 - OLS and LAD Estimation	297 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 11 - Beta Reliability	414 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 12 - Payout Ratio	667 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 13 - Dividend Dropoff Study	544 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 14 - Term of the Risk Free Rate	1 MB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 15 - ENAMRP Report	2 MB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 16 - Credit Ratings for NSPs	843 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 17 - Debt strategies report	1 MB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 18 - Estimating the Debt Risk Premium	4 MB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 19 - Debt Raising and Refinancing Costs	497 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 2 - Black CAPM Zero Beta Estimate	1,021 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 20 - Benchmark Term of Debt	384 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 21 - Potential Impact of ERA's DRP Methodology	536 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 3 - DGM Estimate	1 MB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 4 - Use of Independent Expert Reports	827 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 5 - Expected Return on the Market	769 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 6 - Expected Return on the Market Companion Report	2 MB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 7 - Beta Parameter Estimates	445 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 8 - Vasicek Adjustment	342 kB
07-Oct-13	Energy Networks Association - Draft Rate of Return Guidelines - Report 9 - US Beta Comparables	2 MB
07-Oct-13	public submission - APA Group - draft rate of return guidelines	5 MB
07-Oct-13	Public submission - ATCO Gas Australia - draft rate of return guidelines	2 MB
07-Oct-13	Public Submission - Australian Pipeline Industry Association (APIA) - draft rate of return guidelines	433 kB
07-Oct-13	public submission - DUET Group + draft rate of return guidelines	1 MB
07-Oct-13	Public Submission - Energy Networks Association - Draft Rate of Return Guidelines	972 kB
07-Oct-13	public submission - Goldfields Gas Transmission (GGT) - Draft Rate of Return Guidelines	2 MB
07-Oct-13	Public submission - Water Corporation - draft rate of return guidelines	251 kB
07-Oct-13	Public Submission - Western Australian Treasury Corporation (WATC) - draft rate of return guidelines	890 kB
07-Oct-13	United Energy and Multinet Gas - Capital Research	2 MB
07-Oct-13	United Energy and Multinet Gas - ESQUANT Statistical Consulting	1 MB
07-Oct-13	United Energy and Multinet Gas - Review of Competition Economist's Group Report Estimating the debt risk premium - A Report for United Energy	627 kB

Page last updated: 13 Jul 2021