Draft Decisions

The draft decisions paper relating to the authorisation for supply of the controlled gas distribution services of Powerco and Vector was published on 18 October 2007.

Supporting Documents

Cross Submissions on Draft Decisions Conference

(33 documents)

Auckland Energy Consumer Trust - Cross Submission on Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco and Vector - 14 March 2008 Adobe Acrobat PDF (242 KB) (opens in a new window)
Auckland Energy Consumer Trust - Cross Submission on Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco and Vector - Cover Letter - 14 March 2008 Adobe Acrobat PDF (28 KB) (opens in a new window)
Babcock & Brown Infrastructure - Cross Submission - Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd - 14 March 2008 Adobe Acrobat PDF (239 KB) (opens in a new window)
Babcock & Brown Infrastructure - Spreadsheet - Building Blocks Example Adobe Acrobat PDF (15 KB) (opens in a new window)
BARNZ - Cross Submission by BARNZ on draft decision paper on Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd (draft Auhtorisation) - 6 March 2008 Adobe Acrobat PDF (517 KB) (opens in a new window)
Bruce Forbes - Submission on Proposed Gas Network Pricing Principles and Guidelines - 11 March 2008 Adobe Acrobat PDF (29 KB) (opens in a new window)
Infratil - Cross Submission on matters raised at the Commission's Conference on the Natural Gas Distribution Services Draft Decision held 18-21 February 2008 - 17 March 2008 Adobe Acrobat PDF (130 KB) (opens in a new window)
Nova Gas - Cross Submission on Powerco and Vector Draft Pricing Decisions - 14 March 2008 Adobe Acrobat PDF (1.1 MB) (opens in a new window)
Powerco - Cross Submission on Commerce Commission's Draft Authorisation Decision Paper - 18 March 2008 Adobe Acrobat PDF (631 KB) (opens in a new window)
Powerco - Opex-Capex Cross Submission - Procurement Policy - Public Version Adobe Acrobat PDF (66 KB) (opens in a new window)
Powerco - Answers to Questions - Direct Opex and Capex - 11 April 2008 Adobe Acrobat PDF (466 KB) (opens in a new window)
Powerco - Opex -Capex Cross Submission - Powerco Bell Block Bypass NPAM - 7 November 2007 Adobe Acrobat PDF (66 KB) (opens in a new window)
Powerco - Opex Capex Cross Submission - List of Delegated Authorities Adobe Acrobat PDF (77 KB) (opens in a new window)
Powerco - Opex-Capex Cross Submission - Dowse to Petone Interchange Project - Public Version - 13 September 2007 Adobe Acrobat PDF (71 KB) (opens in a new window)
Powerco - Opex-Capex Cross Submission - Forecast GMS Installation Movement Adobe Acrobat PDF (12 KB) (opens in a new window)
Powerco - Opex-Capex Cross Submission - Powerco Meeting File Note Adobe Acrobat PDF (74 KB) (opens in a new window)
Powerco - Control of Natural Gas Distribution Services - Cross Submissions on Draft Decision Conference - 4 April 2008 Adobe Acrobat PDF (122 KB) (opens in a new window)
Powerco - Cross Submission on Draft Authorisation Decision Paper - Tax Issues - 20 March 2008 Adobe Acrobat PDF (134 KB) (opens in a new window)
Powerco - Sinclair Knight Merz - Gas Pipeline Asset Valuation: Rocky Ground Multiplier Review - 14 March 2008 Adobe Acrobat PDF (120 KB) (opens in a new window)
Powerco - Wilson Cook - Powerco Limited: Gas Network Fixed Asset Valuation at 1 July 2002: Post Conference Revisions - 17 March 2008 Adobe Acrobat PDF (28 KB) (opens in a new window)
Vector - Cross Submission on the Gas Final Authorisation Draft Decisions - 18 March 2008 Adobe Acrobat PDF (575 KB) (opens in a new window)
Appendix 1 - Vector - Cross Submission on the Commission's Draft Decisions on Supply of Gas Distribution Services - 16 March 2008 Adobe Acrobat PDF (165 KB) (opens in a new window)
Appendix 2a - To Vector - Letter of Instruction - Notice under s70E Commerce Act 1986 - 3 October 2006 Adobe Acrobat PDF (34 KB) (opens in a new window)
Appendix 2b - To Vector - Notice Pursuant to s70E of the Commerce Act 1986 - 3 October 2006 Adobe Acrobat PDF (1 MB) (opens in a new window)
Appendix 2c - To Vector - Letter of Instruction - Notice under s70E of the Commerce Act 1986 - 15 February 2007 Adobe Acrobat PDF (132 KB) (opens in a new window)
Appendix 2d - To Vector - Notice Pursuant to s70E of the Comemrce Act 1986 - 15 February 2007 Adobe Acrobat PDF (568 KB) (opens in a new window)
Appendix 3 - Vector - MGF Webb Memorandum - 18 March 2008 Adobe Acrobat PDF (181 KB) (opens in a new window)
Appendix 4 - Vector - PWC Report - Cross Submission on Regulatory Tax Issues on Draft Decisions - Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco and Vector - 18 March 2008 Adobe Acrobat PDF (119 KB) (opens in a new window)
Appendix 5 - NZIER Memorandum - Commerce Commission's Queries Regarding Stand Alone Costs for Vector Auckland Gas - 11 March 2008 Adobe Acrobat PDF (57 KB) (opens in a new window)
Appendix 8 - NZIER Memorandum - Commerce Commission's Queries Regarding Capital Goods Price Index Forecast - 13 March 2008 Adobe Acrobat PDF (183 KB) (opens in a new window)
MEUG - Cross Submission on Gas Draft Decisions Conference Adobe Acrobat PDF (25 KB) (opens in a new window)
Orion - Cross Submission on Gas Draft Decisions Conference Adobe Acrobat PDF (1.2 MB) (opens in a new window)
Vector- Castalia Cross Submission on Gas Draft Decisions Conference Adobe Acrobat PDF (72 KB) (opens in a new window)

Draft Decisions Conference - Process

(4 documents)

Authorisation for the Control of Supply of Natural Gas Distribution Services by Vector Ltd and Powerco Ltd - Conference On Draft Decisions - Agenda - February 2008 Adobe Acrobat PDF (71 KB) (opens in a new window)
The Commission wishes to explore the following key topics with participating parties at the Conference:
- Asset Valuation.
- Form of Control.
- Operating and Capital Expenditure.
- Regulated Rate of Return.
- Regulatory Tax.
Authorisation for the Control of Supply of Natural Gas Distribution Services by VectorLtd and Powerco Ltd - Conference on Draft Decisions - 17 January 2008 Adobe Acrobat PDF (28 KB) (opens in a new window)
The Commission released its Draft Decisions Paper on 4 October 2007. Submissions were due on 12 November, subsequently extended to 30 November 2007. A further Draft Decisions Paper on Pricing Principles, Guidelines and Reporting Requirements for the Authorisation was released on 7 December 2007. Submissions on this paper are due on 25 January 2008. These papers together are referred to as the ‘Draft Decisions’.
Authorisation for the Control of Supply of Natural Gas Distribution Services by Vector Ltd and Powerco Ltd - Conferece on Draft Decisions - Further Details on Key Topics - February 2008 Adobe Acrobat PDF (79 KB) (opens in a new window)
The Commission has previously advised that it wishes to explore the following key topics with participating parties at the Conference:
- Asset Valuation.
- Form of Control.
- Operating and Capital Expenditure.
- Regulated Rate of Return.
- Regulatory Tax.
Authorisation for the Control of Supply of Natural Gas Distribution Services by Vector Ltd and Powerco Ltd - Conferece on Draft Decisions - Key Topics and Draft Agenda - February 2008 Adobe Acrobat PDF (77 KB) (opens in a new window)
The Commission wishes to explore the following key topics with participating parties at the Conference:
- Asset Valuation.
- Form of Control.
- Operating and Capital Expenditure.
- Regulated Rate of Return.
- Regulatory Tax.

Draft Decisions Conference - Transcripts

(4 documents)

Natural Gas Distribution Services by Vector Ltd and Powerco Ltd - Conference on Draft Decisions Day 1 - 18 February 2008 Adobe Acrobat PDF (259 KB) (opens in a new window)
CHAIR: I'd like to convene the meeting please. I'd like to start off by saying good afternoon and welcome to everyone that has come today to the Commerce Commission's conference on the Draft Decisions paper on the proposed authorisation for the supply of national gas distribution services by Vector and Powerco. I'm Paula Rebstock, Chair of the Commerce Commission and I'll be chairing this conference.
Natural Gas Distribution Services by Vector Ltd and Powerco Ltd - Conference on Draft Decisions Day 2 - 19 February 2008 Adobe Acrobat PDF (402 KB) (opens in a new window)
CHAIR: All right good morning everyone, I'd like to welcome you today to the second session of the Commerce Commission's conference on the authorisation for the control of supply of natural gas distribution services by Vector and Powerco. As we start the session today we will again be talking to Vector and their advisors at the beginning of the day, and the first session will be on regulatory tax and PwC is here on behalf of Vector and I would like to welcome you both and John if you could please introduce yourselves for the record and begin with your short presentation when you're ready, thank you
Natural Gas Distribution Services by Vector Ltd and Powerco Ltd - Conference on Draft Decisions Day 3 - 20 February 2008 Adobe Acrobat PDF (616 KB) (opens in a new window)
CHAIR: All right, good morning everyone, I'd like to welcome you to the third day of the Commission's conference on the authorisation for the control of supply of the natural gas distribution services of Powerco and Vector. Today we have Powerco with us to extend through today and into tomorrow, so I'd like to welcome their team. Before we get started I just thought it might be helpful to summarise some of the issues that have come up to date in the proceedings and some of the Commission's thinking we'd like to get feedback on.
Natural Gas Distribution Services by Vector Ltd and Powerco Ltd - Conference on Draft Decisions Day 4 - 21 February 2008 Adobe Acrobat PDF (470 KB) (opens in a new window)
CHAIR: This session will be on the form of control and I'll ask Dr Lawrence please to lead the discussion on this.
MR BARBOUR: Madam Chair is there opportunity for a small opening statement?
CHAIR: Sure, I'm sorry, I do apologise.

Submissions on Draft Decisions Paper

(50 documents)

Auckland Energy Consumer Trust - Draft Decision on Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco and Vector - Submission Cover Letter - 30 November 2007 Adobe Acrobat PDF (28 KB) (opens in a new window)
Babcock & Brown Infrastructure - Submission - Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd - Response - 30 November 2007 Adobe Acrobat PDF (2 MB) (opens in a new window)
BARNZ - BARNZ Profile - September 2007 Adobe Acrobat PDF (21 KB) (opens in a new window)
Bruce Forbes - Submission on the Commerce Commission's Draft Decision Paper on the Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd - Likely Effects of the Proposed Controls on Gas Distribution Net Adobe Acrobat PDF (34 KB) (opens in a new window)
Electricity Invercargill - Submission on the Vector and Powerco Gas Authorisation Draft Decisions Paper - Support Letter - 30 November 2007 Adobe Acrobat PDF (30 KB) (opens in a new window)
Otago Net - Submission on the Vector and Powerco Gas Authorisation Draft Decisions Paper - 30 November 2007 Adobe Acrobat PDF (29 KB) (opens in a new window)
The Power Company - Submission on the Vector and Powerco Gas Authorisation Draft Decisions Paper - 30 November 2007 Adobe Acrobat PDF (32 KB) (opens in a new window)
Infratil - LECG Report - Review of the Commerce Commission's Draft Gas Authorisation from the perspective of infrastructure investors - 30 November 2007 Adobe Acrobat PDF (441 KB) (opens in a new window)
Infratil - Submission on the Commission's Draft Decisions Paper dated 4 October 2007 "Authorisation fro the Control of Supply of Natural Gas Distrbution Services by Powerco Ltd and Vector Ltd" - 3 December 2007 Adobe Acrobat PDF (67 KB) (opens in a new window)
MEUG - Ireland, Wallace & Associates - Draft Guidelines: The Commerce Commission's Approach to Estimating the Cost of Capital ("Draft Guidelines") - 2 December 2005 Adobe Acrobat PDF (834 KB) (opens in a new window)
MEUG - Cameron Partners Report - Commission's Draft Guidelines for Estimating the Cost of Capital - 2 December 2005 Adobe Acrobat PDF (352 KB) (opens in a new window)
Nova Gas - Submission in Respect of Powerco and Vector Price Control Draft Decisions Paper - 12 December 2007 Adobe Acrobat PDF (1.3 MB) (opens in a new window)
Orion - Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd: Draft Decisions Paper - Cover Letter - 30 November 2007 Adobe Acrobat PDF (42 KB) (opens in a new window)
Powerco - Submission on Draft Decisions Paper - 30 November 2007 Adobe Acrobat PDF (551 KB) (opens in a new window)
Powerco - Allen Consulting Report - Control of Natural Gas Distribution Services - Draft Decision Paper Adobe Acrobat PDF (292 KB) (opens in a new window)
Powerco - Case Associates Report - Draft Decisions on Paper on Supply of Natural Gas Distribution Services - 29 November 2007 Adobe Acrobat PDF (280 KB) (opens in a new window)
Powerco - Castalia Report - Powerco Volume Forecasts - 29 November 2007 Adobe Acrobat PDF (208 KB) (opens in a new window)
Powerco - Notes on the FY2007 / 08 Network Budget and Ten Year Forecasts - Gas Networks - 30 November 2007 Adobe Acrobat PDF (2.9 MB) (opens in a new window)
Powerco - Supplementary Submission - Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd Draft Decisions Paper Adobe Acrobat PDF (47 KB) (opens in a new window)
Appendix A - GNS Report - Geological ground conditions along the Powerco Limited gas pipeline network - November 2007 Adobe Acrobat PDF (3 MB) (opens in a new window)
Appendix B - Powerco - Sinclair Knight Merz Letter - Gas Pipeline Asset Valuation: Rocky Ground Multiplier Review - 14 December 2007 Adobe Acrobat PDF (46 KB) (opens in a new window)
Powerco - Supplementary Submission on Commerce Commission's Draft Authorisation Decision Paper in Relation to Opex and Capex - 31 January 2008 Adobe Acrobat PDF (1.9 MB) (opens in a new window)
Appendix C - Powerco - 2005 Gas ODV Valuation: Overview of Rocky Ground Multipliers - 14 December 2007 Adobe Acrobat PDF (1.5 MB) (opens in a new window)
Powerco - 2005 Gas ODV Valuation - Reassessment of Rocky Ground Mutlipliers - 14 December 2007 Adobe Acrobat PDF (414 KB) (opens in a new window)
Appendix D - Attachment B3 Adobe Acrobat PDF (39 KB) (opens in a new window)
Appendix D - Attachment B4 Adobe Acrobat PDF (38 KB) (opens in a new window)
Appendix E - Powerco - Wilson Cook & Co Report - Gas Network Fixed Asset Valuation at 1 July 2002 and Related Regulatory Issues - 14 December 2007 Adobe Acrobat PDF (132 KB) (opens in a new window)
Appendix F - Powerco - KPMG Report - Procedures performed in respect of gas assets as at 30 June 2002 - December 2007 Adobe Acrobat PDF (294 KB) (opens in a new window)
Appendix G - Prof. David K Round Report - Sound Regulatory Practice: A Commentary on the Implications of the Commerce Commission's Draft Authorisation Report on Prices to be Charged by Powerco for Natural Gas Distribution - 10 December 2007 Adobe Acrobat PDF (162 KB) (opens in a new window)
Appendix H - Allen Consulting - Commerce Commission's Treatment of Taxation in the Draft Decisions Document - 14 December 2007 Adobe Acrobat PDF (69 KB) (opens in a new window)
Tenix - Submission on the Gas Authorisation Draft Decisions Paper - 30 November 2007 Adobe Acrobat PDF (49 KB) (opens in a new window)
Vector - Gas Final Authorisation - Response to Draft Decisions Paper - 17 March 2008 Adobe Acrobat PDF (959 KB) (opens in a new window)
Vector Appendix 1 - MGF Webb Memo - Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd Draft Decisions - 29 November 2007 Adobe Acrobat PDF (161 KB) (opens in a new window)
Vector - Appendix 2 - Comments on Commission's Draft Decisions Paper on Supply of Gas Distribution Services - 29 November 2007 Adobe Acrobat PDF (572 KB) (opens in a new window)
Vector - Appendix 3 - PWC Report - Draft Decisions Paper, Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd - Taxation Issues - 30 November 2007 Adobe Acrobat PDF (410 KB) (opens in a new window)
Vector - Appendix 5 - NZIER Report - Capital Goods Price Index Forecast - 15 November 2007 Adobe Acrobat PDF (136 KB) (opens in a new window)
Vector - Appendix 6 - LECG Report - Estimate of WACC in the Draft Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd - 26 November 2007 Adobe Acrobat PDF (442 KB) (opens in a new window)
Vector - Appendix 7 - NZIER Report - Auckland Gas - An Estimate of its Operating Costs on a Stand Alone Basis - 7 December 2007 Adobe Acrobat PDF (125 KB) (opens in a new window)
Vector - Gas Final Authorisation - Valuation Related Issues - 14 December 2007 Adobe Acrobat PDF (365 KB) (opens in a new window)
Vector Appendix 1 - Memo to GNS - Ground Classifications - 12 November 2007 Adobe Acrobat PDF (82 KB) (opens in a new window)
Vector - Gas Final Authorisation - Response to Questions - 12 December 2007 Adobe Acrobat PDF (371 KB) (opens in a new window)
AECT - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (414 KB) (opens in a new window)
BARNZ - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (1.2 MB) (opens in a new window)
ENA - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (52 KB) (opens in a new window)
MEUG - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (35 KB) (opens in a new window)
Mighty River - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (88 KB) (opens in a new window)
Orion - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (182 KB) (opens in a new window)
PWC - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (103 KB) (opens in a new window)
Unison - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (392 KB) (opens in a new window)
WEL - Submission on Vector/Powerco Draft Decisions Paper Adobe Acrobat PDF (35 KB) (opens in a new window)

Draft Decisions Paper - Consultants Reports

(15 documents)

Gas Control Model 2007 Adobe Acrobat PDF (264 KB) (opens in a new window)
Martin Lally - The Weighted Average Cost of Capital for Gas Pipeline Businesses - 3 September 2007 Adobe Acrobat PDF (549 KB) (opens in a new window)
Martin Lally - International Comparison of Regulatory Costs of Capital for Gas Pipeline Businesses - 23 September 2007 Adobe Acrobat PDF (171 KB) (opens in a new window)
Meyrick Report - Vector and Powerco Indirect Cost Review - 5 September 2007 Adobe Acrobat PDF (280 KB) (opens in a new window)
Meyrick - Vector and Powerco Indirect Cost Review - Annex 1 Adobe Acrobat PDF (847 KB) (opens in a new window)
Merick - Vector and Powerco Indirect Cost Review - Annex 2 Microsoft Excel Spreadsheet (811 KB) (opens in a new window)
Merick - Vector and Powerco Indirect Cost Review - Annex 3 Microsoft Excel Spreadsheet (149 KB) (opens in a new window)
Meyrick Report - Indexation Issues for Gas Control - 5 July 2007 Adobe Acrobat PDF (143 KB) (opens in a new window)
Meyrick - Gas Distribution Pricing Principles - 6 November 2007 Adobe Acrobat PDF (230 KB) (opens in a new window)
The Commerce Commission has asked Meyrick and Associates to provide a scoping paper on pricing principles approaches that may be suitable for use in the Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd. The objectives of the scoping paper are to:
Parsons Brinckerhoff - Gas Control - Estimate of the Revaluation Gain between 30 June 2003 and 30 June 2005 included in the Valuation of Powerco's Gas Distribution Assets - 23 July 2007 Adobe Acrobat PDF (87 KB) (opens in a new window)
Parsons Brinckerhoff - Gas Control - Estimate of the Revaluation Gain between 30 June 2003 and 30 June 2005 included in the valuation of Vector's Gas Distribution Assets - 23 July 2007
Adobe Acrobat PDF (66 KB) (opens in a new window)
Parsons Brinckerhoff - Gas Control - Review of the Valuation of the Opening Regulatory Asset Base of Vector Limited - 23 July 2007 Adobe Acrobat PDF (254 KB) (opens in a new window)
Parsons Brinckerhoff - Gas Control - Review of the Valuation of the Opening Regulatory Asset Base of Powerco Ltd - 23 July 2007 Adobe Acrobat PDF (166 KB) (opens in a new window)
Parsons Brinckerhoff - Gas Control - Vector Ltd - Review of Capital and Operating Expenses - 16 August 2007 Adobe Acrobat PDF (743 KB) (opens in a new window)
Parsons Brinckerhoff - Gas Control - Powerco Ltd - Review of Capital and Operating Expenditures - 16 August 2007 Adobe Acrobat PDF (1.1 MB) (opens in a new window)

Draft Decisions Paper, 30 October 2007

(2 documents)

Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd - Draft Decisions Paper - 4 October 2007 Adobe Acrobat PDF (1.7 MB) (opens in a new window)
This paper sets out the Commerce Commission’s (Commission) Draft Decisions for the Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd (Powerco) and Vector Ltd (Vector) (the Authorisation) made pursuant to s 70 of the Commerce Act 1986 (the Act).
Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Ltd and Vector Ltd - Draft Decisions Paper - Pricing Principles, Guidelines, and Reporting Requirements - 7 December 2007 Adobe Acrobat PDF (217 KB) (opens in a new window)