Amendments to the WACC percentile

The Commission is further considering the comments made by the High Court relating to the selection of the 75^th percentile of the cost of capital range.

In the High Court’s decision on the merits appeals of the input methodologies, the Court commented on the Commission's selection of the 75th percentile of the cost of capital range for price-quality regulation of electricity lines and gas pipeline businesses (see Wellington International Airport Ltd and others v Commerce Commission [2013] NZHC 3289). The Commission has also received correspondence from MEUG and BARNZ inquiring as to the Commission's proposed response.

Given the uncertainty that now exists in relation to this significant aspect of the cost of capital, the Commission appreciates that there would be some benefit in considering this issue further and reaching a decision prior to the November 2014 setting of the DPP for electricity distribution businesses and the Transpower IPP.

For information on the input methodologies review, see the input methodologies review page. Note that consideration of the WACC percentile for airport services will now be made as part of the review of input methodologies

Documents

Decision to consider the WACC percentile for airport services as part of the IM review

10/06/2015 (1 documents)

[2015] NZCC 16 Airport Services (Weighted Average Cost of Capital percentile) Input Methodologies Amendments Determination – 10 June 2015 PDF (254 KB): Published on 10 June 2015

Cross-submissions on the WACC percentile for information disclosure for electricity lines and gas pipelines

25/11/2014 (1 documents)

Transpower – Cross-submission on WACC Percentile for ID for electricity and gas – 21 November 2014 PDF (368 KB): Published on 25 November 2014

Ingo Vogelsang review of Oxera

11/07/2014 (1 documents)

Ingo Vogelsang – Review of Oxera – 10 July 2014 PDF (474 KB): Published on 11 July 2014

Invitation to have your say on whether the Commission should review or amend the cost of capital input methodologies

20/02/2014 (1 documents)

Invitation to have your say on whether the Commerce Commission should review or amend the cost of capital input methodologies 20 February 2014 PDF (483 KB): Published on 20 February 2014

Amendments to the WACC percentile

For information on the input methodologies review, see the input methodologies review page. Note that consideration of the WACC percentile for airport services will now be made as part of the review of input methodologies

Documents

Decision to consider the WACC percentile for airport services as part of the IM review

Further work on the cost of capital input methodologies for airports

Final decision on the WACC percentile for information disclosure for electricity lines and gas pipelines

Cross-submissions on the WACC percentile for information disclosure for electricity lines and gas pipelines

Submissions on the WACC percentile for information disclosure for electricity lines and gas pipelines

Final decision on the WACC percentile for price-quality regulation

Revised draft decision on the WACC percentile for information disclosure for electricity lines and gas pipelines

Submissions on further evidence

Final decision on the WACC determination date

Invitation for submissions on further evidence

Cross-submissions on draft decision

Frontier’s loss function simulation model

Submissions on draft decision

Submissions on our proposal to amend the WACC determination date

Draft decision on the WACC determination date

Draft decision

Ingo Vogelsang review of Oxera

Expert reports on the WACC Percentile

Submissions on process update paper

Request for extensions for submissions

Process update paper

Submissions on invitations to have your say on whether the Commission should review or amend the cost of capital input methodologies

Invitation to have your say on whether the Commission should review or amend the cost of capital input methodologies

Requests for consideration of WACC range

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